Gambling in the USA
Tapinator Announces Q1 2020 Financial Results
Tapinator, Inc., a developer and publisher of category leading apps for mobile platforms, today announced unaudited financial results for the three months ended March 31, 2020, and the filing of its quarterly report for the periods ended March 31, 2020 and 2019. The quarterly report and financial statements may be found at http://www.otcmarkets.com/stock/TAPM/disclosure. The results provided below replace, in its entirety, any guidance or projections previously issued by the Company.
For the quarter ended March 31, 2020, Tapinator achieved revenue of approximately $914,000, bookings* of approximately $977,000, net loss of approximately $267,000, and adjusted EBITDA* of approximately $90,000. The Company’s revenue and bookings* represent year-over-year improvements of 12% and 1%, respectively.
*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 positive adjusted EBITDA (a non-GAAP measure) for the relevant periods.
|
Financial Highlights |
||||
|
Quarter Ended |
||||
|
March 31 |
Change |
|||
|
2020 |
2019  |
(%) |
||
|
GAAP Results: |
||||
|
Revenue |
$913,855 |
$813,055 |
12% |
|
|
Net Loss |
$(267,203) |
$(659,703) |
NM(1) |
|
|
Diluted Net Loss Per Share |
$(0.48) |
$(1.20) |
NM(1) |
|
|
Non-GAAP Results: |
||||
|
Adjusted EBITDA |
$90,220 |
$(67,067) |
NM(1) |
|
|
Bookings: |
||||
|
Category Leading Apps |
$714,658 |
$644,278 |
11% |
|
|
Rapid-Launch Games |
$262,650 |
$322,397 |
-19% |
|
|
Total Bookings |
$977,308 |
$966,675 |
1% |
|
|
1 Percentage change not meaningful |
||||
Ilya Nikolayev, CEO of Tapinator commented, “During the first quarter of 2020, we continued to grow our Category Leading Apps business and, in particular, we are proud of the additional strides that we have made with our Live Operations (or “Live Ops”) capabilities. These LiveOps initiatives have resulted in strong improvements to the monetization of our daily active users and increases to our average revenue per daily active user. We are continuing to invest in LiveOps in 2020 with daily goals and customized stats that will soon launch in Video Poker Classic as well as new upcoming limited time events including Cinco de Mayo, Mothers’ Day and Memorial Day Offers and Jackpots.
With regards to new launches, we are very excited about the recent global launch of our new game, SPEED – Heads Up Solitaire. SPEED is a synchronous, heads-up card game where users compete with real players around the globe, in real time. The gameplay is based on a game that is proven in the real world and we believe that the metagame, social functionality, and virtual currency system that we have built will translate into strong retention and monetization metrics. We are also very excited that SPEED is currently featured by Apple, within a number of countries, in its “New Games We Love” category.
Given the continued uncertainty surrounding the current coronavirus situation, we believe that people are increasingly seeking entertainment that they can experience from the safety of their home. Our mobile game offerings fill this need. In fact, our mission is to offer players social casino entertainment anytime, anywhere. We believe that “social” play from the user’s mobile device will become increasingly compelling given the current climate. Our upcoming game, SPEED, is a great example of a product that is traditionally played between friends and family in the real world yet can now be played anytime, anywhere as a truly heads-up, social game.”
Andrew Merkatz, President & CFO of Tapinator, also commented on the Company’s results, “We are pleased with the following accomplishments during the first quarter of 2020:
- We achieved quarterly revenue of approximately $914,000 representing year-over-year growth of 12%
- We reported quarterly Bookings* of approximately $715,000 within our core Category Leading Apps business, representing year-over-year growth of 11%
- We implemented significant cost containment measures during the most recent quarter. These measures contributed to quarterly adjusted EBITDA* of approximately $90,000, which compares to an adjusted EBITDA* loss of approximately ($67,000) recorded in Q1 2019. These measures also contributed to a significant reduction in our net loss which narrowed to approximately ($267,000) in the first quarter of 2020 which compares to a net loss of approximately ($660,000) recorded in Q1 2019.
