FaZe Clan Reports $14M In Losses

Q1 was rough sailing for FaZe Clan, continuing trends seen across esports

Legacy esports organization, FaZe Clan, continues to struggle for profitability. According to a shareholder deck posted by FaZE, the company reported roughly $14 million in losses for Q1 2023. A significant dip from the net loss of $9.5 million the previous year. The news comes as another major blow for FaZe as they aim to avoid delisting from NASDAQ.

The 2021 Call of Duty League champions saw losses in both content revenues and partnerships. And according to reporting from Tobias Seck of The Esports Advocate, FaZe revenues from content dropped from $4.6 million to $3 Million since Q1 2022. And on the sponsorship side, they dropped from $8 million to $6.2 million. In total, FaZe revealed that they have a year-over-year decline of $3.2 million. In regards to stark differences in numbers FaZe says:

“Q1 2022 revenues were unusually high due to a one-off library deal for the content of one of our talent, and a high-budget, high-revenue content strategy, which the company ultimately abandoned.”

Ultimately the company was only able to profit $469,000 in Q1 2023 much less than the $3 million from Q1 2022.

This news hits as FaZe is also recovering from the loss of high-profile team members like Snoop Dogg (potentially the aforementioned talent) who also served on their board of directors. According to Kotaku’s Luke Plunkett, the Long Beach rapper left the company back in March, leaving FaZe unable to execute many of its social media marketing plans. FaZe says they plan to continue its commitment to fostering talent. They stated:

“[We want to] diversify our reach by introducing non-gaming talent to our gaming universe. This approach aims to showcase the diverse and dynamic nature of FaZe as an organization that transcends the boundaries of traditional gaming and esports.”

FaZe Clan made history as the first esports organization to go public on NASDAQ back in 2022. Since then the road to growth has been hard. Their current stock price per share (as of 3pm May 16, 2023) sits at $0.55. A far cry from their high of $20.88 back in August of 2022 and value loss of nearly 94.4%