Super League Gaming (SLGG) Status Update summary

Revenue growth and business model evolution

• Achieved $25 million in revenue last year, with strong top-line growth and a shift toward recurring, persistent brand partnerships.

• Revenue streams include immersive experience creation, on-platform media products, strategic consulting, analytics, and content production.

• Focus on productization allows for reusable 3D experience components, improving margins and reducing development time.

• Average deal size and aggregate brand spend are increasing, with high repeat business and several brands spending over $1 million annually.

• Recurring revenue from persistent brand worlds is smoothing seasonality and improving revenue visibility.

Market positioning and customer base

• Platforms like Roblox, Fortnite, and Minecraft reach a diverse, under-25 audience, with 130 million monthly unique players on Roblox alone.

• Experiences are designed to be positive, inclusive, and compliant with privacy regulations, appealing to both brands and users.

• Brands are increasingly seeking persistent, omnichannel strategies across multiple platforms.

• Most business is sourced through agencies, but larger, experiential programs involve direct brand engagement.

Financial performance and cost management

• Q1 revenue grew 26% year-over-year, with a 22% reduction in costs and a 27% improvement in net loss.

• Operating costs were reduced through layoffs, infrastructure cuts, and divestment of non-core assets.

• Leaner organization is testing capacity limits, with top salespeople increasing productivity and a focus on high-margin, strategic deals.

• Path to profitability expected by Q4, with break-even targeted and improved revenue predictability from recurring deals.