Enthusiast Gaming Holdings Inc · TSX:EGLX
Enthusiast Gaming — Q3 2022 Earnings Presentation
32 slides from Enthusiast Gaming's earnings presentation, Nov 14, 2022
Slide 1: Investor Relations Deck Q3 2022 Results
ENTHUSIAST GAMING Nasdaq: EGLX TSX: EGLX Investor Relations Deck Q3 2022 Results Nov 14, 2022
Slide 2: Integrated gaming entertainment company
An integrated gaming entertainment company, building a media and content platform for video game and esports fans to connect and engage worldwide. We connect the world's gamers through our communities, content, creators, and experiences ENTHUSIAST GAMING 2
Slide 3: Our Mission
Our Mission To build the world’s largest platform of communities for gamers and esports fans ENTHUSIAST GAMING 3
Slide 4: Q3 2022 Results Highlights: Financial
Q3 2022 RESULTS HIGHLIGHTS Financial REVENUE GROSS PROFIT GROSS MARGIN DIRECT SALES SUBSCRIPTION REVENUE $50.6M $16.6M $10.1M $3.8M Q322 32.7% +17%YOY +64%YOY +49%YOY +51%YOY $205.8M LTM Q3 2022 REVENUE 9M YTD $148.9M $45.4M $24.6M $10.7M 30.5% +35%YOY +89%YOY +84%YOY +67%YOY ● Secured $10 million e
Slide 5: Q3 2022 Results Highlights: Operational
Q3 2022 RESULTS HIGHLIGHTS Operational ● Renewals and additional business with existing customers ● EV.IO limited edition NFT mint of 2,500 tokens sold out in six accounted for 65% of direct sales. hours at a price between 2.00-2.50 SOL. Key notable partners including State Farm, HBO Max, Lego, Hulu
Slide 6: Recent Developments
Recent Developments Jul Aug Sep 2022 2022 2022 ● Signed multi-year partnership with the NFL to launch ● Hosted live event - Pocket Gamer Connects Helsinki ● AGM a first-of-its-kind gaming collaboration, NFL Tuesday Night Gaming (NFL TNG), which debuted on ● Secured $10 million expansion of credit fac
Slide 7: Enthusiast Gaming At a Glance
Enthusiast Gaming At a Glance Massive Cross-Platform Scale 31.0B 260K+ $205.8M 35% 89% YTD 3Q 2022 Total Paying Subscribers LTM Q3 2022 Q3 2022 YOY Q3 2022 YOY Content Views (↑26% YOY) Revenue (↑3% YOY) Revenue Growth Gross Profit Growth 300M+ 500+ TOP 100 224M 50 Monthly Viewers 1 Influencers Interne
Slide 8: The Enthusiast Gaming Universe
The Enthusiast Gaming Universe Gaming Gaming 50+ Talent & Esports Entertainment Sites Communities 700+ YouTube Channels 8+ TikTok Channels 11 Esports Teams As of Nov 14, 2022 ENTHUSIAST GAMING 8
Slide 9: Our Reach
Our Reach Viewers 78M Reach passionate gaming communities 49M through Enthusiast’s network of sites and YouTube channels 45M 27M Over 70% of Enthusiast Gaming’s audience 27M is comprised of Gen Zs and Millennials who 21M rely on the Enthusiast Gaming platform to learn, engage, communicate, create, a
Slide 10: We are the Fan Experience
Websites Video Content 50+ websites publishing Recurring & custom We are the unique content across video content the video game spectrum Fan Experience Gaming Development Teams Addicting Games Luminosity Gaming servers as casual game includes 9 esports studio and developer teams, and 2 franchise Our
Slide 11: Our Four Pillars
Our Four Pillars COMMUNITIES CONTENT CREATORS EXPERIENCES We buy, build, and monetize video In collaboration with our creators, Enthusiast Gaming is the home More than 50 live and virtual game fan communities, where Gen we produce the most compelling for gamers and content events, include the Pocket
Slide 12: NFL Tuesday Night Gaming Live Broadcast
National Football League - NFL Tuesday Night Gaming Live Broadcast NFL TNG is a first-of-its-kind gaming collaboration between the NFL and Enthusiast as partners, bringing NFL players and Legends together with top gaming content creators. TNG Related Sponsors: https://nflcommunications.com/Pages/Nati
Slide 13: Why Invest In Enthusiast Gaming
Why Invest In Enthusiast Gaming • Well positioned as a market leader • One of the largest vertically-integrated gaming media companies in the world, with over 300+million monthly viewership • Unique demographic advantage Visited Gaming Property in 2 • Reaching the elusive Gen Z & Millennials demos,
Slide 14: Leadership
Leadership Adrian Montgomery Alex Macdonald Bill Kara Chief Executive Officer Chief Financial Officer President A senior officer and director of several Experienced public company CFO and Bill oversees the day-to-day operations public and private companies in the financial professional. Formerly CFO of of
Slide 15: Financial Overview
Financial Overview ENTHUSIAST GAMING 15
Slide 16: Q3 2022 Financial Results Highlights
