Tapinator, Inc. (OTCQB:TAPM)

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Tapinator Announces Record Q2 2021 Financial Results

– Revenues Increase 21% Year-Over- Year to $1.4 Million

– Bookings* Increase 13% Year-Over-Year to Record $1.4 Million

– Adjusted EBITDA* Increases 20% Year-Over-Year to Record $374k

– Net Income Increases 239% Year-Over-Year to $216k

– Basic EPS of $0.38 and Fully Diluted EPS of $.37

 

New York, NYAugust 3, 2021 – Tapinator, Inc. (OTCPK: 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, 2021, and the filing of its quarterly report for the period ended June 30, 2021.

 

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 its entirety, any guidance or projections previously issued by the Company.

 

For the three months ended June 30, 2021, Tapinator achieved record revenue of approximately $1.4 million, record bookings* of approximately $1.4 million, net income of approximately $216,000 and record adjusted EBITDA* of approximately $374,000.  The Company’s quarterly revenue, bookings*, net income and adjusted EBITDA* represent year-over-year improvements of 21%, 13%, 239% and 20%, respectively.  The Company also announced basic and fully diluted net income per share of $0.38 and $0.37 per share, respectively.

 

For the six months ended June 30, 2021, Tapinator achieved record revenue of approximately $2.6 million, record bookings* of approximately $2.8 million, record net income of approximately $453,000 and record adjusted EBITDA* of approximately $574,000.  The Company’s quarterly revenue, bookings*and adjusted EBITDA* represent year-over-year improvements of 26%, 23% and 42%, respectively.  The Company also announced record basic and fully diluted net income per share of $0.82 and $0.80 per share, respectively.

 

*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 loss, resulting in adjusted EBITDA (a non-GAAP measure) for the relevant periods.

 

Financial Highlights

Three Months Ended Six Months Ended
June 30 June 30
2021 2020 % Ch. 2021 2020 % Ch.
GAAP Results:
Revenue $1,420,437 $1,174,365 21% $2,636,342 $2,088,220 26%
Operating Income (Loss) $263,388 $80,543 227% $364,100 ($173,237) NM(1)
Net Income (Loss) $215,993 $63,706 239% $453,446 ($203,497) NM(1)
Net Income (Loss) Per Share – Basic $0.38 $0.12 217% $0.82 ($0.37) NM(1)
Net Income (Loss) Per Share – Diluted $0.37 $0.11 236% $0.80 ($0.37) NM(1)
Weighted avg. common shares outstanding – basic 563,136 551,005 556,315 550,953
Weighted avg. common shares outstanding – diluted 579,684 560,174 569,596 550,953
Non-GAAP Results:
Bookings:
   Category Leading Games $1,232,152 $986,428 25% $2,370,335 $1,701,087 39%
   Rapid-Launch Games $187,804 $271,505 -31% $385,126 $534,155 -28%
Total Bookings $1,419,956 $1,257,933 13% $2,755,460 $2,235,241 23%
Adjusted EBITDA $374,456 $313,158 20% $574,289 $403,377 42%
Adjusted EBITDA Margin % 26% 27% 22% 19%
(1) Percentage change not meaningful.

 

Ilya Nikolayev, CEO of Tapinator commented, “We are extremely happy with our record performance in Q2. As we have previously noted, we are proud of the quality, feature set and overall performance of Video Poker Classic (VPC). We continue to incrementally improve the game and, in Q2, we launched a new Unlocks / Avatar feature, added more special events to the game and optimized the experience for our paying players.

 

We believe that the foundation that we have built out for VPC, including various reengagement and monetization systems, is now ready to be leveraged for a second social casino product. We are currently in design/development of a social casino game that is being built on top of the framework created for VPC. We believe that this approach for building this title will result in a shorter development timeline and a very high quality product, which will translate into strong engagement and monetization metrics.

 

Also, in Q2, we launched our newest idle game, Idle Industries, globally. The game had a great reception by both players, who rated it an average of 4.7 out of 5.0 stars, and Apple, which featured the title in the United States, Germany, France, the UK and a multitude of other countries. We have since gone live with five updates to the product, through which we have launched significant features such as Special Events as well as made various optimizations. In the coming weeks, we will be rolling out version 1.3 of the game, which includes a number of significant enhancements. We are proud of our team’s work in creating a top quality idle game.

 

Finally, we are in development on NFT500, our NFT art collection and casting platform, and we expect to go live with the first version of the product in September of this year. To date, we have acquired over 100 NFT artworks and collectibles from more than 50 different artists and brands.  Examples of such artists and brands include XCopy, Pak, Sarah Zucker, Art Blocks, Hackatao, Bored Ape Yacht Club, Larva Labs, Slime Sunday and Playboy. When we first conceptualized this product, it was our belief that displaying/casting NFTs will be an important direction for the NFT industry. Today, we are even more convinced that this is the case.

 

Unfortunately, our public company valuation does not, in our opinion, reflect the fundamental value of the products that we have built, not to mention the potential value of future products such as NFT500. We are unfazed by this. We will continue to focus on improving existing games and launching exciting new products and, eventually, we believe our public company valuation will catch up to our fundamentals.”

 

Andrew Merkatz, President of Tapinator, also commented on the Company’s results, “We are especially proud of the following operating accomplishments in the second quarter of 2021:

 

  • We achieved record revenue and bookings of approximately $1.4mm, representing growth of 21% and 13% year-over-year, respectively.  This growth was achieved in the context of a previous record Q2 2020 comp resulting from a historic year ago quarter when widespread lockdowns drove significant consumer engagement with our mobile games.  Our growth compares quite favorably to mobile game industry growth estimated at 5% in Q2, 2021, according to market research firm Sensor Tower.
  • Through a combination of top-line growth and continued aggressive cost management, we delivered net income of approximately $216k in the quarter, representing growth of approximately 239% year-over-year.
  • We reported record basic and fully diluted EPS of $0.38 and $0.37, respectively, up 217% and 236%, respectively from basic and fully diluted earnings per share of $0.12 and $0.11 in Q2 2020, respectively.
  • We reported adjusted EBITDA* of approximately $374k, representing growth of 20% year-over-year.
  • Our adjusted EBITDA* margin was 26% during the quarter, down nominally from 27% in Q2, 2020.
  • We successfully published our newest idle tapper game, Idle Industries, on the iOS App Store during the quarter, a game that was predominantly featured at launch by Apple in both the U.S. and Tier 1 international markets.
  • We continued development of NFT500, our mobile NFT collection and casting platform which is slated to launch in September.  Within the NFT500 collection, we acquired more than 100 NFT artworks and collectibles from more than 50 premier artists and brands whose works we believe, in general, are well positioned to yield significant long term capital appreciation.
  • We initiated product development on a new social casino title slated to launch in Q4 of this year.

 

Current Outlook

We continue to have strong conviction regarding our mobile games business, and specifically our Category Leading Games.  Our investments within our Revolution Blockchain subsidiary are more speculative, but we believe there are significant long-term opportunities for the Company within the nascent market representing the intersection of NFTs and mobile gaming.  While we are not providing financial guidance currently, we continue to expect to deliver another full year of strong company-wide revenue and bookings growth along with adjusted EBITDA margins of at least 15% in 2021.

 

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 Income, 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 and projected Bookings and adjusted EBITDA to the most directly comparable GAAP financial measures below.  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, acquisition-related transaction expenses, one-time financing expenses, contingent consideration fair value adjustments, share settlement expense, and restructuring expense;
  • Adjusted EBITDA does not reflect income tax expense;
  • Adjusted EBITDA does not include other income or expense, 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 and amortization and impairment of capitalized software are non-cash charges, the assets being depreciated and 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.

 

Reconciliation of GAAP to Non-GAAP Results

Three Months Ended Six Months Ended
June 30 June 30
2021 2020 2021 2020
Reconciliation of Revenue to Bookings:
Revenue $1,420,437 $1,174,365 $2,636,342 $2,088,220
Change in deferred revenue ($481) $83,568 $119,118 $147,021
Bookings $1,419,956 $1,257,933 $2,755,460 $2,235,241
Reconciliation of Net Income (Loss) to Adjusted EBITDA:
Net income (loss) $215,993 $63,706 $453,446 ($203,497)
Interest expense, net $629 $16,837 $2,251 $30,260
Income tax benefit ($45,348) $0 ($74,480) $0
Amortization of capitalized software development $89,770 $123,728 $167,854 $239,808
Stand-still agreement, non-recurring $93,555 $0 $93,555 $0
Depreciation and amortization of other assets $1,013 $879 $1,765 $1,804
Realized gains on sale of digital assets, net ($1,441) $0 ($1,441) $0
One-time financing costs $0 $16,571 $0 $112,963
Stock-based expense $20,285 $91,437 $40,570 $222,039
Gain on extinguishment of debt $0 $0 ($109,231) $0
Adjusted EBITDA $374,456 $313,158 $574,289 $403,377

 

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 and Idle Industries. Tapinator generates revenues through the sale of branded advertising and via consumer transactions, including in-app purchases and subscriptions. Through our Revolution Blockchain subsidiary, we are investing in blockchain based digital assets and are developing consumer mobile applications that extend these digital asset investments.  Founded in 2013, Tapinator is headquartered in New York, with product development, design and marketing teams located in North America, Asia and Europe. Consumers can find high-quality mobile entertainment wherever they see the ‘T’ character logo, or at http://tapinator.com.

 

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,” “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 belief that the foundation that we have built out for VPC (including various reengagement and monetization systems) is now ready to be leveraged for a second social casino product, our belief that building our new social casino game on top of the framework created for VPC will result in a shorter development timeline and a very high quality product and will translate into strong engagement and monetization metrics, our expectation that will we go live with the first version of NFT500 (our NFT art collection and casting platform) in September of this year, our belief and continuing conviction that displaying/casting NFTs will be an important direction for the NFT industry, our opinion that our public company valuation does not reflect the fundamental value of the products that we have built or the potential value of future products such as NFT500, our belief that our public company valuation with catch up to our fundamentals, our belief that we are well positioned to yield significant long term capital appreciation from our NFT500 collection, our belief there are significant long-term opportunities for the Company within the nascent market representing the intersection of NFTs and mobile gaming and our continued expectation that we will deliver another full year of strong company-wide revenue and bookings growth along with adjusted EBITDA margins of at least 15% in 2021. 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 March 16, 2020 and as updated from time to time.

 

CONTACT:

Tapinator Investor Relations

investor.relations@tapinator.com

914.930.6232

 

Source:  Tapinator, Inc.

Tapinator Announces NFT500   - Innovative NFT Casting Service and Collection Platform to Launch This Summer

New York, NYMarch 30, 2021 – Tapinator, Inc. (OTCPK: TAPM) (“Tapinator,” the “Company,” “we,” “our” or “us”), a developer and publisher of category leading games for mobile platforms, is pleased to announce that it is in development on NFT500, a subscription casting service and collection platform focused on blue chip NFTs. The term “casting” refers to displaying digital art, in the form of NFTs, on a physical display. In addition, the platform may allow subscribers and other stakeholders to participate in the potential appreciation of the NFTs.  The service is expected to launch this Summer, with a preview companion mobile app planned for later this Spring. Consumers may sign up for the service at nft500.com.

