Huuuge, Inc. · GPW:HUG
Huuuge — Q1 2021 Earnings Presentation
39 slides from Huuuge's earnings presentation, May 2021
Slide 1: A Global Success Story in Gaming
VISION To transform mobile gaming into a massively social experience MISSION A Global Success Empower billions of people Story in Gaming to play together Q1 2021 Results & Outlook OPPORTUNITY To partner with the highest potential game creators and studios globally May 2021
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 (Founder) COO CFO 3
Slide 4: Agenda
Agenda Page 01 Q1 2021 highlights 5 02 Business update 7 03 Financial update 13 04 Huuuge Fuel 19 4
Slide 5: Q1 2021 Summary
Q1 2021 Summary Another quarter of record high revenue and continued improvement in KPI’s, while also +26% YoY revenue growth investing in growth in Q1 2021 IPO geared us in additional cash for Build&Buy strategy and we now have USD +1.5pp Core franchises 176m net cash as of Q1 2021 monthly conversi
Slide 6: Agenda
Agenda Page 01 2020 highlights 5 02 Business update 7 03 Financial update 9 13 04 Huuuge Fuel 19 6
Slide 7: Core franchises
Core franchises ● Record high quarterly revenue in Continued consistent improvement of our core franchises driven by optimized core franchise KPI’s live operations calendar and pricing strategies. Solid increase of monetization KPIs $84m ● Strong content roadmap which $40 $32 allowed us to release 6
Slide 8: The Evergreen Nature of Our Games
The Evergreen Nature of Our Games Quarterly revenue cohorted by the year of install ($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 9: New franchises
New franchises Accelerating growth resulting in increased revenue diversification New franchises as (%) of total revenue Revenue from new franchises (USD M) 11.4 3.7 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2019 2020 2021 2019 2020 2021 12% 2.1x 3.1x New franchises as % of Number of dail
Slide 10: Traffic Puzzle Acquisition: A Unique, High-Growth Match-3 Game
Traffic Puzzle Acquisition A Unique, High-Growth Match-3 Game Puzzle game category is one of the largest, most established and lucrative segments of mobile gaming worth $10.6 billions. ~1M ~$100k MAU daily revenue Since publishing the game in March 2019, the game has been the highest growth product in
Slide 11: Transaction Rationale
Transaction Rationale ● Financial Diversification Puzzle Market Size Development1 USD, $M Traffic Puzzle is our third back-bone product, and first cornerstone in the casual game category ● Reinforced Growth Traffic Puzzle is Huuuge’s fastest-growing product, with monthly revenue that has more than tripled
Slide 12: Agenda
Agenda Page 01 2020 highlights 5 02 Business update 7 03 Financial update 13 04 Huuuge Fuel 19 12
Slide 13: Financial highlights
Financial highlights 41% of revenue $96m $39m 28% of $76m revenue $18m $21m $10m Q1’20 Q1’21 Q1’20 Q1’21 Q1’20 Q1’21 Revenue UAMC Adjusted EBITDA +26% +$18M -$8M Revenue total Increase in user acquisition Decrease in adj. EBITDA growth in Q1 2021 marketing campaign costs in Q1 2021 13
Slide 14: Financial performance Q1 2021
Financial performance Q1 2021 USD m Q1 2021 Q1 2020 Change 01 Revenue 95.7 76.0 26% 1. Revenue growth driven by core franchises (+16% yoy) as well as new franchises 01 that grew by 3.1x 02 Gross profit/(loss) on sales 67.6 53.1 27% Sales and marketing expenses (43.2) (24.0) 80% 2. Cost of sales consi
Slide 15: Adjusted vs reported
Adjusted vs reported USDm Q1 2021 Q1 2020 Change EBITDA 7.6 18.1 -58% ESOP 2.8 0.3 Adjusted EBITDA 10.4 18.4 -43% Adjusted EBITDA margin (%) 10.9% 24.1% Net result for the period (37.6) 12.8 ESOP 2.8 0.3 Preferred Series C shares 39.0 2.5 revaluation Adjusted Net Result 4.2 15.6 -73% Adjusted Net Re
Slide 16: Balance Sheet
Balance Sheet USDm 31 Mar 2021 31 Dec 2020 Non-current assets 17.1 17.3 1. 01 Increase in current assets thanks to proceeds from IPO Current assets 221.9 124.5 ($100m). Over 80% of current assets is cash 01 Total assets 238.9 141.8 2. 02 The structure of total liabilities changed due to the conversi
Slide 17: Cash Flows Q1 2021
Cash Flows Q1 2021 USDm Q1 2021 Q1 2020 01 1. Changes due to lower EBITDA as well as change in Pre-tax profit (37.0) 14.6 working capital: (1) increase in receivables resulting from 01 Operating CF (8.3) 16.3 the cycle of payments from distributors, as well as ; (2) (0.6) (0.6) the settlement of Wash
Slide 18: Agenda
Agenda Page 01 2020 highlights 5 02 Business update 7 03 Financial update 13 04 Huuuge Fuel 19 18
Slide 19: Fuel: Rocket Fuel for Games
Fuel Rocket Fuel for Games
Slide 20: Our best-in-class technology enables our game studios
ENGAGE & MONETIZE Drive user engagement by giving users more reasons to play, stay, and pay in our games. Our best-in-class technology enables our ANALYZE & ITERATE game studios to easily embed our collective Iterate and analyze player behavior at knowledge and scale to empower data driven optimizat
