Esports conglomerate GameSquare Holdings has announced revenues of $17.7m (~£13.9m) and a gross profit of $3.4m (~£2.7m) for the first quarter of 2024, ending March 31st.
The result is significantly better compared to the same period last year, where the company generated $2.8m (~£2.2m) in revenues and $1.3m (~£1m) in gross profit. Despite these higher numbers, GameQquare recorded a net loss of $5.3m (~£4.2m), $1m (~£790,000) higher compared to Q1 2023.
In March 2024, GameSquare underwent significant developments. Its merger with FaZe Clan was officially completed and the company sold Complexity Gaming to the organisation’s Founder Jason Lake for $10.36m (~£8.19m).
As a result of these moves, GameSquare also published proforma financial results for Q1 2024. According to a release, the proforma version removes Complexity from GameSquare’s financial statements and includes a full quarter contribution of FaZe Clan in the 2024 period.
With these changes, the company reported revenues of $23.5m (~£18.5m) and a gross profit of $3.7m (~£2.9m).
With the change of direction for the company, the company is expected to improve profitability and accelerate revenue growth in the second half of the year. Based on the release, the company’s management is expecting to generate over $100m in annual revenue with an annual gross margin between 22.5% and 27.5% this year.
Justin Kenna, CEO of GameSquare, commented on the results: “Our first quarter proforma financial performance reflects the progress we are making integrating the FaZe Clan acquisition, optimizing our business model, investing in our long-term growth opportunities, and improving profitability.
“We believe there are $18m (~£14.2m) of cost synergies as a result of the FaZe Clan acquisition and expect the majority of these savings to be realized during the 2024 second and third quarters. As a result, we expect to show meaningful improvements to profitability throughout 2024 as we focus on expanding gross margin and reducing operating expenses, while continuing to drive revenue growth and make strategic investments in our business”.
Earlier this month, GameSqaure received an $11m (~£8.7m) investment from Matt Kalish, co-founder of DraftKings, to launch FaZe Media, a creator-led media company. Kalish has also joined the company’s board with FaZe Clan Founder Richard ‘FaZe Banks’ Bengston named FaZe Media CEO.
