Esports Entertainment Group, Inc. (GMBL), an entertainment and iGaming company, has plummeted 31.31% in aftermarket trading session and consequently is trading at $2.04 at the time of the writing. During Tuesday’s mid-day session, the stock receded by 8.62% and closed the day at $2.97. The plunge of GMBL stock could be attributed to the announcement of results by the company.
Q2 2022 Results
On Tuesday, GMBL announced the results for Q2 2022. The quarter ended on 31st December 2021. The net revenue during the quarter stood at $14.5 million, an increase of $12.2 million on a year-over-year basis. The gross profit for the quarter was $8 million, an increase of $7.2 million when compared with Q2 2021. The GAAP net loss for the three months was $34.5 million (or $1.53 per share) compared to $7.3 million (or $0.57 per share) for Q2 2021.
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GMBL Outlook for FY 2022
GMBL also reported the financial outlook for the fiscal year 2022. The company expects that the net revenue would grow in a range of 317% to 347% on a year-over-year basis. That in turn would aid the company in generating net revenue between $70 and $75 million. The growth as demonstrated in guidance is driven by the platform building measures taken by the company.
Management Commentary
The management of GMBL, while commenting on the development said that the results are the epitome of Challenges the Company endured during the quarter. Despite the challenges, the company remains sanguine about the upcoming period. Looking ahead, the company is confident in its ability to realize the growth potential that the entertainment industry has.
What’s Ahead for GMBL?
Looking ahead, the analysts believe that GMBL stock holds several negative signals at this point, and hence, is expected to decline sharply in the next few days. Investors should take careful decisions regarding their investments in GMBL stock.
