Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
Please consider a small donation if you think this website provides you with relevant information
| Statement |
|---|
| Since joining the company as CEO, we've been able to significantly reduce costs, executed the sale of the NASCAR license, offloading a significant portion of our NASCAR financial obligations, the retaining of our NASCAR back catalog to 2024, more than doubling our projections for users of our new online service RaceControl, and today announcing an updated release date for a planned Le Mans Ultimate product, we are pleased with the progress and continue to work diligently to drive the business forward |
| This work undertaken by the Board and senior leadership team has started to deliver recognizable tangible results, and I'm very happy to walk you through the positive achievements we have accomplished thus far |
| With the World Endurance Championship heading into a wonderful period, which is many greats of the automotive world returning to compete from Ferrari to Porsche and Lamborghini, Cadillac and BMW, we are on the wave of an exciting season, and believe this will serve our move into the segment particularly well |
| Stanley is a fantastic addition to our team, and his energy and enthusiasm will maintain our momentum |
| Feedback has been overwhelmingly positive beating all expectations, and is expected to continue going from strength to strength as the beta program becomes available to all players later this week |
| We are pleased to see the positive attention at NASCAR for 24 Hours of Le Mans World Endurance Championship game utilizing the state-of-the-art highly regarded physics engine behind the rFactor 2 simulation, with some of the most recognizable vehicles in sports car memory |
| Although still early, we are optimistic in believing that our approach to providing accessible, high quality interconnected services and entertainment within this segment will pay dividends |
| We had considered saving this service to launch alongside our Le Mans Ultimate title, but opted to soft launch now for rFactor 2 and benefit from the learnings ahead of a major push with arrival of Le Mans |
| This period of reorganization since my return earlier in the year is starting to demonstrate positive results |
| I'm happy to say that we are already witnessing additional content sales for our rFactor 2, reaching over 60% compared to the month prior |
| This past quarter has been a continuation of the incredible efforts to steer our business to future success |
| Additionally, I am pleased to say our continued partnership with Kindred Concepts and their F1 Arcade project that utilizes the rFactor 2 technology is continuing to grow |
| We know this number compares favorably to somewhat similar services, beating them outright in growth |
| These savings were achieved through changes in global headcount, reducing certain overhead expenditures and improvements in our internal processes |
| I'm very excited about this next phase, and we owe Jason for the effort in providing this launch pad |
| I am pleased today that we can confirm the updated release date of this highly anticipated racer from Studio 397, our veteran racing team |
| The reduction in overhead spend was in part driven by actions taken under the company's 2022 restructuring program, which has helped us lower our overhead cost by approximately 6.7 million on an annualized basis as of September 30, 2023, exceeding our target of 4 million in annualized savings by the end of 2023 |
| We are making something that can sustain itself and grow |
| We've retained the site audience and highly respected brand, and have a plan of action for its use alongside elements of the business already indicating growth prospects |
| Our focus is to deliver a sustainable, profitable high growth business |
| This technology previously referred to under the codename competition system is powering an improved multiplayer service today for our recent game rFactor 2 and tomorrow in our planned Le Mans Ultimate Game |
| We’re also making headway in our planning for how we take this collaborative team-based concept not usually found in racing games to a much wider mainstream audience |
| So we're happy with where the cash fund is heading directionally |
| Stanley will pick up the reins from Jason Potter, continuing the exemplary work to drive positive change to our business |
| Now, please allow me to bring you up to speed on the results of a proudly announced comprehensive assessment of the company's position and projects |
| Higher digital game and DLC sales are the primary drivers for the increase, driven in part by the release of NASCAR Heat 5 - Next Gen Car Update DLC in June 2023, which were partially offset by reduction in Esports revenue due to the timing of the commenced '23, '24 Le Mans virtual series season compared to '20 to '23 season, which commenced in September 2022 |
| This sale significantly reduces our financial obligations associated with the NASCAR license and allows us to focus both financial and development resources on near-term projects that are anticipated to come to market |
| And so this is something we'll continuously review and always look to improve upon and make sure we’re efficient as possible |
| Being the chosen platform to demonstrate the high tech entertainment to be found within Formula 1 is a testament to our ongoing investment in Studio 397, the home of rFactor 2 and the planned Le Mans Ultimate title |
| Good luck to you guys |
| Statement |
|---|
| Additionally, our media website traxion.gg has been similarly closed due to underperforming revenues versus costs |
| On a year-to-date basis, revenues were 5.2 million, down 1.4 million when compared to the same period in the prior year, primarily due to lower digital, mobile and retail game sales driven by lower volumes of sales at less favorable pricing |
| Consequently, EPS for the quarter was negative $1.28 compared to negative $7.29 in the same period in the prior year |
| Year-to-date adjusted EBITDA loss was 9.4 million, down from 18 million for the same period last year |
| Net loss for the quarter was 3.5 million, a decrease of 5 million when compared to the same period of the prior year |
| I think this week hasn't been easy for us |
| EPS loss for the year-to-date period was $6.60 compared to $26.61 for the same period in the prior year |
| As of October 31, 2023, our cash and cash equivalents position increased from 2 million to 3.2 million following the sale of the NASCAR license, which we believe is insufficient to fund operations through the end of Q1 2024, and that additional funding will be required in order to continue operations |
| There has been some tough decisions around that we obviously have to make, some changes from a restructuring side of things and try and reduce some of the overhead at a more sustainable level |
| I think from a financing perspective as a whole, we look at what our cash fund has been and it’s come down tremendously when we compare to the prior year and even prior quarters |
| What was built during the COVID period is less efficient today |
| Additionally, we recently announced that the licensor of our BTCC license has terminated our BTCC license effective as of November 3, 2023 |
| Net loss was 17 million for the year-to-date period compared to 32 million for the same period in the prior year |
| We are reporting an adjusted EBITDA loss of 2.4 million for the third quarter of 2023 compared to an adjusted EBITDA loss of 6.5 million for the same period in the prior year |
| Please refer to today's press release and the company's filings with the SEC, including its most recent quarterly report on Form 10-Q for the quarter ended September 30, 2023, for a detailed discussion of certain risks that could cause actual results to differ materially from those expressed or implied in any forward-looking statements made today |
Please consider a small donation if you think this website provides you with relevant information