OverActive Media Corp. (OAM) Earnings Call Transcript & Summary

Hello, everyone, and welcome to today's webinar. Thank you for joining us. OverActive Media is a leading global esports and entertainment company listed on the TSX Venture under the ticker OAM and on the OTC as OAMCF. With a market cap of approximately $30 million, OverActive is focused on uniting fans worldwide through its premier esports franchises, innovative entertainment experiences and strategic partnerships. Today, we're thrilled to have with us Mr. Adam Adamou, the CEO and Co-Founder of OverActive Media. Adam brings extensive experience in M&A, business strategy and driving growth and innovation. And he'll be sharing insights into the company's recent milestones, including strategies to continue growing fan engagement, revenue and profitability in 2025. We've received several questions from our attendees, which we'll address after Adam's presentation. Without further ado, please join me in welcoming Adam Adamou. Please go ahead, Adam.

Okay. Thanks, Babak. I appreciate you taking the time to be here as we talk through our latest updates, performance and vision for the future. OverActive Media is building something unique in the global esports and entertainment space. And today, we will share how we are driving growth, optimizing operations and positioning ourselves for long-term success. I'll start with a high-level overview before we dive into key areas of focus, including our latest financials, strategic priorities and upcoming opportunities. After that, we'll open the floor for questions. All right. Let's get started. Let me begin with the bottom line kind of items here so that you guys aren't in suspense as to what you're about to hear. First and foremost, we're targeting for 2024 approximately $25 million in revenues. We've got one of the strongest balance sheets in the industry. In fact, we are almost in a position where we have not only no debt but no liabilities, and I'll explain that in a little bit as well. In 2024, we emerged as one of the leading platforms for digital sales on the biggest online game stores. And those digital sales are set to skyrocket and has been driving our performance in 2024 and going into the future. We are forecasting profitability this year. And beyond that, we've emerged as a strong industry consolidator. And we've made 5 acquisitions in the last 6 years, all of which are accretive and contributing to our bottom line. Beyond that, our assets are monetizable, meaning that we have franchises in some of the most important and valuable leagues in the world in the esports space. And those franchises can be sold if we wanted to do so at a considerable profit. With that, let me begin, and I'll build the detail behind some of these points. But let me begin at the very beginning here because esports is defined in many different ways, and we define it in a specific way as we've emerged over the years into what we believe is the successful model for this industry. Esports begins with a publisher. And a publisher is a company like Activision Blizzard or Riot Games or Valve, -- those would be the biggest, I would say, in the traditional esports space. And they create an IP game like League of Legends, Valorant, Counter Strike, Call of Duty. And those games, by and large, are free-to-play, League of Legends, Valorant, Counter Strike, Overwatch. They are all free. There is no price to buying those games on any store. But the way that they monetize them is through an online digital store, just like you might on your phone. you download the game, you play the game and then you can buy skins or bundles or what is referred to often as micro transactions or MTX on the digital store. And the billions and billions of dollars that they generate in profitability for the publisher comes directly from that online store. These games are converted into leagues in which the best teams and the best players can compete at the highest level. This is also a tremendous marketing opportunity for the publisher to showcase their game being played at the highest possible level. In the leagues are organizations, which run the teams of players. Overactive Media in this ecosystem is an organization often shortened to org. So we are an org that participates with teams in leagues with publishers as partners. And the partnership typically takes the form of a franchise or some kind of a long-term partnership or license agreement that allows us to plan long term for our participation in that particular game. Think of this as similar to many traditional sports leagues. We have a franchise. It goes on into the long term, and we can plan around that particular business model. Now with every team that we have, we partner with a co-streamer. And this is where the model changes dramatically from the traditional sports model. A co-streamer is an influencer or a content creator that is partnered with us and stream the broadcast of our team games from the perspective of a fan of our team. So the co-streamer creates a community. They all watch it together, and they all end up watching the game and cheering for our team. Think of it as a big block party of all of the fans of our teams watching the game together. And that helps to build our audience for the game. Now the audience is all of the viewership of a particular game. So think of it as the audience of the NFL would be all football fans. But the fans of our team are the ones that are cheering for our particular game. So audience is big, fans are specific to us. And what we do is we monetize our fans by selling access to them to sponsors. Sponsors would be Bell, Telefonica, beer brands, game brands, all of these big company brands out there want to target our unique demographic. And we provide access to that demographic through activations and other promotions or Jersey patches on our teams. The second component of our monetization is MTX, which I mentioned earlier as being a component of the digital store and how the games are monetized. What we've been able to negotiate with the publishers is access to our IP inside of the publisher's game. So you can go to the digital store and acquire a Movistar KOI or a Toronto Ultra skin for your in-game avatar, and we will receive the money from that particular skin sale. And the sponsorship