FaZe Clan Reveals $9.2m Loss In Business Update
In the last year, FaZe Clan has gone from strength to strength. From its esports teams winning countless victories to being one of the first brands of its kind to be listed on the NASDAQ, FaZe Clan has climbed to impressive, new heights in the last twelve months. However, in the first financial update posted since FaZe Clan was listed on the NASDAQ, the firm revealed a net loss in Q2 of 2022 worth some $9.3m.
It wasn’t necessarily a bad quarter for FaZe Clan, as the report went on to detail a total revenue of $18.8m for the three-month period ending June 30th, 2022. In the update, FaZe Clan’s executives stated that the losses were attributed to extensive investments and marketing costs that arose out of a desire to ‘drive (FaZe Clan’s) growth strategy)’. Overall, FaZe Clan is reporting consistent growth for 2022, despite the loss – compared to Q1 of 2022, the firm is up 19% in total revenue.
FaZe Forging The Way
FaZe Clan has been making mega waves in several ways in the last year. For a decade, the leadership team behind the organisation has been working hard to build a brand that stands out from the crowd. When FaZe Clan was listed on the NASDAQ just weeks ago, it became the first organisation of its kind to do so. Since then, things have gone relatively well, and following the listing, the firm raised more than $57m in net proceeds.
If we look back through 2022, we can pick out partnerships between FaZe Clan and the likes of DoorDash and the NFL, and a whole host of new content creator signings. There is a huge amount planned for FaZe, according to the leadership team, and in the coming months, the organisation is going to push into new realms, according to CEO, Lee Trink:
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 momentum into the second half of the year and we are working to launch new business initiatives, particularly in the creator economy and Web3.
In the financial update, a string of key highlights was published, revealing FaZe Clan’s biggest moves in the few months:
- Signed four new members with a collective following of 18 million.
- Announced partnerships with GHOST, Current, and RESPAWN.
- Released merchandise collaborations with Disney, Naruto Shippuden, and Lyrical Lemonade.
- Partnered with Totino’s to produce FaZe Clan Buffalo Chicken flavour pizza rolls.
To cap it all off, FaZe Clan’s esports teams have performed remarkably well in the last year. There’s a particular mention owed to the CSGO team, which in the last year has won the top prize at IEM Cologne and Katowice, ESL Pro League S15, and the PGL Antwerp Major.