- We made continued investment in our LiveOps capability yielding further monetization improvements in certain core games, an investment we believe crucial to the long-term success of our Category Leading Apps strategy.
The mobile game industry is expected to generate $100 billion in revenue in 2020, up from $86 billion in 2019, according to App Annie, the mobile data and analytics researcher. Based on the report, games are now 72% of all spending in the app stores. Mobile games saw 25% more spending than all other games combined in 2019. Mobile game spending was 2.4 times the spending for PC and Mac games, and 2.9 times spending for home game consoles in 2019. Tapinator has become a seasoned operator in this massive and lucrative market, and we believe we are well positioned to continue to deliver strong growth and product leadership in the coming years.”
Current Outlook
It is too early to quantify and distinguish the impact of the coronavirus pandemic for our business. In our games, we have seen an increase in the number of downloads as well as user engagement and also some uptick in revenues in March and April. Despite this uptick, we believe the pandemic creates significant uncertainty regarding the longer term impact on consumer and advertising spending within mobile apps. Despite this uncertainty, we continue to have strong conviction regarding our Category Leading Apps business, and specifically our focus on social casino games. The strategic changes we implemented in 2017-2018, shifting from Rapid-Launch Games to Category Leading Apps, and the initiatives we began in 2019 to focus on LiveOps both continue to pay off. We have also seen positive early results from cost containment measures that we undertook during the first quarter of 2020 that we believe will continue to yield improved operating results moving forward.
While we are not providing financial guidance at this time, we continue to believe we are well positioned to again deliver strong company-wide revenue and adjusted bookings growth in 2020. This growth is expected to be derived from our seasoned franchises such as Video Poker Classic and Solitaire Derby, combined with recent game launches such as SPEED. We also anticipate significantly improved adjusted EBITDA and significantly narrowed net loss in 2020. Based on the Company’s strong financial performance over the past twelve months, the repeatable nature of the Company’s Category-Leading App revenues, its strong product portfolio, its significant operating leverage, and its attractive market positioning at the intersection of mobile entertainment and online casino style gaming, we continue to believe Tapinator is currently fundamentally and deeply undervalued. The Company’s management and independent board of directors remain committed to working diligently and prudently on behalf of all of its shareholders to both grow and unlock this value in 2020 and beyond.
*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 Income, which are prepared in accordance with United States generally accepted accounting principles (“GAAP”). Management uses Bookings and adjusted EBITDA internally in analyzing our financial results to assess operational performance and liquidity. The presentation of Bookings and adjusted EBITDA is not intended to be considered in isolation or as a substitute for the financial information prepared in accordance with GAAP. We believe that both management and investors benefit from referring to Bookings and adjusted EBITDA in assessing our performance and when planning, forecasting and analyzing future periods. We believe Bookings and adjusted EBITDA are useful to investors because it allows for greater transparency with respect to key financial metrics we use in making operating decisions and because our investors and analysts use them to help assess the health of our business. Below, we have provided reconciliations between our historical and projected Bookings and adjusted EBITDA to the most directly comparable GAAP financial measures below. Some limitations of Bookings and adjusted EBITDA are as follows:
- Bookings does 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 and restructuring expense;
- Adjusted EBITDA does not reflect income tax expense;
- Adjusted EBITDA does not include other income or expense, which includes foreign exchange gains and losses and interest income or expense;
- Adjusted EBITDA excludes depreciation and amortization of intangible assets and impairment of capitalized software. Although depreciation and amortization and impairment of capitalized software are non-cash charges, the assets being depreciated and 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), Diluted Net Income (Loss) Per Share, Cash Flow from Operations, Operating Income (Loss) and our other financial results presented in accordance with GAAP.
