GameStop Corporation (NYSE: GME) has learned from the “mistakes of the past decade” when it failed to adapt to the future of gaming, CEO Matt Furlong said on the company’s fourth-quarter earnings call on Thursday.
What Happened: Furlong stressed that videogame retailer had become a cyclical business and so capital-starved that it had to rebuild from within.
“We've also had to change the way we assess revenue opportunities by starting to embrace, rather than run from, the new frontiers of gaming."
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Why It Matters: Furlong said the GameStop of today is a different company than it was at the beginning of the fiscal year.
GameStop, a retail-investor darling, generated revenue of $2.25 billion in Q4, which beat the estimate of $2.22 billion. Loss per share came in at $1.86 in the period.
In January, investors celebrated the first anniversary of a wild short squeeze in GameStop’s shares that took place after Chewy Inc (NASDAQ: CHWY) co-founder Ryan Cohen joined its board. The company embarked on a turnaround after Cohen’s arrival.
Furlong said this was the first quarter in which GameStop’s growth topped pre-pandemic levels.
On the company’s first year of transformation, Furlong said it was about “starting to turn GameStop into a customer-obsessed technology company, one that has wider offerings, more competitive pricing, faster shipping, stronger customer service, and an easier shopping experience.”
GameStop has invested in a dedicated blockchain team and is driving the development of a non fungible tokens (NFT) marketplace, which the company expects to launch by the second quarter, Furlong said.
“We see significant long-term potential in the more than $40 billion market for NFTs. In keeping with our focus on the customer, we are going to continue taking steps to create new offerings and make targeted bets in blockchain gaming and cryptocurrency,” said Furlong.
The retailer also accepts cryptocurrencies like Bitcoin (CRYPTO: BTC), Dogecoin (CRYPTO: DOGE) and Shiba Inu (SHIB) for payments via Flexa.
Price Action: GameStop traded 8% lower at $80.65 in extended trading on Thursday, after closing 1% higher at $87.70 in the regular session.
Photo by Will Buckner on Wikimedia
