Tapinator Announces 2023 Annual and Fourth Quarter Results
- Revenue Decreases 20% Year-Over-Year to
- Bookings* Decreases 14% Year-Over-Year to
- Net Income of
- Adjusted EBITDA* Decreases 29% Year-Over-Year to
- Basic and Fully Diluted EPS of
The annual report and financial statements have been published on OTC Markets and may be found at http://www.otcmarkets.com/stock/TAPM/disclosure. The results provided below replace, in their entirety, any guidance or projections previously issued by the Company.
For the year ended
For the three months ended
*A table has been included in this press release with non-GAAP adjustments to the Company's revenue resulting in bookings (a non-GAAP measure) and non-GAAP adjustments to the Company's net income, resulting in adjusted EBITDA (a non-GAAP measure) for the relevant periods.
Financial Highlights
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Three Months Ended |
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Year Ended |
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2023 |
2022 |
% Ch. |
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2023 |
2022 |
% Ch. |
GAAP Results: |
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Revenue |
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0 % |
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-20 % |
Operating Income |
( |
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-142 % |
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-58 % |
Net Income (Loss) |
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( |
NM(1) |
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-87 % |
Net Income (Loss) margin % |
4 % |
-51 % |
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1 % |
5 % |
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Net Income (Loss) Per Share - Basic |
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( |
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Net Income (Loss) Per Share - Diluted |
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( |
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Weighted avg. common shares outstanding - basic |
2,725,439 |
2,725,439 |
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2,725,439 |
2,802,109 |
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Weighted avg. common shares outstanding - diluted |
2,725,439 |
2,726,105 |
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2,725,439 |
2,869,878 |
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Non-GAAP Results: |
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Bookings: |
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Category Leading Games |
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3 % |
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-7 % |
Rapid-Launch Games |
24,681 |
53,929 |
-54 % |
|
190,910 |
359,811 |
-47 % |
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- |
28,192 |
-100 % |
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- |
258,246 |
-100 % |
Total Bookings |
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-3 % |
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-14 % |
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Adjusted EBITDA |
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-20 % |
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-29 % |
Adjusted EBITDA Margin % |
19 % |
23 % |
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20 % |
23 % |
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(1) Percentage change not meaningful. |
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We have previously communicated that, from a product perspective, our focus is threefold.
- Continue to execute on our Video Poker Classic roadmap, to further optimize our flagship product
- Port features that have been proven within Video Poker Classic to
Keno Vegas andLucky Lotto , with the goal of pushing the metrics of these titles closer to that of Video Poker Classic, and - Launch a new mobile game that focuses on the blackjack space, Blackjack Live Casino
We are pleased to report that we are executing on all three initiatives. We launched Blackjack Live Casino four months ago. The game is a social product at its core and features "stadium" gameplay. This means that all online players are dealt the same initial two cards and are then able to independently make decisions on how to play the hand, with the goal of beating the dealer in heads up gameplay. To add to the social experience, the game features real-time, live hosts who engage with players, via voice, and provide commentary on gameplay, strategy, player chat, and more. Currently, live hosts are present 18 hours per day, 7 days per week. We are encouraged by the monetization metrics that we are seeing and are very focused on improving retention which, we believe, is key to success.
As noted previously, given the maturation of mobile gaming, we are also seeking alternative growth opportunities for our shareholders within other industries/markets that can offer more significant growth prospects for the Company. We have evaluated numerous other opportunities to drive shareholder value over the past year and continue to evaluate such opportunities."
Non-GAAP Financial Measures*
We have provided in this release the non-GAAP financial measures of Bookings and adjusted EBITDA as a supplement to the measures of Revenue and Operating which are prepared in accordance with
- Bookings do not reflect that we defer and recognize online game revenue over the estimated life of durable virtual goods;
- Adjusted EBITDA does not include the impact of stock-based expense, impairment of previously capitalized software or intangible assets previously acquired, gain on digital asset dividends & airdrops, gain on sale of digital assets and g ain on sale of investments;
- Adjusted EBITDA does not reflect income tax expense;
- Adjusted EBITDA does not include other income or expenses, which includes foreign exchange gains and losses, interest income or expense, and gain on extinguishment of debt;
- Adjusted EBITDA excludes depreciation and amortization of intangible assets and impairment of capitalized software. Although depreciation, amortization, and impairment of capitalized software are non-cash charges, the assets being depreciated, amortized, or impaired may have to be replaced in the future; and
- Other companies, including companies in our industry, may calculate adjusted EBITDA differently or not at all, which will reduce their usefulness as a comparative measure.
Because of these limitations, you should consider Bookings and adjusted EBITDA, along with other financial performance measures, including Revenue, Net Income (Loss), Basic and Diluted Net Income (Loss) Per Share, Cash Flow from Operations, Operating Income (Loss), and our other financial results presented in accordance with GAAP.
NFT500 Supplemental Information – Summary Collection Metrics
|
Totals as of |
Q1 2023 |
Q2 2023 |
Q3 2023 |
Q4 2023 |
Cumulative |
# of NFTs Collected |
581 |
110 |
14 |
19 |
0 |
724 |
# of NFTs Sold |
-54 |
-80 |
-99 |
-6 |
-53 |
-292 |
# of NFTs Held, Cumulatively |
527 |
557 |
472 |
485 |
432 |
432 |
Cost of NFTs Collected |
$ 2,665,445 |
$ 142,054 |
$ 22,711 |
$ 95,018 |
$ - |
$ 2,925,228 |
Proceeds from Sale of Collected NFTs |
(1,191,354) |
(277,504) |
(51,391) |
(9,139) |
$ (71,094) |
(1,600,482) |
Proceeds from Sale of Digital Asset Dividends |
(185,816) |
- |
- |
- |
- |
(185,816) |
Cost of NFTs Collected, Net of Sales Proceeds |
$ 1,288,275 |
$ (135,450) |
$ (28,680) |
$ 85,879 |
$ (71,094) |
$ 1,138,930 |
Reconciliation of GAAP to Non-GAAP Results
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Three Months Ended |
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Year Ended |
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2023 |
2022 |
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2023 |
2022 |
Reconciliation of Revenue to Bookings: |
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Revenue |
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Change in deferred revenue |
(39,542) |
(5,582) |
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182,345 |
(182,785) |
Bookings |
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Reconciliation of Net Income to Adjusted EBITDA: |
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Net income (loss) |
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( |
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Interest expense, net |
(1,834) |
- |
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(6,088) |
(322) |
Impairment of capitalized software |
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Income tax expense, net |
(37,518) |
- |
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17,382 |
- |
Gain on digital asset dividends & airdrops |
- |
- |
|
- |
(145,681) |
Amortization of capitalized software development costs |
215,557 |
120,485 |
|
609,667 |
367,959 |
Depreciation and amortization of other assets |
3,212 |
3,212 |
|
12,849 |
13,892 |
Impairment of digital assets |
- |
578,811 |
|
449,514 |
1,031,656 |
Gain (loss) on sale of digital assets |
(41,992) |
(8,113) |
|
(274,061) |
(569,104) |
Gain on sale of investments |
- |
- |
|
(3,596) |
(5,091) |
Stock-based compensation |
635 |
23,201 |
|
9,383 |
137,446 |
Adjusted EBITDA |
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About Tapinator
Forward Looking Statements
To the extent that statements contained in this press release are not descriptions of historical facts regarding
CONTACT:
Tapinator Investor Relations
investor.relations@tapinator.com
914.930.6232
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