Tinybuild Inc. · LSE:TBLD
Tinybuild — FY2021 Earnings Presentation
34 slides from Tinybuild's earnings presentation, Jul 14, 2022
Slide 1: FY 2021
FY 2021
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 Tony Assenza Giasone (Jaz) Salati Chief Executive Officer & Founder Chief Financial Officer Head of M&A, IR 18 years' industry experience. 11 years’ finance experience. 20+ years’ finance experience. Shipped over 20 titles as Completed 6 acquisitions, Top ranked equi
Slide 4: Agenda - FY 2021
AGENDA - FY 2021 OPERATIONAL REVIEW FINANCIAL REVIEW OUTLOOK APPENDIX 4
Slide 5: Operational Review
OPERATIONAL REVIEW Alex Nichiporchik (CEO, Founder)
Slide 6: Conflict in Ukraine
CONFLICT IN UKRAINE ▪ The situation is constantly evolving - people’s safety and wellbeing remain our priority ▪ Logistic and financial support for relocation provided ▪ All 30+ Ukrainian staff* now in relatively safer Lviv, 80km to border with Poland ▪ Relocation options available also for 50+ staff
Slide 7: FY 2021 Highlights
FY 2021 HIGHLIGHTS $52m 45% >30 consolidated revenues adj. EBITDA growth games currently in the pipeline 81% 7 $49m Acquisitions closed of sales from Own-IP net cash position (ye) in 2021 7
Slide 8: Showreel
SHOWREEL Page intentionally left blank 8
Slide 9: tinyBuild Global Presence
TINYBUILD GLOBAL PRESENCE >70 GAMES PUBLISHED >400 STAFF* GLOBALLY 11 STUDIOS Current regions Partner region 1.5m SOCIAL MEDIA FOLLOWERS** Map shows selected partner locations only (March 2022) * Employees and independent contractors 9 ** Source Company research
Slide 10: Broader Portfolio, Focused on Own IP
BROADER PORTFOLIO, FOCUSED ON OWN IP OVER 70 GAMES CATALOGUE, CREATING A MORE DIVERSE REVENUE MIX FY21 FY17 81% OWN-IP AS % OF GAMING REVENUE *Excluding contributions from games in the Hello Neighbor franchise 10
Slide 11: Back Catalogue Underpins Growth
BACK CATALOGUE UNDERPINS GROWTH Back catalogue* as a % of gaming revenue *Back catalogue is defined as any games released in the prior financial year and before 11
Slide 12: Innovative Marketing Approach
INNOVATIVE MARKETING APPROACH Mutually beneficial relationship Social Media Following vs. Competitors* with influencers Influencers require 1 content tinyBuild produces c.5 billion + 2 exciting and interactive content YouTube views Influencer 10,000 + receives views (views = money) 3 tinyBuild receives
Slide 13: M&A Execution
M&A EXECUTION WE’RE FIVE GAMES HUNGRY COUCH DOGHELM ANIMAL DATE: February 2021 DATE: February 2021 DATE: June 2021 DATE: August 2021 TYPE: Acquihire TYPE: Acquihire TYPE: Acquihire TYPE: Acquihire LOCATION: Minnesota, USA LOCATION: Russia LOCATION: Los Angeles, USA LOCATION: Los Angeles, USA TEAM SI
Slide 14: Bad Pixel - Case Study
BAD PIXEL - CASE STUDY ▪ Game launched as early access on Steam in April 2020 (c.$3.0m of EBITDA* in 2020) ▪ Bad Pixel acquihired in September 2021 ($6.5m upfront, $17.1m max consideration) ▪ Highest number of likes from Steam community on deal announcement ▪ Team has grown to 10 developers in Easte
Slide 15: Financial Review
FINANCIAL REVIEW Antonio Assenza (CFO)
Slide 16: FY 21 Financials
FY 21 FINANCIALS Net Game Revenues1 Adj. EBITDA2 Adj. Cash from Operations3 ▪ Net game revenue growth driven by strong ▪ Adj. EBITDA margin increase primarily as a ▪ Cash from operations increased 14% back catalogue sales and new titles such result of higher share of own-IP titles. while cash conver
Slide 17: Profit & Loss
PROFIT & LOSS ▪ Continued strong growth in gaming revenues with only a minor contribution from M&A. ▪ Events revenue broadly flat as DevGAMM moved to hybrid model ▪ Adj. EBITDA margin increased further to 42.6% from 40.6%, primarily as a result of a higher share of revenues from own-IP and back catal
Slide 18: Cash Flow
CASH FLOW ▪ Net cash generated from operations was $13.3m in 2021 was lower than the record $16.5m achieved in the previous year due to temporary increase in receivables ▪ Conversion adj. Cash from Operations* expected to improve from 87% in FY 21 as new titles launch ▪ Investing for long term growt
Slide 19: Balance Sheet
