East Side Games has released its financial report for Q2 2022, reflecting on a positive first half of the year.
The company earned $23.2 million in revenue for the quarter – a year-on-year increase of 32 per cent from $17.6 million. Please note, the original figures were presented in CAD and, outside of quotes, we have converted these figures to USD.
For the first half of 2022, the company saw revenue of $51.1 million, a 43 per cent year-on-year increase. This indicates a slight slowdown in revenue growth, in line with the normalisation of the market following the easing of pandemic restrictions.
Cash for the company increased slightly over the six-month period, sitting at $7.3 million on June 30, compared to $7.2 million on December 31, 2021.
The company achieved its 2022 earnout milestone in the first quarter of 2022, which was paid as $10 million in cash and a further $10 million in shares, as per the share purchase agreement. However, the 2023 earnout milestone of $20 million was reversed in Q2, despite being accrued, due to the company’s uncertainty in achieving the $150 million revenue target.
Everything on track
On August 11, the company announced its intention to buy back up to 4,076,819 shares.
The company saw strong results with its range of tie-in games based on existing intellectual properties, such as The Office: Somehow We Manage, It’s Always Sunny: The Gang Goes Mobile, and RuPaul’s Drag Race Superstar.
East Side Games Group CEO Jason Bailey said, of the quarter, "Q2 was a solid quarter with 32% growth over the prior year. Total revenue for 2022 to date was $65.3M, up 43% year over year,” adding that “Excluding one time revenue items in the Q1 quarter, Q2 decreased approximately 15% from Q1 of this year, in line with industry trends. RuPaul's Drag Race Superstar, which launched on October 25, 2021 and 'The Office: Somehow We Manage', which launched in late January of this year in partnership with Universal Games and Digital Platforms, continue to perform."
We listed East Side Games as one of the top 50 mobile game makers of 2020. Although the company missed out on a spot in our 2021 list, do keep your eyes peeled for our 2022 list in the coming weeks.