 

We expect NFT500 will represent a premier collection of blue chip NFTs from top digital and traditional artists from around the world.  While still nascent, we have already begun to build this collection and we expect to accelerate these ongoing efforts in the coming months and years.  Initially, we plan to launch a mobile application that will provide discovery access to the NFT500 collection.  This will be followed by the NFT500 service that will provide customizable access to the collection through an exclusive subscription casting service.  We are taking a unique, artist-centric and long-term approach to this exciting new asset class.  Data science and proprietary relationships will drive our art acquisition strategy.  We will be commissioning NFTs directly from artists, in addition to working with forward thinking galleries and auction platforms.

 

The NFT500 service will offer a unique pricing and scarcity structure that will include a generous downstream royalty system for participating artists.  We are also exploring the possibility of including both our casting and artist communities in any potential long-term capital appreciation from the collection through the recently minted $NFT500 Token, although we cannot guarantee that any appreciation will occur.

 

Ilya Nikolayev, CEO of Tapinator, commented, “When we look out several years, we envision consumers with screens in their homes displaying NFT based digital art.  We expect that a substantial majority of these consumers will choose not to spend tens or hundreds of thousands of dollars on NFT collections, but rather will utilize our NFT based subscription service to cast pieces from our collection onto their wall. In addition to enjoying pieces from our collection, subscribers may, through the $NFT500 Token, simultaneously have the ability to participate in the potential appreciation of the underlying collection of blue chip NFTs that comprise the NFT500.  We look forward to providing more information about this new casting service and collection platform in coming months as we approach the launch.”

 

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 and Solitaire Derby. Tapinator generates revenues through the sale of branded advertising and via consumer transactions, including in-app purchases and subscriptions. Through its Revolution Blockchain subsidiary, which was established in 2018, the Company is also investing in the non-fungible token (“NFT”) economy as it relates to gaming, art & collectibles. Founded in 2013, Tapinator is headquartered in New York, with product development and marketing teams located in North America and Europe. Consumers can find high-quality mobile entertainment wherever they see the ‘T’ character logo, or at http://tapinator.com.

 

Background on Tapinator’s NFT Initiatives

 

As background, in January 2018, we concluded there was a significant future market opportunity for NFTs as it related to gaming, art and collectibles.  In February 2018, Tapinator announced the beta launch of BitPainting, a digital platform for collecting iconic art on the blockchain, and one of the very first NFT marketplaces.  The application was built on the Ethereum Platform and relies on our proprietary smART contracts.   At the time, we communicated our belief “that the $45 billion art market was ripe for disruption by blockchain technology through crypto-collectibles (e.g. NFTs) which will drive art sales via digital scarcity and will democratize fine art investment.”

 

In March of 2018 and in conjunction with Mego Games, we launched Darkwinds, an online fantasy based trading card game. We announced that a “feature of Darkwinds, as compared to other on-line card games, is that it runs on top of the Ethereum network. More specifically, all Darkwinds cards are non-fungible tokens (NFTs) or crypto-collectibles, a new standard for virtual objects where players have perpetual rights to sell, trade and give away their items, both within and outside of the game’s ecosystem.” Today, the game’s cards continue to be available to trade on third party NFT platforms such as OpenSea.

 

When we initiated these pioneering efforts, we recognized that the NFT market was in its infancy. We were extremely proud of the high quality of both of these products and that they were brought to market both cost-effectively and on schedule. Despite the quality of these applications, however, we were disappointed by the relatively small market size for both products at the time and the regulatory uncertainty surrounding crypto collectibles. Based on our experience with these initial launches, we concluded that the addressable market in 2018 was too nascent to generate significant near-term value for our shareholders.

 

On March 15, 2021, we publicly announced the following: “Today, we believe that the market for NFTs has finally arrived, despite the fact that we are still in the very early stages of the market’s development.  The recent $69 million record Beeple digital art sale at Christie’s and the $200+ million in sales to date of NBA Topshots digital moments are just two data points representing this exciting new era and opportunity for blockchain based digital art and branded collectibles.  While BitPainting was too early to market in 2018, we are confident that our vision was accurate.  Furthermore, the expertise that Tapinator acquired while building the application, as well as our study of the market for the past three years, are valuable assets that we are now leveraging as we develop a new NFT platform which we expect to announce later this month.”  Ilya Nikolayev, CEO of Tapinator, commented, “Current NFT marketplaces are extremely cluttered. For example, OpenSea indicates that it lists over 4 million items on its platform. We do not believe that another uncurated, NFT emporium is the future.  We do, however, believe there is significant opportunity within certain other areas of the NFT market. More specifically, we believe that the ability to offer curation and democratization of NFTs will provide significant utility to NFT consumers and can create significant shareholder value. We plan on announcing our upcoming NFT platform within the next several weeks via a landing page that will provide an overview of our upcoming product and allow visitors to request an invitation to join. We believe that we were one of the first and currently few public companies to operate within the NFT space and, accordingly, we are pleased to communicate our ongoing progress in this area to our growing shareholder base during these most exciting times. Although we cannot guarantee that our NFT initiatives will result in material monetization for Tapinator, we are excited to soon announce a platform that, we believe, reflects the need for curation and democratization within the space.”

 

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,” “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 expectation that NFT500 will launch this Summer with a preview companion mobile app planned for later this Spring, our expectation NFT500 will represent a premier collection of blue chip NFTs from top digital and traditional artists from around the world, our plan to launch a mobile application that will provide discovery access to the NFT500 collection to be followed by the NFT500 service that will provide customizable access to the collection through an exclusive subscription casting service, our expectation that both our casting and artist communities may participate in any potential long-term capital appreciation from the collection through the recently minted $NFT500 Token, our vision that in several years consumers with screens in their homes will be displaying NFT based digital art, our expectation that a substantial majority of these consumers will choose not to spend tens or hundreds of thousands of dollars on NFT collections but rather will utilize our NFT based subscription service to cast pieces from our collection onto their wall, our belief that the NFT market has finally arrived, our belief that BitPainting was too early to market in 2018 and our belief that our vision for the NFT market was accurate, our belief that there is significant opportunity within certain other areas of the NFT market, our belief that the ability to offer curation and democratization of NFTs will provide significant utility to NFT consumers and can create significant shareholder value, our belief that we were one of the first and currently few public companies to operate within the NFT space and our belief in our ongoing progress in the NFT area. 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 March 16, 2020 and as updated from time to time.

 

This press release does not constitute an offer to sell or an offer to buy any shares of Tapinator’s equity securities.

 

CONTACT:

Tapinator Investor Relations

https://ir.tapinator.com/

investor.relations@tapinator.com

(914) 930-6232

 

SOURCE:  Tapinator

Tapinator Announces 2020 Record Financial Results

– Revenues Increase 18% to $4.5 Million; Bookings* Increase 32% to $4.4 Million 

– Adjusted EBITDA* Increases 479% to $1.0 Million 

– Adjusted EBITDA* Margin Climbs to 23%

 

New York, NYFebruary 11, 2021 – Tapinator, Inc. (OTCPK: 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 period ended December 31, 2020, and the filing of its annual report for the years ended December 31, 2020 and 2019.  The annual report and financial statements may be found at http://www.otcmarkets.com/stock/TAPM/disclosure.  The results provided below replace, in its entirety, any guidance or projections previously issued by the Company.

 

For the year ended December 31, 2020, Tapinator achieved record revenue of approximately $4.5 million, record bookings* of approximately $4.4 million, net loss of approximately $548,000, and record adjusted EBITDA* of approximately $1.0 million.  The Company’s revenue, bookings* and adjusted EBITDA* represent year-over-year improvements of 18%, 32% and 479%, respectively.

 

For the quarter ended December 31, 2020, Tapinator achieved revenue of approximately $1.2 million, bookings* of approximately $1.1 million, net loss of approximately $416,000 and adjusted EBITDA* of approximately $335,000. The Company’s quarterly revenue and bookings* represent year-over-year changes of 55% and 35%, respectively.

 

*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 loss, resulting in adjusted EBITDA (a non-GAAP measure) for the relevant periods.

 

Financial Highlights

Quarter Ended Year Ended
December 31,   December 31,
2020 2019 % Ch. 2020 2019 % Ch.
GAAP Results:
Revenue $1,210,510 $782,970 55% $4,454,940 $3,760,322 18%
Operating Loss ($245,787) ($877,086) NM(1) ($345,467) ($2,375,606) NM(1)
Net Loss ($416,411) ($883,416) NM(1) ($547,499) ($2,379,792) NM(1)
Net Loss Per Share               -Basic & Diluted ($0.76) ($1.61) NM(1) ($0.99) ($4.33) NM(1)
Weighted avg. common shares outstanding – basic       551,005 549,958 0% 550,979          549,958 0%
Weighted avg. common shares outstanding – diluted 551,005 549,958 0% 550,979          549,958 0%
Cash and cash equivalents $206,039 $167,016 23% $206,039 $167,016 23%
Non-GAAP Results:
Bookings:
   Category Leading Games $880,655 $555,283 59% $3,457,568 $2,292,919 51%
   Rapid-Launch Games 177,435 228,889 -22% 932,554 1,031,930 -10%
Total Bookings $1,058,090 $784,172 35% $4,390,122 $3,324,850 32%
Adjusted EBITDA $334,921 ($37,631) NM(1) $1,017,511 $175,696 479%
AEBITDA Margin % 28% -5% 23% 5%
(1)   Percentage change not meaningful.

 

 

Ilya Nikolayev, CEO of Tapinator commented, “We had a very strong year in 2020. We continued to invest in our social casino games by both building new features and, in particular, expanding our Live Operations systems to drive increases in engagement and monetization. These systems are currently in place within Video Poker Classic and will make their way to our recently launched social casino game, Lucky Lotto, as well as our future titles. We see 2021 as characterized by the following:

 

  • Ongoing investment in Video Poker Classic as we further scale the property based on increasing marketing spend
  • Leveraging our Live Operations and social casino expertise to grow other social casino properties, with a current focus on our social lottery product, Lucky Lotto
  • Launching several new games, the first of which will be an idle resource management title that is a follow up to Crypto Trillionaire which we expect to launch in Q2 of this year.

 

Overall, we are more excited about the business now than we have ever been. Our existing games are performing well, we have built out a strong foundation in terms of Live Operations and feature systems that will be used across our key products, and we have a strong product pipeline of new games for 2021. We continue to believe that Tapinator is fundamentally and deeply undervalued and we have our heads down working diligently on behalf of all of our shareholders to grow and unlock this value in 2021 and beyond.”

 

Andrew Merkatz, President of Tapinator, also commented on the Company’s results, “We are extremely proud of the following operating accomplishments in 2020:

 

  • We achieved record annual revenue of approximately $4.5mm, representing annual growth of 18% year-over-year
  • We reported record annual Bookings* of approximately $4.4mm, representing annual growth of 32%
  • We reported annual Bookings* growth within our core Category Leading Games Business of 51%
  • Through a combination of top line growth and aggressive cost control, we reduced our net loss from approximately to $2.4mm in 2019 to approximately $500k in 2020
  • We reported record annual adjusted EBITDA* of approximately $1.0mm, representing annual growth of 479%
  • Our annual adjusted EBITDA* margin climbed to 23% in 2020, up from 5% in the previous year
  • We paid off our accounts receivable based line of credit in full during the third quarter
  • We finished 2020 with a strong and focused pipeline of new games to enter the market in 2021. We believe this pipeline represents valuable  future opportunity for our shareholders given the Company’s significant operating leverage

 

2020 was a tumultuous year as the COVID-19 pandemic affected businesses globally. Owing to our high preparedness for remote work, we were able to continue to operate throughout the pandemic with minimal disruption.  While the outbreak of the COVID-19 pandemic has negatively impacted most parts of the economy, the mobile gaming industry has been one of the few bright spots. Following initial governmental stay-at-home orders, consumer participation and engagement trends spiked, yielding significant growth in game downloads, engagement and revenue.  The rise in at-home entertainment has provided strong tailwinds to both Tapinator and the industry as a whole. Although the initial spike in engagement during the second quarter of 2020 has slowed, consumers are still engaging with mobile games more than pre-pandemic levels, which we believe indicates that a significant portion of revenue growth and engagement will be long-lasting.  We believe Tapinator stands to benefit from these longer term secular trends. As a seasoned operator within the massive and lucrative market for mobile gaming, we believe we are well positioned to continue to deliver strong growth and product leadership in the coming years.”

