Motorsport Games Inc (MSGM) 2024 Q3 法說會逐字稿

Thanks you for standing by, and welcome to the Motorsport Games Inc. third quarter 2024 earnings call. (Operator Instructions) As a reminder, today's conference is being recorded.

感謝您的支持，歡迎參加 Motorsport Games Inc. 2024 年第三季財報電話會議。（操作員指示）提醒一下，今天的會議正在錄製中。

I would like to turn the conference over to Ben Rossiter-Turner from Motorsport Games. Please go ahead.

我想將會議交給 Motorsport Games 的 Ben Rossiter-Turner。請繼續。

Thank you, and welcome to Motorsport Games third quarter 2024 earnings conference call and webcast. On today's call is Motorsport Games Chief Executive Officer; Stephen Hood; and Chief Financial Officer, Stanley Beckley.

謝謝，歡迎參加 Motorsport Games 2024 年第三季財報電話會議和網路廣播。參加今天電話會議的是 Motorsport Games 執行長；斯蒂芬胡德；財務長史丹利·貝克利。

By now, everyone should have access to the company's third quarter 2024 earnings press release filed today after market close. This is available on the Investor Relations section of Motorsport Games' website at www.motorsportgames.com.

到目前為止，每個人都應該可以訪問該公司今天收盤後提交的 2024 年第三季財報新聞稿。您可在 Motorsport Games 網站 www.motorsportgames.com 的投資者關係部分取得此資訊。

During the course of this call, management may make forward-looking statements within the meaning of US federal securities laws. These statements are based on management's current expectations and beliefs and involve risks and uncertainties that could cause actual results to differ materially from those described in these forward-looking statements. Except as required by law, the company undertakes no obligation to update any forward-looking statements made on this call or to update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.

在本次電話會議期間，管理階層可能會做出美國聯邦證券法意義內的前瞻性陳述。這些陳述是基於管理階層目前的預期和信念，涉及可能導致實際結果與這些前瞻性陳述中描述的結果有重大差異的風險和不確定性。除法律要求外，本公司不承擔更新本次電話會議中所做的任何前瞻性陳述或更新或更改其前瞻性聲明的義務，無論是由於新資訊、未來事件或其他原因。

Please refer to today's press release and the company's filings with the SEC, including its most recent quarterly report, Form 10-Q, for the quarter ended September 30, 2024, for a detailed discussion on certain risks that could cause actual results to differ materially from those expressed or implied in any forward-looking statements made today.

請參閱今天的新聞稿和公司向 SEC 提交的文件，包括截至 2024 年 9 月 30 日的季度的最新季度報告 10-Q 表，詳細討論可能導致實際結果出現重大差異的某些風險來自今天所做的任何前瞻性陳述中明示或暗示的內容。

In today's conference call, we will refer to certain non-GAAP financial measures, such as adjusted EBITDA, as we discuss the third quarter 2024 financial results. You will find a reconciliation of these non-GAAP measures to their most directly comparable GAAP measures as well as other related disclosures in the press release issued earlier today, which is also available on the Investor Relations section of Motorsport Games' website at www.motorsportgames.com.

在今天的電話會議中，我們在討論 2024 年第三季財務業績時將提及某些非 GAAP 財務指標，例如調整後 EBITDA。您可以在今天早些時候發布的新聞稿中找到這些非GAAP 衡量標準與其最直接可比較的GAAP 衡量標準以及其他相關披露的對賬，該新聞稿也可在Motorsport Games 網站www.motorsportgames 的投資者關係部分找到。

And now I'd like to turn the call over to Stephen Hood, Chief Executive Officer of Motorsport Games. Stephen?

現在我想將電話轉給 Motorsport Games 執行長 Stephen Hood。史蒂芬？

Thank you, everyone, for joining this conference call today. Since our last conference call, work has diligently continued at Motorsport Games and our development team at Studio 397 to deliver improved player experiences against the backdrop of ongoing cost optimization. We continue to drive game revenues whilst reducing expenditure.

