Huuuge, Inc. · GPW:HUG
Huuuge — Q1 2024 Earnings Presentation
28 slides from Huuuge's earnings presentation, May 2024
Slide 1: Q1 2024 Presentation
Q1 2024 PRESENTATION MAY 2024
Slide 2: Disclaimer
DISCLAIMER This presentation (“Presentation”) has been prepared by Huuuge, Inc. (the “Company”). By reading the Forward-looking statements include in particular statements regarding the financial performance, Presentation, you agree to be bound by the following limitations. business strategy, plans a
Slide 3: Today's Presenters
TODAY’S PRESENTERS Wojciech Wronowski Marek Chwałek Chief Executive Officer Treasurer, EVP Finance To learn more please visit: https://ir.huuugegames.com/governance
Slide 4: Highlights
HIGHLIGHTS EBITDA margins high despite marketing spend increase $46.34 ARPPU vs. $47.73 Q4’23 Maintaining cost discipline User Acquisition costs almost doubled YoY, but overall operating expenses were flat YoY (savings in R&D, G&A and platform fees) $67m Core franchises: main KPIs stabilize REVENUE D
Slide 5: Business Update
" PB BUSINESS“ ” £& UPDATE — Oe HUUUGE ©
Slide 6: Core Franchises
CORE FRANCHISES Q1 2024 revenue slightly decreased QoQ, UA spending increased significantly YoY ● Core franchises revenue in Q1 2024 decreased QoQ as in Q4 2023 we took advantage of seasonal effects and stronger monetization. ● UA spend for core franchises in Q1 2024 increased by 86% YoY, and 13% QoQ
Slide 7: Core Franchises: Main KPIs Stabilize
CORE FRANCHISES: MAIN KPIs STABILIZE Our core games have stabilized since Q2 2023: operating KPIs flattened Core franchises’ main KPIs stabilize Q1 24 DAU +2% QoQ; Q1 24 DPU -1% QoQ Player base trend reversal Stabilization of our player base is a result of increased marketing spend. Average monthly i
Slide 8: Core Franchises: DTC Channel Growth
CORE FRANCHISES: DTC CHANNEL GROWTH Direct-To-Consumer channel share in revenue reached low teens (12%) in April 2024 Direct-To-Consumer (Webshop) Revenue as % of Total Revenue ● DTC revenue reached over 8% of the total revenue in Q1 2024 with the ratio improving further to almost 12% in April. ● We
Slide 9: Huuuge Pods
HUUUGE PODS Multiplayer multiplatform games for worldwide audiences ● Several Pods are working on new games, with the total headcount of these teams below 40 FTEs ● There are three new games, each at a different stage of the product life cycle ● We are continuously testing and validating new concept
Slide 10: Financial Update
_ FINANCIAL UPDATE G
Slide 11: Financial Performance
FINANCIAL PERFORMANCE $m Q1 24 Q1 23 YoY Q4 23 QoQ 01 In line with our prior guidance for the first half of the Core Franchises 65.1 68.0 -4.2% 69.3 -6.0% year, overall Q1 24 revenue decline YoY and QoQ Other 1.9 3.8 -50.2% 2.0 -9.5% driven mostly by core franchises revenue decrease. 01 Revenue 67.0
Slide 12: Balance Sheet
BALANCE SHEET $m March 31, 2024 December 31, 2023 01 Includes mainly intangible assets and office 01 Non-current assets 32.6 29.8 leases and $3.5m long term investment. 02 Current assets 196.8 187.6 Primarily cash and cash equivalents ($163.2m, Total assets 229.4 217.4 02 or 71% of current assets as o
Slide 13: Cash Flows
CASH FLOWS $m Q1 24 Q1 23 Q4 23 01 Pre-tax profit decreased significantly YoY in Q1 24 mainly as a result of increased UA spend 01 Pre-tax profit 20.1 26.0 23.4 02 Net operating CF decreased YoY and QoQ in Q1 24 02 Net Operating CF 14.4 16.9 24.8 largely following the trends of adjusted EBITDA. Income
Slide 14: Highly Cash Generative Business
HIGHLY CASH GENERATIVE BUSINESS In Q1 2024 we delivered adjusted EBITDA of $22m and net operating cash flow of $14.4m We recognize that we are one of the most cash generative businesses in the games industry (as measured by Net OCF to adjusted EBITDA conversion) This positioned us well to execute sha
Slide 15: 2024 Outlook - Investing in Future Growth
2024 OUTLOOK - INVESTING IN FUTURE GROWTH Keeping our profitability on high levels 2024 OUTLOOK (YoY) KEY HIGHLIGHTS ● Adjusted EBITDA and Adjusted EBITDA margin (%) to decrease Revenue FLAT mostly due to investments in future growth, but we still aim to maintain high profitability SIGNIFICANT ● In th
Slide 16: Thank You
