Q: For those of us who decided to hold our EGLX could you comment on Q1? The new CEO sounds pretty excited about the "transformation" and the future. What is your take here going forward?
5i Research Answer:
EGLX lost $8.7M, or 6c per share, better than the loss of $12.2M or 8c per share last year. Revenue fell 9.1% to $42.9M. Subscription revenue rose 19%. Revenue was 4% short of estimates but the loss was 18% better than expected. Cash flow was -$2.6M and this still needs to be improved. Estimates call for another loss in 2023 and 2024. The CEO is confident, but it is hard for us to be too exited as long as sales decline and cash flow is negative. It remains a 'show me' story.