Engine Gaming and Media, Inc. (NASDAQ:GAME) Q3 2022 Results Conference Call July 14, 2022 4:30 PM ET

CompanyParticipants

Lou Schwartz - Chief Executive Officer

Tom Rogers - Executive Chairman

Conference CallParticipants

Jason Tilchen - Canaccord

Michael Kupinski - Noble Capital Markets

Operator

Greetings, and welcome to the Engine Gaming and Media Third Quarter Conference Call. Please note this conference is being recorded.

Before we begin, I would like to caution listeners that comments made by management during this call may include forward-looking statements within the meaning of applicable securities laws. These statements involve material risks and uncertainties and actual results could differ from those projected in any forward-looking statement due to numerous factors.

For a description of these risks and uncertainties, please see Engine’s financial statements and MD&A for its third quarter, its fiscal year 2022 ended May 31, 2022 available on SEDAR and EDGAR. Important qualifications regarding forward-looking statements are also contained in Engine’s earnings release distributed earlier this afternoon and also available on SEDAR and in EDGAR.

Furthermore, the content of this conference call contains time-sensitive information accurate only as of today, July 14, 2022. Engine undertakes no obligation to revise or otherwise update any statements to reflect events or circumstances after the date of this call.

I would now like to turn the conference over to Mr. Lou Schwartz, Chief Executive Officer; and Mr. Tom Rogers, Executive Chairman of Engine Gaming and Media. Please go ahead.

Lou Schwartz

Thank you, operator, and thanks to everyone for joining us on our fiscal third quarter earnings call. To begin, total revenue for the third quarter of fiscal 2022 increased 15% to $9.2 million from $8 million in the same period a year ago. This takes into account the disposition of Eden Games.

The two key revenue streams of our business are SaaS also known as Software-as-a-Service and advertising. SaaS revenue for the third quarter of fiscal 2022 was $2 million, an increase of 22% from $1.6 million in the third quarter of fiscal 2021, and 5% higher sequentially when compared to $1.9 million in the second fiscal quarter of 2022. During the quarter, our SaaS business segment experienced double digit percentage growth in the number of clients year-over-year.

Secondly, advertising revenue for the third quarter of fiscal 2022 was $7.2 million, increasing 13% from the year ago period of $6.4 million and up 2% quarter-over-quarter from fiscal 2022 second quarter revenues of $7.1 million. The second quarter is usually a seasonally low advertising quarter.