Nazara Technologies Results: Latest Quarterly Results & Analysis

Internet Software & Services company Nazara Technologies announced Q3FY24 & 9MFY24 results:

Consolidated Q3FY24:

• Revenue: Increased to Rs 320.4 crore, a 2% growth compared to Rs 314.8 crore in Q3FY23.
• EBITDA: Rose by 24% to Rs 37.7 crore from Rs 30.5 crore in Q3FY23.
• EBITDA Margin: Improved by 210 basis points to 11.8% from 9.7% in Q3FY23.
• PAT (Profit After Tax): Grew by 47% to Rs 29.5 crore versus Rs 20.1 crore in Q3FY23.

Consolidated 9MFY24:

• Revenue: 9% increase to Rs 872.1 crore from Rs 801.7 crore in 9MFY23.
• EBITDA: 20% growth to Rs 98.7 crore, up from Rs 81.9 crore in 9MFY23.
• EBITDA Margin: Went up by 110 basis points to 11.3% from 10.2% in 9MFY23.
• PAT: Increased by 44% to Rs 74.6 crore compared to Rs 51.8 crore in 9MFY23.

Fundraising and Cash Balance:

• Fundraising: The company raised Rs 760 crore through a preferential placement to marquee investors.
• Proforma Cash Balance: Approximately Rs 1,500 crore, which includes the recent fund raise.

Business Segments (9MFY24):

• Gaming: Contributed 36% of total revenue.
• eSports: Accounted for 55% of total revenue.
• Adtech: Made up 9% of total revenue.

Geographical Revenue Breakdown (9MFY24):

• India: 46% of total revenue.
• North America: 38% of total revenue.
• Rest of the World: 16% of total revenue.

Commenting on the Q3 & 9MFY24 performance, Nitish Mittersain, Founder, CEO & Jt MD of Nazara Technologies stated: “We saw healthy growth in Animal Jam and Sportskeeda resulting in our EBITDA increase by 24% year-on-year and our EBITDA margin increasing from 9.7% in Q3FY23 to 11.8% in Q3FY24, with our esports segment witnessing a remarkable 79% EBITDA growth.

Our approach of acquiring global gaming IPs and leveraging focused user acquisition alongside data-driven product innovation is beginning to pay off, as demonstrated by Animal Jam's performance in Q3. We are optimistic this strategy will enable substantial scale-up opportunities we can replicate in the future.

We have also completed our FY24 fundraising goal, securing Rs 760 crore through a preferential placement to marquee investors. With significant cash reserves, we're in an excellent position to pursue the exciting acquisition opportunities our team has identified, aiming for strategic expansion in the upcoming quarters.

Our Nazara Publishing division has hit the ground running, with its inaugural set of games going live soon. This March, we're proud to lead the Indian delegation at GDC San Francisco, the world's premier gaming conference, and co-host the first ever "India pavilion" marking a significant milestone for us and the Indian gaming community.”

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Internet Software & Services company Nazara Technologies announced Q2FY24 & H1FY24 results:

• Consolidated Q2FY24:

  • Revenue grew by 13% to Rs 297.2 crore as against Rs 263.8 crore in Q2FY23
  • EBITDA increased by 30% to Rs 27.9 crore as against Rs 21.4 crore in Q2FY23
  • EBITDA margin increased by 130 bps to 9.4% in Q2FY24 from 8.1% in Q2FY23
  • PAT grew by 53% to Rs 24.2 crore as against Rs 15.8 crore in Q2FY23
• Consolidated H1FY24:
  • Revenue grew by 13% to Rs 551.7 crore as against Rs 486.9 crore in H1FY23
  • EBITDA increased by 19% to Rs 61.0 crore as against Rs 51.4 crore in H1FY23
  • EBITDA margin increased to 11.1% in H1FY24 from 10.6% in H1FY23
  • PAT grew by 42% to Rs 45.0 crore as against Rs 31.7 crore in H1FY23
  • Cash position of Rs 829.2 crore as of September 30, 2023, as against Rs 628.3 crore as of March 31, 2023. Proforma Cash Balance of Rs 1,339.2 crore, post fundraise

Commenting on the Q2 & H1FY24 performance, Nitish Mittersain, Founder, CEO & Jt MD of Nazara Technologies stated, “We are delighted to report consistent year-on-year growth in both revenue and profit for Q2 and H1FY24. Our strategic focus remains strong as we lay a robust foundation not only for the remainder of FY24 but also for FY25.

