Huuuge, Inc. · GPW:HUG
Huuuge — Investor Presentation (March 2021)
32 slides from Huuuge's investor presentation, Mar 11, 2021
Slide 1: A Global Success Story in Gaming
A Global Success Story in Gaming March 2021
Slide 2: Disclaimer
Disclaimer This presentation (“Presentation”) has been prepared by Huuuge, Inc. (the “Company”). By reading the Presentation, you agree to be bound by the following limitations. This Presentation is strictly confidential to the recipient. Neither this Presentation or any part hereof nor the informati
Slide 3: Today's presenters
Today’s presenters Anton Gauffin Elad Kushnir Grzegorz Kania Jon Bellamy Chief Executive Officer VP Strategy & Corp Dev COO CFO (Founder) 18 years at Huuuge Games 3 years at Huuuge 6 months at Huuuge 2 year at Huuuge 18 years in industry 11 years in industry 23 years of total experience 6 years in indus
Slide 4: Agenda
Agenda Page 01 Introduction to Huuuge Games 4 02 Key investment highlights 9 03 Financial performance 20 04 Appendixes 26 4
Slide 5: Mission and Vision
MISSION VISION Transform mobile gaming Empower billions of people into a massively social to play together experience 5
Slide 6: A Huuuge track record of success
A Huuuge track record of success New and expanded global strategic partnerships First publishing release Gamelion bought back Multiple new offices opened Mobile FIFA Billionaire Casino Soccer 3D Market launch (EA Sports) Huuuge Casino Market launch 4 new publishing $100m revenue deals Gamelion First s
Slide 7: Huuuge Games at a glance
Huuuge Games at a glance $316m 28% $32 Revenue Revenue CAGR ARPPU1 (LTM 30-Sep-20) (2017 – LTM 30-Sep-20) (9M 2020) Who we are: A global game developer and publisher focused on the multi-billion, fast growing mobile gaming market $0.92 5m 200m+ ARPDAU2 Average MAUs3 Player interactions What we do be
Slide 8: Overview of our core franchises
Overview of our core franchises Huuuge Casino Billionaire Casino ● Huuuge Games’ flagship title with over ● Billionaire Casino’s revenue has grown $600m in lifetime revenue across iOS, rapidly since its release with over $250m in Android and Facebook lifetime revenue ● Offers players over 100 casino
Slide 9: Agenda
Agenda Page 01 Introduction to Huuuge Games 4 02 Key investment highlights 9 03 Financial performance 20 04 Appendixes 26 9
Slide 10: A 'Huuugely' exciting and differentiated proposition
A ‘Huuugely’ exciting and differentiated proposition Massive and rapidly growing mobile Leader in truly social mobile gaming Upside from highly valuable user gaming market with proven games and attractive base and best-in-class monetisation pipeline metrics Fast growing top line and cash flow Proven
Slide 11: Mobile gaming is the present and future of entertainment
Mobile gaming is the present and future of entertainment Global consumer spend on entertainment Mobile fuels gaming growth ($bn, 2019) (2020E - 2022E revenue CAGR) $69 Mobile 45% Mobile gaming is the place to be! 32% $48 Console #1 4.8bn 5.5% $82.6bn $36 Source of gaming Smartphone growth Global sma
Slide 12: The first truly social, social casino games
The first truly social, social casino games Large, disruptive gaming social platform, with tremendous scalability… 200M+ PLAYER ● First true real-time online massive multiplayer game in the INTERACTIONS social casino genre offering a unique social experience ● 200m+ player interactions creating an ac
Slide 13: Our games have an evergreen nature and a sticky player base
Our games have an evergreen nature and a sticky player base Quarterly revenue cohorted by year of install ($m) Avg. ARPDAU1 $0.60 Avg. ARPDAU1 $1.50 Ability to retain the best users from older cohorts with superior monetisation Source: Company information Note: 1 Average Revenue Per Daily Active Use
Slide 14: Our core portfolio has above-average monetisation vs. peers
Our core portfolio has above-average monetisation vs. peers ARPDAU1 ($) - 9M 2020 2 2 2 (Social Casino) (Core portfolio) (Social Casino) ARPDAU across our core portfolio materially exceeds that of our closest competitors, driven by our loyal and active player base who are attracted by our social cen
Slide 15: New franchises: Traffic Puzzle case study
New franchises: Traffic Puzzle case study The Publishing studio’s debut title proved to be an early success, and is still full of potential ● Unique casual puzzle game inspired by the top-grossing Rapid ramp-up and strong performance match-3 mechanics We more than doubled Traffic Puzzle daily revenue in
Slide 16: Multiple organic growth avenues across products and operations
Multiple organic growth avenues across products and operations Margin improvement Rapid revenue growth magnified by high operating leverage Continue to leverage lower cost Increasing ARPPU developers on existing users More recent cohorts showing higher monetisation Increasing payer conversion Social
Slide 17: Clear M&A agenda - building partnerships