 

Current Outlook

 

We continue to have conviction regarding our Category Leading Games business, and specifically our focus on social casino games.  While we are not providing financial guidance at this time, we believe we are well positioned to deliver another year of strong company-wide revenue and bookings growth and solid adjusted EBITDA margins.

 

*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 Income, 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 and projected Bookings and adjusted EBITDA to the most directly comparable GAAP financial measures below.  Some limitations of Bookings and adjusted EBITDA are as follows:

 

  • Bookings does 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, acquisition-related transaction expenses, one-time financing expenses, contingent consideration fair value adjustments, share settlement expense and restructuring expense;
  • Adjusted EBITDA does not reflect income tax expense;
  • Adjusted EBITDA does not include other income or expense, which includes foreign exchange gains and losses and interest income or expense;
  • Adjusted EBITDA excludes depreciation and amortization of intangible assets and impairment of capitalized software.  Although depreciation and amortization and impairment of capitalized software are non-cash charges, the assets being depreciated and 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), Diluted Net Income (Loss) Per Share, Cash Flow from Operations, Operating Income (Loss) and our other financial results presented in accordance with GAAP.

 

Reconciliation of GAAP to Non-GAAP Results

 

Quarter Ended Year Ended
December 31, December 31,
2020 2019 2020 2019
Reconciliation of Revenue to Bookings:
Revenue $1,210,510 $782,969 $4,454,940 $3,760,322
Change in deferred revenue (152,420) 1,203 (64,818) (435,473)
Bookings $1,058,090 $784,172 $4,390,122 $3,324,849
Reconciliation of Net Loss                                         to Adjusted EBITDA:
Net loss ($416,411) ($883,416) ($547,499) ($2,379,792)
Interest expense, net 6,330 31,407 4,186
Impairment of capitalized software 374,428 114,171 374,428 114,171
Amortization of capitalized software development 127,285 153,420 493,141 647,705
One-time share settlement expense 170,625 170,625
Depreciation and amortization of other assets 752 1,115 3,307 5,552
Stock-based expense 78,242 347,838 379,139 1,560,962
One-time financing costs 222,911 112,963 222,911
Adjusted EBITDA $334,921 ($37,631) $1,017,511 $175,696

 

About Tapinator

 

Tapinator Inc. (OTC: TAPM) develops and publishes category leading games for mobile platforms, with a focus on the social casino genre. 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 and Solitaire Derby. Tapinator generates revenues through the sale of branded advertising and via consumer transactions, including in-app purchases and subscriptions. Founded in 2013, Tapinator is headquartered in New York, with product development and marketing teams located in North America and Europe. Consumers can find high-quality mobile entertainment wherever they see the ‘T’ character logo, or at http://tapinator.com.

 

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,” “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 expectation that we will launch an idle resource management title as a follow up to Crypto Trillionaire in Q2 of this year, our belief that our 2021 pipeline of new games represents valuable  future opportunity for our shareholders given the Company’s significant operating leverage, our belief that a significant portion of revenue growth and engagement will be long-lasting after the COVID-19 pandemic and our related belief that we will continue to benefit from these secular trends, our belief we are well positioned to continue to deliver strong growth and product leadership in the coming years and our belief we are well positioned to deliver another year of strong company-wide revenue and bookings growth and solid adjusted EBITDA margins. 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 March 16, 2020 and as updated from time to time.

 

CONTACT:

Tapinator Investor Relations

investor.relations@tapinator.com

914.930.6232

 

SOURCE:  Tapinator

Tapinator Reports Q2 2020 Financial Results
  • Highest Quarterly Bookings,* Adjusted EBITDA* and Earnings Performances in Tapinator History
  • Bookings* Increase 60% Year-Over-Year to $1.3mm
  • Company Records Q2 Net Income of $64,000 and Earnings Per Share of $0.12
  • Adjusted EBITDA Increases 7% Year-Over-Year to $314k

 

New York, NY – August 10, 2020Tapinator, Inc. (OTCPK: TAPM) (“Tapinator,” the “Company,” “we,” “our” or “us”), a developer and publisher of category leading apps for mobile platforms, today announced unaudited financial results for the three and six months ended June 30, 2020 and 2019, and the filing of its quarterly report for the period ended June 30, 2020.  The quarterly report and financial statements may be found at http://www.otcmarkets.com/stock/TAPM/disclosure.  The results provided below replace, in its entirety, any guidance or projections previously issued by the Company.

 

For the three months ended June 30, 2020, Tapinator achieved revenue of approximately $1,174,000, bookings* of approximately $1,258,000, net income of approximately $64,000, and adjusted EBITDA* of approximately $313,000.  The Company’s revenue, bookings* and adjusted EBITDA* represent year-over-year changes of (13%), 60% and 7%, respectively.

 

For the six months ended June 30, 2020, Tapinator achieved revenue of approximately $2,088,000, bookings* of approximately $2,235,000, net loss of approximately $204,000, and adjusted EBITDA* of approximately $403,000.  The Company’s revenue, bookings* and adjusted EBITDA* represent year-over-year changes of (3%), 28% and 78%, respectively.

 

*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 (loss), resulting in positive adjusted EBITDA (a non-GAAP measure) for the relevant periods.

 

Financial Highlights

 

Three Months Ended
June 30 Change
2020 2019 (%)
GAAP Results:
Revenue $1,174,364 $1,345,595 -13%
Operating Income (Loss) $80,543 ($268,755) NM(1)
Net Income (Loss) $63,706 ($265,191) NM(1)
Diluted Net Income (Loss) Per Share $0.12 ($0.48) NM(1)
Non-GAAP Results:
Bookings:
   Category Leading Apps $986,428 $566,462 74%
   Rapid-Launch Games 271,505 219,236 24%
Total  Bookings $1,257,933 $785,698 60%
Adjusted EBITDA $313,156 $293,237 7%
 
Six Months Ended

June 30

 

Change

2020 2019 (%)
GAAP Results:
Revenue $2,088,220 $2,158,650 -3%
Operating Income (Loss) ($173,237) ($926,686) NM(1)
Net Income (Loss) ($203,497) ($924,894) NM(1)
Diluted Net Income (Loss) Per Share ($0.37) ($1.68) NM(1)
Non-GAAP Results:
Bookings:
   Category Leading Apps $1,701,087 $1,210,741 40%
   Rapid-Launch Games 534,155 541,633 -1%
Total  Bookings $2,235,242 $1,752,374 28%
Adjusted EBITDA $403,377 $226,172 78%
 
1 Percentage change not meaningful.

 

Andrew Merkatz, President & CFO of Tapinator, commented on the Company’s results, “We are very pleased with the following accomplishments during the second quarter of 2020:

 

  • We delivered our best bookings, net income, earnings per share, and adjusted EBITDA in Tapinator history, driven by our LiveOps which performed well throughout the quarter.
  • We reported quarterly bookings* of approximately $1.3mm, representing year-over-year growth of 60%.
  • We reported, within our core Category Leading Apps business, quarterly bookings* of approximately $1.0mm, representing year-over-year growth of 74%.
  • We continued the significant cost control measures that we implemented in the first quarter of this year. These measures contributed to our achievement of quarterly net income of approximately $64,000 and adjusted EBITDA* of approximately $313,000, which compare, respectively, to a net loss of approximately ($265,000) and adjusted EBITDA* of approximately $293,000 recorded in Q2 2019.
  • We achieved adjusted EBITDA margin of 27% during the quarter, performance that we believe is indicative of the strong operating leverage inherent in our business.

 

The mobile game industry is expected to generate $100 billion in revenue in 2020, up from $86 billion in 2019, according to App Annie, the mobile data and analytics researcher.  Based on the report, games are now 72% of all spending in the app stores. Mobile games saw 25% more spending than all other games combined in 2019. Mobile game spending was 2.4 times the spending for PC and Mac games, and 2.9 times spending for home game consoles in 2019.  The growth rate of the social casino market, the subset of the market that Tapinator focuses on, is estimated at 5% over the next four years and is projected to reach $6.8 billion by 2023, according to market research firm Eilers & Krejcik. Tapinator has become a seasoned operator in this massive and lucrative market, and we believe we are well positioned to continue to deliver strong growth and product leadership in the coming years.”

 

Ilya Nikolayev, CEO of Tapinator also commented, “We are proud of Video Poker Classic and remain confident in the game’s status as the best-in-class video poker product on mobile, from both a feature and quality perspective. We continue to enhance the game and, in Q2, we introduced Daily Goals and Rewards, a Stamp Card (Loyalty) System, Player Statistics and other features. Also, we launched additional LiveOps events and IAP offers, which we will continue to do on an ongoing basis. Later this quarter, we will be introducing a Tournaments feature, which we are very excited about. Every week, we will run two Tournaments, each for a different variant of video poker, and will reward virtual currency prizes to top leaderboard players. This feature is grounded in video poker tournaments that occur in a real money setting and, we believe, will be well received by both serious and casual players alike. Events are a proven mechanism to increase engagement and monetization within top grossing games and, we believe, will contribute meaningfully to an uptick in DAUs for Video Poker Classic.

 

Outside of Video Poker Classic, we would like to provide an update on two other products: SPEED – Heads Up Solitaire and our upcoming new social casino product. SPEED launched at the end of April, was featured by Apple and was well received by players with a 4.5 out of 5.0 review score. However, we believe that we need to achieve higher player lifetime values in order to scale the product from a paid marketing perspective. With the next version of the game, launched late last week, we have introduced in-depth systems for Chests, Premium Items, and a Secondary Currency. Collectively, we believe this will improve the game’s ARPDAU and will allow us to bring more players into the game via paid marketing.

 

Finally, we will launch a new social casino product later this year. This product follows our overall thesis of targeting areas of the social casino space that are evergreen and proven outside of mobile yet are underrepresented within the major mobile platforms. This product targets an audience with similarities to our Video Poker Classic demographic and, accordingly, we believe that there will be cross promotion opportunities with our existing high-value userbase.”

 

Current Outlook

 

It is too early to quantify and distinguish the long-term impact of the coronavirus pandemic for our business.  In our games, we saw an increase in the number of downloads as well as user engagement and also saw an uptick in revenues in March and April.  Despite this uptick, we believe the pandemic creates significant uncertainty regarding the longer term impact on consumer and advertising spending within mobile apps.  Despite this uncertainty, we continue to have strong conviction regarding our Category Leading Apps business, and specifically our focus on social casino games. The strategic changes we implemented in 2017-2018, shifting from Rapid-Launch Games to Category Leading Apps, and the initiatives we began in 2019 to focus on LiveOps both continue to pay off. We have also seen positive results from the cost containment measures that we undertook during the first quarter of 2020 that we believe will continue to yield improved operating results moving forward.

