Super League Enterprise, Inc. leader in metaverse experiences

Super League Enterprise, Inc. (Super League), formerly known as Super League Gaming, Inc. describes itself as a “global leader in providing immersive experiences across the world’s largest metaverse gaming platforms.”  More specifically, the company is a fully integrated creator and publisher of games and immersive content experiences on major digital platforms like Roblox, Minecraft, and Fortnite, as well as in Web3 environments like Sandbox and Decentraland. They offer end-to-end solutions for global brands, covering development, distribution, monetisation, and user engagement. Super League Gaming leverages advanced 3D tools and a network of leading developers to deliver innovative experiences in what is a rapidly expanding media industry.

From Nth Games to Super League Gaming

Super League Gaming was originally incorporated as Nth Games on 1 October 2014 under the laws of the State of Delaware, U.S.A. The company changed its name to Super League Gaming, Inc. on 13 July 2015.

Eight years later, on 8 September 2023, Super League Gaming announced another name change to better reflect its future vision of providing a scalable, vertically integrated publishing engine for the immersive web. As a result, its stock trading symbol on Nasdaq was also changed from “SLGG” to “SLE” to more closely align with its new name.

At such time that this announcement was made, the company went on to inform its shareholders that every 20 issued and outstanding shares of the Company’s Common Stock would automatically be converted into one share of Common Stock, with no change to the par value per share.

Following the Reverse Split, the number of outstanding Common Stock shares would effectively be reduced from approximately 71.9 million to around 3.59 million. The company shared its belief that a Reverse Split was necessary to increase the market price per share to better assure that remained compliant with the $1.00 minimum bid price required for continued listing on The Nasdaq Capital Market under Nasdaq Listing Rule 5550(a)(2). The goal is to make investments in the Company more attractive to investors by increasing the trading price of the Company’s Common Stock on such market.

Despite this change Super League Gaming, each shareholder’s ownership percentage and voting power was said to remain largely the same, aside from minor adjustments due to the handling of fractional shares. Fractional shares were not issued; instead, shareholders who were entitled to a fractional share received cash compensation. The rights and privileges of Common Stockholders would also be largely unaffected by the Reverse Split.

Collaborations with global brands Kraft and Chipotle

Super League Gaming collaborated with Kraft Lunchables to engage children through a loyalty and rewards program by creating the Lunchables Playables virtual world, which featured virtual avatars, augmented reality games, and virtual pets. This initiative led to a 6.3% increase in purchase rates, with users logging 10 million hours of engagement, collecting 7.4 billion points, and redeeming 7.3 million Lunchables Pets.

To celebrate Halloween and National Burrito Day, Super League Gaming partnered with Chipotle to achieve record-breaking digital sales and app downloads. They created a Halloween experience featuring a virtual Chipotle restaurant maze, where the first 30,000 players to unlock the secret “Boorito” word received a code for a free burrito, resulting in the highest daily Chipotle app downloads ever. For National Burrito Day, the first 100,000 players who rolled a burrito in the Burrito Builder experience also received a free burrito, contributing to the second-highest mobile sales day in Chipotle’s history. The campaign generated 24 million visits to the Boorito and Burrito Builder experiences, over 4.6 billion PR impressions for the Boorito promotion alone, an average of 14 minutes of player time in Burrito Builder—exceeding the typical time spent in a physical store—and a total of 100 million hours where players wore Chipotle gear in other Roblox games.

Fiscal Q1 | 2024 results

In a letter to shareholders dated 15 May 2024, Super League Gaming reported that for the three months ending March 31, 2024, revenue totalled $4.2 million, an increase of $887,000, or 27%, compared to $3.3 million in the first quarter of 2023. This growth was largely driven by a $1.2 million, or 90%, increase in publishing and content studio revenue, which rose to $2.5 million from $1.3 million in the same quarter of the previous year. This surge was primarily due to a $1.4 million, or 161%, rise in custom game development and immersive experience-related revenues, including projects for Kraft Lunchables, Sketchers, Lego, and Universal Pictures.

Meanwhile, media and advertising revenue declined by $239,000, or 15%, to $1.4 million, down from $1.6 million in the prior year quarter. This decline reflected a $554,000 drop in on-platform media sales, partially offset by a $243,000 increase in off-platform media sales. The cost of revenue increased by $529,000, or 27%, to $2.5 million, consistent with the rise in related revenues. Despite this, the gross margin remained stable at 41% in the first quarter of 2024 and improved by approximately 5% from the fourth quarter of 2023.

GAAP operating expenses for the first quarter of 2024 decreased by $2.3 million, or 26%, to $6.3 million, compared to $8.6 million in the first quarter of 2023. Excluding non-cash stock compensation, intangible asset amortisation, and mark-to-market adjustments, pro forma operating expenses were $5.0 million, down from $6.3 million in the same quarter last year, reflecting a significant 20% reduction due to ongoing cost reduction and optimisation efforts.

Super League Gaming has announced that it will post its second quarter 2024 financial results after market close on Wednesday, 14 August 2024.

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