REG - tinyBuild, Inc. - Pre-Close Trading Update

tinyBuildAnnouncement

23/01/2023 07:00

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RNS Number : 4738N  tinyBuild, Inc.  23 January 2023

23 January 2023

 

tinyBuild, Inc

 

("tinyBuild" or the "Company")

 

Pre-Close Trading Update and Notice of Results

 

 

tinyBuild (AIM:TBLD), a premium video games publisher and developer with
global operations, is pleased to provide a trading update for the twelve
months ended 31 December 2022 ("FY 2022"). The Company expects to publish FY
2022 results on 29 March 2023.

 

Highlights

·    Revenue in line with expectations, with adjusted EBITDA broadly in
line

·    Eight new titles released in H2 2022, plus Hello Neighbor animated
series debut

·    Potion Craft passed 1,000,000 downloads, ahead of PS and Switch
launch

 

Following a solid second half of trading, the Company is on track to deliver
another year of strong growth with revenues in line with expectations for FY
2022. Progress in its strategy focused on own-IP also means the Company is on
track to deliver Adjusted EBITDA broadly in line with expectations for FY
2022, reflecting a greater investment in marketing to accelerate revenue
growth. The cash position at the end of FY 2022 was over $25m, also impacted
by timing of M&A and higher development spending on new titles, both
announced and unannounced.

 

Current trading

Overall, FY 2022 was a challenging year which started with the invasion of
Ukraine and was marked throughout by the cost of living crisis, with
expectations that video games sales and operations in Eastern Europe may be
negatively impacted. Conversely, tinyBuild performed strongly in the second
half of 2022, both in terms of sales and game development.

 

tinyBuild has continued to diversify its games portfolio into new genres (e.g.
simulation, action, strategy), and its revenue sources to benefit from
platform competition and the growth in subscription services. This trend gives
the Company greater visibility regarding its future revenue growth while
helping de-risk ongoing investments.

 

Portfolio and pipeline

In the second half of 2022, tinyBuild released a number of new titles,
including Tinykin, SpiderHeck, Asterigos and Hello Neighbor 2, plus version
1.0 of Cartel Tycoon, Despot's Game and Potion Craft, and a number of platform
launches which generated growth across the entire portfolio.

 

Recent announcements include the release date for Rhythm Sprouts across PC and
consoles and Hello Neighbor: Search and Rescue, a brand new VR title in the
Hello Neighbor franchise that will launch both on PSVR2 (Sony) and on Oculus
(Meta).

 

People

The number of staff has increased from 147 in March 2021, at the time of the
IPO,  to over 500 currently.tinyBuild helped staff and their families
relocate to safer areas in Eastern Europe and it is carefully monitoring the
geopolitical situation adapting its contingency plans to the evolving
circumstances. This response to protect staff has resulted in one-off costs
during the year, of which up to $2m are expected to be classified as
exceptional in the full year results.

 

tinyBuild aims to offer employees the best working conditions in the industry.
For example, the Company has implemented clear policies against crunching, the
industry practice by which developers overwork to meet certain targets. In
December 2022, tinyBuild also gave all direct employees an extra week of
holiday, following a similar move in June 2022 and FY 2021. As a result,
tinyBuild  has one of the lowest levels of staff turnover, low single-digit,
compared to an estimated 15.5.% at an industry level (Wired).

 

Employee Benefit Trust

As set out in the Company's FY 2022 interim results, tinyBuild established an
independent employee benefit trust, known as the tinyBuild Share Incentive
Trust (the "EBT"). The EBT has purchased 154,300 of the Company's common
shares of $0.001 in order, to among other things, satisfy potential future
option exercises of vested options granted pursuant to the Company's share
incentive arrangements and to satisfy the settlement of any other awards
granted pursuant to the Company's current and future incentive award schemes.

 

Outlook

Early indicators of positive consumer traction across the Company's
diversified portfolio and pipeline are very encouraging, and the Board looks
ahead to FY 2023 with confidence.

 

Alex Nichiporchik, Chief Executive Officer of tinyBuild, commented:

"2022 validated our strategy of investing in long-term, sustainable franchises
and the people behind them. We faced unprecedented challenges, all while
integrating acquisitions and moving to a decentralised approach that empowers
people to make the right decisions."

 

"Our focus and shared love for video games resulted in a record Q4 sales
period, with a highly diversified portfolio of games across all platforms and
early signs of success of our cross-media strategy. We are building something
to outlive us as a generation."

 

 

Enquiries:

 

 tinyBuild, Inc                                             investorrelations@tinybuild.com (mailto:investorrelations@tinybuild.com)

 Alex Nichiporchik - Chief Executive Officer

 Antonio Jose Assenza - Chief Financial Officer

 Giasone (Jaz) Salati - Head of M&A and IR

 Berenberg (Joint Broker and Nominated Adviser)             +44 (0)20 3207 7800

 Mark Whitmore, Ciaran Walsh, Milo Bonser

 Numis (Joint Broker)                                       +44 (0)20 7260 1000

 Hugo Rubinstein, Tejas Padalkar

 SEC Newgate (Financial PR)                                 tinybuild@secnewgate.co.uk

 Robin Tozer, Bob Huxford, Molly Gretton, Harry Handyside   +44 (0)7540 106366

 

About tinyBuild:

Founded in 2013, tinyBuild (AIM: TBLD) is a leading premium AA-rated and indie
video games publisher and developer. tinyBuild strategically secures access to
IP and partners with developers to establish a stable platform on which to
build multi-game and multimedia franchises. tinyBuild has a strong portfolio
of over 40 titles, and its upcoming pipeline includes over 20 new titles
currently in development.

 

Headquartered in Bellevue, Washington, USA, the Company has key operations
worldwide, with employees, contractors or partners in multiple locations
across five continents. tinyBuild's geographic diversity enables it to source
high-potential IP, cost-effective development resources and a loyal customer
base through innovative grassroots marketing. tinyBuild was admitted to AIM, a
market operated by the London Stock Exchange, in March 2021.

 

For further information, visit: www.tinybuildinvestors.com
(http://www.tinybuildinvestors.com) .

 

 

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