Huuuge, Inc. · GPW:HUG
Huuuge — Q2 2022 Earnings Presentation
23 slides from Huuuge's earnings presentation, September 2022
Slide 1: Q2 2022 Presentation
Q2 2022 Presentation September 2022
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 Rod Cousens Jon Bellamy Marek Chwalek Co - Chief Executive Officer Chief Commercial Officer EVP Finance 3
Slide 4: Q2 '22 at a Glance
Q2 ‘22 at a Glance $79m Revenue Mobile market declined 6.0% YoY creating a challenging vs. $98m Q2 ‘21 macroeconomic backdrop $13.7m Adj. EBITDA Improvement in Adjusted EBITDA margin YoY from 16.0% vs. $15.6m Q2 ‘21 to 17.2%; fruits of our strategy materializing 17.2% Adj. EBITDA margin vs. 16.0% Q2
Slide 5: H1 '22 at a Glance
H1 ‘22 at a Glance $26.3m Strong Operating Cash Flow generation despite challenging Net Operating Cash Flow macroeconomic conditions vs. $0.2m H1 ‘21 $163m Robust cash position of $188m as of 30th June 2022, post Revenue Share Buy Back and Traffic Puzzle payments vs. $193m H1 ‘21 $28.1m Adj. EBITDA vs
Slide 6: Business Update
BUSINESS UPDATE
Slide 7: Core Franchises: Today
Core Franchises: Today Harvesting long-term profits ● Best in class monetization metrics (conversion, ARPDAU and ARPPU) vs peers driven by our Clubs and social features ● Highly profitable with predictable long-term revenue ● Extraordinary retention of our most valuable players ● Record high revenue g
Slide 8: Core Franchises: Live Projects
Core Franchises: Live Projects More upside from everlasting player relationships Extension of Huuuge’s VIP Program, creating uplift in engagement, retention and monetization of our most valuable players Expansion of our webshop for HC & BC beyond the US to new geographies (EU, Canada, Australia), su
Slide 9: Traffic Puzzle
Traffic Puzzle Evolving and expanding the franchise Traffic Puzzle continues to bring revenue diversification, with 12% of H1 ‘22 revenue coming from New Franchises Reduction of UA spend as we make architectural changes and then, further additions to the game - retention & monetization features, social l
Slide 10: Financial Update
FINANCIAL UPDATE
Slide 11: Financial Performance
Financial Performance USD m H1 22 H1 21 YoY Q2 22 Q2 21 YoY 01 Revenue 163.4 193.2 -15.4% 79.4 97.5 -18.6% 011. Revenue changes reflect easing of some previously Gross profit/(loss) on sales 113.9 135.8 -16.1% 55.4 68.2 -18.7% present Covid-19 tailwinds for lower value users 02 Sales and marketing exp
Slide 12: Balance Sheet
Balance Sheet June 30 December 31 USDm 2022 2021 1. Includes mainly Traffic Puzzle carrying value of 01 Non-current assets 63.2 67.5 01 $34m and office leases 02 Current assets 213.2 232.4 2. Primarily cash and cash equivalents (88% of current 02 Total assets 276.4 299.9 assets) 3. Decrease in current l
Slide 13: Cash Flows
Cash Flows USDm H1 22 H1 21 Q2 22 Q2 21 1. Strong OCF generation in H1 2022, Q2 affected Pre-tax profit 20.7 -25.3 10.0 11.7 01 partially by FX and working capital changes 01 Net Operating CF 26.3 0.2 6.4 8.5 2. Investing CF included $25m payment tranche for 02 Investing CF -26.7 -12.0 -1.1 -11.4 Tra
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 84% 14
Slide 15: H1 '22 Highlights
H1 ‘22 HIGHLIGHTS
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
Slide 17: Thank you
Thank you For more information please see https://ir.huuugegames.com
Slide 18: Appendix
APPENDIX
Slide 19: Financial data
| Financial data P&L. (USD) 20172018 2019-2020 2027 Q120Q220 320420 Qi2t 221 gat gat i ee Revenue: 75212361504 —«B327——«BTBT hn Tn) a a TT eT Cost of sales 448 718 «791-996-1096 230-268 «= 23S 2528128427085 85S 28.0 Gross profit/(loss) on sales 1073 1643 180.2 298.1 264.1 531 «621 55.0 62.9 67.6 OBZ
Slide 20: Appendix - KPI's
a Appendix - KPI's (users) qi19 a219 9319 419 qi 20 @220 320 9420 qi2i q221 9321 421 qi2z 9222 Total DAU 874,002 876,371 913,997 979,820 980,224 970,211 944,456 893,867 888,781 773,229 769,744 727,568 701,620 671,967 Core Franchises 801,215 758,581 769,710 747,029 721,866 645,541 577,293 567,775 545
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
Slide 22: For more information please see https://ir.huuugegames.com
For more information please see https://ir.huuugegames.com
Slide 23: 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 84% 23