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Solid Clouds hf. Investor Presentation 2024
8579_rns_2024-11-08_15bd7b8c-a55a-47f9-8fa3-6782528644cb.pdf
Investor Presentation
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SOLIDCLOUDS
Investor Presentation November 2024
RECENT BUSINESS SUCCESSES
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COMPARISONS
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The April 2024 launch of Starborne Frontiers is going well. The game is now available on the Android, Apple, PC and Steam platforms. Starborne Frontiers has been well received, averaging 4.5+ stars across all target markets on both Google Play and Apple App Store. The game was also nominated as the best small screen game for the Nordic Game Awards in 2024.
The game has received attention from both Apple and Google—the kind of recognition typically only reserved for top-tier games. Starborne Frontiers has already been promoted on the mobile stores, and it is anticipated that these promotions will become a regular occurrence.
Starborne Frontiers is a live service game, meaning it continually evolves with regular expansions and new content to keep players engaged and invested. Good life service games that are actively maintained can have a long shelf life and achieve significant business success.
The Key Performance Indicators (KPIs) of the game are strengthening. Metrics like Daily Player Conversion, Average Revenue Per Active Player (ARPDAU), and median play session length have delivered strong results.
The most important metric is Return on Ad Spend (ROAS), which tracks revenue per advertising dollar. ROAS is crucial because it measures the profitability and scalability of Starborne Frontiers. As the game is optimized and new content is introduced to increase player engagement, ROAS improves.
SOLIDCLOUDS
RETURN OF AD SPEND - ROAS 2024
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DOWNTOWER
CONTINUED
DRAFT
ROAS by Month:
Each row represents the ROAS percentage of Starborne Frontiers achieved over different time periods, such as 1 month (D30), 2 months (D60), and so on, for each month of 2024 from January to September. The light orange boxes are projected numbers.
| | JANUARY
COHORT | FEBRUARY
COHORT | MARCH
COHORT | APRIL
COHORT | MAY
COHORT | JUNE
COHORT | JULY
COHORT | AUGUST
COHORT | SEPTEMBER
COHORT |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| ROAS Ad Spend USD | 7k | 21k | 40k | 54k | 100k | 78k | 60k | 79k | 87k |
| ROAS 0-30 days | 46% | 43% | 44% | 50% | 41% | 55% | 49% | 52% | 59% |
| ROAS 30-60 days | 12% | 11% | 9% | 15% | 7% | 13% | 16% | 16% | 15% |
| ROAS 60-90 days | 4% | 3% | 7% | 12% | 4% | 9% | 7% | 7% | 12% |
| ROAS 90-120 days | 6% | 7% | 3% | 8% | 3% | 2% | 7% | 7% | 10% |
| ROAS 120-150 days | 8% | 1% | 0% | 5% | 2% | 5% | 7% | 7% | 7% |
| ROAS 150-180 days | 7% | 1% | 2% | 3% | 3% | 5% | 7% | 7% | 7% |
| ROAS 180-210 days | 3% | 3% | 1% | 3% | 3% | 5% | 7% | 7% | 7% |
| ROAS 210-240 days | 2% | 1% | 2% | 3% | 3% | 5% | 5% | 7% | 7% |
| ROAS 240-270 days | 2% | 2% | 2% | 3% | 3% | 5% | 5% | 5% | 5% |
| Cumul. ROAS 180 days | 83% | 66% | 65% | 93% | 62% | 89% | 93% | 96% | 110% |
| Cumul. ROAS 270 days | 90% | 70% | 68% | 99% | 66% | 99% | 105% | 110% | 124% |
The cumulative ROAS row reflects the overall return on ad spend performance. For example, in January, 90% of the ad spend was recovered after eight months.
SOLIDCLUUDS
图
图
ROAS - IMPROVEMENTS
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Solid Clouds has observed significant improvements in the ROAS curve during the first half of 2024. Expected ad spend payback time is approximately 12 months with a 100% 360 days ROAS for each advertising dollar spent.
The goal for the second half of 2024 is to reduce the payback period to 6-8 months. The primary development efforts during 2H 2024 are focused on optimizing ROAS and in-game retention beyond the Day 30 period.
Key drivers for these improvements in the second half of 2024 include a robust live operations plan, a Steam launch, new game content, enhanced visibility on mobile app stores and further optimization of current systems.
SOLIDCLouds
DAILY PLAYER CONVERSION
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Daily conversion for Starborne Frontiers rose steadily from 3% in June 2023 to 7% in May 2024, before leveling off at 6-7% in August to October.
The conversion rate for Starborne Frontiers is significantly higher than the average Google benchmark for massively multiplayer role playing games.
