Nazara Technologies Ltd. · NSE:NAZARA
Nazara Technologies — Q1 FY24 Earnings Presentation
35 slides from Nazara Technologies's earnings presentation, Jul 28, 2023
Slide 1: Exchange filing cover letter
Nazara Technologies Limited Nazara TM July 28, 2023 To, Listing Compliance Department Listing Compliance Department BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers Exchange Plaza, Plot No. C/1. G Block, Dalal Street, Bandra -Kurla Complex, Bandra (East), Mumbai - 400 0
Slide 2: Nazara Technologies Limited Investor Presentation Q1FY24
Nazara Technologies Limited Investor Presentation Q1FY24 1
Slide 3: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by Nazara Technologies Ltd. (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any sec
Slide 4: Q1FY24: 10 quarters of growth in revenue and profits since IPO
Q1FY24: 10 quarters of growth in revenue and profits since IPO Q1 FY24 saw our revenue grow by 14% YoY to INR 254.4 cr, EBITDA by 10% to INR 33.1 cr & PAT up by 31% to INR 20.9 cr. Our EBITDA margin for Q1 stood at 13.0% Our revenue and EBITDA growth is expected to accelerate in coming quarters due
Slide 5: 14% Revenue Growth, 13.0% EBITDA Margin, 31% PAT growth in Q1FY24
14% Revenue Growth, 13.0% EBITDA Margin, 31% PAT growth in Q1FY24 (All figures in INR Cr) Q1FY24 Q1FY23 YoY% Q4FY23 QoQ% FY23 Revenue from operations 254.4 223.1 14% 289.3 -12% 1,091.0 Content, event and web server 90.4 71.2 133.6 450.9 Advertising and promotion 45.7 65.0 47.3 239.9 Commission 13.7
Slide 6: Gaming, eSports and Adtech margins in Q1FY24
Q1FY24: Gaming margin at 24.6%, eSports at 8.7%; Adtech at 4.8% in Q1FY24 Gaming eSports Q1FY24 Performance (INR Cr) Q1FY24 Performance (INR Cr) Revenue: 109.5 Revenue: 117.8 YoY Growth: 24% YoY Growth: 15% EBITDA (pre-unallocated Corporate EBITDA: 26.9 EBITDA: 10.3 costs): 38.5 Margin : 15.1% YoY G
Slide 7: Segment wise Business Performance
Segment wise Business Performance 6
Slide 8: We have three segments: Gaming, eSports, Adtech
We have three segments: Gaming, eSports, Adtech Gaming eSports Q1FY24 Rev. Contribution: 43% Q1FY24 Rev. Contribution: 46% Adtech Q1FY24 Rev. Contribution: 11% 7
Slide 9: Gaming: Building leading IPs to capture the large gaming market opportunity
Gaming: Building leading IPs to capture the large gaming market opportunity Q1FY24: Revenue: 109.5 Cr YoY Growth: 24% EBITDA Margin: 24.6% Monetization Market Financials Brand / IP Sub-segment Demographics Key Market Model Positioning Q1FY24, INR Cr #1 Grossing app in its category1 Revenue: 79.6 Gam
Slide 10: Gaming -> Kiddopia: #2 Grossing App for Kids in the US
Gaming -> Kiddopia: #2 Grossing* App for Kids (Under 5 years) in the US Geographies: USA 80+%; RoW 20% Gamified Audience: 2-8 years old Early Learning Revenue Model: Subscription Note: * Based on App Annie Top Grossing rank for Kids under 5 in the United States (iPhone) 9
Slide 11: Gaming -> Kiddopia: Revenue up 10%, EBITDA up 67% YoY
Gaming -> Kiddopia: Revenue up 10%, EBITDA up 67% YoY Q1FY24: EBITDA margins at 28.0% Quarterly KPIs +10% Key Metrics Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 57.6 CPT1 ($) $39.3 $37.9 $37.3 $35.9 $39.3 52.5 Marketing Spend (Mn) $2.7 $3.1 $3.4 $3.2 $2.6 28.0% 18.4% Avg. Activation Rate 70% 70% 70% 68% 68%
Slide 12: Gaming -> Animal Jam: #1 Grossing App for Kids (9-11 years) in the US
Gaming -> Animal Jam: #1 Grossing* App for Kids (9-11 years) in the US Gamified Early Learning Geographies: USA 80% RoW 20% Audience: 8-12 years old (80% girls) Revenue Model: IAP, Subscription Note: Ranking Based on App Annie Top Grossing rank for Kids between 9-11 years in the United States (iOS d
Slide 13: Gaming -> Animal Jam: 22.5% EBITDA margin in Q1FY24
