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Motorsport Games (MSGM)
NASDAQ:MSGM
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Motorsport Games
(NASDAQ:MSGM)
44Neutral
Motorsport Games (MSGM) vs. S&P 500 (SPY)
Market Cap
$3.61M
Dividend YieldN/A
Average Volume (3M)25.10K
Price to Earnings (P/E)0.8
Beta (1Y)0.29
Revenue Growth25.73%
EPS Growth82.50%
CountryUS
Employees22
SectorCommunication Services
Sector Strength74
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)-0.92
Shares Outstanding3,183,558
10 Day Avg. Volume29,691
30 Day Avg. Volume25,103
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.56
Price to Cash Flow (P/CF)1.70
P/FCF Ratio1.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Motorsport Games Business Overview & Revenue Model
Company DescriptionMotorsport Games (MSGM) is a prominent developer, publisher, and esports ecosystem provider specializing in the domain of racing video games and esports events. The company focuses on creating immersive and authentic racing experiences for motorsport enthusiasts through various digital platforms. Its portfolio includes officially licensed games from renowned racing series such as NASCAR, Le Mans, and the British Touring Car Championship, offering both single-player and multiplayer experiences.
How the Company Makes MoneyMotorsport Games generates revenue through several key streams. Primarily, it earns money from the sale of its video games across various platforms including PC, console, and mobile devices. In addition to direct sales, the company benefits from in-game purchases and downloadable content (DLC) that enhance the gaming experience. Motorsport Games also capitalizes on esports by organizing and promoting racing competitions, which can generate income through sponsorships, broadcasting rights, and event entry fees. Significant partnerships with major racing organizations and brands further bolster its revenue by providing exclusive rights to develop games based on popular racing series.
Motorsport Games Financial Statement Overview
Summary
Motorsport Games faces significant financial headwinds characterized by persistent losses, high leverage, and cash flow challenges. While there are some positive signs in gross profit margins and slight improvements in cash management, overall stability and profitability remain concerns. The company needs to focus on enhancing operational efficiency and reducing financial leverage to improve its financial health.Income Statement
Motorsport Games has struggled to maintain consistent revenue growth, with revenue declining from 2020 to 2021 and then improving slightly in subsequent years. The company has consistently posted negative net income, indicating ongoing profitability challenges. While gross profit margin has shown some resilience, EBIT and EBITDA margins remain weak, reflecting operational inefficiencies.45
Neutral
Balance Sheet
The balance sheet shows high leverage with a fluctuating but generally negative stockholders' equity, indicating financial instability. The debt-to-equity ratio is concerning, though it has improved slightly with decreased total debt. The company's equity ratio is weak, reflecting a low proportion of equity financing relative to total assets.35
Negative
Cash Flow
Cash flow management remains a significant challenge, as indicated by consistently negative operating and free cash flows. The operating cash flow to net income ratio suggests inefficiencies in converting income into cash flow. While there has been some improvement in free cash flow growth, overall cash flow performance is poor, necessitating further improvements in operational efficiency.40
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 8.69M | 6.91M | 10.32M | 15.08M | 19.05M | Gross Profit |
| 5.46M | 3.29M | 5.36M | 7.55M | 12.45M | EBIT |
| -1.75M | -19.41M | -25.41M | -34.21M | 38.98K | EBITDA |
| -337.88K | -11.43M | -33.20M | -31.42M | 757.82K | Net Income Common Stockholders |
| -2.75M | -13.05M | -47.42M | -34.99M | -2.51M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 859.27K | 1.68M | 979.31K | 17.82M | 3.99M | Total Assets |
| 6.27M | 9.76M | 18.90M | 50.70M | 17.39M | Total Debt |
| 47.41K | 198.67K | 997.83K | 119.02K | 10.85M | Net Debt |
| -811.86K | -1.48M | 18.52K | -17.70M | 6.86M | Total Liabilities |
| 5.04M | 7.67M | 16.99M | 12.72M | 15.77M | Stockholders Equity |
| 496.26K | 3.04M | 1.53M | 36.72M | -1.03M |
| Cash Flow | Free Cash Flow | |||
| -2.86M | -13.71M | -19.81M | -21.92M | 3.82M | Operating Cash Flow |
| -2.84M | -12.92M | -19.52M | -20.94M | 4.05M | Investing Cash Flow |
| 1.18M | 4.21M | -292.45K | -14.61M | -480.96K | Financing Cash Flow |
| 834.05K | 9.94M | 1.71M | 49.26M | -1.54M |
Motorsport Games Technical Analysis
Negative
0.93
Price Trends
1.25
Negative
1.25
Negative
1.42
Negative
Market Momentum
-0.05
Positive
34.82
Neutral
10.57
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MSGM, the sentiment is Negative. The current price of 0.93 is below the 20-day moving average (MA) of 1.14, below the 50-day MA of 1.25, and below the 200-day MA of 1.42, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 34.82 is Neutral, neither overbought nor oversold. The STOCH value of 10.57 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MSGM.
