Nazara Technologies Ltd. · NSE:NAZARA

Nazara Technologies — Q3 FY24 Earnings Presentation

34 slides from Nazara Technologies's earnings presentation, Feb 6, 2024

  1. Slide 1: Nazara Technologies Limited exchange intimation letter

    Nazara Technologies Limited Nazara TM February 06, 2024 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 - 4

  2. Slide 2: Investor Presentation Q3FY24

    Investor Presentation Q3FY24

  3. 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

  4. Slide 4: Q3FY24: EBITDA margin of 11.8%, EBITDA growth of 24%

    Q3FY24: EBITDA margin of 11.8%, EBITDA growth of 24% in Q3FY24 We saw healthy growth in Animal Jam and Sportskeeda resulting in our EBITDA increasing by 24% year-on-year despite softer revenue growth due to a decline in Datawrkz & Openplay revenues. Our EBITDA margin increased from 9.7% in Q3FY23 to

  5. Slide 5: 11.8% EBITDA margin, 24% EBITDA growth and 47% PAT growth in Q3FY24

    11.8% EBITDA margin, 24% EBITDA growth and 47% PAT growth in Q3FY24 (All figures in INR Cr) Q3FY24 Q3FY23 YoY% 9MFY24 9MFY23 YoY% Revenue from operations 320.4 314.8 2% 872.1 801.7 9% Purchase, Content, event and web server 144.3 139.1 361.1 312.0 Advertising and promotion 41.1 56.3 134.2 192.6 Comm

  6. Slide 6: Q3FY24: Gaming margin at 16.4%, esports at 12.6%, Adtech at 13.0%

    Q3FY24: Gaming margin at 16.4%, esports at 12.6%, Adtech at 13.0% Gaming esports Adtech Revenue: 101.5 (-12% YoY) Revenue: 193.7 (+27% YoY) Revenue: 26.1 Cr (-44% YoY) EBITDA: 16.6 (-3% YoY) EBITDA: 24.5 (+79% YoY) EBITDA: 3.4 Cr (-17% YoY) EBITDA Margin: 16.4% EBITDA Margin: 12.6% EBITDA Margin: 13

  7. Slide 7: 9MFY24: Gaming margin at 20.6%, esports at 9.2%, Adtech at 8.7%

    9MFY24 : Gaming margin at 20.6%, esports at 9.2%, Adtech at 8.7% in 9MFY24 Gaming esports Adtech Revenue: 315.4 (+7% YoY) Revenue: 483.5 (+24% YoY) Revenue: 76.3 Cr (-33% YoY) EBITDA: 65.1 (+27% YoY) EBITDA: 44.4 (+44% YoY) EBITDA: 6.6 Cr (-39% YoY) EBITDA Margin: 20.6% EBITDA Margin: 9.2% EBITDA Ma

  8. Slide 8: Our Strategy

    OUR STRATEGY 7

  9. Slide 9: Nazara is well diversified across demographics, geography and business models

    Nazara is well diversified across demographics, geography and business models Revenue by Segment (9MFY24) EBITDA by Segment (9MFY24)* Adtech Adtech 9% Gaming 6% Gaming esports 36% 38% 56% 55% esports Revenue by Geography (9MFY24) Revenue by Business Model (9MFY24) Rest of the World IAP , 11% Platfor

  10. Slide 10: Continued growth trajectory since our IPO

    Continued growth trajectory since our IPO Quarterly Revenue 315 320 289 297 264 254 223 186 175 130 123 131 130 110 91 Q3FY24: Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Highest Quarterly Quarterly EBITDA Revenue and EBITDA

  11. Slide 11: We are well positioned to continue our growth journey for many years to come

    We are well positioned to continue our growth journey for many years to come.. Strengthen core business: Scale: Acquire: • Optimised return from user • Fortify and expand current • Thesis-led, strategic M&A that acquisition spends game franchises aims to build scale in segments • Enhance revenue pre

