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Published: May 22, 2024

Written by: Stefan Velikov

  • GameSquare recently announced financial details for the first quarter of the year
  • It recorded revenues of $17.7 million and a gross profit of $3.4 million
  • The company acquitted FaZe Clan on Q1 of this year as well

GameSquare said its financial stats reflect the progress it is making on optimizing its business model and investments in long-term growth.

GameSquare Announce Q1 Details

Q1 of 2024 ended in late March and since then companies have been reporting their financial details for the first three months of the year. This includes the esports conglomerate GameSquare Holdings, which owns FaZe Clan and many other popular esports franchises.

According to their recent information, GameSquare Holdings had a revenue of $17.7 million and a gross profit of $3.4 million. The result is much better compared to the same period last year, where the company generated $2.8 million in revenues and $1. million in gross profit. However, it should be noted that the company recorded a net loss of $5.3 million, which is $1 million higher than the same period of last year.

This discrepancy in the overall results could be due to the massive investments that the esports conglomerate has been undergoing recently. In March of 2024, GameSquare purchased FaZe Clan, likely causing the large expenses. Furthermore, the company sold Complexity Gaming to the organization’s Founder Jason Lake for $10.36 million.

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.

Officials Talk About the Company’s Finances

The CEO of GameSquare, Justin Kenna, commented on the esports holding’s financial situation for Q1 of 2024, saying it reflects the company’s strategy. According to him, GameSquare’s first quarter proforma financial performance reflects the progress the company is making by acquiring FaZe Clan. He explained this is a part of the esports holding’s optimization of its business model and an investment for their long-term growth opportunities, and improvement of profitability.

“We believe there are $18 million 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,” Kenna explained. “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.”

Other parties’ predictions seem to confirm Kenna’s statements as GameSquare is expected to improve profitability and accelerate revenue growth in the second half of the year. The company’s management says GameSquare will generate over $100m million in annual revenue, but that remains to be seen.

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