Popular North American gaming organization FaZe Clan, a well-known name in the eSports space, has reported its financial results for the first time since starting public trading. And let's just say things didn't work out well for them during the last financial quarter.
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As reported by ESports Insider, FaZe reported a major net loss of $9.32 million during the period that ended on June 30th of this year. But that's not even the bad part, as this is actually up from the previous period last year when they recorded a $7.63 million net loss. Still, that doesn't mean that the organization didn't make a good amount of revenue.
The now publicly traded gaming lifestyle company (one of the first) managed to make $18.8 million in revenue during the same time period. Their net loss is due to the company's recent investments in terms of driving growth, which included hiring new leadership and boosting its marketing spending. Of course, that's not where it ends for FaZe Clan.
CEO Lee Trink has this to say about the brand's future when it comes to making money off its image:
"With our entry into the public markets now behind us, FaZe is focused on monetizing across our four verticals: sponsorships, content, merchandise, and esports. We are building business momentum into the second half of the year and we are working to launch new business initiatives, particularly in the creator economy and Web3."
As previously mentioned, FaZe Clan went public earlier this year, after first announcing its intention in October last year. As reported by Washington Post, the company's shares opened at $13 per share on the Nasdaq. Their decision to go public was to try to expand its revenue sources and its international recognition, which Trink believes will be bolstered by the brand's popularity with younger audiences.
The organization started way back in 2010 as a group of Call Of Duty players known for "trickshotting." This is a very stylistic way of playing the first-person shooter, which is said to be indicative of a player's immense skill.
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FaZe's Recent Issues
One cannot clearly attribute the $9.3 million net loss of FaZe to a very specific problem. That would be irresponsible to assume. However, one can't really deny that the organization has had a string of issues doing significant damage to its public image during the past couple of years.
One of these issues is the so-called FaZe Clan Crypto Scandal which made headlines last year. Here is a video from theScore esports explaining the controversy:
Fast forward to 2022, and another issue popped up regarding a Pride post from the brand. In a report by Kotaku, FaZe posted a greeting on Pride Month for members of the LGBTQ community. But FaZe member Talal "Virus" Almalki said that he doesn't support anything involving the LGBTQ community "even if FaZe does." The tweet has since been deleted, but not without various instances of clear homophobia and even racism erupted among the group's fanbase.
Lastly, FaZe member and Canadian Fortnite pro Evan "Cented" Barron was permanently kicked from the organization after making an alleged racial slur on a live stream. In other words, FaZe Clan itself is no stranger to controversy actually has a bit of ways to go when it comes to cleaning up its image.
Related: Activision Allegedly Suspends FaZe Clan's Kalei for 'Oversexualized Tweets'
