Huuuge Games hit $319 million in revenue in 2022, according to the company’s latest financial report.This represents a 14.7% decline from 2021, while core franchises fell 12.2%, reflecting a lower marketing spend and the post-IDFA landscape. The company also reported a 33.1% year-on-year decline in new franchises, mostly driven by the decline in Traffic Puzzle’s revenue.
Despite the decline in revenue, Huuuge saw a 57.3% year-on-year increase in net profit, reaching a record of $64.6 million. The company also reached a record of $82.8 million in adjusted EBITDA, representing an increase of 27.9% from the previous year.
Looking forward, the company will renew its efforts on building games with the creation of development pods, as well as exploring opportunities to expand to other platforms in an effort to maximise revenue streams.
"Our focus on improving profitability and strong cash generation has resulted in record high adjusted EBITDA for Huuuge,” said founder and CEO Anton Gauffin. “We responded proactively to the challenges faced by the industry by focusing on costs and efficiency.
“We are confident that our continued focus on creativity, innovation, improving efficiency, and developing fun games will drive our success in the years to come."
In a sign of the company’s confidence, Huuuge has announced plans to conduct a share buyback program, which will return as much as $150 million to company shareholders.
A Huuuge year
Huuuge reports $77.7 million in revenue in Q4 2022, representing a 12.2% decline from 88.5 million in Q4 2021, with adjusted EBITDA rising 43.4% year-on-year, from $20.7 million to $29.7 million.
The company reported a 29.8% year-on-year decline in daily average users in Q4, with 510.7 thousand compared to 727.6 thousand in Q4 2021. Daily paying users also declined 18.1%, from 24.4 thousand to 19.9 thousand.
Despite the decline in users, Huuuge reported increases in average revenue per daily active users, which rose 25.4% from $1.30 to $1.70.
The company also reported a slight increase in monthly conversion from players to payers, with 10.9% compared to 9.1% in Q4 2021.
“We reduced marketing expenses by 39% YoY, R&D expenses by 11% YoY, and total operating expenses by 23% YoY. These efforts exemplify our harvesting strategy in action, and have resulted in significantly improved cash generation," said executive vice president of finance Marek Chwalek.
Earlier this year, Huuuge secured new publishing deals with Square Triangle and Frieddegames.