Nazara Technologies Ltd. · NSE:NAZARA
Nazara Technologies — Q3 FY23 Earnings Presentation
37 slides from Nazara Technologies's earnings presentation, Jan 24, 2023
Slide 1: Nazara Technologies Limited
Nazara Technologies Limited Nazara TM Date: January 24, 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, Mumbai - 400 001. Bandra -Kurla Complex, Ba
Slide 2: Investor Presentation Q3 FY23
Nazara Technologies Limited Building from India for the World Investor Presentation Q3 FY23
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: Strong 9MFY23 Performance: Revenue growth of 80%, EBITDA of INR 820 million
Strong 9MFY23 Performance: Revenue growth of 80%, EBITDA of INR 820 million, PAT growth of 22% Consolidated Performance (INR Million) Consolidated Revenue We continue to have an excellent year, with 80% y-o-y Revenue growth in 9M FY23, and 22% PAT growth in the 8,017 same period. All our five busine
Slide 5: Strategic Overview
Strategic Overview
Slide 6: Diversified business model with presence in five segments and multiple markets
We have built a diversified business model with presence in five segments and multiple markets A diversified business model provides us multiple levers of growth, and help us mitigate industry headwinds affecting one segment eSports Gamified Early Learning Adtech Freemium Skill based RMG Revenue by
Slide 7: Nazara DNA: strategic philosophy guiding profitable growth
Nazara DNA-> Our strategic philosophy serves as a guide for future profitable growth Long Term Mindset - Nazara was incorporated in 1999, and has an operating history of more than 23 years - Demonstrated ability to prioritise long term gain despite short term pain in multiple situations Driving Prof
Slide 8: Playbook enabling businesses to unleash their full potential
We have a playbook enabling our businesses to unleash their full potential What we provide support for in our companies: - Product Design 01 - User acquisition and retention - Hiring - Mergers and Acquisitions Support Infuse “Nazara DNA”: ü Long Term Mindset ü Driving Profitable Growth What we chang
Slide 9: Successfully deployed the playbook to scale our businesses (1/2)
We have successfully deployed the playbook to scale our businesses (1/2) FY22 FY22 FY22 Revenues: Revenues: Revenues: 2,108 mn 792 mn 2,044 mn 5.6x in 3.5x in 12.4x in 2 years 2 years 4 years FY20 FY20 FY18 Revenues: Strong growth in Revenues: Revenues: 142 mn US Sports- NBA, 582 mn Global leader NF
Slide 10: Successfully deployed the playbook to scale our businesses (2/2)
We have successfully deployed the playbook to scale our businesses (2/2) 9MFY23 9MFY23 Revenues1: Revenues: 1,182 mn 406 mn YoY : 28% YoY : 55% 9MFY22 9MFY22 Revenues: Revenues: 3172 mn Google play allowed Built presence in to run pilot of real 764 mn money games in India EMEA and increased the numb
Slide 11: Continue to scale five verticals through organic growth and M&A
We will continue to scale our existing five verticals through organic growth and M&A eSports Gamified Early Learning Adtech Freemium Skill based RMG • Continued focus on • Esports market • Growth in subscriber • Built on-ground product to drive • Continue to build real dominance in India base at imp
Slide 12: Structured capital allocation framework at Nazara
We have a structured capital allocation framework at Nazara M&A Flywheel at Nazara Capital Allocation Framework at the Subsidiaries Capital accrues Nazara uses cash flow to Organic Growth: to Company/ acquire Invest for growth Nazara to fund companies of the business further acquisitions M&A: Enhanc
Slide 13: Regulatory Impact: MeitY proposed new IT Rules for real money games