感謝大家參加今天的電話會議。自上次電話會議以來，Motorsport Games 和 Studio 397 的開發團隊一直在努力繼續工作，以在持續成本優化的背景下提供更好的玩家體驗。我們繼續推動遊戲收入，同時減少支出。

As announced last month, the company undertook further head count reductions aimed at reducing cash expenditure and streamlining operations. This was a necessary move to maintain our steadfast commitment to rightsizing the entire operation so that we can emerge stronger and ultimately prepared for success.

正如上個月宣布的那樣，該公司進一步裁員，旨在減少現金支出並簡化營運。這是維持我們對整個營運規模進行調整的堅定承諾的必要舉措，以便我們能夠變得更強大，並最終為成功做好準備。

A reduction in personnel has not meant a reduction in productivity or progress, however. We believe we have struck the right balance between cost saving and the retaining of key staff and vital knowledge. The team we have today are more than capable of carrying this company into a new phase with continued product and technology growth, which will serve our customers, shareholders and clients.

然而，人員的減少並不意味著生產力或進步的降低。我們相信，我們已經在節省成本與保留關鍵員工和重要知識之間取得了適當的平衡。我們今天擁有的團隊完全有能力帶領公司進入一個新的階段，產品和技術不斷發展，這將為我們的客戶、股東和客戶服務。

In September, Le Mans Ultimate received its biggest update so far with large free feature updates alongside the second of our 2024 downloadable content, or DLC packs. An innovative co-op mode that I've spoken about regularly was delivered, offering a unique opportunity for racers to play together with friends at a pace that suits them in a play-by-mail gaming style and powered by our online platform RaceControl. This feature is not available in any other product on the market and something that we are particularly proud of and expect to make use of in partnership with some of our clients also seeking further opportunities for improved customer retention.

9 月，《勒芒極限》迎來了迄今為止最大規模的更新，其中包括大量免費功能更新以及我們的 2024 年第二個下載內容或 DLC 包。我經常談論的創新合作模式已經推出，為賽車手提供了一個獨特的機會，以適合他們的速度與朋友一起玩郵件遊戲風格，並由我們的線上平台 RaceControl 提供支援。此功能是市場上任何其他產品所不具備的，我們對此感到特別自豪，並希望與我們的一些客戶合作利用這項功能，這些客戶也在尋求進一步提高客戶保留率的機會。

Players now have the opportunity to play one chapter of a story at a time of their choosing, which can only be a benefit in today's hectic world where time to play is at a premium.

玩家現在有機會在自己選擇的時間玩故事的一個章節，這在當今忙碌的世界中是一個好處，因為玩時間非常寶貴。

Whilst the underlying technology that powers our simulation online platform and gaming is incredibly strong, we realize the deployment of our experiences must be to the benefit of a wide range of gamers. F1 Arcade, powered by our technology, is a more recent example of high-end simulation technology being very much proven as pick-up and play.

雖然為我們的模擬線上平台和遊戲提供動力的基礎技術非常強大，但我們意識到我們的體驗的部署必須造福廣大的遊戲玩家。由我們的技術提供支援的 F1 Arcade 是高端模擬技術的最新範例，已被證明可以輕鬆上手。

Additionally, we delivered a feature that players have been asking for since day one, the ability to save a race and resume it in a race weekend game mode. As the simulation built to represent the 24 hours of Le Mans and the FIA World Endurance Championship, our product must be able to allow users to complete technically challenging endurance races in a way that suits them. And both this save-and-load feature and a co-op game mode fulfill this requirement.