revenue and that MTX is the core of our value equation. Let me see here, why am I not -- there we go. Okay. So with that definition in mind, OverActive Media is a global esports company for today's generation of fans. We are one of the few that is truly global with offices here in Toronto as our headquarters, but we also have offices in Madrid, Barcelona and Berlin. Soon, we will be announcing our expansion into Mexico as well. And what we do is compete in the biggest global esports leagues. We create exceptional teams in the most exclusive professional leagues, and then we partner with the top influencers in those particular games to build an audience that is passionate about our brands. That allows us to develop a consumer channel that reaches hundreds of millions of fans. And then we take that channel and we monetize it through sponsorships and by selling digital merchandise on the online digital store. That's the business model that we have. And every day, we think about how we can optimize it. In terms of the biggest games in the world, we look at them in a particularly unique way, I would say, relative to other teams. We focus on those games not only that have the largest audience, but that have the biggest online digital stores. As I mentioned earlier, we want to monetize through sponsorship, but we also want to monetize through digital MTX. And the biggest games in the world for digital MTX are League of Legends, Valorant, Call of Duty and Counter Strike 2. As you can see, we've managed to be in all of those games with long-term partnerships with Activision Blizzard and Riot, in particular, the 2 big ones. And then we kind of take a look at the Tier 2 games with smaller stores or smaller audiences, and we look at those in particularly strategic ways. Now as you go down this list from left to right, you can see that near the end, there's a lot more Xs and a lot fewer checkmarks. And from our perspective, esports is kind of -- if you're not green here on this chart, you may be in something related to esports, but you may not be in the esports that we define as such. And just going back to our business model because it's been emerging over some period of time, and we think we've really landed on the important components of it, which, as I mentioned before, and I'm going to come back to this several times, it is sponsorships and MTX. Those are our 2 primary revenue drivers. And our business model has evolved to something very simple. I'd like to keep it as simple as possible so that everybody can understand it both internally and externally. We want to cover all of our costs through the strategic partnership side with the brands and the sponsors that want to connect to the fans, want to get to the point where all of our costs are covered by sponsorship revenue. And then that leaves our profitability to come from our exclusive access to the biggest digital game stores in the world, the MTX. So sponsorships cover costs, MTX cover profit. And when we can do that properly, there is significant amounts of revenue on the MTX side that generate outstanding returns for our business. And our business is really kind of driven by owning that channel, the hundreds of millions of fans that I mentioned that are following us. I want to own that channel, and I want those people to be active followers and fans of our particular teams. If they're not fans of my teams, it's hard for me to sell them to sponsors and they won't be buying my MTX. So what we do is we partner with these co-streamers and we broadcast our games on Twitch and YouTube and any other platform that will have us so that we can constantly reach our audience at what is effectively low to no cost for us. This is a key component that has really emerged in the industry that may not -- you may not be aware of, which is I can create a channel on YouTube or Twitch to reach my fans and engage with them. And rather than having to bear the cost of that broadcast, we are actually paid for it. So I get revenue in -- by reaching my fans through a broadcast mechanism that cost me effectively nothing other than the people that are streaming on it. And because my cost to distribute are negative or actually potentially positive, it results in sustainably high gross margins for me. And I'll explain my gross margins to you in a little bit. But this is a key component because if I can reach my audience without having to pay anything extra, my margins are very high. And in the industry, if you're comparing us to other companies, if their margins are low, it's probably because they don't own the channel to their audience and they have to pay somebody else for it. We own the channel. And what we do is we manage and run that channel all day, every day. We have daily content. It focuses on our team. We have co-streamers that are streaming -- different co-streamers streaming 24 hours a day on different games. We try to focus on our channels. We put out our brand sponsors. You can see some of the sponsorship logos on there, and that engages our audience all of the time. We are streaming. These are your teams. These are your players. This is your game. And by doing that, we basically increase that engagement that drives to our revenues. And we've been able to be incredibly successful at unparalleled global reach. When I talk about 100 million fans worldwide, there's a number of consequences that come from that. Either that's an exaggeration and it's not true or if it is not an exaggeration, that means that there are certain consequences of that, which include, well, if you've got 100 million fans, your viewership must be really high. Check. If you have 100 million fans, your digital MTX should sell very well. Check. We're among the best-selling digital merchandise of any team in the world. There's not 100 million, 20-somethings in any one country as far as I'm concerned, maybe in China. But if you have 100 million fans, that means you should be big in multiple regions. And we are big not only in Europe, in North America, but throughout Latin America as well. That's 3 continents in which we have significant numbers of fans. And if I have 100 million fans, we should have incredibly high engagement in our viewership, in our social media channels and so forth. And I can confirm that we have among the highest engagement