GameStop has released its latest earnings report, and it shows how the company is doing from a business perspective. Starting with the numbers, GameStop's revenue fell to $1.186 billion from $1.297 billion in the same period last year. It was a decrease of $111 million.
GameStop reported a net loss of $94.7 million for the quarter, an improvement from a loss of $105.4 million in the same period last year.
The retailer also said it had $1.042 billion in cash and marketable securities at the end of the period, compared to $1.413 billion at the same time last year.
GameStop generated the majority of its revenue from hardware and accessories, which was $627 million, or 52.8% of GameStop's revenue during the period. Software ($352.1 million) and collections ($207.3 million) complete the picture, accounting for 29.7% and 17.5% of total sales, respectively.
During the conference call, CEO Matt Furlong confirmed that GameStop had recently cut some positions, although he noted that some people left voluntarily.
Going forward, GameStop will focus on three main areas: games, collectibles and used items. Furlong did not mention additional investments in the crypto space, an area the company has already invested in. GameStop no longer maintains a "physical balance" in cryptocurrencies, Furlong said, and shareholders shouldn't expect GameStop to return to crypto anytime soon.
Regarding the crypto space, Furlong said GameStop does not and will not risk significant capital in the space. He added that GameStop will be "very careful" about future releases, noting that the retailer will consider acquisitions where it makes sense.
GameStop previously announced that it is aligning itself with crypto and NFTs to support its future growth. After investing in this space, including its own NFT marketplace, GameStop seems to be backing down. Unfortunately, this included some reductions affecting cryptocurrency-related roles.
GameStop's stock price closed around $22 on Wednesday ahead of GameStop's earnings report at 5 p.m. ET. Shares hit $23 in after-hours trading. GameStop's stock price has risen more than 400% in the past five years, thanks to the company's rise as a meme stock.
GameStop Stock Meme Movie Stars Paul Dano, Seth Rogen, Sebastian Stan, and Pete Davidson.
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