- Enthusiast Gaming (EGLX) is releasing its first quarter financial results
- The Toronto-based digital media company, generated $47.2 million in revenue during the quarter, up 57 percent year-over-year
- Gross profits amounted to $13.5 million, a 127-percent- increase over the first quarter of 2021
- Gross margins rose to 28.6 percent, 880 basis points above the 19.8 percent the company achieved in 2021
- Enthusiast Gaming is up 20.25 percent, trading at $2.85 at 12:13 p.m. ET
Enthusiast Gaming (EGLX) is releasing its first quarter financial results.
The Toronto-based digital media company, generated $47.2 million in revenue during the quarter, up 57 percent year-over-year.
Gross profits amounted to $13.5 million, a 127-percent- increase over the first quarter of 2021.
“2022 is off to a very strong start, led by accelerated revenue growth and substantial margin expansion. Q1 2022 gross profit was particularly strong and effectively equal to Q4 2021 gross profit, despite a strong seasonal difference between the two periods,” said Enthusiast CEO Adrian Montgomery.
“Our flywheel model, centred around communities, content, creators, and experiences, continues to drive increasing value. Our team is well positioned to continue delivering rapid top line growth, while increasing gross profit at a significantly faster rate. Further, to be able to accelerate revenue growth in a quarter that is seasonally the slowest is a strong sign for the balance of the year. We are confident these trends will continue as we focus on meeting profitability objectives in the short term.”
The company saw its gross margins rise to 28.6 percent, 880 basis points above the 19.8 percent it achieved in 2021. It attributes the increase to the strong performance of its U.GG League of Legends stats site, as well as recently-acquired Addicting Games platform.
Enthusiast Gaming is up 20.25 percent, trading at $2.85 at 12:13 p.m. ET.