East Side Games Group Inc · TSX:EAGR
East Side Games — Q2 2022 Earnings Presentation
13 slides from East Side Games's earnings presentation, Aug 11, 2022
Slide 1: Leaders in Free to Play Mobile Games
LEADERS IN FREE TO PLAY MOBILE GAMES TSX: EAGR OTCQB: EAGRF ANALYST CALL – Q2 2022 August 11, 2022
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains general background information about EastSide Games Group (the “Company”) in summary form, and does not purport to be complete. It is confidential, not for distribution to the public, for information purposes only, and may not be reproduced or di
Slide 3: Executive Summary: Growth Ramp Continues in Q2
EXECUTIVE Summary Q2 REVENUE End of Q2 Cash Growth Ramp Continues in Q2 $29.7M $9.3M ● RECORD Q2 REVENUE +32% YoY 1H 2022 1H adjEBITDA ● RECORD Q2 PLAYER AUDIENCE $65.3M $3.6M ● SCALING GAME KIT(S) PARTNER +44% YOY GAMES ● OFFICE GROWTH Cash from Ops 1H End of Q2 Debt ● STAR TREK SOFT LAUNCH $10.0M
Slide 4: ESGG Q2 Operating Metrics
ESGG Q2 Operating Metrics Record (DAU) & (MAU) – Increasing ARPDAU Stable DAU + 43% MAU +69% vs Q2 21’ 4 DAU, MAU and ARPDAU - Refer to definitions on Non-GAAP measures in MD&A.
Slide 5: Game Kit Mission
GAME KIT MISSION We enable CREATORS to SUCCESSFULLY deliver memorable MOBILE GAMING experiences that engage players EVERY DAY.
Slide 6: Iconic Global Franchises
Canada: Feb. 8, 2022 ICONIC Global Franchises Marquee 2H 2022 Launches By Fans for Fans 6
Slide 7: New Genres, New IP Partners, New Idle
New Genres New IP Partners New Idle Merge, Match, Master, New Dev Partners Formulas 7 Blitz
Slide 8: 2021-22 Active Games Only
2021-22 ACTIVE GAMES ONLY* CAD (Millions) 1H 2022 2021 REVENUE $29.9 $83.6 Gaming $22.2 $61.3 Advertising $7.7 $22.3 COST OF SALES $8.9 $27.7 GROSS PROFIT $21.0 $55.8 adjEBITDA $7.8M $17.1M 2021 20.5% margin 1H22 26.1% margin *Excludes all games in development, Growth games such as RuPaul or The Off
Slide 9: Contingent Compensation Write Down and NCIB
Contingent Compensation Write Down At our current run rate of 130M, achieving the 150M milestone is significantly at risk. With many new titles launching in late Q3 and early Q4, there is still some possibility. We have been advised to write this liability down for now, resulting in higher than expe
Slide 10: Q2 Financial Highlights
Q2 Financial Highlights CAD (Millions) Q2 2022 Q2 2021 32% ∆ REVENUE $29.7 $22.5 32% Quarterly Revenue growth of 32% vs. Gaming 22.0 16.5 33% same period 2022 and reduction of Advertising 7.7 6.1 26% YOY 17% over Q1 2022 COST OF SALES 10.6 8.5 25% GROWTH GROSS PROFIT $19.1 14.0 36% Gross Margin % 64
Slide 11: Summary
SUMMARY Continue to execute against plan • NEW LAUNCH GROWTH from The Office: Somehow We Manage and RuPaul’s Drag Race Superstar. Core Portfolio revenue dropped more than forecast but was offset by new title growth. • TEAM EXPANSION Strong Hiring Pipeline. As many of our peers such as Jam City and U
Slide 12: Q&A Analyst
Q&A ANALYST
Slide 13: Contact Us
LEADERS IN FREE TO PLAY MOBILE GAMES TSX: EAGR OTCQB: EAGRF Contact Us Investor Relations Follow @esggroupinc on info@eastsidegamesgroup.com IR@eastsidegamesgroup.com Ph: + 1 604.288.4417 Ph: + 1 604.288.4418 www.eastsidegamesgroup.com
East Side Games Group — Q2 2022 Earnings Presentation on 6ix