Allied Gaming & Entertainment Narrows Loss, Reduces Costs in Q2 2023

Credit: Allied Gaming & Entertainment

Allied Gaming & Entertainment (NASDAQ: AGAE) announced financial results for the second quarter of 2023, which ended June 30. 

The company recorded total revenues of $3.3M USD, an increase of 182% compared to $1.2M in Q2 2022, which it attributed to the release of the second season of its original content series ELEVATED, and the “execution of a more lucrative long-term arena sponsorship agreement.”

Net loss for Q2 2023 was $700K, compared to a net loss of $3.7M in Q2 2022—that net loss during the quarter included approximately $715K of interest income earned on short-term investments. EBITDA loss was $1.2M for the quarter, a “significant improvement” from a loss of $2.9M in Q2 2022.

The company said that it has successfully lowered costs in the quarter as well: Total costs and expenses were $4.7M, a 2.4% decrease compared to Q2 2022. The improvement was due to costs that were not incurred during Season Two of ELEVATED. Additional expenses were offset by decreases in other expense categories as well: a 31.1% decline in live production costs, a 19.6% decrease in general and administrative expenses (“cash and stock-based compensation”), and a 73.7% decline in “depreciation and amortization expenses.”

By the end of Q2 2023, Allied had a cash and short-term investments position of $82.2M, which includes $5.0M of restricted cash—compared to $86.8M in cash and short-term investments on Dec. 31, 2022, which also included $5.0M of restricted cash. At the end of Q2 2023, the company had a working capital position of $74.7M, compared to $79.1M on Dec. 31, 2022. 

As of June 30, the company had approximately 37.4M shares of outstanding common stock. During the quarter, Allied bought back a total of 372,436 shares of its common stock at an average selling price of $1.08 for a total cost of $404,010, excluding broker fees.  

During Q2 2023, the company produced 99 events (41 proprietary events and 58 third-party events). Third-party events included EStars presents Elder Scrolls Online, Ross Video Customer Appreciation, a WPT event, the final two episodes of ELEVATED, the Golden Knights Watch Party, and the TL LOL Champions of the Rift Community Event.

During the quarter, Season 2 of ELEVATED Presented by Progressive Insurance was released (hosted by One True King members). Allied claims that the series has generated a total viewership of 12.7M, with 89.5M live minutes watched and 11.9M total unique viewers.

Allied also announced the extension of its exclusive naming rights agreement with HyperX/HP during the quarter, ensuring that HyperX Arena Las Vegas retains its name—HyperX/HP gaming-related products will also be available for sale inside the arena moving forward.