Super League Enterprise, Inc. (SLE)·Q2 2024 Earnings Summary

Executive Summary

• Q2 2024 revenue was $4.116M, down 19% year over year (Q2 2023: $5.052M) and down 2% sequentially (Q1 2024: $4.209M); gross margin of 40% vs 41% in Q1 and 42% in Q2 2023 .
• Net loss improved materially to $(2.455)M and $(0.60) EPS, versus $(6.836)M and $(3.38) EPS in Q2 2023 and $(5.260)M and $(1.00) EPS in Q1 2024, driven by lower operating expenses and favorable warrant mark-to-market .
• Management reiterated an expected first profitable quarter in Q4 2024 and “another record setting revenue year in 2024,” citing productization, cost discipline, and pipeline strength; Q2 saw ~$1.8M of revenue deferrals and program delays into Q3, which muted top line despite healthy demand .
• Strategic launches and partnerships (SOUNDZ music product, Unlockables, Olympic World with Visa/IOC, Meta‑Stadiums partnership) position SLE for larger, cross‑platform programs and potential downstream consumer monetization/data revenue streams .

What Went Well and What Went Wrong

What Went Well

• Cost control and margin discipline: “we once again made material strides in controlling costs and eroding our operating losses,” with Q2 pro forma OpEx down ~25% YoY and operating losses down ~23% YoY; headcount ~15% below last year .
• Product innovation and scalable offerings: Launch of “SOUNDZ” with Bebe Rexha, “Unlockables” reward modules, and Pop-Ups to accelerate time-to-market and lift margins; Olympic World built with Visa/IOC drove global engagement .
• Strategic partnership with Meta‑Stadiums enabling cross‑platform, ownable stadiums and potential participation in consumer monetization and data—“one of the most generous partnerships,” with joint pitching underway .

What Went Wrong

• Top-line softness from timing and macro: ~$1.8M of expected revenue was deferred due to delayed advertiser launch dates and Q3 program start shifts; management cited inflation-related consumer/ad softness .
• Media monetization mix pressure: On‑platform/media and Minehut‑related sales declined YoY, partly due to Minehut divestiture and reseller mix, compressing gross profit vs prior year .
• Liquidity tightened sequentially: Cash fell to $1.685M at quarter-end from $3.311M in Q1, reflecting operating cash burn; management continues to assess capital alternatives amid going‑concern disclosures .

Financial Results

Segment revenue breakdown:

Selected KPIs and balance items:

Guidance Changes

Earnings Call Themes & Trends

Management Commentary

• “While our revenues were flat sequentially due to $1.8 million in revenue deferrals and program start delays to Q3, we once again made material strides in controlling costs and eroding our operating losses as we march toward our first expected profitable quarter in Q4.” — Ann Hand, CEO .
• “Our strong pipeline and sales momentum continue to build in the back half of 2024… positioned for another record setting revenue year in 2024…” .
• On Meta‑Stadiums: “This is probably one of the most generous partnerships… we will get to participate in the consumer monetization… active pitches together… sizable” .
• On margin strategy: “The more repeatable products we sell, the more the margins climb… pop‑ups and other product innovation essential” .

Q&A Highlights

• Meta‑Stadiums economics: SLE can jointly pitch programs, drive audiences from platforms to dedicated stadiums, and share in virtual goods economies and data; near‑term sizable opportunities anticipated .
• Cost scalability: Productization reduces incremental cost for larger programs; OpEx oversight remains tight as revenue grows .
• Sales mix and pipeline sourcing: Historically ~80% agency vs 20% direct, shifting to more direct relationships (e.g., Google, Chipotle), aiding larger repeat programs .
• Advertiser timing: Deferrals reflect internal creative/process timing and seasonal ROI focus rather than canceled budgets; expectation of strongest ROI in Q3/Q4 .
• Recurring revenue model: Persistent integrations and dedicated worlds carry monthly fees ($25K–$50K/month) to keep experiences vibrant; brand progression from campaign to persistent strategy .

Estimates Context

• Wall Street consensus (S&P Global) for Q2 2024 and forward quarters was unavailable at time of analysis due to SPGI rate limits, so an estimates comparison is omitted. If needed, we will refresh when access is restored.
• Company does not provide formal numeric revenue/EPS guidance; management reiterated qualitative targets around Q4 profitability and record 2024 revenue .

Key Takeaways for Investors

• Mix/timing headwinds masked underlying progress; the ~$1.8M Q2 deferral and Q3 start shifts suggest a stronger 2H setup with sequential tailwinds into Q3/Q4 .
• Operating leverage is improving: OpEx down materially and net loss more than halved YoY; management expects the first profitable quarter in Q4 2024, a potential catalyst for a re‑rating if achieved .
• Productization thesis is working: Pop‑Ups, “SOUNDZ,” and “Unlockables” drive faster launches and higher margin mix—watch 2H gross margin trajectory as larger repeatable modules scale .
• Strategic partnership optionality: Meta‑Stadiums provides access to larger cross‑platform programs and potential downstream consumer monetization/data revenue—evidence of early sizable deals would be a key narrative driver .
• Vertical case studies (Visa/IOC Olympics, Skechers, Old Navy, Google EDU) validate enterprise positioning and persistent revenue models (monthly ops fees), supporting more predictable cash flows over time .
• Liquidity remains tight; monitor cash and AR facility usage; despite cost discipline, going‑concern language persists—capital markets progress or cash generation in 2H will be important .
• Near-term trading: Q3 prints should benefit from the deferred programs and seasonality; Q4 profitability milestone is a key event risk/reward inflection.

All data and statements are sourced from Super League’s filings and transcripts: Q2 2024 8‑K/press release , Q2 2024 10‑Q , Q2 2024 earnings call , Q1 2024 10‑Q and call , and Q4 2023 materials .