Motorsport Games Risk Analysis
Motorsport Games disclosed 70 risk factors in its most recent earnings report. Motorsport Games reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Motorsport Games Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
58 Neutral | $25.04B | 3.12 | -9.31% | 4.26% | 2.35% | -43.03% | |
45 Neutral | $10.61M | ― | -79.76% | ― | 19.85% | 41.89% | |
44 Neutral | $3.61M | 0.76 | -175.34% | ― | 25.73% | 82.50% | |
40 Underperform | $4.37M | ― | -157.27% | ― | ― | ― | |
26 Underperform | $2.08M | ― | -425.84% | ― | ― | ― | |
13 Underperform | $3.65M | ― | -324.29% | ― | -35.48% | 79.53% |
* Communication Services Sector Average
Performance Comparison
MSGM
Motorsport Games
0.93
-1.18
-55.92%
DLPN
Dolphin Entertainment
0.95
-1.45
-60.42%
TC
TuanChe
0.67
-1.28
-65.64%
SLE
Super League Enterprise
0.20
-1.55
-88.57%
VSME
VS Media Holdings Limited Class A
0.87
-1.74
-66.67%
Motorsport Games Earnings Call Summary
Earnings Call Date: Mar 20, 2025 | % Change Since: -23.77% | Next Earnings Date: May 19, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant achievements, such as the success of Le Mans Ultimate, the launch of a profitable subscription service, and positive legal and financial settlements. However, these are tempered by financial challenges, including a large net loss and concerns over cash position and future funding. Despite these challenges, the company shows strong potential for growth and recovery.Highlights
Le Mans Ultimate Success
Le Mans Ultimate showed strong potential with positive reception from consumers and industry influences. A significant update in December sparked a surge in player numbers to levels not seen since the initial launch. The game is being compared favorably to industry giants and has captivated a rapidly growing audience.
Launch of Subscription Service
The new subscription service launched in December via racecontrol.gg generated over $120,000 in gross revenues within the first 21 days and is close to 6,000 active subscribers, showing strong early adoption.
Revenue Increase
Revenues for the fourth quarter were $2.0 million, a 13% increase compared to the same period in the prior year, primarily driven by higher digital game sales from the release of Le Mans Ultimate.
Settlement with Luminis
A settlement with Luminis improved the financial position by $180,000, clearing remaining barriers to full ownership of Studio 397 and their original technology contribution to Le Mans Ultimate.
Positive Legal Ruling
A positive ruling was received in the Innovate Corporation litigation, securing a summary judgment in Motorsport Games' favor on all counts, potentially alleviating some legal fee liabilities.
Lowlights
Net Loss Increase
Net loss for the fourth quarter of 2024 was $2.9 million, compared to net income of $2.7 million for the same period in the prior year, a decrease of $5.6 million.
Cash Position and Funding Concerns
As of December 31, 2024, the company had cash and cash equivalents of $0.9 million, which increased to $1.2 million by February 28, 2025. However, there is insufficient cash on hand to fund operations over the next year, necessitating additional funding.
Adjusted EBITDA Loss
Reported an adjusted EBITDA loss of $2.5 million for the fourth quarter of 2024, compared to an adjusted EBITDA of $0.4 million for the same period in the prior year.
Company Guidance
During the Motorsport Games Inc.'s fourth quarter and full year 2024 earnings call, key metrics highlighted included revenues for the quarter at $2.0 million, a 13% increase from the previous year, primarily driven by digital game sales of Le Mans Ultimate. Despite the revenue increase, the company reported a net loss of $2.9 million for the quarter, compared to a net income of $2.7 million in the prior year, largely due to a $2.2 million increase in other expenses. The full year 2024 revenues reached $8.7 million, up by $1.8 million, attributed to the sales of Le Mans Ultimate. The adjusted EBITDA loss was $2.5 million for the fourth quarter and $3.9 million for the full year, reflecting improvements from previous years. The company reported a net cash used in operations of $2.8 million for the year, with an average monthly net cash burn of $0.2 million, indicating a reduction from the previous year's $1.1 million. Cash and cash equivalents stood at $1.2 million as of February 28, 2025, with the company actively exploring funding options to address future cash shortfalls.Motorsport Games Corporate Events
Product-Related AnnouncementsBusiness Operations and StrategyFinancial Disclosures
Motorsport Games Sees Revenue Growth in Q4 2024
Positive
Mar 20, 2025
Motorsport Games reported its financial results for the fourth quarter and full year 2024, highlighting a revitalizing year with improved revenues and reduced cash burn. The release of ‘Le Mans Ultimate’ in early access and subsequent updates significantly boosted player numbers and consumer sentiment. The company’s revenue for Q4 2024 increased by 13% compared to the previous year, reaching $2.0 million, while full-year revenue rose by 25.7% to $8.7 million. Despite a net loss for the year, the company saw a substantial improvement from the previous year, driven by increased sales and a new subscription service. These developments have opened new opportunities for partnerships and potential business investments.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.