Ticker: TAPM. An Emerging Mobile Gaming Leader

Transcription

1 Ticker: TAPM An Emerging Mobile Gaming Leader FEBRUARY 2015

2 FORWARD LOOKING STATEMENTS 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 Words such as 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 forwardlooking 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 filings with the OTC Market Group, which are available through 1

3 MOBILE GAMING GROWING TO $41B BY 2017 The Market is Projected to More Than Double with 23.5% CAGR $41B by 2017 $38B by 2014 $17B by 2013 Worldwide Motion Picture Box Office Revenues 2

4 MOBILE GAMING IS BOOMING 70% of Smartphone users will play a mobile game in 2015 Source: Newzoo 2014 Global Games Market Report & Service 3

5 A WELL POSITIONED INDUSTRY LEADER Over 80 Titles with a New Game Released Every Week Two Sides of the Business Rapid Launch Games Full Featured Games Launching 1-2 games weekly Using engines, game development has become faster, more cost efficient over time Profitable, low risk Monetizes primarily through advertising 3 to 6 month development timeline Variety of categories including RPG, Quick-FIx, & Social Casino More risk but ability to generate home run successes Working with branded and celebrity IP Monetizes primarily through in-app purchases 4

6 A WELL POSITIONED INDUSTRY LEADER We Design, Develop, & Publish Original Mobile Games We have launched three Full Featured Games on ios. All three reached the Top 50 in Games TOP 50 JAN Million Player Network Ilya Nikolayev CEO Interviewed on Bloomberg 5

7 A WELL POSITIONED INDUSTRY LEADER Creating Original Content on the Pulse of Pop Culture Two Recent Celebrity Games with Others in Development Nik Wallenda Sky Balance Melissa Etheridge Song-Based Game 6

8 A WELL POSITIONED INDUSTRY LEADER A Low Cost, Profitable Producer of Original Mobile Games $6.5K 230% $21.6K Average Cost per Game Average Revenue per Game Average ROI per Game Historical data from 51 rapid launch games from 7/31/13 through 8/31/14 7

9 FREEMIUM BUSINESS MODEL We Monetize User Engagement Ads IAP + Paid Downloads 80% of Revenue 20% of Revenue 8

10 FREEMIUM BUSINESS MODEL Our Advertising Does Not Disrupt Gameplay 1 No ads during gameplay 2 Ads Shown Between Levels 3 When Game Ends 4 Users can Purchase New Levels of Play 9

11 FREEMIUM BUSINESS MODEL Our In-App Purchases Enhance Gameplay 1 Free to Play 2 Offer Premium Functionality 3 Monetize Gameplay with Consumables & Non-Consumables 10

12 MOBILE MONETIZATION GETTING STRONGER Users increasingly spend more money on apps as mobile grows Compound Annual Growth Rates: App Rev GROWTH 52.3% CAGR % CAGR Mobile Adoption TIME Source: DigiCapital 11

13 GAMES DOMINATE MOBILE APP REVENUE Games = ~74% of Revenue Global mobile apps/games revenue ($B) Games monetize ~4x more effectively than all other mobile app types GAMES = ~74% REVENUE Mobile Games Other app categories Source: DigiCapital 12

14 COMPETITIVE LANDSCAPE Rapid Launch and Full Featured Strategies Complement Each Other TAPINATOR RAPID LAUNCH (50 Million Users) Fast Dev TAPINATOR FULL FEATURED (Drive Users from Rapid Launch) Established Game Play Original Game Play GLU Zynga King Slow Dev 13

15 COMPETITIVE ADVANTAGE Developer Advantage Speed Cost Quality Expertise 14

16 COMPETITIVE ADVANTAGE Publisher Advantage New Game Cross Promotion System (50+ Million Player Network) Platform Best Practices New Game App Store Optimization New Game 15

17 FULL FEATURED GAME PIPELINE Combo Quest First of Its Kind: Time-Tap Mechanic Addictive Gameplay that Strengthens Hand-Eye Coordination Mass Appeal RPG for All Ages Version 1.0 Launched on 01/08/15 Featured by Apple as a Best New Game Reached Top 25 Paid Games Version 1.1 Launching March

