Huuuge, Inc. · GPW:HUG
Huuuge — Q3 2023 Earnings Presentation
21 slides from Huuuge's earnings presentation, November 2023
Slide 1: Q3 2023 Presentation
Q3 2023 PRESENTATION NOVEMBER 2023
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 2023 Highlights
Q3 2023 HIGHLIGHTS First HC & BC QoQ revenue growth in several quarters $1.88 ARPDAU HC & BC QoQ revenue growth of 4.2% vs. $1.77 Q3 ’23 outperforming the declining social casino market (-2.2% QoQ)* Another quarter of growing Direct-To-Consumer channel $72m cost of sales almost flat QoQ REVENUE vs. $
Slide 5: Business Update
BUSINESS UPDATE
Slide 6: Core Franchises in Q3 2023
CORE FRANCHISES IN Q3 2023 First QoQ revenue & DAU growth in a year ● Our marketing spend in Q3 2023 was higher QoQ as we have been able to increase spend and maintain paybacks within our risk tolerance ● Best in class monetization metrics have increased (conversion, ARPDAU and ARPPU) thanks to incr
Slide 7: Core Franchises: Player Metrics Improvement
CORE FRANCHISES: PLAYER METRICS IMPROVEMENT Recent HC economy upgrade, new loyalty program and higher marketing spend had a positive impact on our player metrics in Q3 2023 Core franchises’ main KPIs improvement DAU +1% QoQ, ARPDAU +3% QoQ, DPU +3% QoQ MAU Core franchises +17% (since February 2023)
Slide 8: Core Franchises: Direct-to-Consumer Channel Success
CORE FRANCHISES: DIRECT-TO-CONSUMER CHANNEL SUCCESS Progress has accelerated rapidly over the past few months Direct-To-Consumer (Webshop) Revenue as % of Total Revenue ● Webshop performance YTD has exceeded our internal expectations ● DTC revenue reached almost 7% of the total revenue in Q3 2023 wi
Slide 9: Huuuge Pods
HUUUGE PODS Multiplayer multiplatform games for worldwide audiences ● Four Pods are operational with a goal of driving new growth for Huuuge - new games, new audiences. We need to acknowledge however that it is a multi-year plan and we are at an early stage ● We anticipate bringing multiple projects
Slide 10: Financial Update
we FINANCIAL UPDATE
Slide 11: Highly Cash Generative Business
HIGHLY CASH GENERATIVE BUSINESS We are proud to report that for T12M ended September 30th 2023 we have generated adjusted EBITDA of USD 112m and net operating cash flow of USD 86.5m Cash is king in an uncertain environment and we are a fundamentally strong business in an extremely fortunate position
Slide 12: Financial Performance
FINANCIAL PERFORMANCE USD m 9M 23 9M 22 YoY Q3 23 Q3 22 YoY Core Franchises 203.0 215.2 -5.7% 68.9 71.0 -2.9% Traffic Puzzle 7.6 22.1 -65.8% 1.8 5.7 -67.4% Other 1.6 3.6 -56.4% 0.5 0.9 -49.1% 01 Overall revenue decline was driven mostly by no 01 Revenue 212.1 240.9 -12.0% 71.2 77.5 -8.2% longer suppor
Slide 13: Balance Sheet
BALANCE SHEET USDm September 30, 2023 December 31, 2022 01 Includes mainly intangible assets and office 01 Non-current assets 30.5 37.4 leases 02 Current assets 163.5 248.9 02 Primarily cash and cash equivalents ($127.7m, or 78% of current assets). Strong net cash Total assets 194.0 286.3 position eve
Slide 14: Cash Flows
CASH FLOWS USDm 9M 23 9M 22 Q3 23 Q3 22 Pre-tax profit 75.4 39.3 22.9 18.6 01 Net operating CF increased significantly YoU both in 9M’23 and Q3’23, but was negatively affected by 01 Net Operating CF 57.6 42.1 20.2 15.8 income tax paid by Group companies 02 The positive investment CF both in 9M’23 and
Slide 15: Outlook for 2023 - Reiterating Our View
OUTLOOK FOR 2023 - REITERATING OUR VIEW 2023 OUTLOOK (YoY) KEY HIGHLIGHTS SLIGHT Revenue DECLINE ● We reiterate our 2023 directional outlook presented during our FY2022 and upheld during recent quarterly investor calls SIGNIFICANT ● With headcount now lower by over 20% vs 2022, materially lower cost
Slide 16: Thank You
HC & BC QoQ revenue growth of 4.2% outperforming the declining social casino market (-2.2% QoQ)* THANK T12M Adj. EBITDA reached $112m and Net OCF $86.5m consistently delivering high profitability and strong cash generation YOU Strong cash position $128m as of 30.09.2023 Cash distribution to sharehold
Slide 17: Financial Data
FINANCIAL DATA Profit & Love account (USD m) 2017__2018__2019_ 202020212022 at 2022032020 ai21_ azar a321_ ata) azar 0322_ aaa 2s_ 9223 9323 Revenue 1527 794 | 38279737186 760888785 ~~~ «92S 734773) 777_| 77] 682 712 Ccostof sales “488 73, “96 122,988 wo te 238 283 2a 200 | 268 “403361203 206 {Greos
Slide 18: Appendix - KPI's
APPENDIX - KPI'S (users) FY 2017 FY 2018 FY2019 FY 2020 FY 2021 FY 2022 4020__Q121__a221__Q321__421__ai22_ 22223224221 23__—a223 93 23 Total DAU 632,113 850,717 911,048 947,188 789,831 610,489 893,861 888,781 773,229 769,744 727,568 701,620 671,967 557,666 510,702 468,395 426,045 415,491 Core Franch
Slide 19: 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
Slide 20: Governance Details
GOVERNANCE DETAILS Shareholders VOTES AGM ELECTION Board of Directors 5 members: 1 executive and 4 non-executive (incl. 2 independent) Audit committee Remuneration committee CEO Global Management To learn more please visit: https://ir.huuugegames.com/governance
Slide 21: Thank You
THANK YOU For more information please see ir.huuugegames.com