 

While we are not providing financial guidance at this time, we continue to believe we are well positioned to again deliver strong company-wide revenue and bookings growth in 2020. We also anticipate recording significantly improved adjusted EBITDA and significantly narrowed net loss in 2020 as compared to 2019.   Based on the Company’s strong financial performance over the past two quarters, the repeatable nature of the Company’s Category-Leading App revenues, its strong product portfolio, its significant operating leverage, and its attractive market positioning at the intersection of mobile entertainment and online casino style gaming, we continue to believe Tapinator is currently fundamentally and deeply undervalued.  The Company’s management and independent board of directors remain committed to working diligently and prudently on behalf of all of its shareholders to both grow and unlock this value in the second half of 2020 and beyond.

 

*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 Income, 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. 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 adjusted revenue, 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 and analysts because it allows for greater transparency with respect to key financial metrics we use in making operating decisions and allows comparability to other businesses within the mobile gaming sector. Below, we have provided reconciliations between our historical bookings and adjusted EBITDA to the most directly comparable GAAP financial measures below.  Some limitations of bookings and adjusted EBITDA are as follows:

 

  • Bookings does not reflect that we defer and recognize online game revenue over the estimated life of our durable virtual goods;
  • Adjusted EBITDA does not include the impact of stock-based expense, impairment of previously capitalized software or intangible assets previously acquired, acquisition-related transaction expenses, one-time financing expenses, contingent consideration fair value adjustments and restructuring expense;
  • Adjusted EBITDA does not reflect income tax expense;
  • Adjusted EBITDA does not include other income or expense, which includes foreign exchange gains and losses and interest income or expense;
  • Adjusted EBITDA excludes depreciation and amortization of intangible assets and impairment of capitalized software.  Although depreciation and amortization and impairment of capitalized software are non-cash charges, the assets being depreciated and 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), Diluted Net Income (Loss) Per Share, Cash Flow from Operations, Operating Income (Loss) and our other financial results presented in accordance with GAAP.

 

Reconciliation of GAAP to Non-GAAP Results

 

Three Months Ended Six Months Ended
June 30 June 30
2020 2019 2020 2019
Reconciliation of Revenue to Bookings:
Revenue $1,174,364 $1,345,595 $2,088,219 $2,158,650
Change in deferred revenue 83,568 (559,897) 147,023 (406,276)
Bookings $1,257,932 $785,698 $2,235,242 $1,752,374
 

 

Reconciliation of Net Income (Loss)                                         to Adjusted EBITDA:
Net income (loss) $63,706 ($265,191) ($203,497) ($924,894)
Interest expense (income), net 16,837 (3,565) 30,260 (1,792)
Income tax
Amortization of capitalized software development 123,728 156,303 239,808 341,002
Depreciation and amortization of other assets 879 1,316 1,804 3,106
Stock-based expense 91,437 404,374 222,039 808,750
One-time financing costs 16,571 0 112,963 0
Adjusted EBITDA $313,158 $293,237 $403,377 $226,172

 

About Tapinator

 

Tapinator Inc. (OTC: TAPM) develops and publishes category leading apps for mobile platforms, with a focus on social casino games. 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 and Solitaire Derby. Tapinator generates revenues through the sale of branded advertising and via consumer transactions, including in-app purchases and subscriptions. Founded in 2013, Tapinator is headquartered in New York, with product development and marketing teams located in North America, Europe and Asia. Consumers can find high-quality mobile entertainment wherever they see the ‘T’ character logo, or at http://tapinator.com.

 

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,” “plan,” “feel,” “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 belief we are well positioned to continue to deliver strong growth and product leadership in the coming years, our belief that the new Tournaments feature of Video Poker Classic will be well received by both serious and casual players and that it will contribute meaningfully to an uptick in DAUs for Video Poker Classic, our belief that the next version of SPEED – Heads Up will improve the game’s ARPDAU and will allow us to bring more players into the game via paid marketing, our belief that our to be launched social casino product will benefit from cross promotion opportunities with our existing high-value userbase, our belief that we will continue to yield improved operating results, our belief we are well positioned to again deliver strong company-wide revenue and bookings growth in 2020, our anticipation that we will record significantly improved adjusted EBITDA and significantly narrowed net loss in 2020 as compared to 2019 and our belief that we are currently fundamentally and deeply undervalued. 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 filed with the OTC Markets as provided here: https://backend.otcmarkets.com/otcapi/company/financial-report/241817/content.

 

CONTACT:

Tapinator Investor Relations

investor.relations@tapinator.com

914.930.6232

 

SOURCE:  Tapinator

Tapinator Games Surpass 500 Million Player Downloads

Company Launches New Version of Video Poker Classic

 

New York, NYDecember 12, 2019 – Tapinator, Inc. (“Tapinator,” the “Company,” “we,” “our” or “us”) (OTCQB: TAPM), a developer and publisher of category leading apps for mobile platforms, with a focus on social casino games, today announced that it has released a new version of its flagship mobile video poker game, Video Poker Classic.  In addition, the Company recently recorded a significant milestone of surpassing 500 million cumulative player downloads across its entire game portfolio.

 

Video Poker Classic is a leading mobile video poker game across iOS and Google Play platforms. On iOS alone, the game as achieved a 4.7 out of 5.0 review score based on over 38,000 player reviews. This most recent version of the game introduces significant improvements, both from a player and backend perspective.

 

For players, we have introduced a Progressive Mega Jackpot that creates linkage between bets across all devices and awards a royal flush hand with a special Progressive Mega Jackpot, a feature we believe is not currently available in any other mobile video poker game. From a backend perspective, we continue to improve our live operations capabilities and are now able to segment players into groups based on various criteria and target each group with unique offers and re-engagement incentives. Over time, we expect that enhancements in our live operations capabilities will have a significant positive impact on both daily active users and average revenue per daily active user for all of our Category Leading Apps.

 

“The recent update to Video Poker Classic is an important one. With millions of Video Poker Classic hands being played every day, we are excited to report that we are seeing many Progressive Jackpot winners on a daily basis. Also, we are pleased to communicate that we have now exceeded 500 million cumulative player downloads of our games since Tapinator was founded just six years ago. We are proud to join an elite group of companies that have exceeded the 500 million player download mark,” stated Ilya Nikolayev, Tapinator’s Chief Executive Officer.

 

About Tapinator

Tapinator Inc. (OTCQB: TAPM) develops and publishes category leading apps for mobile platforms, with a focus on social casino games. 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 and Solitaire Dash. Tapinator generates revenues through the sale of branded advertising and via consumer transactions, including in-app purchases and subscriptions. Founded in 2013, Tapinator is headquartered in New York, with product development and marketing teams located in North America, Europe and Asia. Consumers can find high-quality mobile entertainment wherever they see the ‘T’ character logo, or at http://tapinator.com.

 

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,” “plan,” “feel,” “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 expectation that our recent live operations improvements will have a significant positive impact on both daily active users and average revenue per daily active user for all of our Category Leading Apps. 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 Annual Report on Form 10-K for the year ended December 31, 2018 and its Quarterly Reports on Form 10-Q, including but not limited to the discussion under “Risk Factors” therein, which the Company filed with the SEC and may be viewed at http://www.sec.gov.

 

CONTACT:

Tapinator Investor Relations

investor.relations@tapinator.com

914.930.6232

 

SOURCE:  Tapinator, Inc.

Tapinator Appoints Two Additional Independent Directors

New York, NY – December. 2, 2019 – Tapinator, Inc. (“Tapinator,” the “Company,” “we,” “our” or “us”) (OTCQB: TAPM), a developer and publisher of category leading apps for mobile platforms, with a focus on social casino games, today announced that our Board of Directors has appointed Spencer G. Feldman and Desmond Glass to the Company’s Board of Directors.   Both Messrs. Feldman and Glass qualify as “independent” directors under the rules and regulations of the Nasdaq Stock Market and the Securities and Exchange Commission.

 

The Company intends to appoint Mr. Feldman to be a member of its Audit and Compensation Committees and as Chairman of its Nominating and Corporate Governance Committee, which the Board of Directors plans to establish in the near future.

 

Mr. Feldman is a partner in the New York City law firm of Olshan Frome Wolosky LLP, where he has been a member of its corporate and securities group since September 2013. He was previously a principal shareholder in the law firm Greenberg Traurig LLP, practicing in its corporate and securities department, which he joined in 1993. Mr. Feldman has more than 30 years of experience practicing corporate and securities law and concentrates his practice in the areas of initial public offerings, secondary offerings, shelf takedowns, PIPEs and other private financings, and mergers & acquisitions with public companies, with an emphasis on representing computer, Internet, media and other technology-driven companies.

 

The Company intends to appoint Mr. Glass to be Chairman of its Audit Committee and as a member of its Compensation Committee and Nominating and Corporate Governance Committee.

 

Since November 2017, Mr. Glass has served as Group Chief Financial Officer and company Secretary at RWS Holdings PLC (RWS.L), an AIM-listed multinational language and professional services provider, where he is responsible for shaping and executing upon the financial strategy of the business. From April 2008 until October 2017, Mr. Glass served as the Chief Financial Officer of GAN PLC, a provider of enterprise online gaming software, operational support services and online game content development services to the casino industry. Mr. Glass is a dynamic and hands-on Chief Financial Officer, with proven international leadership experience gained in both public and private venture backed companies, who brings a rare blend of strategic and commercial acumen coupled with a pragmatic and open leadership style. Prior to his time at RWS Holdings PLC and GAN PLC, Mr. Glass held positions at Evexar Limited, Rodale International Limited, ABC Inc., and Deloitte, among others. Mr. Glass received his Bachelor of Commerce from University College Dublin, his ACA from the Institute of Chartered Accountants in Ireland, and his MBA from Imperial College London.

 

Ilya Nikolayev, Tapinator’s Chairman and Chief Executive Officer, stated, “We are thrilled to welcome both Spencer and Desmond to Tapinator’s Board of Directors.  They are seasoned professionals who each bring unique and complementary skill sets to the Company.   As we work toward our goal of achieving an exchange listing in 2020, we are committed to continuously improving our corporate governance, and enhancing Tapinator’s team via select additions of high-caliber individuals such as Messrs. Feldman and Glass.”

 

About Tapinator
Tapinator Inc. (OTCQB: TAPM) develops and publishes category leading apps for mobile platforms, with a focus on social casino games. Tapinator’s library includes more than 300 titles that, collectively, have achieved over 495 million mobile downloads, including notable properties such as Video Poker Classic and Solitaire Dash. Tapinator generates revenues through the sale of branded advertising and via consumer transactions, including in-app purchases and subscriptions. Founded in 2013, Tapinator is headquartered in New York, with product development and marketing teams located in North America, Europe and Asia. Consumers can find high-quality mobile entertainment wherever they see the ‘T’ character logo, or at http://tapinator.com.

 

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,” “plan,” “feel,” “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 goal of achieving an exchange listing in 2020.  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 Annual Report on Form 10-K for the year ended December 31, 2018 and its Quarterly Reports on Form 10-Q, including but not limited to the discussion under “Risk Factors” therein, which the Company filed with the SEC and may be viewed at http://www.sec.gov.

