Huuuge, Inc. · GPW:HUG

Huuuge — Q3 2022 Earnings Presentation

22 slides from Huuuge's earnings presentation, November 2022

  1. Slide 1: Q3 2022 Presentation

    Q3 2022 Presentation November 2022

  2. 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

  3. Slide 3: Today's Presenters

    Today’s Presenters Rod Cousens Jon Bellamy Marek Chwalek Co - Chief Executive Officer Chief Commercial Officer EVP Finance 3

  4. Slide 4: Q3 - a Quarter of Record Highs

    Q3 22 - a Quarter of Record Highs $77m Revenue The mobile market declined 12.7% YoY, reinforcing the vs. $92m Q3‘21 need for a focus on business and financial fundamentals $24.5m Record high Sales Margin at 51.0% thank to focus on user Adj. EBITDA acquisition optimization vs. $17.7m Q3 ‘21 32% Improv

  5. Slide 5: 9M at a Glance

    9M 22 at a Glance $42.1m Strong Operating Cash Flow generation despite challenging Net Operating Cash Flow macroeconomic conditions vs. $18.9m 9m ‘21 Robust cash position of $193m as of 30th September 2022, post Share Buy Back and Traffic Puzzle payments $241m Revenue vs. $285m 9M ‘21 9M 2022 adjusted

  6. Slide 6: Business Update

    BUSINESS UPDATE “a e

  7. Slide 7: Core Franchises: Today

    Core Franchises: Today Harvesting long-term profits ● Continued best in class monetization metrics (conversion, ARPDAU and ARPPU) vs peers driven by our Clubs and social features as well as excellent monetization skills ● ~$40M Sales Margin contribution in 3Q, the highest in two years, alongside marg

  8. Slide 8: Core Franchises: Live Projects

    Core Franchises: Live Projects More upside from everlasting player relationships Successful Economy update in HC/BC - resulting in the highest monthly conversion in the history - 10.7% in 3Q 2022. Updated economy will guarantee long term revenue sustainability and give reason to play, stay and pay f

  9. Slide 9: Traffic Puzzle

    Traffic Puzzle Multi-SKU strategy Traffic Puzzle accounted for 7% of total revenue in Q3 ‘22 Technical testing of the first successive SKU based on the TP platform will commence in December ‘22. Soft launch slated for Q1/Q2 ‘23 UA spend has been temporarily reduced as we make architectural changes to the

  10. Slide 10: Financial Update

    FINANCIAL UPDATE

  11. Slide 11: Financial Performance

    Financial Performance USD m 9M 22 9M 21 YoY Q3 22 Q3 21 YoY Core Franchises 215.2 250.9 -14.2% 71.0 80.5 -11.9% Traffic Puzzle 22.1 24.6 -10.2% 5.7 8.7 -35.2% 01 Revenue change follows largely the reduced UA spend as well as the post-pandemic market Other 3.6 9.7 -62.6% 0.9 2.8 -67.3% environment and

  12. Slide 12: Balance Sheet

    Balance Sheet September 30 December 31 USDm 2022 2021 01 01 Includes mainly Traffic Puzzle carrying value of Non-current assets 60.3 67.5 $33.4m and office leases 02 Current assets 218.2 232.4 Total assets 278.5 299.9 02 Primarily cash and cash equivalents ($193.1m, or 89% of current assets) Total equit

  13. Slide 13: Cash Flows

    Cash Flows USDm 9M 22 9M 21 Q3 22 Q3 21 01 Strong OCF generation from H1 2022 continues Pre-tax profit 39.3 -15.5 18.6 9.8 in Q3 affected by $3.7m of the income tax paid 01 Net Operating CF 42.1 18.9 15.8 18.8 (relative to the $4.8m total paid in 9M 2022) 02 Investing CF -32.0 -13.7 -5.3 -1.7 02 Inve

  14. Slide 14: Highly Cash Generative Business

    Highly Cash Generative Business ● Focus on profitability of our products, continuous optimization of cost base, positive RoI projects lead to positive FCF ● LTM net OCF / Adjusted EBITDA at 72% 14

  15. Slide 15: Q3 22 Highlights

    Q3 22 HIGHLIGHTS

  16. Slide 16: Key Highlights

    Key Highlights Continued progress as the globally #1 monetizing social casino business Shift towards optimising user acquisition efficiency and maximising RoI, with a focus on the most redemptive channels Additional opex discipline applied, cutting discretionary expenses and moving more cost from fixed

  17. Slide 17: Thank you

    Thank you For more information please see https://ir.huuugegames.com

  18. Slide 18: Appendix

    APPENDIX

  19. Slide 19: Financial data

    | Financial data P&L (USDm) Q221 321 Q421_ 122 Q222_—-Q322 Revenue 975 920 885 840 794 775 Cost of sales 294 280 258 255 240 238 Gross profit/(loss) on sales 68.2 64.0 62.7 58.5 55.4 53.8 Sales and marketing expenses, including 993 341-296 «299-274 17.7 User acquisition marketing campaigns “348 299

  20. Slide 20: Appendix - KPI's

    a Appendix - KPI's (users) FV2017 FY 2018 _FY2019 FY2020_FY2021 1q19__2019 3019 _4a19__ 192020203920 402010212021 3021 4a21__ 192220223022 Total DAU 632,113 850,717 911,048 947,188 789,831 674,002 876,371 913,997 979,820 980224 970,211 44456 893,861 688,781 773,229 769,744 727,568 701,620 671,967 55

  21. Slide 21: 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

  22. Slide 22: For more information please see https://ir.huuugegames.com

    For more information please see https://ir.huuugegames.com

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