An Emerging Mobile Gaming Leader
Ticker: TAPM
SEPTEMBER 2015CONFIDENTIAL
To the extent that statements contained in this presentation are not descriptions of historical facts regarding Tapinator, they are forward-looking statements reflecting the current beliefs and expectations of management made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Words such as “may,” “will” “expect,” “anticipate,” “estimate,” “intend,” and similar expressions (as well as other words or expressions referencing future events, conditions or circumstances) are intended to identify forward-looking statements. Examples of forward-looking statements contained in this presentation include, among others, statements regarding the quoting and trading of our common stock and our expectations regarding our development and monetization plans for our mobile games. Forward-looking statements in this release involve substantial risks and uncertainties that could cause the development and monetization of our mobile games, future results, performance or achievements to differ significantly from those expressed or implied by the forward- looking statements. Such risks and uncertainties include, among others, the uncertainties inherent in the hits nature of the mobile gaming business. Tapinator
undertakes no obligation to update or revise any forward-looking statements. The quoting and trading of the company’s common stock on the OTC Bulletin Board and the OTC Market Group’s OTC Link quotation system is often thin and characterized by wide fluctuations in trading prices, due to many factors that may have little to do with the company’s operations or business prospects. As a result, there may be volatility in the market price of the shares of the company’s common stock for reasons unrelated to operating performance. Moreover, the OTC Bulletin Board and the OTC Market Group’s OTC Link quotation system are not stock exchanges, and trading of securities on them is often more sporadic than trading of securities listed on the NASDAQ Stock market or another securities exchange. Accordingly, stockholders may have difficulty reselling any of their shares. For a further description of the risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of the company in general, see Tapinator’s disclaimers, which are available here: http://www.tapinator.com/disclaimers
FORWARD LOOKING STATEMENTS
1
W H AT W E D OAn Emerging Mobile Gaming Leader
We Design, Develop,
& Publish Original
Mobile Games for the
iOS, Android, and
Amazon platforms.
2
M O B I L E G A M I N G G R O W I N G T O $ 4 1 B B Y 2 0 1 7App Store Billings Have Already Exceeded Hollywood US Box Office Revenues
$41Bby 2017
$17Bby 2013
3Sources: Newzoo 2014 Global Games Market Report & Service; Glu Mobile Analyst Day Presentation, May 14, 2015
M O B I L E G A M I N G I S B O O M I N G70% of Smartphone users will play a mobile game in 2015
Source: Newzoo 2014 Global Games Market Report & Service 4
F u l l F e a t u r e d G a m e s
3 to 9 month development timeline
Variety of categories including RPG,
Social Casino, & Quick-Fix
More risk but ability to generate
home run successes
Working with branded and celebrity IP
Monetizes primarily through in-app
purchases
A N E M E R G I N G M O B I L E G A M I N G L E A D E ROver 120 Titles with New Games Released Every Week
R a p i d L a u n c h G a m e s
Launching 1-2 games weekly
Using proprietary game engines, development
has become faster, more cost-efficient
Variety of genres including driving, parking,
stunts, animal simulation and professional
simulation
Profitable, low risk
Monetizes primarily through advertising
Tw o D i v i s i o n s
5
A N E M E R G I N G M O B I L E G A M I N G L E A D E RRapid Launch Games
A portfolio approach with over 110 games, 30 of which have achieved 1 million+ downloads
Historical data from 107 rapid launch games from 9/1/13 through 6/30/15.
Figures include projected data over estimated remaining life. 6
Average Cost per Game* Average ROI per Game*
$6.5K 245%$22.4K
Average Revenue per Game*
A N E M E R G I N G M O B I L E G A M I N G L E A D E RFull Featured Games
We have launched eight such Games on iOS.
