GameStop Lost Almost $95 Million In Past 3 Months, No Longer Focusing On Crypto
GameStop has not and will not "risk meaningful stockholder capital" in the crypto market, CEO claims.
GameStop has released its latest earnings report, shining a light on how the company is performing from a business perspective. Starting with the numbers, GameStop's revenue dipped slightly to $1.186 billion, down from $1.297 billion during the same period last year. That was a decline of $111 million.
GameStop posted an overall net loss of $94.7 million during the quarter, an improvement against the $105.4 million loss from the same period last year.
The retailer also reported that it had cash, cash equivalents, and marketable securities of $1.042 billion at the end of the period, which compares to $1.413 billion during the same period last year.
GameStop earned most of its revenue from hardware and accessories, which amounted to $627 million, or 52.8% of GameStop's total revenue for the period. Software ($352.1 million) and collectibles ($207.3 million) rounded things out, taking up 29.7% and 17.5% of total revenue, respectively.
During an earnings call, CEO Matt Furlong confirmed that GameStop enacted a round of layoffs recently in corporate jobs, though he also noted that some people left of their own accord.
Going forward, GameStop will focus on three main areas--gaming, collectibles, and pre-owned items. Furlong did not mention any further investments in the crypto space, which is an area the company invested in previously. Furlong said GameStop no longer holds a "material balance" of any crypto token, and shareholders should not expect GameStop to get back into crypto anytime soon.
Pertaining to the crypto space, Furlong said GameStop has not and "will not risk meaningful stockholder capital in this space." He added that GameStop will be "very judicious" about spending going forward, going on to mention that the retailer will consider acquisitions where they might make sense.
GameStop previously said it would look to crypto and NFTs to help fuel its future growth. After making investments in this space, including its own NFT marketplace, GameStop now seems to be scaling back. Unfortunately, this has included a series of layoffs impacting crypto-related roles.
GameStop's stock price closed at around $22 on Wednesday, prior to GameStop's earnings report at 5 PM ET that day. In after-market trading, the share price jumped slightly to around $23. In the past five years, GameStop's share price has surged by more than 400%, thanks in part to massive growth from the "meme stock" situation.
A GameStop meme stock movie is in the works with Paul Dano, Seth Rogen, Sebastian Stan, and Pete Davidson set to star.
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