Allied Gaming & Entertainment Inc (AGAE) 2023 Q2 法說會逐字稿

Greetings, and welcome to the Allied Gaming & Entertainment second-quarter 2023 earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Tyler Drew with Investor Relations. Please go ahead.

您好，歡迎參加 Allied Gaming & Entertainment 2023 年第二季度收益電話會議。 （操作員指示）謹此提醒，本次會議正在錄製中。現在我很高興向您介紹主持人，投資者關係部的泰勒·德魯 (Tyler Drew)。請繼續。

Thank you, operator. Good afternoon, and welcome to the Allied Gaming & Entertainment 2023 second-quarter earnings conference call. Speaking on the call today are Allied Gaming & Entertainment's Chief Executive Officer, Yinghua Chen; and Chief Financial Officer, Roy Anderson.

謝謝你，接線員。下午好，歡迎參加 Allied Gaming & Entertainment 2023 年第二季度收益電話會議。今天在電話會議上發言的是 Allied Gaming & Entertainment 首席執行官陳英華；和首席財務官羅伊·安德森。

Before I turn the call over to management, please note that our prepared remarks may contain forward-looking statements. Words such as may, will, expect, intend, plan, believe, seek, could, estimate, judgment, targeting, should, anticipate, goal, and variations of these words and similar expressions are intended to identify forward-looking statements. Actual results could differ materially from those implied by such forward-looking statements due to a variety of factors discussed in the company's public filings, including the risk factors discussed in documents filed with the Securities and Exchange Commission.

在我將電話轉交給管理層之前，請注意，我們準備的言論可能包含前瞻性陳述。諸如“可能”、“將”、“期望”、“打算”、“計劃”、“相信”、“尋求”、“能夠”、“估計”、“判斷”、“目標”、“應該”、“預期”、“目標”等詞語以及這些詞語的變體和類似表達旨在識別前瞻性陳述。由於公司公開文件中討論的各種因素，包括向美國證券交易委員會提交的文件中討論的風險因素，實際結果可能與此類前瞻性陳述所暗示的結果存在重大差異。

Although the company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be attained. The company undertakes no obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise.

儘管該公司認為此類前瞻性陳述中反映的預期是基於合理的假設，但它不能保證其預期將會實現。公司不承擔更新任何前瞻性聲明的義務，無論是由於新信息、未來事件還是其他原因。

In addition, certain of the financial information presented in this call represents non-GAAP financial measures. The company's earnings release, which was issued this afternoon and is available on the company's website, presents definitions of such non-GAAP financial measures, reconciliation to the appropriate GAAP measures, and an explanation of why the company believes such non-GAAP financial measures are useful to investors.

此外，本次電話會議中提供的某些財務信息代表非公認會計準則財務指標。該公司今天下午發布的收益報告可在公司網站上獲取，其中介紹了此類非公認會計原則財務指標的定義、與適當的公認會計原則指標的調節，並解釋了為什麼該公司認為此類非公認會計原則財務指標是對投資者有用。

With that, it is now my pleasure to turn the call over to Allied Gaming & Entertainment CEO, Yinghua Chen. Yinghua?

現在，我很高興將電話轉給 Allied Gaming & Entertainment 首席執行官陳英華。英華？

Thank you, Tyler. Good afternoon, and thank you, all, for joining us today as we share the latest updates on our journey towards becoming a leading and trusted name in the gaming and entertainment industry. Today, we're delighted to present significant milestones that highlight our continued growth and success.

謝謝你，泰勒。下午好，感謝大家今天加入我們，分享我們成為遊戲和娛樂行業領先且值得信賴的品牌的歷程的最新動態。今天，我們很高興地呈現重要的里程碑，突顯我們的持續增長和成功。

First and foremost, on our financial performance side, we are thrilled to announce a substantial increase in our quarterly revenue up to $3.3 million, which is up 182% year over year. The increase was driven by the continued success of our original content sponsorship and our new arena and mobile truck sponsorship. These pillars have been instrumental in propelling our revenue growth.

