REG - tinyBuild, Inc. tinyBuild Inc - TBLS - Trading Update

tinyBuildAnnouncement

24/06/2024 07:00

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RNS Number : 4846T  tinyBuild, Inc.  24 June 2024

24 June 2024

tinyBuild, Inc

("tinyBuild" or the "Company")

Trading Update

Publication and posting of Annual Report

 

tinyBuild, a premium video games publisher and developer with global
operations, announces a trading update and that the Company's Annual Report
and Financial Statements for the year ended 31 December 2023 ("Annual Report")
has been published and will be available on the Company's website
(www.tinybuildinvestors.com).

Highlights

·    Sales slightly ahead of expectations for the first five months of the
year, with a heavily H2-weighted release schedule

·    Strong pipeline performance, including Level Zero: Extraction, Duck
Side and Drill Core at Steam Next Fest

·    Cash and cash equivalent of mid-to-high single digit at the end of
May 2024 and, as previously communicated, the Group will continue to invest in
a disciplined manner in upcoming game releases

·    In June 2024, the Company disposed of IP associated with Surgeon Sim
to Atari for an undisclosed cash sum

 

Current Trading

The industry backdrop remains difficult with few signs of modest improvement.
Versus Evil continues to underperform, after the disappointing launch of
Broken Roads in April 2024. Despite this challenging backdrop, tinyBuild is
carefully managing its catalogue while investing in high-potential new IP and
tinyBuild's revenues have started to trade slightly ahead of expectations for
the first five months of the year.

In addition to this, the response to recent announcements gives reason for
optimism, as backed by hard data: Level Zero: Extraction and DUCKSIDE demos
are respectively in the top 3 and top 10 most played games at the ongoing
Steam Next Fest.

As at 31 May 2024, the Company had cash levels of mid-to-high single digit
demonstrating a reduced cash burn as a result of cost control measures put in
place at the end of 2023. In addition to the cash at the end of May 2024, the
Company also disposed of IP associated with Surgeon SIM to Atari for an
undisclosed sum in June 2024. As previously announced, cash and cash
equivalents is anticipated to reduce towards the half year as the Company
invests in upcoming game releases. The Group continues to have no borrowings.

Pipeline

The positive momentum is also translating in strong performance in terms of
wishlists, one of the most important indicators for future sales. The Company
added 1m new wishlists across the portfolio in the past month. Kingmakers is
now in the top 25 Most Wishlisted Games on Steam.

The release schedule remains heavily weighted towards the second half of the
year and risk remains around new launches. As a mitigating factor, the Company
remains fully focused on cost control and regularly reviews investment in new
games to align with audience validation.

Employee Benefit Trust

As at today's date, the Employee Benefit Trust holds a total of 3,937,587
ordinary shares. The EBT was set up in 2022 for the benefit of current and
future employees and will continue to act independently of the Company to
satisfy future share awards and option exercises of vested options granted.

Outlook

The pipeline for 2024 and beyond is strong and includes a number of
larger-budget (above $1m), high-potential games alongside continuous
investment in the catalogue including updates, DLCs and platform launches.

The implication of the conflict in Ukraine and the evolving macroeconomic
situation impose caution and vigilance in the medium and long term. In
particular, tinyBuild continues to carefully assess the position of its staff,
its exposure in terms of revenues and any other factor that may have an impact
on the business.

All considered, the Board remains confident the Company is on track to deliver
results in line with expectations.

Annual Report

The Company's Annual Report for the year ending 31 December 2023 is available
on the Company's website (www.tinybuildinvestors.com
(http://www.tinybuildinvestors.com) ) and it will be posted to shareholders
today.

Alex Nichiporchik, Chief Executive Officer of tinyBuild, commented:

"Our investments to create new great IP are starting to bear fruits. Four
weeks ago, we held our first ever tinyBuild Connect to showcase the most
promising pipeline we ever had, including the likes of SAND, Kingmakers, Level
Zero: Extraction, DUCKSIDE, Streets of Rogue 2, Drill Core and more."

"In a month our games added a combined one million wishlists on Steam and
players spent approximately 1.8 million hours in-game with our playtests and
demos since March 2024. These are hard numbers showing that our strategy is
working. I am excited about 2024 and beyond and I want to thank all the people
that make this possible."

 

Enquiries:

 tinyBuild, Inc                                               investorrelations@tinybuild.com (mailto:investorrelations@tinybuild.com)

 Alex Nichiporchik - Chief Executive Officer and co-founder

 Giasone (Jaz) Salati - Chief Financial Officer

 Berenberg (Nominated Adviser and Broker)                     +44 (0)20 3207 7800

 Mark Whitmore, Ciaran Walsh, Milo Bonser

 SEC Newgate (Financial PR)                                   tinybuild@secnewgate.co.uk

 Robin Tozer, Harry Handyside, Molly Gretton                  +44 (0)7540 106366

About tinyBuild:

Founded in 2013, tinyBuild (AIM: TBLD) is a global video games publisher and
developer, with a catalogue of more than 70 premium titles across different
genres. tinyBuild's strategy is to focus on its own intellectual property (IP)
to build multi-game and multimedia franchises, in partnership with developers.

tinyBuild is headquartered in the USA with operations stretching across the
Americas and Europe. The Group's broad geographical footprint enables the
Company to source high-potential IP, access cost-effective development
resources, and build a loyal customer base through its innovative grassroots
marketing.

tinyBuild was admitted to AIM, a market by the London Stock Exchange, in March
2021.

For further information, visit: www.tinybuildinvestors.com
(http://www.tinybuildinvestors.com) .

 

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