SOURCE Tapinator

Tapinator Reports Third Quarter 2019 Financial Results

— Revenue year-to-date grew 29% year-over-year to $3.0mm

— Bookings year-to-date decreased 5% year-over-year to $2.5mm

— Adjusted bookings year-to-date grew 16% year-over-year to $2.5mm

— Adjusted Category Leading Apps bookings year-to-date grew 108% year-over-year to $1.7mm

— Net loss year-to-date decreased 28% year-over-year to $1.5mm

— Adjusted EBITDA year-to-date increased 50% year-over-year to $213k

 

New York, NY – November 14, 2019 – Tapinator, Inc. (“Tapinator,” the “Company,” “we,” “our,” or “us”) (OTCQB: TAPM), a developer and publisher of category leading apps for mobile platforms, with a focus on social casino games, today announced financial results for the three and nine months ended September 30, 2019, and the filing of its quarterly report on Form 10-Q for the period ended September 30, 2019.  The quarterly report may be found at http://www.sec.gov.  The results provided below replaces, in their entirety, any guidance or projections previously issued by the Company.

 

Ilya Nikolayev, Tapinator’s Chief Executive Officer, stated, “The strong year-to-date growth of our Category Leading Apps bookings, on both an absolute and as adjusted basis, speaks to the momentum of our social casino games, such as Video Poker Classic, and, we believe, is indicative of the future growth opportunities presented by these titles. As we continue to invest in live operations for these games, we believe that we have a clear pathway to achieving greater scale with our existing products as well as launching and growing two new social casino products in 2020.”

 

Third Quarter 2019 Financial Highlights (unaudited):
Three Months Ended Nine Months Ended
Sept. 30, 2019 Sept. 30, 2018 Sept. 30, 2019 Sept. 30, 2018
GAAP Results:
Revenue $818,703 $681,337 $2,977,353 $2,303,698
Net Loss ($571,482) ($607,999) ($1,496,376) ($2,080,931)
Diluted Net Loss Per Share ($0.01) ($0.01) ($0.02) ($0.02)
Non-GAAP Results:*
Bookings:
   Category Leading Apps $526,896 $787,064 $1,737,637 $1,336,948
   Rapid-Launch Games $261,408 $300,677 $803,041 $1,350,751
Total Bookings $788,304 $1,087,741 $2,540,678 $2,687,699
Adjusted Bookings:**
    Category Leading Apps, as adjusted $526,896 $287,064 $1,737,637 $836,947
    Rapid-Launch Games $261,408 $300,677 $803,041 $1,350,751
Total Adjusted Bookings $788,304 $587,741 $2,540,678 $2,187,699
Adjusted EBITDA ($12,846) ($27,237) $213,327 $142,158

 

*A table has been included later 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 loss, resulting in adjusted EBITDA (a non-GAAP measure) for the relevant periods.

 

**As adjusted to remove the effect of bookings recorded pursuant to one-time upfront payments that we received in connection with a 2018 software license agreement ( “Non-Recurring Bookings”) whereby we granted to a third party exclusive, worldwide rights to localize, publish, distribute and operate the Company’s Solitaire Dash mobile game (the “SD License Agreement”).  A table has been included later in this press release with non-GAAP adjustments to the Company’s Bookings (a non-GAAP measure) resulting in Adjusted Bookings (also a non-GAAP measure).

 

Strategy

In early 2017, we began a major strategic shift to focus more of our investment and management resources into our Category Leading Apps business and, more specifically, into the social-casino genre. We believe the potential size, quality and sustainability of revenues and earnings from this business is significantly greater than that of our legacy Rapid-Launch Games business. We completed this shift during the fourth quarter of 2018 and we are now focused on developing and operating these Category Leading Apps, primarily within the social-casino genre.

 

Our goal for our Category Leading Apps business is to develop a small number of core franchise titles, primarily within the social-casino genre, that can achieve lifespans of at least five to ten years, and where we can grow these titles into sustainable market leaders within their respective product categories. In order to accomplish this, we are working to achieve customer lifetime values that exceed customer acquisition cost, at scale. To date, we have been able to achieve this, at certain customer volumes, for two products: Video Poker Classic and Solitaire Dash. We seek to build a valuable portfolio of these core franchise titles that can represent repeatable, stackable and long-term revenue streams for us.

 

Our Growth Opportunities

 

We believe that we have several promising growth opportunities:

 

  • Existing Games: We are continuously investing in and growing our current games by enhancing their functionality and delivering fresh content, improving our monetization and marketing engines to improve player engagement, increase conversion of free players to paying players and drive per-player monetization. As we continue to develop our games, we believe we will be able to further monetize our existing user base and attract new players. With access to additional marketing capital, we believe there is significant opportunity to scale our existing games as we increase market penetration for these titles.
  • New Games: We intend to continue to capitalize on our ability to build successful social-casino games and evergreen apps by introducing new titles that appeal to specific audiences and offer highly differentiated, best-in-class experiences.
  • Live Operations: We use live operations, or live ops, to create and execute events and promotions that are designed to maximize retention, revenue and player happiness. We view live ops as having four key components: content delivery, offers/promotions, events and product improvements. Content delivery allows us to provide new content (for example, new levels) to our players. Offers/promotions allow us to tailor both free and paid virtual currency and other offers to each player, depending on that player’s past history with the game. Events allows us to provide content in the game that is available for a limited time such as a theme that is unlocked for a specific holiday. Product improvements is a continuous process where we analyze each game’s metrics to invest in existing functionality and new feature development.
  • Strategic Acquisitions: We expect to pursue select strategic acquisitions to augment our organic top line growth and continue to build out our app portfolio. We plan to seek small, entrepreneurial teams that are focused on a single evergreen product. We expect that we will specifically target products that operate at sub-scale or that otherwise have not been optimized to achieve their full monetization potential.

 

Current Outlook

 

Our conviction regarding our social-casino focused, Category Leading Apps business has strengthened during 2019. We delivered year-over-year bookings growth of 30% within this business during the first nine months of this year. When adjusting for bookings recorded in the previous period in connection with one-time upfront payment that we received pursuant to the SD License Agreement, we delivered year-over-year bookings growth in excess of 100% within this business during the first nine months of this year. Based on the strength of this performance and the growth opportunities discussed above, we believe we are well positioned to continue to deliver solid bookings growth in the years ahead. We expect this growth to be driven by our seasoned franchises such as Video Poker Classic and Solitaire Dash, combined with recently launched titles such as Crypto Trillionaire and My Horoscope, and from our new game pipeline. We are particularly excited about our upcoming launch of the latest update to Video Poker Classic in November 2019. This significant update features new progressive jackpot functionality along with expanded Live Ops capabilities. We believe that both features will have a positive impact on retention and monetization, as we continue to invest in and scale Video Poker Classic into 2020.

 

In terms of upcoming game launches, Castle Builder, our new social-casino title, is currently in soft-launch in select international markets and features a slot mechanic, with innovative metagame systems that have been adapted from similar systems used in real money gaming. The title is made possible through Tapinator’s recent licensing deal with a major European real-money slots developer. The real-money version of the product is currently a top performing slot game across over 200 online casinos in a number of European countries. While we previously planned to launch this title globally during the fourth quarter of 2019, we have decided to delay launch until the first quarter of 2020 and instead focus our development and marketing resources for the remainder of 2019 on our already live applications.

 

Looking forward to 2020, we are actively seeking to add to our portfolio of social-casino titles through both organic product development and via selective publishing or acquisition opportunities. We are currently developing one such title that is expected to be released during the first quarter of 2020.

 

*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 Net Loss, 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 and projected bookings and adjusted EBITDA to the most directly comparable GAAP financial measures below.  Some limitations of bookings and adjusted EBITDA are as follows:

 

  • Bookings does 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 intangible assets previously acquired, acquisition-related transaction expenses, contingent consideration fair value adjustments and restructuring expense;
  • Adjusted EBITDA does not reflect income tax expense;
  • Adjusted EBITDA does not include other income or expense, which includes foreign exchange gains and losses and interest income or expense;
  • Adjusted EBITDA excludes depreciation and amortization of intangible assets and impairment of capitalized software. Although depreciation and amortization and impairment of capitalized software are non-cash charges, the assets being depreciated and 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), Diluted Net Income (Loss) Per Share, Cash Flow from Operations, Operating Income (Loss) and our other financial results presented in accordance with GAAP.

 

Reconciliations of GAAP to Non-GAAP Results and Other Non-GAAP Reporting Adjustments:
Three Months Ended Nine Months Ended
Sept. 30, 2019 Sept. 30, 2018 Sept. 30, 2019 Sept. 30, 2018
          Reconciliation of Revenue to Bookings:
Revenue $818,703 $681,336 $2,977,353 $2,303,698
Change in deferred revenue ($30,399) $406,405 ($436,675) $384,001
Bookings $788,304 $1,087,741 $2,540,678 $2,687,699
 

Reconciliation of Bookings to

Adjusted Bookings:

 Bookings $788,304 $1,087,741 $2,540,678 $2,687,699
 Non-Recurring Bookings ($500,000) ($500,000)
 Adjusted Bookings $788,304 $587,741 $2,540,678 $2,187,699

 

 

Three Months Ended Nine Months Ended
Sept. 30, 2019 Sept. 30, 2018 Sept. 30, 2019 Sept. 30, 2018
Reconciliation of Net Loss to Adjusted EBITDA:
 Net loss ($571,482) ($607,999) ($1,496,376) ($2,080,931)
 Interest expense, net (352) (1,136) (2,144) 133,465
 Income taxes 775 4,575
 Amortization of capitalized software development 153,283 166,176 494,285 437,199
 Depreciation and amortization of other assets 1,331 2,230 4,437 7,085
 Amortization of debt discount 187,876
 Stock-based expense 404,374 412,717 1,213,125 1,452,889
 Adjusted EBITDA ($12,846) ($27,237) $213,327 $142,158

 

About Tapinator
Tapinator Inc. (OTCQB: TAPM) develops and publishes category leading apps for mobile platforms, with a focus on social casino games. Tapinator’s library includes over 300 titles that, collectively, have achieved over 495 million mobile downloads, including notable properties such as Video Poker Classic and Solitaire Dash. Tapinator generates revenues through the sale of branded advertising and via consumer transactions, including in-app purchases and subscriptions. Founded in 2013, Tapinator is headquartered in New York, with product development and marketing teams located in North America, Europe and Asia. Consumers can find high-quality mobile entertainment wherever they see the ‘T’ character logo, or at http://tapinator.com.

 

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,” “plan,” “feel,” “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 belief that we are very well situated to achieve continued revenue and bookings growth, our belief that the potential size, quality and sustainability of revenues and earnings from the Category Leading Apps business is significantly greater than our legacy Rapid-Launch Games business, our belief that our year-to-date revenue and bookings growth of our social casino games and our seasoned franchises titles, such as Video Poker Classic and Solitaire Dash, is indicative of the future growth opportunities by these titles, our belief that we have a clear pathway to achieving greater scale with our existing products as well as launching and growing two new social casino products in 2020, our goal for our Category Leading Apps business to develop a small number of core franchise titles that can achieve lifespans of at least five to ten years and grow into sustainable market leaders and that can represent repeatable, stackable and long-term revenue streams for us, our belief that the potential size, quality and sustainability of revenues and earnings from the Category Leading Apps business is significantly greater than that of our legacy Rapid-Launch Games business, our belief  that we will be able to further monetize our existing user base and attract new players and our intent to continue to capitalize on our ability to build successful social-casino games and evergreen apps by introducing new titles that appeal to specific audiences and offer highly differentiated, best-in-class experiences.  Forward-looking statements in this release involve substantial risks and uncertainties that could cause the development and monetization of our mobile games, future results, performance or achievements to differ significantly from those expressed or implied by the forward-looking statements. 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 Annual Report on Form 10-K for the year ended December 31, 2018, including but not limited to the discussion under “Risk Factors” therein, which the Company filed with the SEC and may be viewed at http://www.sec.gov.

