TinyBuild's post-IPO profit up 64% to $12.5m

gamesindustry.biz:

Marie Dealessandri

Features Editor

Friday 1st April 2022

tinyBuild

TinyBuild has published its first financial results post-IPO, reporting $52.2 million in revenue for 2021, a 39% increase from 2020.

For the twelve months ended December 31, 2021, operating profit at the Hello Neighbor publisher was up a whopping 64% to $12.5 million.

TinyBuild noted that revenue for the year was "slightly ahead of expectations" and was due to the good performances of "new titles including Potion Craft" (which had been downloaded 600,000 times by the end of December 2021), as well as back catalogue sales. The latter represented 83% of total revenue for TinyBuild.

Not For Broadcast, NotGames' FMV title released in January and published by TinyBuild, has been downloaded over 300,000 times.

The financial report indicated IPO costs of $5.5 million, contributing to a reduction of the company's operating cash flow from $16.5 million in 2020 to $13.3 million last year. The company floated on the London Stock Exchange's AIM market in March 2021.

TinyBuild also noted an increased EBITDA margin (42.5% in 2021 versus 40.6% in 2020) "primarily due to the ongoing shift towards own-IP versus third party IP."

TinyBuild acquired several studios in 2021: the developers behind Totally Reliable Delivery Service, Black Skylands and Cartel Tycoon in February, Streets of Rogue developer DogHelm in June, Rawmen studio Animal in August, Deadside developer Bad Pixel in September, and fellow indie publisher Versus Evil and its QA studio Red Cerberus in November.

These acquisitions, and particularly the Versus Evil purchase, meant TinyBuild's portfolio increased to over 70 titles in 2021, with "contribution to revenues from first- [and] second-party games increased to 81%,"