18 FULL FEATURED GAME PIPELINE Video Poker VIP Why Mobile Casino? Mobile now accounts for 46% of all social casino game revenues generated worldwide and will likely account for a majority sometime in the next few quarters. Why Video Poker? Video Poker is underrepresented on mobile Substantial driver of revenue in real money gaming Why Unique? Applying leveling mechanics to video poker increases engagement Launch Date March 2015 * Source: Eilers Research Q

19 FULL FEATURED GAME PIPELINE Burn It Down First of Its Kind: Unique sidescrolling horror puzzle game Beautiful pixel graphics & effects A storyline filled with mystery Custom voiceovers with voice actors used for each game character Intuitive, simple controls - left/right with jumping and repelling off of walls accomplished by adusting the speed Launching April

20 RECENT ACQUISITION: INAPPFUEL, INC. Patent-Pending Casino Layer SDK Increases in-app purchases and game retention through minigames Provides revenue opportunity in other developers games Establishes relationship with potential acquisition targets 15% to 30% 60% 33% Increase in IAP transactions Average engagement percentage 19

21 TEAM BIOS Management IIYA NIKOLAYEV - Chief Executive Officer Co-Founder and CEO of Familybuilder until the sale of the Company to Intelius in Grew the business to profitability, over 45 million users on the web, and over 2 million users on mobile (ios and Android). Prior to Familybuilder, worked in banking for JP Morgan. Graduated cum laude from New York University. KHURRAM SAMAD - Chief Technology Officer Founded GeniTeam, an outsourced development Company focused on mobile with over 80 developers in house. Mr. Samad is an experienced leader of offshore technical teams with access to superb local talent. Mr. Samad earned a BS in Computer Science from National University of Computer and Emerging Sciences and an MBA from LUMS. GEORGI DARAKEV - Lead Game Engineer Led 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. Bachelor s in Computer Science from Dowling College. TEYMOUR FARMAN-FARMAIAN - Senior Advisor Senior marketing and strategy leader within mobile and gaming. Mr. Farman-Farmaian was formerly the GM of Strategic Partnerships at Zynga, CMO at Spotify, and Senior Director of Sales at Google. ROBERT CRATES - Director Over 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. 20

22 FINANCIAL HIGHLIGHTS (Unaudited) REVENUE 6 months (inception) DEC 31, 2013 $130, months DEC 31, 2014 $943,449 EBITDA 70,921 91,714* ADJUSTED EBITDA 70, ,923** NET INCOME 55,157 (20,054)* TOTAL ASSETS 137,219 1,577,230 STOCKHOLDERS EQUITY 62,157 1,074,524 * 2014 figures include an audit fee accrual of $42k (no audit fee accrued in 2013) and a one-time impairment loss of $156k ** Adjusted EBITDA excludes a one-time impairment loss of $156k 21

23 BALANCE SHEET(Unaudited) ASSETS Cash and Cash Equivalents Accounts Receivable Fixed Assets, Net Intangible Assets, Net Investments Other TOTAL DEC 31, 2013 $12,418 34,199 2,158 72, , ,219 DEC 31, 2014 $121, ,681 17,500 1,268,383 19,086 19,840 1,577,230 LIABILITIES & EQUITY Current Deferred Revenue Notes Payable Total Stockholders Equity TOTAL $75, , ,219 $186,252 55, ,454 1,074,524 1,577,230 22

24 KEY FACTS SHARE STATISTICS Trading Symbol (OTC) TAPM Stock Price (2/25/15) $0.30 Shares Outstanding 55.0mm 30d Avg. Volume 50,869 CAP STRUCTURE (a/o 12/31/14) Cash on Hand Long Term Debt Shareholder Equity $0.1mm $0.3mm $1.1mm Market Cap $16.0mm OTHER Personnel 20 Fiscal Year Ends 12/31 Website Corporate HQ Auditor Tapinator.com New York, NY Liggett, Vogt & Webb, P.A. 23

25 THANK YOU For more information and a copy of this presentation, go to: 24