Allied Gaming & Entertainment Inc. Q2 FY2021 earnings call

• Leadership transition: Claire Wu became CEO, President, and General Counsel about five weeks ago, with experience in cross-border transactions, securities regulations, etc.
• Operating highlights: Esports business showed 65% quarter-over-quarter revenue growth due to recovery of in-person events and early revenue from Multiplatform Content; launched AE Studios for original content development; completed sale of WPT for $105 million, improving liquidity; saw recovery in in-person events with 81 events in Q2, 137% increase quarter-over-quarter; third-party events increased nearly 15-fold due to partnership with Trovo; AE Studios produced 24 Expo series for Twitch; content library with over 600 hours of Esports programming is live on 7 OTT streaming platforms via MuxIP deal.

Total revenues for the second quarter of 2021 increased 32.9% to $0.8 million compared to the second quarter of 2020. In-person revenues for the second quarter increased 8.1% to $0.7 million compared to $0.6 million in the second quarter of 2020. The Multiplatform Content pillar generated $0.2 million in revenues for the second quarter. In-person revenues were impacted by a lack of in-person activation and truck events in Europe due to COVID-19, but were offset by increased events at the HyperX Esports Arena Las Vegas. The Multiplatform Content pillar's revenue was driven by the partnership with Trovo.

• Plan to explore M&A opportunities including online entertainment, real money gaming, and other gaming sectors using cash from WPT sale; no specific timeframe or deals identified yet.
• Expect cash burn to be around $800,000 to $1 million a month short-term, with focus on growing revenues and improving operational efficiencies to reduce burn over time.

Q: Can you provide more detail on the M&A environment and how you're prioritizing using the cash, including ideal target description?

A: With $100 million cash from WPT deal, they intend to explore M&A in online entertainment, real money gaming, and other gaming sectors; not limited to specific industry or location; have broad mandate for M&A to maximize shareholder value.

Q: What are your expectations for cash burn and OpEx modeling for the rest of the year?

A: Historically, cash burn has been around $800,000 to $1 million a month; focusing on growing revenues and identifying operational efficiencies to reduce burn over time