Enthusiast Gaming Records Net Loss of $56.6M USD for FY 2022

Credit: Enthusiast Gaming

Enthusiast Gaming announced financial results for FY 2022 and Q4 2022 this week, and while the company saw revenue growth during the fiscal year it also recorded a bigger net loss than in FY 2021. 

The company said that FY 2022 generated:

• Revenue of $202.8M CAD ($149.5M USD), an 21% increase from FY 2021 revenue of $167.4M ($123.4M USD).

• Gross profit of $63.5M CAD ($63.5M USD), a 68% increase from $37.8M CAD ($27.8M USD) for 2021.

• Direct sales of $37.4M CAD ($27.5M USD), a 69% increase from $22.2M CAD ($16.3M USD) in 2021 (these numbers were included in revenue); 

• Subscription revenue of $14.5M CAD ($10.6M USD) from 262K paid subscribers, compared to $9.4M CAD ($6.9M USD) from 220K paid subscribers in 2021.

For Q4, the company said it realized:

• Revenue of $54.0M CAD ($39.8M USD), a 5% percent decrease compared to $56.9M CAD ($41.9M USD) in Q4 2021—this decrease, the company said, was primarily driven by “lower CPMs in Q4 2022 as compared to Q4 2021 as observed in the broader digital advertising industry.”

• Gross profit of $18.1M CAD ($13.3M USD) in Q4 2022, a 32% increase compared to $13.7M CAD ($10.1M USD) in Q4 2021.

• Direct sales of $12.8M CAD ($9.4M USD), a 45% increase compared to $8.8M CAD ($6.4M USD) in Q4 2021 (direct sales are included in revenue); 

• Subscription revenue of $3.8M CAD ($2.8M USD) on 262K paid subscribers as of Dec, 31, 2022, a 26% increase compared to $3.0M CAD ($2.2M USD) on 220K paid subscribers as of Dec. 31, 2021.

But the real numbers for FY 2022 are a little more eye opening. Enthusiast’s operating costs increased from $85.3M CAD ($62.9M USD) in FY 2021 to $119M CAD ($87.7M USD) in FY 2022 and it also took a goodwill impairment of $31.2M CAD ($23M USD) during the year. Overall, the company saw a net loss of $76.8M CAD ($56.6M USD), compared to a net loss of $52M CAD ($38.3M USD) in FY 2021. Finally, the company ended FY 2022 with a cash on hand position of $7.4M CAD ($5.4M USD), down from cash on hand of $22.6M CAD ($16.6M USD) at the end of FY 2021.

Enthusiast Gaming manages the Vancouver Titans and Seattle Surge through a contract with owners Aquilini Investment Group, and owns  a number of esports and gaming media properties including Luminosity Gaming,  Storied, Addicting Games, Pocket Gamer, The Sims Resource, UGG, Arcade Cloud, Fantasy Football Scout, Wisecrack, BCC, and many others.

Editor’s note: A conversation rate of $1 CAD = $0.74 USD was used for all USD conversions in this article, based on the exchange rate as of March 29, 2023.