  12. Slide 12: Track record of successfully scaling assets to leadership positions

    Track record of successfully scaling assets to leadership positions FY23 FY23 FY23 Revenues: Revenues: Revenues: 388.7 Cr 122.4 Cr 220.6 Cr 9x in 4x in 23x in 3 years 3 years 5 years Mar’23 Dec’23 FY20 MAU: 71 FY20 Subs: 273K Revenues: mn Revenues: FY18 Mar’22 Revenues: 14.2 Cr MAU: 68 58.2 Cr Anoth

  13. Slide 13: Gaming

    Gaming esports Adtech Revenues: INR 315.4 Cr Revenues: INR 483.5 Cr Revenues: INR 76.3 Cr EBITDA: 20.6% EBITDA: 9.2% EBITDA: 8.7% Note: Revenue and EBITDA for 9MFY24 12

  14. Slide 14: Gaming: Building leading IPs to capture the large gaming market opportunity

    Gaming: Building leading IPs to capture the large gaming market opportunity 9MFY24: Revenue: INR 315.4 Cr YoY Growth: 6.5% EBITDA Margin: 20.6% Monetization Market Financials Brand / IP Sub-segment Demographics Key Market Model Positioning 9MFY24, INR Cr #1 Grossing app in its category1 Revenue: 239

  15. Slide 15: 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) 14

  16. Slide 16: Kiddopia: EBITDA margin for Q3FY24 at 28.2%

    Gaming -> Kiddopia: EBITDA margin for Q3FY24 at 28.2% Q3FY24: EBITDA margins at 28.2% Quarterly KPIs Key Metrics Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 57.1 54.7 168.6 CPT1 ($) $37.3 $35.9 $39.3 $38.9 $40.9 162.9 Marketing Spend (Mn) $3.4 $3.2 $2.6 $2.7 $2.3 11.7% 28.2% 15.4% 26.3% Avg. Activation Rate

  17. Slide 17: 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 Shivani Gamified Early Learning Quarterly Financials (INR Cr) Geographies: USA 80% RoW 20% Audience: 8-12 years old (Majority girls) 26.8 Revenue Model: IAP, Subscription 22.4 22.0 21.9 22.2% 23.2% 24.0% 11.6% 5.1 5.3 6.0 2.6 Q4F

  18. Slide 18: Animal Jam: Best quarterly performance since acquisition

    Gaming -> Animal Jam: Best quarterly performance since acquisition Quarterly Financials (INR Cr) • Animal Jam delivered its highest quarterly revenue and EBITDA numbers since Nazara acquired it 26.8 • This growth was driven by a very successful set of in app events across 22.4 22.0 21.9 the quarter,

  19. Slide 19: WCC: India's leading Cricket Simulation game

    Gaming -> WCC: India’s leading Cricket Simulation game Geographies: India- 65% of MAU Freemium Key Audience: 13-45 years old Revenue Model: Advertisement, IAP 18

  20. Slide 20: WCC: Reinventing the franchise to position it for future growth

    Gaming -> WCC: Reinventing the franchise to position it for future growth Geographical Split Revenue Split 18.7 18.0 (Revenue Q3FY24) (Q3FY24) 6.7 5.4 29.9% 23.7% 30.8% 25% 31% 2.1 12.5% 5.6 4.3 0.7 56% 69% 19% Q3FY23 Q3FY24 9MFY23 9MFY24 Figures in Rs. Cr Revenue EBITDA EBITDA% USA India ROW Ad Rev

  21. Slide 21: Classic Rummy: New GST regime kicked in from 1st October 2023

    Gaming -> Classic Rummy: New GST regime kicked in from 1st October 2023 New GST Policy: In July 2023, a 28% tax on entry fees for real money games was implemented, effective from October 1, 2023. The impact of increased GST cost has 15.1 43.6 largely been absorbed by all industry players including C

  22. Slide 22: esports

    Gaming esports Adtech Revenues: INR 315.4 Cr Revenues: INR 483.5 Cr Revenues: INR 76.3 Cr EBITDA: 20.6% EBITDA: 9.2% EBITDA: 8.7% Note: Revenue and EBITDA for 9MFY24 21

  23. Slide 23: Nodwin: #1 esports company in India with a 360 offering

    esports -> Nodwin: #1 esports company in India with a 360o offering for esports fan NODWIN GAMING’s vision of gaming for the 21st century Offering for the Nodwin Gaming Fans Building a distributed Revenue and Delivery Network Live Experiences Scripted Content Music Sports NODWIN GAMING Comedy Fans`