of any esports team in the world. And beyond that, if you have that kind of viewership, it should be highlighted in the viewership. And to your left here, you can see from a recent JPMorgan study, right at the very top, the #1 Twitch streamer in the world, this is 2024 is a gentleman by the name of Ibai Llanos, who is an overactive streamer. He's our partner. His viewership, as you can see, over this period was about 336,000 per minute viewers, okay? And since partnering with us, you can see in the second column, his viewership increased by 479%. He is a big streamer, but he's also coupled with an organization that is very popular, and that creates incentive to view and engage with our teams. And you can see it in the numbers. These are 2024 numbers, but you can see at the very top, the biggest sport in the world is League of Legends in terms of viewership. You can see the #1 most viewed game was G2 versus MAD. MAD was the name of our team in 2024. We're #1. We're there #2, and we're there #4. Those are the top 5 games in terms of viewership in 2024. We are in 3 of the top 5 with a different team in each case. And then in terms of the World Championships in 2024, this is the viewership for the play in teams. This is global, and you could see that Lion logo at the very top. That's MAD Lions, KOI, that's our team at the top of that list as well. We are the #1 team in esports for total engagement. We have nearly 200 million engagements across our channels. That was in the first quarter of last year. We're the leaders in peak viewership, as you can see, and we have co-streaming partnerships for every game. And that results in us having a lot of partners. Sponsors want to partner with us because they want access to those fans that are highly engaged with our products. And as you can see on a global basis, I think there's about 20-some-odd partners here from Bell to Movistar, which is Telefonica to Red Bull and Monster. There's 2 different energy drinks, [ Cupra ], AMD, Mahou, which is a beer company, SCUF, Razer, Pepsi, OMEN, TD. We have partners in every category around the world, all of whom want to reach our audience, and we help them to reach our audience by helping to activate their products and connecting them to our brands. And then most importantly, we have our digital MTX. And what you will find in terms of our business model is that you will be able to go and you can do this right now on to an online store. For example, you can go to Steam, you can search for Call of Duty League and you will see our Toronto Ultra skin there. You click the link to add it to your card, CAD 15.99 and you will buy that skin. And we receive a good portion of that revenue in partnership with our league partner for that skin. So every day around the world, we have our skins for Valorant, for League of Legends, for Call of Duty, for Warzone, for Counter Strike that can be acquired through these online stores -- and even as I'm talking now and doing this presentation, there are people in different parts of the world that are buying our skins. That is a significant addition to our revenue streams, and we were among the best performers in the world in the digital sales because of our highly engaged large viewership. And you can't just access these stores if you're anybody. You have to be in these long-term partnerships with the publishers. This is their honeypot. This is where they make all of their revenue for these essentially free-to-play games. And so they only partner with those organizations that they trust, that they and they invite into long-term partnerships. The very small number of organizations, and we are fortunate enough to be in all of the key games that are driving these revenue verticals. And overall, the momentum is building for esports. Post-COVID, I think we had some difficult times as many industries did. But I feel like we're past those difficult times. We see new esports initiatives emerging like the Sports World Cup, in which we were one of only 30 teams in the world that were invited to participate as partners in this organization. The first one -- the first World Cup was held in '24, and we're actively preparing for the 2025 version right now. First year, we took some tentative steps to understand what it would be like, and we generated 7 figures in revenue from the Sports World Cup. We expect to do even better in 2025. But there's other initiatives as well. For example, the International Olympic Committee announced Olympic esports games directly connected to the Olympic Committee which will be hosted in the Kingdom of Saudi Arabia for the next 3 cycles over the next 12 years, I believe. And being one of the biggest and highest viewership organizations in the world, we expect to be fully active in the eSports Olympics as well. But all of these things just drive the interest in the audience and the viewership and the engagement for the game, and that is very, very good for our business. In terms of our revenues, you can see that we are moving in the right direction in terms of both our revenues, our expenses and our profitability. This is a 5-year chart. You can see in the early years, our model is such that running these teams is expensive and creates a significant fixed cost. You can't just basically run a team with no players, no coaches, no training and no infrastructure. And that creates a fixed cost hurdle that you need to overcome before you can basically move into profitability. Once you get there, though, the gross margins in our business are tremendously high. Think north of 60%, in many cases, north of 70% gross margins. And so the struggle is to get to the point where you can cover that fixed overhead and then incremental revenue falls to the bottom line. And as you can see, the green line at the bottom, which is negative or losses, has been moving down over the course of the years, and you can see it kind of slipping into the positive for 2025. Once we turn the path in the corner into profitability, particularly that digital MTX revenue can start falling to the bottom line. And in my view, esports can be an incredibly profitable business once you get over that hump. And I honestly believe that we are past that hump and moving into that cycle. Question is, what does your balance sheet look like? And will you make it for that