15 August 2023 13:35
FaZe Clan revealed its Q2 2023 financial results. "Second quarter results were led by momentum in our esports business, where live gaming experiences are making a strong comeback and FaZe teams brought home eight more championships. While we are working through a challenging revenue environment overall, our strong cost discipline enabled us to narrow our Adjusted EBITDA loss in the second quarter, and we expect continued action to further benefit the second half of the year," said Lee Trink, Chief Executive Officer. "Behind the scenes we're gaining momentum on the talent front and with our partners expressing increased confidence in the gaming sector, we are looking forward to the second half of 2023."
In a letter to shareholders the organization stated "Revenue for the second quarter was $11.7 million, down from $18.8 million in the prior year, as growth in esports and content revenue was offset by deceleration in brand sponsorship revenue."
"Gross profit was $1.9 million for the quarter, reflecting the lower cost of revenue leverage amid the decline in higher-margin sponsorship revenue. Cost of revenue related to content creation and consumer products declined."
"Beginning in the fall of 2022, FaZe began executing significant cost reductions across its business to support sustainable operations in the currently challenging market environment. While we have significantly improved our underlying cost structure, several items in the second quarter contributed to higher operating expenses year-over-year, including costs related to salaries and severance with respect to restructuring efforts and the timing of stock-based compensation costs associated with the vesting of option grants. As a result, our GAAP operating loss for the quarter increased to $14.4 million."
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