|
Reconciliation of GAAP to Non-GAAP Results |
||
|
Quarter Ended |
||
|
March 31 |
||
|
2020 |
2019 |
|
|
Reconciliation of Net Loss to Adjusted EBITDA: |
||
|
Net loss |
$(267,203) |
$(659,703) |
|
Interest expense, net |
13,423 |
1,773 |
|
Tax expenses |
– |
– |
|
Amortization of capitalized software development |
116,080 |
184,699 |
|
Depreciation and amortization of other assets |
925 |
1,790 |
|
Stock-based expense |
130,602 |
404,375 |
|
One-time financing costs |
96,393 |
– |
|
Adjusted EBITDA |
$90,220 |
$(67,067) |
|
Reconciliation of Revenue to Bookings: |
||
|
Revenue |
$913,855 |
$813,055 |
|
Change in deferred revenue |
63,453 |
153,620 |
|
Bookings |
$977,308 |
$966,675 |
About Tapinator
Tapinator Inc. (OTC: TAPM) develops and publishes category leading apps for mobile platforms, with a focus on social casino games. Tapinator’s library includes more than 300 titles that, collectively, have achieved over 500 million mobile downloads, including notable properties such as Video Poker Classic and Solitaire Derby. Tapinator generates revenues through the sale of branded advertising and via consumer transactions, including in-app purchases and subscriptions. Founded in 2013, Tapinator is headquartered in New York, with product development and marketing teams located in North America, Europe and Asia. Consumers can find high-quality mobile entertainment wherever they see the ‘T’ character logo, or at http://tapinator.com.
Gambling in the USA
Industry veteran joins North American operator as chief interactive gaming officer to drive growth in iCasino states and efficiencies in its online sportsbook
Delaware North, a global hospitality and entertainment company with a significant gaming division, has named industry veteran Lee Terfloth as chief interactive gaming officer as it pushes ahead with ambitious plans for its digital offering.
Terfloth has an impeccable track record across some of the biggest land-based and online gaming operators in North America, including Borgata, Resorts Digital, Hard Rock and, most recently, Prime Sports, where he was chief executive officer.
As chief interactive gaming officer at Delaware North, Terfloth will be responsible for two core objectives: Expanding the operator’s Betly mobile sportsbook and casino brand into additional iGaming states while also reviewing its sportsbook business to improve operational efficiency.
The appointment of Terfloth comes hot on the heels of news that Delaware North has chosen to migrate to Playtech’s powerful online sportsbook and casino platform in the states of Ohio, Arkansas, Tennessee and West Virginia.
Jason Gregorec, president of Delaware North’s gaming division, said:
“Lee Terfloth is a high-caliber senior iGaming executive who has played a key role in launching and growing interactive gaming divisions at some of the most established and renowned gambling operators in North America.
“We are delighted to be able to leverage this experience and knowledge as we ramp up our own online gaming division via our Betly brand, which has already gained traction in key online sports betting and iGaming states such as Ohio, Arkansas, Tennessee and West Virginia.
“I’d like to officially welcome Lee to the team and look forward to working with him as we deploy our ambitious plans for online gaming across regulated U.S. states,” Gregorec said.
Lee Terfloth, chief interactive gaming officer at Delaware North, added: “I’m thrilled to join Delaware North at a pivotal time for the business as it shifts up a gear with its activity in the online gaming space.
“Betly is an incredibly strong brand and now that we are migrating to the Playtech platform, we have the technological foundation to really level up our activity in terms of markets and the quality of the experience we offer to players.
“I have plenty of experience working with operators at this stage in their lifecycle and look forward to working with the incredible team we have in place to not only meet but exceed the goals the business has set for its interactive division,” Terfloth said.
Gambling in the USA
Mr. Gamble Expands Across the US: CMO Paul Puolakka Reflects on the Growth into Pennsylvania and West Virginia
Expanding Mr. Gamble’s footprint into Pennsylvania and West Virginia is a significant milestone for us. This is not just about entering new markets – it is about strengthening our position in the dynamic US iGaming sector.
By securing licences in these crucial states, we are readily available to deliver tailor-made experiences that align with the preferences of locals within these US states, thus enhancing our competitive advantage.
As the Chief Marketing Officer, I have played a key role in his expansion. My deep understanding of market trends and expertise in affiliate marketing has been vital in navigating these new territories. My focus has been on ensuring that our entry into these US states is not only successful but sustainable in the long term.
As we venture into these new states and new markets, I am more than confident that Mr. Gamble is going to be a loyal companion and guide for many players looking to take that first step towards casino gambling.