We recognize the substantial 'Make in India' potential within the gaming industry, where Indian developers have the opportunity to create top-tier games for both the domestic and international markets. Our newly launched initiative, 'Nazara Publishing,' is geared to offer capital and support services to empower developers in delivering high-quality games to the expanding consumer base.

During this quarter, we successfully secured fresh capital of Rs 510 crore from investors like Nikhil Kamath, a prominent tech entrepreneur in India, and SBI Mutual Fund, the country's largest mutual fund. With a consolidated cash position of around Rs 1,300 crore, Nazara is exceptionally well positioned to seize acquisition opportunities and expedite our growth in the years ahead.”

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Internet software & services company Nazara Technologies announced Q1FY24 results:

• Revenue grew by 14% to Rs 254.4 crore as against Rs 223.1 crore in Q1FY23
• EBITDA increased by 10% to Rs 33.1 crore as against Rs 30 crore in Q1FY23
• EBITDA margin of 13.0% in Q1FY24
• PAT grew by 31% to Rs 20.9 crore as against Rs 15.9 crore in Q1FY23

Commenting on the Q1FY24 performance, Nitish Mittersain, Founder, CEO & Jt MD of Nazara Technologies stated: “Q1FY24 saw our revenue grow by 14% YoY to Rs 254.4 crore, EBITDA by 10% to Rs 33.1 crore & PAT up by 31% to Rs 20.9 crore. Our EBITDA margin for Q1 stood at 13.0%.

Our revenue and EBITDA growth is expected to accelerate in the coming quarters due to seasonality and our decision to defer key esports launches to benefit from upcoming opportunities.

Of note, Sportskeeda continued to deliver a strong performance with a strong 52% growth YoY in revenues and 55% in EBITDA.

The recent announcements related to the skill-based real money gaming business will have minimal impact on our overall financial performance as its contribution is limited to 4.7% of our revenue and 0.5% of our EBITDA in Q1FY24.

We continue to build a healthy pipeline of M&A opportunities in various segments that we operate in, focusing on adding gaming IPs and strong teams to our platform.

In closing, I am happy to note that this is our 10th quarterly result since our IPO delivers consistent YoY revenue and profit growth. We remain dedicated to our stated vision of building out a well-diversified gaming platform that keeps growing stronger as the gaming industry evolves.”

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Internet software & services company Nazara Technologies announced Q4FY23 & FY23 results:

• Q4FY23:
  • Revenue rose by 65% to Rs 2,893 million (Rs 289.3 crore) as against Rs 1,751 million (Rs 175.1 crore) in Q4FY22 
  • EBITDA increased by 86% to Rs 277 million (Rs 27.7 crore) as against Rs 149 million (Rs 14.9 crore) in Q4FY22
  • PAT increased by 92% to Rs 94 million (Rs 9.4 crore) as against Rs 49 million (Rs 4.9 crore) in Q4FY22
• FY23:
  • Revenue grew by 75% to Rs 10,910 million (Rs 1,091.0 crore) as against Rs 6,217 million (Rs 621.7 crore) in FY22
  • EBITDA grew by 16% to Rs 1,097 million (Rs 109.7 crore) as against Rs 946 million (Rs 94.6 crore) in FY22
  • Revenue growth has been broad-based with all three segments of the company showing strong growth; 28% revenue growth in gaming, 75% in eSports, and 53% in ad tech
  • PAT growth of 21% in FY23 - Rs 614 million (Rs 61.4 crore) as against Rs 507 million (Rs 50.7 crore) in FY22
  • Cash & Cash Equivalents (incl. liquid investments) of Rs 6,283 million (Rs 628.3 crore) as of 31st March 2023

Commenting on the FY23 performance, Nitish Mittersain, Founder, CEO & Jt MD of Nazara Technologies stated: “We are delighted to report another milestone year for Nazara. Our strong performance in FY23 with revenues surpassing the Rs 1,000 crore mark at Rs 1,091.0 crore and EBITDA surpassing the Rs 100 crore mark at Rs 109.7 crore is a testament to the hard work and dedication of our team, as well as our strategic investments in high-growth segments. We believe India is well on its way to becoming the Gaming Nation of the world in the years to come and we will continue to play a pivotal role in this journey.”

