Full-Featured Games Bookings Expected to Grow by +200% in 2017 and +80% in 2018
New York, NY – October 2, 2017 – Tapinator, Inc. (OTCQB: TAPM), a developer and publisher of mobile games on the iOS, Google Play, and Amazon platforms, today announced its preliminary, unaudited Bookings*, Revenue, Operating Income (Loss), and Adjusted EBITDA* results for Q3, 2017, in addition to full-year guidance for these measures for fiscal years 2017 and 2018.
Q3 2017 Preliminary Summary Results and 2017 / 2018 Full-Year Guidance (Unaudited)
Ilya Nikolayev, CEO of Tapinator commented “2017 represents a pivotal year for the Company. As we communicated earlier this year, we have shifted our focus from Rapid-Launch Games to the more lucrative Full-Featured Games opportunity. While this shift has resulted in, what we believe to be, only a temporary pause in our overall growth, our strategy has already generated results in that we expect Full-Featured Games Bookings to increase by more than 200% in 2017 as compared to 2016. Looking forward, we are very excited about our Full-Featured Games pipeline as we have a robust portfolio of new games and existing game updates slated to launch in Q4 2017 and Q1 2018. In the coming weeks, we will provide a detailed summary of our current Full-Featured Games pipeline and release schedule.”
We expect to release our complete GAAP earnings results for Q3, 2017 on November 15, 2017. Such results will include a reconciliation between GAAP and non-GAAP results and other key operating and game related metrics.
*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. 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 intangible assets previously acquired, acquisition-related transaction 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. Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized 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 (unaudited)
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About Tapinator
Tapinator develops and publishes mobile games on the iOS, Google Play, and Amazon platforms. Tapinator’s portfolio includes over 300 mobile gaming titles that, collectively, have achieved over 400 million player downloads, including games such as ROCKY™, Video Poker Classic, Solitaire Dash, and Dice Mage. Tapinator generates revenues through the sale of branded advertisements and via consumer app store transactions. Founded in 2013, Tapinator is headquartered in New York, with product development teams located in the United States, Germany, Pakistan, Indonesia, Russia and Canada. Consumers can find high-quality mobile entertainment wherever they see the ‘T’ character logo, or at http://tapinator.com.
Tapinator (OTCQB: TAPM) trades on the OTCQB Venture Market for early stage and developing U.S. and international companies. Companies are current in their reporting and undergo an annual verification and management certification process. For more information about Tapinator and complete investor materials such as investor presentations and recent filings, please visit: www.tapinator.com/investors.
Forward Looking Statements
To the extent that statements contained in this press release are not descriptions of historical facts regarding Tapinator, they are forward-looking statements reflecting the current beliefs and expectations of management made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Words such as “believe,” "may," "will" "expect," "anticipate," "estimate," "intend," and similar expressions (as well as other words or expressions referencing future events, conditions or circumstances) are intended to identify forward-looking statements. Our statements regarding our financial outlook for the remainder of the fiscal year 2017 and the full fiscal year 2018 contained in this press release are forward-looking statements. Forward-looking statements in this release involve substantial risks and uncertainties that could cause the next stage of our development, the deleveraging and strengthening of our balance sheet and the execution of our organic growth strategy to differ significantly from those expressed or implied by the forward-looking statements. Such risks and uncertainties include, among others, our belief that our overall growth will continue and our expectation that Full-Featured Games bookings will increase by more than 200% in 2017 as compared to 2016. Tapinator undertakes no obligation to update or revise any forward-looking statements. The quoting and trading of the company's common stock on the OTC Market Group's OTC Link quotation system is often thin and characterized by wide fluctuations in trading prices, due to many factors that may have little to do with the company's operations or business prospects. As a result, there may be volatility in the market price of the shares of the company's common stock for reasons unrelated to operating performance. Moreover, the OTC Market Group's OTC Link quotation system is not a stock exchange, and trading of securities on it is often more sporadic than trading of securities listed on the NASDAQ Stock market or another securities exchange. Accordingly, stockholders may have difficulty reselling any of their shares. For a further description of the risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of the company, see Tapinator's Risk Factors which are available within the disclaimers section of Tapinator.com.
CONTACT:
Tapinator Investor Relations
investor.relations@tapinator.com
(914) 930-6232