With 650% Revenue Growth Is SLGG Stock a Buy?

By Kirsteen Mackay


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Super League Gaming (NASDAQ: SLGG) is a volatile stock growing its presence in the metaverse. With Q4 and FY21 results imminent, is SLGG stock a buy?

Gaming Image Source: Adobe Stock Images

Super League Gaming (NASDAQ: SLGG) is an Esports, metaverse and creator economy platform. It’s focused on merging gaming and pop culture via a selection of tools and offerings.

SLGG stock went public in March 2019. The SLGG share price has since lost 75% of its value. It enjoyed a sensational price rise between January and March last year but again gave back all its gains. What does the future look like for this metaverse primed platform?

What is Super League Gaming?

Super League Gaming offers theatre gaming, cloud, and team gaming services. The company was founded by John C. Miller, David Steigelfest, and Brett Morris on October 1, 2014, and is headquartered in Santa Monica, California.

Is SLGG a good stock to buy now?

Company revenues rose in 2020 and its user base also grew. Unfortunately, this came with a rise in costs. To maintain the status quo the company raised funds via share placings. This wasn’t such good news for shareholders as it diluted the stock.

SLGG’s preliminary Q4 and full-year 2021 revenue results were upbeat. The company is expected to exceed $6m in revenue, marking a Y/Y rise of more than 650%. Its success appears to come from a push into collaborative gaming as it projects a reach of 75 million monthly metaverse gamers.

Ann Hand, CEO of Super League Gaming said:

"Our record-level revenue and reach are evidence that players and developers in open gaming platforms – the gaming metaverse, as we call it – are attracted to our games and our creation and monetization tools, and that brands trust us to help them navigate and connect in a high-impact, safe and brand-enhancing way with Generation Z and Millennials. Gaming isn’t a new destination – it is where they already are."

SLGG Stock: $6 Price Target from HC Wainwright

After SLGG reported its preliminary Q4 and full-year 2021 results, analyst Scott Buck at HC Wainwright reiterated a Buy rating on SLGG stock with a $6 share price target.

Financial Metrics Today

  • Market Cap: $78m

  • Fully Diluted Shares Outstanding: 36m

  • P/BV: 0.8

  • P/S: 12.5

Preliminary Q4 results

  • Q4 Revenue: $6m to $6.1m ($0.8m in Q420)

Preliminary FY21 results

  • Revenue: $11.5m to $11.6m ($2.1m in 2020)

Ann Hand, CEO of Super League Gaming said:

“Our preliminary financial results reflect our ever-expanding, premium ad inventory and increasing sales force effectiveness as we exited 2021...We believe that we are well-positioned to sustain this momentum in 2022 as we further develop our scalable and immersive in-game ad platform and build our footprint in the growing metaverse.”

Super League expects to release its comprehensive fourth quarter and full-year 2021 results in early March.


In this article:

Casinos and Gaming
Information Technology
Consumer Discretionary
Super League Gaming

Author: Kirsteen Mackay

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.

Kirsteen Mackay does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the above article.

Kirsteen Mackay has not been paid to produce this piece by the company or companies mentioned above.

Digitonic Ltd, the owner of ValueTheMarkets.com, does not hold a position or positions in the stock(s) and/or financial instrument(s) mentioned in the above article.

Digitonic Ltd, the owner of ValueTheMarkets.com, has not been paid for the production of this piece by the company or companies mentioned above.

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