Business
Allied Gaming & Entertainment Announces Fourth Quarter and Full Year 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 fourth quarter and full year ended December 31, 2023.\n\n\n“We made substantial progress during fiscal year 2023 and have entered fiscal year 2024 in a position of strength. Allied Esports International ('AEI'), Allied Mobile Entertainment ('AME'), and Allied Experiential Entertainment ('AEE') are all poised for growth as we execute on our strategic objectives this year,” said Yinghua Chen, the Company’s Chief Executive Officer. “With Beijing Lianzhong Zhihe Technology Co. ('Z-Tech') now integrated into our business, AEE finalizing events and expanding its presence in Asia and the continued demand we have for our AEI properties and content, we are extremely excited for the year ahead and very confident in our path forward.”\n\n\nFull Year 2023 Financial Results\n\n\nRevenues: Total revenues of $7.7 million increased 21% in 2023 compared to 2022. The increase in revenue year-over-year was primarily driven by an increase in sponsorship revenue relating to the renewal of our naming rights agreement for our flagship esports facility, HyperX Arena Las Vegas, Season Two of Elevated and two months of revenue from our recent October 2023 strategic investment in Z-Tech.\n\n\nCosts and expenses: Total costs and expenses were $14.3 million in 2023, a decrease of 21% compared to 2022. The net decrease in costs and expenses of $3.9 million is primarily due to a $3.2 million, or 30% reduction in general and administrative expenses, consisting principally of a $1.5 million Employee Retention Credit recognized in 2023, stock-based compensation of $0.9 million, payroll and payroll-related costs of $0.8 million, and insurance and rent expenses of $0.2 million each. These decreases were partially offset by a $0.4 million increase in legal and professional fees related to normal business matters as well as the strategic investment in Z-Tech and other strategic investment opportunities.\n\n\nNet loss (including the amount attributable to non-controlling interests) was $3.6 million in 2023 compared to a net loss of $10.8 million in 2022.\n\n\nAdjusted EBITDA loss was $4.6 million for 2023 compared to a loss of $8.6 million in 2022. A reconciliation of the GAA...