Enthusiast Gaming (TSX: EGLX) reported on Monday its Q4 and full year 2021 financial results, posting an annual revenue of $167.4 million. This is higher than 2020’s revenue of $73.0 million.
However, gross margin declined to 22.6% for the year from last year’s 25.6%. Add to this, operating expenses jumped to $85.3 million coming from $35.5 million last year. Salaries and wages, and share-based compensation took the largest slices, amounting to $25.1 million and $18.9 million, respectively.
This led the company to record an annual net loss of $52.0 million compared to net losses of $26.9 million last year. The annual loss translates to $0.43 per share.
Sponsored · Selkirk Copper Mines
“Our momentum continues and we are pleased to confirm our record-breaking results from Q4 2021,” said CEO Adrian Montgomery. “We are seeing strong repeat business in direct sales, continued conversions of viewers into paying subscribers, and strength in our product offerings.”
Montgomery said the firm expects this trend to continue in 2022 and beyond.
The company’s shares took a dive as it opened today, falling by as much as 11.69%.
At the end of the year, the company had $22.7 million in cash coming from a starting balance of $4.3 million at the start of the year. The influx of cash mainly came from net proceeds of share offerings amounting to $95.1 million. The balance of the current assets came in at $59.3 million while current liabilities ended at $68.4 million.
Enthusiast Gaming last traded at $3.85 on the TSX.
Information for this briefing was found via Sedar and Enthusiast Gaming. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