The Strategic Vision Behind Mr. Gamble’s US Expansion
Expanding into Pennsylvania, and West Virginia is a strategic move that aligns perfectly with Mr. Gamble’s growth plans. These states have been specifically chosen for their thriving and expanding markets, clear regulatory frameworks, and strong player engagements.
West Virginia has shown a growing interest in online gambling, making it a tempting choice for expansion.
Our success in New Jersey was a prime factor in this decision. The positive feedback and solid performance of our site have validated our approach and showcased the potential for growth in other states. This experience has given us a good confidence boost as we venture into these new markets. We are confident that our offerings as well as adherence to regulatory standards will resonate with our readers.
For Mr. Gamble, entering West Virginia is a natural progression. These new states provide markets with strong regulations that give priority to player safety. Given our achievement in New Jersey, I am optimistic that our site will connect with players in these states just as effectively.
Positive Response from Our Readers
The feedback we have received since expanding into the US has been exceptionally gratifying. Both our operator partners and readers have shown great enthusiasm for what Mr. Gamble has to offer. Our dedication to transparent high-quality content and user-centric experience has clearly struck a chord with the US audience.
From my point, the feedback has been overwhelmingly positive. Readers have praised our honest reviews and transparent information, highlighting their satisfaction with the reliability of our content. The feedback mirrors our commitment to building trust and delivering good value to our readers.
Our casino operator partners have also expressed their appreciation for our marketing approach. They have noted that our effective marketing strategies and transparent methods have contributed significantly to their positive experiences.
One partner remarked, ‘Mr. Gamble’s clear, straightforward approach and dedication to high-quality content and exclusive bonus offers have made our collaboration both smooth and rewarding.’
What Players in Pennsylvania and West Virginia Can Expect
Players in Pennsylvania and West Virginia are in for a treat with Mr. Gamble’s arrival. Players can enjoy reading comprehensive reviews of licensed and regulated casino sites, get their hands on exclusive casino bonuses and enjoy a wide range of games by the world’s leading game developers. Whether you are accessing our site from your laptop or mobile device, we have optimised the experience so you can navigate the site without any issues.
We are also rolling out state-specific casino bonuses. Expect generous welcome casino bonus offers, free spins, no deposit bonuses and match deposit offers designed to boost your bankroll. We regularly update our page so you always have access to the latest casino promotions.
Mr. Gamble’s website features a user-friendly design with handy filtering options, making it easy to find exactly what you are looking for. The site has been created with different player needs in mind, ensuring a smooth and enjoyable experience as you explore the best casinos and bonuses available in your state.
Promoting Responsible Gambling: Play Smart with Mr. Gamble
At Mr. Gamble, our dedication to responsible gambling is unwavering. We strive to ensure that our readers enjoy a secure and enjoyable experience by featuring only licensed casinos that follow regulatory standards religiously.
Responsible gambling is a fundamental principle for us as we enter the US market. We are committed to equipping readers with the necessary tools and resources they may require to gamble responsibly. Every casino we promote meets the highest standards for fairness, security and player protection.
Our team’s effort has been key to our successful expansion into these new states. From content to development and marketing, every department has worked tirelessly to achieve our goals. Their hard work is the driving force behind our progress and I am incredibly proud of this monumental achievement.
The potential in the US market is enormous and the positive feedback we have received is only the tip of the iceberg. As we continue to grow, I am excited about what the future holds and that the presence of our site in these states will only strengthen, setting the stage for further expansion in the years to come.
Mr. Gamble: Gamblers’ One Stop Shop
Mr. Gamble stands at the very front of iGaming affiliating, offering in-depth and frank casino reviews as well as expert insights for gamblers. With a strong presence across multiple regulated markets, we are dedicated to delivering reliable information while promoting responsible gambling practices.
Since launching, Mr. Gamble has gained recognition and scooped up awards for its commitment to transparency and fairness. We pride ourselves on providing unbiased reviews of online casinos, slot and casino games and clear terms for casino bonuses and promotions.
Our main goal and mission is to equip players with all the necessary information to help them make informed choices, thus ensuring a safe and enjoyable gaming experience.
