Motorsport Games (NASDAQ:MSGM) Releases Quarterly Earnings Results

Motorsport Games (NASDAQ:MSGM) posted its quarterly earnings results on Wednesday. The company reported $0.07 earnings per share for the quarter, Zacks reports. Motorsport Games had a return on equity of 129.70% and a net margin of 61.31%.

Here are the key takeaways from Motorsport Games’ conference call:

• Revenue jumped 129% year over year to $4.0 million, driven mainly by stronger sales of Le Mans Ultimate and higher RaceControl subscription revenue. Management also said the company generated positive operating income and improved adjusted EBITDA.
• Le Mans Ultimate continues to gain traction, with a new all-time Steam peak of more than 8,800 concurrent players after version 1.3 launched. The company emphasized that average concurrent users are also rising sharply, suggesting players are sticking with the game.
• RaceControl is becoming a meaningful recurring revenue stream, with monthly recurring revenue now above $0.2 million and Q1 subscription revenue of $0.8 million, or 19% of total company revenue. Management described it as a high-margin platform business with room for further expansion.
• The company completed a major corporate restructuring, including repurchasing 904,395 Class A shares from Driven Lifestyle Group and retiring all Class B super-voting shares. Shareholders also approved an expansion of the employee equity plan, and management said these moves improve governance and flexibility.
• Motorsport Games said development of Le Mans Ultimate for PlayStation and Xbox is progressing, but exact timing is still uncertain and more details are expected in 2027. The company is also preparing a new long-term project that will build on its existing simulation technology, live-service platform, and community.

Motorsport Games Price Performance

Motorsport Games stock traded down $0.38 during mid-day trading on Wednesday, reaching $4.94. 257,734 shares of the stock traded hands, compared to its average volume of 51,927. The stock has a market capitalization of $28.55 million, a PE ratio of 3.43 and a beta of 1.73. Motorsport Games has a 12-month low of $2.11 and a 12-month high of $5.56. The business’s 50-day moving average is $4.21 and its 200-day moving average is $3.54.

Insider Buying and Selling

In related news, major shareholder Mike Zoi sold 904,395 shares of the company’s stock in a transaction on Thursday, April 23rd. The stock was sold at an average price of $4.11, for a total transaction of $3,717,063.45. Following the completion of the sale, the insider owned 254,453 shares in the company, valued at approximately $1,045,801.83. This represents a 78.04% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders sold a total of 1,225,932 shares of company stock worth $5,065,568 in the last three months. 4.59% of the stock is currently owned by corporate insiders.

Institutional Trading of Motorsport Games

A number of hedge funds have recently bought and sold shares of MSGM. Dimensional Fund Advisors LP purchased a new stake in Motorsport Games in the third quarter worth about $46,000. HRT Financial LP purchased a new stake in Motorsport Games in the fourth quarter worth about $37,000. State Street Corp purchased a new stake in Motorsport Games in the fourth quarter worth about $39,000. Finally, XTX Topco Ltd purchased a new stake in Motorsport Games in the fourth quarter worth about $34,000. Hedge funds and other institutional investors own 1.66% of the company’s stock.

Wall Street Analyst Weigh In

Separately, Wall Street Zen upgraded Motorsport Games from a “buy” rating to a “strong-buy” rating in a research note on Saturday, March 14th. One equities research analyst has rated the stock with a Hold rating, According to MarketBeat, Motorsport Games currently has an average rating of “Hold”.

Motorsport Games Company Profile

Motorsport Games, Inc is a publicly traded developer and publisher of interactive motorsport entertainment, headquartered in Miami, Florida. The company specializes in creating officially licensed racing simulation titles and managing associated esports competitions. By focusing exclusively on the motorsport genre, Motorsport Games aims to deliver authentic digital experiences that mirror the rules, tracks and vehicles of real-world racing series.

The company’s core activities include the development of video games under licenses from major sanctioning bodies such as NASCAR, the Fédération Internationale de l’Automobile (FIA) and International Motor Sports Association (IMSA).