此外，我們還提供了玩家從第一天起就一直要求的功能，即能夠保存比賽並在比賽週末遊戲模式下恢復比賽。作為代表勒芒24小時耐力賽和國際汽聯世界耐力錦標賽的模擬，我們的產品必須能夠讓使用者以適合他們的方式完成技術上具有挑戰性的耐力賽。這種保存和載入功能以及合作遊戲模式都滿足了這項要求。

Next up, we're on the path to deliver real-time driver swaps in the new year expected in Q1 2025, which will continue to take our product to a new level. Players will be able to team up with friends and play in real-time races, sharing their car and in turn, experiencing shared moments that will further broaden the appeal of our newest game.

接下來，我們預計將在 2025 年第一季提供即時驅動程式更換，這將繼續將我們的產品提升到新的水平。玩家將能夠與朋友組隊，參加即時比賽，共享他們的汽車，進而體驗共享時刻，這將進一步擴大我們最新遊戲的吸引力。

Pack two of our 2024 season pass for Le Mans Ultimate completed the Hypercar grid for players with the Isotta Fraschini and the Alpine LMDh, both with great support from the manufacturers. We expect our subsequent packs to generate greater interest as we bring the ever popular GT3 series cars to the game.

我們的勒芒終極版 2024 年賽季通行證的第二包為 Isotta Fraschini 和 Alpine LMDh 的選手完成了 Hypercar 排位，這兩款車都得到了製造商的大力支持。隨著我們將廣受歡迎的 GT3 系列賽車引入遊戲，我們預計後續包會引起更大的興趣。

Data from another of our products, rFactor 2, historically shows these are by far our most popular vehicle class and we're eager to see this translate into Le Mans Ultimate as we continue to bring the product up-to-date to match the real-world offering and changes in the sport.

我們的另一個產品 rFactor 2 的數據歷史顯示，這些是迄今為止我們最受歡迎的車輛類別，我們渴望看到它轉化為勒芒終極版，因為我們將繼續更新產品以匹配真實的車型-這項運動的世界範圍和變化。

Part of this major update is an extension to our RaceControl platform to enable new features and services as part of an optional subscription service. We made a commitment to expand the overall offering, and subscription plans are a part of that. We are conscious, however, of the never-ending stream of subscription services out there and intend for our offering to provide major value across our two pillar titles, rFactor two and the Le Mans Ultimate.

此次重大更新的一部分是對 RaceControl 平台的擴展，以啟用新功能和服務作為可選訂閱服務的一部分。我們承諾擴大整體產品範圍，訂閱計劃是其中的一部分。然而，我們意識到訂閱服務源源不斷，並打算讓我們的產品為我們的兩大支柱遊戲（rFactor 2 和 Le Mans Ultimate）提供主要價值。

With every new game tapping into this to deliver unbeatable value, this service should go live next month and become a useful revenue stream. I must also make mention of our partnership with Kindred Concepts, creators and operators of the hugely successful F1 Arcade. They recently expanded to a fourth venue, the latest in Washington, D.C. This is a partnership that enables us to demonstrate the appeal of game and technology, and we're hopeful of exploring more of what we can do together next year.

隨著每個新遊戲都利用這一點來提供無與倫比的價值，這項服務應該會在下個月上線並成為一個有用的收入來源。我還必須提及我們與 Kindred Concepts 的合作夥伴關係，Kindred Concepts 是非常成功的 F1 Arcade 的創建者和運營商。他們最近擴展到了第四個場地，最新的一個在華盛頓特區。

With every new venue opened, more players get to experience our racing simulation. We received additional per-seat license revenue from Kindred Concepts, and we position our technology as the pinnacle of single-seat racing.

隨著每個新場地的開放，更多的玩家可以體驗我們的賽車模擬。我們從 Kindred Concepts 獲得了額外的每座授權收入，並且我們將我們的技術定位為單座賽車的巔峰。

As I hope you will have understood, I am upbeat about the potential future of this company, studio and its technology. Our announcement regarding strategic alternatives came about because the Board and I believe, with the right financing, we will have the opportunity to grow this business quickly and sustainably.

