tinyBuild (TBLD) H1 2024 earnings summary

Executive summary

• H1 revenue fell 19.1% YoY to $18.835m amid weaker platform deals, underperforming contracts and non-core titles, including Versus Evil.

• Strategy prioritized cost reduction, disciplined development investment and replayable, long-term own-IP franchises; own IP contributed 78% of gaming revenue.

• Gross profit recovered to $4.1m from an $8.8m loss; net loss narrowed to $6.5m from $25.3m.

Financial highlights

• Revenue was $18.835m vs. $23.295m in H1 2023; adjusted EBITDA was a loss of $1.888m vs. a $1.249m loss.

• Operating loss was $6.169m vs. $31.942m; net loss was $6.5m vs. $25.3m, with lower impairment charges and a disposal gain supporting the comparison.

• Operating cash flow was $1.987m, including a $1.4m working-capital outflow; software development investment fell to $8.748m from $16.925m.

• Cash at 30 June was $9.202m, compared with $2.5m at FY 2023-end; borrowings were nil.

Outlook and guidance

• FY 2024 adjusted EBITDA target remained around breakeven; improvement was targeted in 2025 alongside expected revenue growth and margin expansion.

• The Board expected delivery in line with expectations; cash was expected to decline toward year-end as game investment continued, with positive free cash flow taking longer.

• Over $10m of annual cost savings was expected in 2024 vs. 2023; the five-year plan targets scalable game franchises and animated or live-action media.

• Streets of Rogue 2, VOIN, FEROCIOUS and SAND were tracking in line with expectations; larger-budget titles, catalogue updates, DLC and platform launches formed the pipeline.