Enthusiast Gaming (TSX: EGLX) last night reported its second quarter financial results, posting revenues of $37.1 million. Despite making gains on a quarter over quarter basis in terms of revenue, the company still posted a net loss that was relatively unchanged from the prior quarter.
Revenues grew 23.7% on a quarter over quarter basis, climbing from $30.0 million to $37.1 million, with revenues growing as a result of acquisitions made during the quarter. Gross margins were also up, with the company posting $8.0 million in gross margins for the three month period, compared to $5.9 million in the prior period.
In terms of operating expenses, the company appears to be making marginal gains. While revenues were up 23.7%, Enthusiast Gaming saw its total operating expenses climb just 4.8%. The largest expense here is salaries and wages at $5.6 million, followed by share based compensation at $4.0 million.
After other expenses that include $0.5 million in interest and accretion as well as $0.2 million in transaction costs, the company posted a net loss of $12.8 million, a slight improvement over the $13.6 million loss posted in the first quarter of 2021.
As of June 30, Enthusiast reporting holds a cash position of $51.4 million, an improvement from the $24.4 million held at the end of the prior quarter. The increase is attributed to the company raising gross proceeds of $60.1 million during the quarter.
Enthusiast Gaming last traded at $6.36 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.
