Huuuge, Inc. · GPW:HUG
Huuuge — Q2 2024 Earnings Presentation
18 slides from Huuuge's earnings presentation, September 2024
Slide 1: Q2 2024 Presentation
Q2 2024 PRESENTATION SEPTEMBER 2024
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: Q2 2024 Highlights
Q2 2024 HIGHLIGHTS $63m Revenue Huuuge Casino and Billionaire Casino surpassed $2B -8.4% YoY, -5.4% QoQ lifetime revenue Delivering strong cash flows, maintaining profitability focus $19m Adj. EBITDA $32.7m net cash flows from operations generated in H1’24 -29.3% YoY, -11.4% QoQ Core franchises: DAU st
Slide 5: Business Update
" PB BUSINESS“ ” £& UPDATE — Oe HUUUGE ©
Slide 6: Q2 2024 Core Franchises
Q2 2024 CORE FRANCHISES ● Core franchise revenue in H1 2024 declined YoY due to the social casino ● DAU increased by 2.7% YoY, decreased by 1.7% QoQ market weakness ● ARPDAU decreased by 8.6% YoY and 3.6% QoQ ● User acquisition (UA) spend for core franchises increased by 71% YoY in H1 ● ARPPU increa
Slide 7: Core Franchises: DTC Channel Growth
CORE FRANCHISES: DTC CHANNEL GROWTH Direct-To-Consumer channel share in revenue reached almost 12% in Q2 2024 Direct-To-Consumer (Webshop) Revenue as % of Total Revenue ● DTC revenue reached almost 12% of the total revenue in Q2 2024 ● We continue to invest further in this channel and we expect more
Slide 8: Huuuge Pods
HUUUGE PODS Multiplayer, multiplatform games for worldwide audiences ● Several pods are currently working on new games, with a total headcount of fewer than 40 FTEs ● Development is still in the early stages. We tested several prototypes in Q2 2024 and are planning two MVP/tech launches in H2 2024.
Slide 9: Financial Update
_ FINANCIAL UPDATE G
Slide 10: Financial Performance
FINANCIAL PERFORMANCE $m Q2 24 Q2 23 YoY Q1 24 QoQ 01 In line with our prior guidance for the first half of the year, overall Q2 24 revenue declined YoY and QoQ Core Franchises 61.7 66.1 -6.6% 65.1 -5.2% driven by both core and new franchises. Gross Other 1.6 3.1 -48.2% 1.9 -14.2% profit decline mitig
Slide 11: Balance Sheet
BALANCE SHEET $m June 30, 2024 December 31, 2023 01 Includes mainly intangible assets, office leases, 01 Non-current assets 32.1 29.8 and a $3.5m long-term investment in Bananaz 02 Current assets 141.0 187.6 Studios Primarily cash and cash equivalents ($109.6m, Total assets 173.1 217.4 02 or 78% of cu
Slide 12: Cash Flows
CASH FLOWS $m H1 24 H1 23 Q2 24 Q2 23 01 Pre-tax profit decreased YoY in H1 2024 mainly as a result of increased UA spend and lower revenue 01 Pre-tax profit 38.5 52.5 18.4 26.5 Net operating CF decreased YoY in H1 2024, but 02 Net Operating CF 32.7 37.4 18.3 20.5 02 profit-to-OCF conversion was signifi
Slide 13: Highly Cash Generative Business
HIGHLY CASH GENERATIVE BUSINESS In H1 2024 we delivered adjusted EBITDA of $41.4m and net operating cash flow of $32.7m We recognize that we are one of the most cash generative businesses in the games industry (as measured by Net OCF to adjusted EBITDA conversion) Even after returning around $220 mil
Slide 14: Market Positioning: New Guidance for 2024
MARKET POSITIONING Maintaining high profitability despite weaker revenue New Guidance for 2024 (% YoY dynamics) KEY HIGHLIGHTS ● Negative impact on player behavior from the macroeconomic Revenue DECLINE environment and roadmap pushed to H2 ● Feature roadmap for H2 2024 is exciting, laying a strong fo
Slide 15: Thank You
Delivering strong cash flows $32.7m net cash flows from operations generated in H1’24 Strong balance sheet enables pursuit of THANK high quality M&A A Actively seeking game-changing acquisitions Core franchises: DAU stabilizing, YOU ARPPU remains strong Direct-To-Consumer channel growth DTC responsibl
Slide 16: Financial Data
FINANCIAL DATA Profit & Loss account (USD m) 2021 2022 2023 Qi22 222 93.22 422 123 92.23 93.23, 9423 Qi24 224 Revenue 9737 3186 283.4 84.0 79.4 775 TT TT 69.2 TZ 713 67.0 64 Cost of sales 1122 989 £26 255 240 238 236 aa 208 20.6 20.5 “191 176 Gross profit/(loss) on sales 261.8 2217 200.9 58.5 55.4 5
Slide 17: Appendix - KPI's
APPENDIX - KPI'S (users) FY2017 | FY2018 |FY2019 _FY2020 _FY.2021_FY.2022 FY2023, —_ 1.2020. 022020 037020 42020 1.2021 92.2021 037021 042021 12022 Q22022 032022 042022 01.2023 422023 032073 04202312024 2.2024 Total DAU 632,113 850,717 911,088 947,188 709,831 610489 429,787 980,228 970,211 944456 89
Slide 18: 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