Tapinator Announces 2022 Annual and Fourth Quarter Results
Tapinator, Inc. (OTC: TAPM) reported unaudited financial results for the year ended December 31, 2022, revealing a 5% decline in revenue to $5.5 million and a 20% decrease in bookings to $5.4 million. Net income dropped 57% year-over-year to $285,000, with an adjusted EBITDA decline of 22% to $1.3 million. The quarterly results show a 31% revenue drop to $1.2 million and an adjusted EBITDA decrease of 54% to $270,000. The company focuses on improving existing products and expanding marketing efforts despite challenges in the mobile gaming sector and NFT market.
- Continued investment in product enhancements and marketing strategies.
- Promising performance metrics from Keno Vegas indicating potential future growth.
- 57% drop in net income year-over-year.
- 20% decrease in bookings year-over-year.
- 31% decline in quarterly revenue compared to the previous year.
- Revenue Decreases
- Bookings* Decrease
- Net Income Decreases
- Adjusted EBITDA* Decreases
- Basic and Fully Diluted EPS of
The annual 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 year ended
For the three 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 loss, resulting in adjusted EBITDA (a non-GAAP measure) for the relevant periods.
Financial Highlights
Quarter Ended | Year Ended | ||||||
2022 | 2021 | % Ch. | 2022 | 2021 | % Ch. | ||
GAAP Results: | |||||||
Revenue | -31 % | -5 % | |||||
Operating Income (Loss) | ( | NM(1) | -41 % | ||||
Net Income (Loss) | ( | ( | NM(1) | -57 % | |||
Net Income (Loss) margin % | -51 % | -19 % | 5 % | 11 % | |||
Net Income (Loss) Per Share - Basic | ( | ( | 96 % | -58 % | |||
Net Income (Loss) Per Share - Diluted | ( | ( | 96 % | -57 % | |||
Weighted avg. common shares outstanding - basic | 2,725,439 | 2,824,810 | 2,802,109 | 2,801,440 | |||
Weighted avg. common shares outstanding - diluted | 2,726,105 | 2,824,810 | 2,869,878 | 2,936,925 | |||
Non-GAAP Results: | |||||||
Bookings: | |||||||
Category Leading Games | -19 % | -3 % | |||||
Rapid-Launch Games | 26,429 | 139,539 | -81 % | 359,811 | 683,640 | -47 % | |
28,192 | 707,393 | -96 % | 258,246 | 1,158,005 | -78 % | ||
Total Bookings | -48 % | -20 % | |||||
Adjusted EBITDA | -54 % | -22 % | |||||
Adjusted EBITDA Margin % | 23 % | 35 % | 23 % | 28 % | |||
(1) Percentage change not meaningful. |
In terms of existing products, we made numerous improvements to Video Poker Classic,
In terms of new products, we launched
Overall, despite any macro-economic challenges, we will continue to be heads-down executing on our products and, we believe, will see positive results from these efforts, especially as it relates to our
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, acquisition-related transaction expenses, one-time financing expenses, contingent consideration fair value adjustments, share settlement expense, and restructuring expense;
- 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
Totals as of | Q1-Q4 2022 | Cumulative | |
# of NFTs Collected | 360 | 221 | 581 |
# of NFTs Sold | -9 | -45 | -54 |
# of NFTs Held, Cumulatively | 351 | 527 | 527 |
Cost of NFTs Collected | $ 1,198,761 | $ 1,466,684 | $ 2,665,445 |
Proceeds from Sale of Collected NFTs | (179,028) | $ (1,012,326) | (1,191,354) |
Proceeds from Sale of Digital Asset Dividends & Airdrops | - | (185,816) | (185,816) |
Cost of NFTs Collected, Net of Sales Proceeds | $ 1,019,733 | $ 268,542 | $ 1,288,275 |
Reconciliation of GAAP to Non-GAAP Results
Quarter Ended | Year Ended | |||||
2022 | 2021 | 2022 | 2021 | |||
Reconciliation of Revenue to Bookings: | ||||||
Revenue | ||||||
Change in deferred revenue | (5,582) | 524,489 | (182,786) | 876,055 | ||
Bookings | ||||||
Reconciliation of Net Income (Loss) to Adjusted EBITDA: | ||||||
Net income (loss) | ( | ( | ||||
Interest expense, net | 0 | 131,560 | (322) | 2,554 | ||
Impairment of capitalized software | 143,805 | 271,917 | 143,805 | 271,917 | ||
Share settlement agreement, non-recurring | 0 | 0 | 0 | 93,555 | ||
Amortization of capitalized software development | 120,485 | 101,849 | 367,959 | 366,005 | ||
Gain on digital asset dividends & airdrops | 0 | 0 | (145,681) | 0 | ||
Gain on extinguishment of debt | 0 | 0 | 0 | (109,231) | ||
Depreciation and amortization of other assets | 3,212 | 2,881 | 13,892 | 5,871 | ||
Impairment of digital assets | 578,811 | 402,099 | 1,031,656 | 407,943 | ||
Realized gains on sale of digital assets | (8,113) | (32,519) | (569,104) | (167,770) | ||
Realized gains on sale of investments | 0 | (8,010) | (5,091) | (8,010) | ||
Stock-based expense | 23,201 | 35,927 | 137,446 | 96,782 | ||
Adjusted EBITDA | ||||||
About
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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FAQ
What were Tapinator's revenue and net income for the year ended December 31, 2022?
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