Revenue Increases 16% Year-Over-Year to $1.2 Million
Bookings* Decrease 8% Year-Over-Year to $1.1 Million
Net Income of $2k Compared to Previous Year Net income of $83k
Adjusted EBITDA* Decreases 44% Year-Over-Year to $119k
Basic and Fully Diluted EPS of $0.00
NEW YORK, Aug. 12, 2024 /PRNewswire/ -- Tapinator, Inc. (OTC: TAPM) ("Tapinator," the "Company," "we," "our" or "us"), a developer and publisher of category leading games for mobile platforms, today announced unaudited financial results for the three and six months ended June 30, 2024, and the filing of its quarterly report for the periods ended June 30, 2024 and 2023.
Tapinator Logo (PRNewsfoto/Tapinator, Inc.)
The quarterly 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 three months ended June 30, 2024, Tapinator achieved revenue and bookings* of approximately $1.2 million and $1.1 million, respectively, and net income and adjusted EBITDA* of approximately $2,000 and $119,000, respectively. The Company's quarterly revenue, bookings*, net income and adjusted EBITDA* represent year-over-year change of 16%, -8%, -97% and -44%, respectively. For the three-month period, the Company also announced basic and fully diluted net income of $0.00 per share.
For the six months ended June 30, 2024, Tapinator achieved revenue and bookings* of approximately $2.4 million and $2.3 million, respectively, and net income and adjusted EBITDA* of approximately $146,000 and $262,000, respectively. The Company's revenue, bookings*, net income and adjusted EBITDA* for the six-month period represent year-over-year change of 16%, -2%, -49% and -22%, respectively. For the six-month period, the Company also announced basic and fully diluted net income of $0.05 per share.
*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
Three Months Ended
Six Months Ended
June 30
June 30
2024
2023
% Ch.
2024
2023
% Ch.
GAAP Results:
Revenue
$1,207,804
$1,036,982
16 %
$2,443,088
$2,101,835
16 %
Operating Income (loss)
($25,126)
$75,429
-133 %
($3,709)
$93,664
-104 %
Net Income
$2,226
$82,855
-97 %
$146,349
$284,554
-49 %
Net Income margin %
0 %
8 %
6 %
14 %
Net Income Per Share – Basic
$0.00
$0.03
$0.05
$0.10
Net Income Per Share – Diluted
$0.00
$0.03
$0.05
$0.10
Weighted avg. common shares outstanding - basic
2,725,439
2,725,439
2,725,439
2,725,439
Weighted avg. common shares outstanding - diluted
2,725,439
2,725,439
2,725,439
2,725,450
Non-GAAP Results:
Bookings:
Category Leading Games
$1,066,583
$1,127,036
-5 %
$2,208,067
$2,174,259
2 %
Rapid-Launch Games
17,437
53,703
-68 %
42,117
121,763
-65 %
Total Bookings
$1,084,020
$1,180,739
-8 %
$2,250,184
$2,296,022
-2 %
Adjusted EBITDA
$118,724
$211,105
-44 %
$262,59
$335,806
-22 %
Adjusted EBITDA Margin %
10 %
20 %
11 %
16 %
(1) Percentage change not meaningful.
Ilya Nikolayev, CEO of Tapinator, commented, "Q2 2024 was a challenging quarter for us. Despite a 16% increase in year-over-year quarterly revenue, we saw an 5% decrease in bookings for our core Category Leading Games. As we have noted previously, we have expanded our marketing efforts this year and, thus far, this strategy has not yielded desired results. We are currently adjusting our marketing strategy to better align spend with current booking levels.
In May and July, we launched major update 1.3 and 1.4, respectively, to our latest game, Blackjack Live Casino. Later this month, we will be launching the Android version of this game on Google Play. Overall, we are very focused on ramping up the daily active user (DAU) count for this title and, between improvements to the game and the launch on Google Play, we are hopeful that we'll be able to scale the player base.
As we have noted previously, while creating the live host experience for Blackjack Live Casino, we spent significant time exploring the voice and chat capabilities of AI. We are currently working on two new products - one at the intersection of chat and AI; the other at the intersection of mobile gaming and AI. Both products utilize the core expertise that our team has in mobile app development, and we plan on launching both products later this year.
