Post on 25-Jun-2018
To the extent that statements contained in this presentation
are not descriptions of historical facts regarding Tapinator,
they are forward-looking statements reflecting the current
beliefs and expectations of management made pursuant
to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Words such as “targeted,”
“may,” “will” “expect,” “anticipate,” “estimate,” “intend,” and
similar expressions (as well as other words or expressions
referencing future events, conditions or circumstances)
are intended to identify forward-looking statements.
Examples of forward-looking statements contained in this
presentation include, among others, statements regarding
the quoting and trading of our common stock and our
expectations regarding our development and monetization
plans for our mobile games. Forward-looking statements
in this release involve substantial risks and uncertainties
that could cause the development and monetization of our
mobile games, future results, performance or achievements
to differ significantly from those expressed or implied by the
forward- looking statements. Such risks and uncertainties
include, among others, the uncertainties inherent in the hits
nature of the mobile gaming business. Tapinator undertakes
no obligation to update or revise any forward-looking
statements. The quoting and trading of the company’s
common stock on the OTC Bulletin Board and the OTC
Market Group’s OTC Link quotation system is often thin
and characterized by wide fluctuations in trading prices,
due to many factors that may have little to do with the
company’s operations or business prospects. As a result,
there may be volatility in the market price of the shares
of the company’s common stock for reasons unrelated to
operating performance. Moreover, the OTC Bulletin Board
and the OTC Market Group’s OTC Link quotation system
are not stock exchanges, and trading of securities on them
is often more sporadic than trading of securities listed on
the NASDAQ Stock market or another securities exchange.
Accordingly, stockholders may have difficulty reselling any
of their shares. For a further description of the risks and
uncertainties that could cause actual results to differ from
those expressed in these forward-looking statements, as well
as risks relating to the business of the company in general,
see Tapinator’s disclaimers, which are available here:
http://www.tapinator.com/disclaimers
FORWARD LOOKING STATEMENTS
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W H AT W E D OAn Emerging Mobile Gaming Leader
We Develop, &
Publish Mobile
Games for the iOS,
Android, and Amazon
platforms.
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S N A P S H O TAn Emerging Mobile Gaming Leader
• Our portfolio consists of more than 300 mobile gaming titles with over 450mm player downloads
• Our strategy is two-fold: (i) produce a large number of “Rapid-Launch Games,” which have low development costs and predictable returns and (ii) produce a select number of original “Full-Featured Games” which have higher development costs yet offer massive upside
• OurrevenuesandadjustedEBITDA*for2016wereapproximately$3.7mmand$870k,respectively.ThiscomparestorevenuesandadjustedEBITDA*for2015of$2.4mmand$522k,respectively
• We generate revenues through the sale of: (i) branded advertisements within our games and (ii) app store transactions
• We are based in New York City and have 10 employees and 40 contractors
• We are listed on the OTCQB Market and our market cap is approximately $10.0mm
* EBITDA is a non-GAAP, unaudited financial measure. 3
I N V E S T M E N T H I G H L I G H T SAn Emerging Mobile Gaming Leader
• Large and growing total addressable market - mobile games & mobile advertising
• Diversified portfolio of 300+ revenue producing games that, together, have achieved network scale
• Low cost and highly efficient development platform
• Rapid revenue growth with high operating leverage; we are EBITDA* positive and growing
• Disciplined ROI-based strategy of blending low cost Rapid-Launch and higher cost Full-Featured Games
• Efficient monetization strategy consisting of programmatic advertising sales and app store transactions
• Veteran management team/board with high-growth and large internet company credentials and a track record of building successful digital media businesses
* EBITDA is a non-GAAP, unaudited financial measure. 4
T E A M B I O SManagement
IIYA NIKOLAYEV - Chief Executive OfficerCo-Founder and CEO of Familybuilder until the sale of the Company to Intelius in 2011. He grew the business to profitability, acquired over
45 million users on the web, and over 2 million users on mobile. Mr. Nikolayev was also a cofounder of InAppFuel, a developer of patented
minigame software acquired by Tapinator in 2014. Prior to Familybuilder, Mr. Nikolayev worked in banking for JP Morgan and graduated cum
laude with a BA from New York University.
GEORGI DARAKEV - CTOLed all feature development at Familybuilder. Extensive experience developing successful LAMP (Linux,Apache, MySQL, PHP) applications
and web services. Expertise in scaling applications on AWS, S3, and Rightscale. Built products used by millions monthly on both the web &
mobile. Cofounder of InAppFuel. Mr. Darakev earned his BS in Computer Science from Dowling College.
ROBERT CRATES - Independent DirectorOver 25 years of experience in private equity, investing in a broad range of industries and asset categories. Mr. Crates has served on the
board of directors of numerous public and private companies. Mr. Crates earned his BA from Yale University.