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Internet software & services firm Nazara Technologies announced Q3FY23 results:

• Consolidated Q3FY23:
  • Revenue rose by 69% to Rs 3,148 million (Rs 314.8 crore) as against Rs 1,858 million (Rs 185.8 crore) in Q3FY22.
  • EBITDA stood at Rs 306 million (Rs 30.6 crore) as against Rs 303 million (Rs 30.3 crore) in Q3FY22.
  • PAT of Rs 224 million (Rs 22.4 crore) as against Rs 171 million (Rs 17.1 crore) in Q3FY22.
• Consolidated 9MFY23:
  • Revenue grew by 80% to Rs 8,017 million (Rs 801.7 crore) as against Rs 4,466 million (Rs 446.6 crore) in 9MFY22.
  • EBITDA stood at Rs 820 million (Rs 82.0 crore) as against Rs 797 million (Rs 79.7 crore) in 9MFY22.
  • PAT of Rs 558 million (Rs 55.8 crore) as against Rs 459 million (Rs 45.9 crore) in 9MFY22, growth of 22%.

Commenting on the 9MFY23 performance, Nitish Mittersain, Founder, CEO & Jt MD of Nazara Technologies stated: “The business continues to scale profitably as has been our stated goal to deliver long term compounding across our five key business verticals. Our diversified business across multiple geographies allows us to have various levers of growth and mitigate industry headwinds affecting any one segment.

I am happy to note that we have grown 80% YoY in the first 9 months of FY23 backed by profitability and positive cash flows. This performance helps set a strong foundation for our future growth plans.

Particularly in this quarter, it is heartening to see our flagship product for young children “Kiddopia” come back onto a growth path as well as our recent acquisition Datawrkz deliver strong organic growth of around 55% YoY.

I look forward to the continued support of all our stakeholders as we continue to pursue our long standing commitment of Nazara playing a significant role in India’s journey towards becoming a global gaming powerhouse.”

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Nazara Technologies announced Q2FY23 results:

• Q2FY23:
  • Revenue increased by 104% to Rs. 2,638 million (Rs. 263.8 crore) as against Rs. 1,296 million (Rs.129.6 crore) in Q2FY22
  • EBITDA stood at Rs. 213 million (Rs. 21.3 crore) as against Rs. 195 million (Rs. 19.5 crore) in Q2FY22
  • Delivered a PAT of Rs. 169 million (Rs. 16.9 crore) as against Rs. 153 million (Rs. 15.3 crore) in Q2FY22
• H1FY23:
  • Revenue increased by 87% to Rs. 4,869 million (Rs. 486.9 crore) as against Rs. 2,608 million (Rs. 260.8 crore) in H1FY22
  • EBITDA stood at Rs. 514 million (Rs. 51.4 crore) as against Rs. 496 million (Rs. 49.6 crore) in H1FY22
  • Delivered a PAT of Rs. 334 million (Rs. 33.4 crore) as against Rs. 288 million (Rs. 28.8 crore) in H1FY22, growth of 16%
  • Consolidated Cash Balance (inclusive of Liquid Investments and Bank deposits) of Rs. 6,507 million (Rs. 650.7 crore) in September 2022 as against Rs. 7,326 million (Rs. 732.6 crore) in March 2022
  • Cash flow from operations of Rs. 174 million (Rs. 17.3 crore), while cash used for acquisitions of Rs. 1,136 million (Rs. 113.6 crore) in H1FY23

Commenting on the H1FY23 performance, Nitish Mittersain, Founder & Jt MD of Nazara Technologies stated: “We are happy to report an accelerated growth of 104% YoY growth for Q2FY23 & 87% YoY in revenues for H1FY23. Our approach to capture opportunities across business segments has continued to deliver high revenue growth in successive quarters. We have many growth opportunities ahead of us and will continue to make investments to accelerate revenues and achieve market leadership in each segment we operate in.”

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Nazara Technologies announced Q1FY23 results:

• Revenue increased by 70% to Rs. 2,231 million as against Rs 1,312 million in Q1FY22 and a growth of 27% QoQ
• EBITDA stood at Rs. 301 million as against Rs. 301 million in Q1FY22, and growth of 102% QoQ as the company invested in growth initiatives across its key segments
• EBITDA margins stood at 13.5% v/s 22.9% for Q1FY22 and 8.5% for Q4FY22
• Delivered a PAT of Rs. 165 million, growth of 22% YoY and 237% QoQ

Commenting on the Q1FY23 performance, Manish Agarwal, CEO at Nazara Technologies stated:“We are happy to report an all-round growth. The multi-pronged approach to capture opportunities have been yielding positive traction and we are in line with our target growth plans for FY23. The traction across businesses; E-sports and Real Money Gaming witnessed strong growth while addition of new growth engine in form of Datawrkz has augmented well for the business. We have also seen stabilisation of unit economics for our Gamified Early Learning business.

