Investors dumped stock in the Nasdaq-listed firm after its fiscal second quarter financial results saw 2022 revenue guidance slashed from around $100m to between $70m and $75m.
Crucially, reduced revenue during its fiscal second quarter left the business with just $1m on its balance sheet as of 31 December, 2021, although this figure did rise to $1.4m by mid-February.
Following the release, Marks said Q2 performance had pushed the company’s breakeven point back to the first calendar quarter of 2023, as the business continued to burn through more than $1m in cash each month.
EEG has now pinned its hopes on Mathews, who was previously CFO of the Qatar and Abu Dhabi Investment Company between 2014 and 2020, and director of his own consultancy NZ Pacific Investments from 2012 to 2014.Mathews is a fellow of the Institute of Chartered Accountants in England and Wales and previously held positions at the Commonwealth Bank of Australia Group, ABN Amro, Royal Bank of Scotland, Credit Suisse First Boston and KPMG.
“I am delighted to accept the appointment as EEG’s chief financial officer,” Mathews said.
“The company has grown rapidly and has immense ambition in the exciting industry of esports. 2022 will be a pivotal and exciting time as we aim to continue to grab market share and develop and enhance our products to drive strong unit economics.
“I believe the company’s product offerings are at the early stages of their growth cycles and well-positioned to capitalise on a sizeable market opportunity and evolving consumer behaviours. I look forward to helping Esports Entertainment Group in its efforts to further expand its market share in the coming year.”
EEG CEO Grant Johnson added: “Damian brings more than 25 years of global experience working across banking, private equity and real estate.
“Damian has been a valuable part of the company’s board since 2020 and we’re confident his expertise and leadership will make him a critical partner as we execute on our strategic and financial plan for this year and beyond.”
EEG’s share price crashed from $3.46 on 15 February to just $1.24 on 23 February. It has since continued on a steady decline, and was down a further 8.2% at close yesterday, to just $0.65.