Huuuge, Inc. · GPW:HUG
Huuuge — FY2020 Earnings Presentation
27 slides from Huuuge's earnings presentation, April 2021
Slide 1: A Global Success Story in Gaming: 2020 Results & Outlook
VISION To transform mobile gaming into a massively social experience. MISSION A Global Success Empower billions of people Story in Gaming to play together. 2020 Results & Outlook OPPORTUNITY April 2021 To partner with the highest potential game creators and studios globally.
Slide 2: Disclaimer
Disclaimer This presentation (“Presentation”) has been prepared by Huuuge, Inc. (the “Company”). By reading the Presentation, you agree to be bound by the following limitations. This Presentation is strictly confidential to the recipient. Neither this Presentation or any part hereof nor the informati
Slide 3: Today's presenters
Today’s presenters Anton Gauffin Elad Kushnir Grzegorz Kania Tal Shoham CEO CMO COO CFO (Founder) 18 years at Huuuge Games 3 years at Huuuge 6 months at Huuuge 1 year at Huuuge 18 years in industry 11 years in industry 23 years of total experience 8 years in industry 3
Slide 4: Agenda
Agenda Page 01 2020 highlights 5 02 Business update 7 03 Financial update 11 4
Slide 5: 2020: A year like no other
2020: A year like no other Huuuge™ enables people to play together and we are on a mission building a smart connected network powering exceptional games bringing a lot fun and $333m social engagement for players around the world Revenue Thinking creatively and offering unique experiences attracted l
Slide 6: Agenda
Agenda Page 01 2020 highlights 5 02 Business update 7 03 Financial update 9 11 6
Slide 7: Core franchises
Core franchises We Continued to Build One Of The Most Professional Games Teams on the Globe ● Hired over 110 Global Games Creating user experiences with more reasons Industry Experts to Play, Stay, and Pay We Delivered a Best-in-Class Feature Roadmap $312m Solid increase of monetization KPIs ● Huuug
Slide 8: New franchises
New franchises Accelerating growth resulting in increased revenue diversification TRAFFIC PUZZLE Launch: April 2019 % New franchises as % of 2020 highlights: 9 total revenue 4Q20 +2.6x Daily avg revenue +2.2x DAU yoy Record high revenue in 4Q20 % New franchises as % of 11 total revenue in December 20
Slide 9: The Evergreen Nature of Our Games
The Evergreen Nature of Our Games Quarterly revenue cohorted by the year of install ($m) Truly social - driving monetization to best in class KPI’s $184 44% 84% 74% of MAU are part of playing users of playing users of a club interact with other are part of one or players more clubs ARPDAU of a clubb
Slide 10: Agenda
Agenda Page 01 2020 highlights 5 02 Business update 7 03 Financial update 11 10
Slide 11: Financial highlights
Financial highlights $333m $57m $89m $259m $72m $15m $25m $3m 2019 2020 2019 2020 4Q19 4Q20 4Q19 4Q20 Revenue Adjusted EBITDA Revenue Adjusted EBITDA ● 28% yoy revenue growth in FY20 ● 24% yoy revenue growth in 4Q20 driven by both core and new franchises, high base of 4Q19 due to improvement in game
Slide 12: Financial performance FY20 and 4Q20
Financial performance FY20 and 4Q20 USDm 4Q20 4Q19 Change 2020 2019 Change 01 Revenue 89.2 72.1 24% 332.7 259.4 28% 011. FY20: Revenue growth driven by core franchises (+24% yoy) as well as new franchises that grew by 2.8x Gross profit/(loss) on sales 62.9 50.2 25% 233.1 180.2 29% Sales and marketing
Slide 13: Adjusted vs reported
Adjusted vs reported USDm 4Q20 4Q19 Change 2020 2019 Change EBITDA 1.5 8.6 -82% 53.5 16.2 230% One offs 0.0 6.5 0.0 6.5 ESOP 1.5 0.4 3.8 2.1 Adjusted EBITDA 3.1 15.5 -80% 57.3 24.8 131% Adjusted EBITDA margin 3% 22% 17% 10% (%) Net result for the year -107.4 5.0 -82.6 4.3 One offs 0.0 6.5 0.0 6.5 ES
Slide 14: Balance Sheet FY20
