17-Aug-2024, 12:42 PM.
In the second quarter of 2024, GameSquare Holdings, Inc. (NASDAQ: GAME) achieved a notable 24% year-over-year increase in proforma revenue, reaching a record $28.6 million. This figure also reflects a 22% rise compared to the previous quarter, underscoring the effectiveness of the enhanced operating platform and the company’s successful growth strategies.
The adjusted EBITDA loss for Q2 2024 showed significant improvement, decreasing to $5.4 million from previous levels, illustrating the positive impact of cost-saving measures and growth initiatives. The company recorded a sequential enhancement of $2.5 million in adjusted EBITDA, bolstering its aim to attain profitability by the end of 2024. Despite the strong revenue growth, GameSquare reported a net loss of $12 million for the quarter.
However, the company remains optimistic about its prospects, anticipating further revenue growth and an increase in gross margins, alongside additional reductions in operating expenses, which are expected to positively influence the results for the third and fourth quarters.
Justin Kenna, the CEO of GameSquare, commented on the results, stating, “We have achieved remarkable growth and set a new quarterly revenue record, highlighting the advantages of our next-generation media platform. Our Q2 revenue of $28.6 million represents a 22% increase over our proforma revenue from the first quarter of 2024.”During the second quarter, the company implemented strategies aimed at enhancing its business model and improving operational efficiency, which resulted in a $2.5 million increase in proforma adjusted EBITDA over the last three months. Furthermore, in 2024, GameSquare has fortified its financial standing by securing over $36 million in non-dilutive capital, along with $6.5 million in a paid agreement with Ville Advisors, and has successfully repaid the remaining balance on a $25 million senior convertible note.
Kenna emphasized, “GameSquare is currently in its strongest financial position. As we progress into the second half of the year, we are enthusiastic about the path ahead. Our recent achievements signify a clear route to achieving positive adjusted EBITDA by Q4, bolstered by further revenue increases, improved gross margins, and continued operational cost reductions. “Despite the net loss, GameSquare’s strong revenue growth, improved adjusted EBITDA, and strategic initiatives demonstrate the company’s resilience and potential for future success in the gaming and esports industry.
