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SD

Signing Day Sports, Inc. (SGN)·Q3 2024 Earnings Summary

Executive Summary

  • Q3 2024 revenue was approximately $0.06M with net loss of approximately $1.60M and diluted loss per share of $0.09; revenue was “relatively flat” year over year, while loss widened versus Q3 2023 ($0.9M, $0.12/share). Sequentially, revenue declined versus Q2 ($0.20M) and net loss increased versus Q2 ($1.3M) .
  • For 9M 2024, revenue totaled approximately $0.49M, up 119% year over year, supported by growth in event and subscription activity earlier in the year .
  • Management highlighted strong engagement metrics: student‑athlete subscriptions increased “over 60%” year over year in Q3; Q2 retention for paid subscriptions was “over 45%,” and Q1 free‑trial conversion was “more than 40%” .
  • No formal financial guidance was provided in the Q3 press release; investors will focus on the sequential revenue decline and higher operating expenses against healthy subscription signals as near‑term stock catalysts .

What Went Well and What Went Wrong

What Went Well

  • Subscription momentum: “In Q3 2024, we experienced an increase of over 60% in student‑athlete subscriptions on the Signing Day Sports app compared to the same period in 2023” .
  • User engagement and expansion: Management emphasized enhancements to the app and in‑house development; strategic alliances (GOAT Farm Sports/U.S. Army Bowl, SAJE/EDP Soccer) increased exposure and event‑driven trials .
  • Early‑year growth metrics: Q2 showed 75% year‑over‑year revenue growth and H1 growth of 157%; Q1 delivered 334% year‑over‑year revenue growth and >40% conversion from free trials to paid, indicating product/market resonance .

What Went Wrong

  • Sequential revenue softness: Revenue fell to ~$0.06M in Q3 versus ~$0.20M in Q2 and ~$0.235M in Q1, highlighting variability and seasonality of event/subscription monetization .
  • Operating expense intensity: Q3 general & administrative (G&A) rose to ~$1.46M (vs. ~$0.57M in Q3 2023) and net loss widened to ~$1.60M (vs. ~$0.9M in Q3 2023). Q1 noted higher expenses including one‑time costs tied to app expansion .
  • Limited visibility: No formal financial guidance and sparse disclosure on margins/EBITDA constrain estimate anchoring and near‑term modeling precision .

Financial Results

Quarterly Financials (USD Millions, oldest → newest)

MetricQ1 2024Q2 2024Q3 2024
Revenue ($USD Millions)$0.235 $0.20 $0.06
Cost of Revenues ($USD Millions)$0.069 $0.06 $0.03
Net Loss ($USD Millions)$2.5 $1.3 $1.60
Diluted EPS ($USD)($0.16) ($0.08) ($0.09)

Year-over-Year Reference (Q3)

MetricQ3 2023Q3 2024
Revenue ($USD Millions)Not disclosed; described as “relatively flat” $0.06
Cost of Revenues ($USD Millions)$0.01 $0.03
Advertising & Marketing ($USD Millions)$0.76 $(0.001)
G&A ($USD Millions)$0.57 $1.46
Net Loss ($USD Millions)$0.9 $1.60
Diluted EPS ($USD)($0.12) ($0.09)

KPIs

KPIQ1 2024Q2 2024Q3 2024
Paid Monthly Subscriptions YoY Growth>200% +42% Over 60% increase in student‑athlete subscriptions
Free‑Trial to Paid Conversion>40% ——
Paid Subscription Retention (monthly)—>45% —

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueQ4 2024 / FY 2024None disclosed None disclosed Maintained: No formal guidance
Margins / EBITDA / OpExQ4 2024 / FY 2024None disclosed None disclosed Maintained: No formal guidance
Other (OI&E, tax rate, dividends)Q4 2024 / FY 2024None disclosed None disclosed Maintained: No formal guidance

Earnings Call Themes & Trends

No Q3 2024 earnings call transcript located in our document set; we searched but found none [ListDocuments: earnings-call-transcript for SGN returned 0]. As a proxy, we track themes from Q1–Q3 press releases.

TopicQ1 2024 MentionsQ2 2024 MentionsQ3 2024 MentionsTrend
App development and in‑house engineeringBrought development in‑house; hired engineer Continued enhancements; product praise Continued supportive experience for athletes Continued focus
Subscription growth>200% paid monthly subs YoY +42% YoY; H1 +96% Over 60% increase YoY in subscriptions Growing
Events/alliances exposureU.S. Army Combine events drive trials Alliances with GOAT Farm Sports & SAJE/EDP expand event access Ongoing event‑driven engagement implied Expanding
Retention / conversion>40% conversion from trials >45% monthly retention —Strengthening early‑year cohort metrics
Expense managementOne‑time costs tied to app expansion noted —Higher G&A YoY in Q3 Needs monitoring
Capital/funding risk factors—Funding ability cited among risk factors Standard forward‑looking cautions Ongoing risk disclosure

Management Commentary

  • “In Q3 2024, we experienced an increase of over 60% in student‑athlete subscriptions… Each day, we are proud to guide these student‑athletes toward meaningful opportunities to play at a higher level.” — Daniel Nelson, CEO .
  • “We are proud to announce 75% year‑over‑year revenue growth for Q2 2024… driven by increases in both event and subscription revenue… bringing application development in‑house and hiring an in‑house engineer to elevate the app.” — Daniel Nelson, CEO .
  • “Paid subscriptions increased by 42%… retention rate… over 45%… alliances with GOAT Farm Sports (U.S. Army Bowl) and SAJE Enterprises (EDP Soccer)… platform expansion to include baseball, softball, and soccer.” — Jeff Hecklinski, President .
  • “334% year‑over‑year revenue increase for Q1 2024… conversion rate from free trials to paid subscriptions at more than 40%… some… one‑time costs including expenses associated with the app’s expansion.” — Daniel D. Nelson, CEO .

Q&A Highlights

  • No Q3 2024 earnings call transcript found; therefore no Q&A highlights are available from our document set [ListDocuments: earnings-call-transcript for SGN returned 0].

Estimates Context

  • We attempted to fetch Wall Street consensus via S&P Global for Q3 2024 Revenue and EPS; retrieval failed due to a daily limit error, so consensus comparison is unavailable at this time [GetEstimates error]. In the absence of formal guidance and with microcap coverage likely limited, near‑term model updates will rely on reported actuals and KPI trajectory .

Key Takeaways for Investors

  • Sequential softness in Q3 revenue ($0.06M) versus Q2 ($0.20M) and Q1 ($0.235M) underscores variability; monitor event calendar and subscription cohort monetization into Q4 .
  • Operating intensity persists: Q3 G&A at ~$1.46M and net loss ~$1.60M; watch for cost discipline and scaling benefits as product enhancements mature .
  • Engagement metrics remain a bright spot: >60% YoY subscription growth in Q3; >45% retention in Q2; >40% trial‑to‑paid conversion in Q1 — these should translate to improved monetization if pricing, churn, and event funnel sustain .
  • 9M revenue up 119% YoY ($0.49M) signals traction, but limited visibility (no guidance) and sparse margin disclosure constrain estimate anchoring .
  • Strategic alliances and multi‑sport expansion broaden TAM and event access — catalysts for subscriber acquisition and potential renewal improvements .
  • Risk framework includes funding capacity and execution on privacy/compliance as per risk disclosures; ensure liquidity runway and capital access are monitored against growth initiatives .
  • Near‑term trading lens: Absence of guidance plus sequential revenue decline may pressure sentiment; any updates on pipeline, pricing, and Q4 event cadence could re‑anchor expectations positively .