Huuuge Q1 2024 Presentation

Key insights

5 slides

Revenue & Profit

Huuuge experienced a 6.6% year-over-year revenue decline in Q1 2024.

Despite the revenue contraction, the company maintained profitability with a net result of $16.5 million and an adjusted EBITDA of $21.9 million.

Page 11 of the report — See it on page 11

Strategic Investments

User acquisition spending increased by 86% in Q1 2024.

This aggressive scaling of user acquisition was offset by disciplined savings in R&D and administrative costs, keeping total operating expenses flat.

It's like spending more on advertising but cutting back on office supplies to keep the overall budget the same.

Investment Strategy. Huuuge increased user acquisition spending by 86% in Q1 2024, while maintaining flat total operating expenses through cost savings.

Page 16 of the report — See it on page 16

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Summary

Huuuge’s financial performance for the first quarter of 2024 reflects a strategic pivot toward long-term stability and shareholder value, even as the company navigates a period of revenue contraction. With a year-over-year revenue decline of 6.6 percent, the organization has prioritized the stabilization of its core franchises while aggressively scaling user acquisition efforts, which saw an 86 percent increase in spending. This investment strategy, coupled with a net result of $16.5 million and an adjusted EBITDA of $21.9 million, underscores a commitment to maintaining high profitability margins despite the inherent volatility of the mobile gaming market.

Operational efficiency remains a cornerstone of the company’s current trajectory. By offsetting increased marketing expenditures through disciplined savings in research, development, and general administrative costs, the firm has successfully kept operating expenses flat. A notable development in this period is the expansion of the Direct-To-Consumer channel, which grew to represent 12 percent of total sales by April. This shift serves as a critical component of the company’s broader effort to improve revenue efficiency and reduce reliance on third-party platforms, even as total daily active users and daily paying users experienced a downward trend to 409,268 and 15,730, respectively.

Looking ahead, the company maintains a robust financial foundation, supported by $163 million in cash and $193.8 million in total equity. This liquidity provides the flexibility to pursue inorganic growth opportunities and return capital to shareholders, as evidenced by the $70 million share buyback initiated in April. While annual revenue is projected to remain flat, management anticipates a recovery in the second half of 2024. The overarching strategy remains focused on balancing cost discipline with targeted investments to sustain core franchise performance in an increasingly competitive global landscape.