long? Sustainability is always a question if you're not a profitable company. And I'm happy to say that as of September 30, which is the last financial results that we publicly released, we had a cash balance of over $8 million and growing actually, and we had net working capital of $9.4 million. And let me just kind of touch on that. Net working capital, as you all know, is your current assets minus your current liabilities. And that is to the positive of $9.4 million. Once I eliminate all of my current liabilities, the only liabilities that are left are my long-term liabilities. And as you can see here on the chart, the biggest component of our long-term liabilities is a deferred tax liability, which is a noncash payable liability that is a function of future profitability, okay? So that will be paid. It's an obligation that will be paid to the government out of future taxes going on and definitely into the future. Then the only other long-term liability that is in my balance sheet is a $2.4 million obligation. There's 2 components to that. The biggest component of that is a payment for our League of Legends franchise, which has since been waived. That's roughly about $2 million. So we owned about $2 million for our League of Legends franchise. We were able to negotiate with Riot to eliminate that payment. So I no longer have to pay it. And so the only liability that I have, which is a cash obligation on my balance sheet is effectively some of the money that we received for COVID relief from both Canada and Spain, which is in the few hundred thousand dollars over a long period of time. That effectively makes me cash-rich and liability poor, which is a very, very good position to be in. But there's actually an even better part of this, which is my LEC franchise asset, which is listed there at $25 million and then long-term assets as well. What are those? And are those real? And I'm very happy to say that those are very real, okay? Our LEC franchise asset, let me just for the sake of time, focus on that. This is our League of Legends franchise. League of Legends is the biggest sport in the world. We are carrying that at CAD 25 million on our books. And as you can see, we have no liabilities. So that is ours. So is there a value there in that? Is there a sellable value there in that? And when we look at the market, we see that, a, there's an active market for esports franchises. In other words, I can sell that. There's been at least one franchise sold every year for the last 3 or 4 years. The average valuation of an LEC franchise in these third-party transactions over the last 3 or 4 years has been about CAD 35 million, okay? So CAD 35 million is the average selling price of just the franchise, not the business that goes with it, just the license to run the team. And there's an active market for these franchises. As I said, Team BDS acquired a team, Astralis sold their team to Karmin Corp. Heretics acquired the team from Misfits. There's more transactions out there. And we own one of these and have no liabilities against it. And we also own a bunch of other franchises that probably have value as well. So those assets have value, and we believe that in the worst case, we can monetize them for a profit. Having said that, we're not in the business of monetizing assets. We're in the business of growing our business. And to do that, we've been very active in the M&A space. We've made 5 acquisitions in the last 6 years to get all of the pieces together that we need for the growth of our business. And as you can see once again from my balance sheet, all of these acquisitions have been sensible, accretive, fully funded, and we have no debt against them. They're all fully paid off. That's a pretty good position to be in. We've been able to acquire the teams in every major league that we want to be in. We've built distribution channels to our 100 million-plus audience of fans and influencers through the M&A route, and we've established our capabilities across events, content and media, and we're looking for more. I believe that M&A is one of our strong competitive advantages, and we do it better than anybody else in the industry. Our team is strong. As you can see, we not only have, I think, the best management team in the industry, but we also have significantly prominent shareholders like Bell, Telefonica, the [indiscernible] family, the Montreal Canadiens, Ibai Llanos, the world's biggest streamer, Gerard Pique, which is a footballer. He's also on our Board. Abel Tesfaye , who's the Weeknd, Mitch Marner, Sheldon Pollack. We are a global organization with global active informed shareholders that is helping us to build this business into the entertainment platform of the future. Our market cap, unfortunately, is behind, I think, our business, but that's okay. I think -- look, I've been in the business a long time. Things go up and things go down. It hasn't been the best of times for small-cap companies. But we are doing, I think, an incredibly good job. And it will happen when it happens. Our market cap is, in fact, less than just the value of what I believe is our LEC franchise license, okay, at $28.9 million. You can see the average price was $35 million just for that license. And then on top of that, I have about $10 million in cash and no debt. This stuff takes care of itself over time. We're going to be going out there, doing things like this and telling the story more through '25. That's going to be one of my focuses this year because as we shift into profitability, it's time to get up on the rosters and start telling people about the great success that we've had with our business. And that brings me back to my conclusions, which is our revenue has been growing 70% year-over-year in 2024 relative to 2023, strong significant revenue growth, 7-0 percent. We've got that strong balance sheet with little to no liabilities. I've got access to all of these online stores that are driving my growth forward. We're looking forward to profitability. Actively involved in M&A, and I've got these beautiful valuable assets that are allowing me to build this business in the way that we're doing. And that's it. Thank you for joining me here and letting me tell you your story. Why don't I go back to you, Babak, and you can let me know if there's any questions.

