Super League Gaming: Stock Market vs Real-life Success
Esports is a billion-dollar industry, but not everyone who participates can turn a profit – sadly that is also true for Super League Gaming. The company holds events for amateur gamers, and although they’ve made over a $1 million in revenue last year, they didn’t manage to turn a profit – not even close. Off-setting the million in revenue, the company made $30.6 million in losses.
A Fledgling in the Industry
The $30.6 million were the overall net loss – the operating loss was $14.5 million. Despite this, the relatively young company reported progress over the last year – in fact, according to the CEO, Ann Hand, their progress exceeded expectations.
“I truly believe the transparency and positive sense of urgency that comes from being a public company created an added layer of focus, and the results are evident in our rapidly growing audience, player base, global venue partner footprint and game title portfolio,” said Hand. “Our platform connects the deeply engaged, passionate audience of competitive gamers to each other and to their hometown venues to not just compete, but share their content around the love of the game establishing Super League as a software and media backbone for bringing amateur, local esports to scale.”
While their mission to bring esports competitions to amateur players is admirable, it hasn’t proven to be particularly financially beneficial, especially for investors. The NASDAQ based SLGG stock has dropped over 68% over the last year. That’s a huge decrease, with very little positive to offset it.
Very little, but not none – over the last three months, the share price has seen a fairly drastic increase of 17%. Super League Gaming is far from dead, even if 2019 hasn’t been a good year – while the business wasn’t profitable, that isn’t the end yet.
In fact, for many investors, it may not even be that big of a deal. The company’s share prices were low, but a more important indicator is Super League Gaming’s revenue growth, and that’s where the company really shone – they achieved over 60% in revenue growth. That’s a solid result, and usually, this metric is a good way to forecast future developments.
Super League Gaming seems to be headed in the right direction there – even if their stock remains volatile. On the operations side of things, SLG is doing great – their events, often hosted at movie theatres and similar small locations are an ideal way to bring together players for small amateur tournaments. It even serves as a feeder system for larger competitions, where getting a little practice can benefit players later in their career.
Super League Gaming: The Money
At the moment, in addition to investors, the largest sources of income are sponsorship and monetization of the audience. The company generated 120 million views in 2019 – up from only 2 million a year before that.
They feature 20 games in their tournaments – up from the initial six. Their 500 venues are more than double what they started with, not to speak of the million registered users. All in all, SLG is performing well in the real world, but not so much on the stock market.