East Side Games Group Reports Record First Quarter 2022 Financial Results
Record Q1 revenue of $35.6M, an increase of 55% over the same period last year and 24% higher than the previous quarter Jason Bailey, East Side Games CEO at founding, largest shareholder of EAGR, and Executive Chairman of the Board, appointed CEO of ESGG.
“Q1 was another record quarter for ESGG as we saw growth from our latest hit title, RuPaul’s Drag Race Superstar, which launched on October 25, 2021. This game has ramped up to be our top performing title to date. This property has international reach and a rabid fanbase. It has been featured in the app store as Apples ‘Game of the Day’ as well as other featured game lists on both iOS and the Google Play store. We continue to market and grow this game so that it will continue to contribute to growth and ultimately EBITDA for years to come.” said Jason Bailey, newly appointed CEO of ESGG. “The Office: Somehow We Manage, which launched in late January of this year in partnership with Universal Games and Digital Platforms, is also a star of our growth portfolio. We will be investing materially in the game in Q2 and Q3” continued Mr. Bailey. “Our core portfolio of active titles also performed over the quarter. These titles continued to be EBITDA drivers. This foundation is paying for the development of new titles, GameKit R&D, as well as operational cash flow.” said Bailey, “Given the slate of titles we intend to launch this year and early 2023, we expect to lean in and invest heavily into growth which will result in lower near-term EBITDA. We believe growth now will create a substantially larger cash flow stream once these titles mature and is an extremely attractive use of shareholder capital. Given our strong balance sheet, we are fully funded to achieve significant organic growth in 2022/2023 with existing liquidity available to the company and without access to equity capital markets. Since founding the business in 2011, I have never been so energized about the forward-looking growth prospects of Eastside.” First Quarter 2022 Highlights:
- Revenue was $35.6 million, a 55% increase vs Q1 2021 revenue of $23.0 million and 24% higher than Q4 2021.
- Cash for the Company at March 31, 2022 was $6.2 million compared to $9.2 million at December 31, 2021.
- Earnout Milestones were achieved and paid as $10 million in cash and $10 million in shares as per the Share Purchase Agreement.
- During Q1 2022, the Company expanded its bank credit facility from $3.5 million to $7.1 million increasing its overall credit facilities to $17.1 million. At March 31, 2022, the Company had $1.9 Million in debt.
- Q1 Adjusted EBITDA was $3.0 million.
- Q1 net income of $0.5 million, or $0.01 on a per common share basis.
- Record player audience with Q1 Daily Active Users (DAU) reaching 407,222, up 47% year-over-year, and Monthly Active User (MAU) of 1,751,205, up 74% over the same period.
- Acquired Funko Pop! Blitz mobile game from N3TWORK.
- Expanded the partnership with Mighty Kingdom, based in Australia, for three additional Game Kit based mobile games.
- Added four new genres to the Game Kit core offering, Merge, Match, Blitz and Master and have partnership development agreements for each.
- Chief Revenue Officer, Board Chair, East Side Games co-founder and original CEO in 2011, Jason Bailey, succeeded Darcy Taylor as Chief Executive Officer of ESGG.
- Announced the Dragon Up Mobile Game will be available to play exclusively on Netflix in May 2022.