Super League (SLE) Reports Q4 Business Update, Sales Rise Y/Y
Super League Enterprise, Inc. SLE provided an update on its business for the fourth quarter of 2023. The company reported robust progress, marked by increased momentum, enhanced efficiency in operations and the attainment of the company's largest-ever contract. Following the announcement, shares of the company moved up 4.8% during trading hours on Jan 16.
Preliminary Revenue Results
In the fourth quarter of 2023, the company disclosed total sales of about $9.4 million, up 32% year over year. Total revenues during the year came in at approximately $25 million.
Super League strengthened its leadership in 2023 as a provider of immersive 3D experiences on popular platforms such as Roblox, Minecraft and Fortnite, attracting over half a billion users. Positioned as a guide, Super League led global brands to redirect their advertising efforts toward the transformative field of 3D engagement.
Other Updates
Throughout 2023, the Super League achieved notable milestones, catering to nearly 100 brands and IP owners. The company excelled in creating 11 customized builds, boasting peak engagement times of up to 30.5 minutes. Also, 15 tailored integrations into popular experiences on platforms like Roblox, Minecraft and Fortnite resulted in more than 330 million visits, with peak engagement times of 25 minutes. Super League executed more than 180 media campaigns on Roblox and Minecraft, ranging in size from mid-5 to 7 figures.
Complementing the endeavors, the company supported campaigns with over 40 media initiatives across various digital channels, including OTT video, mobile, social media and influencer platforms, with campaign sizes ranging from mid-5 to 7 figures. The company's impact extended to video content production, generating 340 pieces that garnered several million views across platforms like TikTok, YouTube and Snap. Impressively, there were 81 million Try-ons of Branded Avatar Items, highlighting the company's effectiveness in delivering engaging and personalized experiences for brands across a diverse range of digital landscapes.
Road Ahead
In 2024, Super League focuses on achieving profitability by shifting from short-term, campaign-centric revenue models to supporting brands in their sustained, long-term strategies through the use of their 3D Web operating system. The company is committed to scaling its business to provide both short-term profitability and long-term value for shareholders.
In addition, Super League's evolving capabilities position it to transition from a short-term campaign-focused advertising strategy to larger contract sizes, exemplified by a record-breaking $4.0 million agreement signed in third-quarter 2023. The company's average deal sizes are increasing, resulting in higher repeat percentages and more recurring, forecastable revenues. Notable brands contributing to this trend include Visa, Disney, Mattel, Kraft Heinz, Hershey's, Wal-Mart, Chipotle, Universal and Publicis.
Super League outlined a strategic roadmap encompassing four key stages in a brand's entry into new marketing channels, with the ultimate goal of achieving scalability. These stages include introducing brands to 3D engagement, establishing itself as the preferred 3D platform for brands' ongoing campaigns, guiding brands in creating enduring digital footprints and developing comprehensive omnichannel 3D strategies. The company aims to empower brands with a versatile framework to navigate the dynamic landscape of 3D marketing.
Image Source: Zacks Investment Research
Shares of the company have gained 14.3% in the past three months compared with the industry’s 11.8% growth.
Zacks Rank & Other Key Picks
Super League currently has a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks in the Zacks Consumer Discretionary sector are as follows:
Virco Mfg. Corporation VIRC sports a Zacks Rank #1. VIRC has a trailing four-quarter earnings surprise of 188.6% on average. VIRC’s shares have surged 142.3% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for VIRC’s 2024 sales and earnings per share (EPS) indicates a rise of 15.7% and 32.4%, respectively, from the year-ago period’s levels.
H World Group Limited HTHT currently sports a Zacks Rank of 1. It has a trailing four-quarter earnings surprise of 94.5%, on average. The stock has declined 28.1% in the past year.
The Zacks Consensus Estimate for HTHT’s 2024 sales and EPS indicates an improvement of 7.9% and 9.8%, respectively, from the year-ago period’s levels.
American Public Education, Inc. APEI sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 23.2% on average. Shares of APEI have declined 9.2% in the past year.
The Zacks Consensus Estimate for APEI’s 2024 sales and EPS indicates a rise of 2.5% and 115.8%, respectively, from the year-ago period’s levels.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Public Education, Inc. (APEI) : Free Stock Analysis Report
Super League Enterprise, Inc. (SLE) : Free Stock Analysis Report
H World Group Limited Sponsored ADR (HTHT) : Free Stock Analysis Report
Virco Manufacturing Corporation (VIRC) : Free Stock Analysis Report