  24. Slide 24: Nodwin Gaming: Recent acquisitions propelling expansion

    esports -> Nodwin Gaming: Recent acquisitions are propelling the expansion of product offerings and market presence • In October 2023, Nodwin has acquired a 100% stake in game marketing agency PublishME for a sum of US$ 2 million from its existing shareholders Nazara Technologies Limited and Ozgur O

  25. Slide 25: Nodwin Gaming: Multiple IPs conducted in the last few months

    esports -> Nodwin Gaming: Multiple IPs conducted in the last few months 24

  26. Slide 26: Nodwin Gaming: Gearing up for Q4 with multiple key IPs announced

    esports -> Nodwin Gaming: Gearing up for Q4 with multiple key IPs announced 25

  27. Slide 27: Nodwin Gaming: Q3 and 9M FY24 revenue growth

    esports -> Nodwin Gaming: Q3 and 9M FY24 saw a 20% and 17% revenue growth resp. Figures in INR Cr +17% 50 +20% Media Revenue (INR Crs.) 327.9 68 280.3 133.9 111.4 268 Content Views (In Mn) 407 0.7% 0.8% 0.7 Distribution (100 hours) 90 2.1 91 -2.2 Q3FY23 Q3FY24 -5.8 9MFY23 9MFY24 124 Partners 182 Rev

  28. Slide 28: Sportskeeda: Proven Operational Success in India and US

    esports -> Sportskeeda: Proven Operational Success in India and US The Sportskeeda Playbook • Process led setup to consistently drive efficiencies with each sport having its own P&L Differentiated • Sharp focus on a data-driven approach to dispassionate decision making across all business functions

  29. Slide 29: PFN: Massive Scale-Up Post Acquisition; Achieved Profitability in Q3FY24

    Sportskeeda: PFN – Massive Scale-Up Post Acquisition; Achieved Profitability in Q3FY24 Post Acquisition Actions* Initial Results PFN MAU Growth – 2023 vs 2022 (Millions) • Demand-led content development 14.00 Application of NFL Season Sportskeeda Content • Data Feedback-loop and application of 12.00

  30. Slide 30: Sportskeeda & PFN continue to grow in the US sports media market

    esports -> Sportskeeda: Sportskeeda & PFN continue to grow in the US sports media market Sportskeeda- #6 Rank in Sports Domains in the US PFN- #3 Rank in American Football Domains in the US Domain Unique Visitors (mn) Domain Unique Visitors (mn) espn.com 62.7 nfl.com 30.9 si.com 42.1 thesportsdrop.c

  31. Slide 31: Sportskeeda: 68% revenue and 97% EBITDA growth in Q3FY24

    esports -> Sportskeeda: Stellar performance -> 68% revenue and 97% EBITDA growth in Q3FY24 Figures in INR Cr Figures in INR Cr +68% +57% Revenue Split by Sports Revenue Split by Geography 59.8 147.0 147.0 147.0 19.0 44.6% 31.0 35.6 93.7 33.0% 35.2% 93.7 29.9 38.0% 93.7 26.7 24.6 51.8 21.0 12.4 13.5

  32. Slide 32: Adtech

    Somil Gaming esports Adtech Revenues: INR 315.4 Cr Revenues: INR 483.5 Cr Revenues: INR 76.3 Cr EBITDA: 20.6% EBITDA: 9.2% EBITDA: 8.7% Note: Revenue and EBITDA for 9MFY24 31

  33. Slide 33: Datawrkz: EBITDA margin of 13.0% in Q3FY24

    Adtech -> Datawrkz: EBITDA margin of 13.0% in Q3FY24 as contribution from high margin business increases Figures in INR Cr Revenue* Gross profit* Gross margin% EBITDA* EBITDA% Increasing Contribution of High Margin Business -35% -44% 15% 28% 26% 32% 46.6 41% 37% 114.2 46% 76.3 26.1 85% 27% 20% 31% 7

  34. Slide 34: 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

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