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B2Digital, Inc. (BTDG)·Q1 2022 Earnings Summary

Executive Summary

  • Calendar Q1 2022 revenue was $872k, up 92% year over year; gyms drove mix with $605k (+129% YoY) and live events $266k (+40% YoY) .
  • The quarter missed B2’s own February projection (~$1.1M total; live ~$310k; gyms ~$700k), with actuals lower across categories; management nevertheless highlighted an annualized pace “for more than $3.5M” for CY2022 .
  • Strategic highlights: first metaverse event and initial NFT wearables sales (more than 50 avatars wearing the B2 Fighter skin; NFTs priced at 6 MANA ≈ $15), plus expanded distribution via Apple TV and Amazon Fire TV .
  • Operational footprint continued to expand (licensed in 20 states; 50 fights planned in the next 12 months; five ONE MORE Gym locations with a plan to add 15 new gyms over 30 months), a potential catalyst for topline growth .

What Went Well and What Went Wrong

What Went Well

  • Gyms led growth: Training Facilities revenue rose 129% YoY to $605k; Live Events grew 40% YoY to $266k; total revenue +92% YoY to $872k .
  • Metaverse debut exceeded expectations and set a record for total revenue in a new city (Dothan, AL); more than 50 avatars wore the company’s NFT wearable at the virtual event .
  • “2022 has started off with a bang…licensed in 20 states…50 fights planned…aggressive plan of adding 15 new gym locations over the next 30 months,” said CEO Greg P. Bell, underscoring momentum and footprint expansion .

What Went Wrong

  • Miss vs internal projections: February guidance (~$1.1M total; live ~$310k; gyms ~$700k) was not met (actual $872k; live $266k; gyms $605k) .
  • Profitability metrics were not disclosed in the Q1 press release; prior quarter’s 10-Q shows net loss and financing burden (Q3 FY2022 loss of $2.693M; convertible notes and derivative liabilities) raising investor concerns about path to sustained profitability .
  • Going concern language and reliance on external financing persisted in recent filings, signaling elevated execution and financing risk despite topline growth .

Financial Results

MetricQ2 FY2022 (Quarter ended Sep 30, 2021)Q3 FY2022 (Quarter ended Dec 31, 2021)Q1 2022 (Three months ended Mar 31, 2022)
Total Revenue ($USD)$660k $612,632 $872k
Live Event Revenue ($USD)N/A$263,782 $266k
Training Facilities Revenue ($USD)N/A$348,850 $605k
EPS ($USD)N/A$0.00 (basic/diluted) N/A
Gross Profit ($USD)N/A$224,369 N/A
YoY Growth (%)N/AN/ATotal +92%; Live +40%; Gyms +129%

Segment breakdown (Q1 2022):

Segment Revenue ($USD)Q1 2022
Live Events$266k
Training Facilities$605k
Total$872k

KPIs:

KPIQ1 2022Notes
Licensed states for live MMA20 Footprint expansion
Fights planned (next 12 months)50 Pipeline visibility
ONE MORE Gym locations5 Platform for recruiting
Metaverse event engagement>50 avatars wearing NFT Initial traction
NFT price6 MANA (≈ $15) First wearable launched
OTT distributionApple TV, Amazon Fire TV Broadened reach

Guidance Changes

MetricPeriodPrevious GuidanceCurrent Guidance/ActualChange
Total Revenue3 months ending Mar 31, 2022~$1.1M $872k Lowered/Miss
Live Event Revenue3 months ending Mar 31, 2022~$310k $266k Lowered/Miss
Training Facilities Revenue3 months ending Mar 31, 2022~$700k $605k Lowered/Miss
CY2022 Revenue paceCY2022N/A“> $3.5M annualized” Initiated
Fights plannedNext 12 monthsN/A50 Initiated
Gym expansion planNext 30 months15 new gyms 15 new gyms Maintained

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 FY2022 and Q3 FY2022)Current Period (Q1 2022)Trend
Metaverse/NFTPartnership with MetaSkins announced; plan for metaverse events Metaverse debut; NFT wearables launch and sales (6 MANA; >50 avatars) Accelerating initiative
Live event footprintLicensed in 12 states (Q2) ; then 20 states disclosed in filings 20 states reiterated; 50 fights planned Expanded footprint
Gym growthSix-month gym revenue +516% YoY (Q2) $605k in Q1; plan to add 15 gyms over 30 months Continued scale-up
Distribution/OTTOngoing streaming and PPV Added Apple TV and Amazon Fire TV OTT app replays Broader distribution
Financing/Balance sheetConvertible notes; derivatives; net losses; going concern in Q3 filing No change indicated in Q1 press; risks persistOngoing risk profile

Management Commentary

  • “2022 has started off with a bang…licensed in 20 states…50 fights planned…aggressive plan of adding 15 new gym locations over the next 30 months,” said Greg P. Bell, Chairman & CEO, highlighting demand and expansion .
  • “We are off to a tremendous start in 2022…with Spartan data involved…we should be on pace to well more than double what we did last year in fiscal Q4,” Bell noted in February projections (which were subsequently missed) .
  • “This move will add a brand new channel of global content distribution…new revenue streams,” Bell said on the metaverse partnership with MetaSkins .
  • “B2FS 153 was a tremendous way to kick off our metaverse strategy…we set a new Company record for total sales in a new market,” Bell added after the metaverse debut/Dothan event .
  • “This offers the Company a completely new channel for revenue creation…this is just the start of our NFT strategy,” Bell stated on launching wearable NFTs .

Q&A Highlights

  • No earnings call transcript was available for Q1 2022; no Q&A disclosed [ListDocuments returned none for earnings-call-transcript in period].

Estimates Context

  • Wall Street consensus estimates from S&P Global/Capital IQ were unavailable for BTDG in Q1 2022 (tool returned missing CIQ mapping; likely no analyst coverage for this microcap). As a result, comparison to Street estimates cannot be provided.*

Key Takeaways for Investors

  • Q1 2022 delivered strong YoY revenue growth ($872k, +92%), with gyms driving mix ($605k, +129% YoY), but results missed internal projections (~$1.1M) offered in February .
  • Strategic distribution and engagement advances (metaverse debut, NFTs, OTT/PPV expansion) broaden potential monetization channels beyond gate, supporting medium-term topline growth .
  • Operational footprint expansion (20-state licensing; 50 planned fights; ongoing gym rollout) increases capacity to scale events and cross-promote gym memberships .
  • Profitability and financing remain key watch items: prior quarter filings show material net losses, sizable convertible debt/derivative liabilities, and going concern language; monitor cash burn, dilution, and debt terms .
  • Near-term trading: catalysts include additional metaverse/NFT drops and event cadence; risks include execution vs aggressive expansion targets and the absence of institutional coverage/estimates.
  • Medium-term thesis: if B2 can convert distribution footprint and metaverse/NFT engagement into recurring non-gate revenues while scaling gyms efficiently, the revenue base can diversify; capital discipline is critical to sustain the strategy .

*Estimates disclaimer: Values would be retrieved from S&P Global if coverage existed.