Release Date: March 24, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- East Side Games Group Inc (EAGRF, Financial) reported a strong financial performance with an adjusted EBITDA of $11.6 million on a total revenue of $83 million, reflecting a 14% margin.
- The company achieved an 11% increase in average revenue per daily active user, reaching $1.01, highlighting the strength of its core portfolio.
- East Side Games Group Inc (EAGRF) successfully diversified its revenue streams by introducing subscriptions, season passes, and new advertising placements, significantly boosting ad revenue.
- The company has launched new games with strong IPs, such as RuPaul's Drag Race Match Queen, which is already showing excellent monetization, retention, and engagement metrics.
- East Side Games Group Inc (EAGRF) has strengthened its leadership team with industry veterans, improving productivity and retention across the company.
Negative Points
- Despite the positive financial performance, the company's reliance on a few key titles could pose a risk if these games do not perform as expected.
- The company's strategy of focusing on quality over quantity may limit the number of new releases, potentially impacting short-term revenue growth.
- The introduction of new revenue streams such as subscriptions and season passes may face challenges in user adoption and retention.
- The company's expansion into new genres, like Match 3 games, involves risks associated with entering a competitive market with established players.
- While the company has improved its cash position, the continuation of the NCIB program may limit available funds for other strategic investments.
Q & A Highlights
Q: Can you provide an overview of East Side Games Group's financial performance in Q4 2024?
A: Jason Chan, Interim CFO, reported that East Side Games Group ended 2024 with an adjusted EBITDA of $11.6 million on total revenue of $83 million, reflecting a 14% margin. The company saw an 11% increase in average revenue per daily active user, reaching $1.01, and ended the year with a cash position of $7.5 million, a 42% year-over-year increase.
Q: What strategic initiatives did East Side Games Group undertake in 2024?
A: Jim Wagner, Chief Product Officer, highlighted the diversification of revenue streams through subscriptions, season passes, and new advertising placements. The company also focused on optimizing pricing and consolidating successful features across its portfolio, leading to increased conversion rates and revenue.
Q: How did East Side Games Group approach game development and launches in 2024?
A: Lisa Shack, CEO, emphasized a strategic shift towards quality over quantity, focusing on titles with the highest potential. The company is excited about upcoming launches, including RuPaul's Match Queen and Squishmallow's Match, which are expected to be major hits in 2025.
Q: What are the key features of the upcoming game RuPaul's Drag Race Match Queen?
A: Danielle Bailey, Director of Product, explained that the game will launch with over 1,000 levels and thousands of fashion items. It will feature new seasons weekly and introduce season collections, allowing players to compete in themed contests.
Q: How is East Side Games Group leveraging partnerships for game development?
A: Dave Walz, President of Funkytron, praised East Side Games Group as a publishing partner for RuPaul's Match Queen, highlighting their expertise in monetization and player engagement, which has helped achieve impressive metrics.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