 

SOURCE Tapinator, Inc.

Tapinator, Inc. Reports Second Quarter 2019 Financial Results
  • Revenue grew 83% year-over-year to $1.3mm
  • Category Leading Apps Revenue grew 282% year-over-year to $1.1mm
  • Bookings grew 9% year-over-year to $967k
  • Category Leading Apps Bookings grew 101% year-over-year to $566k
  • Net loss decreased 52% year-over-year to $265k
  • Adjusted EBITDA increased 2,781% year-over-year to $293k

 

 

New York, NYAugust 13, 2019 – Tapinator, Inc. (OTCQB: TAPM), a developer and publisher of category leading apps for mobile platforms, with a significant emphasis on social casino games, today announced financial results for the three and six months ended June 30, 2019, and the filing of its quarterly report on Form 10-Q for the period ended June 30, 2019.  The quarterly report may be found at http://www.sec.gov.  The results provided below replaces, in their entirety, any guidance or projections previously issued by the Company.

 

Ilya Nikolayev, Tapinator’s Chief Executive Officer, stated, “The Company had a very strong second quarter with solid company-wide Bookings growth led by our social-casino focused, Category Leading Apps. We now have a solid base of these products from which we plan to continue to expand via our strategy of developing select, best-in-class mobile software applications with a clear focus on the social-casino genre.”

 

First Quarter 2019 Financial Highlights (unaudited):

 

 

Three Months Ended Six Months Ended
       Jun. 31, 2019 Jun. 31, 2018  Jun. 31, 2019 Jun. 31, 2018
GAAP Results:
Revenue $1,345,595 $733,673 $2,158,650 $1,622,361
Net Loss ($265,191) ($557,052) ($924,894) ($1,472,932)
Diluted Net Loss Per Share $0.00 ($0.01) ($0.01) ($0.02)
Cash $509,905 $1,340,296 $509,905 $1,340,296
Non-GAAP Results:*
Bookings:
    Category Leading Apps $566,462 $280,467 $1,210,741 $549,884
    Rapid-Launch Games $219,236 $436,413 $541,633 $1,050,074
Total $785,698 $716,880 $1,752,374 $1,599,958
Adjusted EBITDA $293,239 $10,180 $226,172 $170,297

*A table has been included later 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 loss, resulting in adjusted EBITDA (a non-GAAP measure) for the relevant periods.

 

Andrew Merkatz, President and Chief Financial Officer of Tapinator commented on the Company’s results. “We are very proud of our operating results for the first half of 2019. Our previous strategic decision to focus on Category Leading Apps is now paying beginning to pay off in the form of solid Revenue, Bookings and adjusted EBITDA growth.  As we look out over the next 12 months, we believe we are very well situated to achieve continued Revenue and Bookings growth. Over the last year, we have significantly improved both the product and earnings quality of our core mix of apps.  We are now positioned to invest more heavily into these existing products, while we selectively develop new applications with significant potential to enhance our portfolio.”

 

 

Strategy

In early 2017, we began a major strategic shift to focus more of our investment and management resources into our Category Leading Apps business and more specifically into the social-casino genre. We believe the potential size, quality and sustainability of revenues and earnings from this business is significantly greater than that of our legacy Rapid-Launch Games business. We completed this shift during the fourth quarter of 2018 and we are now focused on developing and operating these Category Leading Apps, with a significant focus on the social-casino genre. In 2018, the revenue for the social casino market reached $5.2 billion, according to Eilers & Krejcik. The social casino market grew 10.9% year-on-year in the final quarter of 2018 according to the same report. The larger competitors in this market include SciPlay (Nasdaq: SCPL), Zynga (Nasdaq: ZNGA), Playtika (acquired by Giant Interactive for $4.4 billion in 2016) and Murka Entertainment (acquired by the Blackstone Group in 2019). These companies have achieved success by (1) focusing on the most well established social casino game types (e.g., slots, bingo and multiplayer poker) and (2) focusing on improving production values, running live ops, and adding content to their games rather than gameplay innovation. We believe this creates market opportunity for several winning strategies. First, with games such as Video Poker Classic, we have focused on niche casino game types that are not dominated by large competitors yet, nonetheless, have significant player followings. We believe similar niche opportunities continue to exist. Second, with the upcoming launch of Castle Builder, our new slots title, we believe that applying gameplay innovation to slots, an area that otherwise offers sparse differentiation between games, can result in a highly sustainable and successful product. Based on the previous success of indie developer Moon Active’s Coin Master, which, according to Think Gaming, has achieved $75 million in annual revenue, we are confident that the slots area is ripe for gameplay innovation.

 

Our goal for our Category Leading Apps business is to develop a small number of core franchise titles, primarily within the social-casino genre, that can achieve lifespans of at least five to ten years, and where we can grow these titles into sustainable market leaders within their respective product categories. In order to accomplish this, we are working to achieve customer LTVs that exceeds customer acquisition cost, at scale. To date, the Company has been able to achieve this, at certain customer volumes, for three products: Video Poker Classic, Crypto Trillionaire and Solitaire Dash. We seek to build a valuable portfolio of these core franchise titles which can represent repeatable, stackable and long term revenue streams for Tapinator.

 

Current Outlook

Our conviction regarding our social-casino focused, Category Leading Apps business has strengthened during 2019. We delivered year-over-year Bookings growth in excess of 100% within this business during the first two quarters of this year. Based on the strength of this performance, we are now targeting company-wide Bookings growth for 2019 in the range of 8%-12%, and Category Leading Apps Bookings growth in excess of 50%. This growth is expected to be derived from our seasoned franchises such as Video Poker Classic and Solitaire Dash, combined with recently launched titles such as Crypto Trillionaire and My Horoscope, and from Castle Builder, our new social-casino title that we plan to launch globally during the fourth quarter of 2019. Castle Builder features a slot mechanic, with innovative metagame systems that have proven their success in the world of real money gaming. The title is made possible through Tapinator’s recent licensing deal with a major European real-money slots developer. The real-money version of the product is currently a top performing slot game across 200+ online casinos in a number of European countries. Looking forward to later this year and into 2020, we are actively seeking to add to our growing portfolio of social-casino titles through organic product development, and via selective publishing and acquisition opportunities.  We expect to make further announcements regarding these product initiatives in the coming months.

 

*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 Income, 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 and projected Bookings and adjusted EBITDA to the most directly comparable GAAP financial measures below.  Some limitations of Bookings and adjusted EBITDA are as follows:

 

  • Bookings does 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 intangible assets previously acquired, acquisition-related transaction expenses, contingent consideration fair value adjustments and restructuring expense;
  • Adjusted EBITDA does not reflect income tax expense;
  • Adjusted EBITDA does not include other income or expense, which includes foreign exchange gains and losses and interest income or expense;
  • Adjusted EBITDA excludes depreciation and amortization of intangible assets and impairment of capitalized software. Although depreciation and amortization and impairment of capitalized software are non-cash charges, the assets being depreciated and 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), Diluted Net Income (Loss) Per Share, Cash Flow from Operations, Operating Income (Loss) and our other financial results presented in accordance with GAAP.

 

Reconciliation of GAAP to Non-GAAP Results (unaudited):

 

 

Three Months Ended Six Months Ended
Jun. 30, 2019 Jun. 30, 2018 Jun. 30, 2019 Jun. 30, 2018
Reconciliation of Revenue to Bookings:
Revenue $1,345,595 $733,673 $2,158,650 $1,622,361
Change in deferred revenue ($559,897) ($16,793) ($406,276) ($22,403)
Bookings $785,698 $716,880 $1,752,374 $1,599,958
Three Months Ended Six Months Ended
Jun. 30, 2019 Jun. 30, 2018 Jun. 30, 2019 Jun. 30, 2018
Reconciliation of Net Loss to Adjusted EBITDA:
 Net loss ($265,191) ($557,052) ($924,894) ($1,472,932)
 Interest expense, net (3,564) (732) (1,791) 134,601
 Income taxes 3,800 3,800
 Amortization of capitalized software development 156,303 142,014 341,002 271,022
 Depreciation and amortization of other assets 1,316 2,397 $,106 5,748
 Amortization of debt discount 187,876
 Stock-based expense 404,374 419,766 808,749 1,040,182
Adjusted EBITDA $293,237 $10,193 $226,171 $170,297

 

About Tapinator

Tapinator Inc. (OTCQB: TAPM) develops and publishes category leading apps for mobile platforms, with a significant emphasis on social casino games. Tapinator’s library includes over 300 titles that, collectively, have achieved over 470 million mobile downloads, including notable properties such as Video Poker Classic, Solitaire Dash and Crypto Trillionaire. Tapinator generates revenues through the sale of branded advertising and via consumer transactions, including in-app purchases and subscriptions. Founded in 2013, Tapinator is headquartered in New York, with product development and marketing teams located in North America, Europe and Asia. Consumers can find high-quality mobile entertainment wherever they see the ‘T’ character logo, or at http://tapinator.com.

 

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,” “plan,” “feel,” “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 belief that we are very well situated to achieve continued Revenue and Bookings growth, our belief that the potential size, quality and sustainability of revenues and earnings from the Category Leading Apps business is significantly greater than our legacy Rapid-Launch Games business, our belief that that niche opportunities continue to exist in the casino games business and that applying gameplay innovation to slots can result in a highly sustainable and successful product in this business, our goal for our Category Leading Apps business to develop a small number of core franchise titles that can achieve lifespans of at least five to ten years and grow into sustainable market leaders, and our target projection that our Bookings growth for 2019 will be between 8%-12% and our Category Leading Apps Bookings growth will be in excess of 50%.  Forward-looking statements in this release involve substantial risks and uncertainties that could cause the development and monetization of our mobile games, future results, performance or achievements to differ significantly from those expressed or implied by the forward-looking statements. Such risks and uncertainties include, among others, our ability to continue Revenue and Bookings growth, our ability to capitalize on niche opportunities in the casino games business (including our ability to apply gameplay innovation in this business which may result in a highly sustainable and successful product in this business) and our ability to achieve Bookings growth for 2019 of 8%-12% and Category Leading Apps Bookings growth of over 50%. 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 Market Group’s OTC Link quotation system 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 Market Group’s OTC Link quotation system is not a stock exchange, and trading of securities on it is often more sporadic than trading of securities listed on the NASDAQ Stock market or another 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 Annual Report on Form 10-K for the year ended December 31, 2018, including but not limited to the discussion under “Risk Factors” therein, which the Company filed with the SEC and may be viewed at http://www.sec.gov.

 

CONTACT:

Tapinator Investor Relations

investor.relations@tapinator.com

914.930.6232

 

Source:  Tapinator, Inc.

