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Tapinator, Inc. (TAPM)

Tapinator, Inc. is a developer and publisher of mobile games on the iOS, Google Play and Amazon platforms. The Company’s portfolio includes over 300 mobile gaming titles generating hundreds of thousands of daily player downloads that provide predictable and attractive returns through the sale of branded advertisements and consumer app store transactions. Tapinator, based in New York and with product development teams located throughout the world, was founded in 2013 by a visionary team that has been building mobile games and applications since 2007 and has achieved multiple successful exits.

Tapinator’s business strategy includes the creation of a select number of best-in-class Full-Featured Games, such as ROCKY™ and Solitaire Dash, which provide game players with more in-depth, unique content that supports long-term retention and generates higher investment returns. The Full-Featured Games model creates the potential for sustainable $100+ million franchise-type games that have product lifespans of at least five years. Tapinator uses a proprietary set of dynamic development and marketing processes factored upon gaming category, estimated player retention and projected player profitability.

Recent successful launches of two new Full-Featured titles – Big Sport Fishing 2017 and Dice Mage 2 – were recognized on the Apple iOS platform as “New Games We Love.” During the game’s first seven days after global release, Big Sport Fishing 2017 received well over 520,000 player downloads. Four new titles, ColorFill, Divide & Conquer, Shadowborne and Fusion Heroes, are in the pipeline for release in Q4 2017 and Q1 2018 as well. The formula for these game combines proven gameplay elements with best-in-class monetization systems, supplemented by Tapinator’s strong creative team of developers, strategists and product specialists. The company’s Rapid-Launch Games division also saw increasing player interest recently with the launch of Fidget Spinner Superhero and Scary Shark Evolution 3D.

Tapinator’s diversified revenue sources includes 54 percent from advertising placed within its mobile games and 46 percent from consumer app store purchases. The Company limits advertising placements to between game levels and also runs rewarded video ad units that are tied directly into the game’s currency. Tapinator’s portfolio includes more than 300 active titles, with no single game accounting for more than 25 percent of total revenues during the first half of 2017.

As Tapinator looks toward the future, opportunities in Virtual Reality (VR) and Augmented Reality (AR) show great promise. The company has released several prototype VR games to gather data before pursuing a more significant VR product. Recent market reports suggest that the VR industry will hit $30 billion by 2020 and the AR industry will surpass that with a projected $120 billion. Tapinator also plans to pursue publishing transactions that leverage its network, platform relationships and operational excellence. Significant opportunities for expanding Tapinator’s gaming IP to new platforms such as Steam and leading messaging apps are also on the horizon. The company is targeting a 30+ percent annual bookings growth target for 2017-2019.

 

Investment Considerations
  • Diversified portfolio of 300+ mobile gaming titles with hundreds of millions of players
  • Full-Featured Game revenues expected to increase more than 200% in 2017 with launch of new games and other mobile entertainment updates
  • Worldwide mobile gaming revenue projected to reach $74.6 billion by 2020 with mobile advertising revenue topping $166 billion by 2018
Additional Resources