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Allied Gaming & Entertainment Announces First Quarter 2023 Financial Results
NEW YORK--(BUSINESS WIRE)-- Allied Gaming & Entertainment, Inc. (NASDAQ: AGAE) (the “Company” or “AGAE”), a global experiential entertainment company, today
About this update from Allied Gaming & Entertainment Inc.
[{"type":"text","content":" NEW YORK--(BUSINESS WIRE)--\nAllied Gaming & Entertainment, Inc. (NASDAQ: AGAE) (the “Company” or “AGAE”), a global experiential entertainment company, today announced financial results for the first quarter ended March 31, 2023.\n\n\n“It has been a strong start to the year so far at Allied and we are continuing to gain momentum in the second quarter as we advance on our strategic objectives,” said Yinghua Chen, the Company’s Chief Executive Officer. “We are also excited to have recently announced our continued relationship with HyperX/HP on the Arena branding side and renewal of sponsorship from Progressive Insurance on our original content programs. These growing relationships are further evidence that Allied is recognized as an established name in the gaming entertainment community and that we offer an inroad to this crucial and fast-growing multi-billion-dollar gaming marketplace.”\n\n\nFirst Quarter 2023 Financial Results\n\n\nRevenues: Total revenues of $1.2 million were relatively flat from the fourth quarter of 2022, and down from $2.4 million in the first quarter of 2022. The year-over-year decline was primarily attributable to the timing of the Company’s original content series, ELEVATED, which recognized revenues for Season 1 in the first quarter of 2022 and is expected to recognize revenues for Season 2 in the second quarter of 2023.\n\n\nCosts and expenses: Total costs and expenses were $3.8 million, a decrease of 38% compared to the first quarter of 2022. The decrease was in large part due to a 26% reduction in general & administrative expenses, principally cash, severance and stock-based compensation, as well as the aforementioned timing and related expense recognition of ELEVATED.\n\n\nNet loss for the first quarter of 2023 was $1.9 million compared to a net loss of $3.8 million in the prior year period. Net loss in the first quarter of 2023 includes approximately $734,000 of interest income earned on short-term investments.\n\n\nFurthermore, adjusted EBITDA loss was $2.0 million for the first quarter of 2023, a 20% reduction from a loss of $2.5 million in the first quarter of 2022. A reconciliation of the GAAP-basis net loss to adjusted EBITDA is provided in the table at the end of this press release.\n\n\nBalance Sheet\n\n\nAs of March 31, 2023, the Company had a cash and short-term investments position of $84...