Enthusiast Gaming Posts Q2 Revenues of $37.1 Million, Net Loss
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.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.
