GameSquare Holdings, Inc. (NASDAQ:GAME) Q1 2024 Results Conference Call May 20, 2024 5:30 PM ET

Company Participants

Justin Kenna - Chief Executive Officer
Mike Munoz - Chief Financial Officer

Conference Call Participants

Sean McGowan - ROTH Capital Partners

Operator

Good afternoon, and thank you for joining us for the GameSquare Holdings 2024 First Quarter Conference Call. On the call today, we have Justin Kenna, GameSquare's CEO; Lou Schwartz, President; and Mike Munoz CFO. [Operator Instructions].

Before management discusses the results, I'd like to remind everyone that certain statements on this call may be forward-looking in nature. These include statements involving known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied in our forward-looking statements. For information about forward-looking statements and risk factors, please see our 10-Q for the quarter ended March 31, 2024, which is available on the company's website or with the Securities and Exchange Commission.

I would now like to turn the call over to GameSquare's CEO, Justin Kenna. Justin, please go ahead.

Justin Kenna

Thank you, and good afternoon to everyone joining us on today's call. I'm extremely excited to review the progress we're making at GameSquare as we pursue strategic priorities aimed at creating a fast-growing, highly profitable next-generation media business. Activity across our business is extremely high, and we're making significant progress optimizing our business model, investing in long-term growth and improving profitability. While we still have work to do, we believe our pro forma results demonstrate the meaningful accomplishments we are making to create lasting value for our shareholders.

With all the actions we've taken over the past 1.5 years or a year's time today to review our recent M&A activities, our vision for FaZe Clan, the progress we are making, reducing costs and the go-forward strategies that we're pursuing to drive profitable growth. I'll then turn the call over to Mike, who will review our first quarter results in more detail.

As a reminder, in December 2023, we completed the $3.4 million sale of Frankly's noncore radio business assets. In March 2024, we completed a $10.4 million sale of Complexity Gaming and also in March of 2024, we completed the all-stock acquisition of FaZe Clan that was valued at approximately $14 million. In addition, we recently sold 49% of FaZe Media for $11 million, allowing us to retain voting control and continue consolidating FaZe Media's results in our financial statements. The vast majority of FaZe Clan's historic burn has been associated with the assets of FaZe Media. So this new capital will support FaZe Media and position the combined business with profitability in the coming quarters.