Nazara Technologies Ltd. · NSE:NAZARA
Nazara Technologies — Q4 FY2023 Earnings Presentation
33 slides from Nazara Technologies's earnings presentation, 2023
Slide 1: Nazara Technologies Limited Investor Presentation Q4 & FY23
Nazara Technologies Limited Building from India for the world Investor Presentation Q4 & FY23
Slide 2: 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 3: FY23 Performance: Revenue growth of 75%, PAT growth of 21%
FY23 Performance: Revenue growth of 75%, PAT growth of 21% Consolidated Performance (INR Crore) “We are delighted to report another milestone year for Nazara Consolidated Revenue Technologies. Our strong performance in FY23 with revenue surpassing INR 1,000 crores at INR 1,091.0 crores and EBITDA cr
Slide 4: Strong performance: Revenue growth of 75% in FY23
Strong performance: Revenue growth of 75% in FY23 (All figures in INR Cr) FY23 FY22 YoY% Q4FY23 Q4FY22 YoY% Revenue by business segments i. Gaming 406.3 317.8 28% 110.2 83.5 32% Revenue grew by 75% in FY23 and ii. eSports 531.5 303.9 75% 140.1 91.6 53% crossed 1,000 Cr iii. Adtech 153.2 - 53%1 39.0
Slide 5: Q4FY23 performance: 65% Revenue growth, 86% EBITDA growth
Q4FY23 performance: 65% Revenue growth, 86% EBITDA growth Consolidated Revenue (INR Crore) 289.3 +65% Revenue grew by 65% in Q4FY23 39.0 YoY Growth*: • Company-wise call-outs: 33% • Gamified Early Learning: Kiddopia is back on growth 175.1 track (12% revenue and EBITDA growth in Q4FY23) 140.1 YoY Gr
Slide 6: Strong performance: All growth engines fired well in FY23
Strong performance: All growth engines fired well in FY23 Consolidated Revenue (INR Crore) Revenue grew by 75% in FY23 and crossed 1,000 Cr 1,091.0 • Company-wise call-outs: +75% YoY Growth*: 153.2 • Gamified Early Learning: Kiddopia is back on growth 53% track (8% revenue growth in FY23) • Freemium
Slide 7: Strategic Overview
Strategic Overview
Slide 8: A diversified business with multiple growth engines
A diversified business with multiple growth engines Gaming eSports Revenue by Segment (FY23) Adtech 14% Gaming 37% 49% eSports EBITDA by Segment (FY23) Adtech 11% Gaming YoY Growth: 28% YoY Growth: 75% EBITDA Margin: 18% EBITDA Margin: 8% 33% 56% eSports Adtech Revenue by Geography (FY23) Rest of th
Slide 9: Our "Acquire-and-Scale" model
Our ”Acquire-and-Scale” model • Acquire and consolidate • Profitable and companies in strategic focus Acquire Scale sustainable organic growth areas Drive Growth via Drive Performance Strategic in Existing Investment businesses Strategic Resources Allocation and diversification 9
Slide 10: Demonstrated ability to scale businesses within the Nazara Group (1/2)
Demonstrated ability to scale businesses within the Nazara Group (1/2) FY23 FY23 FY23 Revenues: Revenues: Revenues: 388.7 Cr 122.4 Cr 220.6 Cr 8.6x in 3.8x in 22.9x in 3 years 3 years 5 years Mar’23 Mar’23 FY20 MAU: 71 FY20 Subs: 312K FY18 Revenues: mn Revenues: Mar’22 Revenues: 14.2 Cr MAU: 68 58.2
Slide 11: Demonstrated ability to scale businesses within the Nazara Group (2/2)
Demonstrated ability to scale businesses within the Nazara Group (2/2) FY23 FY23 Revenues1: Revenues: 153.2 Cr 53.0 Cr YoY : 33% YoY : 53% FY22 FY22 Revenues: Revenues: 40.02 Cr Google play allowed Built presence in to run pilot of real 100.3 Cr money games in India EMEA and increased the number of
Slide 12: This growth is delivered through a strong operating model
