Super League Gaming (NASDAQ: SLGG) is an Esports, metaverse and creator economy platform. It’s focused on merging gaming and pop culture via a selection of tools and offerings.
SLGG stock went public in March 2019. The SLGG share price has since lost 75% of its value. It enjoyed a sensational price rise between January and March last year but again gave back all its gains. What does the future look like for this metaverse primed platform?
What is Super League Gaming?
Super League Gaming offers theatre gaming, cloud, and team gaming services. The company was founded by John C. Miller, David Steigelfest, and Brett Morris on October 1, 2014, and is headquartered in Santa Monica, California.
Is SLGG a good stock to buy now?
Company revenues rose in 2020 and its user base also grew. Unfortunately, this came with a rise in costs. To maintain the status quo the company raised funds via share placings. This wasn’t such good news for shareholders as it diluted the stock.
SLGG’s preliminary Q4 and full-year 2021 revenue results were upbeat. The company is expected to exceed $6m in revenue, marking a Y/Y rise of more than 650%. Its success appears to come from a push into collaborative gaming as it projects a reach of 75 million monthly metaverse gamers.
Ann Hand, CEO of Super League Gaming said:
"Our record-level revenue and reach are evidence that players and developers in open gaming platforms – the gaming metaverse, as we call it – are attracted to our games and our creation and monetization tools, and that brands trust us to help them navigate and connect in a high-impact, safe and brand-enhancing way with Generation Z and Millennials. Gaming isn’t a new destination – it is where they already are."
SLGG Stock: $6 Price Target from HC Wainwright
After SLGG reported its preliminary Q4 and full-year 2021 results, analyst Scott Buck at HC Wainwright reiterated a Buy rating on SLGG stock with a $6 share price target.
Financial Metrics Today
Market Cap: $78m
Fully Diluted Shares Outstanding: 36m
P/BV: 0.8
P/S: 12.5
Preliminary Q4 results
Q4 Revenue: $6m to $6.1m ($0.8m in Q420)
Preliminary FY21 results
Revenue: $11.5m to $11.6m ($2.1m in 2020)
Ann Hand, CEO of Super League Gaming said:
“Our preliminary financial results reflect our ever-expanding, premium ad inventory and increasing sales force effectiveness as we exited 2021...We believe that we are well-positioned to sustain this momentum in 2022 as we further develop our scalable and immersive in-game ad platform and build our footprint in the growing metaverse.”
Super League expects to release its comprehensive fourth quarter and full-year 2021 results in early March.