Super League Gaming (SLGG) Q2 Earnings Miss, Revenues Top
Super League Gaming, Inc. SLGG reported mixed second-quarter fiscal 2023 results, with earnings missing the Zacks Consensus Estimate and revenues beating the same. The top and the bottom line increased on a year-over-year basis. New strategic partnerships and development studio acquisitions primarily backed the upside. Going forward, the company emphasized accretive acquisitions to boost its in-house publishing capacity and improve in publishing margin profile.
Earnings & Revenues Details
During the fiscal second quarter, the company reported a loss per share of 17 cents, missing the Zacks Consensus Estimate of 12 cents. In the prior-year quarter, SLGG reported a loss of 24 cents per share.
Quarterly revenues of $5.1 million beat the Zacks Consensus Estimate of $5 million by 0.2%. Moreover, the top line increased 18% on a year-over-year basis. The upside was backed by strength in publishing and content studio sales.
Super League Gaming, Inc. Price, Consensus and EPS Surprise
Super League Gaming, Inc. price-consensus-eps-surprise-chart | Super League Gaming, Inc. Quote
During the quarter, Publishing and content studio sales revenue increased 258% year over year to $1 million. The increase was driven primarily by a rise in game development and immersive experience-related revenues.
Media and advertising revenue increased 3% year over year to $3.6 million, while direct-to-consumer revenues fell 18% year over year to $0.4 million.
Operating Highlights
During the fiscal second quarter, Selling, marketing and advertising expenses came in at $2.9 million compared with $3 million reported in the prior-year quarter.
Gross profit during the quarter came in at $2.1 million compared with $1.8 million reported in the prior year's quarter. Gross profit (as a percent of revenue) was 42% in the second quarter of fiscal 2023 compared with 43% reported in the prior year.
Net operating loss in the fiscal second quarter came in at $8.2 million compared with $8.7 million reported in the prior-year quarter.
Balance Sheet
Cash and cash equivalents, as of Jun 30, 2023, totaled $2.6 million compared with $2.5 million on Dec 31, 2022. The company reported no debt as of Jun 30, 2023.
2023 Outlook
For third-quarter fiscal 2023, the company expects revenues to be approximately $6 million. It is optimistic on account of new strategic partners like LandVault and the acquisition of Melon (a ground-breaking development studio).
Zacks Rank
Super League Gaming currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
Recent Consumer Discretionary Releases
American Public Education, Inc. APEI reported better-than-expected second-quarter 2023 results, with earnings and revenues surpassing the Zacks Consensus Estimate. However, both metrics declined on a year-over-year basis.
The company’s results benefited from the solid contributions of the American Public University System and Hondros College of Nursing segment as well as Graduate School USA revenues included in Corporate and Other and cost-saving initiatives. However, the dismal performance of the Rasmussen University segment ailed the other segments’ tailwind to some extent.
Hasbro, Inc. HAS reported mixed second-quarter fiscal 2023 results, with earnings missing the Zacks Consensus Estimate and revenues beating the same. The metrics declined on a year-over-year basis. The dismal performances of Franchise Brands, Partner Brands and Portfolio Brands affected the top line.
The company announced the sale of its eOne Film and TV business to Lionsgate for approximately $500 million. The company anticipates the deal to strengthen its financial flexibility and retire its floating rate debt (by approximately $400 million). HAS expects to close the deal by 2023 end.
MGM Resorts International MGM reported impressive second-quarter 2023 results, with earnings and revenues surpassing the Zacks Consensus Estimate. Both metrics surpassed the consensus estimate for the third consecutive quarter. Moreover, the top and the bottom line increased on a year-over-year basis.
MGM’s upside was primarily driven by growth in business volume and travel activity, primarily at MGM China and Las Vegas Strip Resorts.
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