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ANDREW MERKATZ - President/CFOAn accomplished entrepreneur with 20+ years of financial operations and transactional experience. Mr. Merkatz spent 6+ years at Vision
Capital where he focused on digital media and software technology. Mr. Merkatz was also a cofounder of InAppFuel and Familybuilder
along with Mr. Nikolayev. Mr. Merkatz earned his BA from University of Pennsylvania (cum laude), and his MBA from Harvard University.
TEYMOUR FARMAN-FARMAIAN - Independent DirectorWas CMO/CRO at Spotify, the world’s leading music streaming service, starting in 2011. He helped triple revenue growth to hit a $500
million run rate, and achieve 7.5 million DAU. Before Spotify, Teymour worked at Zynga (ZNGA) as GM of Partnerships and at Google
(GOOG) in various sales and operational roles. Teymour earned his BA from Duke University and his MBA from Harvard University.
T W O M A R K E T S : M O B I L E G A M I N G & M O B I L E A D V E R T I S I N GMobile Gaming Revenue to Grow From $34.8B in 2015 to $74.6B in 2020
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T W O M A R K E T S : M O B I L E G A M I N G & M O B I L E A D V E R T I S I N GMobile Advertising Revenue Projected to Grow From $101B in 2016 to $166B in 2018
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T W O - P R O N G E D G A M E S T R AT E G YMaximizing Risk Adjusted Returns Via a Game Portfolio Approach
Rapid-LaunchGames
Full-FeaturedGames
• High volume• Lost cost• Historically predictable returns• Advertising monetization
• Evergreen and/or homerun potential• Low volume• Higher cost• Higher returns• In-app purchase monetization
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T W O - P R O N G E D G A M E S T R AT E G YMaximizing Risk Adjusted Returns on Investment of Game Portfolio
9
RAPID-LAUNCH GAMES FULL-FEATURED GAMESRange of game development time 1 to 3 months 3 to 12 monthsTarget lifetime game dev cost $5k to $10k $100k to $1mm2017 game launches (est.) 100 4Technology Unity, MoPub, GameAnalytics Unity, MoPub, GameAnalytics
Adjust, GameSparksGame genres Parking, Driving, Stunts, Simulation,
Shooting, FightingArcade, Casino, Sports, RPG
Branded license partners NA MGM, Discovery ChannelTarget average life 18 to 54 months 36 to 60 monthsRisk level Low ModerateTarget lifetime revenue per game $35k $2.5M ($250k to $5M+)Primary monetization methods Advertising In-App Purchases + Advertising% of 2017 bookings (est.) 52% 48%
R A P I D - L A U N C H G A M E SHigh Volume, Low Cost, Predictable Returns
• Low cost development platform
• Cross game promotion replaces traditional user acquisition cost
• Over 300 active games, 88+ of which have achieved 1 million+ downloads
• 66% of our games older than 180 days are profitable
*Historical data from 314 Rapid-Launch games from 7/1/13 through 3/31/17.
*Figures include projected revenue and cost data over estimated remaining life. 10
Average Development
Cost per Game*
Average ROI per Game*
$6.9K 3.9x$26.7K
Average Contribution Margin
per Game*
F U L L - F E AT U R E D G A M E SLow Volume, Higher Cost, Higher Returns
Product Focus:
• Unique game play with in-depth content
• High retention with best-in-class monetization
• Build unique IP and selectively license branded IP
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Avg. Target Development
Cost per Game
Avg. Target
ROI per Game
$500K
Avg. Target Contribution
Margin per Game
Recently launched top grossing games generate huge revenue numbers:
• Clash Royale, launched 03/21016, generated $1 billion in its first year*
• Gardenscapes, launched 08/2016, has a $36+ million revenue run rate**
• Design Home, launched 11/2016, has a $60+ million revenue run rate***
*VentureBeat, 02/15/17
** MobileDevMemo, 09/19/16
***Glu Q1 2017, Earnings Presentation
$2.5mm 5.0x
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F U L L - F E AT U R E D G A M E SLow Volume, Higher Cost, Higher Returns
I lya NikolayevCEO
Interviewed on TheStreetDec 1, 2015
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• We have launched fifteen full-featured games
• Eleven were Featured as “New Games We Love”
• Nine reached the Top 50 in Games
• We have evolved our full-featured strategy to
shift away from super casual games
• We have in-depth knowledge of how to create
a hit game and are well positioned to launch a
home run product in 2018
F U L L - F E AT U R E D G A M E SRecent Launches: Solitaire Dash and Big Sport Fishing 2017
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Solitaire Dash Big Sport Fishing 2017
F U L L F E AT U R E D G A M E P I P E L I N EMajor Planned Launches for 2017
Q3 2017 Q4 2017 Q1 2018 Q2 2018
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ColorFill
Sequel to a unique RPG game with an Apple “App Store Editors’ Note.” Our goal is to improve upon the original’s already-strong ARPDAU while solving for long term retention.
