Huuuge, Inc. announces Q1 2024 financial results

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High profitability sustained despite increased marketing spend Global free-to-play game developer and publisher Huuuge, Inc. today announced its financial results for the first quarter of 2024. The company continued to demonstrate strong financial performance, sustaining high profitability despite increased investments in marketing and user acquisition.

  • Huuuge reported revenue of USD 67 million for the first quarter of 2024, a 6.6% decrease year-on-year (and a 4.2% YoY decrease in the core portfolio), in line with the Company’s prior guidance of slower performance in the first half of the year and a rebound expected in the second half of 2024.

  • Adjusted EBITDA reached USD 21.9 million in the first quarter 2024, a 15.9% decrease from USD 26.1 million in fourth quarter 2023. User acquisition costs nearly doubled year-over-year. However, overall operating expenses remained flat, driven by significant savings in R&D and G&A expenses as well as lower cost of sales (gross margin improved along with the D2C channel expansion).

  • Core franchises' main KPIs have stabilized, with DAU showing consecutive growth since second quarter 2023.

  • Revenue from the direct-to-consumer (DTC) channel grew to 12% of sales in April, up from 8% in Q1 2024. This increase highlights Huuuge's successful expansion and the growth potential in the DTC segment.

  • In April 2024, the Company executed a $70 million share buyback, the second within nine months. Combined with the $150 million share buyback completed in 2023, the total value returned to shareholders reached $220 million.