Stillfront Group Ab · OMXSTO:SF
Stillfront Group Ab — Q3 2021 Earnings Presentation
18 slides from Stillfront Group Ab's earnings presentation, Nov 10, 2021
Slide 1: A leading free-to-play powerhouse
2021 A leading free-to-play powerhouse Interim report Third quarter 2021 1
Slide 2: Stillfront at a glance
STILLFRONT AT A GL ANCE* 62 A leading free-to-play 62 million MAU and 12 million DAU powerhouse of 21 gaming studios creating significant operational Main markets by revenue are US, synergies million Germany, MENA, UK and Canada A diverse and evolving game Europe 30% portfolio with two common North
Slide 3: Game highlights in the third quarter
PORTFOLIO HIGHLIGHTS Game highlights in the third quarter • Strong year-over-year organic growth performance from War & Peace, BitLife and Conflict of Nations • Moonfrog’s Ludo Club was ranked the #1 game on Snapchat worldwide in September • Record-high number of new titles in pipeline and soft-laun
Slide 4: Net revenue, UAC development & organic growth
NET REVENUE, UAC DEVELOPMENT & ORGANIC GROWTH Net Revenue, MSEK UAC, MSEK UAC, % of Net Revenue +40% 1,311 1382 5094 1319 1311 4809 4619 -1% 25% 24% 1,027 1027 1080 28% 24% 3991 23% 3462 21% 16% 20% 19% -11% 18% 363 346 319 1243 958 1088 164 215 635 743 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q3'20 LTM Q4'20
Slide 5: Adj. EBIT development
ADJ. EBIT DEVELOPMENT Adj. EBIT, MSEK Adj. EBIT, % of Net Revenue 1713 1727 1741 477 432 433 1493 37 % 36% 34% 419 399 35% 1272 33% 33% 37 % 41 % 37% 35% Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q3'20 LTM Q4'20 LTM Q1'21 LTM Q2'21 LTM Q3'21 LTM COMMENTS Q3 Adj. EBIT LTM Adj. EBIT • Q3 Adj. EBIT of 433 MSEK or
Slide 6: Active portfolio: Total
ACTIVE PORTFOLIO: TOTAL MAU (‘000) +218% YoY DAU (‘000) +197% YoY MPU (‘000) +69% YoY Bookings (‘000) +29% YoY ARPDAU (SEK) -57% YoY UAC (MSEK) +91% YoY UAC, % of Bookings 12809 1261 1309 12319 1410 1370 1226 66903 62308 1046 28% 26% 1159 950 25% 21% 7458 877 17% 39410 811 21658 4145 4253 359 19602
Slide 7: Active portfolio: Strategy
ACTIVE PORTFOLIO: STRATEGY MAU (‘000) -13% YoY DAU (‘000) -7% YoY MPU (‘000) +0% YoY Bookings (‘000) -3% YoY ARPDAU (SEK) +4% YoY UAC (MSEK) +34% YoY UAC, % of Bookings 513 519 117 338 351 2899 477 494 111 330 2752 2735 2708 310 301 443 100 103 100 2404 17% 22% 18% 17% 23% 7.1 7.2 7.5 7.3 7.4 76 69
Slide 8: Active portfolio: Simulation, RPG & Action
ACTIVE PORTFOLIO: SIMUL ATION, RPG & ACTION MAU (‘000) +121% YoY DAU (‘000) +39% YoY MPU (‘000) +79% YoY Bookings (‘000) +53% YoY ARPDAU (SEK) +10% YoY UAC (MSEK) +137% YoY UAC, % of Bookings 1643 415 8761 341 394 395 1442 1482 1427 373 7668 7622 312 29% 7339 288 295 27% 29% 28% 1024 257 164 19% 345
Slide 9: Active portfolio: Casual & Mash-up
ACTIVE PORTFOLIO: CASUAL & MASH-UP MAU (‘000) +290% YoY DAU (‘000) +295% YoY MPU (‘000) +78% YoY Bookings (‘000) +39% YoY ARPDAU (SEK) -65% YoY UAC (MSEK) +104% YoY UAC, % of Bookings 10833 10450 56665 995 975 585 52282 531 496 30% 700 383 33% 24% 27941 546 334 5296 478 17% 13396 11256 16% 163 176 2
Slide 10: The fast-moving Casual & Mash-up portfolio
ACTIVE PORTFOLIO: CASUAL & MASH-UP The fast-moving Casual & Mash-up portfolio • The Casual & Mash-up revenues move both up and down more rapidly by nature • Storm8 grew significantly during its first quarters as part of Stillfront and has now stabilized at high levels • New match 3 game in developme
Slide 11: Financial highlights
Financial highlights Third quarter 2021 11
Slide 12: Financial highlights Q3 2021
FINANCIAL HIGHLIGHTS Q3 2021 Cash generative business Revenue growth of 28% paired with with a strong cash flow from Adj. EBIT margin of 33% operations of 486 MSEK in Q3 Continuously strong financial Leverage below the financial target position with a cash balance of 1 171 MSEK and an undrawn credit
Slide 13: Income statement Q3 2021
INCOME STATEMENT Q3 2021 MSEK Q3 2021 Q3 2020 Net revenue 1 311 1 027 28% Platform fees -284 -280 1% Gross profit 1 027 748 37% Gross profit margin 78% 73% 6 pp User acquisition costs (UAC) -319 -164 95% UAC/Net revenue -24% -16% -8 pp Other external expenses -72 -52 40% Other external expenses/Net
Slide 14: Cash flow and balance sheet metrics
CASH FLOW AND BAL ANCE SHEET METRICS C A S H F L O W STAT E M E N T BAL ANCE SHEET METRICS MSEK MSEK Q3 2021 Q3 2020 4000 Net debt, MSEK 3,584 3 Cash flow from operations (before 3500 3,116 2.5 Leverage ratio proforma NWC) 389 293 33% 3000 2,645 Change in NWC 97 38 153% 2 2500 Cash flow from operati
Slide 15: Summary & Operational update
Summary & Operational update Third quarter 2021 15
Slide 16: Indicative guidance for fourth quarter
SUMMARY & OPERATIONAL UPDATE Indicative guidance for fourth quarter • Guidance for Q4*: INDICATIVE GUIDANCE FOR Q4 2021 • Net revenue of 1,350 to 1,500 MSEK • Adj. EBIT of 425 to 475 MSEK NET REVENUE • Net revenue guidance for Q4 suggests growth of 25% 1,350 1,500 to 39% YoY ADJUSTED EBIT • Midpoint
Slide 17: Summary
Summary • The business continues to be stable and perform well in the quarter, with several studios showing strong organic growth • The comparison figures driven by the pandemic and the IDFA changes are transitory • Several exciting game releases during Q4 and more to come in 2022 • In a good positi
Slide 18: Stillfront Group
STILLFRONT GROUP