Sounds great. Thanks, Adam. And yes, we have received a number of questions. The first question asks, what is OverActive Media's long-term vision? And how do you plan to differentiate yourself into esports and entertainment industries?

Well, I guess, long term depends on how long you're talking about. I -- look, in my view, esports is going to prove to be a better business model than traditional sports. And I think the reasons are many. One is, we own the young audience, 20 somethings, 24 something, 25 something. In my experience, what you are, what you follow in your 20s is what stays with you your entire life. So my favorite bands, my favorite sports teams are all of the ones that I had in my 20s, okay? And we've locked that group up, okay? So I think they're going to grow with us over a period of time, and we want to maintain them. But secondly, I also think that our access to these digital stores, the MTX, differentiates us significantly from traditional sports teams. We have all of the elements of traditional sports teams, plus we get access to these digital stores. And I think those 2 things combined, if we manage them well by building our audience, will allow us to not only be profitable, but to be significantly more profitable than traditional sports teams.

Perfect. Thanks, Adam. The second question asked, are there plans to expand into new markets or regions in the coming years?

Well, I gave you guys a bit of a spoiler there with Mexico, to begin with. So yes, we are looking at that. I think Latin America, in particular, is very -- has a very large group of young people that are into video games and esports. And so we believe that we've got a natural in over there. Of course, there's also Asia. We're looking at that, but that's a bit of a tougher market. I will say that I prefer to do expansions through acquisitions. I'd like to get a toehold in a new market by acquiring a business that can basically give me intelligence into that market. And so 1 at a time, I will say we've been able to start from Toronto, we're big in Europe, and now we're kind of looking into expanding into Mexico as well. And we've been able to do that largely through acquisitions. And as I said, they're all paid for and they're all accretive and I don't owe them any more money. They're all part of our organization now.

