Huuuge, Inc. · GPW:HUG

Huuuge — Q2 2023 Earnings Presentation

22 slides from Huuuge's earnings presentation, September 2023

  1. Slide 1: 2Q 2023 Presentation

    2Q 2023 Presentation SEPTEMBER 2023

  2. Slide 2: Disclaimer

    This presentation (“Presentation”) has been prepared by Huuuge, Inc. (the Forward-looking statements include in particular statements regarding the “Company”). By reading the Presentation, you agree to be bound by the financial performance, business strategy, plans and objectives of the Company Discl

  3. Slide 3: Today's Presenters

    Today’s Presenters Anton Gauffin Marek Chwałek Chief Executive Officer EVP Finance

  4. Slide 4: 2Q23 Highlights

    Solid performance: $20.5m + Franchise longevity NET OPERATING CASH HC & BC reached $1.8bn in lifetime revenue FLOW + EBITDA growth $69m in Revenue (-13% YoY), reflecting sunsetting Traffic Puzzle, vs. $6.4m 2Q ‘22 lower marketing spend & challenging conditions in the mobile gaming + Cash growth market

  5. Slide 5: Business Update

    € 2 BUSINESS UPDATE

  6. Slide 6: Core Franchises in 2Q 2023

    Core Franchises in 2Q 2023 Harvesting long-term profits ● Harvesting strategy continued. We are careful with marketing investments, which results in high sales margins and freeing up focus and resources ● Our marketing spend in Q2 2023 was slightly higher QoQ as we have been able to increase spend an

  7. Slide 7: Core Franchises: Live Projects

    Core Franchises: Live Projects Higher UA spend, economy upgrade and new features likely to drive revenue trend reversal in 3Q 2023 New loyalty program - Huuuge Rewards In response to frequent requests, we are broadening the number of players covered and investing in player experience to offer more v

  8. Slide 8: Core Franchises: DTC channel success

    Core Franchises: DTC 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 ● H1 2023 DTC revenue reached ~$6m (4.2% of total revenue) with the ratio improvi

  9. 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

  10. Slide 10: Huuuge Pods

    Huuuge Pods Illustration of the development process Recent progress of one of the pods ● Ideas - 16 ● Concepts - 5 ● Projects - 4 ● Local & Online Tests - 7 ● External Tests - 3 Team members 11

  11. Slide 11: Financial Update

    ” FINANCIAL UPDATE

  12. Slide 12: Highly Cash Generative Business

    Highly Cash Generative Business We are proud to report that for T12M ended June 30th 2023 we have generated adjusted EBITDA of USD 109m and net operating cash flow of USD 82m Cash is king in an uncertain environment and we are a fundamentally strong business in an extremely fortunate position We reco

  13. Slide 13: Financial Performance

    Financial USD m Core Franchises H1 23 134.1 H1 22 144.2 YoY -7.0% Q2 23 66.1 Q2 22 70.3 YoY -5.9% Performance Traffic Puzzle Other 5.7 1.1 16.5 2.7 -65.3% -58.9% 2.6 0.5 7.9 1.3 -66.8% -62.8% Revenue 140.9 163.4 -13.8% 69.2 79.4 -12.9% 01 Gross profit/(loss) on sales 99.5 113.9 -12.7% 48.9 55.4 -11.8%

  14. Slide 14: Balance Sheet

    Balance Sheet USDm June 30, 2023 December 31, 2022 01 Non-current assets 32.9 37.4 01 Includes mainly intangible assets and office 02 Current assets 293.8 248.9 leases Total assets 326.7 286.3 02 Primarily cash and cash equivalents ($259.6m, or 88% of current assets). Balance adjusted for Total equity

  15. Slide 15: Cash Flows

    Cash Flows USDm H1 23 H1 22 Q2 23 Q2 22 Pre-tax profit 52.5 20.7 26.5 10.0 01 Net Operating CF 37.4 26.3 20.5 6.4 01 Net operating CF increased significantly YoY both in H1’23 and Q2’23, but was negatively affected by changes in net working capital (increase in 02 Investing CF 2.6 -26.7 1.2 -1.1 recei

  16. Slide 16: Our EPS improves visibly post SBB

    Our EPS improves visibly post SBB Quarterly EPS (Earnings Per Share, USD) Following the settlement of the SBB and the announced BoD resolution to retire the treasury shares purchased in the buyback, the number of voting shares outstanding declined to 62,810,567, namely: 84,246,697 total issued share

  17. Slide 17: Outlook for 2023 - reiterating our view

    Outlook for 2023 - reiterating our view 2023 Outlook (YoY) Key Highlights SLIGHT ● We reiterate our 2023 directional outlook presented during our Revenue DECLINE FY2022 and 1Q 2023 investor calls ● With headcount now lower by over 20% vs 2022, materially Marketing spend SIGNIFICANT lower costs will

  18. Slide 18: Thank You

    THANK YOU For more information please see https://ir.huuugegames.com

  19. Slide 19: Financial data

    Financial data Profit & Loss account (USD m) 201720182019 20202021 1202200320 420 aiz1__ a1 321d a2 0322 9123 _a223 Revenue 152,1 2861 2594 8327 760 889 785 892 957 975 ~~) ~~~ SSCS COTS i782 Cost of sales 4800 7B 781 995-1122 230-208-235 263, BI UA 28D 8B 255-288 211-203 ‘Goss profit(less) on sales

  20. Slide 20: Appendix - KPI's

    Appendix - KPI's (users) FY 2017 _ FY 2018 _FY2019 _FY 2020 _FY2021_ FY 2022 11920193019 401910702020 3020 4az0_ 102120213021 402110222022 302 aaa 10232023 Total DAU 622113 850717 911048 947 188 729831 610489 874002 -A7HA7I 912997 979820 980224 970211 944.456 A92A61 BARTAT 772729 769744 721 562 701.

  21. 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. EPS Earnings per share Activities aimed at i

  22. Slide 22: For more information please see ir.huuugegames.com

    For more information please see ir.huuugegames.com

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