Motorsport Games, Inc. ( (MSGM) ) has released its Q4 earnings. Here is a breakdown of the information Motorsport Games, Inc. presented to its investors.
Motorsport Games Inc. is a developer and publisher of racing video games and esports competitions, known for its official motorsport racing series titles such as the 24 Hours of Le Mans and the FIA World Endurance Championship. The company recently reported its financial results for the fourth quarter and full year of 2024, highlighting significant improvements in revenue and a reduction in net loss compared to the previous year.
In 2024, Motorsport Games achieved revenues of $8.7 million, marking a 25.7% increase from the prior year, driven by the successful release of its new game, Le Mans Ultimate. The company also launched a new subscription service, RaceControl, which has been well-received by users. Despite these successes, the company reported a net loss of $3.0 million for the year, a substantial improvement from the $14.3 million loss in 2023.
The fourth quarter of 2024 saw revenues rise to $2.0 million, a 13% increase from the same period in 2023. However, the company experienced a net loss of $2.9 million for the quarter, primarily due to foreign currency losses and the absence of a one-time gain from the sale of its NASCAR License in the previous year. The company’s gross profit margin decreased slightly, reflecting increased costs.
Looking forward, Motorsport Games is focused on continuing to develop its product portfolio and explore strategic partnerships to enhance its financial position. The company acknowledges the need for additional funding to sustain operations and is actively seeking potential equity or debt financing options. Management remains optimistic about the potential for future growth and the expansion of its gaming and esports offerings.