FaZe Clan just released the company’s first financial results since transitioning to a public listed organization. According to the North American organization’s Q2 records of 2022, for the period that came to a close on June 30th, they recorded a net loss of $9.32 million (7.73 million).
The amount is higher than FaZe Clan’s recorded net loss for the second quarter of 2021, which was $7.63 million (£6.33 million).
The gaming and esports company accrued a revenue of $18.8 million (£15.6 million) for the second quarter of 2022, significantly higher than the $15.8 million (£13.11 million) they had in the first quarter of 2022.
FaZe Clan’s total loss for the period for their adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) was $4.1 million (£3.4 million). The amount is certainly better than the organization’s EBITDA recorded loss for the same period in 2021, which was around $6.2 million (5.14 million).
The esports organization also revealed other aspects of their financial report, such as the fact that their listing on Nasdaq under the FAZE symbol enabled them to generate $57.8 million (£47.99 million) in net proceeds.
In July, FaZe Clan merged with a Special Purpose Acquisition Company (SPAC) in the name of B. Riley Principal 150 Merger Corp (BRPM), which enabled them to go public.
When talking about the losses to their most recent investments, FaZe Clan revealed that they were linked to the marketing costs as well as leadership personnel, both of which FaZe Clan explained were put in place to “drive its growth strategy.”
The company is renowned for broadening their reach from competitive gaming to a lifestyle and gaming niche where mainstream pop culture is included. They also branched out to content creation and limited edition merchandise to include new streams of revenue, both of which have been shown to be more profitable than managing competitive teams.
FaZe Clan’s decision to expand their sectors and go public introduced the company to the developing number of esports organizations, conglomerates, and companies that trade publicly. Some of which include Esports Entertainment Group, OverActive Media, Enthusiast Gaming, Astralis, and GameSquare Esports.
While listing their business achievements over the period, FaZe Clan mentioned their Counter-Strike: Global Offensive team’s wins in major tournaments like the IEM Katowice, IEM Cologne, PGL Antwerp Major, and ESL Pro League Season 15.
In July, the esports company partnered with DoorDash, the food delivery platform, to launch a new business vertical. The project was named “FaZe Subs” and provided a selection of sandwiches influenced by several members of the company.
The vertical launch was made after FaZe Clan and DoorDash started their initial partnership in May 2022. Besides the company-inspired sandwiches, both partners would also create “DashDays,” a content series where online viewers could win prizes.
FaZe Clan notably collaborated with Solar Opposites, a Hulu animated TV show. In early July this year, the duo reportedly hosted a new Fortnite tournament together. The partnership was in a bid to promote the show’s third season, which was released in the same month.
“With our entry into the public markets now behind us, FaZe is focused on monetizing across our four verticals: sponsorships, content, merchandise, and esports,” the FaZe Clan Chief Executive Officer, Lee Trink, said. “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.”