BALANCE SHEET ▪ Net cash position increases to $48.8m cash at 31 December 2021, including IPO proceeds and after investment in acquisitions ▪ Increase in Trade receivables is due to timing differences in payments from platforms following a strong Q4 performance ▪ Goodwill was $13.2m following the ac
Slide 20: Outlook
OUTLOOK Alex Nichiporchik (CEO, Founder)
Slide 21: Core Strategy
CORE STRATEGY …across Global …creating long …focused on IP multiple developer term scalable ownership… media publisher… franchises… formats 21
Slide 22: Portfolio Approach to Growth
PORTFOLIO APPROACH TO GROWTH Secret Neighbor (GaaS) First Class Trouble DEADSIDE (Early Access) Not For broadcast Tynikin Streets of Rogue Consistent updates for 2 years after An asymmetric multiplayer game that Hardcore multiplayer shooter with live A dystopian TV propaganda A 3D puzzle platformer
Slide 23: Potion Craft - Case Study
POTION CRAFT - CASE STUDY ▪ Potion Craft was presented at Steam Next Fest in Spring 2021 – immediate hit ▪ The game launched in September 2021 to #1 in Steam Global Top Sellers ▪ Covered its dev costs in the first week ▪ Was a top 5 game in 2021 by revenues ▪ Expected to leave early access to version
Slide 24: Strategy Check
STRATEGY CHECK • Increased pipeline to over 30 games 01 LEVERAGING EXISTING IP • Secret Neighbor and Totlally Reliable Delivery Service platform launches • Potion Craft, Despot’s Game and Not for Broadcast moving to v1.0 in 2022 • Seven M&A deals closed in 2021, including five post IPO • Growing deal
Slide 25: Outlook
OUTLOOK The Board remains confident the company is on track to deliver results at least in line with expectations, plus accretive acquisitions. 25
Slide 26: Ah, One More Thing - Hello Neighbor 2
AH, ONE MORE THING - HELLO NEIGHBOR 2 ▪ Alpha 1.0 on June 2020, followed by Alpha 1.5 for Halloween 2020 ▪ Expanded universe with a number of new characters and locations ▪ Success of Secret Neighbor on iOS enlarged the audience ▪ Enhanced commercial launch strategy ▪ Consistent growth on followers
Slide 27: Appendix
APPENDIX
Slide 28: Brief History of tinyBuild
BRIEF HISTORY OF TINYBUILD 2013 - 2015 2016 - 2018 2019 2020 2021 2022 & beyond… Acquihired… Acquihired… Secret No Time to Transitioned to Neighbor Explain 2nd Party IP & AA launch released games >70 Acquihired Invested in Dynamic Pine Events & Founder owned Pixels DevGamm Highlights 40 35 Top brand
Slide 29: Hello Neighbor Franchise
HELLO NEIGHBOR FRANCHISE Hello Neighbor franchise stats… 5M+ Closed Beta pre-orders Social, Puzzler on 7 April 2022 70M+ Sandbox HN downloads HN2 downloads GaaS Linear Chapter based Linear Chapter based 4M Animated Secret Neighbor TV series iOS downloads medium-term GRAPHIC NOVELS >140K sold pipelin
Slide 30: Experienced Management Team
EXPERIENCED MANAGEMENT TEAM Alex Nichiporchik Luke Burtis Tony Assenza Michael Schauble Chief Executive Officer & Founder Chief Operating Officer & Founder Chief Financial Officer VP – Business Development 18 years' industry experience 19 years' industry experience 11 years’ finance experience 16 yea
Slide 31: A Thorough, Yet Agile, Selection Process
A THOROUGH, YET AGILE, SELECTION PROCESS Tested process quickly identifies IP to pursue Developer led differentiates us… Inbound Desktop Conferences Reach Social pitches research presence Multimedia DISCOVER extend audience 1,000+ p/a Services 2nd party IP marketing, video creative production, QA & c
Slide 32: M&A Strategy
M&A Strategy Strategic rationale Deal Structure ▪ New Intellectual Property IP ▪ Deferred consideration ▪ Complimentary publishers ▪ Attractive Multiples ▪ Development studios ▪ Minimum Target Return on Investment ▪ Additional service providers ▪ Accretion Growth mindset Retention and Incentivisatio
Slide 33: Accounting: Amortisation Policies
ACCOUNTING: AMORTISATION DEVELOPER ADVANCE AMORTISATION (2 & 3RD PARTY) ND 2nd and 3rd party developer advances are capitalised on payment and recognised on the P&L in line with revenue until the capitalised development advances are fully amortised POLICIES DEVELOPER SALARY Developer salary costs ar
Slide 34: Thank You!
Build THANK YOU!