Gaming -> Animal Jam: 22.5% EBITDA margin in Q1FY24 Quarterly Financials (INR Cr) • Animal Jam is the key IP of WildWorks Inc, which was acquired 100% Background by Nazara in August 2022 for INR 82 Cr 22.4 22.0 • Improved the analytics back-end to get more actionable insights • Leveraged Datawrkz fo
Slide 14: Gaming -> WCC: India's leading Cricket Simulation game
Gaming -> WCC: India’s leading Cricket Simulation game Geographies: India- 65% of MAU Freemium Audience: 13-45 years old Revenue Model: Advertisement, IAP Retention: ~1.7 Mn Day 1: 46% DAUs (vs. Avg. of 28% for Top 25 casual games in 20221) 10.6 Mn Day 7: 18% MAUs (vs. Avg. of 6.7% for Top 25 casual
Slide 15: Gaming -> WCC: Revamp of the WCC Franchise
Gaming -> WCC: Revamp of the WCC Franchise Key recent business updates • Christopher Franklin joined as the CEO of Nextwave Media CEO Hire • Chris has 20 years in the Game Industry with experience across in game design & studio leadership across GSN, Ludia and EA • Transitioning to online only mode
Slide 16: Gaming -> WCC: Maintaining Revenue growth and profitability
Gaming -> WCC: Maintaining Revenue growth and profitability while setting the stage for future growth Geographical Split Revenue Split 7.2 (MAU Q1FY24) 6.7 (Q1FY24) 4% 38.8% 34.4% 2.6 22% 2.5 96% 78% Q1FY23 Q1FY24 Figures in Rs. Cr Revenue EBITDA EBITDA% South Asia ROW Ad Revenue Others DAU (Mn) MAU
Slide 17: Gaming -> Classic Rummy: RMG business faces regulatory turbulence
Gaming -> Classic Rummy: RMG business faces regulatory turbulence 12.6 11.2 • Tamil Nadu banned all real money games (RMG) games including skill based games like Rummy in April 2023. TN 21.5% 2.2% contributed to ~20% of revenues and active player base 2.7 in FY23. Q1FY24 performance saw an impact du
Slide 18: eSports -> Nodwin: #1 eSports company in India
eSports -> Nodwin: #1 eSports company in India with a 360 degree offering for the eSports fan Robust Flanking Strategy to expand offerings / adjacencies across markets Unpaused Entertainment Live events and IP Gaming & eSports [PSH] business Content IPs Gaming accessories Gaming merch. Asia Pacific
Slide 19: Nodwin declared INR 232 crores of equity investment
eSports -> Nodwin Gaming: Nodwin declared INR 232 crores of equity investment ▪ NODWIN Gaming signed definitive and binding agreements for a funding round of $28M (INR 232 Cr) from marquee new and existing investors ▪ Majority of these funds will be channelized towards a) by growing the emerging mar
Slide 20: Nodwin: Season 2 of Key IP, BGMI Master series, announced
eSports -> Nodwin Gaming: Season 2 of Key IP, BGMI Master series, announced BGMI Master Series 1 (Q1FY23) BGMI Master Series 2 (Q2FY24) Broadcast Summary (Digital + OTT) • First-ever televised BGMI tournament was a collaboration between NODWIN Gaming and Star Sports. The television broadcast garnere
Slide 21: Nodwin: Multiple IPs announced for the coming months
eSports -> Nodwin Gaming: Multiple IPs announced for the coming months 20
Slide 22: Nodwin: Key IPs shifted to Q2FY24, Marketing investments in Wings
eSports -> Nodwin Gaming: Key IPs shifted to Q2FY24, Marketing investments in Wings Media Revenue (%) 15 36 64.4 68.6 Content Views (In Mn) 52 1.3% 103 Distribution (100 hours) 33 0.8 -4.8 43 Q1FY23 Q1FY24 Partners 133 128 Figures in Rs. Cr Revenue EBITDA EBITDA% Q1FY24 Q1FY23 ▪ Revenue Growth – Key
Slide 23: Nodwin: New product launches and Shubman Gill as Wings brand ambassador
eSports -> Nodwin Gaming: With several new product launches and Shubman Gill as brand ambassador, Wings gears up for festive season Q2 and Q3 are peak sales season for Wings 22
Slide 24: Sportskeeda: 52% YoY growth in Revenues & 55% in EBITDA
