FaZe Holdings Inc.

FaZe reported full-year 2022 revenue of $70 million, with management saying it aligned with plan and was primarily driven by brand partnerships. Adjusted EBITDA loss was $33.6 million, including ongoing public-company compliance expenses and higher headcount. The company ended the year with $37.8 million in cash. For 2023, management did not provide formal guidance because of macro uncertainty, but said it expects revenue growth and a significant narrowing of adjusted EBITDA loss, helped by cost reductions, a 17% reduction in annual headcount expenses, and exiting capital-intensive content initiatives.

Lee Trink framed 2022 as a year of building the FaZe brand while operating in a difficult post-IPO market. He emphasized progress with blue-chip partners like Porsche and Nike, a roster refresh focused on high-engagement talent, and esports success, including FaZe Clan's 38th championship and the Intel Grand Slam. His tone was confident but pragmatic, stressing that the company has reset 2023 goals to fit its capital position and is focused on getting to profitability over time.

Christoph Pachler said 2022 revenue of $70 million was driven mainly by brand partnerships, which he described as diverse and high margin. He pointed to a $33.6 million adjusted EBITDA loss, citing public-company compliance expenses and higher headcount, and said workforce streamlining should cut annual headcount expenses by 17% with additional operational savings. He said the company ended with $37.8 million in cash and is continuing to look for ways to enhance the capital structure while planning for growth and a narrower loss in 2023.

An analyst asked whether 2022 sponsorship figures are repeatable in 2023 and about contract length. Lee Trink said sponsorship deals are typically a year or longer and noted that FaZe had 15 significant brand partnerships in 2022, up from 12 the prior year, with a robust pipeline of new deals and renewals. Another question asked how much Nike and Porsche contribute individually; Christoph Pachler declined to disclose deal values, but said those partnerships have opened additional doors and strengthened FaZe's brand beyond the direct revenue they generate.