GameSquare stock rallies on Q2 financial update

• Media company GameSquare (NDAQ:GAME) stock rose more than 12 per cent by mid-morning after it reported Q2 2024 financial results
• Its preliminary Q2 revenue estimated to exceed US$27 million
• Management’s 2024 annual guidance forecasts proforma revenue of more than US$100 million and annual gross margin of 22.5 per cent to 27.5 per cent
• GameSquare stock opened trading at US$1.15 per share

Media company GameSquare (NDAQ:GAME) stock rose more than 12 per cent by midday Wednesday trading on its Q2 2024 financial results.

In its financial results for the quarter ended June 30, the company reaffirmed its 2024 annual financial expectations and provided a business update for the second half of the year.

“Positive sales and deal momentum accelerated throughout Q2 as the value we provide our brand partners expands and we convert more of our pipeline to sales,” GameSquare’s CEO, Justin Kenna, explained in a news release. “As a result, we believe we will achieve between $55 (million) and $60 million in revenue during the second half of 2024. In addition, we expect to show a significant improvement in profitability in the second half of the year, benefitting from higher sales, expanded gross margin, and continued operating expense reductions. As a result, we believe we are well-positioned to achieve our 2024 guidance.”

“The first half of 2024 was an exceptionally busy period that included multiple non-core asset sales, and the acquisition and integration of FaZe Clan,” he added. “As a result, we have upgraded our infrastructure, simplified our business model, reduced our cost structure and strengthened our balance sheet. GameSquare has never been in a stronger position, and global brands are taking notice of the valuable platform we have created.”

The company expects $18 million of annualized cost savings associated with the FaZe Clan acquisition.

The company plans to report its Q2 financial results and be host of a conference call with investors Aug. 14, 2024.

GameSquare Holdings is an international gaming and esports company with headquarters in Toronto.

GameSquare (NDAQ:GAME) stock opened trading at US$1.15 per share. In the past month, GameSquare stock has risen 2.6 per cent.

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(Top image: GameSquare Holdings)