Who is Enthusiast Gaming and what is all the fuss about? Enthusiast Gaming Holdings Inc. (TSX: EGLX | OTCQB: ENGMF | NASDAQ: Coming Soon) is building the largest media platform for video game and esports fans to connect and engage worldwide. And with the US as its most prominent source of audience and revenue it only makes sense to enlarge its shareholder base and accelerate the growth strategy witha listing on the Nasdaq exchange which it announced yesterday. But who is Enthusiast Gaming and what is all the fuss about? Enthusiast was spawned from Menashe Kestenbaum’s lifelong love for video games, having first written for IGN, a large gaming media site at the tender age of 13. After studying and subsequently lecturing at the Institute of Advanced Talmudic Law in Jerusalem for eight years, Menashe returned to his passion for the video game industry and launched his first gaming blog, “Nintendo Enthusiast”, in 2011. In 2014, he returned to Toronto and incorporated Enthusiast. Then in 2019 Enthusiast amalgamated with GameCo, a publicly traded issuer that had also acquired Luminosity Gaming. To say “the rest is history” would be an enormous understatement given how quickly both the industry and the company are still growing. Enthusiast is currently reaching over 300 million gamers every month, the Company is a member of the ‘Comscore 100’ ranking of the top Internet Properties in the US and the largest in the Gaming Information category on mobile devices. The company has 100 websites publishing unique content across the video game spectrum, 30 weekly shows and 24+ million subscribers on YouTube, 30 live and virtual gaming events globally, 500 influencers across Twitch, YouTube, Twitter, Instagram and TikTok, and 7 professional esports teams. Digging a little further into the numbers and we see its 100 gaming-related websites collectively generate approximately 1 billion page views monthly. Enthusiast’s gaming content division includes 2 of the top 20 gaming media and entertainment video brands with BCC Gaming and Arcade Cloud, reaching more than 50 million unique viewers a month across 9 YouTube pages, 8 Snapchat shows and related Facebook, Instagram and TikTok accounts. The company’s talent division works with nearly 1,000 YouTube creators generating nearly 3 billion views a month. The corporate mission is to build the world’s largest network of communities for gamers through multi-channel media, original content and events. They want to own the fan experience. By building the social network for gamers the company is looking to capitalize on the “social revolution” and changes in how Gen Zs and Millennials consume content. For context Gen Zs are generally between 6 and 24 years old (roughly 68 million in the U.S.) while Millennials are currently between 25 and 40 years old, give or take (approx. 72 million in the U.S.). Enthusiast has a global market, but focusing on the U.S. alone means their target is over 40% of the entire U.S. population. The numbers above paint a pretty impressive picture but the question on investor’s minds is how does Enthusiast monetize this incredible reach. For Q4/20, the companyposted its quarterly average revenue per user (ARPU) at $0.52. Through a phased approach the company plans to increase the ARPU to $3.00 by 2023 through strategies including advertising, direct selling, subscriptions, content licensing, an app store and ultimately a marketplace. The company has shown impressive sequential growth in revenue over the last four quarters from $9.2 million in Q4/19 to $42.5 million in Q4/20. They haven’t posted a quarterly profit yet but the bulk of the infrastructure is now in place to start extracting more revenue per user. And after raising $42 million in February of this year the company has plenty of liquidity to execute on their strategies. Enthusiast Gaming’s Virtual Concert for MusiCares COVID-19 Relief Fund tonight at 9pm EDT (Thursday, May 14, 2020) Plus, Menashe Kestenbaum on the effect of COVID-19 on gaming and esports industry and Enthusiast’s partnership with GRAMMY® nominated DJ ZHU and MrFreshAsian “We definitely have seen huge surge in traffic since COVID started. Quarantined at home with a lot of digital devices and technology – and gaming is tremendously up. We are setting all time traffic record across the board…We have positioned ourselves in an industry that is somewhat recession proof, somewhat pandemic proof and because it is all digital it is well equipped for the future and it keeps on growing…I foresee next four-five years of continual growth based on where the sector is headed and how we are primed at the forefront of this.” States Menashe Kestenbaum, President, Founder and Director of Enthusiast Gaming Holdings Inc. (TSX: EGLX | OTCQB: ENGMF), in an interview with InvestorIntel’s Tracy Weslosky. Menashe went on to provide an update on Enthusiast Gaming’s Virtual Concert the proceeds of which will go to MusiCares COVID -19 Relief Fund. The three-hour charity