Esports Entertainment Q3 Top-Line Miss Street View, Cuts FY22 Revenue Outlook

Esports Entertainment Group Inc GMBL reported third-quarter FY22 sales growth of 190.8% year-on-year, to $15.7 million, missing the consensus of $16.86 million.
The gross profit rose 203.2% Y/Y to $9.4 million and the profit margin for the quarter expanded by 500 basis points to 60%.
The operating loss for the quarter expanded to $(50.6) million versus a loss of $(5.6) million last year.
The company held $12.4 million in cash and equivalents as of March 31, 2022.
EPS loss for the quarter was $(2.11) versus $(0.73) the previous year.
"As we look ahead, the building blocks for further growth remain firmly in place. However, today's market conditions are different and, as such, our team has adjusted to focus on achieving breakeven as quickly as possible," said CEO Grant Johnson.
Outlook: GMBL lowered its full-year revenue expectations to $55 million - $60 million from the prior $70 million - $75 million range.
Price Action: GMBL shares closed lower by 6.82% at $0.44 on Monday.

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