Regulatory Impact: In a positive development, the MeitY proposed new IT Rules to cover skill based real money games (i.e., RMG) Key Changes Proposed Impact on Nazara • In December MEITY (Ministry of Electronics and Information • In terms of specific business impact, this regulation only Technology)
Slide 14: Q3 and 9MFY23 Results
Q3 and 9MFY23 Results
Slide 15: Diversified business model, consistent track record of profitable growth
Our diversified business model -> consistent track record of profitable growth Revenue (in Rs. Mn) 3,148 8,017 +69% +80% 1,858 4,466 1,304 3,308 Q3FY21 Q3FY22 Q3FY23 9MFY21 9MFY22 9MFY23 EBITDA (in Rs. Mn) 9M FY23 EBITDA Margin : 10.2% 303 306 797 820 276 331 Q3FY21 Q3FY22 Q3FY23 9MFY21 9MFY22 9MFY2
Slide 16: Strong performance: All growth engines firing in 9MFY23 (1/3)
Strong performance: All growth engines firing in 9MFY23 (1/3) Consolidated Revenue (INR Million) 8,017 198 399 436 +80% 1,143 4,466 1,927 156 476 180 1,531 3,914 2,123 9MFY22 9MFY23 eSports Gamefied Early Learning Ad-Tech Real Money Gaming Telco Freemium EBITDA: 797 EBITDA: 820 million million 15
Slide 17: Strong performance: All growth engines firing in 9MFY23 (2/3)
Strong performance: All growth engines firing in 9MFY23 (2/3) (All figures in Rs. Mn) 9MFY23 9MFY22 YoY% Q3FY23 Q3FY22 YoY% Revenue by business segments i. Gamified early learning 1,927 1,531 26% 804 472 70% ii. eSports 3,914 2,123 84% 1,525 1,093 40% iii. Adtech 1,143 - 55%1 466 - 57%1 iv. Freemium
Slide 18: Strong performance: All growth engines firing in 9MFY23 (3/3)
Strong performance: All growth engines firing in 9MFY23 (3/3) Revenue growth of 80% in 9MFY23- multiple growth engines firing; EBITDA of 820 million (EBITDA Margin: 10.2%): • eSports: 84% YoY revenue growth in 9MFY23 • Nodwin revenue grew by 98% in 9MFY23 driven as multiple physical events came back
Slide 19: Individual Segment Performance
Individual Segment Performance
Slide 20: Gamified Early Learning: Kiddopia and Animal Jam
1A Gamified Early Learning: Kiddopia and Animal Jam are our IPs in this segment Kiddopia: #2 grossing App in its category1 Animal Jam: #1 grossing App in its category2 Note: 1 Based on App Annie Top Grossing rank for Kids under 5 in the United States (iOS devices) 19 2. Based on App Annie Top Grossi
Slide 21: Gamified Early Learning: Kiddopia back on growth trajectory in Q3FY23
1A Gamified Early Learning: Kiddopia back on growth trajectory in Q3FY23 Business back on the growth trajectory Quarterly KPIs: 3.7% QoQ Subscriber growth in Q3FY23 YoY: YoY Key Metrics1 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 21% 571 6% 466 472 1,531 1,629 CPT ($) $23.6 $26.1
Slide 22: Gamified Early Learning: Wildworks – focused on product and retention
1B Gamified Early Learning: Wildworks – focused on product and retention § Founded in 2003 and headquartered in Utah, WildWorks is one of the most successful and established game studios in the US focused on the Investment Rationale kids aged 8-12 years. Wildworks’ Animal Jam is the #1 Grossing Apps
Slide 23: eSports: Nodwin Gaming: Multiple events make a comeback post covid
2A eSports: Nodwin Gaming: Multiple events make a comeback post covid Events in Q3FY22 Upcoming events Dreamhack , Hyderabad (Nov 2022) PMPL South Asia Fall (Aug-Oct 2022) India Premiership 2023 (starting January 2023) Bacardi NH7 Weekender Breezer Vivid Shuffle Valorant Event Pune (Nov 2022) Hydera
Slide 24: eSports: Nodwin Gaming- On a path of consistent high revenue growth
2A eSports: Nodwin Gaming- On a path of consistent high revenue growth • Nodwin revenue grew by 98% in 9MFY23 driven by 53% YoY +62% CAGR +71% CAGR growth in Q3FY23. Nodwin witnessed growth in revenues led by offline events such as Dreamhack, NH7 weekender etc as well as 1,114 2,803 creation of new