Tapinator, Inc. Launches Major Update to Video Poker Classic, the Top Video Poker Game on Mobil

New York, NY— April 25, 2019 –Tapinator, Inc. (OTCQB: TAPM) (“Tapinator”), a developer and publisher of category leading apps for mobile platforms, today announced that it has launched a major update to Video Poker Classic, the top video poker game on mobile.

 

Video Poker Classic is the most popular video poker game on iOS and is a leading video poker property on both Google Play and the Amazon Appstore. On iOS, the title maintains over 25,000 reviews with an average score of 4.7 out of 5.0. One of the reasons for the title’s success is its consistency with a real-world casino experience.

 

To quantify the size of the video poker market, we can look to certain gaming jurisdictions, such as Louisiana and Illinois, that have published data specifically on video poker revenue. In 2013, Louisiana’s adjusted gross video poker revenue was over $600 million and represented 20 percent of the state’s net daily gaming revenue. In Illinois in 2013, video poker revenue was about $300 million relative to about $1.5 billion in adjusted gross casino revenue. In 2018, the revenue for the social casino market reached $5.2 billion, according to Eliers & Krejcik. Based on the size of the video poker market as a percentage of the real-money gaming market, we believe there to be significant growth potential for video poker within the social casino segment. Video Poker Classic is currently ranked approximately in the Top 150 in Downloads and Top 100 in Grossing within the Casino category on iOS.

 

Our new 2.0 version brings multi-hand capability, a popular casino feature, to the game’s core single-hand gameplay. More specifically, we have introduced Triple Play, Five Play, and Ten Play for all of our 39 game types. With this new version, Video Poker Classic  has the richest offering of any video poker title on mobile devices, in terms of game types, gameplay formats (Single Hand, Triple Play, Five play, Ten play) and overall functionality.

 

“We are excited that, with this major update, we have yet again raised the bar for the video poker category on mobile devices. We are looking forward to future updates later this year that will continue to refine and optimize our category-leading product,” said Tapinator CEO, Ilya Nikolayev.

 

About Tapinator

Tapinator Inc. (OTCQB: TAPM) develops and publishes category leading apps for mobile platforms. Tapinator’s library includes over 300 titles that, collectively, have achieved over 450 million mobile downloads, including notable properties such as Video Poker Classic, Solitaire Dash and Crypto Trillionaire. Tapinator generates revenues through the sale of branded advertising and via consumer transactions, including in-app purchases and subscriptions. Founded in 2013, Tapinator is headquartered in New York, with product development and marketing teams located in North America, Europe and Asia. Consumers can find high-quality mobile entertainment wherever they see the ‘T’ character logo, or at http://tapinator.com.

 

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,” “feel,” “may,” “will,” “expect,” “anticipate,” “estimate,” “intend,” and similar expressions (as well as other words or expressions referencing future events, conditions or circumstances) are intended to identify forward-looking statements. The forward-looking statements include, among other things, our belief that there is significant growth potential for Video Poker Classic within the social casino market segment.  Forward-looking statements in this release involve substantial risks and uncertainties that could cause the development and monetization of our mobile games and apps, future results, performance or achievements to differ significantly from those expressed or implied by the forward-looking statements. Such risks and uncertainties include, among others, our ability to penetrate the social casino market segment sufficiently enough to allow for significant growth for Video Poker Classic. 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 Market Group’s OTC Link quotation system 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 Market Group’s OTC Link quotation system is not a stock exchange, and trading of securities on it is often more sporadic than trading of securities listed on the NASDAQ Stock market or another 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 Annual Report on Form 10-K for the year ended December 31, 2018, including but not limited to the discussion under “Risk Factors” therein, which the Company filed with the SEC and may be viewed at http://www.sec.gov.

 

CONTACT:

Tapinator Investor Relations

investor.relations@tapinator.com

914.930.6232

 

Source:  Tapinator, inc.

 

Tapinator Launches Crypto Themed Mobile Game Exclusively on iOS

Tech Industry Mints Its First Crypto Trillionaire 

 

NEW YORK (February 12, 2019) Tapinator, Inc. (OTCQB: TAPM), a publisher of category leading apps for mobile platforms, today announced the January 31, 2019 global release of Crypto Trillionaire exclusively on Apple’s iOS platform.   In order to bring this unique, best-in-class idle tapper game to mobile players worldwide, Tapinator has joined forces with the game’s developer, Robot Cake Games of Hannover, Germany.

 

Following its initial global launch on iOS, Crypto Trillionaire was featured by Apple as a “New Game We Love,” in 152 countries, including the United States. To-date, Crypto Trillionaire has achieved the following iOS metrics:

 

– Nearly 250,000 player downloads

– Excellent rating of 4.7 (out of 5.0) stars, based on over 4,000 player reviews

– Reached #3 Top Strategy Games in the United States

– Reached #89 Top Grossing for Strategy Games in the United State

– Achieved #1 organic search result for the term “Crypto” within the App Store

 

Tapinator’s CEO, Ilya Nikolayev, commented on the games release, “We achieved a very successful initial global launch with Crypto Trillionaire on iOS and we plan to invest significantly in future product updates and marketing with the intention of making Crypto Trillionaire a true category leader within the idle tapper genre across all major mobile platforms. The player response to the game has been fantastic and we are seeing solid metrics for both retention and ABPDAU (average bookings per daily active user). The idle tapper category has shown to support top grossing games with multi-year lifespans. We look forward to game enhancements that we expect will continue to improve player engagement and lifetime value, thereby allowing us to scale up our user acquisition budget. While it is still extremely early in the game’s lifecycle, based on what we have seen thus far, we believe Crypto Trillionaire will have a material positive impact on our 2019 bookings results.”

 

Crypto Trillionaire is the first of several planned major releases for Tapinator’s Category-Leading Games & Apps business for 2019. Future releases will be announced in the coming months.

 

About Tapinator

Tapinator Inc. (OTCQB: TAPM) develops and publishes category leading apps for mobile platforms. Tapinator’s library includes over 300 titles that, collectively, have achieved over 450 million mobile downloads, including notable properties such as Video Poker Classic, Dice Mage and Solitaire Dash. Tapinator generates revenues through the sale of branded advertising and via consumer transactions, including in-app purchases and subscriptions. Founded in 2013, Tapinator is headquartered in New York, with product development and marketing teams located in North America, Europe and Asia. Consumers can find high-quality mobile entertainment wherever they see the ‘T’ character logo, or at http://tapinator.com.

 

Crypto Trillionaire is a mobile app game developed solely for entertainment purposes.  It does not allow players to purchase, accumulate, trade, or otherwise transact in actual cryptocurrency or crypto-assets of any kind.

 

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,” “feel,” “may,” “will,” “expect,” “anticipate,” “estimate,” “intend,” and similar expressions (as well as other words or expressions referencing future events, conditions or circumstances) are intended to identify forward-looking statements. The forward-looking statements include, among other things, our intention to make Crypto Trillionaire a true category leader within the idle tapper genre across all major mobile platforms through significantly investing in product updates and marketing, our expectation that game enhancements will continue to improve player engagement and lifetime value thereby allowing us to scale our user acquisition budget and our belief Crypto Trillionaire will have a material positive impact on our 2019 bookings results.  Forward-looking statements in this release involve substantial risks and uncertainties that could cause the development and monetization of our mobile games and apps, future results, performance or achievements to differ significantly from those expressed or implied by the forward-looking statements. Such risks and uncertainties include, among others, our ability to invest our financial and development resources in a way that will lead to Crypto Trillionaire becoming a true category leader, our ability to continue to attract and retain Crypto Trillionaire players, the possibility of our competitors developing games that players prefer to Crypto Trillionaire, our ability to utilize Robot Cake Games to successfully increase the adoption of Crypto Trillionaire globally  and our ability to successfully develop updates and future features of Crypto Trillionaire which players will adopt. 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 Market Group’s OTC Link quotation system 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 Market Group’s OTC Link quotation system is not a stock exchange, and trading of securities on it is often more sporadic than trading of securities listed on the NASDAQ Stock market or another 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, see Tapinator’s Risk Factors which are available within the disclaimers section of Tapinator.com.

 

CONTACT:

Tapinator Investor Relations

investor.relations@tapinator.com

914.930.6232

 

Source: Tapinator

TAPM News - Tapinator to Make Product Announcement at Leading Blockchain Conference

Tapinator Sponsors and CEO Will Speak on Panel at ETH Denver – NEW YORK, – (https://www.financialnewsmedia.com News Alert) – Tapinator, Inc. (OTCQB: TAPM), a leading developer and publisher of mobile games on the iOS, Google Play, Amazon, and Ethereum platforms, today announces that it is sponsoring and will speak on a panel at leading blockchain conference, ETH Denver on February 17th. The panel will focus on the intersection of blockchain & gaming and the Company will announce it first blockchain product, which will be released by Tapinator’s subsidiary, Revolution Blockchain, in Q2 of this year.

 

 

“We are very excited to attend and present at one of the industry’s top blockchain conferences. We believe that gaming is one of the most exciting verticals for blockchain technology and we look forward to sharing more information about our first product on February 17th,” commented Ilya Nikolayev, CEO of Tapinator. Read this and more TAPM news at https://www.financialnewsmedia.com/profiles/tapm.html

 

 

ETH Denver, along with its sister events, has over 2,500 people registered to participate in its events. The conference and hackathon focuses on emerging blockchain technologies (like Ethereum), which its organizers believe ‘could bring about the most significant technological and social advancements since the advent of the internet’. Notable ETH Denver sponsors, in addition to Tapinator, include Thiel Fellowship, CryptoKitties and MetaMask.

 

About Tapinator

Tapinator develops and publishes mobile games and decentralized apps on the iOS, Google Play, Amazon, and Ethereum platforms. Tapinator’s portfolio includes over 300 mobile gaming titles that, collectively, have achieved over 450 million player downloads, including games such as ROCKY(TM), Video Poker Classic, Solitaire Dash, and Dice Mage. Tapinator generates revenues through the sale of branded advertisements and via consumer transactions, including in-app purchases. Founded in 2013, Tapinator is headquartered in New York, with product development teams located in the United States, Germany, Bulgaria, Pakistan, Indonesia and Canada. Consumers can find high-quality mobile entertainment wherever they see the ‘T’ character logo, or the ‘Revolution Blockchain’ wordmark.

 

About ETH Denver

Decentralization is underway. In the coming years, emerging blockchain technologies (like Ethereum) will aid in distributing power from the center to the edges of our communities. This movement could bring about the most significant technological and social advancements since the advent of the internet. Ethereum Denver has supported the blockchain community since early 2014. Along with its sister events, there are over 2,500 people registered to participate in its events.

 

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,” “may,” “will” “expect,” “anticipate,” “estimate,” “intend,” and similar expressions (as well as other words or expressions referencing future events, conditions or circumstances) are intended to identify forward-looking statements. Forward-looking statements in this release involve substantial risks and uncertainties that could cause the next stage of our development, the deleveraging and strengthening of our balance sheet and the execution of our organic growth strategy to differ significantly from those expressed or implied by the forward-looking statements. Such risks and uncertainties include, among others, whether Revolution Blockchain will be successful in launching its first product by the second quarter of 2018, if at all, and whether such product will be well received in the marketplace, our belief that the applicability of blockchain technology will expand from currency trading to industry-changing applications and games and our belief that we are well positioned to become a leader within the decentralized apps market. 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 Market Group’s OTC Link quotation system 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 Market Group’s OTC Link quotation system is not a stock exchange, and trading of securities on it is often more sporadic than trading of securities listed on the NASDAQ Stock market or another 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, see Tapinator’s Risk Factors which are available within the disclaimers section of Tapinator.com.

