11.30.2022
Engine Gaming and Media underwent a radical diet to battle its burn rate. The Nasdaq- and Toronto Stock Exchange-listed company reported a $14.5 million net loss for its full fiscal year 2022, which ended August 31, 2022. In comparison to Engine Gaming and Media’s $40.7 million net loss in FY 2021, the company made a step in the right direction with a strategic realignment. “We commenced a process to explore and evaluate strategic options to enhance shareholder value,” explained Executive Chairman Tom Rogers. “We continue to narrow our focus, and we are confident that our efforts will result in a significant opportunity for the company to deliver on our stated goals in initiating this process." As a result, Engine Gaming and Media dropped several of its subsidiaries over the last 24 months. In November 2020, Engine Gaming and Media’s Motorsports Group (consisting of IDEAS+CARS, The Race media, WTF1, Driver DataDB, and Lets Go Racing) was sold to third-party UK investment group Ideas + Cars Holdings for $1.76 million. In April, Engine Gaming and Media’s racing game developer Eden Games was sold for approximately $15 million. In June, Engine Gaming and Media disposed of its gaming events and entertainment subsidiary UMG Media for $100. Additionally, Engine Gaming and Media discontinued its gambling subsidiary Winview during the last quarter. Three wholly owned subsidiaries — Frankly (Canada), Stream Hatchet (Spain), and SideQik (USA) – form the core of Engine Gaming and Media’s optimized business strategy. Operational highlights of those subsidiaries in FY 2022, included Stream Hatchet signing contract extensions with Microsoft, Activision, and Ubisoft while expanding its list of clients with the addition of Monumental Sports, PUBG, FIFA, Logitech, Nvidia, and Octagon; while SideQik added FoodPanda, Blizzard, Fanatics, and BenQ as customers and signed renewals and extensions with existing customers including Riot Games, Nike, and Universal Music Group. At the end of its fiscal year, Engine Gaming and Media had a cash position of $8.6 million.

Engine Gaming and Media slims down operations and losses

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Engine Gaming and Media (NASDAQ: GAME ) (TSXV: GAME:CA ) unit Sideqik has partnered with the affiliate marketing platforms Awin and ShareASale. Awin and ShareASale's integration with the influencer marketing platform allows the two brands to identify and manage influencer partnerships, deploy spend at scale and report on the return - a critical element for smaller businesses with tighter budgets. GAME shares were trading -1.63% pre-market.

Engine Gaming and Media unit partners with Awin, ShareASale

Integration with Premier Creator Marketing Platform Gives Brands Quantifiable Results
Awin and ShareASale, the fastest-growing affiliate marketing platforms in North America, today announced an integration with Sideqik, the end-to-end influencer marketing platform that enables brands to build a scalable, repeatable and predictable revenue engine through engaging creator partnerships. “Awin and ShareASale’s integration with Sideqik allows our brands to identify and manage creator partnerships, deploy spend at scale and report on the return – a critical element for smaller businesses with tighter budgets – all through Sideqik’s robust tool set.” — Joris Cretien, Awin
Through Sideqik’s database of more than 60 million creators across the 10 most popular social networks, the Awin Group’s 21,200 retailers can now better identify relevant, brand-safe creators, streamline relationship management and grow their sales and customer base, all while utilizing Sideqik’s robust, AI-powered database to provide actionable insights and real-time reporting throughout the entire influencer marketing lifecycle. “Across the industry, there is a growing demand from consumer brands to execute more profitable, better measured influencer marketing campaigns,” said Joris Cretien, Partner Growth Director at Awin. “Awin and ShareASale’s integration with Sideqik allows our brands to identify and manage creator partnerships, deploy spend at scale and report on the return – a critical element for smaller businesses with tighter budgets – all through Sideqik’s robust tool set.”
Through Sideqik’s partnership with the Awin Group, brands of all sizes can:
Discover creators easily: Find influencers that match a brand’s campaign style and budget. Sideqik’s unique algorithm can also match brands with creators similar to those with whom they currently or aspire to be working. Streamline relationships: With Sideqik, everything retailers need to communicate with influencers is in one place – send direct messages, emails and creative within the Sideqik platform. Measure engagement: Sideqik’s AI-powered insights provide quantifiable results from creator initiatives to prove business impact. Goals tracked include coupon redemptions, earned media value, website conversions, ROI and more. “Influencer marketing is becoming a mainstay of marketing strategy for companies of all sizes,” said Jeremy Haile, CEO of Sideqik. “Our end-to-end influencer platform and AI-powered insights take the guessing out of creator campaigns and allow brands to execute seamlessly at scale. We are excited to partner with Awin and ShareASale to streamline campaigns and drive meaningful revenue for brands.”