首先，在我們的財務業績方面，我們很高興地宣布我們的季度收入大幅增長至 330 萬美元，同比增長 182%。這一增長是由我們的原創內容贊助以及新競技場和移動卡車贊助的持續成功推動的。這些支柱對於推動我們的收入增長發揮了重要作用。

Additionally, our diligent efforts in expense reduction have proven to be highly fruitful. Despite the significant revenue growth, we have managed to reduce our G&A by 20%, which contributed to a $1.6 million year-over-year improvement in our adjusted EBITDA. It speaks to our commitment to maintaining fiscal responsibility while achieving remarkable growth.

此外，事實證明，我們在減少開支方面的努力是卓有成效的。儘管收入大幅增長，我們還是成功地將一般管理費用減少了 20%，這使我們的調整後 EBITDA 同比增長了 160 萬美元。它體現了我們在實現顯著增長的同時維持財政責任的承諾。

During the quarter, we continue to deliver captivating and engaging experiences to our audience. We've produced a total of 99 events, comprising 41 proprietary events and 58 third-party events.

在本季度，我們繼續為觀眾提供迷人且引人入勝的體驗。我們總共製作了 99 個活動，其中包括 41 個專有活動和 58 個第三方活動。

Notable events include EStars presents Elder Scrolls Online, World Poker Tour event, Ross Video Customer Appreciation, Elevated show, Licensing Awards Reception, Golden Knights Watch Party, and TL League of Legends Champions of the Rift community event. This continued growth further demonstrates the appeal of our unique arena and truck assets and our event production capabilities.

著名的活動包括 EStars 推出《上古捲軸 Online》、世界撲克巡迴賽活動、Ross 視頻客戶答謝會、Elevated Show、授權頒獎招待會、Golden Knights 觀看派對以及 TL 英雄聯盟裂谷冠軍社區活動。這種持續增長進一步證明了我們獨特的場館和卡車資產以及我們的活動製作能力的吸引力。

In particular, our original content series, Elevated, has been a resounding success. Elevated Season 2 revolutionized the face of esports-adjacent entertainment, merging the worlds of gaming, creative arts, and reality TV into a potent blend of competitive creativity. The show has reached a total viewership of 12.3 million, with 89.5 million live minutes watched and 11.54 million total unique viewers over the five-week period.

特別是，我們的原創內容系列“Elevated”取得了巨大的成功。 Elevated 第 2 季徹底改變了電子競技相關娛樂的面貌，將游戲、創意藝術和電視真人秀世界融合為競技創造力的有力融合。五週內，該節目的總收視人數已達 1230 萬，直播觀看時間為 8950 萬分鐘，獨立觀眾總數為 1154 萬。

We've also continued production of our other original content series, WANNABE Season 2, which will bring even bigger stars and players from the Yankees network. Impressively, this series has a reach of over 9.3 million homes through the YES app and the YES distribution channels.

我們還繼續製作其他原創內容系列《WANNABE 第 2 季》，該系列將帶來來自洋基隊網絡的更大明星和球員。令人印象深刻的是，該系列通過 YES 應用程序和 YES 分銷渠道覆蓋了超過 930 萬個家庭。

One more exciting development to update is that through our long-standing successful partnerships with key players like HP HyperX, we will be expanding our retail and merchandise offering to our gaming community by connecting our fans with the most advanced gaming peripherals, PCs, equipment, trendy gadgets, and a variety of gamers' lifestyle merchandise through our uniquely positioned HyperX Arena and Allied's online shop.

一項更令人興奮的進展是，通過我們與 HP HyperX 等主要參與者的長期成功合作夥伴關係，我們將通過將我們的粉絲與最先進的遊戲外設、個人電腦、設備、通過我們獨特的HyperX Arena 和Allied 在線商店購買時尚小玩意和各種遊戲玩家的生活方式商品。

Also, in line with our strategic plan to broaden our gaming and entertainment coverage, we have taken several steps to pursue aggressively a wide range of strategic opportunities including the establishment of two new wholly owned subsidiaries, Allied Mobile Entertainment and Allied Experiential Entertainment, that will spearhead these efforts.

此外，根據我們擴大遊戲和娛樂覆蓋範圍的戰略計劃，我們已採取多項措施積極尋求廣泛的戰略機遇，包括成立兩家新的全資子公司 Allied Mobile Entertainment 和 Allied Experiential Entertainment，這將帶頭開展這些工作。

Allied Mobile Entertainment, AME, is dedicated to exploring opportunities in the massive and growing mobile games markets. We're off to a strong start, having identified various potential partners, products, and services, and are currently in the process of testing and pre-public launching a number of casual mobile games, as well as reviewing and pursuing complementary businesses as potential targets for partnership and acquisition.

