East Side Games Group Inc.

Welcome everybody to the Eastside Games Group Q1 2025 results video. I'm Jason Bailey, Board Chair and CEO of Eastside Games Group. Today we will be sharing highlights from the first quarter and March 31st, 2025. I'd like to remind you that certain statements made in this video are forward-looking within the means of applicable securities laws. This call includes references to non-GAAP measures and please refer to our fourth quarter press release and 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. This video will also be available on our website and through social media. I want to take a moment to officially welcome the new board members. We're honoured to have such exceptional leaders join us. Their expertise, experience and perspective will be invaluable as we continue to evolve Eastside Games Group into a world-leading games company.

My name is Darren Hsu, and I'm excited to be joining the board of Eastside Games. Currently, I'm the managing member of Questline Capital, an investment firm based here in San Francisco. And prior to that, I was a managing director at Farallon Capital, also here in San Francisco. And I started my career in investment banking at Citigroup in New York. I wanted to join the board as an active and engaged shareholder and really help the company make great games. I hope to bring expertise as it relates to capital markets, investor relations, and really bringing in any perspectives from adjacent industries. One fact about myself is that even though I'm based here in the US, I'm originally from Calgary, Canada. So in closing, I'm excited for the company's journey ahead, creating memorable gaming experiences that players engage with every day.

My name is Rob McClay, and I'm thrilled to join the board of directors of Eastside Games Group. Recently, in April, I launched an investment fund called the Azalea Fund LP. Azalea is a private investment fund with ownership in a concentrated portfolio of smaller capitalization, public equities in North America with a focus on Canada. Azalea employs a disciplined private equity style mindset and fundamental research process to unearth, compelling, undervalued, and overlooked opportunities with value surfacing catalysts. Prior to Azalea, for the last 10 years, I've been an investment professional and capital markets professional in roles at a family office, at a hedge fund, in private equity, and as an investment banking analyst focused on equity and M&A transactions. I'm extremely excited to work with Jason and his exceptional team who have built Eastside Games Group into one of Canada's leading mobile gaming companies in a very disciplined and capital efficient manner.

Hi everyone, I'm Jason Shad, CFO of Eastside Games, and here's our update for Q1 2025. We ended off the quarter with an adjusted EBITDA of $2 million on a top line revenue of $18.5 billion. It was a softer quarter with some seasonal declines in revenue and spend, but we continue to maintain our profitability and margins within this changing environment. The core portfolio of games within the company remains strong, with an overall margin of over 16%. ensuring that we are a cash flow positive business where our proceeds can go towards funding our future development projects and launches. Our average daily active user count for the quarter was 209,000 players with an average revenue per daily active user of $0.99. Segmented by genre, it comes to $1.15 and $0.51, respectively, between the idle and match games in our portfolio. We also had a very strong marking performance to our breakeven targets on ad spend in the quarter, and are projected to line within 2% of our targeted returns from acquired player cohorts in Q1. We look forward to realizing these returns in Q2. This demonstrates our incredibly refined ability to predict our return on ad spend early and consistently as a company, well ahead of actual results. We will also continue buying back our shares with the NCIV program. And as at the end of Q1 2025, we have 3.9 million shares in treasury and will continue to purchase as much as the restrictions allowed by the exchange. As we mentioned in our prior quarters, the focus this year is in deploying the cash in our war chests methodically and strategically to ensure smooth and successful launches of the new crop of games coming in the next few quarters. We thank you for your continued support and we look forward to a strong 2025 of you all.

Hi, I am Elin Johnson and I am the Chief Business Officer at Eastside Games. I am eager to provide an update on one of our most exciting launches of the year, RuPaul's Drag Race Match Queen, our brand new Match 3 mobile game. We have brought in product marketing expertise from Kristi Willingham, a leader in marketing strategy with deep experience bridging technology, content and partnership across industries like gaming, film, music and streaming ecosystems. Under her guidance, we have built our marketing campaign around three strategic phases, designed to build momentum before, during and after launch. Soft launch. The game is already live in select markets, including UK and Canada, where we are activating localised marketing campaigns featuring iconic UK match queens like Cheryl Hall, Ahura and Blue. These campaigns include both digital initiatives and in-person events, pre-order and pre-registration. We are happy to share that Match Queen is now available for pre-order on iOS and pre-registration on Google Play as of April 24th. To support sign-ups, we have launched a community-driven challenge with milestone-based rewards, encouraging fans to sign up, share, and unlock even better rewards together. We are also boosting organic momentum through influencer marketing, event sponsorship, and integrated content campaigns. We're also looking to intentionally engage and book some of the most popular queens to market the game. Worldwide launch. We are incredibly excited to launch globally this Pride Month in June. We will utilize the communal momentum of Pride to scale integrated activities through the summer and beyond. Taking everything we have learned from earlier phases to scale up our efforts across app stores, social platforms and live activations. What truly sets this campaign apart is how it blends performance marketing with authentic storytelling and deep community engagement. From Queen-led video content to meaningful charity challenges, Match Queen is more than a game. It's a celebration of creativity, inclusivity and joy.

Hello, I'm Jim Wagner, Chief Product Officer. Continuing the excitement from Elan, RuPaul's Drag Race Match Queen has been in soft launch for almost six months now and has firmly established its place as our strongest performing match game to date. Players play longer and spend more in this game than any of our previous match titles. And over the course of Q1, we were able to grow both active players and top-line revenue by more than 500%. This quarter, we will continue optimizing based on our soft launch data heading towards our worldwide release with confidence that the core mechanics are working so we can focus on stability and polish to deliver something that stands out from our competitors at launch. On the idle side of the business, Q1 was a quarter where we built some game-changing features across the portfolio. For much of 2024 and into 2025, we've been working on a team-based competitive future where players can join together in-game to compete against other teams of players for unique rewards and the glory of being the top ranked team in the game. And we're happy to announce that we've completed development in Q1 and launched it in not just one, but two games. Trailer Park Boy's Greasy Money and RuPaul's Drag Race Superstar in early Q2. We expect this feature to boost both player engagement and monetization significantly for these two titles. We've also brought our successful Season Pass feature to the office sometimes we manage. On our other games, this feature increased ARPDAU and accounts for 10% of all revenue for these titles. Data from our first season shows the same positive trend on the office, with season pass being the highest revenue item for the month of April. and our second highest conversion point for first-time buyers. This again shows that Season Pass is not only a revenue driver, but also an effective tool to convert players that have numbers spent in our games. Milk Farm Idle Tycoon saw a solid Q1. With seasonal events and new event piggy banks, event ARPDAU went up 11% quarter over quarter, and overall ARPDAU is up 10% compared to Q4. Going into Q2, we'll be taking these learnings and implementing them on our other games in our portfolio, starting with Blood Farm Idle Tycoon. strong performance from our existing portfolio of games, and early indicators of massive potential with our new launches.

Thank you everyone for joining us today. I'm especially thankful to Rob and Darren for joining our board of directors. These two external independent directors bring a wealth of game experience in Darren and Canadian public markets in Rob. Both have deep finance backgrounds and a wealth of experience in many fields. Both of these new directors have been involved with Eastside Games Group for some time and know our business intimately. This added corporate governance makes us stronger with a deeper pool of advisors, talent, and network. We are very excited in knowing what they can bring to our investor relations strategies, as well as added network amongst Hollywood IP partners and Game Studio partnerships. Thanks again for joining us, and we'll see you soon for our Q2 reports.