正如我希望您能夠理解的那樣，我對這家公司、工作室及其技術的潛在未來感到樂觀。我們宣布有關策略替代方案的原因是，董事會和我相信，透過正確的融資，我們將有機會快速、可持續地發展這項業務。

In the 18 months since I returned to this business with a mandate to steer a new course, we have made enormous progress: reducing debt, reducing cash spend and, at the same time, building, launching and cultivating an iconic product in Le Mans Ultimate.

自從我帶著引導新方向的任務回到這個行業以來的18 個月裡，我們取得了巨大的進步：減少了債務，減少了現金支出，同時，在勒芒極限耐力賽中打造、推出和培育了一款標誌性產品。

Now I would like to invite Stanley Beckley, our Chief Financial Officer, to talk about the financial results for the third quarter of 2024.

現在我想邀請我們的財務長史丹利貝克利（Stanley Beckley）談談2024年第三季的財務表現。

Thank you, Stephen, and good evening, everyone. As with previous earnings calls, I wouldn't be offering any forward-looking guidance today. Instead, I will focus on providing an update on our financial results and highlights from the third quarter of 2024.

謝謝你，史蒂芬，大家晚上好。與之前的財報電話會議一樣，我今天不會提供任何前瞻性指導。相反，我將重點介紹 2024 年第三季我們的財務表現和亮點的最新情況。

Revenues for the quarter were $1.8 million, up by $0.1 million or 6.4% when compared to the same period in the prior year. The increase in revenues was primarily due to higher digital game sales from the release of Le Mans Ultimate on PC in February 2024.

該季度營收為 180 萬美元，比去年同期增加 10 萬美元，即 6.4%。收入的成長主要是由於 2024 年 2 月 PC 版《勒芒終極》的發布帶來了數位遊戲銷售的成長。

Net loss for the quarter was $0.6 million compared to a net loss of $3.5 million for the same period in the prior year, an improvement of $2.9 million. The decrease in net loss is driven by $1.4 million in other income, which is primarily comprised of foreign currency gains incurred, emerging transactions denominated in the currency other than US dollars.

本季淨虧損為 60 萬美元，與去年同期的淨虧損 350 萬美元相比，減少了 290 萬美元。淨虧損的減少是由 140 萬美元的其他收入推動的，該收入主要包括產生的外幣收益、以美元以外的貨幣計價的新興交易。

Net loss also decreased due to a $0.5 million reduction in operating expenses related to head count reductions and lower general and administrative expenses during the three months ended September 30, 2024, compared to the same prior year period as well as a $0.2 million improvement in gross profit.

淨虧損也有所減少，原因是與去年同期相比，與員工人數減少相關的營運費用減少了50 萬美元，以及截至2024 年9 月30 日的三個月內一般和管理費用減少，以及毛收入改善了20 萬美元。

Net income attributable to Class A common stock was [$0.0] per share for the third quarter of 2024 compared to a net loss of $1.31 for the same period in the prior year.

2024 年第三季 A 類普通股應佔淨利為每股 [0.0 美元]，而去年同期淨虧損為 1.31 美元。

We are reporting adjusted EBITDA of $0.1 million for the third quarter of 2024 compared to an adjusted EBITDA loss of $2.5 million for the same period in the prior year. The improvement in adjusted EBITDA are the same as those discussed in respect of the change in net income for the period and comparative quarter as well as a decrease in stock-based compensation compared to the prior year period. As it relates to liquidity, this continues to be a key area of focus for the company.

我們報告 2024 年第三季調整後 EBITDA 為 10 萬美元，而去年同期調整後 EBITDA 虧損為 250 萬美元。調整後 EBITDA 的改善與本期和比較季度淨利潤變化以及股票薪酬與上年同期相比減少的討論相同。由於它與流動性有關，這仍然是公司關注的關鍵領域。

Net cash used in operations for the nine months ended September 30, 2024, and was approximately $0.7 million, representing an average monthly net cash burn from operations of $0.1 million, down $1.0 million when compared to the average monthly cash burn of $1.1 million for the nine months ended September 30, [2023]. As of September 30, 2024, the company had cash and cash equivalents of $0.8 million which had decreased to $0.5 million as of October 31, 2024.

