tinyBuild plc (LON:TBLD), a global video games label building franchises across multiple media, has provided a trading update for the twelve months ended 31 December 2021. The Company expects to publish FY2021 results on 29 March 2022.
Highlights
● Performance ahead of expectations in the second half of FY 2021
● Contribution from acquisitions is also ahead of expectations
● Hello Neighbor franchise crossing 100 million downloads
Following a solid second half of trading, the Company is on track to deliver strong growth for FY 2021, building on the record results achieved in FY 2020. Progress in its strategy focused on own-IP also means the Company is on track to deliver EBITDA ahead of expectations for FY 2021.
Current trading
Overall, FY 2021 saw a substantial easing of restrictions related to Covid-19, with expectations that video games sales may be negatively impacted. Conversely, tinyBuild performed strongly in the second half of 2021, both in terms of back catalogue and new titles.
tinyBuild has continued to diversify its games portfolio into new genres (e.g. simulation, action, strategy), and diversify its revenue sources to benefit from platform competition and the growth in subscription services. This trend gives the Company greater visibility regarding its future revenue growth while helping de-risk ongoing investments.
Portfolio and pipeline
In the second half of 2021, tinyBuild released a number of new titles, including Potion Craft, which has had over 500,000 downloads after reaching number one on the Steam top sellers charts at launch in September 2021, and the critically-acclaimed Happy’s Humble Burger Farm (“a genius game”, according to Destructoid).
Recent announcements include the release date (25 January 2022) of version 1.0 for the critically acclaimed Not For Broadcast (over 300,000 downloads on early access) and the pre-order start date (7 April 2022) for Hello Neighbor 2, the next game in the best selling franchise (over 100 million downloads).
People
Overall, tinyBuild staff increased from 147 at the time of the IPO to over 400 currently, with most of the additions in strategic geographies such as Brazil (following the acquisition of VersusEvil and Red Cerberus). tinyBuild continues to carefully review the geopolitical situation in Eastern Europe and has plans in place to minimise any potential disruption and to support staff and their families.
tinyBuild aims to offer employees the best working conditions in the industry. For example, the Company has implemented clear policies against crunching, the industry practice by which developers overwork to meet certain targets. In December 2021, tinyBuild also gifted one extra week of holiday to all direct employees, following a similar move in June 2021, in a gesture of appreciation for everybody’s hard work.
As a result, tinyBuild continues to enjoy one of the lowest levels of staff turnover, low single-digit, compared to an estimated 15.5.% at an industry level (Wired).
Outlook
Early indicators of positive consumer traction across the Company’s pipeline, including Hello Neighbor 2, are very encouraging and we look ahead to FY 2022 with confidence.
Alex Nichiporchik, Chief Executive Officer of tinyBuild, commented:
“For ten years now, my main goal with tinyBuild was to create something sustainable. A business that will exist a generation from now. Achieving this requires a diversified business model and a long-term strategy. The strength of 2021 shows the benefits of this approach: organic growth, strategic acquisitions, strong profitability. These are important building blocks as we move into 2022 with a record-setting year behind us.
“Ultimately, it’s all about the team and empowering great people to make quick decisions in this dynamic environment we all love.”