Seven were Featured as Best New Games Six reached the Top 50 in Games
Full Featured Titles with Unique Gameplay and Branded IP:
I lya NikolayevCEO
Interviewed on BloombergSept 3, 2014
7
F R E E M I U M B U S I N E S S M O D E LWe Monetize User Engagement
80% of Revenue 20% of Revenue
AdsIAP + Paid Downloads
8
12 Month Target: 50/50 revenue split between Ads and IAP + Paid
No Ads During Gameplay Ads Shown Between Levels
When Game Ends Users Can Purchase New Items or Levels
1 2
3 4
F R E E M I U M B U S I N E S S M O D E LOur Advertising Does Not Disrupt Gameplay
9
Free to Play
Monetize Gameplay with Consumables & Non-Consumables
F R E E M I U M B U S I N E S S M O D E LOur In-App Purchases Enhance Gameplay
1
2
10
M O B I L E M O N E T I Z AT I O N G E T T I N G S T R O N G E RPlayer Monetization Is Accelerating
GROWTHCompoundAnnual Growth
Rates:
App Rev
Mobile AdoptionTIME
52.3
% C
AGR 2
010-2
017
14.6% CAGR 2013-2017
Source: DigiCapital 11
G A M E S D O M I N AT E M O B I L E A P P R E V E N U EGames = ~74% of Revenue
Global mobile apps/games revenue ($B)
Source: DigiCapital
Games monetize ~4x more effectively
than all other mobile app types
Mobile Games
Other app categories
2013201220112010
5
10
15
20
GA
ME
S =
~74
% R
EV
EN
UE
12
C O M P E T I T I V E L A N D S C A P ERapid Launch and Full Featured Strategies Complement Each Other
Fast Dev
Slow Dev
EstablishedGame Play
OriginalGame Play
GLU
TAPINATOR FULL FEATURED
(Drive Users from Rapid Launch)
TAPINATOR RAPID LAUNCH
(100+ Million Users)
King
13
Zynga
RockYou
Ketchapp
C O M P E T I T I V E A D VA N TA G EBarriers to Entry
NewGame
NewGame
NewGame
Cross Promotion System(100+ Million Player Network)
Lean Production
App Store Optimization
Data Analytics
14
P L AY E R & G A M E M E T R I C SRobust Network Growth
M e t r i c s a s o f Q 2 2 0 1 5 :
· Average DAUs – 470,000; up 236% year-over-year, and up 75% sequentially
· Average MAUs – 7.73 million; up 188% year-over-year, and up 68% sequentially
· Average New Daily Downloads – 350,000; up 268% year-over-year, and up 139% sequentially
· Cumulative Downloads – 96.91 million as of June 30, 2015; up 298% year-over-year, and up 50%
sequentially
· Cumulative Game Library – 112 titles as of June 30, 2015; up from 40 year-over-year, and up from
93 sequentially
15
R A P I D L A U N C H D I V I S I O NCritical Mass Across Five Genres
16
F U L L F E AT U R E D G A M E P I P E L I N ECombo Quest
F i r s t o f I t s K i n d R P G :
· Time-Tap Mechanic
· Mass Appeal RPG for All Ages
· Version 1.0 Launched on 01/08/15 as a 99 cent,
paid game. Became the #1 Paid RPG on iOS
· Featured by Apple three times: as a “Best New
Game”, and as a “Best New Update” for version
1.1 and version 1.2
· Freemium version to launch in Q1 2016
17
F U L L F E AT U R E D G A M E P I P E L I N EVideo Poker VIP
B e s t I n C l a s s V i d e o P o k e r :
· Unique gameplay for the players’ favorite video
poker variants including Jacks or Better, Deuces
Wild, Bonus Poker, and Double Bonus
· Mechanics that have proven themselves in
slot games including level-based progression,
experience points, unlocking new locations, and
VIP points
· Opportunity to own the video poker space on
mobile with a differentiated, highly polished
product. Version updates launch monthly
· The social casino industry reached $2.8 billion in
2014 (61% from mobile) and is projected to grow
to $3.5 billion this year*
* Source: Eilers Research, Social Casino Tracker 18
F U L L F E AT U R E D G A M E P I P E L I N EDice Mage
S p e l l C o m b a t D i c e R P G
· Title launched as a “Best New Game”
with a prestigious “App Store Editors’
Notes”
· Over 527,000 downloads within first
week of launch
· Major opportunity in applying casino
mechanics to non-casino games (ie,
dice within an RPG game)
· New version to launch in November
2015, with a focus on retention and
additional levels (many users com-
pleted all current levels)
19
F U L L F E AT U R E D G A M E P I P E L I N EMAJOR HIT MOVIE FRANCHISE
I n c o n j u n c t i o n w i t h a m a j o r f i l m s t u d i o , Ta p i n a t o r w i l l b e r e l e a s i n g a g a m e b a s e d o n a l e g e n d a r y h i t m o v i e f r a n c h i s e .
T h i s b r a n d h a s g r o s s e d a t o t a l o f o v e r o n e b i l l i o n d o l l a r s .