截至2024 年9 月30 日的九個月，營運中使用的現金淨額約為70 萬美元，相當於每月平均營運現金消耗淨額為10 萬美元，比2024 年平均每月現金消耗額110萬美元減少了100 萬美元。截至2024年9月30日，該公司擁有現金及現金等價物80萬美元，截至2024年10月31日已減少至50萬美元。

Based on our cash position and average monthly cash burn, we do not believe there is sufficient cash on hand to fund company operations over the next year and that additional funding will be required in order to continue operations. In order to address this liquidity shortfall, we are actively exploring several options, including, but not limited to, additional funding in the form of potential equity and/or debt financing arrangements or similar transactions; other strategic alternatives for our business including, but not limited to, the sale or licensing of our assets in addition to the recent sales of its NASCAR license and Traxion and further cost reduction and restructuring initiatives.

根據我們的現金狀況和平均每月現金消耗，我們認為手頭上沒有足夠的現金來為公司明年的營運提供資金，並且需要額外的資金才能繼續營運。為了解決這種流動性短缺問題，我們正在積極探索多種選擇，包括但不限於以潛在股權和/或債務融資安排或類似交易的形式提供額外資金；我們業務的其他戰略選擇包括但不限於除了最近出售 NASCAR 許可證和 Traxion 以及進一步降低成本和重組舉措之外，出售或許可我們的資產。

Thank you all for your time. And now I will turn the call back to Stephen for closing remarks.

感謝大家抽出寶貴的時間。現在我將把電話轉回給史蒂芬，讓他發表結束語。

Thank you, Stanley, and thank you to everyone joining us today. If I could leave you with one lasting thought, it's this. We've shown that a united and focused team of passionate, talented individuals can defy the odds and transform our organization into the forward-thinking games company we were always meant to be. I'm confident that together, we will empower our people to lead us into a successful future, delivering entertainment experiences that could genuinely disrupt the racing and driving segment within which we operate.

謝謝你，史丹利，也謝謝今天加入我們的所有人。如果我能給你留下一個持久的想法，那就是這個。我們已經證明，一個由充滿熱情、才華橫溢的個人組成的團結、專注的團隊可以克服困難，將我們的組織轉變為我們一直希望成為的具有前瞻性思維的遊戲公司。我相信，我們將齊心協力，讓我們的員工帶領我們走向成功的未來，提供真正顛覆我們所經營的賽車和駕駛領域的娛樂體驗。

We have perhaps the best technology, amazing people, a growing ecosystem with our race control platform, which incidentally passed the 100,000 user registration mark just this week, we are working as hard as possible.

我們也許擁有最好的技術、出色的人才、不斷發展的生態系統以及我們的比賽控制平台，該平台恰好在本週突破了 100,000 個用戶註冊大關，我們正在盡最大努力。

Thank you all for your time and attention. I deeply appreciate it.

感謝大家的時間和關注。我深深地欣賞它。

Thank you. We will not be fielding questions today. I would now like to turn the conference back to Mr. Stephen Hood for any additional or closing remarks.

謝謝。我們今天不會回答問題。現在我想請史蒂芬·胡德先生發表補充或結束語。

Thank you. I would just like to say thank you for the attention that we received this evening. It is much appreciated. Thank you all for your time.

謝謝。我只想對你們今晚對我們的關注表示感謝。非常感謝。感謝大家抽出寶貴的時間。

This does conclude today's call. We thank you for your participation. You may disconnect at any time.

今天的電話會議到此結束。我們感謝您的參與。您可以隨時斷開連線。