Engine Gaming and Media, Inc. (NASDAQ:GAME) Q2 2022 Earnings Conference Call April 14, 2022 5:00 PM ET

Company Participants

Lou Schwartz - Chief Executive Officer

Tom Rogers - Executive Chairman

Conference Call Participants

Jason Tilchen - Canaccord Genuity

Michael Kupinski - Noble Capital Markets

Operator

Greetings and welcome to the Engine Gaming and Media Second Quarter Conference Call. [Operator Instructions] 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 second quarter for its fiscal year 2022 ended February 28, 2022 available on SEDAR and EDGAR. Important qualifications regarding forward-looking statements are also contained in Engine’s earnings release distributed early 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, April 14, 2022. And 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 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 second quarter earnings call. To begin, total revenue for the second quarter of fiscal 2022 increased 20.3% to $9.3 million from $7.7 million in the same period a year ago and down 24% from fiscal 2022 first quarter. $3 million of the quarter-over-quarter revenue decline is directly tied to the seasonality in our advertising business.

As we have guided in the past, we typically see the highest yield in peak revenue during the last few months of the calendar year and the lowest during the first few months of the calendar year when brands complete their annual planning and reset their budgets. It’s also important to note that our second quarter results exclude any revenue contribution from Eden Games, our gaming development company that was recently sold and is currently reflected in our financial statements as a discontinued operation in both current and historical periods for accurate representation.