East Side Games Group Reports Fourth Quarter 2023 Financial Results
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Revenue of
$20.6M in Q4 2023 and$87M for the full year -
A-EBITDA of
$4.5M in Q4 2023 and$12.8M for the full year - Q3 Strategic Realignment to optimize profitability and cashflow realized
The Company is pleased to announce a strong finish to 2023, marking the most profitable quarter in its history and the fifth consecutive quarter exceeding
This year witnessed further development of the new Matchkit framework, with the first game using the framework,
ESGG continues to experience growth due to the strength of its GameKit framework. They currently have seven LiveOps titles that generate 90% of their revenue, with no single title comprising more than 20%. This diverse position sets them apart from many mobile game companies, as most rely on a single title to drive 90% of their revenue.
"2023 was a difficult year for mobile games and for the tech industry as a whole. It was a year that saw more than two hundred thousand jobs eliminated, hundreds of companies failing, and billions in market cap evaporating. Despite these headwinds and through the resilience of our incredible leadership team, ESGG has been able to keep revenues relatively flat while incrementally increasing profitability and growing our cash reserves. No small feat, and something I am very proud of." said
- For the quarter ended
December 31st, 2023 , revenue was$20.6 million . - Q4 2023 Adjusted EBITDA was
$4.5 million , a margin of 22%. The 5th consecutive quarter over$2.5 million . -
Net Cash for the Company atDecember 31, 2023 was$5.2 million compared to$3.6 million at Q3 2023, a 44% increase. - The restructure announced in late
August 2023 will result in approximately$5.0 million in annualized operating expense reductions with minimal expected impact on overall revenues. The effect of the reductions completed in August were realized for the full quarter starting Q4 2023. - Daily Active Users in Q4 were 248K. Average Revenue per Daily Active User was
$0.91 . - On
November 14, 2023 , the Company announced a renewal of its Normal Course Issuer Bid ("NCIB") authorizing the Company to purchase 4,076,819 of its shares. ThroughDecember 31, 2023 , the Company purchased 951,979 shares at an average price of$0.82 . The company continues to buy back stock as restrictions allow.
Certain information provided in this news release is extracted from the consolidated financial statements (the "Financial Statements") and Management's Discussion & Analysis ("MD&A") of the Company for the year ended
The Company will hold a conference call to discuss its performance with the investment community at
https://eastsidegamesgroup.com/investors/financial-information/.
Webcast URL: https://onlinexperiences.com/Launch/QReg/ShowUUID=45B421E8-6344-4875-A894-C12D436717FC&LangLocaleID=1033
Toll Free Dial-In Number: +1 (800) 717-1738
Local Dial-In Number: +1 (289) 514-5100
Conference ID: 62568
A replay will be available by dialing +1 (888) 660-6264 or +1 (289) 819-1325 and entering passcode 62568 #.
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Certain statements in this release are forward-looking statements, which reflect the expectations of management regarding the proposed transactions described herein. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. These forward-looking statements reflect management's current views and are based on certain expectations, estimates and assumptions which may prove to be incorrect. A number of risks and uncertainties could cause our actual results to differ materially from those expressed or implied by the forward-looking statements, including factors beyond the Company's control. These forward-looking statements are made as of the date of this news release.
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