Thursday, March 31, 2022
Motorsport Games (MSGM)
Likely To Be A Reset Year
Motorsport Games, a Motorsport Network company, combines innovative and engaging video games with exciting esports competitions and content for racing fans and gamers around the globe. The Company is the officially licensed video game developer and publisher for iconic motorsport racing series, including NASCAR, INDYCAR, 24 Hours of Le Mans and the British Touring Car Championship (“BTCC”), across PC, PlayStation, Xbox, Nintendo Switch and mobile. Motorsport Games is an award-winning esports partner of choice for 24 Hours of Le Mans, Formula E, BTCC, the FIA World Rallycross Championship and the eNASCAR Heat Pro League, among others. The company’s IPO was in January 2021, and it is headquartered in Miami, FL. For more information about Motorsport Games, visit www.motorsportgames.com.
Michael Kupinski, Director of Research, Noble Capital Markets, Inc.
Patrick McCann, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Q4 misses, but better than feared. The company reported Q4 revenue of $8.2 million, 41.9% below our forecast of $14.2 million. Adj. EBITDA for the quarter was negative at a loss of $5.433 million compared with our forecast of $1.250 million.
Slow off the block. The disappointing Q4 was due largely to an underwhelming launch of the company’s new game, NASCAR 21: Ignition. The game’s 2021 sales trailed that of its predecessor, NASCAR Heat 5 in 2020. We believe that the company is focused on 2023 when the company is expected to have a stable of franchise product offerings …
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
