Financial PerformanceThe company reported 2H24 revenue of $45.9M, which was below the estimate of $49.0M, and a gross margin of 1.4%, lower than the expected 4.7% due to decreased higher-margin sponsorship, advertising, and IP licensing revenue from the esports team segment.
Market ConditionsDue to softness in the esports/gaming industry, forward growth estimates are tempered, with a lower 1H25E revenue forecast.
Revenue ChallengesDecreased higher-margin sponsorship, advertising, and IP licensing revenue from the esports team segment contributed to a lower than expected gross margin.