This growth is delivered through a strong operating model M&A + Capital Corp Dev + Investor Reporting and Succession Planning Allocation Relations Accounting and Strategic HR Growth and User Brand BI & Analytics Acquisition Monetization Design and LiveOps and Content IP Development Culture and HR Su
Slide 13: We will continue to create value through organic + inorganic growth
We will continue to create value through organic + inorganic growth Gaming eSports Adtech • Strengthen on-ground sales • Invest in user acquisition • IP growth at Nodwin backed by unit teams in US / Europe for • Media revenues will drive advertisers Organic economics non-linear EBITDA growth • Stren
Slide 14: Key Business Performance
Key Business Performance
Slide 15: Gaming: Portfolio of IPs to capture the large gaming market opportunity
Gaming: Portfolio of IPs to capture the large gaming market opportunity FY23: Revenue: 406.3 Cr YoY Growth: 28% EBITDA Margin: 10.1% Monetization Market Financials FY23, Brand / IP Sub-segment Demographics Key Market Model Positioning INR Cr #2 Grossing app in its category1 Revenue: 272.8 Gamified E
Slide 16: Gaming -> 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 Tim Cook, Apple CEO, met the Kiddopia team in Mumbai Note: *Ranking as per App Annie for iPad users in the US for Kids und
Slide 17: Gaming -> Kiddopia: Back on growth path
Gaming -> Kiddopia: Back on growth path Business back on growth path Quarterly KPIs – all positive for this quarter +8% +12% Key Metrics1 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 220.6 204.4 57.7 CPT ($) $36.0 $39.3 $37.9 $37.3 $35.9 51.3 18.5% 18.4% 25.0% 16.2% Marketing Spend (Mn) $2.4 $2.7 $3.1 $3.4 $3
Slide 18: Gaming -> 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 Gamified Early Learning Geographies: USA 80% RoW 20% Audience: 9-11 years old (80% girls) Revenue Model: IAP, Subscription Note: Ranking as per App Annie for iPad users in the US for Kids between 9-11 years of age 18
Slide 19: Gaming -> Animal Jam: Setting the platform for growth and retention
Gaming -> Animal Jam: Setting the platform for growth and retention Updates since acquisition Quarterly Financials (INR Cr) • Improved the analytics back-end to get actionable Analytics 23.3 product and User Acquisition insights 22.4 3.0% 11.6% • Improved cadence of “regular” content updates for 2.6
Slide 20: Gaming -> WCC: India's leading cricket Simulation game
Gaming -> WCC: India’s leading cricket Simulation game Geographies: India- 65% of MAU Freemium Audience: 13-45 years old Revenue Model: Advertisement, IAP Around 1.5 Mn DAUs and 9 Mn MAUs* 20 Note: * Across WCC2 and WCC3 Franchise in FY23
Slide 21: Gaming -> WCC: EBITDA growth of 78%, rev. growth of 26% in FY23
Gaming -> WCC: EBITDA growth of 78%, rev. growth of 26% in FY23 Geographical Split Revenue Split (MAU FY23) (FY23) 5.2 4.9 23.7 18.8 34.6% 12.2% 19.1% 26.2% 21% 36% 1.8 6.2 0.6 3.6 64% 79% Q4FY22 Q4FY23 FY22 FY23 Figures in Rs. Cr Revenue EBITDA EBITDA% India ROW Ad Revenue Others DAU (Mn) ▪ Launche
Slide 22: Gaming -> Openplay: Nazara's initial step in the RMG space
Gaming -> Openplay: Nazara’s initial step in the Real Money Gaming (RMG) space Skill based RMG Geographies: India- 100% of MAU Audience: 18-45 years old Revenue Model: Platform fees One of India's top 10 Rummy games 22
Slide 23: Gaming -> Classic Rummy: EBITDA growth of 79% in FY23
