FaZe Holdings Inc - Ordinary Shares (FAZE) 14 Nov 222022 Q3 Earnings call transcript

Good afternoon, everyone. My name is Bo, and I will be your conference operator for today. At this time, I would like to welcome everyone to the FaZe Holdings Inc.

Third Quarter 2022 Earnings Conference Call. [Operator Instructions]

you your Counsel, Corporate Johnson], may meeting. begin [Kyrin go ahead. Please

Christoph and Thank Trink, for and Officer. thank joining operator, Chief Chief us. Officer; Lee everyone, are you, you, Financial today With Executive Pachler, me

we statements These made management statements include FaZe comments within statements Before you other of meaning of include for financial timing fact. call product and statements by and other I are plans any of to than during would remind risks begin, and federal statements current that company's the will forward-looking uncertainties. outlook, the management's expectations historical involve this sales forward-looking like These securities Holdings' development on laws. and based and

results factors uncertainties these our of from at may available to discussion statements, I risk a encourage website our For are our fazeclan.com. filings, and which differ SEC to most you on recent materially cause that actual review affect performance or

this non-GAAP call, certain we discuss In addition, during may measures. financial

reconciliations to is also these our contained quarter which non-GAAP release, Additional GAAP directly at fazeclan.com. earnings website in our these is the of measures, available information measures, comparable most third regarding including measures on

date required undertakes this date otherwise time-sensitive The as law, the only call of Except statements to of any by update circumstances no Holdings as the content call. this or contains information, FaZe obligation after of to broadcast. or of conference this accurate revise events reflect

to Trink. our With that, Lee over it is CEO, call to my the pleasure turn

Thanks, have our [Kyrin], all and call. everyone. earnings third hello, Great to quarter for you here

Holdings. today's call quarter first quarter covering of second listing, after a call just our full call hosted public our short highlights we as FaZe While is the

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up revenue totaled driven builds revenue our FaZe's that, category, in again this sponsorships, quarter fourth increased revenue year-over-year, year. activity, XX% content $XX that by the business will third sponsorship of into particularly brand and Our quarter, heading million, indicates be the the pace and esports. trajectory Historically, from case

revenue While the signings we'll are timing filings. that current in be in in public go revenue XXXX, of provided our for deal our can and business, lumpy recognition with achieve projections our line expectations

deal with broadband our Sandbox, call results. partnership we've future several new a Since sponsorship Comcast's in benefit McDonald's, a our mid-August, with service announced Xfinity will of which renewal with last partnerships, and all The exciting including metaverse new

partnership year. During QX, MoonPay, the we crypto payments fully announced leader, deploy with set was foundation to have earlier also this our which infrastructure

in a moment, the more deals in new discuss future. As are in pipeline I'll some near very that to there the we expect exciting sharing be

is in the the to first expenses costs public includes figure an as The quarter. time go nonrecurring. company that transaction. as and related exec EBITDA This loss I in laser-focused do the million focused reported public an not want of our to our also managing $XX growth. go transaction. on adjusted expenses elevated good public is hires those line be recent cost for well news capital transaction and we're clear are on just structure raised We're We the top that that

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into coming You'll hearing our be for plans more business and gaming the key the some bringing early developments generation WebX. weeks and including months, seeing in

over So and Christoph. to it stay I'll tuned, turn

here. hello, Thanks, really Lee, great be and to everybody. It's

what innovative them. Lee build join generation and of to be noted, for convinced opportunity for a is me I've years, managed the industry brands the number help the could one As entertainment next built most to what here that businesses under and of of getting for and work the Directors weeks, all I've the impressive, to with truly since of FaZe. And our fun and just of quality I it's been down team X can Board say is been

I have priorities here X in key early my months.

structure. at closely looking cost our First,

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to leverage to is the several an forward team. and for join to me cash-generating currently and go-forward the valuable. investors. will lines educating brand ecosystem We priority The up more from opportunity, is is central create financially leaning so ramping FaZe I the with to our around can business FaZe highly our much This combination next purchase our look on and model and second both our very our greatly global to relevant that that plan FaZe our thoroughly personally my We're over flywheel. motivated business business FaZe into and community optimizing the on conference calls. the about what it engagement we the is deeply create resources working benefit business that investors opportunities

earnings information these our Now that year-to-date before you that getting so and on filing to the with million. to calls, Form are in XX% to encourage $XX $XX.X note on Revenues with And XX-Q our XX% started, SEC, for filing coincident we I'll up up QX more to million detailed were I review results. performance. the

led esports. Quarterly revenue and performance sponsorships, brand content was by

large of with license brand participation Content part brought brand winnings sale strategy content releases, though exclusive previously around as earned that in price higher content lower-cost, X% we a by increased an sponsorships. to content and and next sponsorships, from category, this revenue higher-cost in performances, smaller in team revenue to generation pulled largest centers YouTube revenue on back XXX% of up creators. strong and from digital [out-of-sources]. was new grew year-over-year sales Our as offset historical Esports products teams on the greenlit our content, benefited certain talent of line favor revenue in larger XX%, our due content league increased

bigger We events revenue grow post live in as COVID. continue to are numbers esports seeing return

in signings Gross did certain the higher consumer year of basis from and and deals. lower over higher-margin of as stronger as and to products. from margins activity to revenue proportion the also on of XX% both X% esports we last gross expiration year-to-date benefited significantly the a quarter XX% contributed lower-margin content in production margin, increased new in sponsorships XXXX The

G&A the third was expenses. part, a year-over-year, more function headcount professional to little was year-to-date incurred expenses. of the reflecting, just as than public in merger fees, note quarter, costs public transaction reflecting loss noted. service of general overhead EBITDA million and increased $XX scale-up that and primarily $XX.X in with go would of transaction, including SPAC of up half public a other loss adjusted the EBITDA Adjusted those significantly and higher support administrative company and nonrecurring the I company large million our associated Higher was new

updates growth suffice discussed, earnings to managing pressures We'll our we've have closely. in outlook say economy. priority and and cost recognition opportunities next the our we but align to our further call, As in our refining with structure that been on structure cost aggressively on of tackling inflationary our we're

up Total KPIs. number totaled of the Snoop to the largest approximately at the that represents which the or The XXX a of business addition our platforms date to network at our totals. subscribe reach, social across ago. million same year A QX, the FaZe on increase or quick XXX fans reach update follow million from user content end of accounts is source approximately aggregate of key Dogg's

ability subscribers, their which of FaZe-branded YouTube and YouTube approximately million driven talent our YouTube with and our channels, to at subscribers a FaZe-affiliated million which on number the has channels. by XXX brand is The end Aggregate metric the up sponsorship strength, from XXX in channel network time same of deals. is year our QX, about our channels, of YouTube a important as the totaled our attract measure affiliate at increase own the turn ago, co-branded signals subscriber

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the more begin outlook our and filings track call, financial meantime, our to which to the will including SEC. through sharing on community, way business expect engagements the in periodic with with our best In progress be March the is with investment keep our We of announcements beginning year. of year-end and next

And back I'll the closing for now remarks. Lee call to turn his

will that gentlemen, and Ladies Inc. you. Thank Holdings today's FaZe conclude

would XXXX Quarter like wish Third Goodbye. I so Call. joining us, all Earnings a much to you thank Conference and for great all day. you I