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Esports is a skill-based, competitive, and organized form of video gaming by professional players, playing individually or as teams. Esports typically takes the form of organized, multiplayer video games that include genres such as real-time strategy, fighting, first-person shooter and multiplayer online battle arena games.
The business is unprofitable at the operating level (-175.49% margin). The thesis depends entirely on whether and when it reaches sustainable profitability.
Revenue declined 60.6% YoY. Margins deteriorated 22.3pp alongside, both lines moving the wrong way.
ROIC dropped from -118.18% to -154.54%, capital efficiency is deteriorating. Negative free cash flow of -$16M. The business is consuming cash, not generating it.
Profitability & Returns
Revenue (TTM)
$10M
▼ -60.6% YoY
Net Income (TTM)
-$25M
▲ +68.4% YoY
Op. Margin
-271.07%
▼ -22.3pp YoY
ROIC
-1220.22%
▼ -36.4pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
-$10M
▲ +25.5% YoY
Op. Cash Flow (TTM)
-$10M
▲ +25.0% YoY
Net Debt
$482K
Cash & Equiv.
$957K
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