Allied Mobile Entertainment (AME) 致力於在龐大且不斷增長的手機遊戲市場中探索機遇。我們已經有了一個良好的開端，已經確定了各種潛在的合作夥伴、產品和服務，目前正在測試和預公開推出一些休閒手機遊戲，並審查和尋求潛在的互補業務合作和收購的目標。

Allied Experiential Entertainment, AEE, focuses on organizing general entertainment live events, experiential entertainment venue operation, management, and consultation. Like AME, AEE has already laid a solid business foundation with promising partnerships.

Allied Experiential Entertainment，AEE，專注於組織一般娛樂現場活動、體驗式娛樂場所運營、管理和諮詢。與 AME 一樣，AEE 已經通過有前景的合作夥伴關係奠定了堅實的業務基礎。

We're currently pursuing potential opportunities with various partners. We will share more about the events and initiatives that we believe will drive further growth and success for AGAE.

我們目前正在與各個合作夥伴尋求潛在的機會。我們將分享更多有關我們相信將推動 AGAE 進一步發展和成功的活動和舉措。

We expect that Allied Mobile and Allied Experiential Entertainment will enable us to break into new markets, creating additional revenue streams and enhancing our financial performance within the next 12 months. Further updates will be provided when it is appropriate.

我們預計 Allied Mobile 和 Allied Experiential Entertainment 將使我們能夠在未來 12 個月內打入新市場，創造額外的收入來源並提高我們的財務業績。將在適當的時候提供進一步的更新。

In conclusion, we're very excited about the remarkable progress we have made and the opportunities that lie ahead. Before turning the call to Roy, I'd also like to note that we continue to believe our stock price is undervalued. To that end, and under our share repurchase plan, we have now repurchased approximately $2.4 million of AGAE stock between the announcement of the plan in November and the end of Q2.

總之，我們對所取得的顯著進展和未來的機遇感到非常興奮。在給羅伊打電話之前，我還想指出，我們仍然認為我們的股價被低估。為此，根據我們的股票回購計劃，我們在 11 月份宣布該計劃到第二季度末期間回購了約 240 萬美元的 AGAE 股票。

With that, I'd like to turn the call now to our CFO, Roy Anderson, to give you updates on our Q2 financials.

現在，我想將電話轉給我們的首席財務官羅伊·安德森，向您提供有關我們第二季度財務狀況的最新信息。

Thank you, Yinghua, and good afternoon, everyone. From a P&L perspective, it was a strong second quarter with revenues of $3.3 million, up 182.3% from the prior-year period.

謝謝英華，大家下午好。從損益表來看，第二季度表現強勁，收入為 330 萬美元，比去年同期增長 182.3%。

As Yinghua alluded to, the year-over-year improvement is primarily attributable to the successful release of the second season of our original content series, Elevated, which consisted of 10 episodes. The improvement also includes an increase in sponsorship revenues at our world-class esports arena in Las Vegas and on our Allied Mobile esports truck.

正如英華提到的，同比增長主要歸功於我們的原創內容系列《Elevated》第二季的成功發布，該系列由 10 集組成。這一改進還包括增加我們位於拉斯維加斯的世界級電子競技館和我們的 Allied Mobile 電子競技卡車的讚助收入。

Total costs and expenses for the second quarter of 2023 were $4.7 million, a decrease of 2.4% compared to the second quarter of 2022. The improvement is particularly impressive when considering the additional expenses incurred during the quarter related to the production of Season 2 of Elevated.

2023 年第二季度的總成本和費用為470 萬美元，比2022 年第二季度下降2.4%。考慮到本季度與製作《Elevated》第二季相關的額外費用，這一改善尤其令人印象深刻。 。

The additional expenses were more than offset by decreases in other expense categories, including live event production costs, which declined by 31.1%; general and administrative expenses, consisting principally of cash and stock-based compensation, which declined by 19.6%; and depreciation and amortization expense, which declined by 73.7%.

