Business
Motorsport Games Reports Fourth Quarter & Full Year 2020 Financial Results
Higher Sales and Gross Margin on Efficient Operations 1Q21 Business Update MIAMI, March 24, 2021 (GLOBE NEWSWIRE) -- Motorsport Games, Inc. (NASDAQ: MSGM)
About this update from Motorsport Games Inc.
[{"type":"text","content":"Higher Sales and Gross Margin on Efficient Operations 1Q21 Business Update\nMIAMI, March 24, 2021 (GLOBE NEWSWIRE) -- Motorsport Games, Inc. (NASDAQ: MSGM) (“Motorsport Games”), today reported financial results for its fourth quarter and fiscal year ended December 31, 2020. The Company also has posted a 2020 Year In Review video accessible on the investor relations section of its website. Dmitry Kozko, Chief Executive Officer of Motorsport Games, commented, “Today we report double-digit year over year revenue growth, and today in 2021 we are focused on our long-term goal to become the household brand name for racing games and esports globally. Our mission is to spread the joy of racing games to fans around the world. We sit at the center of three rapidly growing markets: motorsports, gaming, and esports. Our vision is to achieve excellence across all three, and we believe that we are well positioned to do so. Thank you to our team, to our global iconic brand partners like NASCAR, 24 Hours of Le Mans and the British Touring Car Championship, and to our investors who supported our recent IPO. We remain excited and confident about our ability to execute our business plan, especially in 2021.”2020 Full Year and 4Q20 Financial Highlights For the full year 2020, revenue increased 60% to $19.0 million from $11.9 million in 2019. Gross Profit was $12.4 million, up 77% year over year, with a gross margin of 65% compared to gross profit of $7.0 million and a gross margin of 59% in the prior year. Net loss for the full year 2020 was ($0.7 million) compared to a net loss of ($5.8 million) in the prior year.For the full year 2020, Adjusted EBITDA improved to $0.9 million from ($4.9 million) in the prior year 2019.For the fourth quarter of 2020, revenue increased 26% to $2.9 million from $2.3 million in the fourth quarter of 2019. Gross profit was $1.6 million, up 33% year over year, and gross margin was 55% compared to gross profit of $1.2 million and gross margin of 51% in the prior year period. Net loss for the fourth quarter of 2020 was ($3.1 million) compared to ($1.5 million) in the prior year period.For the fourth quarter of 2020, Adjusted EBITDA was ($2.7 million) compared to ($1.5 million) in the prior year period. Kozko commented, “Since the completion of the IPO in January, the Company has announced three acquisitions which enhance...