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TinyBuild's post-IPO profit up 64%

One year after going public on London Stock Exchange, Seattle-based publisher reports growth across the board
[This unedited press release is made available courtesy of Game Developer and its partnership with notable game PR-related resource Games Press]

London, United Kingdom, April 05. - Hello Neighbor publisher tinyBuild (AIM: TBLD) published its first financial results since IPO on London Stock Exchange. The financial report indicated $52.2M in revenue for 2021, a 39% increase from 2020. And the operating profit at the Hello Neighbor publisher is up 64% to $12.5 million.

 
​The company noted that revenue for the year was slightly ahead of expectations and was due to the good performances of new titles including Potion Craft (downloaded 600,000 times by the end of December 2021), as well as back catalogue sales. Back catalog sales represented 83% of total revenue for TinyBuild. Not For Broadcast, NotGames' FMV title released in January and published by TinyBuild, has been downloaded over 300,000 times.

Alex Nichiporchik, tinyBuild’s CEO:
​"Last year has been an incredible ride, from the IPO to our largest deal ever with Versus Evil and Red Cerberus opening up new avenues of growth. Our back catalog has performed strongly, and we have an even more diverse revenue mix in terms of titles, genres, geography and audience. Our strategy to accumulate owned-IP has resulted in a strong financial performance and has translated into an improved profitability.”

 
​Financial highlights:
●     Strong revenue growth of 39% to $52.2m (2020: $37.7m), slightly ahead of expectations, reflecting a strong performance in the last part of the year from new titles including Potion Craft and back catalog sales.
●     Record Adj. EBITDA of $22.2m (2020: $15.3m) up 45% y-o-y growth
●     Operating profit increased by 64% to $12.5m (2020: $7.7m)
●     Operating cash flow was $13.3m, below the previous year record of $16.5m, as a result of $5.5m IPO costs .
●     Net cash as of 31 December 2021 was $48.8m compared to $26.3m as at 31 December 2020), after accounting for gross proceeds of £36.2m ($50m) from the IPO, acquisitions, and a significant increase in development costs.

Operational highlights:
●     Portfolio increased to over 70 titles (30 at the time of the IPO), thanks to addition of Versus Evil publishing label and nine new titles launched by tinyBuild during FY 2021.
●     Contribution to revenues from first-/second-party games increased to 81% of Group revenues (2020: 70%), supporting long-term margin expansion.
●     Robust back catalog sales represented 83% of total revenue (2020: 75%), demonstrating the Company's ability to extend the life cycle of games, while adding new titles.
●     Five acquisitions of games studios completed (We're Five, Hungry Couch, Doghelm, Animal and Bad Pixel) for a total upfront consideration of $12.7m (cash and shares).
●     Major acquisition of Versus Evil, a US-based publisher focused on RPG and strategy games, and of Red Cerberus, a QA and testing services provider based in Sao Paolo, Brazil. The upfront consideration was $12.5m, with a maximum consideration of up to $31.3m.

Outlook
●     The pipeline for 2022 and beyond is strong and includes the closed Beta pre-orders (7 April 2022) for Hello Neighbor 2, which has seen a constant increase in the number of followers for over a year now.
●     The implication of the conflict in Ukraine and the fluid macroeconomic situation impose caution and vigilance in the medium and long term. In particular, tinyBuild continues to carefully assess the position of its staff, its exposure in terms of revenues and any other factor that may have an impact on the business.
●     All considered, the Board remains confident the Company is on track to deliver results at least in line with expectations, plus accretive acquisitions.
 
​Enquiries:
 
tinyBuild, Inc
White Label PR
 
About tinyBuild:
Founded in 2013, tinyBuild (AIM: TBLD) is a global video games publisher and developer, with a catalogue of more than 70 premium titles across different genres. tinyBuild's strategy is to focus on its own intellectual property (IP) to build multi-game and multimedia franchises, in partnership with developers.
tinyBuild is headquartered in the USA with operations stretching across the Americas and Europe. The Group's broad geographical footprint enables the Company to source high-potential IP, access cost-effective development resources, and build a loyal customer base through its innovative grassroots marketing.
tinyBuild was admitted to AIM, a market by the London Stock Exchange, in March 2021.

 
For further information, visit: www.tinybuildinvestors.com.

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