RE:Q2 2020 Better than expectedTheriskyone wrote: Mixed reviews on the board but I was impressed with the results
Positives: - No layoffs only further show how strong of a balance sheet we have. Execs restructuring compensation to forgo base salary for equity shows confidence in future and only incentivizes them.
- Strong quarter over quarter growth in handle 13.8M from 8.8M (58%), much exceeded my expectations. This in my opinion as with a few others on the board is the most important sports betting figure to follow.
- Hold improved to 3.2% from 2.75%. This is the second most important figure in my opinion which needs to continue to grow until the long run average of about 7.5%. This is the true measure to evaluate how we are pricing odds and managing risk
- Lots of other positive information on the audience metrics and e-sports front
Negatives: - Net gaming revenue still negative and didn't improve from last quarter. I'm not too concerned with this number yet because it's the cost of gaining market share. Levy did say in the Q1 2020 call that he expects negative NGR to continue for the next few quarters.
- I didn't specifically hear anything on the roadmap that will be worked on during this downtime. I was hoping to hear about future integrations between apps and I-gaming to add an additional stream of revenue. I will email James about the latter.
- The most negative figure was the 8.6M EBITDA loss in Q2. Almost 2x previous quarter and 4x year over year. The launch and expansion of gaming continues to be reasoning for this which can be justified but we cannot afford to continue to have increasingly negative losses. I will personally reassess this in Q4.
FANTASTIC POST MAN!!!! Exactly how I wanted to word it and lay it out but I rushed a couple of my posts as I had 2 conference calls post market and one of my major investments HALTED so nervous AF at the moment til markets open tomorrow.
Applaud the post and efforts... you hit must of my points bang on- both positive and negative.
Tomorrow we will see the markets reaction and whether this is "perceived" as BETTER THAN EXPECTED or not!