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Allied Gaming & Entertainment Announces Third 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 third quarter ended September 30, 2023.\n\n\n“We continue to make strides towards our strategic goals, achieving positive net income driven by a significant reduction in general and administrative expenses. Our commitment to growing within the esports, gaming, and entertainment sectors remains unwavering,\" stated Yinghua Chen, Chief Executive Officer of the Company. \"We are also excited to announce the closing of our strategic investment in Beijing Lianzhong Zhihe Technology Co. (“Zhihe”), which positions us as the largest shareholder, strengthening our presence in the rapidly expanding mobile games market and boosting our revenue and profitability.\"\n\n\nThird Quarter 2023 Financial Results\n\n\nRevenues: Total revenues of $1.1 million decreased 28% compared to $1.6 million in the third quarter of 2022. The year-over-year decrease was primarily attributable to a temporary decline in in-person experience revenues at the Company’s Hyper X Arena in Las Vegas.\n\n\nCosts and expenses: Total costs and expenses were $1.8 million, a decrease of 46% compared to the third quarter of 2022. The improvement was driven by a strategic reduction in the Company’s general & administrative expenses of 63%, which include cash compensation, stock-based compensation, and the recognition of employee retention credit refunds under the 2020 CARES and subsequent acts, and a 48% decrease in the Company’s in-person expenses. These decreases were partially offset by an increase in depreciation and amortization expense, acquisition related professional fees, and consulting fees incurred in connection with other strategic investment opportunities.\n\n\nNet income for the third quarter of 2023 improved significantly to a positive $0.1 million compared to a net loss of $1.6 million in the prior year period. Net income in the third quarter of 2023 includes approximately $716,000 of interest income earned on short-term investments.\n\n\nFurthermore, adjusted EBITDA loss was $0.2 million for the third quarter of 2023, a considerable improvement from a loss of $1.8 million in the third quarter of 2022. A reconciliation of the GAAP-basis net income (loss) to adjusted EB...