Gaming -> Classic Rummy: EBITDA growth of 79% in FY23 OpenPlay EBITDA EBITDA % Figures in Rs. Cr Revenue +33% +11% Comments: 12.4 53.0 ▪ Revenue growth of 33% YoY; and EBITDA 11.2 141 growth of 79% YoY due to much better 40.0 19.4% 21.3% cost optimization 17.9% 15.8% ▪ Weeded out players who were no
Slide 24: Gaming -> RMG Sector Update: Regulatory clarity a huge positive, but headwinds persist
Gaming -> RMG Sector Update: Regulatory clarity a huge positive, but headwinds persist ++++++++ Positives +++++++ • The Ministry of Electronics and IT (MeitY) clearly identified as the Ministry in charge of online gaming • MEITY has notified IT rules for the sector • Self Regulatory Organisations (S
Slide 25: eSports -> Nodwin Gaming: Developing Multiple IPs for eSports players
eSports -> Nodwin Gaming: Developing Multiple IPs for eSports players Kingfisher India Premiership Valorant Challengers South Asia 2023 (Started in Jan 2023) (Ongoing) ESL Snapdragon Pro Series Dgtl Music Festival PUBG Mobile Global Championship (Jan 2023) Mumbai (Dec 2022) (Nov 2022) 25
Slide 26: eSports -> Nodwin Gaming: Strong growth cycle continues
eSports -> Nodwin Gaming: Strong growth cycle continues +57% +84% Nodwin revenue grew by 84% in FY23 driven by growth in multiple IPs (Playground, PUBG IPs in South Asia, Dgtl etc.) 108.4 388.7 as well as strong growth in gaming accessories business 69.0 Operating leverage to kick in with scale: 210
Slide 27: eSports -> Sportskeeda: Sustained revenue and EBITDA growth
eSports -> Sportskeeda: Sustained revenue and EBITDA growth Revenue Split by Sports Revenue Split by Geography +41% +55% 122.4 122.4 28.7 122.4 12.5 20.3 27.5% 79.2 34.6% 31.7% 24.2 79.2 79.2 30.0 17.7% 24.7 38.8 16.7 13.8 7.9 27.4 3.6 11.1 27.3 23.1 16.7 79.8 Q4FY22 Q4FY23 FY22 FY23 34.7 46.1 42.3
Slide 28: Adtech -> Datawrkz: 53% Revenue growth; platform set for more
Adtech -> Datawrkz: 53% Revenue growth; platform set for more Figures in Rs. Cr Revenue* EBITDA* ▪ Revenues grew by 53%* YoY in FY23. 42 new clients added in EBITDA % FY23, contributing to 34% of total revenues in the same period. The company lost one significant client and we expect short +53% term
Slide 29: Consolidated Financials
Consolidated Financials
Slide 30: Consolidated revenue growth of 75% with EBITDA margin of 10.1% and PAT growth of 21% in FY23
Consolidated revenue growth of 75% with EBITDA margin of 10.1% and PAT growth of 21% in FY23 (All figures in INR Cr) Q4FY23 Q4FY22 YoY% Q3FY23 QoQ% FY23 FY22 YoY% Revenue from operations 289.3 175.1 65% 314.8 -8% 1,091.0 621.7 75% Content, event and web server 133.6 53.4 143.3 450.9 139.6 Advertisin
Slide 31: Consolidated Balance Sheet
Consolidated Balance Sheet (in INR Cr) Assets Mar-23 Mar-22 Cash, Bank and Equivalents break-up Mar-23 Mar-22 Property, Plant and Equipment 7.1 3.6 Nazara 360.6 519.3 Goodwill & other intangible assets 576.0 421.5 Kiddopia 92.9 74.4 Non-current Financial Assets & Other Assets 68.5 39.5 Sportskeeda 4
Slide 32: Consolidated Cashflow Statement
Consolidated Cashflow Statement (in INR Cr) Particulars Mar-23 Mar-22 Opening Cash Position (including investments and Bank deposits) 732.6 478.4 Profit before tax 88.8 69.9 Non-cash items 31.0 39.3 Change in working capital (85.7) (28.1) Direct taxes (26.0) (19.0) Cash from operations (net of tax p
Slide 33: 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
Nazara Technologies — Q4 FY2023 Earnings Presentation on 6ix