Q3 2024 Financial Report

Huuuge, Inc. experienced a period of financial contraction and strategic realignment during the first nine months of 2024. Total revenue fell to $189.1 million, a 10.9% year-over-year decline driven primarily by a shrinking social casino market and a deliberate 21.5% reduction in user acquisition spending. This downturn was reflected in key performance indicators, as Daily Active Users and Daily Paying Users decreased by 13.8% and 19.0% respectively. Consequently, net profit for the period dropped to $46.9 million from $62.8 million in the previous year, while Adjusted EBITDA fell 22.6% to $62.3 million.

Despite the decline in top-line growth, the company successfully optimized its distribution channels and capital structure. Revenue from direct-to-consumer platforms nearly doubled to $20.4 million, now accounting for 10.8% of total revenue. This shift helped mitigate platform-related costs and supported a robust Adjusted EBITDA margin of 35.5%. Furthermore, the company executed a significant $70 million share buyback program, retiring approximately 7.14 million shares. Even after this substantial capital outlay, liquidity remains strong with $125 million in cash and cash equivalents as of September 30, 2024.

The company’s portfolio remains heavily concentrated, with core franchises Huuuge Casino and Billionaire Casino generating 98% of total revenue. To diversify its offerings, strategic investments were made in Bananaz Studios and Empire Games via Simple Agreements for Future Equity. While facing legal contingencies—including a $1.7 million settlement provision and ongoing "unlawful gambling" litigation in the United States—management maintains that these issues, along with geopolitical risks in Israel, have not materially impacted operations. The overall outlook emphasizes a transition toward high-margin direct-to-consumer sales and disciplined cost management amid a challenging broader market for social casino gaming.