North American esports organization FaZe Clan has announced a net loss of $53.2 million for 2022 after a loss of $36.9 million in 2021.
The numbers were announced on March 30 thanks to the company’s NASDAQ listing. With the announcement of FaZe Clan’s Q4 and fiscal 2022 results, the team reported a net loss of $19.1 million for Q4 alone. Despite these losses, FaZe Clan’s revenues increased in 2022. Last year, the organization’s revenues exceeded $70 million, up 32% from 2021.
The revenue growth was entirely driven by the increase in brand sponsorship revenue.
In 2022, FaZe Clan formed key partnerships with companies such as DoorDash, energy drink brand GHOST, McDonald’s and Xfinity, among others. Overall, FaZe Clan’s gross profit was $15.2 million, up 63% from 2021 thanks to these partnerships.
While it has been a tough year financially for FaZe Clan, the organization has been competitively successful in multiple games. Last year, FaZe Clan’s CS:GO roster won the PGL Antwerp Major, IEM Cologne, and IEM Katowice. In the past weeks at the beginning of 2023, FaZe Clan won the CS:GO Intel Grand Slam after winning ESL Pro League Season 17.
In addition, the organization’s Call of Duty team has added success to their success even though it was a financially difficult year by winning the Call of Duty Major II at Atlanta FaZe Boston.
However, this success and continued development in other games did not reflect on the stock market, and the company received a warning from the NASDAQ after its stock price remained below the $ 1 threshold for a long time. FaZe Clan currently has a stake of $0.46 on the NASDAQ. At the beginning of 2023, that is, on January 3, the price was $ 1.74 and had a serious trading volume on the stock market. Due to the decline in the NASDAQ, in February 2023, FaZe Clan also suffered a wave of layoffs, citing the current economic environment.
In part of Faze Clan’s Letter to Shareholders, Organization CEO Lee Trink Said:
“In line with our 2022 target, we have taken an important first step towards achieving these targets by generating $70.0 million in revenue. It’s a remarkable achievement, but to be honest we got off to a slower start on this journey than we’d like. Last summer,
when we broke ground for our broader industry by being listed on the NASDAQ, we faced an extremely challenging market and economic environment that slowed our early progress. While we don’t make excuses at FaZe, we reassessed our near-term priorities and goals to align with our capital position, including making tough decisions to size our business right.”