20
CONFID
ENTIA
L
A C Q U I S I T I O N SIndustry Fragmentation Creates Large Opportunity
• Patent-Pending Casino Layer SDK
• B2B product increases in-app purchases
(by 15% to 30%) and boosts game reten-
tion through distributed minigames
• Establishes relationships with potential
M&A targets
• Provides immediate revenue accretion
for future acquisitions
21
A c q u i s i t i o n # 1 - I n A p p F u e l ( S e p t e m b e r 2 0 1 4 )
W e a r e a g g r e s s i v e l y p u r s u i n g o t h e r a c q u i s i t i o n s , e s p e c i a l l y t h o s e w i t h i n e v e r g r e e n a r e a s s u c h a s s o c i a l c a s i n o ( s l o t s , c a r d s , d i c e g a m e s ) .
F U T U R E O P P O R T U N I T I E SPlatform Innovation and Geographic Expansion
The Apple TV platform will challenge PS4
and Xbox One and will bring iOS games
to a new medium with an additional set of
players
In 2017, the Chinese mobile market will
reach $11.5 billion, tripling from 2014. We
are working with partners to bring our key
titles to this rapidly growing market
22
T E A M B I O SManagement
IIYA NIKOLAYEV - Chief Executive Officer
Co-Founder and CEO of Familybuilder until the sale of the Company to Intelius in 2011. Grew the business to profitability, over 45 million
users on the web, and over 2 million users on mobile (iOS and Android). Prior to Familybuilder, worked in banking for JP Morgan. Graduated
cum laude from New York University.
GEORGI DARAKEV - CTO - Social Casino
Led all feature development at Familybuilder. Extensive experience developing successful LAMP (Linux,Apache, MySQL, PHP) applications
and web services. Expertise in scaling applications on AWS, S3, and Rightscale. Built products used by millions monthly on both the web &
mobile. Bachelor’s in Computer Science from Dowling College.
ROBERT CRATES - Director
Over 25 years of experience in private equity, investing in a broad range of industries and asset categories. Mr. Crates has served on the
board of directors of numerous public and private companies.
KHURRAM SAMAD - CTO - Rapid Launch Games
Founded GeniTeam, an outsourced development Company focused on mobile with over 80 developers in house. Mr. Samad is an
experienced leader of offshore technical teams with access to superb local talent. Mr. Samad earned a BS in Computer Science from
National University of Computer and Emerging Sciences and an MBA from LUMS.
23
ANDREW MERKATZ - President/CFO
An accomplished entrepreneurial finance and operations executive with 20+ years of financial operations and investment experience
focused on lower middle market and venture stage growth companies. Mr. Merkatz was a Managing Director of Investments at Vision
Capital Advisors where, for the past seven years, he oversaw investments in digital media, renewable energy, and software technology.
YVES ANIDJAR - Controller
Mr. Anidjar has over 20 years of experience providing financial leadership to small businesses in a wide range of industries. He started
his career at the international advisory firm of Ernst & Young where he advanced to the level of Senior Manager specializing in media and
entertainment companies. Mr. Anidjar is a Summa Cum Laude graduate of the City University of New York with a degree in accounting.
F I N A N C I A L H I G H L I G H T S
R E V E N U E
O P. I N C O M E ( L O S S )
N E T I N C O M E ( L O S S )
A D J U S T E D E B I T D A
C A S H
T O TA L A S S E T S
T O TA L L I A B I L I T I E S
S T O C K H O L D E R S ’ E Q U I T Y
6 mo. (inception)DEC 31, 2013
(audited)
$1,027,241
(81,078)
(4,987,720)
299,266
1,845,462
3,447,013
6,823,172
(3,346,159)
24
12 monthsDEC 31, 2014
(audited)
6 monthsJUN 30, 2015
(unaudited)
$943,449
24,447
7,892
101,762
121,740
1,569,712
390,206
406,007
$130,980
(17,807)
(17,807)
2,320
12,418
64,254
42,561
21,693
1
1 Unaudited
2 Includes a $4.7m non-cash loss on change in derivative liabilities
2
2
1
K E Y FA C T S
SHARE STATISTICS
Trading Symbol (OTC) TAPM
Stock Price (9/8/15) $0.37
Shares Outstanding 56.9mm
30d Avg. Volume 217,739
Market Cap $21.1mm
Float (06/30/15) 7.7mm shares
Insider Ownership 60.6%
OTHERPersonnel 39 (including contract employees)
Fiscal Year Ends 12/31
Website Tapinator.com
Corporate HQ New York, NY
Auditor Liggett, Vogt & Webb, P.A.
25
T H A N K Y O U
For more information and a copy of our presentation, go to: http://tapinator.com/site/investors
26