Financial · August 1, 2023

Huuuge 2Q 2023 Presentation

Published by Huuuge

Summary

Huuuge, Inc. presents a financial and operational performance review for the second quarter of 2023, highlighting a strategic shift toward profitability and long-term sustainability. The primary thesis centers on the company’s transition from aggressive user acquisition to a "harvesting strategy" for its core franchises, Huuuge Casino and Billionaire Casino. This approach has resulted in significant EBITDA growth and robust cash generation despite a year-over-year decline in total revenue. Key financial data points for Q2 2023 show revenue at $69.2 million, a 12.9% decrease from Q2 2022, largely attributed to the sunsetting of the Traffic Puzzle title and reduced marketing spend. However, adjusted EBITDA doubled to $27.5 million, with margins expanding from 17.2% to 39.8%. The company maintains a strong balance sheet with $259.6 million in cash and equivalents, though this figure is adjusted to $109.1 million following a $150 million share buyback program concluded in July 2023. Geographically and industrially, the scope covers the global mobile gaming market, specifically the social casino segment. Methodology involves the analysis of key performance indicators (KPIs) such as ARPDAU, which rose to $1.77, and monthly conversion rates, which reached 8.0%. These metrics indicate that while the total player base (DAU) has contracted to approximately 426,000, the remaining audience is more highly monetized. Looking forward, the company anticipates a revenue trend reversal in the second half of 2023 driven by a major game economy upgrade, a new loyalty program, and increased direct-to-consumer (DTC) revenue via its webshop, which accounted for 4.2% of H1 2023 revenue. Additionally, the company is diversifying through its "Huuuge Pods" initiative, currently testing multiple new multiplayer projects to secure future growth.

From the report

# 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. The Presentation is protected by copyright law, in particular the Act of February 4, 1994 on Copyright and Related Rights. Copying, duplication and use of part or all of the photos and graphics contained in the Presentation without the author's permission is prohibited. The Presentation does not constitute an offer to sell or subscribe for or a solicitation of an offer to purchase or subscribe for securities. This Presentation is provided for informational purposes only. This Presentation does not constitute or form part of and should not be construed as an offer, solicitation or invitation to sell or issue, or an offer, solicitation or invitation to, subscribe for, underwrite, buy or otherwise acquire, securities of the Company or any of its subsidiaries in any jurisdiction, or an inducement/recommendation to enter into investment activity in any jurisdiction. Neither this Presentation nor any part hereof, nor the fact of its distribution or issuance, shall form the basis of, or be relied on in connection with, any contract, commitment or investment decision whatsoever.

an inducement/recommendation to enter into investment activity in any jurisdiction. Neither this Presentation nor any part hereof, nor the fact of its distribution or issuance, shall form the basis of, or be relied on in connection with, any contract, commitment or investment decision whatsoever. The information contained herein is only preliminary and indicative and does not purport to contain the information that would be required to evaluate the Company, its financial position and/or any investment decision. This Presentation is not intended to provide, and should not be relied upon for, accounting, legal or tax advice nor does it constitute an investment recommendation. This Presentation is given in conjunction with an oral Presentation and should not be taken out of context. No information included in this Presentation may be considered as investment advice or investment recommendation. The information contained in the Presentation has not been independently verified. No representation, warranty or undertaking, expressed or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained herein. Matters discussed in this Presentation may constitute forward-looking statements. Forward-looking statements constitute statements that are other than statements of historical fact. Statements which include the words “expects,” “intends,” “plans,” “believes,” “projects,” “anticipates,” “will,” “targets,” “aims,” “may,” “would,” “could,” “continue” and similar statements of a future or forward-looking nature identify such forward-looking statements.

tements of historical fact. Statements which include the words “expects,” “intends,” “plans,” “believes,” “projects,” “anticipates,” “will,” “targets,” “aims,” “may,” “would,” “could,” “continue” and similar statements of a future or forward-looking nature identify such forward-looking statements. Forward-looking statements include in particular statements regarding the financial performance, business strategy, plans and objectives of the Company for future operations (including growth potential). All forward-looking statements included in this Presentation address matters that involve known and unknown risks, uncertainties and other factors which could cause the Company’s actual results, performance or achievements to differ materially from those indicated in such forward-looking statements and from past results, performance or achievements of the Company. Such forward-looking statements are based upon various assumptions and estimates regarding future events, including numerous assumptions regarding the Company’s present and future business strategies and future operating environment. Although the Company believes that these estimates and assumptions are reasonable, they may prove to be incorrect.

ious assumptions and estimates regarding future events, including numerous assumptions regarding the Company’s present and future business strategies and future operating environment. Although the Company believes that these estimates and assumptions are reasonable, they may prove to be incorrect. The information, opinions and forward-looking statements contained in this Presentation speak only as at the date of this Presentation and are subject to change without notice. The Company, its directors, agents, employees and advisors do not intend to, and expressly disclaim any duty, undertaking or obligation to, make or disseminate any supplement, amendment, update or revision to any of the information, opinions or forward-looking statements contained in this Presentation to reflect any change in events, conditions or circumstances. To the extent permitted under the applicable provisions of law, neither the Company nor any of their affiliates, advisers or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss however arising from any use of this Presentation or its contents or otherwise arising in connection with this Presentation.

provisions of law, neither the Company nor any of their affiliates, advisers or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss however arising from any use of this Presentation or its contents or otherwise arising in connection with this Presentation. This Presentation is not for distribution or use by any person or entity in any jurisdiction where such distribution or use would be contrary to local law or regulation or which would subject the Company or any of its affiliates to authorization, notification, licensing or other registration requirements under applicable laws. Any failure to comply with this restriction may constitute a violation of United States securities laws. Persons into whose possession this Presentation comes should observe all such restrictions.

# Solid performance: - + Franchise longevity - + EBITDA growth - + Cash growth - + Future growth # 2Q23 Highlights # HC & BC reached $1.8bn in lifetime revenue \ 690 in Revenue ( - 1 3 % \mathsf { Y o Y } )$ , reflecting sunsetting Traffic Puzzle, lower marketing spend & challenging conditions in the mobile gaming market # Robust cash position of $259.6m as of 30th June 2023 ($109.1m adjusted for cash reserved for the purpose of the SBB) # T12M adj. EBITDA reached 109m, Net OCF 82m We continue to deliver on profitability and cash flows # ~$150m Share Buyback Program concluded Transaction settled on 4th July, purchased shares were retired following the BoD resolution dated 29th August # HC & BC gearing for a reversal in revenue trends Recently rolled out game economy upgrade, combined with the new loyalty program and increasing UA spend might drive topline trend reversal in Q3 2023 # $20.5 m # NET OPERATING CASHFLOW vs. $6.4m 2Q ‘22 # $69 m REVENUE vs. $79m 2Q ’22 # $27.5 m Adj. EBITDA vs. $13.7m 2Q ’22 # 39.8% # Adj. EBITDA MARGIN vs. 17.2% 2Q ‘22

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Type: Financial

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