Clear M&A agenda- building partnerships Highly accretive deal structures and targets complementary to Huuuge’s company strategy Targets Financial profile Valuation ranges 1 Primary targets Consistent revenue growth Target profiles 2 Secondary targets EBITDA generative Acquisitions via publishing chann
Slide 18: Founder-led, entrepreneurial and truly global team
Founder-led, entrepreneurial and truly global team Szczecin Poland London Bydgoszcz United Kingdom Poland Helsinki Finland Dublin Ireland Warsaw Poland Amsterdam Kiev Netherlands Ukraine Las Vegas Tel Aviv United States Limassol Israel Cyprus Hong Kong Hong Kong Anton Gauffin CEO Helsinki Leading Team
Slide 19: Agenda
Agenda Page 01 Introduction to Huuuge Games 4 02 Key investment highlights 9 03 Financial performance 20 04 Appendixes 26 19
Slide 20: Strong track record of revenue growth and improved EBITDA performance
Huuuge’s strong track record of revenue growth across franchises has led to substantially improved EBITDA performance Revenue ($m) Adj. EBITDA and % margin ($m) % 1% M ’ 1 9: 30 R: 3 0 vs. 9 CAG 9M’2 23% 10% 4% 5% Source: Company information, audited financials. Note: 9 months ended 30-Sept-19 and 9
Slide 21: Our franchises continue to attract new users and convert them into payers
Our franchises continue to attract new users while our ability to convert customers into payers drives top-line performance DAU (thousands) Conversion DPU (thousands) 965 3.70% 911 27 851 25 21 632 14 Focused investments in higher …and Huuuge’s ability to improve users’ in-game …generates continued
Slide 22: Improving monetization drives growth in our core franchises
Improving monetization drives growth in our core franchises Core franchise DAU (thousands) Core franchise ARPDAU ($ cents) Core franchise revenue ($m) Decline in DAU resulting from strategy to optimize the user base by focusing on % DAUs with higher LTVs R : 30 26% growth 9M 2019 G CA vs. 9M 2020 R:
Slide 23: Mid-term guidance
Mid-term guidance Commentary ● Annual growth anticipated to be in line with 2020E ● Continued growth in monetisation across the full portfolio through both IAP and IAA initiatives Revenue ● More than half of the company’s growth is anticipated to be generated from new franchises, with a significant a
Slide 24: For more information please see https://ir.huuugegames.com
For more information please see https://ir.huuugegames.com
Slide 25: Appendixes
Appendixes Page 01 Introduction to Huuuge Games 4 02 Key investment highlights 9 03 Financial Performance 20 28 04 Appendixes 26 25
Slide 26: Basics of social mobile gaming
Basics of social mobile gaming Who plays? Why do they play? Why do they make in-app purchases? EVERYONE Fun and entertaining Entertainment / playtime 2.7bn mobile gamers in 2021E way to pass the time and relax 38% Accessible, low-cost form of entertainment Extra bonuses / content of which make in-ap
Slide 27: Marketing tech, product and BI
Huuuge marketing overview and strategy Tech Marketing Creatives UA and Retargeting Ad-Monetization Marketing tech, product and BI User Acquisition Retargeting Game / product Day-to-day implementation, ad monetization placement, optimization reward type, Search Social Networks segmentation Tools and
Slide 28: Impressive user KPIs
Impressive user KPIs Track record of incremental payer conversion years after initial acquisition Core franchises¹ DAU (Thousands) Conversion (MPU/MAU) ARPDAU ($) Overall company2 DAU (Thousands) Conversion (MPU/MAU) ARPDAU ($) Source: Company data Note: 1Includes Huuuge Casino and Billionaire Casin
Slide 29: Trading update
Trading update Overall company1 Commentary DAU (Thousands) ARPDAU ($) ● Continued acceleration and momentum $0.945 - $0.965 ● Monetisation has continued to improve and December 945-955 trends are encouraging 911 851 ● Strong performance of new franchises, achieving $0.78 upper-end of single digit pe
Slide 30: Recently completed transactions
Recently completed transactions TreasureHunt GmbH Playable Platform B.V. Double Star Oy Developer of casual, F2P mobile games. Advertising technology company focused Developer of casual, F2P mobile games, Developer of Trolls Pop! and following the on the creation of interactive, or “playable” founde
Slide 31: The Huuuge team has an extensive history of executing and integrating transactions
The Huuuge team has an extensive history of successfully executing and integrating transactions Anton Jon Elad Maciej Tal Gauffin Bellamy Kushnir Hebda Shoham LPs Acquisitions LPs Acquisitions Acquisitions by by by by Acquisitions Sellsides Acquisitions Advisory Sellsides by to to by by Sellsides to M
Slide 32: 2020E guidance
2020E guidance 9M 2020 FY2020E Commentary ● Total core bookings in Q4 in line with Q1-Q3 average due to continued, successful monetisation of core franchises ● Incremental contribution from new franchises during Q4 as UA accelerates installs and DAU metrics Revenue $244m ● New franchise revenue to a