Tapinator Announces Q2 2024 Financial Results
- Revenue Increases 16% Year-Over-Year to
$1.2 Million - Bookings* Decrease 8% Year-Over-Year to
$1.1 Million - Net Income of
$2k Compared to Previous Year Net income of$83k - Adjusted EBITDA* Decreases 44% Year-Over-Year to
$119k - Basic and Fully Diluted EPS of
$0.00
The quarterly report and financial statements have been published on OTC Markets and may be found at http://www.otcmarkets.com/stock/TAPM/disclosure. The results provided below replace, in their entirety, any guidance or projections previously issued by the Company.
For the three months ended
For the six months ended
*A table has been included in this press release with non-GAAP adjustments to the Company's revenue resulting in bookings (a non-GAAP measure) and non-GAAP adjustments to the Company's net income, resulting in adjusted EBITDA (a non-GAAP measure) for the relevant periods.
Financial Highlights
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Three Months Ended |
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Six Months Ended |
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2024 |
2023 |
% Ch. |
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2024 |
2023 |
% Ch. |
GAAP Results: |
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Revenue |
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16 % |
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16 % |
Operating Income (loss) |
( |
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-133 % |
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( |
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-104 % |
Net Income |
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-97 % |
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-49 % |
Net Income margin % |
0 % |
8 % |
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6 % |
14 % |
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Net Income Per Share – Basic |
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Net Income Per Share – Diluted |
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Weighted avg. common shares outstanding - basic |
2,725,439 |
2,725,439 |
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2,725,439 |
2,725,439 |
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Weighted avg. common shares outstanding - diluted |
2,725,439 |
2,725,439 |
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2,725,439 |
2,725,450 |
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Non-GAAP Results: |
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Bookings: |
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Category Leading Games |
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-5 % |
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2 % |
Rapid-Launch Games |
17,437 |
53,703 |
-68 % |
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42,117 |
121,763 |
-65 % |
Total Bookings |
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-8 % |
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-2 % |
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Adjusted EBITDA |
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-44 % |
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-22 % |
Adjusted EBITDA Margin % |
10 % |
20 % |
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11 % |
16 % |
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(1) Percentage change not meaningful. |
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In May and July, we launched major update 1.3 and 1.4, respectively, to our latest game, Blackjack Live Casino. Later this month, we will be launching the Android version of this game on
As we have noted previously, while creating the live host experience for Blackjack Live Casino, we spent significant time exploring the voice and chat capabilities of AI. We are currently working on two new products - one at the intersection of chat and AI; the other at the intersection of mobile gaming and AI. Both products utilize the core expertise that our team has in mobile app development, and we plan on launching both products later this year.
Non-GAAP Financial Measures*
We have provided in this release the non-GAAP financial measures of Bookings and adjusted EBITDA as a supplement to the measures of Revenue and Operating which are prepared in accordance with
- Bookings do not reflect that we defer and recognize online game revenue over the estimated life of durable virtual goods;
- Adjusted EBITDA does not include the impact of stock-based expense, impairment of previously capitalized software or intangible assets previously acquired, gain on digital asset dividends & airdrops, gain on sale of digital assets and g ain on sale of investments;
- Adjusted EBITDA does not reflect income tax expense;
- Adjusted EBITDA does not include other income or expenses, which includes foreign exchange gains and losses, interest income or expense, and gain on extinguishment of debt;
- Adjusted EBITDA excludes depreciation and amortization of intangible assets and impairment of capitalized software. Although depreciation, amortization, and impairment of capitalized software are non-cash charges, the assets being depreciated, amortized, or impaired may have to be replaced in the future; and
- Other companies, including companies in our industry, may calculate adjusted EBITDA differently or not at all, which will reduce their usefulness as a comparative measure.
Because of these limitations, you should consider Bookings and adjusted EBITDA, along with other financial performance measures, including Revenue, Net Income (Loss), Basic and Diluted Net Income (Loss) Per Share, Cash Flow from Operations, Operating Income (Loss), and our other financial results presented in accordance with GAAP.
NFT500 Supplemental Information – Summary Collection Metrics*
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Totals as of |
Q1 2024 |
Q2 2024 |
Cumulative |
# of NFTs Collected |
724 |
1 |
0 |
725 |
# of NFTs Sold |
-292 |
-24 |
-19 |
-335 |
# of NFTs Held, Cumulatively |
432 |
409 |
390 |
390 |
Cost of NFTs Collected |
$ 2,925,228 |
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$ 2,925,228 |
Proceeds from Sale of Collected NFTs |
(1,600,482) |
(300,315) |
(96,344) |
$ (1,997,141) |
Proceeds from Sale of Digital Asset Dividends & Airdrops |
(185,816) |
- |
- |
(185,816) |
Cost of NFTs Collected, Net of Sales Proceeds |
$ 1,138,930 |
$ (300,315) |
$ (96,344) |
$ 742,271 |
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* We are no longer actively investing in the NFT ecosystem, and we have been selectively selling digital assets under market conditions as market conditions allow and that we deem appropriate. |
Reconciliation of GAAP to Non-GAAP Results
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Three Months Ended |
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Six Months Ended |
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2024 |
2023 |
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2024 |
2023 |
Reconciliation of Revenue to Bookings: |
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Revenue |
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Change in deferred revenue |
(123,784) |
143,757 |
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(192,904) |
194,187 |
Bookings |
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Reconciliation of Net Income to Adjusted EBITDA: |
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Net income |
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Interest income, net |
(1,133) |
(1,864) |
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(2,139) |
(2,310) |
Income tax expense, net |
11,100 |
17,200 |
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28,600 |
54,900 |
Loss on Impairment of digital assets |
- |
- |
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101,283 |
- |
Amortization of capitalized software development costs |
140,899 |
129,548 |
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260,005 |
229,885 |
Depreciation and amortization of other assets |
2,951 |
3,212 |
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6,163 |
6,425 |
Gain on sale of digital assets |
(37,319) |
(19,166) |
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(277,802) |
(239,884) |
Gain on sale of investments |
- |
(3,596) |
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- |
(3,596) |
Stock-based compensation |
- |
2,916 |
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- |
5,832 |
Adjusted EBITDA |
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About
Tapinator Inc. (OTC: TAPM) develops and publishes Category Leading Games for mobile platforms.
Forward Looking Statements
To the extent that statements contained in this press release are not descriptions of historical facts regarding
CONTACT:
Tapinator Investor Relations
investor.relations@tapinator.com
914.930.6232
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