額外費用被其他費用類別的下降所抵消，其中包括現場活動製作成本，下降了 31.1%；一般及管理費用，主要包括現金和股票薪酬，下降了 19.6%；折舊及攤銷費用下降73.7%。

Net loss for the second quarter of 2023 improved to $700,000 compared to a net loss of $3.7 million in the prior-year period. Our results for Q2 2023 include approximately $715,000 of interest income earned on short-term investments.

2023 年第二季度的淨虧損改善至 70 萬美元，而上年同期淨虧損為 370 萬美元。我們 2023 年第二季度的業績包括短期投資賺取的約 715,000 美元的利息收入。

Our adjusted EBITDA loss was $1.1 million in the second quarter of 2023, improving significantly from a loss of $2.7 million in Q2 2022. The improvement consists principally of the gross margin recognized on our content and event productions and the increase in arena sponsorship revenues, coupled with a reduction in our general and administrative expenses. Our adjusted EBITDA includes adjustments for depreciation, amortization, stock-based compensation, and interest income.

2023 年第二季度，我們調整後的EBITDA 虧損為110 萬美元，較2022 年第二季度的270 萬美元虧損大幅改善。這一改善主要包括我們的內容和活動製作所確認的毛利率以及競技場贊助收入的增加，再加上減少我們的一般和行政開支。我們調整後的 EBITDA 包括折舊、攤銷、股票薪酬和利息收入的調整。

Now moving on to our balance sheet. As of June 30, 2023, our cash and short-term investments position totaled $82.2 million, including $5 million of restricted cash, compared to $86.8 million at December 31, 2022, which also included $5 million of restricted cash.

現在轉向我們的資產負債表。截至2023 年6 月30 日，我們的現金和短期投資頭寸總計8,220 萬美元，其中包括500 萬美元的限制性現金，而截至2022 年12 月31 日，我們的現金和短期投資頭寸為8,680 萬美元，其中還包括500 萬美元的限制性現金。

As of June 30, 2023, the company's working capital position was $74.7 million, including the current portion of an operating lease liability of $1.3 million that was recorded in connection with the implementation of the new leasing standard, ASC 842, on December 31, 2022. Also during the quarter and under our stock repurchase program, we acquired 372,436 shares of our common stock in open market transactions at an average selling price of $1.08 for a total repurchase cost of $404,010, excluding broker fees.

截至2023年6月30日，該公司的營運資本狀況為7470萬美元，包括因2022年12月31日實施新租賃標準ASC 842而記錄的130萬美元經營租賃負債的流動部分此外，在本季度，根據我們的股票回購計劃，我們在公開市場交易中以1.08 美元的平均售價收購了372,436 股普通股，總回購成本為404,010 美元（不包括經紀人費用）。

This brings us to $2.4 million in total repurchases since the commencement of the plan. Moving forward, the manner, timing, and amount of any purchases will continue to be based on an evaluation of market conditions, stock price, and other factors.

自該計劃開始以來，我們的回購總額達到 240 萬美元。展望未來，任何購買的方式、時間和金額將繼續基於對市場狀況、股價和其他因素的評估。

In conclusion, it was a positive quarter at Allied. And our business is trending well as we head into the back half of the year. I will now turn the call back over to Yinghua for closing remarks.

總之，這是聯合航空一個積極的季度。進入下半年，我們的業務趨勢良好。現在我將把電話轉回給英華做總結髮言。

Thank you, Roy. It has certainly been a busy 2023 so far at Allied Gaming & Entertainment as we continue implementing our strategic plan. While we still have plenty of work to do to build our full vision for the company, we have seen encouraging progress and believe we're right on the edge of moving up to the next level.

謝謝你，羅伊。到目前為止，對於 Allied Gaming & Entertainment 來說，2023 年無疑是忙碌的一年，因為我們將繼續實施我們的戰略計劃。雖然我們仍有大量工作要做，以實現公司的全面願景，但我們已經看到了令人鼓舞的進展，並相信我們正處於邁向新水平的邊緣。

Thank you, again, for joining us today as well as your support. We look forward to speaking with you and providing updates on our business and third-quarter results in November.

再次感謝您今天加入我們以及您的支持。我們期待與您交談並在 11 月份提供有關我們業務和第三季度業績的最新信息。

This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

今天的電話會議到此結束。此時您可以斷開線路。感謝您的參與。