Slide 21: Fuel
Fuel GAME A on Platform X ENGAGE & MONETIZE CONNECT & COMPLY GAME B on ANALYZE Platform Y & ITERATE GAME C on Platform Z GROW
Slide 22: Fuel to Engage & Monetize
Fuel to ENGAGE & MONETIZE A Real Time Segmentation Engine running thousands of micro segments at any given point in time A Zero-Code Dynamic Personalization Engine allowing real time adaptation of any game feature for every player x A Game Economy Tool kit to simulate, configure, validate and visuali
Slide 23: Fuel to Analyze & Iterate
Fuel to ANALYZE & ITERATE An Off the shelf rich Data Visualization kit allowing data democratization across all functions in the studio A Data Analytics Platform powered by state-of-the-art data layers enabling analysts to deal with any data challenge A Centralized AB testing Framework enabling on t
Slide 24: Fuel to Grow
Fuel to GROW A User Acquisition Platform allowing the optimization of UA campaigns and multiple network algorithms, using adaptive network-specific AI predictive data models. A Creative Hub which rapidly generates thousands of permutations for multiple ad creatives formats (playable, interactive, sta
Slide 25: Fuel to Connect & Comply
Fuel to CONNECT & COMPLY Connections Suite enabling plug and play integration into over 30 third party SDK’s as well as to ALL of Huuuge Fuel. (SDK Maintenance on us :) Off the Shelf Compliance Package Security compliance Privacy compliance Operating System compliance (iOS, GP, Amazon, Windows 10, F
Slide 26: Huuuge Fuel Business Strategy
Huuuge Fuel Business Strategy BUILD (owned and operated ENGAGE studios) & MONETIZE CONNECT & COMPLY PUBLISHING ANALYZE PARTNERSHIPS & ITERATE BUY (M&A) GROW
Slide 27: So what does Huuuge Fuel mean for our present and future?
So what does Huuuge Fuel mean for our present and future? It solidifies our It will allow us to technological scale our business It will drive advantage VS across all three of many of our our core business growth competitors units
Slide 28: 2021 Focus - Build & Buy strategy
2021 Focus - Build & Buy strategy BUY PIPELINE of potential opportunities 87 87 opportunities | Longlisted 31 31 opportunities | Shortlisted Target profile: 3 3 opportunities | Active pursuit + Consistent revenue growth + EBITDA generative + Proven revenue stream(s) + Casual or Social Casino genre fo
Slide 29: Huuuge is a global team of teams
Huuuge is a global team of teams Talent centric Accelerate learning Huuuge culture Focus on hiring AAA+ talent Grow know-how & capabilities Humble & Hungry & Resilient Szczecin Poland Dublin Ireland Bydgoszcz Helsinki Poland Finland London United Kingdom Warsaw Poland Amsterdam Las Vegas Netherlands
Slide 30: For more information please see ir.huuugegames.com
For more information please see https://ir.huuugegames.com
Slide 31: Appendix
Appendix 31
Slide 32: Appendix - KPI’s
Appendix - KPI’s FY 2017 FY 2018 FY 2019 FY 2020 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Total DAU 632 113 850 717 911 048 947 188 874 002 876 371 913 997 979 820 980 224 970 211 944 456 893 861 888 781 Core Franchises 509 356 772 029 769 134 628 119 801 215 758 581 7
Slide 33: Appendix - KPI’s
Appendix - KPI’s FY 2017 FY 2018 FY 2019 FY 2020 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 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% 3,2% 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% 4,3% New f
Slide 34: Investing in scaling
Investing in scaling Core franchises ($m) Revenue UAMC New franchises ($m) Revenue UAMC +26% +16% 3.1x Revenue total Revenue core franchises Revenue new franchises growth in 1Q’21 growth in 1Q’21 growth in 1Q’21 - record high 4th quarter in a row 34
Slide 35: Revenue and user acquisition
Revenue and user acquisition Revenue and user acquisition marketing campaign costs ($m) Revenue UAMC UAMC as % of revenue *preliminary and not audited data 35
Slide 36: Appendix - P&L, BS
Appendix - P&L, BS in thousand USD Q1 2021 Q1 2020 in thousand USD Q1 2021 Structure 2020 Structure Revenue 95,691 76,049 ASSETS Cost of sales (28,071) (22,988) Total non-current assets, including: 17,059 7.1% 17,347 12.2% Gross profit/(loss) on sales 67,620 53,061 Right-of-use asset 6,697 2.8% 8,646
Slide 37: Appendix - Cash Flow Statement
Appendix - Cash Flow Statement in thousand USD Q1 2021 Q1 2020 Cash flows from operating activities Profit/(loss) before tax (36,959) 14,556 Adjustments for: Sum of non-cash changes in depreciation,amortization, profits or losses on disposal 1,295 530 Non-cash employee benefits expense - share-based pay
Slide 38: 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 39: All data available on ir.huuugegames.com
All data available on ir.huuugegames.com 39