Tinybuild Inc. · LSE:TBLD
Tinybuild — H1 2024 Earnings Presentation
26 slides from Tinybuild's earnings presentation, Sep 30, 2024
Slide 1: H1 2024 Results Presentation
H1 2024 RESULTS PRESENTATION
Slide 2: Disclaimer
DISCLAIMER IMPORTANT: You must read the following disclaimer before continuing. The following disclaimer applies to the following presentation and you are therefore advised to read this disclaimer carefully before reading, assessing or making any other use of the presentation. In accessing the prese
Slide 3: Presenting Today
PRESENTING TODAY Alex Nichiporchik - CEO, Founder 20+ years' industry experience. Pro-gamer, shipped over 20 titles as Producer, discovered pillar titles and built relationships with key influencers. Giasone (Jaz) Salati - CFO 20+ years’ finance experience. Top ranked equity research analyst, and Chie
Slide 4: Agenda - H1 2024
AGENDA - H1 2024 OPERATIONAL REVIEW FINANCIAL REVIEW STRATEGY UPDATE Q&A 4
Slide 5: Operational Review
OPERATIONAL REVIEW Alex Nichiporchik, CEO
Slide 6: 2024 - Reset Progressing Well
2024 - RESET PROGRESSING WELL ▪ Capital increase in January 2024 supported by CEO, Atari and existing shareholders ($11.4m net proceeds) ▪ Continued revenue compression in H124 (large contracts and non-core titles underperformance) ▪ Implementation of cost action plan (over $10m annual savings in 20
Slide 7: H1 Highlights
H1 24 HIGHLIGHTS $18.8m $2.0m >80 Games portfolio Consolidated revenues Cash from operations 78% 89% $9.2m of sales from Own-IP Cash at the end of June ‘24 of sales from catalogue 7
Slide 8: Diversified Own-IP Portfolio
DIVERSIFIED OWN-IP PORTFOLIO OVER 80 GAMES CREATING FRANCHISE POTENTIAL H124 FY23 78% OWN-IP AS % OF GAMING REVENUE* 8 * Gaming revenues exclude revenues from Development Services and Events
Slide 9: Strong Back Catalogue Performance
STRONG BACK CATALOGUE PERFORMANCE 89% BACK CATALOGUE* AS % OF GAMING REVENUES** * Back catalogue is defined as any games released in the prior financial year and before 9 ** Gaming revenues exclude revenues from Development Services and Events
Slide 10: Financial Review
FINANCIAL REVIEW Giasone (Jaz) Salati, CFO
Slide 11: H1 Financial Overview
H1 24 FINANCIAL OVERVIEW Net Game Revenue 1 Adj. EBITDA 2 Net Cash from Operations ▪ Net Game Revenue dropped $4.4m (-20% ▪ Adj. EBITDA was negative $1.9m in H1 24 ▪ Net Cash from Operations dropped to y-o-y) due to lower platform deals due to lower revenues and relatively stable $2.0m (H1 2023: $6.
Slide 12: Profit & Loss
PROFIT & LOSS (Unaudited, $'000) H1 24 H1 23 ▪ Revenues from game sales relatively stable (-4%) in a Game and merchandise royalties 14,648 17,455 difficult year, despite Versus Evil’s underperformance Development Services 3,597 5,224 Events 590 616 ▪ Development revenues down 31% due to lower Total
Slide 13: Platform Deals Remain Weak
PLATFORM DEALS REMAIN WEAK 39% DROP IN PLATFORM DEAL REVENUES TINYBUILD PLATFORM DEALS PEAKED IN 2022 ▪ Revenues from platform remain weak in H1 24 ▪ tinyBuild saw a peak in 2022 followed by a sharp drop in 2023 (less than half the 2021 level, as a % of sales) ▪ Mitigating factors (e.g. lower cannib
Slide 14: Cash Flow
CASH FLOW (Unaudited, $'000) H124 H123 Profit/ Loss for the period -6,486 -25,283 Share-based payments 102 367 Amortisation of intangible assets 6,295 7,323 ▪ Net cash generated from operations drops to $2.0 Impairment of goodwill & intangible assets 3,028 27,196 in H1 24, primarily due to lower rev
Slide 15: Investments Peaked in 2022
INVESTMENTS PEAKED IN 2022 Software development Total investment ▪ Software development investments continued to ▪ Total investments (Software development + M&A) now decline in H1 2024 below 2020 level 15 * 2023E based on consensus for H2 23
Slide 16: Balance Sheet
BALANCE SHEET (Unaudited, $'000) H1 24 FY 23 Intangible Assets 49,416 51,512 Property, plant and Equipment 959 1,035 Deferred tax asset - - ▪ The decrease in Intangible assets primarily reflects the Trade and Other receivables 383 385 Total non-current assets 50,758 52,932 impairment of development c
Slide 17: Cash Utilisation in H1 24
CASH UTILISATION IN H1 24 ▪ $11.4m net proceeds from capital $9.2m CASH AT THE END OF JUNE 2024 raise in January 2024 ▪ $8.7m investments in development of new games ▪ $2.6m gross proceeds from disposals ▪ Cash position at the end of June 2024 was $9.2m 17
Slide 18: Strategy Update
STRATEGY UPDATE Alex Nichiporchik (CEO, Founder)
Slide 19: Game Launches So Far in 2024
GAME LAUNCHES SO FAR IN 2024 1. Lil' Gardsman (PC and consoles) – A wonderful combination of deduction, narrative and puzzle games 2. Tamarak Trail (PC and consoles) – A deck-building roguelike, with a customizable dice 3. Broken Roads (PC and consoles) – A narrative-driven RPG set in Australia with
Slide 20: Announced Pipeline
ANNOUNCED PIPELINE 1. Streets of Rogue 2 – An immersive RPG sandbox set in a vast randomly generated open world 2. Ferocious - A survival shooter in a lost prehistoric world full of deadly creatures 3. Sand - A multiplayer sandbox shooter from the developers of Secret Neighbor 4. Kingmakers - An act
Slide 21: Progress on the Five Year Plan
PROGRESS ON THE FIVE YEAR PLAN IP ORIGINATES FROM GAMES & ANIMATED SERIES INTERACTIVE MEDIA CO EXIST AND TV SERIES 2024 2025 2026 2027 MORE BIG TITLES COMING OUT, CROSS MEDIA FUELED BY LIVE ACTION MEDIA PROFITABLE FRANCHISES 21
Slide 22: Welcome to Raven Brooks
WELCOME TO RAVEN BROOKS Multimedia momentum building: ▪ Season 1 - over 275 million minutes watched across YouTube and Amazon ▪ Season 2 - to be released at Halloween 2024 ▪ Season 3 - currently in production → Expanded distribution platform → Correlation between video games and traction of animated
Slide 23: Closing Remarks
CLOSING REMARKS Alex Nichiporchik (CEO, Founder)
Slide 24: Core Strategy
CORE STRATEGY …across Global …creating long …focused on IP multiple developer term scalable ownership… media publisher… franchises… formats 24
Slide 25: Outlook
OUTLOOK The Board remains confident that the Company has adopted the right strategy and is on track to deliver results in line with expectations 25
Slide 26: Q&A
Q&A