 

Contact:
investor.relations@tapinator.com
+1(914)930-6232

SOURCE Tapinator, Inc.

 

Disclaimer: FN Media Group LLC (FNMG) owns and operates FinancialNewsMedia.com (FNM) which is a third party publisher that disseminates electronic information through multiple online media channels. FNMG’s intended purposes are to deliver market updates and news alerts issued from private and publicly trading companies as well as providing coverage and increased awareness for companies that issue press to the public via online newswires. FNMG and its affiliated companies are a news dissemination and financial marketing solutions provider and are NOT a registered broker/dealer/analyst/adviser, holds no investment licenses and may NOT sell, offer to sell or offer to buy any security. FNMG’s market updates, news alerts and corporate profiles are NOT a solicitation or recommendation to buy, sell or hold securities. The material in this release is intended to be strictly informational and is NEVER to be construed or interpreted as research material. All readers are strongly urged to perform research and due diligence on their own and consult a licensed financial professional before considering any level of investing in stocks. The companies that are discussed in this release may or may not have approved the statements made in this release. Information in this release is derived from a variety of sources that may or may not include the referenced company’s publicly disseminated information. The accuracy or completeness of the information is not warranted and is only as reliable as the sources from which it was obtained. While this information is believed to be reliable, such reliability cannot be guaranteed. FNMG disclaims any and all liability as to the completeness or accuracy of the information contained and any omissions of material fact in this release. This release may contain technical inaccuracies or typographical errors. It is strongly recommended that any purchase or sale decision be discussed with a financial adviser, or a broker-dealer, or a member of any financial regulatory bodies. Investment in the securities of the companies discussed in this release is highly speculative and carries a high degree of risk. FNMG is not liable for any investment decisions by its readers or subscribers. Investors are cautioned that they may lose all or a portion of their investment when investing in stocks. This release is not without bias, and is considered a conflict of interest if compensation has been received by FNMG for its dissemination. To comply with Section 17(b) of the Securities Act of 1933, FNMG shall always disclose any compensation it has received, or expects to receive in the future, for the dissemination of the information found herein on behalf of one or more of the companies mentioned in this release For current services performed FNMG was compensated twenty three hundred dollars for Tapinator, Inc. this news coverage by the company. FNMG HOLDS NO SHARES OF Tapinator, Inc.

 

This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may”, “future”, “plan” or “planned”, “will” or “should”, “expected,” “anticipates”, “draft”, “eventually” or “projected”. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company’s annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and FNMG undertakes no obligation to update such statements.
_________________________________________________

About Tapinator

Tapinator was founded by a visionary team that has worked together to build mobile games and applications since 2007 and has achieved successful exits for their investors.  View a Corporate Video Here

 

Tapinator Inc. develops and publishes category leading games for mobile platforms, with a focus on the social casino genre. 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 and Solitaire Derby. Tapinator generates revenues through the sale of branded advertising and via consumer transactions, including in-app purchases and subscriptions. Through its Revolution Blockchain subsidiary, the Company is also investing in the non-fungible token (“NFT”) economy as it relates to gaming, art & collectibles. Founded in 2013, Tapinator is headquartered in New York, with product development and marketing teams located in North America and Europe. Consumers can find high-quality mobile entertainment wherever they see the ‘T’ character logo, or at http://tapinator.com.

 

 

For a complete Investor Presentation, please go to:  https://tapinator.com/investorpresentation

 

Tapinator Inc. (OTCQB: TAPM) develops and publishes category leading apps for mobile platforms, with a focus on social casino games. Tapinator’s library includes over 300 titles that, collectively, have achieved over 500 million mobile downloads, including notable properties such as Video Poker Classic and Solitaire Dash. Tapinator generates revenues through the sale of branded advertising and via consumer transactions, including in-app purchases and subscriptions. Founded in 2013, Tapinator is headquartered in New York, with product development and marketing teams located in North America, Europe and Asia. Consumers can find high-quality mobile entertainment wherever they see the ‘T’ character logo.

 

 

Meet our Executive Team:

 

 

Ilya Nikolayev, CEO

Ilya Nikolayev is an accomplished technology executive who previously served as the CEO and Co-Founder of Familybuilder. In 2007, Mr. Nikolayev created one of the first successful Facebook applications, Family Tree, and grew the property to over 6 million monthly active unique users and 45 million total users. Mr. Nikolayev raised venture capital funding, grew the business to profitability, and successfully sold Familybuilder to Intelius in 2011, generating a significant return for all of its investors. Mr. Nikolayev was also a co-founder at InAppFuel, a patented minigame software for mobile game developers that was sold to Tapinator in 2014. Prior to Familybuilder, Mr. Nikolayev worked in banking for JP Morgan. Mr. Nikolayev is a frequently cited industry expert who has appeared recently on Fox Business, Bloomberg and TheStreet. Mr. Nikolayev graduated cum laude from New York University.

 

 

Andrew Merkatz, President

Andrew Merkatz is a finance executive with 20 years of experience as an operator and investor in media and technology growth companies. From 2008-2015, Mr. Merkatz was a Managing Director of Investments at Vision Capital where he managed investments in digital media and software technology. Mr. Merkatz began his career at private equity firm, Interlaken Capital. He later served as Chief Operating Officer for Site-Specific, one of the first internet advertising agencies (sold to CKS Group), Vice President of Corporate Development at FLOORgraphics, a pioneering in-store media company (sold to News Corp.), and President of Predict It, a venture backed digital media company. In 2007, Mr. Merkatz co-founded Familybuilder, a leading Facebook app developer, which was sold to Intelius in 2011. In 2013, Mr. Merkatz co-founded InAppFuel, a developer of patented minigame software for mobile game developers that was acquired by Tapinator in 2014.  Mr. Merkatz joined Tapinator as the Company’s President in June of 2015.  Mr. Merkatz holds a B.A. in Economics, with distinction, from the University of Pennsylvania, and an M.B.A. from Harvard Business School.

 

 

Teymour Farman-Farmaian, Independent Director

Teymour Farman-Farmaian is currently Head of USA at XAPO, one of the world’s largest Bitcoin custodians. Previously, Mr. Farman-Farmaian was CMO at Spotify, the world’s leading music streaming service, a company he joined in 2011. Mr. Farman-Farmaian was responsible for subscription revenues and led a team of over 100 employees. He helped triple revenue growth to hit a $500 million run rate, and achieve 7.5 million DAU. In 2012, Mr. Farman-Farmaian left Spotify to focus on various start-ups with heavy viral and engagement components. Before Spotify, Mr. Farman-Farmaian spent close to two years with Zynga (ZNGA) as GM of Partnerships. There, he was responsible for Zynga’s multi-billion dollar partnership with Facebook as well as relationships with Yahoo (YHOO) and Google (GOOG). Mr. Farman-Farmaian joined Zynga after six years at Google where he held various roles including Director of European Sales Operations. Mr. Farman-Farmaian has a BA from Duke University and an MBA from Harvard University.

 

 

Spencer G. Feldman, Independent Director

Mr. Feldman is a partner in the New York City law firm of Olshan Frome Wolosky LLP, where he has been a member of its corporate and securities group since September 2013. He was previously a principal shareholder in the law firm Greenberg Traurig LLP, practicing in its corporate and securities department, which he joined in 1993. Mr. Feldman has more than 30 years of experience practicing corporate and securities law and concentrates his practice in the areas of initial public offerings, follow-on offerings, shelf takedowns, confidentially marketed offerings, registered directs, PIPEs and other private financings, and mergers & acquisitions with public companies, with an emphasis on representing computer, Internet, media and other technology-driven companies. Nominating & Governance Committee(Chair), Audit Committee, Compensation Committee.

 

 

Desmond Glass, Independent Director

Since November 2017, Mr. Glass has served as Group Chief Financial Officer and company Secretary at RWS Holdings PLC (RWS.L), an AIM-listed multinational language and professional services provider, where he is responsible for shaping and executing upon the financial strategy of the business. From April 2008 until October 2017, Mr. Glass served as the Chief Financial Officer of GAN PLC, a provider of enterprise online gaming software, operational support services and online game content development services to the casino industry. Mr. Glass is a dynamic and hands-on Chief Financial Officer, with proven international leadership experience gained in both public and private venture backed companies, who brings a rare blend of strategic and commercial acumen coupled with a pragmatic and open leadership style. Prior to his time at RWS Holdings PLC and GAN PLC, Mr. Glass held positions at Evexar Limited, Rodale International Limited, ABC Inc., and Deloitte, among others. Mr. Glass received his Bachelor of Commerce from University College Dublin, his ACA from the Institute of Chartered Accountants in Ireland, and his MBA from Imperial College London. Audit Committee(Chair), Nominating & Governance Committee, Compensation Committee.

 

Disclaimer
FN Media Group LLC (FNMG) owns and operates FinancialNewsMedia.com (FNM) which is a third party publisher that disseminates electronic information through multiple online media channels. FNMG’s intended purposes are to deliver market updates and news alerts issued from private and publicly trading companies as well as providing coverage and increased awareness for companies that issue press to the public via online newswires. FNMG and its affiliated companies are a news dissemination and financial marketing solutions provider and are NOT a registered broker/dealer/analyst/adviser, holds no investment licenses and may NOT sell, offer to sell or offer to buy any security. FNMG’s market updates, news alerts and corporate profiles are NOT a solicitation or recommendation to buy, sell or hold securities. The material in this release is intended to be strictly informational and is NEVER to be construed or interpreted as research material. All readers are strongly urged to perform research and due diligence on their own and consult a licensed financial professional before considering any level of investing in stocks. The companies that are discussed in this release may or may not have approved the statements made in this release. Information in this release is derived from a variety of sources that may or may not include the referenced company’s publicly disseminated information. The accuracy or completeness of the information is not warranted and is only as reliable as the sources from which it was obtained. While this information is believed to be reliable, such reliability cannot be guaranteed. FNMG disclaims any and all liability as to the completeness or accuracy of the information contained and any omissions of material fact in this release. This release may contain technical inaccuracies or typographical errors. It is strongly recommended that any purchase or sale decision be discussed with a financial adviser, or a broker-dealer, or a member of any financial regulatory bodies. Investment in the securities of the companies discussed in this release is highly speculative and carries a high degree of risk. FNMG is not liable for any investment decisions by its readers or subscribers. Investors are cautioned that they may lose all or a portion of their investment when investing in stocks. This release is not without bias, and is considered a conflict of interest if compensation has been received by FNMG for its dissemination. To comply with Section 17(b) of the Securities Act of 1933, FNMG shall always disclose any compensation it has received, or expects to receive in the future, for the dissemination of the information found herein on behalf of one or more of the companies mentioned in this release. For current services performed FNMG has been compensated twenty five hundred dollars for Tapinator, Inc. current news coverage by the company.  FNMG HOLDS NO SHARES OF Tapinator, Inc. This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may”, “future”, “plan” or “planned”, “will” or “should”, “expected,” “anticipates”, “draft”, “eventually” or “projected”. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company’s annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and FNMG undertakes no obligation to update such statements.