Awin and ShareASale Amplify Influencer Marketing Activity for Brands with Sideqik Partnership

07/15/2022 | 04:44pm EDT
Message :
● Fiscal Q3 2022 Revenues Increased 16% YoY to $9.2 million
● For the Nine-Month Period, Revenues Increased 36% to $30.5 million
● Continued Growth in SaaS Businesses of 22% YoY to $2.0 million
● Significant Improvement in Net Income of $1.6 million to $8.8 million YoY
NEW YORK, NY / ACCESSWIRE / July 14, 2022 - Engine Gaming and Media, Inc. ("Engine" or the "Company") (NASDAQ:GAME) (TSX-V:GAME), a data-driven, gaming, media and influencer marketing platform company, today announced results for its fiscal third quarter 2022 ended May 31, 2022. All amounts are stated in U.S. dollars unless otherwise indicated. FY Q3 2022 Financial Highlights:
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Total revenue increased 16% to $9.2 million in the fiscal third quarter of 2022, compared to $8.0 million in the same year-ago quarter. For the nine-month period, revenue increased 36% to $30.5 million
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Growth of 22% year-over-year to $2.0 million in the Company's SaaS businesses and 30% for the nine-month period ended May 31, 2022, compared to the same period in 2021. ●
Net Income improved significantly to $8.8 million in the fiscal third quarter of 2022, compared to net income of $1.6 million in the same year-ago quarter. For the nine-month period net income of $735,610 compared to a net loss of $25.8 million in the year ago comparable period. ●
Fortified balance sheet on April 7, 2022, by completing the strategic sale of its subsidiary, Eden Games, for net proceeds of $15.3 million
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Subsequent to quarter end, Company completed the divesture of its UMG Gaming subsidiary, along with a series of actions being taken expected to eliminate approximately $16.0 million of annualized cash operating expenses by the end of the calendar year
Management Commentary
"The third quarter was highlighted by continued top-line growth in our SaaS businesses generating $2.0 million of revenue, compared to $1.6 million in the same period a year ago as we continue to capture growth across our influencer marketing and data platforms, and as we continue to attract new clients and partnerships. These platforms are high growth opportunities that generate strong margins and increased visibility for the Company," commented Lou Schwartz, Chief Executive Officer of Engine. "We continue to aggressively sharpen the focus of the business, evident in the strategic sale of Eden Games, which provided net proceeds of $15.3 million. In addition, subsequent to quarter end, we divested our B2C peer sports gaming business, UMG. Our efforts remain focused on execution as we make significant strides towards our goal of achieving run rate breakeven in 2023." Tom Rogers, Executive Chairman of the Company, added, "The work we have done to position ourselves to achieve cash flow breakeven will serve us well within the difficult macroeconomic environment that most likely lies ahead. Importantly, it is becoming incredibly clear that our core businesses are situated to benefit from numerous macro sector growth trends - bridging gaps within the digital advertising and marketing landscapes, particularly within the rapidly growing social influencer space. Ultimately, as we execute our strategy all constituencies of Engine, we believe will be rewarded with significant value creation." FY Q3 2022 and Year-To-Date Financial Results
Total revenue in the fiscal third quarter of 2022 increased 16% to $9.2 million, compared to $8.0 million in the same year-ago quarter. The increase was driven by a 22% increase in Software-as-a-Service ("Saas") revenue to $2.0 million from $1.6 million in the year ago comparable quarter and Advertising revenue of $7.2 million, compared to $6.4 million in the comparable year ago period. For the nine months ended May 31, 2022, total revenue increased 36% to $30.5 million from $22.5 million in the same year-ago period. Expenses in the fiscal third quarter of 2022 were $14.9 million, an improvement of approximately $0.9 million, when compared to $15.8 million on a sequential basis. The Company's run rate expense reduction at the end of the current calendar year going forward is expected to be substantially improved by virtue of approximately $16.0 million of cash expenses being eliminated relative to a year ago on a go forward basis. As the reductions are still in process, subsequent quarters will see the result of these planned cost reductions. Net Income in the fiscal third quarter improved significantly to $8.8 million, compared to a net income of $1.6 million, in the same year-ago quarter. For the nine months ended May 31, 2022, net income improved significantly to $0.7 million, compared to a net loss of $25.8 million, in the same year-ago period, an improvement of $26.6 million. These improvements in net income above were largely driven by the gain on the disposal of Eden Games recognized in the fiscal third quarter of 2022 of $15.1 million. Adjusted EBITDA improved on a sequential bases to $(5.2) million in the fiscal third quarter of 2022, compared to $(6.1) million in fiscal second quarter of 2022, an improvement of approximately $1.0 million. Due to the continued elimination of cash operating expenses related to B2C businesses and other cost measures, Adjusted EBITDA is expected to continue to substantially improve. At May 31, 2022, the Company had cash of $13.7 million. Recent Operational Highlights:
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Engine subsequent to quarter end, divested its UMG Gaming subsidiary. This transaction, along with other actions being taken, is expected to further reduce cash expenditure by approximately $16 million on a year over year basis. ●
Stream Hatchet signed new commercial agreements with AAA game publishers including Epic Games, Activision, Electronic Arts, and Take-Two; esports teams such as Faze Clan; and major endemic and non-endemic gaming brands Nestle, NVIDIA, and Benefit Cosmetics. The most recent Brands in Gaming and Esports Report is accessible here. ●
Sideqik released major updates to its creator relationship management and influencer marketing platform. Sideqik also signed commercial extensions and added Nike, Universal Music Group, Turtle Beach, Cartoon Network, and subsequent to quarter end, Fanatics, to its vast and growing list of blue-chip companies leveraging their suite of influencer marketing and social commerce technology. ●
Frankly Media continues to optimize its advertising solutions technology, now working with over 50 demand partners to monetize video (Live, VOD, and CTV), display, and mobile in-app including theTradeDesk, Amazon, and Criteo. Frankly increased both CPMs and RPMs by 27% and 13% respectively during the third fiscal quarter compared to the same period a year ago. FY Q3 2022 Earnings Conference Call
Management will host an investor conference call at 4:30 p.m. EDT (1:30 p.m. PDT) today, Thursday, July 14, 2022, to discuss Engine Gaming and Media, Inc.'s fiscal third quarter 2022 financial results, provide a corporate update, and conclude with a Q&A from participants. To participate, please use the following information:
Date:
GAME Conference Call
Please dial in at least 10 minutes before the start of the call to ensure timely participation. Non-IFRS Measures
The Company reports earnings before interest, taxes, depreciation, and amortization ("EBITDA") and Adjusted EBITDA, which are not financial measures calculated and presented in accordance with International Financial Reporting Standards ("IFRS") and therefore may not be comparable to similar measures presented by other issuers. EBITDA and Adjusted EBITDA should not be considered in isolation or as a substitute to net income (loss) or any other financial measures of performance or liquidity calculated and presented in accordance with IFRS. The Company defines Adjusted EBITDA as EBITDA, adjusted to exclude certain non-cash charges and other items that we do not believe are reflective of our ongoing operating results. The Company utilizes Adjusted EBITDA internally for purposes of forecasting, determining compensation, and assessing the performance of our business, therefore, we believe this measure provides useful supplemental information that may assist investors in assessing an investment in the Company. The following unaudited table presents the reconciliation of net loss to Adjusted EBITDA for the three and nine months ended May 31, 2022 and 2021, respectively. For the three months ended
For the nine months ended
Note
Non-cash expense (income)
This earnings release should be read in conjunction with the Company's Interim Condensed Consolidated Financial Statements and accompanying notes that will be made available on Engine's investor relations site on July 14, 2022 which can be found at https://ir.enginemediainc.com/ . About Engine Gaming and Media, Inc.
Engine Gaming and Media, Inc. (NASDAQ:GAME) (TSX-V:GAME) provides premium social sports and esports gaming experiences, as well as unparalleled data analytics, marketing, advertising, and intellectual property to support its owned and operated direct-to-consumer properties, while also providing these services to enable its clients and partners. The company's subsidiaries include Stream Hatchet, the global leader in gaming video distribution analytics; Sideqik, a social influencer marketing discovery, analytics, and activation platform; WinView Games, a social predictive play-along gaming platform for viewers to play while watching live events; and Frankly Media, a digital publishing platform used to create, distribute and monetize content across all digital channels. Engine generates revenue through a combination of direct-to-consumer fees, streaming technology and data SaaS-based offerings, and programmatic advertising. For more information, please visit www.enginegaming.com. Cautionary Statement on Forward-Looking Information
This news release contains forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Engine to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "estimates", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. In respect of the forward-looking information contained herein, Engine has provided such statements and information in reliance on certain assumptions that management believed to be reasonable at the time. Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements stated herein to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Actual results could differ materially from those currently anticipated due to a number of factors and risks. Accordingly, readers should not place undue reliance on forward-looking information contained in this news release. The forward-looking statements contained in this news release are made as of the date of this release and, accordingly, are subject to change after such date. Engine does not assume any obligation to update or revise any forward-looking statements, whether written or oral, that may be made from time to time by us or on our behalf, except as required by applicable law. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Investor Relations Contact:

Engine Gaming and Media : & Media, Inc. Reports Fiscal Third Quarter 2022 Financial Results - Form 6-K

PARIS, FRANCE - OCTOBER 29: In this photo illustration, the Facebook logo is displayed on the screen ... [+] of an iPhone in front of a Meta logo on October 29, 2021 in Paris, France. On October 28, during the Facebook Connect virtual conference, Mark Zuckerberg announced the name change of Facebook, believing that the term Facebook was too closely linked to that of the platform of the same name, launched in 2004. It is now official, the Facebook company changes its name and becomes Meta. (Photo illustration by Chesnot/Getty Images)
Getty Images
A new study reveals that influencers have great sway on consumers, and brands using them to share messages about their products can keep their audience’s attention. They win with customer purchases. The power of this influence is best seen across many of the of social platforms that consumers spend hours reviewing every day. Social platforms were originally created as a way to connect and keep up with friends, but in recent years the role has shifted significantly. According to a study by Sideqik, 83% of Facebook users say that social connection still remains their primary use for the platform. However, less than 1/3 of the users across five other major platforms say the same. Therefore, it is not surprising to learn that the percentage of people actually known to a site user in real life changes dramatically from platform to platform. Here’s what the study shows among platform users:
·      Facebook (Meta) has 88% of friends and followers,
·      Instagram has 49%,
·      Twitch has 6%. It shows the strength of Facebook as a true platform to share personal, social connections. In contrast, activity on the other platforms is less about following someone the user actually knows; less than half of the people consumers follow on the other social media platforms are known to them in real life. Given the recent announcement that Facebook shares plunged -20% on a poor earnings report suggests that the power of a social media platform (at least measured in financial terms) has changed. This reflects a major shift in consumer behavior. We see a change in the purpose of these social platforms that is creating new ways for consumers to absorb and share information. More importantly, we can see opportunity it creates for influencers who want to share their thoughts and feelings with a broader audience of like-minded followers. It redefines who the influencers are, and it may redefine their social circle. In fact, Sideqik claims that 50% of millennials feel that they know the influencers they follow on social media better than their friends. As a result, 7 out of 10 consumers trust influencers’ recommendations just as much as the opinion of real-world friends. The impact influencers can have should not be ignored. In the past year, 72% say their trust in influencers has increased, while 66% say purchase decisions are often driven by influencers and 64% say that influencers even help them discover new brands. All of this is very relevant to retailers. The study makes it very clear why print media – newspapers in particular – see a decline in readership and are no longer the medium of first choice to introduce merchandise and to sell well-known brands. The merchandise has to be authentic, and customers don’t want the media to undermine that in any way. Print often feels impersonal and disconnected. Sideqik data also supports this; its findings placed great value on authenticity, stating that for 94% of consumers it is a key reason they follow influencers. POSTSCRIPT: The Sideqik report is an excellent summary of the changes that have occurred that reshape customer/vendor relationships. It shows how customers read less but listen more and how brands can prosper by switching to the right platform. There is a quick return when the right influencers are used. Some of Sideqik clients include Coca-Cola, Deathwish Coffee, Logitech, TV Guide, and Universal Music Group.

Influencer Impact On Consumer’s Increasing – Facebook Has Less Power

ShareASale is an affiliate marketing network providing pay-per-sale, pay-per-lead, and pay-per-click programs for webmasters.

ShareASale

Awin is a global performance advertising network that supports companies from all industries and of all sizes in the effective marketing of products and services on the internet. With Awin's transaction-linked business model, advertisers only pay for the measurable success of their online advertising activities. With the Awin marketplace, Awin connects advertisers and their agencies with publishers, thereby providing them with opportunities for the monetization of their traffic.

Awin

Through Sideqik 's partnership with the Awin , brands of all sizes can :

Partnerize provides SaaS solutions for digital partner marketing, enabling brands to directly connect with marketing partners to increase customer acquisition and drive revenue from online marketing channels. The company supports clients' performance marketing strategies across core sectors including finance, travel, retail and telecommunications.

Partnerize

impact.com accelerates enterprise growth by scaling discovery, recruitment, onboarding, engagement, and optimization of all types of partnerships. Its CloudTM automates partnership discovery, recruitment, onboarding, engagement, and optimization for the full partnership lifecycle, confident decision making, and optimization through measurement & attribution and protection from fraud. The company was formerly known as Impact Radius and changed its name to impact.com. The company was founded in 2008 and is based in Santa Barbara, California.

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These companies offer tech-enabled solutions to connect influencers with advertisers, facilitate the creation and management of influencer campaigns, as well as provide tools and services to the influencer community.

Influencer & Content Creator Tech

Companies that are a subset of e-commerce that introduce social elements into the online purchasing experience. This includes peer-to-peer selling, group buying, influencer networks (including influencer marketing agencies), and technology that enables social selling. 

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Sideqik develops a data-driven influencer marketing platform. The company's platform aims to help grow customers and revenue by working with partners. On June 16, 2021, Sideqik was acquired by Engine Media Holdings. The terms of the transaction were not disclosed.

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