East Side Games Group Inc.

Ladies and gentlemen, thank you for standing by and welcome to the Eastside Games Group first quarter 2024 results conference call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question and answer session for analysts only. I would now like to hand the conference over to your speaker today, Jason Bailey, board chair, CEO, and founder of Eastside Games Group. Thank you. Please go ahead.

Thank you, operator, and welcome everyone to Eastside Games Group's Q1 2024 results call. On the call with me today is Mr. Jason Chan, our interim chief financial officer. We are joined by our chief operating officer, Ms. Lisa Sheck, and our chief product officer, Mr. Jim Wagner. I'm happy to share highlights from the first quarter ended March 31st, 2024. And being that we just updated everyone a few weeks ago with our Q4 2023 report, I will keep the call today fairly short and to the point. Mr. Chan will go into detail on our financial results commentary for the period before turning it over to Mrs. Sheck and Mr. Wagner for some final remarks before we open it up to analyst questions. I'd like to remind you that certain statements made on this call are forward-looking within the meaning of applicable securities laws. This call includes references to non-GAAP measures. Please refer to our third quarter press release and the MD&A for cautionary statements relating to forward-looking information and reconciliations of non-GAAP measures to GAAP results. References to all figures are in Canadian dollars on an IFRS basis unless otherwise noted. Additional materials can be found in the investor section of our website at www.eastsidegamesgroup.com under the financial information section, and an audio replay of this call will also be available on our website. I'll now pass it to Mr. Jason Chan, our interim chief financial officer, for some comments.

Thank you, Jason. Q1 saw us continue on the momentum from Q4 2023 and had us end with $20.8 million in revenue, flat from Q4, and adjusted EBITDA of $4.1 million, roughly a 20% margin. Compared to Q1 2023, this represents an 89% increase in adjusted EBITDA as a percentage of revenue. as well as our second straight quarter with over $4 million in just EBITDA and sixth straight quarter of positive EBITDA over $2.5 million. We will be squarely focused on successfully launching our new games this quarter, as well as scaling titles that are performing ahead of their payback windows. Several games in our portfolio, including Milk, The Office, Blood Farm Munchie Match, and D-Fit, are games showing opportunity to profitably scale and grow top-line revenues. Many of the creative bets we've placed will flow through to May and June as we look to maximize assets against game launches, capitalize on IP content releases, and test strategically scaling UA spend around in-app events where we see periodic spikes in revenue. Our average daily active users for Q1 was 228,000 with a 99-cent ARPDAU and a consistent stickiness rate of 28%. Our cash on hand at March 31st ended at $7.25 million. up 40% from last quarter. We will continue to build on these healthy cash inflows while keeping an eye on new strategic opportunities and profitably scaling upcoming titles in line with our goal of sustainable growth. We've also purchased 1,258,019 shares under our renewed normal course issuer bid through March 31, 2024. This was at a cost of $954,000 from our cash balance. but management and the board strongly believe that the company is currently undervalued, and the best investment we can continue to make is in ourselves. Overall, as a company, we have continued on the momentum set forth from last year's restructure, and our focus will be on setting ourselves up for further growth in Q2 onwards. Thank you for your continued support, and with that, I will now pass off to our Chief Product Officer, Mr. Wagner.