Gambling in the USA
Snoqualmie Casino Announces Exciting Rebranding to Snoqualmie Casino & Hotel Ahead of Major Expansion
Snoqualmie Casino has announced its rebranding to Snoqualmie Casino & Hotel, reflecting an exciting new chapter in the venue’s history as it embarks on a much-anticipated expansion. Set for completion in mid-2025, this project promises to elevate the guest experience, making Snoqualmie Casino & Hotel a premier destination for entertainment, relaxation, and culinary excellence.
The cornerstone of the expansion is the construction of a luxurious hotel, which will offer guests unparalleled comfort and stunning views of the Snoqualmie Valley and Mount Si. With a focus on sustainability and modern design, the hotel will feature upscale accommodations, a full-service destination spa, and amenities that cater to both leisure and business travelers. Plus, there are architectural details inspired by Snoqualmie culture from a modern slant roof hotel design representing the original longhouses of the Snoqualmie Tribe’s ancestors to carefully chosen artwork placed throughout for guests to enjoy.
Snoqualmie Casino & Hotel’s destination spa will offer an immersive escape that blends relaxation with the healing power of nature. Nestled in the serene landscapes of the Pacific Northwest, the spa provides a range of rejuvenating treatments. Experience the perfect blend of wellness and nature where luxury, tradition and innovation come together for an incredibly transformative experience.
“It is my honor and privilege to announce that Snoqualmie Casino has now become Snoqualmie Casino and Hotel. Over the past three years, the Snoqualmie Tribe and Casino have been diligently working to bring a one-of-a-kind, world-class hotel to the Snoqualmie Valley,” said Interim CEO Mary Lou Patterson.
In addition, Snoqualmie Casino & Hotel will expand its gaming floor, introducing an array of new options to enhance the entertainment experience for guests. This expansion will include the latest slots, electronic and traditional table games, as well as a dedicated high-limit gaming area for discerning players seeking a more exclusive gaming experience.
One of the highlights of the expansion is the development of a state-of-the-art 2000-seat entertainment and convention center. This versatile venue will host a variety of events, from concerts to conferences, positioning Snoqualmie Casino & Hotel as a key player in the region’s entertainment landscape. With cutting-edge technology and a focus on guest comfort, the center will attract top-tier talent and events, making it a must-visit destination.
In addition to the award-winning Vista Prime Steaks & Seafood, 12 Moons, and Falls Buffet, a new sports bar and grill will be introduced to provide patrons with the ultimate game day experience. Other new dining options, set to open later, will showcase local ingredients and flavors, ensuring a memorable culinary experience for guests.
Snoqualmie Casino & Hotel recently launched a brand-new valet garage. The dual level indoor and outdoor structure, with 600 additional spaces, doubles the previous capacity for valet parking creating easier access into the casino. This is the first piece of new development at Snoqualmie Casino & Hotel that has opened for immediate use. The entire project anticipates creating numerous job opportunities for local residents, contributing to the economic growth of the Snoqualmie area.
-
Gambling in the USA5 days agoIndustry veteran joins North American operator as chief interactive gaming officer to drive growth in iCasino states and efficiencies in its online sportsbook
-
Canada7 days agoJackpot Digital Receives Approval from AGCO as a Registered Gaming Supplier
-
awards7 days agoYaamava’ Resort & Casino at San Manuel Named #1 Best Overall Casino Outside of Las Vegas and #1 Best Native American Casino in 2024 Newsweek Readers’ Choice Awards
-
Latest News6 days agoSBC Summit Rio to welcome EDM legend Afrojack as INFINITY headliner, supported by Brazil’s Dubdogz
-
Latest News7 days agoSPGA Introduces Code of Conduct to Highlight Member Commitment to Compliance and Safety in Social and Promotional Gaming
-
Compliance Updates7 days agoTaDa Gaming Celebrates Further Brazilian Certification Across its Portfolio
-
Gaming2 days ago10-15% Of Gamers In Florida Show Signs Of Gaming Addiction: Here Are 10 Signs Your Kid Is Suffering From It (And How You Can Help)
-
Compliance Updates7 days agoDelasport Now GLI-Certified for Sports Betting in Brazil