Huuuge, Inc. · GPW:HUG
Huuuge — FY2021 Earnings Presentation
31 slides from Huuuge's earnings presentation, March 2022
Slide 1: FY21 Presentation
FY21 Presentation March 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 Anton Gauffin Grzegorz Kania Jon Bellamy Chief Executive Officer, Chief Financial Officer EVP Strategy & Investment Founder 3
Slide 4: 2021 Huuuge at a glance
2021 Huuuge at a glance $374m 12% yoy Double digit growth delivered in FY 2021 2021 revenue Revenue and adj. despite difficult market environment EBITDA growth $44 12% ARPPU on core 2021 Sales bookings One M&A closed and four publishing franchise from new titles contracts signed in 2021 17% 600+ Adjus
Slide 5: Business Update
Business Update em ~.
Slide 6: Core franchises in FY21
Core franchises in FY Focus on long-term profitability and longevity $1.88 $328m 42% $311m ● The whole social casino sector starts to $1.36 show signs of maturity and thus we are $252m 25% focusing on profitability and longevity of 24% $0.90 our core portfolio ● Portfolio management and concentration
Slide 7: Core franchises
Core franchises Evergreen life cycles ● Evergreen category that continues to deliver value over multiple years ● Increasing profitability allow to explore new growth initiatives ● Near-term focus on optimizing user acquisition spend for flagship games ● Record high revenue generated in March 21 7
Slide 8: New franchises in FY21
New franchises in FY 21 Revenue diversification strategy delivering results $45.4m 12% Solid increase across the board 6% +120% ● Continued investment in our build $20.7m yoy sales strategy bookings ● Traffic Puzzle is the main growth 3% $6.8m engine in new franchises 75% ● Record high revenue generate
Slide 9: New franchises in Q4 21
New franchises in Q4 21 Increasing importance in total revenue ● New franchises account for 13% of total revenue in Q4 21 ● Smaller stake in other games vs TP results from suspension of UA investment in some titles ● New games at soft launch / testing phase 9
Slide 10: Traffic Puzzle: A Unique Puzzle Game
Traffic Puzzle: A Unique Puzzle Game Consistently strong performance, and more to come DAU ● Traffic Puzzle continues to be our most #of players promising product 200,000 ● In Q4, the game hosted more than 200,000 unique users, up more than 120% versus Q4 2020 150,000 ● The primary constraint of Traffic P
Slide 11: Financial Update
Financial Update
Slide 12: Financial highlights - FY 2021
Financial highlights - FY 2021 17.2% adj. 35% of EBITDA margin 34% of revenue 17.2% adj. $64.4m $374m revenue EBITDA margin $130m $333m $111m $57.3m 2020 2021 2020 2021 2020 2021 Revenue UA Adjusted EBITDA +12% +17% +12% Revenue total User acquisition marketing Increase in adj. EBITDA growth in 2021
Slide 13: Financial highlights - Q4 21
Financial highlights - Q4 21 45% of 23% adj. $89m revenue EBITDA margin $89m $40m $20.7m 30% of revenue $26m 3% adj. EBITDA margin $3.1m Q4 20 Q4 21 Q4 20 Q4 21 Q4 20 Q4 21 Revenue UA Adjusted EBITDA -0.8% -34% 6.8x Revenue yoy User acquisition marketing Increase in adj. EBITDA yoy campaign costs yo
Slide 14: Financial performance
Financial performance USD m Q4 21 Q4 20 yoy 2021 2020 yoy 1. FY revenue growth driven mainly by Traffic Puzzle but also core franchises 01 Revenue 88.5 89.2 -0.8% 373.7 332.7 12.3% 01 growth. In Q4 21 yoy the revenue was flat, which came from lower core franchises, lower revenue from other games due to
Slide 15: Adjusted vs reported
Adjusted vs reported USDm Q4 21 Q4 20 Change 2021 2020 Change EBITDA 18.1 1.5 11.8x 52.6 53.5 -2% ESOP 2.6 1.5 1.7x 11.8 3.8 213% Adjusted EBITDA 20.7 3.1 6.8x 64.4 57.3 12% Adjusted EBITDA margin (%) 23.4% 3.4% 17.2% 17.2% Net result for the period 11.4 (107.4) (9.7) (82.6) ESOP 2.6 1.5 11.8 3.8 Se
