Tapinator Announces Q3 Preliminary Results and 2017 / 2018 Full-Year Guidance
8:30 AM ET 10/2/17 | GlobeNewswire
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)
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Preliminary Results Low-End Guidance ($ in thousands) Q3 2017 FY 2017 y-o-y % chg FY 2018 y-o-y % chg Bookings: $909 $3,493 -8 % $4,754 36 % Full-Featured Games $405 $1,320 207 % $2,379 80 % Rapid-Launch Games $505 $2,173 -36 % $2,375 9 % Revenue $855 $3,150 -16 % $4,666 48 % Operating Income (Loss) ($98 ) ($678 ) 5,943 % ($274 ) 59 % Adjusted EBITDA $131 $235 -73 % $816 248 % Preliminary Results High-End Guidance ($ in thousands) Q3 2017 FY 2017 y-o-y % chg FY 2018 y-o-y % chg Bookings: $909 $3,619 -5 % $5,623 55 % Full-Featured Games $405 $1,405 227 % $3,004 114 % Rapid-Launch Games $505 $2,214 -35 % $2,618 18 % Revenue $855 $3,250 -13 % $5,464 68 % Operating Income (Loss) ($98 ) ($630 ) 5,515 % $95 115 % Adjusted EBITDA $131 $283 -68 % $1,185 319 %
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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Preliminary Results Low-End Guidance ($ in thousands) Q3 2017 FY 2017 FY 2018 Revenue $855 $3,150 $4,666 Change in deferred revenue $55 $343 $88 Bookings $909 $3,493 $4,754 Operating Income (Loss) ($98 ) ($678 ) ($274 ) Amortization of capitalized software development $168 $717 $850 Depreciation and amortization of other assets $5 $22 $17 Stock-based expense $56 $174 $224 Adjusted EBITDA $131 $235 $816 Preliminary Results High-End Guidance ($ in thousands) Q3 2017 FY 2017 FY 2018 Revenue $855 $3,250 $5,464 Change in deferred revenue $55 $368 $159 Bookings $909 $3,619 $5,623 Operating Income (Loss) ($98 ) ($630 ) $95 Amortization of capitalized software development $168 $717 $850 Depreciation and amortization of other assets $5 $22 $17 Stock-based expense $56 $174 $224 Adjusted EBITDA $131 $283 $1,185