Perfect. Can you elaborate on your strategies to grow your fan base and increase engagement across digital platforms?

Yes. That -- look, our -- there's 2 components to our kind of audience. One is how good our teams are and our players and so forth and whether they're competitive. And I'm happy to say that we have won championships in pretty well every game that we're in over the last 5 or 6 years. But viewership in eSports is very different from viewership in traditional sports. We are essentially a partnership between our players, our influencers and our teams. And what we do is we have been able to connect the influencer community, the creator community with our teams and then bring the audience that the influencer might have and convert them into fans of our teams. And now what we're finding is that even if the influencer is not streaming our game, the fans are still watching it regardless because they're not just fans of just the influencer, they're fans of our particular team. And this connection between influencers, social media, teams and video games is very powerful. And I think we're going to be leaning more into owning those channels as we go forward. And look, that's the way of the future. I mean the way of the future, if you look in 10 years for traditional sports teams and really any kind of viewership audience that you have out there, it will be a combination of not just passively back waiting for the audience to come to you, but for you leaning forward and bringing your programming to the fan. That's the transition that we're in, and we're way ahead of the curve on that front.

Thanks, Adam. Next question asks, what steps are you taking to strengthen relationships with existing partners and attract new sponsorship deals?

We are -- look, I'm happy to say that because we've got such a big audience, we've been able to put together probably the biggest group of sponsors of any team in the world, 20-plus, I would say, in 2024. And the trick there with sponsors is to be able to offer them value at different price points. So when I talk about our 20-plus partners, on the low end, somebody could spend as little as $50,000 with us, okay? And on the high end, we've got many that are spending millions of dollars a year with us. What we do is we tailor to each partner based on the price point that they want to basically engage with us, activations and a product, let's say, that basically is going to outperform their spend, but not by such a significant amount that they don't want to spend more with us. And the value in our offering really is in our renewal. if you're a partner and you are staying with us, that means that you recognize that we are providing value. And some of our biggest partnerships, in particular, Telefonica, which is the Movistar brand, they've been with us for almost 7 years now. And they are spending more money today than they have ever spent in their history. So increasing over time from your biggest partners is a strong indication that what you are offering to them is adding consistent, considerable growing value that they want to stay connected to.

Thanks, Adam. The next question asks, among the various revenue streams, whether sponsorship, media rights, merchandise, digital skin sales or events, where do you see the most growth potential?

MTX, digital MTX, the merchandise, that is not only the highest growth potential, but that is the highest margin revenue that we have as well. So just to be clear, when I -- if I report $1 million in revenue from MTX, that is my share. So that is 100% gross profit for us. Whatever cuts, store fees, all of those things that basically might be subtracted from that figure are done at the publisher side and then I just get a net payment. And what we've seen in our first year under that model is an explosion of revenue from that particular revenue source. And look, it may not be a straight line going up, but I believe that over time, that revenue can grow 5, 10x from where we are right now. And as I said, earlier on, my business model is for all of my cost to be covered from sponsorships and for that to be my profit. And I expect that is the area with the biggest growth.

Excellent. Next question asks, are there opportunities for mergers, acquisitions or strategic partnerships that could accelerate growth?

Yes. Well, I mean, we did 2 acquisitions last year. I can kind of go into them a little bit. One is a company -- both -- one is in Madrid actually. So Riders had effectively minor league esports teams in Spain. And -- but they also had among the strongest management groups that we've run across in our business. And so we acquired them for their execution skill. And at the same time, we acquired -- in Barcelona, one of the largest influencer-led companies in the world. They were very strong in audience and very low in execution. And so we actually did both acquisitions at the same time to bring the influencers and the audience with the execution from Madrid and then putting in our esports teams, particularly our League of Legends and the Valorant team led to massively accretive growth there, right? And we're always on the lookout for that kind of stuff. Again, I'm looking at various different kind of complementary verticals. But I would say 5 acquisitions in the last 6 years is a pretty good start. We're very good at it. We're always on the lookout, and I expect you're going to see much more from us on that front.

