Super League Gaming (SLGG) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was $4.1M, down 19% year-over-year, mainly due to ad market softness, Minehut asset sale, and $1.8M in deferred revenue from delayed advertiser launches.

• Net loss for Q2 2024 was $2.5M, a significant improvement from $6.8M in Q2 2023, reflecting cost reductions and lower noncash charges.

• Operating expenses decreased by 44% year-over-year, driven by cost optimization, a 15% reduction in headcount, and lower amortization.

• Launched scalable products SOUNDZ and Unlockables, and high-profile collaborations with brands like Visa, Google, Universal Pictures, and the IOC.

• Focus remains on immersive 3D experiences and redefining gaming as a media channel for global brands.

Financial highlights

• Q2 2024 revenue: $4.1M (down 19% YoY); six-month revenue: $8.3M (flat YoY); $1.8M in Q2 revenue deferred to Q3.

• Q2 2024 gross profit: $1.6M (40% margin); net loss: $2.5M ($0.60/share); operating expenses: $5.7M (down 44% YoY).

• Cash and cash equivalents at June 30, 2024: $1.7M, down from $7.6M at year-end 2023.

• Signature programs and retail activations, such as Skechers and Old Navy, contributed to top-line.

Outlook and guidance

• Management targets first profitable quarter in Q4 2024, with strong Q3 start and significant revenues expected in the second half of the year.

• Larger, longer-term deals and recurring revenue streams are expected to drive more predictable cash flow and shareholder value.

• Exploring capital raising options, including equity or debt, to support growth and potential acquisitions.

• Productization and cost discipline are expected to support revenue growth into 2025 and beyond.