Faze Clan records $53.2m loss for 2022 as financial troubles continue

faze clan logo financials
Image credit: FaZe Clan

North American esports organisation FaZe Clan has announced a net loss of $53.2m (~£43m) for 2022, up from 2021’s $36.9m (~£29.8m) loss.

This figure also doesn’t include a non-cash, one-time accounting charge of $115.3m (~£93.2m) related to FaZe Clan’s public listing in July 2022. When including this amount, which saw the conversion of ‘Legacy FaZe’ debt into common stock, FaZe Clan’s 2022 loss totalled $168.5m (~£136.2m).

The figures were announced on March 30th through FaZe Clan’s Q4 and 2022 fiscal year financial results, owing to the company’s NASDAQ listing. For Q4 alone, FaZe Clan reported a net loss of $19.1m (~£15.4m).

Despite these losses, FaZe Clan’s revenues did increase in 2022. Last year the organisation’s revenues amounted to just over $70m (~£56.5m), up 32% over 2021. According to the organisation’s letter to its shareholders, which is available to the public, the revenue growth was driven by a close to 70% increase in brand sponsorship revenue. 

In 2022 alone, FaZe Clan secured notable partnerships with the likes of DoorDash, energy drink brand GHOST, McDonald’s and Xfinity, among others. Overall, FaZe Clan’s gross profit was $15.2m (~£12.3m), a 63% increase over 2021.

Aside from the accounting charge, FaZe Clan’s financial report shows that ‘general and administrative’ operating expenses caused a significant chunk of its loss, with the figure totalling $59.4m (~£48m). In 2021, this figure was $37.1m (~£30m).

Whilst financially it has been a tough year for FaZe Clan, competitively the organisation has excelled across multiple titles. Last year, FaZe Clan’s CS:GO roster won PGL Antwerp Major, IEM Cologne and IEM Katowice. Moreover, the organisation’s Call of Duty franchise, Atlanta FaZe, won Call of Duty Major II in Boston. In 2023, FaZe Clan won CS:GO’s Intel Grand Slam after winning ESL Pro League Season 17.

Still, this success — and continued expansion into other titles — has not been reflected in the stock market, with the company recently receiving a deficiency notice from NASDAQ after its stock price remained below the $1 threshold for a prolonged period. 

At the time of this writing, FaZe Clan’s stock on NASDAQ is $0.59. At the start of 2023 (January 3rd) the price was $1.74. In February 2023, FaZe Clan also underwent a wave of layoffs, citing the current economic environment as one reason for the decision.

In an excerpt of Faze Clan’s letter to its shareholders, CEO Lee Trink stated: “We took an important first step in achieving those goals by delivering 2022 revenue of $70.0 million, in line with our target for the year. That’s a notable achievement, but to be candid, we’ve gotten off to a slower start on this journey than we would have liked.

“Last summer, when we blazed the trail for our broader industry by listing on the NASDAQ, we faced a tremendously challenging market and economic environment that slowed our early progress. While we don’t make excuses at FaZe, we have reevaluated our near-term priorities and goals to align with our capital position, including making difficult decisions to right-size our business.”

Tom Daniels
Tom has been part of Esports Insider's team since October 2020 and is currently the platform's Editor. When not playing Football Manager, he enjoys reporting on the mobile esports scene as well as the betting sector.