stream will start at 9pm EDT on May 14, 2020 and will be live streamed on the front page of Twitch.TV. The concert will be used to promote Enthusiast Gaming’s partnership with GRAMMY® nominated artist and newest Luminosity content creator DJ ZHU, and Twitch streamer of the year MrFreshAsian. Menashe also said that for the younger generation gaming and esports have become the predominant form of entertainment and the COVID-19 pandemic has brought gaming and esports at the forefront in terms of entertainment. To access the complete interview, click here Enthusiast Gaming continues to grow rapidly despite COVID-19, as esports continue to boom COVID-19 (coronavirus) has impacted the esports sector, but it is still thriving online. Meanwhile the gaming sector has been a major winner from the lockdowns. Esports and online gaming are booming despite some esports events being cancelled As much of the world has been stuck at home in lockdowns, many people have turned to online gaming and esports for entertainment. The cancellation of most conventional sporting events is also thought to be boosting the sector. For example, the Guardian recently reported: “Twitch, one the world’s biggest streaming platforms for gamers, is estimated to have grown its audience by up to a third in March alone.” The article headline “Esports ride crest of a wave as figures rocket during Covid-19 crisis” is commonplace nowadays. In China there are an incredible 560 million people (62% of online users) participating in live streaming video, led by esports with 260 million viewers. Gaming and esports has become a social revolution The boom in gaming and esports is more than just a COVID-19 lockdown phenomenon. Online gaming and esports has become a social revolution. The youth of today are connecting online and forming online gaming communities with each other. It is this online fun and bonding that makes it so addictive. A form of escapism from society’s problems and a way of hanging out online with like-minded friends. This is why the gaming/esports revolution grows stronger each year. Online gaming led by the Millennials and Centennials is the new social revolution Source Enthusiast Gaming Holdings Inc. Enthusiast Gaming Holdings Inc. (TSX: EGLX | OTCQB: ENGMF) is a rare ‘listed pure play’ on both gaming and esports and is set to benefit more than most from this social revolution. Enthusiast Gaming has the largest gaming network in North America and the English speaking gaming regions. The Company reaches more gamers than Twitch, IGN, Gamespot in the USA; and reaches over 200 million gamers on a monthly basis, with 1 billion page views. Enthusiast Gaming is succeeding in their mission to build the world’s largest platform of communities for gamers and esports fans. Enthusiast Gaming’s user base is dominated by males (73%) from two generations – the millennials (40%), born 1981-1996; and the centennials (30%), born1996-2010. What’s incredible about Enthusiast Gaming is their reach. As shown on the chart below, the Company reaches gamers from all angles including: 100 gaming sites, 900 YouTube channels, 7 professional esports teams, 50 influencers & content creators, and 30 live events globally. Enthusiast Gaming’s network has multiples touch points of engagement with over 200 million gamers Source Enthusiast Gaming continues to partner and grow rapidly The Company’s recent news highlights the rapid growth: May 6, 2020 – Enthusiast Gaming and G FUEL Forge Multi- Year Partnership April 23, 2020 – Enthusiast Gaming Adds Two Major Global Esports Communities to its Advertising Platform April 14, 2020 – Enthusiast Gaming and Monkey Knife Fight Partner to Bring Fantasy Sports to the Esports Gamer Demographic April 8, 2020 – Enthusiast Gaming’s Leading B2B Mobile Gaming Event, “Pocket Gamer Connects”, Goes Digital March 26, 2020 – Enthusiast Gaming Partners with Twitch on Twitch Stream Aid, a Global Celebrity Streaming Charity Marathon March 24, 2020 – Enthusiast Gaming Adds Fextralife Community With Over 60 Million Monthly Views to Network March 19, 2020 –Enthusiast Gaming Adds Leading Minecraft Community to Network, Increase of 28 Million Views and 4.5 Million Visitors Monthly Enthusiast Gaming Revenue is growing rapidly Enthusiast Gaming’s revenue is forecast to almost triple in 2020 to ~C$35 million, up from C$12 million in 2019. Analyst’s have 2022 revenue forecast at C$68 million, which if achieved would be a >5 fold increase in 3 years. By that point the Company should also become earnings positive. The Company sees the potential to grow user numbers as well as to increase the revenue per user. The chart below shows the revenue growth opportunities. Source Closing remarks Enthusiast Gaming mentioned in their latestcompany presentation that COVID-19 has resulted in an increase in users of 20% across the media platform and a 40% increase on some larger, key sites on the platform, with significant increase in paid for subscriptions across the platform.