eSports -> Sportskeeda: 52% YoY growth in Revenues & 55% in EBITDA with over 80mn MAU Sportskeeda Revenue Split by Sportskeeda Revenue Split by +52% Sports2 Geography2 45.8 43.2 43.2 34.2% 7.9 6.0 30.0 33.6% 30.0 7.1 30.0 15.7 4.7 2.7 13.2 10.1 4.0 12.8 12.3 11.6 24.0 Q1FY23 Q1FY24 15.3 15.0 9.6 Fig
Slide 25: Sportskeeda continues to have dominant position across key markets
eSports -> Sportskeeda: Sportskeeda continues to have dominant position across key markets #9 Rank in the US #2 Rank in India #9 Rank in UK Domain Traffic Share MoM Change Domain Traffic Newsbrand Audience YoY espn.com 9.73% 17.72% (May 23) Change cricbuzz.com 61 mn si.com 2.06% 8.04% Sky Sports 6.9
Slide 26: Adtech -> Datawrkz: Focused efforts for future EBITDA growth
Adtech -> Datawrkz: Focused efforts for future EBITDA growth Figures in Rs. Cr Revenue* Gross profit* Gross margin% EBITDA* EBITDA% Increasing Contribution of High Margin Business1 -16% 32.1 15% 26% 28% 32% 42% 27.1 18.4% 22.9% 85% 74% 72% 68% 58% 10.6% 4.8% 5.9 6.2 3.4 1.3 Q1FY23 Q2FY23 Q3FY23 Q4FY
Slide 27: Datawrkz: starting to deliver results for Nazara companies
Adtech -> Datawrkz: starting to deliver results for Nazara companies Datawrkz has helped Animal Jam significantly improve quality of new users acquired $0.83 29% 27% 2.4% 3.2% 3.5% $0.74 23% 20% 1.8% $0.51 18% 1.6% 1.6% 1.5% 1.5% $0.35$0.36 10% 11% $0.28$0.31$0.29 9% Nov Dec Jan Feb Mar Apr May Jun
Slide 28: Stage set for acceleration of growth in the coming quarters
Stage set for acceleration of growth in the coming quarters Gaming eSports Adtech • Kiddopia expected to generate • Relaunch of popular titles, media healthy EBITDA in the coming revenues ramp-up, and a busy • Higher margin businesses (Vizibl and quarters. New revenue streams content / IP calendar i
Slide 29: Our Strategy
Our Strategy 28
Slide 30: We have multiple IPs across the gaming and eSports value chain
We have multiple IPs across the gaming and eSports value chain Gaming eSports Q1FY24 Rev. Contribution: 43% Q1FY24 Rev. Contribution: 46% Adtech Q1FY24 Rev. Contribution: 11% 29
Slide 31: Leading to a diversified business model with multiple growth engines
Leading to a diversified business model with multiple growth engines Revenue by Segment (Q1FY24) EBITDA by Segment (Q1FY24) Adtech 3% Adtech 11% Gaming Gaming eSports 27% 43% 46% 70% eSports Revenue by Geography (Q1FY24) Revenue by Business Model (Q1FY24) Platform Rest of the Fees IAP , 3% World 5%
Slide 32: Demonstrated ability to scale businesses post acquisition
And a demonstrated ability to scale businesses post acquisition FY23 FY23 FY23 Revenues: Revenues: Revenues: 388.7 Cr 122.4 Cr 220.6 Cr 8.6x in 3.8x in 22.9x in 3 years 3 years 5 years Mar’23 Mar’23 FY20 MAU: 71 FY20 Subs: 312K FY18 Revenues: mn Revenues: Mar’22 Revenues: 14.2 Cr MAU: 68 58.2 Cr Ano
Slide 33: Multiple scaled assets with leadership positions in respective segments
Multiple scaled assets with leadership positions in respective segments Gaming eSports Leading New Age Sports Media Platform World’s largest cricket #1 in Grossing Apps in simulation game; #1 eSports Company #2 in Grossing Apps in #9 Multi-sports US (for Kids Under 9- significantly higher in India a
Slide 34: Growth delivered through a strong operating model
This growth is delivered through a strong operating model M&A + Capital Corp Dev + Investor Reporting and Succession Planning Allocation Relations Accounting and Strategic HR Growth and User Brand BI & Analytics Acquisition Monetization Design and LiveOps and Content IP Development Culture and HR Su
Slide 35: Contact Us
Contact Us Company : Investor Relations Advisors : Nazara Technologies Limited CIN: U72900MH1999PLC122970 Strategic Growth Advisors Private Limited Mr. Rakesh Shah Chief Financial Officer Rahul Agarwal / Karan Thakker Ms. Anupriya Sinha Das rahul.agarwal@sgapl.net / Head of Corporate Development kar