Slide 25: eSports: Nodwin Gaming- Continued focus on 360 degree offerings
2A eSports: Nodwin Gaming- Continued focus on 360 degree offerings for the eSports fan Targeting the eSports fan across passion points, Nodwin has developed multiple offerings such as OML IPs for music/live events, Rusk Distribution for Content Needs, Wings for Gaming accessories and Planet Superher
Slide 26: eSports: Sportskeeda- Leadership position across multiple sports content
2B eSports : Sportskeeda- Leadership position across multiple sports content 25
Slide 27: eSports: Sportskeeda- Sustained revenue and EBITDA growth
2B eSports : Sportskeeda- Sustained revenue and EBITDA growth +53% CAGR Revenue Split by Sports Revenue Split by Geography +90% CAGR 356 937 937 937 281 210 124 66.4% 48.4% 37.9% 55.2% 589 40.4% 33.0% 589 589 235 152 162 136 135 309 112 101 259 238 109 143 81 219 259 259 190 132 578 17 37 51 61 346
Slide 28: Adtech: Datawrkz: Revenue growth of 55% in 9MFY23
3 Adtech: Datawrkz: Revenue growth of 55%* in 9MFY23 Figures in Rs. Mn Revenue* EBITDA* EBITDA % § Datawrkz revenue grew by 55%* YoY in 9MFY23. 31 new +55% clients added in 9MFY23, contributing to 31% of total 1,182 revenues in the same period § Datawrkz has established sales presence in EMEA region
Slide 29: Freemium: Nextwave's WCC Franchise- Cricket Simulation Games
4 Freemium: Nextwave’s WCC Franchise- Cricket Simulation Games with 10 mn MAU 28
Slide 30: Freemium: Nextwave: Revenue growth of 38% in 9MFY23
4 Freemium: Nextwave: Revenue growth of 38% in 9MFY23 +12% CAGR +21% CAGR Geographical Split Revenue Split (9MFY23) (MAU- 9MFY23) 187 5% 67 1% 53 51 128 25.8% 136 28.3% 23.5% 31.3% 13.2% 29.9% 20% 30% 21 56 15 12 33 18 65% 78% Q3FY21 Q3FY22 Q3FY23 9MFY21 9MFY22 9MFY23 Figures in Rs. Mn Revenue EBITD
Slide 31: RMG: Openplay revenue growth of 28% in 9MFY23
5 RMG: Openplay revenue growth of 28% in 9MFY23 OpenPlay Revenue EBITDA EBITDA % Figures in Rs. Mn Classic Rummy- Our IP in the RMG segment +65% +28% 406 142 141 317 23.2% 21.9% 86 19.6% 15.4% 33 89 17 49 Q3FY22 Q3FY23 9MFY22 9MFY23 *Does not include financials from other skilled based real money en
Slide 32: Consolidated Financials
Consolidated Financials
Slide 33: Consolidated revenue growth of 80% with EBITDA margin of 10.2%
Consolidated revenue growth of 80% with EBITDA margin of 10.2% and PAT growth of 22% in 9MFY23 (All figures in INR mn) 9MFY23 9MFY22 YoY% Q3FY23 Q3FY22 YoY% FY22 Revenue from operations 8,017 4,466 80% 3,148 1,858 69% 6,217 Content, event and web server 3,173 864 1,433 484 1,396 Advertising and prom
Slide 34: Highlights: Consolidated revenue growth of 80%, PAT growth of 22%
Highlights: Consolidated revenue growth of 80%, EBITDA of 820 million, PAT growth of 22% in 9MFY23 Revenue growth of 80% in 9MFY23- multiple growth engines firing: • eSports: 84% YoY revenue growth in 9MFY23 • Nodwin revenue grew by 98% in 9MFY23 driven as multiple physical events came back after Co
Slide 35: Contact Us
Contact Us Company : Investor Relations Advisors : Nazara Technologies Limited CIN: L72900MH1999PLC122970 Strategic Growth Advisors Private Limited CIN: U74140MH2010PTC204285 Mr. Rakesh Shah Rahul Agarwal / Karan Thakker Chief Financial Officer rahul.agarwal@sgapl.net / karan.thakker@sgapl.net Ms. A
Slide 36: Appendix
Appendix
Slide 37: Our Core Business is acquiring and scaling gaming and related businesses
Our Core Business is acquiring and scaling gaming and related businesses eSports Adtech eSports Sports news Game publishing Programmatic tournament destination with agency in the advertising and organizer based presence in Middle East and monetization in Gurgaon India and US Turkey company Founded D