Allied Gaming Reports 21% Increase in Revenue for 2023, Cuts Costs

The fast-growing esports entertainment and gaming company with a global presence, Allied Gaming & Entertainment (AGAE), released its latest financial update, highlighting key details for its performance during the fourth quarter and full year 2023. The company reported strong growth in revenue, complemented by a decrease in costs and expenses.

In total, AGAE’s revenue for 2023 hit $7.7 million. A year-over-year comparison showed that this result represented a 21% increase. The leading gaming and entertainment company confirmed that the jump in revenue comes after an increase in its sponsorship revenue related to its naming rights agreement for HyperX Arena Las Vegas, its flagship esports facility. Further factors that positively impacted on the company’s revenue included a strategic investment in Z-Tech dating back to October.

AGAE’s latest financial update revealed that its total costs and expenses in 2023 halted at $14.3 million. This result, compared to the 2022 figure, showed a decrease of 21%. The company explained: “The net decrease in costs and expenses of $3.9 million is primarily due to a $3.2 million, or 30% reduction in general and administrative expenses, consisting principally of a $1.5 million Employee Retention Credit recognized in 2023, stock-based compensation of $0.9 million, payroll and payroll-related costs of $0.8 million, and insurance and rent expenses of $0.2 million each.”

Despite the decrease in the overall costs and expenses, AGAE said that it incurred a slight uptick in its professional and legal fees. Those expenses amounted to $0.4 million.

On the other hand, adjusted EBITDA for 2023 was a loss of $4.6 million. In contrast, for 2022, adjusted EBITDA was a loss of $8.6 million. AGAE’s net loss in 2023 was $3.6 million, compared to a net loss for $2022 of $10.8 million.

The Company Retains a Positive Momentum Gained in 2023

Yinghua Chen, AGAE’s CEO, explained that 2023 marked a successful year for the company as it was able to make significant progress on its strategic objectives. Moreover, he added that the company entered 2024 with a positive momentum. “Allied Esports International, Allied Mobile Entertainment, and Allied Experiential Entertainment are all poised for growth as we execute on our strategic objectives this year,” explained Chen.

When it comes to the fourth quarter of 2023, the results did not disappoint. Total revenues reported by the company for Q4 marked a 70% year-over-year increase to $2.1 million. The gaming and entertainment firm said that the growth in revenue was impacted positively by “an increase in HyperX sponsorship revenues and two months of Z-Tech operations.”

While in 2023 there was an overall decrease in total costs and expenses, in Q4, the company saw a slight uptick. Expenses and costs reported for the fourth quarter hit $4.0 million, a result that showed a 2% increase when compared to the corresponding period in 2022.