In this unique, art-themed puzzle game, you must apply the correct color paint within each square to successfully reveal the masterpieces hidden beneath.
Divide & Conquer
An arena-style synchronous, multiplayer strategy game. Offers a unique combination of fast, synchronous multi-player battles and long-term progress via up-grades and unlocks.
Craft a robo-hero to take on an endless horde of battle droids in this fast-paced RPG. Take on missions, find loot, and unlock an arsenal of cannons, missiles, lasers, and more.
D I V E R S I F I E D R E V E N U E S O U R C E SAdvertising & App Store Purchases
September 30, 2017 (YTD):
51% of Bookings
September 30, 2017 (YTD):
49% of Bookings
AdvertisingApp Store Purchases
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M O N E T I Z AT I O N B E S T P R A C T I C E SOur Ads Do Not Disrupt Gameplay & Provide Value to Users
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No Ads During Gameplay INTERSTITIAL ADS Shown Between Levels
Ads Tie Into Game Currency REWARDED VIDEO ADS Provide Value
1 2
1 2
Free to Play
Monetize Gameplay with Consumables & Non-Consumables
M O N E T I Z AT I O N B E S T P R A C T I C E S Our In-App Purchases Enhance Gameplay
1
2
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O P E R AT I O N A L E X C E L L E N C E Creating Barriers to Entry
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Zero paid marketing to acquire game’s first 100k players
Top search placement & ability to move games up the leaderboards
Strong platform editorial relationships
(11 “New Games We Love” on iOS)
Expertise in Live Operations:Player analytics, attribution, and
ad optimization
• Cross Promotion System
• App Store Optimization
• Platform Relationships
• Data Analytics
300+ Games
317,000+ Daily Installs
11m+ MAU
450m+Installs
P L AY E R & G A M E M E T R I C SWe Have Built a Robust & Defensible Network
M e t r i c s a s o f Q 3 2 0 1 7 :
· Average DAUs – 692,000
· Average MAUs – 11.7 million
· Average New Daily Downloads – 317,000
· Cumulative Downloads – 451 million as of September 30, 2017
· Game Library – 333 active titles as of September 30, 2017
· Game Concentration – Diverse portfolio with no single game accounting for more than 20%
of total revenues during the twelve months ended September 30, 2017
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F U T U R E O P P O R T U N I T I E SVirtual Reality (VR) and Augmented Reality (AR)
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• VR likely had its first $1 Billion year in 2016.* The VR
industry is expected to hit $30 Billion by 2020**
• The Company has released several prototype VR
games as it gathers data before pursuing a more
significant VR product
* Deloitte Global
**DigiCapital, April 201521
• The AR industry is expected to hit $120 Billion by
2020**
• Apple recently announced “the largest AR platform
in the world.” The Company sees this as a significant
opportunity given its strength on iOS
F U T U R E O P P O R T U N I T I E SPublishing and Acquisitions
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• Pursue publishing transactions that leverage our
network, platform relationships, and operational
excellence
• There are significant opportunities for expanding our
gaming IP to new platforms
R E V E N U E
O P. I N C O M E ( L O S S )
N E T I N C O M E ( L O S S )
A D J U S T E D E B I T D A*
C A S H
T O TA L A S S E T S
T O TA L L I A B I L I T I E S
S T O C K H O L D E R S ’ E Q U I T Y
$2,448,051
(893,718)
(1,924,008)
522,892
1,487,196
2,837,097
1,080,043
1,757,054
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12 monthsDEC 31, 2015
(audited)
* Unaudited. See Adjusted EBITDA footnote on page 3.
12 monthsDEC 31, 2016
(audited)
$3,731,774
(12,263)
(2,347,675)
871,268
590,461
2,415,171
1,296,500
1,118,670
F I N A N C I A L H I G H L I G H T S+30% Annual Bookings Growth Target for 2017-2019
K E Y FA C T S
SHARE STATISTICS
Trading Symbol (OTC) TAPM
Stock Price (12/01/17) $0.16
CommonShares Outstanding (06/30/17) 59.5mm
30d Avg. Volume (12/01/17) 113,047
Market Cap (12/01/17) $10.1mm
Float (12/01/17) 12.1mm shares
Insider Ownership (12/01/17) 58%
OTHERPersonnel 10 FTE
Fiscal Year Ends 12/31
Website Tapinator.com
Corporate HQ New York, NY
Legal Quick Law Group
Auditor Liggett & Webb, P.A.
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