Let the memes begin. GameStop $GME reported an unexpected profit in Q4, and its shares surged about 34% in after-hours trading (so far). The video game retailer generated $4.5 million from digital sales during the quarter, while revenue fell by 0.9% to $2.25 billion. The company’s net income in Q4 was $48.2 million, compared to a net loss of $147.5 million last year.

The reduction in costs and headcount contributed to an increase in operational efficiency. Hardware and accessories sales accounted for 55.8% of total sales, while software sales fell to 30.1%. Collectibles revenue rose to 14.1% of the total. Additionally, GameStop's inventory was at $683 million compared to $915 million a year ago, while its cash and cash equivalents stood at $1.39 billion.

The company’s turnaround plan received a boost after a leadership shake-up, with CEO Matt Furlong and board chair Ryan Cohen, the founder of Chewy, leading the charge. GameStop has also been working on improving its digital identity through experiments with NFT marketplaces and collaborations with crypto exchanges.

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