GameSquare Holdings, Inc. Q4 FY2024 earnings call

• Completed acquisition of FaZe Clan in March 2024, split into FaZe Esports and FaZe Media. Divested FaZe Media on April 1, 2025, valued at over $39 million. FaZe Esports had $7.3 million revenue and was EBITDA positive in 2024.
• Platform includes SaaS, agency, media, owned IP, and esports; plan to adjust segment reports in 2025 to align with business view.
• Stream Hatchet's AI tool, Sideqik's growth, and integration of Stream Hatchet and Sideqik into a unified platform.
• Zoned's growth, world building campaigns, and plans to license IP for more in-world games.
• Growth in experiences business, partnership with GGTech for GAMERGY, and collegiate esports initiative.
• FaZe Clan Esports had strong 2024 performance, participation in 2025 Esports World Cup, and plans for performance hub in Dallas.

FaZe Clan: In 2024, FaZe Clan had pro forma revenue of $38 million and pro forma adjusted EBITDA loss of $9.3 million. FaZe Esports generated $7.3 million in revenue and was EBITDA positive. FaZe Media was divested, contributing $27 million to 2024 revenue but no longer consolidating. SaaS and Managed Services: Core SaaS business had gross margins exceeding 70% in 2024. Stream Hatchet launched an AI-powered influencer discovery tool and signed a large contract with Capcom. Sideqik saw strong growth. Agency and Media: Zoned, the creative agency, had a 115% year-over-year revenue increase. World building campaigns in 2024 drove over 125 million minutes of gameplay and $3.9 million in revenue, with expected over 100% growth in 2025. Experiences: GameSquare experiences had a 150% revenue increase from Q3 to Q4 2024 and expects 5x year-over-year revenue growth in 2025 with over 30% gross margin.

• 2025 pro forma revenue guidance: $100 million to $105 million, excluding FaZe Media's $27 million in 2024 revenue.
• Expect positive adjusted EBITDA and cash flow in the second half of 2025, with potential Q2 achievement if deals close.
• Gross margin expected to grow to 20%-25% of sales in 2025.
• Operating expenses expected to improve by $15 million from 2024, with a 10% reduction in Q1 2025.

• Forward-looking statements carry risks of actual results differing from implied statements, as per 10-Q.
• Dependence on successful execution of growth strategies, including deal closures and segment performance.

Q: Greg Gibas inquired about growth expectations for 2025 and color on the outlook.

A: Justin mentioned a healthy mix across businesses, deals in the pipeline, Q2 as an inflection point, and operating expense reduction.

Q: Jack Vander Aarde asked about guidance and segments.

A: Justin explained revenue guidance excluding FaZe Media, a robust pipeline across segments, and focus on cross-selling.

Q: Jack Vander Aarde asked about gaming industry catalysts.

A: Justin talked about IP co-ownership, new game launches, and esports opportunities.