Slide 16: Balance Sheet
Balance Sheet USDm 2021 2020 01 Non-current assets 67.5 17.3 1. 01 Non-current assets increase due to acquisition of Traffic Puzzle game ($39m) and Right to use assets (increase by 02 Current assets 232.4 124.5 USD 8.8m from new offices in Warsaw and Tel Aviv) Total assets 299.9 141.8 2. Current assets
Slide 17: Cash Flows Q4 2021
Cash Flows Q4 2021 USDm Q4 21 Q4 20 2021 2020 1. 01 Net OCF for the FY 2021 was negatively affected by change in working Pre-tax profit 14.5 (108.2) (1.0) (76.2) capital and higher taxes vs last year (while in FY20 working capital 01 Net Operating CF 10.8 14.4 29.8 73.2 changes had positive impact on
Slide 18: Strong track record of revenue growth and improving diversification
Huuuge’s strong track record of revenue growth and improving diversification of our portfolio Revenue m$ New franchises as % of revenue Improvement in adj. EBITDA $ $64m $57m 12% $374m $333m 17% 17% $259m 10% $236m 6% $25m 4% $152m 3% $10m 1% 0% -$4m 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021
Slide 19: SBB commencement
SBB commencement Up to 2,500,000 Single trading day will not exceed 25% of the average daily volume of trade for the last 20 days Max price PLN 40 per share Max amount of PLN 100,000,000 for the SBB of shares to be repurchased to satisfy ESOP needs The SBB will end no later than March 31, 2023 19
Slide 20: 2022 Highlights
2022 Highlights
Slide 21: New Franchise Publishing: Continued Momentum
New Franchise Publishing: Continued Momentum ● Successfully executing on Publishing 2.0 - a key funnel for inorganic growth opportunities ● Integration of Diffy and College Love Game complete. Now scaling both games via product and marketing improvements ● Active pipeline of 16 new opportunities bei
Slide 22: New Franchise Development: Active Pursuit
New Franchise Development: Active Pursuit + More casual games 22
Slide 23: 2022 Plans: Investing in the Future
2022 Plans: Investing in the Future Core Franchises ● Focus on HC/BC longevity via investments in technology, systems, and game economy. Build the foundations for the future of success ● Traffic Puzzle primed for double digit growth. Investment in a second product for the franchise, and the future of
Slide 24: One More Thing
n One More Thing.
Slide 25: Exploring Web3: First Steps
Exploring Web3: First Steps Blockchain technology represents an opportunity to build extraordinary games with novel mechanics, unlock new business models, and evolve beyond the status quo. Huuuge is actively building games for Web3 Phase 1: Explore options for strategic partnership with blockchain g
Slide 26: Thank you
Thank you For more information please see https://ir.huuugegames.com
Slide 27: Appendix
n Appendix
Slide 28: Financial data
Financial data P&L (USDm) 2017 2018 2019 2020 2021 1920 2020 3020 4020 4020 1021 2021 Revenue 152.1 236.1 259.4 3327 373.7 76.0 88.9 78.5 89.2 89.2 957 975 Cost of sales 448 18 “79.1 -99.6 109.6 -23.0 -268 -23.5 -263 -263 -28.1 287 Gross profit/(loss) on sales 107.3 164.3 ©1802 233.1 264.1 531 62155
Slide 29: Appendix - KPI’s
Appendix - KPI’s FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Total DAU 632,113 850,717 911,048 947,188 789,831 874,002 876,371 913,997 979,820 980,224 970,211 944,456 893,861 888,781 773,229 769,744 727,568 C
Slide 30: 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 31: For more information please see https://ir.huuugegames.com
For more information please see https://ir.huuugegames.com