FaZe Clan reports $53 million loss despite increased revenue FaZe Clan \/ NasdaqEsports and gaming lifestyle organization FaZe Clan has released its 2022 Q4 financial results, recording a total of $70 million in revenue, but closes its first financial year as a public company with a $53.2 million net loss. FaZe\u2019s total net loss was actually as high as $168.5 million, but this figure includes a one-off debt extinguishment charge related to going public, with \u2018Legacy FaZe\u2019 debt converted into common stock. The organization boasts that their topline revenue figure was \u201cnear the top of our guidance,\u201d with a 32% year-over-year boost to $70 million. The growth, FaZe says, was \u201cdriven by a nearly 70% increase in brand sponsorship revenue,\u201d as well as growth in their esports operations. The easing of the global pandemic, tournament wins and \u201chigher player transfer fees and league participation\u201d are cited for the boost to esports revenue. However, there was a decline in revenue from \u201cconsumer products\u201d and content, but FaZe says it is \u201cplacing less strategic emphasis\u201d on these parts of their business, in the short term. FaZe net loss exceeds $50 million Despite strong revenue, FaZe operating costs resulted in a total net loss of $168.5 million, or $53.2 million when excluding the debt extinguishment. FaZe list a number of increasing costs \u201cin compensation and benefits due to increased headcount, stock compensation expense, and professional services fees as a result of the growth of the business and of becoming a public company. \u201c Some of these costs the company addressed by laying off staff in February. On their earnings call, FaZe said they estimate that these measures will save approximately 17% in annual headcount expenses. In the last quarter alone, FaZe\u2019s net loss was $19.1 million \u2013 up from $13.6 million in Q4 2021. Despite these losses, FaZe\u2019s $37.8 million in cash and cash equivalents, it says, \u201cwill be adequate to fund our operations and support our investment plans for 2023.\u201d FaZe Clan\u2019s stock woes It\u2019s yet to be seen how the market will react to FaZe\u2019s Q4 financial results, but the picture of the stock\u2019s short time on the public market so far has not been a pretty one. It hit a new all-time low of $0.40 per share on March 20, an alarming decline from the all-time high of over $20 in August 2021. The share price has remained depressed below $1 for more than 30 business days, prompting a deficiency notice from Nasdaq. FaZe has 180 days from the date of the notice to regain compliance \u2013 by maintaining a share price over $1 for 10 consecutive business days \u2013 or will be subject to delisting. FaZe CEO Lee Trink, in his letter to shareholders, said, \u201cWe are optimistic as ever about the future of FaZe Clan. We believe we have a gifted roster of esports athletes and content creators, a talented and dedicated team committed to our mission, and a loyal fan base that continues to grow and engage with our brand.\u201d However, he also admitted that their start to life as a public company wasn\u2019t the strongest: \u201cto be candid, we\u2019ve gotten off to a slower start on this journey than we would have liked.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
FaZe Clan reports $53 million loss despite increased revenue FaZe Clan \/ NasdaqEsports and gaming lifestyle organization FaZe Clan has released its 2022 Q4 financial results, recording a total of $70 million in revenue, but closes its first financial year as a public company with a $53.2 million net loss. FaZe\u2019s total net loss was […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-66554","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/dejan.au\/index.php\/wp-json\/wp\/v2\/posts\/66554","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dejan.au\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dejan.au\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dejan.au\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dejan.au\/index.php\/wp-json\/wp\/v2\/comments?post=66554"}],"version-history":[{"count":0,"href":"https:\/\/dejan.au\/index.php\/wp-json\/wp\/v2\/posts\/66554\/revisions"}],"wp:attachment":[{"href":"https:\/\/dejan.au\/index.php\/wp-json\/wp\/v2\/media?parent=66554"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dejan.au\/index.php\/wp-json\/wp\/v2\/categories?post=66554"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dejan.au\/index.php\/wp-json\/wp\/v2\/tags?post=66554"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}