Thanks, Adam. What steps are being taken to improve margins and achieve sustainable profitability?

Our margins are very high, actually already. So we are -- look, I don't have the latest numbers here, and I don't think we've reported them. But let's say, between 60% and 80% gross margins for our business. And if you take a look at other companies in our space, oftentimes, their margins are very low because they're not really esports companies. And I'm talking like 10% gross margin, 20% gross margin, like never look at the top line when you're looking at an esports team because I might have $25 million in revenue, and I may be generating $20 million in gross profit. That's a very good business model. That's my business model, okay? Or I may be doing $25 million in revenue and generating $5 million in gross profit. That's not a very good business model, okay? And both exist out there and focusing on the top line won't differentiate one from the other. So what we do is we focus on those businesses with the highest margins. And both sponsorship and MPX provide us with very, very high gross margins. And I want to stay in those businesses. I want to grow the MTX revenue, and I want to build on the sponsorships, and I want to start driving strong profitability to the bottom line.

Thanks, Adam. Next question asks, how is OverActive Media leveraging technology such as artificial intelligence to enhance its operations or fan experiences?

Wow, good question. Look, I don't want to give anything away on that front, but I can tell you that our business is full of fresh, new ideas across AI, across even things like crypto, across VR and AR. Like, we are in the center of all of the most exciting technologies that are happening in the world right now. And I can tell you that we have a lot of ideas. We're bringing on a lot of things, but we're not prepared to talk about them just yet.

And the last question asks, how does OverActive Media align its operational strategy with shareholder value creation?

That's a very good question. Look, at the -- for long-term sustainability, shareholder value is a function of your profitability. And very, very short term, of course, you can have overvalued companies based on excitement and momentum and so forth. And certainly, we've been the beneficiaries of that. You can also have undervalued companies for the same reasons. And we've unfortunately been a victim of that as well. But the companies that I respect the most, that I have been involved in or aware of are the ones that consistently just deliver year over year over year over year. And we are shifting into that part of the evolution of our business. Look, $25 million plus, I would say, is very, very good when you're getting 70% gross margins, okay? And as we move from $25 million to $30 million to $50 million to $100 million, we are going to be putting considerable profitability to the bottom line. And when you can drive that profitability and then convert it into really smart M&A, and we've proven that we can do that, you can grow this business sustainably into a giant enterprise. And look, I don't sweat whether the stock is at $2 or in the immediate short term. But I do think we are at that pivot point where I can feel comfortable saying, guys, we fixed the problems with the industry. Like we've got our pieces in place. Our revenues are growing at 70%. I can see profitability down on the horizon. I've made 5 acquisitions that have been incredibly accretive, and I've paid them all off, and it's time for you to take a look because I've got assets that are worth $35 million, and I've got $10 million in cash and I've got no liabilities and I'm worse negative in my market cap. So it's going to turn and it's going to happen. And I will also finally say, look, I was one of the biggest net buyers of stock in OverActive in 2024 because I'm no dummy.

Thanks, Adam. There are no further questions. And before I hand over the call back to Adam for his closing remarks, I'd like to thank everyone for their interest in OverActive Media. If you have any questions, please don't hesitate to reach out to us directly at [email protected]. Thank you again, and back to you, Adam, for your closing remarks.

Okay. Well, I'd like to thank everybody for taking the time to join today's webinar. Look, we're in a very strong position to capitalize on the evolving esports and entertainment landscape. And I'm going to remain focused on delivering value to our investors, our partners and our fans. The work we're doing now streamlining our operations, strengthening our teams and expanding our global reach sets the foundation for long-term success. There's still plenty of work ahead, but I'm confident in our vision and our ability to execute. As always, I appreciate your continued support and engagement. If you have any further questions or want to discuss anything in more detail, feel free to reach out. Thanks again, and we look forward to sharing more updates soon.

Thanks, everyone. This concludes today's webinar. You may disconnect.