Daily conversion measures the percentage of players who make in-game purchases each day. A high rate indicates strong engagement and effective monetization.
Starborne Frontiers
Google benchmark (Massively multiplayer role playing games)
SOLIDCLOUDS
AVERAGE REVENUE PER DAILY ACTIVE USER
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Average Revenue Per Daily Active Users (ARPDAU) has increased from January to October, already surpassing the Google benchmark for Massively Multiplayer Online Role-Playing Games (MMORPGs) of $0.36.
Solid Clouds has already achieved its immediate ARPDAU target. The primary development focus has shifted to introducing more long-term content aimed at retaining players and further enhancing long-term ROAS.
SOLIDCLUUDS
MEDIAN SESSION LENGTH
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Starborne Frontiers all user profiles (Min)
Median session lenght game analytics: Mobile Gaming Benchmark Q1 2024 (Min)
The median session length increased from 6.83 minutes in June 2023 to 11.26 minutes in October 2024.
According to Game Analytics: Mobile Gaming Benchmark Q1 2024, the median session length for all games is 4.45 minutes, highlighting Starborne Frontiers strong performance.
Player engagement, a key driver of long-term success, is well represented by this growth in median session length.
SOLIDCLOUDS
2024
2024
2025
ROADMAP 2024-2025
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COMPATENCIES
COMPONENTS
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2024 Q4
2025
Q1
VOIDBRINGERS
- Player versus Environment (PVE) socially oriented end game content.
- Early game social onboarding update.
Q2
CHAMPIONS
- PVP focused for Mid/End-Game.
- Equipment Calibrations.
Q3
WORLDATER
- Global boss event.
- Community-driven progression.
Q4
SURVIVORS
- PVE Mid/End game progression.
- New unit progression system.
Solid Clouds has aligned its roadmap for the next 12 months to maximize promotion opportunities by bundling features into expansions. Starborne Frontiers will have eight releases annually—four major and four seasonal—providing multiple chances to pitch for promotions on the Apple, Google, and Steam platforms.
Each expansion and seasonal update also provides an opportunity to retarget older players to revisit the game.
SOLIDCLUUDS
REVENUE AND DAILY ACTIVE USERS 2024
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Growth Since Launch: Since launching Starborne Frontiers in April, Solid Clouds has experienced increases in both revenue and average Daily Active Users (DAU) as the marketing budget expands. The dip in July and August is due to the seasonal lull in gaming—a common industry trend.
Strategic Marketing Focus: Solid Clouds is concentrating its marketing efforts on acquiring high-value players in key Western markets like the U.S., targeting those most likely to engage with the game and make in-game purchases.
Accelerating Scaling: After securing additional financing, the company plans to accelerate growth by improving Return on Ad Spend (ROAS) and increasing ad spend.
SOLIDCLAUDS
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LIVE OPERATIONS
Starborne Frontiers operates on a live service model, engaging players through regular updates, rewards, and challenges.
The graph to the right demonstrates how special offers and events consistently drive daily revenue peaks. By developing robust frameworks for these game events, Solid Clouds has amplified their impact, resulting in a steady improvement in daily revenue figures.
Games like Fortnite, Helldivers 2, and Warframe show how timely updates and events attract and retain players. Solid Clouds' model relies on continuous content updates to sustain player interest and drive revenue growth.
SOLIDCLAUDS
REVENUE & COSTS 2024-2025 PLAN
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ISK Cash Flow
40,000,000
30,000,000
20,000,000
10,000,000
0
-10,000,000
-20,000,000
-30,000,000
-40,000,000
ISK Cash Flow
44,000,000
30,000,000
20,000,000
10,000,000
Game Revenue (dark green bars) is projected to grow due to several factors, including improved Return on Ad Spend (ROAS), a larger advertising budget, and the game's distribution on Steam.
R&D tax credits are accrued throughout the year but paid out in November. For clarity, the graph distributes them evenly across the months (shown as light green bars).
Total fixed expenses (red bars) remain steady throughout the forecast period.
As the game scales up, ad spending (yellow bars) and platform payment fees (orange bars) increase accordingly.
SOLIDCLOUDS
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CERTIFIED
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FINANCING
As previously announced at the 2024 AGM and in our 1H 2024 results, the Company requires additional financing to support its operational and marketing budget.
- Funding Requirements: Solid Clouds estimates that approximately 700-800 million ISK will be needed over the next 18-24 months.
- Meetings with selected investors: The Company is currently taking meetings with selected potential investors for an upcoming financing round, aiming to secure part or all of the funding requirements.
- Management Participation: It is expected that members of Solid Clouds management team and board of directors will also participate in this funding round.
SOLIDCLUUDS
www.solidclouds.com