Balance Sheet FY20 USDm 2020 2019 Non-current assets 17.3 4.7 1. 01 FY20: Over 70% of current assets is cash 01 Current assets 124.5 48.4 2. 02 FY 20: Negative equity due to retained earnings/loss Total assets 141.8 53.1 (connected with revaluation of preferred) and treasury shares (redeemed in Janu
Slide 15: Cash Flows FY20 and 4Q20
Cash Flows FY20 and 4Q20 USDm 4Q20 4Q19 2020 2019 01 1. FY20: (i) an increase in EBIT of USD 36m and (ii) a Pre-tax profit -108.2 7.3 -76.2 8.9 favorable change in NWC of USD 20m. 01 Operating CF 15.0 5.7 73.2 13.0 2. 02 FY20: mainly acquisition of PP&E and Intangibles, 02 Investing CF -1.9 -0.2 -5.5
Slide 16: IPO summary
IPO summary Shareholders structure Value of the offering $442M The largest gaming IPO in Poland and the largest mobile gaming IPO in Europe 30.68% Approx. 51.25% $100M proceeds from issue of shares, net of costs and funds used for stabilization 12.96% 5.10% Investors from over 20 countries in IPO Ot
Slide 17: Trading update: investing in scaling
Trading update: investing in scaling Core franchises ($m) Revenue UAMC New franchises ($m) Revenue UAMC +27% +16% 3.2x Revenue total Revenue core franchises Revenue new franchises growth in 1Q’21 growth in 1Q’21 growth in 1Q’21 - record high 4th quarter in a row Note: preliminary and not audited dat
Slide 18: 2021 Focus - Build & Buy strategy
2021 Focus - Build & Buy strategy BUY PIPELINE of potential opportunities ~75 ~75 opportunities | Longlisted ~25 ~25 opportunities | Shortlisted Target profile: ~5 ~5 opportunities | Active pursuit + Consistent revenue growth + EBITDA generative + Proven revenue stream(s) + Casual or Social Casino ge
Slide 19: For more information please see ir.huuugegames.com
For more information please see https://ir.huuugegames.com
Slide 20: Appendix
Appendix 20
Slide 21: Appendix - KPI's
Appendix - KPI’s FY 2017 FY 2018 FY 2019 FY 2020 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 Total DAU 632 113 850 717 911 048 947 188 874 002 876 371 913 997 979 820 980 224 970 211 944 456 893 861 Core Franchises 509 356 772 029 769 134 628 119 801 215 758 581 769 710 747 029 721 866 645 541 577 293 5
Slide 22: Appendix - KPI's
Appendix - KPI’s FY 2017 FY 2018 FY 2019 FY 2020 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 Conversion (daily, DPU/DAU) 2,2% 2,5% 2,8% 2,9% 2,8% 2,7% 2,9% 2,8% 2,8% 2,9% 2,7% 3,1% Core Franchises 2,6% 2,7% 3,1% 3,8% 3,1% 3,0% 3,0% 3,3% 3,5% 3,9% 3,9% 4,2% New franchises n/a 0,5% 1,5% 1,0% 0,4% 0,4% 2,3
Slide 23: Appendix - Trading update
Appendix - Trading update Revenue and user acquisition marketing campaign costs ($m) Core franchises Continued growth in core franchises, +24% in 4Q20 yoy and + 16% in 1Q21 yoy UAMC/revenue at 27% on average in 1Q20-1Q21 New franchises Accelerating new franchises revenue, 2.1x growth in 4Q20 yoy and
Slide 24: Appendix - P&L and Balance Sheet
Appendix - P&L and Balance Sheet Profit & Loss account [USD'000] 4Q20 4Q19 2020 2019 Balance sheet [USD'000] 2020 2019 Revenue 89 192 72 101 332 721 259 391 Assets Non-current assets Cost of sales -26 334 -21 876 -99 622 -79 147 Property, plant and equipment 2 703 1 414 Right-of-use assets 8 646 2 81
Slide 25: Appendix - Cash flow statement
Appendix - Cash flow statement Cash flow statement [USD'000] 4Q20 4Q19 2020 2019 Cash flows from operating activities Profit/(loss) before tax -108 173 7 259 -76 244 8 853 Adjustments for: 0 0 Depreciation and amortization 1 468 542 3 330 2 029 Interest (income)/expense 33 167 67 -116 Foreign exchange (
Slide 26: 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. Activities aimed at increasing the player en
Slide 27: All data available on ir.huuugegames.com
All data available on ir.huuugegames.com 27