FaZe Clan Reports $9M Loss in Q2
FaZe Clan are on one of the biggest esports and gaming lifestyle companies in the world, being a player in games like Counter-Strike: Global Offensive, Fortnite, PUBG, and Valorant, while also associating itself with some of the biggest media personalities in the world like Snoop Dogg. Back in June, they went public and thanks to a merger with B. Riley Principal 150 Merger Corp, a SPAC vehicle.
This move allowed FaZe to be traded on the NASDAQ exchange and the company has now announced that it has made a loss of $9.32 million in the organization’s second quarter of the year. This is the first time that the company has announced its financial results.
FaZe is Not Concerned
FaZe don’t seem to be too concerned for the time being, stating that these investments were necessary to drive the company’s growth strategy.
Lee Trink, who is the Chief Executive Officer of FaZe Clan, had this to say after the announcement of the financial results:
“With our entry into the public markets now behind us, FaZe is focused on monetising across our four verticals: sponsorships, content, merchandise and esports. We are building business momentum into the second half of the year and we are working to launch new business initiatives, particularly in the creator economy and Web3.”
This shouldn’t come as a surprise and isn’t truly reflective of the health of a company that wants to keep growing. According to the reports, there was an increase in revenue to $18.8 million from the $15.8 million last year at the same time. The earnings before interest, taxes, depreciation and amortization (EBITDA) also came up to a loss of $4.1 million compared to the $6.2 million from the same time last year. It’s not all doom and gloom.
The financial report also revealed that FaZe clan had raised $57.8 million in net proceeds after listing themselves on NASDAQ. In recent months, one of the ways FaZe clan has diversified their business has been by launching a business vertical with DoorDash, the food delivery platform, and partnering with Solar Opposites, which is a television show that hosts Fortnite esports tournaments.
Lee Trink has revealed in the past that he would like to see the company makes moves in industries like gambling, ghost kitchens, and fan clubs. “We’ve placed ourselves in the top echelon of a youth culture company, and now, and not just this minute, we have started to shift our focus to monetizing that massive audience. I think that’s really critical for this moment of going public,” he revealed back when the company was going public.
FaZe Continues to Grow
What started as an organization that excelled at the game of Call of Duty has gone on to become a bit unrecognizable in the larger scheme of things. The real surge in popularity came after becoming a dominant force in Counter Strike esports, where they remain the best team in the world. Going public came with a lot of risks on the way but the losses shouldn’t be a worry for the time being. Growing pains is just part of the process when expanding and they’ve had quite a few public feuds with the likes of streamer Turner “Tfue” Tenney and former NBA player who had invested in the company, Meyers Leonard.
FaZe’s growth has been synonymous with the growth of esports over the last decade and they’ve turned themselves into the poster boys of this booming industry. For the time being, fans don’t have to worry too much about how this affects the esports betting teams, who will always remain the primary source of income and interest to the larger public.