Q3 2022 Financial Results Highlights REVENUE QUARTERLY GROSS PROFIT C$m C$m +35% +17% Record Gross Profit ENTHUSIAST GAMING 16
Slide 17: Key Operating Metrics
Key Operating Metrics PAID SUBSCRIBER GROWTH DIRECT SALES GROWTH TOTAL VIDEO AND WEB VIEWS AS AT END OF PERIOD ‘000 paid subscribers ENTHUSIAST GAMING 17
Slide 18: Q3 2022 Operating Results
Q3 2022 Operating Results (C$million) Q322 Q321 Q3 22 Commentary Revenue 50.6 43.3 ● Strong increase in direct sales and M&A contribution, significant contribution to gross profit Media and ● 13% higher RPM YOY for the video platform offset the impact of decrease in video views 44.5 38.7 ● Excluding v
Slide 19: Strengthening Balance Sheet
Strengthening Balance Sheet C$million Sep 30, 2022 Dec 31, 2021 Cash 15.8 22.7 Trade receivables and other current assets 37.6 33.8 PP&E and other non-current assets 300.7 331.3 Total Assets 354.1 387.8 Current Liabilities 44.7 68.4 Long-term debt 16.5 7.7 Others non-current liabilities 28.5 48.9 To
Slide 20: Summary
Summary ▪ Continued focus on higher yield and higher margin revenue opportunities ▪ Existing capital to execute business strategy, and a strengthened balance sheet ▪ Continued significant growth in gross profit, paired with stabilized operating expenses ENTHUSIAST GAMING 20
Slide 21: Cautionary Statements / Investor Relations Contact
CAUTIONARY STATEMENTS This presentation is for information purposes only and does not constitute an offer to sell or a solicitation of an offer to buy securities. The information contained herein has been prepared for the purpose of providing interested parties with general information to assist the
Slide 22: Appendix
Appendix: • Case Study • Sustainability • Capital Structure ENTHUSIAST GAMING 22
Slide 23: Essie x The Sims Resource
Appendix – Case Study COMMUNITIES - CASE STUDY ESSIE X THE SIMS RESOURCE 1.57MM Total Impressions From the Sims Resource 157K Total Impressions From Influencer Advocacy 94% Video Completion Rate From YouTube Media ENTHUSIAST GAMING 23
Slide 24: H&R Block
Appendix – Case Study COMMUNITIES - CASE STUDY H&R BLOCK H&R Block successfully raised the awareness of their young target audience (The Do It Yourselfer) across our YouTube Video Network We partnered with Nielsen DAR to track how well we performed INCREDIBLE 93%+ 95%+ PERFORMANCE VCR VIEWABILITY EN
Slide 25: P&G
Appendix – Case Study COMMUNITIES - CASE STUDY P&G Utilizing our YouTube channels drove awareness among Gen Z and Millennial gamers of P&G’s Bounty brand Lowest Cost per reach partner Repeat business with P&G ENTHUSIAST GAMING 25
Slide 26: LEGO x Luminosity Academy
Appendix – Case Study COMMUNITIES - CASE STUDY LEGO X LUMINOSITY ACADEMY LEGO tapped into Luminosity talent to inspire and engage next gen esports creators with a mentorship program Increase awareness of LEGO Technic and maintain current fans via their passion for cars and engineering ENTHUSIAST GAM
Slide 27: Samsung x Nickeh30
Appendix – Case Study COMMUNITIES - CASE STUDY SAMSUNG X NICKEH30 1.55MM Youtube Impressions 2.3MM Social Impressions 17.1MM Stream Impressions ENTHUSIAST GAMING 27
Slide 28: Addicting Games
ADDICTING GAMES With 1500+ games, Addicting Games is one of the most recognizable developers/hosts of casual and mobile games. That’s why Barstool Sports once referred to AddictingGames.com as “The Greatest Website of All Time”. Browser-Based Educational Game, Integrates With NFT Integration With Cu
Slide 29: Addicting Games x Hut 8
Appendix – Case Study CASE STUDY ADDICTING GAMES X HUT 8 EV.IO Browser-Based First-Person Shooter NFT Integration For Players CRYPTO Custom Content, Custom Skins + Tournaments ENTHUSIAST GAMING 29
Slide 30: Growth Through Strategic Acquisitions
Growth Through Strategic Acquisitions Since 2019, we have successfully acquired or made significant investments in and integrated 24 companies. We continue to be disciplined in pursuing value-enhancing, highly-strategic acquisitions. Independent gaming web and video properties can benefit from Enthusi
Slide 31: Capital Structure
Capital Structure Market Cap: ~C$135m/~US$100m Analyst Coverage Common Shares Outstanding (“CSO”) 151,037,518 Scotiabank Kevin Krishnaratne RBC Drew McReynolds Options 4,891,021 Canaccord Genuity Robert Young Restricted Shares Units 3,773,526 Paradigm Capital Alexandra Ricci Fully Diluted 159,702,06
Slide 32: Enthusiast Gaming
EnthusiastGaming
Enthusiast Gaming Holdings — Q3 2022 Earnings Presentation on 6ix