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 United States generally accepted accounting principles ("GAAP"). Management uses Bookings and adjusted EBITDA internally in analyzing our financial results to assess operational performance and liquidity. The presentation of Bookings and adjusted EBITDA is not intended to be considered in isolation or as a substitute for the financial information prepared in accordance with GAAP. We believe that both management and investors benefit from referring to Bookings and adjusted EBITDA in assessing our performance and when planning, forecasting, and analyzing future periods. We believe Bookings and adjusted EBITDA are useful to investors because it allows for greater transparency with respect to key financial metrics we use in making operating decisions and because our investors and analysts use them to help assess the health of our business. Below, we have provided reconciliations between our historical Bookings and adjusted EBITDA to the most directly comparable GAAP financial measures. Some limitations of Bookings and adjusted EBITDA are as follows:
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 gain 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 12/31/2023
Q1 2024
Q2 2024
Cumulative Totals as of 06/30/2024
# of NFTs Collected
724
1
0
725
# of NFTs Sold
-292
-24
-19
-335
# of NFTs Held, Cumulatively
432
409
390
390
Cost of NFTs Collected
$ 2,925,228
$ 2,925,228
Proceeds from Sale of Collected NFTs
(1,600,482)
(300,315)
(96,344)
$ (1,997,141)
Proceeds from Sale of Digital Asset Dividends & Airdrops
(185,816)
-
-
(185,816)
Cost of NFTs Collected, Net of Sales Proceeds
$ 1,138,930
$ (300,315)
$ (96,344)
$ 742,271
* We are no longer actively investing in the NFT ecosystem, and we have been selectively selling digital assets under market conditions as market conditions allow and that we deem appropriate.
Reconciliation of GAAP to Non-GAAP Results
Three Months Ended
Six Months Ended
June 30
June 30
2024
2023
2024
2023
Reconciliation of Revenue to Bookings:
Revenue
$1,207,804
$1,036,982
$2,443,088
$2,101,835
Change in deferred revenue
(123,784)
143,757
(192,904)
194,187
Bookings
$1,084,020
$1,180,739
$2,250,184
$2,296,022
Reconciliation of Net Income to Adjusted EBITDA:
Net income
$2,226
$82,855
$146,349
$284,554
Interest income, net
(1,133)
(1,864)
(2,139)
(2,310)
Income tax expense, net
11,100
17,200
28,600
54,900
Loss on Impairment of digital assets
-
-
101,283
-
Amortization of capitalized software development costs
140,899
129,548
260,005
229,885
Depreciation and amortization of other assets
2,951
3,212
6,163
6,425
Gain on sale of digital assets
(37,319)
(19,166)
(277,802)
(239,884)
Gain on sale of investments
-
(3,596)
-
(3,596)
Stock-based compensation
-
2,916
-
5,832
Adjusted EBITDA
$118,724
$211,105
$262,59
$335,806
About Tapinator Tapinator Inc. (OTC: TAPM) develops and publishes Category Leading Games for mobile platforms. Tapinator's library includes more than 300 titles that, collectively, have achieved over 500 million mobile downloads, including notable properties such as Video Poker Classic, Keno Vegas, and Blackjack Live Casino. We generate revenues from our mobile games via consumer transactions, including in-app purchases and subscriptions, and through the sale of branded advertisements. Founded in 2013, we are headquartered in New York, with product teams located in North America and Europe.
Forward Looking Statements To the extent that statements contained in this press release are not descriptions of historical facts regarding Tapinator, they are forward-looking statements reflecting the current beliefs and expectations of management made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Words such as "believe," "goal," "seek," "plan," "feel," "hope," "opinion," "may," "will," "expect," "anticipate," "estimate," "intend," "target," and similar expressions (as well as other words or expressions referencing future events, conditions, or circumstances) are intended to identify forward-looking statements. These forward-looking statements include, among other things, our hope that we will be able to scale the player base for Blackjack Live Casino based on improvements to the game and its launch on Google Play and our plan to launch two new products relating to Blackjack Live Casino - one at the intersection of chat and AI and the other at the intersection of mobile gaming. Forward-looking statements are subject to risks and uncertainties that could cause our future results, performance, or achievements to differ significantly from those expressed or implied by the forward-looking statements. Except as required by law, Tapinator undertakes no obligation to update or revise any forward-looking statements. The quoting and trading of the Company's common stock on the OTC Marketplace is often thin and characterized by wide fluctuations in trading prices, due to many factors that may have little to do with the Company's operations or business prospects. As a result, there may be volatility in the market price of the shares of the Company's common stock for reasons unrelated to operating performance. Moreover, the OTC Marketplace is not a stock exchange, and trading of securities on it is often more sporadic than trading of securities listed on a national securities exchange. Accordingly, stockholders may have difficulty reselling any of their shares. For a further description of the risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of the Company, please see the Company's Supplemental Information Report as filed with the OTC Markets on October 20, 2021 and as updated from time to time.