Q1 2024 EBITDA margins remain high User Acquisition costs almost doubled YoY, but overall operating expenses were flat YoY (savings in R&D, G&A and platform fees) THANK Core franchises’ KPIs stabilize YOU DAU QoQ improvement for 4 consecutive quarters Direct-To-Consumer channel growth DTC responsible
Slide 17: Financial Data
FINANCIAL DATA Profit & Loss account (USD m) 2021 2022 2023 Qi22 9222 9322 0422 9123 0223 9323 0423 Q124 Revenue 3737 3186 283.4 84.0 79.4 775 77 77 69.2 712 713 67.0 Cost of sales “1122 -98.9 “826 25.5 24.0 238 23.6 2a 203 20.6 205 “19.1 Gross profit/(loss) on sales 261.5 221.7 200.9 58.5 55.4 53.8
Slide 18: Appendix - KPI's
APPENDIX - KPI'S (users) FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY2023 _ 1021 _2Q21_ _3Q21_ _4Q21__('1Q22_ 2022: 322 4Q22_ «1023-2023 3023 :4Q23_ «1024 Total DAU 632,113 850,717 911,048 947,188 789,831 610,489 429,787 888,781 773,229 769,744 727,568 701,620 671,967 557,666 510,702 468,395 4
Slide 19: Appendix - Glossary
APPENDIX - GLOSSARY ARPDAU Average revenue per daily active user. ARPPU Average revenue per paying user. DAU The number of individual users who played a game on a particular day. DPU The number of players (active users) who made a purchase on a given day. EPS Earnings per share Activities aimed at i
Slide 20: Financial Performance
FINANCIAL PERFORMANCE $m Q1 24 Q1 23 YoY Q4 23 QoQ 01 In line with our prior guidance for the first half of the Core Franchises 65.1 68.0 -4.2% 69.3 -6.0% year, overall Q1 24 revenue decline YoY and QoQ Other 1.9 3.8 -50.2% 2.0 -9.5% driven mostly by core franchises revenue decrease. 01 Revenue 67.0
Slide 21: Balance Sheet
BALANCE SHEET $m March 31, 2024 December 31, 2023 01 Includes mainly intangible assets and office 01 Non-current assets 32.6 29.8 leases and $3.5m long term investment. 02 Current assets 196.8 187.6 Primarily cash and cash equivalents ($163.2m, Total assets 229.4 217.4 02 or 71% of current assets as o
Slide 22: Cash Flows
CASH FLOWS $m Q1 24 Q1 23 Q4 23 01 Pre-tax profit decreased significantly YoY in Q1 24 mainly as a result of increased UA spend 01 Pre-tax profit 20.1 26.0 23.4 02 Net operating CF decreased YoY and QoQ in Q1 24 02 Net Operating CF 14.4 16.9 24.8 largely following the trends of adjusted EBITDA. Income
Slide 23: Highly Cash Generative Business
HIGHLY CASH GENERATIVE BUSINESS In Q1 2024 we delivered adjusted EBITDA of $22m and net operating cash flow of $14.4m We recognize that we are one of the most cash generative businesses in the games industry (as measured by Net OCF to adjusted EBITDA conversion) This positioned us well to execute sha
Slide 24: 2024 Outlook - Investing in Future Growth
2024 OUTLOOK - INVESTING IN FUTURE GROWTH Keeping our profitability on high levels 2024 OUTLOOK (YoY) KEY HIGHLIGHTS ● Adjusted EBITDA and Adjusted EBITDA margin (%) to decrease Revenue FLAT mostly due to investments in future growth, but we still aim to maintain high profitability SIGNIFICANT ● In th
Slide 25: Thank You
Q1 2024 EBITDA margins remain high User Acquisition costs almost doubled YoY, but overall operating expenses were flat YoY (savings in R&D, G&A and platform fees) THANK Core franchises’ KPIs stabilize YOU DAU QoQ improvement for 4 consecutive quarters Direct-To-Consumer channel growth DTC responsible
Slide 26: Financial Data
FINANCIAL DATA Profit & Loss account (USO m) 2021 2023 iz 222 9322 s22 aizs 223 9323 9323 giz Revenue 3737 340 794 718 77 717 692 712 713 670 Gost of sales 1122 258 240 238 236 214 203 206 208 19.1 ‘Gross profitJoss) on sales 2618 r 50.5 55.4 53.8 54.0 50.6 50.6 50.8 479 Sales and marketing exoenses
Slide 27: Appendix - KPI's
APPENDIX - KPI'S (users) FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY2023 _ 1021 _2Q21_ _3Q21_ _4Q21__('1Q22_ 2022: 322 4Q22_ «1023-2023 3023 :4Q23_ «1024 Total DAU 632,113 850,717 911,048 947,188 789,831 610,489 429,787 888,781 773,229 769,744 727,568 701,620 671,967 557,666 510,702 468,395 4
Slide 28: Appendix - Glossary
APPENDIX - GLOSSARY ARPDAU Average revenue per daily active user. ARPPU Average revenue per paying user. DAU The number of individual users who played a game on a particular day. DPU The number of players (active users) who made a purchase on a given day. EPS Earnings per share Activities aimed at i