Huuuge, Inc. · GPW:HUG
Huuuge — Q3 2024 Earnings Presentation
18 slides from Huuuge's earnings presentation, November 2024
Slide 1: Q3 2024 Presentation
Q3 2024 PRESENTATION NOVEMBER 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: Q3 2024 Highlights
Q3 2024 HIGHLIGHTS Profitability remaining at a high level $59m Revenue -17.5% YoY, -7.3% QoQ Maintaining profitability focus Strong adjusted EBITDA delivery, strict cost policy $21m Roadmap implementation on track as scheduled Adj. EBITDA Positive impact expected in late Q4 2024 -17.5% YoY, +7.4% QoQ
Slide 5: Business Update
P cure” a BUSINESS UPDATE
Slide 6: Q3 2024 Core Franchises
Q3 2024 CORE FRANCHISES ● Core franchise revenue in 9M 2024 declined YoY due to the social casino ● DAU decreased by 6.3% YoY, and 7.6% QoQ market weakness ● ARPDAU decreased by 11.5% YoY and was flat QoQ ● User acquisition (UA) spend for core franchises decreased by 28% in Q3 2024 ● ARPPU decreased
Slide 7: Core Franchises: DTC Channel Growth
CORE FRANCHISES: DTC CHANNEL GROWTH Direct-To-Consumer (Webshop) Revenue as % of Total Revenue ● DTC revenue reached over 12% of the total revenue in Q3 2024 and 15% in October 2024 ● We continue to invest further in this channel and we expect more long-term upside, with DTC as % of revenue expected
Slide 8: Huuuge Pods
HUUUGE PODS ● Several pods are currently working on new games, with a total headcount of fewer than 40 FTEs ● Development work on the games is still at an early stage. We have tested several game prototypes in Q3 2024 and are planning further test launches (MVP / tech launch) in the coming months ●
Slide 9: Financial Update
_ FINANCIAL UPDATE G
Slide 10: Financial Performance
FINANCIAL PERFORMANCE $m Q3 24 Q3 23 YoY Q2 24 QoQ Core Franchises 57.6 68.9 -16.4% 61.7 -6.8% 01 In line with our prior guidance for the first 9M 2024, overall Q3 24 revenue declined YoY and QoQ driven Other 1.2 2.3 -48.1% 1.6 -25.4% by both core and new franchises. Gross profit Revenue 58.8 71.2 -17
Slide 11: Balance Sheet
BALANCE SHEET $m September 30, 2024 December 31, 2023 01 Includes mainly intangible assets, office leases, 01 Non-current assets 30.9 29.8 and a $4.0m long-term investment in Bananaz 02 Current assets 156.0 187.6 Studios and Empire Studio Ltd. Primarily cash and cash equivalents ($125.0m, Total assets
Slide 12: Cash Flows
CASH FLOWS $m 9m 24 9m 23 Q3 24 Q3 23 01 Pre-tax profit decreased YoY in 9M 2024 mainly as a result of increased UA spend in H1 2024 and lower 01 Pre-tax profit 56.5 75.4 18.0 22.9 revenue Net operating CF decreased YoY in 9M 2024, but 02 Net Operating CF 47.3 57.6 14.5 20.2 02 profit-to-OCF conversion
Slide 13: Highly Cash Generative Business
HIGHLY CASH GENERATIVE BUSINESS In 9m 2024 we delivered adjusted EBITDA of $62.3m and net operating cash flow of $47.3m 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) Even after returning around $220 mil
Slide 14: Market Positioning
MARKET POSITIONING Maintaining high profitability despite weaker revenue Guidance for 2024 (% YoY dynamics) KEY HIGHLIGHTS ● Negative impact on player behavior due to the product roadmap shift Revenue DECLINE to H2. Current releases are on track, with a positive impact expected in late Q4 Marketing s
Slide 15: Thank You
Maintaining profitability focus Strong adjusted EBITDA delivery, strict cost policy THANK Roadmap implementation on track as scheduled Positive impact expected in Q4 YOU Direct-To-Consumer channel growth DTC responsible for 15% of sales in October 2024 M&A focus Target game-changing acquisitions for
Slide 16: Financial Data
FINANCIAL DATA Profit & Loss account (USD m) 2021 2003 222 0322 9422 0123 223 0323 9423 ana 224 324 Revenue 3737 263.4 74 715 717 77 692 712 713 670 a4 Cost of eales 1122 226 240 238 aa 203 206 205 491 176 Gross profiv(loss) onsales 2615 200.8 554 538 50.6 483 50.8 50.8 473 457 ‘Sales and marketing
Slide 17: Appendix - KPI's
APPENDIX - KPI'S (users) FY2017___FY2018 ~——FY2019_——FY.2020° FY 2021 FY2022___FY2023 Q12020 922020 932023 = Q42023 «Qi 2024 += 2.2024 ~——Q3 2024 Total DAU 632,113 850,717 «911,048 «947,188 789,831 610,489 «429,787 980,224 970,211 «416,609 «408,100 «408,509 «392,898 359,193 Core Franchises 509,356 7
Slide 18: 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