- Media company GameSquare (NDAQ:GAME) released its financial results for Q2 2024, highlighting record revenue in the face of losses
- In the three and six months ended June 30, 2024, the Texas-based esports company saw Q2 2024 proforma revenue increase 24 per cent year-over-year and expand 22 per cent quarter-over-quarter to a quarterly record of $28.6 million
- However, GameSquare sustained a net loss of $12.0 million in Q2, compared with a net loss of $4.1 million in the year before
- GameSquare stock opened trading at US$1.20 per share
Media company GameSquare (NDAQ:GAME) released its financial results for Q2 2024, highlighting record revenue in the face of losses.
In the three and six months ended June 30, 2024, the Texas-based esports company saw Q2 2024 proforma revenue increase 24 per cent year-over-year and expand 22 per cent quarter-over-quarter to a quarterly record of $28.6 million.
Q2 2024 proforma adjusted earnings before interest, tax, depreciation and amortization (EBITDA) loss improved year-over-year and quarter-over-quarter to $5.4 million, which the company stated demonstrated the benefits of its growth strategies and cost reduction initiatives.
However, GameSquare sustained a net loss of $12.0 million in Q2, compared with a net loss of $4.1 million in the year before.
In a news release on these results, GameSquare CEO Justin Kenna explained that throughout the year, the team has strengthened the company’s balance sheet by raising more than $36 million of non-dilutive capital, raised $6.5 million of capital through a paid advance agreement with Yorkville Advisors Global and repaid the balance of its $5.7 million senior secured convertible note.
“We believe GameSquare has never been in a stronger financial position,” he said. “As we look to the second half of the year, we are extremely excited by the direction GameSquare is headed. We believe our recent results reflect a clear path to reach positive adjusted EBITDA by the fourth quarter, supported by additional revenue growth, higher gross margin, and further operating cost reductions in the second half of the year.”
The team added that the $2.5 million sequential improvement in proforma adjusted EBITDA, supports its efforts to reach profitability by Q4 2024 as the company expects further revenue growth, higher gross margin and additional operating cost reductions to benefit Q3 and Q4 results.
In its 2024 guidance, GameSquare’s leadership expects more than $100 million in annual revenue and annual gross margin to range between 22.5 per cent to 27.5 per cent for the year. This 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.
GameSquare Holdings is an international gaming and esports company with headquarters in Toronto.
GameSquare (NDAQ:GAME) stock opened trading more than 2 per cent higher at US$1.20 per share. In the past month, GameSquare stock has risen 6.06 per cent.
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(Top image: GameSquare Holdings Inc.)