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This represents a 10% year-over-year increase on a pro forma basis.
GameSquare Holdings reported record financial performance for the third quarter of 2024, characterized by significant revenue growth and a substantial narrowing of losses. The company achieved $26.4 million in revenue, representing a 10% year-over-year increase on a pro forma basis. This growth was accompanied by improved operational efficiency, as gross profit rose to $5.2 million with a margin of 19.8%, up from 14% in the prior year.
The company’s focus on cost reduction and integration strategies, particularly following the acquisition of FaZe Clan in March 2024, resulted in a $17 million reduction in annualized costs. Operating expenses decreased to $8.9 million, down from $13.8 million in the same period last year. Consequently, the adjusted EBITDA loss narrowed significantly to $2.2 million, compared to a $10.4 million loss in the third quarter of 2023. To support ongoing operations and growth, the company secured $13.25 million in new senior secured promissory notes and a $10 million convertible note.
Despite these improvements, the company faces ongoing financial challenges, including an accumulated deficit of $95.8 million and a working capital deficiency of $16.6 million as of September 30, 2024. Management remains optimistic, however, forecasting full-year 2024 pro forma revenue between $105 million and $110 million. The company expects to continue its trajectory toward profitability in 2025 by leveraging its integrated media, creative, and technology capabilities to engage youth audiences and expand its client base.
Modern Times Group · 2021
