Huuuge, Inc. · GPW:HUG
Huuuge — FY2023 Earnings Presentation
19 slides from Huuuge's earnings presentation, March 2024
Slide 1: FY 2023 Presentation, March 2024
FY 2023 PRESENTATION MARCH 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 2023 results driven by our profit-oriented strategy $1.81 ARPDAU FY 23 Adj. EBITDA reached $108m and Net OCF $82m vs. $1.43 2022 Consistently delivering high profitability and strong cash generation $70m Share Buyback announced on 14th March 2024 $71m Second SBB in 9 months with the combine
Slide 5: Business Update
BUSINESS UPDATE
Slide 6: Core Franchises
CORE FRANCHISES Q4 2023 Revenue remained flat QoQ while Sales Profit slightly improved ● Core franchises revenue in Q4 2023 remained flat QoQ and has been largely stable in the last four quarters. ● UA spend for core franchises in FY2023 decreased by 22% YoY, while in Q4 it was 15% lower QoQ. UA spend
Slide 7: Core Franchises: Main KPIs Stabilize
CORE FRANCHISES: MAIN KPIs STABILIZE Our core games stabilized in 2023: operating KPIs flattened. Stabilization of DPU over the last three quarters Core franchises’ main KPIs stabilize Q4 2023 DPU -1% QoQ, ARPPU +1% QoQ. Player base trend reversal Stabilization of our player base is a result of incre
Slide 8: Core Franchises: Direct-To-Consumer Channel Growth
CORE FRANCHISES: DIRECT-TO-CONSUMER CHANNEL GROWTH DTC channel revenue growth tripled from USD 5.6m in 2022 to USD 16.5m in 2023 Direct-To-Consumer (Webshop) Revenue as % of Total Revenue ● DTC revenue reached over 8% of the total revenue in Q4 2023 with the ratio improving further to almost 9% in t
Slide 9: Huuuge Pods
HUUUGE PODS Multiplayer multiplatform games for worldwide audiences ● Four Pods working on new games for new audiences. We need to acknowledge however that it is a multi-year plan and we are at an early stage. ● We expect to test multiple games (tech / soft launch) in the coming years. ● We are happ
Slide 10: Financial Update
_ FINANCIAL UPDATE G
Slide 11: Highly Cash Generative Business
HIGHLY CASH GENERATIVE BUSINESS We are proud to report that in 2023 we delivered adjusted EBITDA of $108m and net operating cash flow of $82.4m 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 positio
Slide 12: Financial Performance
FINANCIAL PERFORMANCE $m 12M 23 12M 22 YoY Q4 23 Q3 23 QoQ Core Franchises 272.2 288.1 -5.5% 69.3 68.9 0.6% 01 Overall 2023 revenue decline was driven mostly by Traffic Puzzle 9.3 26.2 -64.6% 1.7 1.8 -7.8% Traffic Puzzle revenue decrease (game no longer Other 1.9 4.4 -55.5% 0.4 0.5 -21.0% supported). Q4
Slide 13: Balance Sheet
BALANCE SHEET $m December 31, 2023 December 31, 2022 01 Includes mainly intangible assets and office 01 Non-current assets 29.8 37.4 leases. 02 Current assets 187.6 248.9 02 Primarily cash and cash equivalents ($152.1m, Total assets 217.4 286.3 or 69% of current assets as of Dec 31, 2023), strong net
Slide 14: Cash Flows
CASH FLOWS Pre-tax profit increased significantly YoY in 2023 01 $m 12M 23 12M 22 Q4 23 Q3 23 mainly as a result of the profit-oriented strategy implemented at the beginning of the year. 01 Pre-tax profit 98.8 39.1 23.4 22.9 Net operating CF increased significantly YoY both in 02 02 Net Operating CF 82.4
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
Core franchises’ KPIs stabilize DAU QoQ improvement for 3 consecutive quarters THANK 2023 Adj. EBITDA reached $108m and Net OCF $82m Outstanding results driven by our profit-oriented strategy YOU Cash distribution to shareholders $70m Share Buyback announced 2024 - investment in core franchises Marke
Slide 17: Financial Data
FINANCIAL DATA Profit & Loss account (USD m) 2021 2023, Qu22 9222 93.22 422 123 2.23 9323 Q423 Revenue 2737 283.4 79.4 715 THT WT 69.2 TP 713 Cost of sales 1122 826 240 238 236 214 208 20.6 205 Gross profit/(loss) on sales 261.5 200.9 55.4 53.8 54.0 50.6 489 50.6 50.8 Sales and marketing expenses. i
Slide 18: Appendix - KPI's
APPENDIX - KPI'S (users) FY2017_FY2018 FV2019 FY 2020 FY2021 —FY2022—-FY.2028° «1202122021 32021 Qaz0z1 gi 2022_—g22022_—Q3.2022 42022 Q12023 gz 2023 93202342023, Total DAU 632,113 850,717 917,048 947,188 789,631 610489 429,787 «888,781 773,229 +-+769,744 727,568 701,620 + 671,967 857,666 510,702 46
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