East Side Games Group Inc.

Hello everyone and welcome to the Eastside Games Group Q4 2024 results call. I'm Jason Bailey, Board Chair and CEO of Eastside Games Group. I would like to share with you today the highlights from the fourth quarter ended December 30th, 2024, as well as some highlights of what we expect to happen in 2025. I'd like to remind you that certain statements made in this video are forward-looking, within the meaning of the applicable securities laws. This call includes references to non-GAAP measures. He referred to our fourth quarter press release and MDMA for cautionary statements related to the forward-looking information. I'm going to pass it over to Jason Chan, our interim CFO for some financial highlights.

Hi, everyone. My name is Jason Chan, CFO of Eastside Games. Let's take a moment to go over some of the highlights from 2024. We finished off the year strong with an adjusted EBITDA of $11.6 million on a total revenue of $83 million, a margin of 14%. We ended off the year as well with a daily active user count of 221,000 players and an average ARPDAU, so average revenue per daily active user, of $1.01. This is an 11% increase over 2023. And I think it further highlights the strength of the core portfolio we have as a business in terms of consistently delivering us positive cash flows and profitability, which allows us to then invest in future growth. Our cash position ended the year stronger as well at $7.5 million. It's a $2.2 million increase or 42% year over year. In addition, we continue to believe that the best investment we can make is ourselves. So to that effect, we are continuing our NCIB program. In 2024, we've bought back $1.9 million worth of shares and we will continue to do so within the restrictions allowed in the exchange. If we normalize this year and last year for the NCIB effect, Our cash position actually increased by $3.6 million, or 67%.

Hello everyone, I'm Jim Wagner, Chief Product Officer, Eastside Games Group. 2024 was a year of both diversification and consolidation for Eastside Games. We diversified our revenue sources by introducing new revenue streams through subscriptions, season passes, and new advertising placements like interstitial ads and offer walls. To put these initiatives into perspective, on Bud Farm Munchie Match, interstitial ads introduced in 2024 now make up 25% of all ad revenue. And on Trailer Park Boys Greasy Money, season pass revenue now makes up 14% of all revenue and subscriptions make up 3% of all revenue with no content requirements and are also subject to a lower platform fee at 15% rather than 30% for all other in-app purchases. We've built more new features than ever before across the studio and have been diligently running A-B tests to definitively prove their value. We've constantly worked to optimize pricing, especially in an increasingly price-sensitive market, resulting in increases to conversion rates and revenue. In parallel, through this meticulous A-B testing and experimentation, we've consolidated the best features and practices across our portfolio, allowing all games to benefit from breakthroughs on a single title, thereby maximizing revenue. We've diversified into a whole new genre, opening up Match 3 as a viable business model to apply our expertise in adapting the biggest IPs and brands in the world into engaging mobile game experiences. And we've consolidated all the learnings from that first generation of Match 3 games and improved on them as we get ready to launch our next generation of Match 3 games with huge, beloved IPs. RuPaul's Drag Race Match Queen and Squishmallow's Match. RuPaul's Drag Race Match Queen entered into limited soft launch and is already showing the best monetization, retention, and engagement metrics of any of our other match games in the same territories.