The overall revenue for Q1FY23 as against the previous year saw a healthy growth of 70%, leading to a PAT growth of 22% year on year. On the operating margin front, We have made investments in our business segments that will provide us with robust growth opportunities in the years to come. The company will continue to look for growth opportunities both organically and inorganically. In particular, we are looking to augment presence in Freemium segment especially in developed markets.”

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Internet Software & Services firm Nazara Technologies declares Q4FY22 result:

• Nazara reports 273% growth in PAT; 109% growth in EBITDA & 37% Revenue growth YoY for FY22
• The board has recommended a bonus issue of equity shares in ratio of 1:1
• Operating Revenues grew by 37% YoY to Rs. 6,217 million
• EBITDA stood at Rs. 946 million, a growth of 109% YoY
• EBITDA margins stood at 15.2% v/s 10.0% for FY21
• Delivered a PAT of Rs. 507 million, growth of 273% YoY; PAT margin of 8.2%
• Cash & Cash Equivalents (incl. liquid investments) of Rs. 7,321 Mn as of 31st March 2022

Commenting on the performance, Mr. Manish Agarwal, CEO at Nazara Technologies said, “On behalf of Nazara Group, I am glad to report that we have surpassed our revenue and EBITDA guidance for FY22, despite the headwinds caused by change in Apple policies & regulatory environment in real money gaming in India and negative impact of COVID19 in esports segment. In FY22, we generated revenues of Rs. 6,217 Mn, up 37% YoY, EBIDTA of Rs. 946 Mn, up 109 % YoY, and PAT of Rs. 507 Mn, up 273 % YoY.

We are glad to report that all of the group's business sectors are profitable, have added significant cash balance in FY22. Our strategy of diversifying portfolio across business categories continues to give us a solid & robust momentum to grow faster than the overall gaming & esports market in coming years. The Company has cash on hand of Rs. 7,321 Mn as of 31st March 2022. Current cash balance combined with continuous operational cashflows at subsidiary level will keep driving inorganic growth both at Nazara and at subsidiaries”

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Nazara Technologies announced Q3FY22 results:

• Q3FY22 Revenues at Rs. 1,858 Mn and EBIDTA at Rs 302 Mn
• 9MFY22 Operating Revenues grew by 35% YoY to Rs. 4,466 million
• 9MFY22 EBITDA stood at Rs. 797 million, a growth of 141% YoY
• 9MFY22 EBITDA margins stood at 17.8% v/s 10.0%
• 9MFY22 Delivered a PAT of Rs. 428 million, growth of 355% YoY; PAT margin of 9.6%

Commenting on the performance, Mr. Manish Agarwal, Group CEO, said,

“Nazara declared revenue of Rs. 4,466 Mn in 9MFY22 vs Rs. 3,308 Mn in 9MFY21, a growth of 35% on YoY basis, and our 9MFY22 EBIDTA surged by 141% to Rs. 797 Mn as compared to Rs. 331 Mn in 9MFY21.

For Q3FY22, we reported revenue of Rs. 1,858 Mn vs Rs. 1,304 Mn in Q3FY21, a growth of 42% on YoY basis, and our Q3 EBITDA came in at Rs 302 Mn as compared to Rs. 273 Mn in the same quarter of the previous year.

Overall, we are pleased with our growth in strategic areas of focus while maintaining healthy profitability and cash flows.

We have witnessed 75% YoY growth in the esports segment for 9MFY22 led by strong growth in revenue across all sub-segments in Nodwin and SportsKeeda. The addition of original IPs such as NH7 Weekender and expansion of our esports business into the Middle East via our acquisition of Publishme has further accelerated the growth momentum.

Nazara’s strategy of having a diversified portfolio across business segments in gaming continues to provide us with a stable and strong platform on which we can continue to build future growth and success.

Nazara continues to remain committed to building multiple growth levers across gamified learning, freemium, esports and skill-based real money gaming via growth in its current portfolio and the addition of more offerings in the ‘Friends of Nazara’ network through strategic M&A.”

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