GameSquare Announces Preliminary Third Quarter 2024 Results and Provides Business Update
GameSquare Holdings (NASDAQ:GAME) announced preliminary Q3 2024 results and increased its 2024 annual proforma revenue guidance. Key points include:
- Estimated Q3 revenue exceeding $26.5 million
- Expected adjusted EBITDA loss of approximately $2.4 million, a $3.0 million improvement from Q2 2024
- Increased 2024 annual proforma revenue guidance to $105-110 million
- Q3 gross margin estimated at 18%, up from 14.8% in Q2 2024
- Anticipates sequential quarterly improvements in profitability throughout 2024
The company reported strong performance in customer retention, contract value growth, and UEFN world building campaigns. GameSquare will release final Q3 2024 results on November 14, 2024.
- Q3 revenue estimated to exceed $26.5 million
- Adjusted EBITDA loss improved by $3.0 million compared to Q2 2024
- Increased 2024 annual proforma revenue guidance to $105-110 million
- Q3 gross margin improved to approximately 18% from 14.8% in Q2 2024
- 46% growth in average contract value
- More than tripled the number of UEFN world building campaigns deployed
- Achieved record monthly contract wins in August 2024
- Expects $18+ million in cost savings from FaZe Clan acquisition for 2024
- Expected adjusted EBITDA loss of approximately $2.4 million in Q3 2024
- Start-up costs associated with new programs partially offset gross margin improvements
Insights
GameSquare's preliminary Q3 results show promising growth and improved profitability. Revenue is estimated to exceed
Notably, GameSquare has increased its 2024 annual proforma revenue guidance to
The diversified revenue streams across Owned and Operated IP, Agency + Media and SaaS demonstrate a robust business model. With improving metrics such as a
GameSquare's business update reveals significant market traction in the gaming and digital media space. The company's success in increasing retainer customers and tripling UEFN world building campaigns indicates growing demand for its services among brands targeting Gen Z, Gen Alpha and Millennial audiences.
The acquisition of FaZe Clan, a prominent gaming organization, has strategically positioned GameSquare in the esports and gaming content creation market. This move aligns with the industry trend of consolidating media, entertainment and technology capabilities to offer comprehensive solutions to advertisers and brand partners.
The company's focus on data analytics and creative services caters to the increasing need for measurable ROI in digital marketing campaigns. As the gaming industry continues to grow and attract more advertising dollars, GameSquare's platform approach and diverse service offerings position it well to capitalize on this trend. The improved financial outlook suggests that the company is gaining market share and validating its business model in a competitive landscape.
Preliminary Q3 revenue estimated to exceed
Expected adjusted EBITDA loss of approximately
As a result of strong Q3 and YTD performance, GameSquare has increased its 2024 annual proforma revenue guidance to
FRISCO, TX / ACCESSWIRE / October 17, 2024 / GameSquare Holdings, Inc. (NASDAQ:GAME), ("GameSquare", or the "Company"), today announced preliminary financial results for the third quarter ended September 30, 2024, and provided a business update for the fourth quarter of 2024. The Company expects to report third quarter financial results and host a conference call with investors on November 14, 2024.
Justin Kenna, CEO of GameSquare stated, "2024 is shaping up to be a transformative year for GameSquare, as we benefit from the strategies underway to drive organic sales growth, complete the integration of our recent acquisitions, and build a profitable organization. Our performance during the third quarter of 2024 demonstrates the progress we are making and the positive momentum underway as we execute against these initiatives."
"Over the past nine months, we have increased the number of customers on retainer, grown our average contract value by
"With the strong performance during the third quarter and year-to-date, we are increasing our annual revenue guidance and now expect annual proforma revenue of
Preliminary 2024 Third Quarter Financial Results
|
| Q3 2024 (preliminary) | ||
Revenue |
|
|
| |
Owned and Operated IP |
| $ | 9.4 million |
|
Agency + Media |
| $ | 15.5 million |
|
SaaS |
| $ | 1.6 million |
|
Revenue |
| $ | 26.5 million |
|
The Company currently estimates that 2024 third quarter gross margin was approximately
GameSquare Increases 2024 Annual Proforma Guidance
|
| 2024 Nine Months Proforma* Results (preliminary) |
|
| 2024 Full Year Guidance (proforma*) |
| ||
|
|
|
|
|
|
| ||
Revenue |
| $ | 78.6 million |
|
| $ | 105 million - 110 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 Includes
$18 + million of cost savings associated with the FaZe Clan acquisition are expected for the 12 months ended December 31, 2024, compared to 12 months ended December 31, 2023Management 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 third quarter ended September 30, 2024, are not yet complete. It is possible that the final results may differ from the preliminary results, and that the Company's fourth quarter and annual 2024 outlook may change from the initial outlook discussed above between now and when results are finalized.
Third Quarter 2024 Earnings Conference Call
GameSquare will release its final third quarter of 2024 financial results after the market closes on November 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 one of the largest gaming media networks in North America, as verified by Comscore, 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: ir@gamesquare.com
Investor Relations
Andrew Berger
Phone: (216) 464-6400
Email: ir@gamesquare.com
Media Relations
Chelsey Northern / The Untold
Phone: (254) 855-4028
Email: pr@gamesquare.com
SOURCE: GameSquare Holdings, Inc.
View the original press release on accesswire.com
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