Updates Revenue Guidance Management to host a webcast on Thursday, January 20, 2022, at 4pm EST
TORONTO, ON / ACCESSWIRE / January 18, 2022 / GameSquare Esports Inc. (CSE:GSQ)(OTCQB:GMSQF)(FRA:29Q1) ("GameSquare", or the "Company") announces that it has updated its revenue guidance for Q4 2021 to approximately $7.5 million; GameSquare reported $2.5 million of sales in Q3 2021. The Company has provided revenue guidance of $28 million for 2022, which remains unchanged. GameSquare transitioned to a December 31 year end, therefore Q4 2021 includes results from September through December. The financial performance includes a full quarter of contribution from Complexity Gaming, Cut+Sew, GCN, and Code Red. GameSquare management expects to release its audited 2021 financial statements in April 2022. The Company will host a webcast Thursday, January 20, 2022, at 4pm EST to discuss recent operational highlights with full details at investors.gamesquare.com or register via bit.ly/3Ibqich.
"The progress we have made to provide revenue guidance of $7.5 million for Q4 2021 is a reflection of our stellar people, products, relationships, and relentless attention to monetization throughout the Company," said Justin Kenna, CEO of GameSquare. "We have streamlined our sales processes and have fostered relationships with global brands throughout 2021. This work reinforces our foundation for achieving our revenue guidance of $28 million in 2022. In addition, we have several exciting opportunities to build recurring revenue within our existing business, and we are developing new businesses that are expected to be profitable from the outset. In my view, this a strong finish to 2021 and a great start to 2022."
The revenue guidance described in this press release is unaudited and is subject to change in connection with the completion of the Company's year-end accounting procedures. Accordingly, investors should not place undue reliance on this information.
Strategic Priorities and Near-Term Catalysts
- Grow sales within our digital agency vertical: GameSquare is building a leading esports and gaming organization with digital media and marketing agencies that connect brands with the large and growing esports and gaming audiences. The Company is focused on guiding brands to authentically connect with an affluent and influential demographic within the gaming ecosystem. Our unique mix of assets focused on influencer representation, marketing and go-to-market strategies, and our media stack enables us to work with endemic and non-endemic brands to strategize, plan and execute on bespoke campaigns.
- Create compelling content: Complexity Gaming generated more than 3.2 billion viewer minutes in 2021, giving GameSquare an excellent base to build upon and to monetize its assets more fully. A key strategic priority for the Company is to consistently create compelling content that engages our audience and attracts new fans and viewers to the Complexity platform.
- Enhance our social presence to grow audience: TheCompany will seek to enhance its social mediapresence through our portfolio companies and, importantly, through the rapidly growing streamers and content creators within Complexity Gaming including global talent such as TimTheTatman, Baka Bros, Ninjayla, Electra, and the professional athletes and celebrities within Complexity Stars. Adding top tier talent under the Complexity brand creates a virtuous circle as streamers and content creators can grow their audience by interacting with others on team Complexity. By adding more authentic touch points with Complexity fans, we will strive to grow engagement, and by understanding our audience, we can deliver more content that our fans want to see.
- Grow brand relationships: The Company has consistently built, and expanded, brand relationships across Code Red, GCN, Cut+Sew, and Complexity Gaming. By creating compelling content and expanding engagement with our audiences, GameSquare offers brands a unique platform to engage with gaming and esports enthusiasts through sponsorships, branded content, merchandise collaborations, creative campaigns, esports and gaming tournaments, and influencer campaigns. Additionally, the Company has numerous subject matter experts that guide brands through consulting engagements to understand the gaming ecosystem and develop strategies to engage with gamers.
- Develop new revenue streams: GameSquare has identified four lines of business that it believes can accelerate sales growth and realization of profitability; 1) increased investment in merchandise, 2) monetization of streaming talent, 3) agency of record with professional sports franchises and global brands, and 4) world-class events to be held at The Star in Frisco and other top tier venues. The Company has made significant progress within the merchandise vertical, following the announcement of TimTheTatman, and an increase in the volume of brand deals which it believes is the result of investment in sales and increased awareness of the GameSquare and Complexity brands as illustrated by our revenue guidance for Q4 2021. The Company continues to develop strategies to work with and leverage its relationship with the Dallas Cowboys as well as other professional sports franchises and consumer brands. The Company sees tremendous opportunities to work with these clients to develop and execute strategies to connect iconic brands and franchises with gamers, authentically.
- Enhance liquidity and accessibility: Management is currently assessing potential opportunities to enhance access to GameSquare stock. We believe that providing North American and global investors improved access to transact in GameSquare stock could have a positive impact.
- Expand our shareholder base in Canada and the US: Increasing interest in esports, particularly within the large and growing US market, presents an opportunity to grow our shareholder base. Management has identified new shareholders as an important priority in 2022. Commencing trading on the OTCQB was an excellent first step in growing our shareholder base and reaching new investors.
Operational Highlights
The Company has made significant progress since going public in October 2020. Following a period of active M&A, having acquired Code Red, Reciprocity, Complexity Gaming, and Cut+Sew, management has turned its attention to integration and accelerating revenue growth with a focus on profitability. The following is a sample of recent announcements, with all press releases available at SEDAR.com;
- Commenced trading on the OTCQB with the ticker GMSQF in December 2021;
- Baka Bros, with more than 1.5 million followers, joined Complexity Gaming;
- Launched Complexity Stars, a new gaming division that connects athlete and celebrity gamers with the larger gaming community. The division debuted with a roster of superstars including J.R. Smith, Allisha Gray, Max Holloway, Sean O'Malley, Megan Anderson, Leonard Fournette, Ronnie Stanley, and Edwin Rios from the NBA, WNBA, UFC, NFL, and MLB;
- NFL teamed up with GCN, a GameSquare Company, to host the 2nd Annual Madden NFL 22 x HBCU tournament with 16 finalists to compete in Los Angeles during Super Bowl LVI week;
- Reported strong sequential revenue growth in Q3 of $2.5 million and announced that the Company had generated in excess of $3.5 million of revenue in Q4 as of October 28, 2021;
- Completed the Bagel Bites "Unexpected Combinations" relay race with GCN. The Bagel Bites brand is a part of The Heinz Kraft Company which operates in more than 25 countries and owns dozens of household global brands;
- Announced the addition of Tom Walker, CFO of the Dallas Cowboys and CFO of the Jones Family Businesses, and Travis Goff, President of Goff Capital, to the GameSquare Board of Directors;
- TimTheTatman, one of gaming and esports' biggest personalities, joined Complexity Gaming and GameSquare esports.