East Side Games Group (EAGR) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached CAD 21.4 million (up 4% quarter-over-quarter and 3% year-over-year), marking the first growth quarter of the year.

• Adjusted EBITDA was CAD 2.56 million (12% margin), the eighth consecutive quarter above CAD 2.5 million.

• Power Rangers: Mighty Force launched globally, driving significant revenue, profit margin improvements, and nearly 30,000 DAU with strong ROAS.

• Bi-monthly season passes led to a 40% increase in season pass revenue for key titles.

• Strategic focus remains on profitability, cash accumulation, and sustainable user acquisition.

Financial highlights

• Q3 revenue reached CAD 21.4 million; year-to-date revenue totaled $62.8 million.

• Adjusted EBITDA margin was 12% for Q3 2024.

• Ended Q3 with CAD 8.3 million in cash, up 11% from Q2 and the highest since Q2 2022.

• Average daily active users: 236,000; stickiness rate: 24%; ARPDAU: CAD 0.99.

• Share buyback program continued, with over 1.54 million shares repurchased at an average price of $0.76.

Outlook and guidance

• Plans to deploy capital for new game launches in 2025 and expand the share buyback program.

• Q4 to introduce team-based play features and new guilds in major titles, expected to boost engagement and monetization.

• Trailer Park Boys: Greasy Money to launch on Epic Games Store, expanding into a new marketplace.

• RuPaul's Drag Race Match Queen, a new hybrid match-3 game, is set for early 2025 release.

• Anticipates increased revenue opportunities from the Epic Games Store partnership in 2025.