Q2 2024 East Side Games Group Inc Earnings Call Transcript
Key Points
- East Side Games Group Inc (EAGRF) maintained a stable revenue of $20.5 million in Q2 2024, with an adjusted EBITDA of $2.5 million, marking the seventh consecutive quarter of such performance.
- The company increased its user acquisition spend by $900,000, focusing on match-3 titles, which contributed to a 14% increase in ARPDAU for match users.
- Significant growth was observed in specific titles, such as Milk Farm Tycoon, which saw a 300% increase in top-line revenue, and Doctor Who: Lost in Time, which grew by 200%.
- The launch of Power Rangers Mighty Force was successful, with early metrics indicating it could become the tenth title to generate $1 million per quarter.
- The company is strategically planning new game launches, including a promising collaboration with World of Wonder for a new RuPaul's Drag Race mobile game, expected to leverage the success of the previous title.
- Revenue remained flat from Q1 to Q2 2024, indicating a lack of growth in overall revenue despite increased spending on user acquisition.
- The company's cash on hand increased only modestly by 4.8% from the previous quarter, despite significant investments in user acquisition and share repurchases.
- There is uncertainty regarding the launch timeline for the new RuPaul's Drag Race match-3 game, which could impact future revenue projections.
- The broader app economy and game spending environment remain uncertain, with potential regulatory changes affecting platforms like Apple and Google.
- Despite the success of new titles, there is a risk of cannibalization within the company's portfolio, particularly with multiple games under the same IP.
Ladies and gentlemen, thank you for standing by, and welcome to the East Side Games Group second quarter 2024 results conference call. (Operator Instructions) I would now like to hand over the conference over to your speaker today, Jason Bailey, Board Chair, CEO and Founder of East Side Games Group. Thank you. Please go ahead.
Thank you, operator and welcome, everybody, to the East Side Games Group Q2 2024 results call. On the call with me today is Mr. Jason Chan, our Interim Chief Financial Officer. We are also joined by our Chief Operating Officer, Ms. Lisa Shek; and our Chief Product Officer, Mr. Jim Wagner.
I am happy to share highlights from the second quarter ended June 30, 2024. Mr. Chan will go into details on our financial results commentary for the period before turning it over to Mr. Wagner and Mr. Shek for some final remarks before we open it up to analyst questions.
First, I'd like to remind you that certain statements made on this call are forward-looking within the meaning of
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
