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GameSquare Announces Preliminary Second Quarter 2024 Results and Provides Business Update

Wednesday, 10 July 2024 08:00 AM

GameSquare Holdings, Inc.

Preliminary Q2 revenue estimated to exceed $27 million

Management reaffirms 2024 annual guidance, and expects proforma revenue of over $100 million and annual gross margin of 22.5% to 27.5%

FRISCO, TX / ACCESSWIRE / July 10, 2024 / GameSquare Holdings, Inc. (NASDAQ:GAME), ("GameSquare", or the "Company"), today announced preliminary financial results for the second quarter ended June 30, 2024, reaffirmed its 2024 annual financial expectations and provided a business update for the second half of 2024. The Company expects to report second quarter financial results and host a conference call with investors on August 14, 2024.

Justin Kenna, CEO of GameSquare stated, "Our strong second quarter top-line results demonstrate the growing success of the platform we have created and a full quarter's contribution of the March 7, 2024, FaZe Clan Acquisition. Positive sales and deal momentum accelerated throughout the second quarter as the value we provide our brand partners expands and we convert more of our pipeline to sales. As a result, we believe we will achieve between $55 and $60 million in revenue during the second half of 2024. In addition, we expect to show a significant improvement in profitability in the second half of the year, benefitting from higher sales, expanded gross margin, and continued operating expense reductions. As a result, we believe we are well positioned to achieve our 2024 guidance."

Preliminary 2024 Second Quarter Financial Results


Q2 2024
(preliminary)
Revenue


Owned and Operated IP
$ 12 million
Agency + Media
$ 13 million
SaaS
$ 2 million
Revenue
$ 27 million

Mr. Kenna concluded, "The first half of 2024 was an exceptionally busy period that included multiple non-core asset sales, and the acquisition and integration of FaZe Clan. As a result, we have upgraded our infrastructure, simplified our business model, reduced our cost structure and strengthened our balance sheet. GameSquare has never been in a stronger position, and global brands are taking notice of the valuable platform we have created. I am extremely excited by the direction we are headed and want to thank everyone at GameSquare for their hard work and dedication throughout the year. I look forward to providing additional details on our success and outlook when we report final second-quarter results in the coming weeks."

GameSquare Reaffirms 2024 Annual Proforma Guidance


2024 First Half Proforma* Results
(preliminary)


2024 Second Half Guidance


2024 Full Year Guidance
(proforma*)







Revenue
$ 50 million


$ 55 - 60 million


$ 100+ million

*2024's annual guidance is based on a proforma basis and includes a full 12 months of contribution from FaZe Clan, which was acquired on March 7, 2024. Guidance also assumes GameSquare continues to fully consolidate the financial results of FaZe Media, Inc.

Additional 2024 Guidance

  • $18 million of annualized cost savings associated with the FaZe Clan acquisition are expected, with the majority of these costs anticipated being removed during the second and third quarters of 2024

  • Management anticipates sequential quarterly improvements to profitability throughout 2024, supported by sales growth, gross margin improvement, and the benefit of cost saving initiatives

GameSquare's financial closing procedures for the second quarter ended June 30, 2024, are not yet complete. It is possible that the final results may differ from the preliminary results, and that the Company's annual 2024 outlook may change from the initial outlook discussed above between now and when results are finalized.

Second Quarter 2024 Earnings Conference Call

GameSquare will release its final second quarter 2024 financial results after the market closes on August 14, 2024. In addition, GameSquare will host a conference call at 5:00 p.m. ET that day to discuss its results and business outlook. The event will be webcast live and can be accessed on GameSquare's Investor Relations webpage.

About GameSquare Holdings, Inc.

GameSquare's (NASDAQ: GAME) mission is to revolutionize the way brands and game publishers connect with hard-to-reach Gen Z, Gen Alpha, and Millennial audiences. Our next generation media, entertainment, and technology capabilities drive compelling outcomes for creators and maximize our brand partners' return on investment. Through our purpose-built platform, we provide award winning marketing and creative services, offer leading data and analytics solutions, and amplify awareness through FaZe Clan, one of the most prominent and influential gaming organizations in the world. With an audience reach of 1 billion digitally native consumers across our media network and roster of creators, we are reshaping the landscape of digital media and immersive entertainment. GameSquare's largest investors are Dallas Cowboys owner Jerry Jones and the Goff family.

To learn more, visit www.gamesquare.com.

Forward-Looking Information

This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of the applicable securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements relate, among other things, to: the Company's and FaZe Media Inc.'s future performance, revenue, growth and profitability; and the Company's and FaZe Media's ability to execute their business plans. These forward-looking statements are provided only to provide information currently available to us and are not intended to serve as and must not be relied on by any investor as, a guarantee, assurance or definitive statement of fact or probability. Forward-looking statements are necessarily based upon a number of estimates and assumptions which include, but are not limited to: the Company's and FaZe Media's ability to grow their business and being able to execute on their business plans, the Company being able to complete and successfully integrate acquisitions, the Company being able to recognize and capitalize on opportunities and the Company continuing to attract qualified personnel to supports its development requirements. These assumptions, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: the Company's ability to achieve its objectives, the Company successfully executing its growth strategy, the ability of the Company to obtain future financings or complete offerings on acceptable terms, failure to leverage the Company's portfolio across entertainment and media platforms, dependence on the Company's key personnel and general business, economic, competitive, political and social uncertainties. These risk factors are not intended to represent a complete list of the factors that could affect the Company which are discussed in the Company's most recent MD&A. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. GameSquare assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.

Corporate Contact
Lou Schwartz, President
Phone: (216) 464-6400
Email: [email protected]

Investor Relations
Andrew Berger
Phone: (216) 464-6400
Email: [email protected]

Media Relations
Chelsey Northern / The Untold
Phone: (254) 855-4028
Email: [email protected]

SOURCE: GameSquare Holdings, Inc.

Topic:
Company Update
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