East Side Games Group (ESGG) has reported impressive financial results for the second quarter of 2024, showcasing its commitment to consistent growth and strategic investments. The company generated revenue of $20.5 million and an adjusted EBITDA of $2.5 million, representing a 12% margin. These figures demonstrate ESGG’s continued success in delivering positive cash flow while investing heavily in future projects.
ESGG’s focus on sustaining the success of its long-tail games, while simultaneously launching new titles, is proving to be a winning strategy. The company’s flagship match game, Bud Farm: Munchie Match, continued its exceptional performance, with average topline revenue increasing by almost 50% during the quarter. This highlights the growing importance of match games within ESGG’s future revenue streams.
In Q2, ESGG successfully launched Cheech and Chong’s: Kush Kingdom, its second entry into the match game market. Early metrics for this new title are already meeting or exceeding those of Bud Farm: Munchie Match, confirming the company’s ability to consistently deliver successful puzzle games. This further strengthens ESGG’s position as a leading player in the Match 3 game industry.
The company also celebrated a historic brand crossover event between Star Trek Lower Decks: Mobile and Doctor Who: Lost in Time. This collaboration resulted in ESGG’s highest revenue day since the end of the pandemic lockdowns and set a new record for Doctor Who: Lost in Time. The event generated significant buzz on social media, highlighting the strong engagement and interest from the ESGG community. The success of this event has encouraged the company to plan additional brand crossover events within its diverse portfolio of titles.
Looking ahead to the third quarter, ESGG is excited about the global launch of POWER RANGERS MIGHTY FORCE, which has shown promising early results. In addition, ESGG has announced its second collaboration with World of Wonder, this time focusing on a mobile game inspired by the popular show RuPaul’s Drag Race. The studio’s first game in collaboration with WOW, RuPaul’s Drag Race Superstar, launched in October 2021 and remains ESGG’s top-grossing game with over 4.4 million installs.
Jason Bailey, CEO of East Side Games Group, commented on the company’s performance, saying, “Our team delivered another strong quarter with continued stability through the first half of the year. We grow stronger every quarter as we increase our cash balance, diversify our portfolio, invest heavily in our future, and, most importantly, build a strong base of knowledge and experience, which will allow us to dominate new genres with exceptional IP game launches.”
ESGG’s Q2 2024 financial highlights include:
* Revenue of $20.5 million
* Adjusted EBITDA of $2.5 million and a 12% adjusted EBITDA margin
* Cash flow increased by $350,000, ending at $7.6 million
* Daily Active Users (DAU) in Q2 were 229,000, with an ARPDAU of $0.98
These impressive results demonstrate East Side Games Group’s dedication to innovation, strategic partnerships, and the creation of engaging mobile games that resonate with players worldwide. The company is well-positioned for continued success in the rapidly evolving mobile gaming landscape.
