Motorsport Games (NASDAQ:MSGM) Posts Quarterly Earnings Results

Motorsport Games (NASDAQ:MSGM) posted its earnings results on Wednesday. The company reported $0.07 earnings per share (EPS) for the quarter, Zacks reports. Motorsport Games had a return on equity of 129.70% and a net margin of 61.31%.

Here are the key takeaways from Motorsport Games’ conference call:

• Revenue jumped 129% year over year to $4.0 million, driven mainly by stronger sales of Le Mans Ultimate and higher RaceControl subscription revenue. Management also said the company generated positive operating income and improved adjusted EBITDA.
• Le Mans Ultimate continues to gain traction, with a new all-time Steam peak of more than 8,800 concurrent players after version 1.3 launched. The company emphasized that average concurrent users are also rising sharply, suggesting players are sticking with the game.
• RaceControl is becoming a meaningful recurring revenue stream, with monthly recurring revenue now above $0.2 million and Q1 subscription revenue of $0.8 million, or 19% of total company revenue. Management described it as a high-margin platform business with room for further expansion.
• The company completed a major corporate restructuring, including repurchasing 904,395 Class A shares from Driven Lifestyle Group and retiring all Class B super-voting shares. Shareholders also approved an expansion of the employee equity plan, and management said these moves improve governance and flexibility.
• Motorsport Games said development of Le Mans Ultimate for PlayStation and Xbox is progressing, but exact timing is still uncertain and more details are expected in 2027. The company is also preparing a new long-term project that will build on its existing simulation technology, live-service platform, and community.

Motorsport Games Trading Down 7.1%

Motorsport Games stock traded down $0.38 during mid-day trading on Wednesday, hitting $4.94. The company had a trading volume of 257,734 shares, compared to its average volume of 51,927. The stock’s 50 day moving average price is $4.21 and its two-hundred day moving average price is $3.54. Motorsport Games has a 12 month low of $2.11 and a 12 month high of $5.56. The company has a market capitalization of $28.55 million, a PE ratio of 3.43 and a beta of 1.73.

Wall Street Analyst Weigh In

Separately, Wall Street Zen upgraded Motorsport Games from a “buy” rating to a “strong-buy” rating in a research report on Saturday, March 14th. One research analyst has rated the stock with a Hold rating, According to MarketBeat.com, Motorsport Games currently has an average rating of “Hold”.

Insider Buying and Selling

In other Motorsport Games news, major shareholder Mike Zoi sold 904,395 shares of the business’s stock in a transaction on Thursday, April 23rd. The stock was sold at an average price of $4.11, for a total value of $3,717,063.45. Following the sale, the insider directly owned 254,453 shares of the company’s stock, valued at approximately $1,045,801.83. The trade was a 78.04% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Insiders sold 1,225,932 shares of company stock valued at $5,065,568 over the last 90 days. Insiders own 4.59% of the company’s stock.

Institutional Investors Weigh In On Motorsport Games

Several hedge funds have recently added to or reduced their stakes in MSGM. Dimensional Fund Advisors LP bought a new stake in Motorsport Games in the third quarter worth $46,000. State Street Corp bought a new stake in Motorsport Games in the fourth quarter worth $39,000. HRT Financial LP purchased a new position in shares of Motorsport Games in the fourth quarter worth $37,000. Finally, XTX Topco Ltd purchased a new position in shares of Motorsport Games in the fourth quarter worth $34,000. 1.66% of the stock is owned by institutional investors.

Motorsport Games Company Profile

Motorsport Games, Inc is a publicly traded developer and publisher of interactive motorsport entertainment, headquartered in Miami, Florida. The company specializes in creating officially licensed racing simulation titles and managing associated esports competitions. By focusing exclusively on the motorsport genre, Motorsport Games aims to deliver authentic digital experiences that mirror the rules, tracks and vehicles of real-world racing series.

The company’s core activities include the development of video games under licenses from major sanctioning bodies such as NASCAR, the Fédération Internationale de l’Automobile (FIA) and International Motor Sports Association (IMSA).