In the news release,
Tapinator Announces Q1 2024 Financial Results
- Revenue Increases 16% Year-Over-Year to
- Bookings* Increase 5% Year-Over-Year to
- Net Income of
- Adjusted EBITDA* Increases 15% Year-Over-Year to
- Basic and Fully Diluted EPS of
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
*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 |
|
|
|
|
|
|
|
2024 |
2023 |
% Ch. |
GAAP Results: |
|
|
|
Revenue |
|
|
16 % |
Operating Income |
|
|
17 % |
Net Income |
|
|
-29 % |
Net Income margin % |
12 % |
19 % |
|
|
|
|
|
Net Income Per Share - Basic |
|
|
|
Net Income Per Share - Diluted |
|
|
|
|
|
|
|
Weighted avg. common shares outstanding - basic |
2,725,439 |
2,725,439 |
|
Weighted avg. common shares outstanding - diluted |
2,725,439 |
2,725,527 |
|
|
|
|
|
Non-GAAP Results: |
|
|
|
Bookings: |
|
|
|
Category Leading Games |
|
|
9 % |
Rapid-Launch Games |
24,680 |
68,060 |
-64 % |
Total Bookings |
|
|
5 % |
|
|
|
|
Adjusted EBITDA |
|
|
15 % |
Adjusted EBITDA Margin % |
12 % |
12 % |
|
|
|
|
|
"From a product development perspective, we continue to invest in our key Category Leading Games, including Video Poker Classic. As we noted previously, our newest title is Blackjack Live Casino, a "stadium" game with live hosts that is a social product at its core. The game features real-time, live hosts who engage with players, via voice, and provide commentary on gameplay, strategy, player chat, and more. We have been releasing monthly updates to the game, with a multitude of new features and optimizations. For Q2 and Q3 of 2024, we have two significant updates planned along with the upcoming release of the Android version of the game. We are encouraged by the monetization metrics that we are seeing. With our game updates, we are very focused on improving retention which, we believe, is key to our success.
"While building Blackjack Live Casino, within the context of a "live host" experience, we have spent significant time on voice and chat functionality and how these features can be expanded and enriched via AI. We are currently exploring opportunities at the intersection of voice, chat, and AI and we hope to provide an update on these efforts in Q3. 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 2024 |
Cumulative |
# of NFTs Collected |
724 |
1 |
725 |
# of NFTs Sold |
-292 |
-24 |
-316 |
# of NFTs Held, Cumulatively |
432 |
409 |
409 |
Cost of NFTs Collected |
$ 2,925,228 |
|
$ 2,925,228 |
Proceeds from Sale of Collected NFTs |
(1,600,482) |
(300,315) |
(1,900,797) |
Proceeds from Sale of Digital Asset Dividends & Airdrops |
(185,816) |
- |
(185,816) |
Cost of NFTs Collected, Net of Sales Proceeds |
$ 1,138,931 |
$ (300,315) |
$ 838,616 |
*We are no longer actively investing in the NFT ecosystem, and we have been selectively selling digital assets under market conditions that we deem appropriate.
Reconciliation of GAAP to Non-GAAP Results
|
Three Months Ended |
|
|
|
|
|
2024 |
2023 |
Reconciliation of Revenue to Bookings: |
|
|
Revenue |
|
|
Change in deferred revenue |
(69,120) |
50,430 |
Bookings |
|
|
|
|
|
Reconciliation of Net Income to Adjusted EBITDA: |
|
|
Net income |
|
|
Interest income, net |
(1,006) |
(446) |
Income tax expense, net |
17,500 |
37,700 |
Impairment of digital assets |
101,283 |
- |
Amortization of software development costs |
119,107 |
100,337 |
Depreciation and amortization of other assets |
3,212 |
3,212 |
Gain on sale of digital assets |
(240,483) |
(220,719) |
Stock based compensation |
- |
2,916 |
Adjusted EBITDA |
|
|
About
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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