Tapinator, Inc. (OTC: TAPM), a leading mobile game publisher, is announcing updated preliminary, unaudited summary results for the year ended December 31, 2016. These results replace the preliminary results provided by the Company on January 5, 2017, and are subject to further year-end adjustments that may occur during the completion of its annual year-end audit. Based on the information now available for the year ended December 2016, Tapinator expects revenue of approximately $3.7 million, which corresponds to achieving 52% annual revenue growth versus the comparable figures for 2015, and expects bookings (a non-GAAP measure) of $3.8 million, which corresponds to achieving 56% annual bookings growth versus the comparable figures for 2015. The Company expects to report an operating loss of approximately $12,000 for the year ended December 2016, which compares favorably to an operating loss of approximately $900,000 for the comparable 2015 period. The Company expects to report a net loss of approximately $2.3 million for the twelve-month period ended December 2016 which compares to a net loss of approximately $1.9 million for the comparable 2015 period. The expected net loss for 2016 includes approximately $2.1 in non-cash charges related to the July 2016 refinancing of the Company's Senior Secured Convertible Debenture. The Company expects to report adjusted EBITDA (a non-GAAP measure), of approximately $870,000 for the year ended December 2016, which corresponds to achieving approximately 66% annual adjusted EBITDA growth versus the comparable figures for 2015.
The Company plans to release an annual shareholder letter in February 2017 and its complete audited 2016 results in March of 2017. Tapinator CEO Ilya Nikolayev commented, "2016 was another record year for Tapinator, both in terms of revenue and adjusted EBITDA growth. While we are still early in our development, we are grateful to our employees, shareholders and commercial partners for enabling the success that we have achieved thus far. We look forward to communicating our 2016 accomplishments in greater detail, and to providing our strategic priorities for continued growth in 2017 in our upcoming annual shareholder letter."
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 other financial measures which are prepared in accordance with United States generally accepted accounting principles ("GAAP"). 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. Some limitations of Bookings and adjusted EBITDA are:
-- Bookings do not reflect the deferral of certain game revenue that Tapinator recognizes over the estimated useful lives of paying users of Tapinator's games and excludes changes in deferred revenue.
-- 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, operating income (loss), net income (loss), and our other financial results presented in accordance with GAAP. Tapinator may consider whether significant items that arise in the future should also be excluded in calculating the non-GAAP financial measures it uses. We will provide reconciliations between our 2016 and 2015 Bookings and adjusted EBITDA to the most directly comparable GAAP financial measures within the detailed financial results, that we plan to make available upon the completion of our annual audit in March 2017.
Tapinator believes that these non-GAAP financial measures, when taken together with the corresponding GAAP financial measures, provide meaningful supplemental information regarding Tapinator's performance by excluding certain items that may not be indicative of Tapinator's core business, operating results or future outlook. Tapinator's management uses, and believes that investors benefit from referring to, these non-GAAP financial measures in assessing Tapinator's operating results, as well as when planning, forecasting and analyzing future periods. These non-GAAP financial measures also facilitate comparisons of Tapinator's performance to prior periods.
