Tapinator, Inc. (OTC:TAPM)

Tapinator, Inc. (OTC:TAPM) ($0.65; $1.7M market cap), a developer and publisher of category leading games for mobile platforms, announced Q3 2023 results:

• Sales of $1.17 million vs $1.30 million in the prior year
• GAAP loss of $0.11 vs EPS of $0.05
• Non-GAAP EPS of $0.06 vs EPS of $0.03 (We caution using non-gaap numbers as some of the non-cash charges seem to be recurring).

Unfortunately, unlike the last several press releases, management did not provide any commentary as it had in the past on how the mobile gaming industry was bottoming. 

Tapinator, Inc. (OTC:TAPM) ($0.60; $1.6M market cap), a developer and publisher of category leading games for mobile platforms, announced Q2 2023 results:

• Sales of $1.03 million vs $1.39 million in the prior year
• EPS of $0.03 vs loss of $0.03

“While we continue to invest in both existing and new products within the social casino area, we are also seeking alternative growth opportunities for our shareholders, both within mobile gaming itself as well as within other industries/markets that can offer more significant growth prospects for the Company… 

We believe that all three of the product development directions summarized above are important for the growth of our business. However, we are especially excited about our upcoming blackjack game. In the mobile gaming space, current blackjack offerings focus on either solitary play (one player sitting at a table alone) or on a multiplayer experience (emulating a traditional blackjack table). We believe that there is significant opportunity for a third type of experience on mobile, focused on live, community play. We look forward to providing additional information on this product closer to its Q4 launch."

Tapinator, Inc. (OTC:TAPM) ($0.68; $1.8M market cap), a developer and publisher of category leading games for mobile platforms, announced Q1 2023 results:

• Sales of $1.01 million vs $1.68 million in the prior year
• EPS of $0.07 vs EPS of $0.27

"In Q1 2023, we saw a decrease in revenue primarily stemming from the continuing decline of our legacy rapid-launch business and our NFT publishing business. Both of these declines were expected by us and we previously communicated the challenges that we're seeing within these two lines of business. Within our core social casino business, the decrease that we saw is being caused by an industry-wide contraction for mobile gaming. At this point, we believe that the contraction has slowed, and the business has stabilized. Nonetheless, we believe that it is important to seek growth opportunities both within mobile gaming itself as well as externally within industries/markets that are growing rapidly.”

Tapinator, Inc. (OTC:TAPM) ($1.20; $3.2M market cap), a developer and publisher of category leading games for mobile platforms, announced Q3 2022 results:

• Sales of $1.3 million vs $1.5 million in the prior year
• EPS of $0.05 vs EPS of $0.18

Overall market conditions within both the mobile gaming and crypto markets continued to decline in Q3 2022.  According to research firm Sensor Tower, mobile spending declined at a rate of 4.8% year-over-year during the third quarter of 2022.  The 3% decrease in our Category Leading Games Bookings during the quarter would indicate that our top-line performance in our core business was in-line to slightly above the market overall.  As discussed previously we are no longer investing in our Rapid Launch Games thus we would expect continued degradation of that revenue stream over time. Furthermore, we have reduced our focus on NFT publishing given the continued contraction and volatility of those markets.  Accordingly, Q3 reflects significant decline in NFT publishing bookings, and we expect such decline to repeat in both Q4 of 2022 and Q1 of 2023.

Given these factors and the continued challenging macro conditions, we would expect to see at least two more quarters of year-over-year company-wide contraction.  We continue to believe that our historic focus on maintaining a lean cost structure has positioned us well to withstand such contraction and that continued investments in our franchise games, combined with our more recent investments in game marketing will begin to yield meaningful results for the Company as we look out to 2023 and beyond.  We are not providing financial guidance at this time."