An Emerging Mobile Gaming Leader
Ticker: TAPM
FEBRUARY 2015
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 filings with the OTC Market Group, which are available through http://www.otcmarkets.com.
FORWARD LOOKING STATEMENTS
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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 7The Market is Projected to More Than Double with 23.5% CAGR
Worldwide Motion Picture Box Office Revenues
$41Bby 2017
$38Bby 2014
$17Bby 2013
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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 3
F u l l F e a t u r e d G a m e s
3 to 6 month development timeline
Variety of categories including RPG, Quick-FIx,
& Social Casino
More risk but ability to generate home
run successes
Working with branded and celebrity IP
Monetizes primarily through in-app purchases
A W E L L P O S I T I O N E D I N D U S T R Y L E A D E ROver 80 Titles with a New Game 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 engines, game development has become
faster, more cost efficient over time
Profitable, low risk
Monetizes primarily through advertising
Tw o S i d e s o f t h e B u s i n e s s
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A W E L L P O S I T I O N E D I N D U S T R Y L E A D E R
We Design, Develop, & Publish Original Mobile Games
We have launched three Full Featured Games on iOS. All three reached the Top 50 in Games
50+ Million Player Network
Ilya NikolayevCEO
Interviewed on Bloomberg
TOP 50 JAN 2015
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A W E L L P O S I T I O N E D I N D U S T R Y L E A D E RCreating Original Content on the Pulse of Pop Culture
Two Recent Celebrity Games with Others in Development
N i k Wa l l e n d aSky Balance
M e l i s s a E t h e r i d g e Song-Based Game
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A W E L L P O S I T I O N E D I N D U S T R Y L E A D E RA Low Cost, Profitable Producer of Original Mobile Games
Average Cost per Game Average Revenue per Game Average ROI per Game
$6.5K 230%$21.6K
7Historical data from 51 rapid launch games from 7/31/13 through 8/31/14
F R E E M I U M B U S I N E S S M O D E LWe Monetize User Engagement
80% of Revenue 20% of Revenue
AdsIAP + Paid Downloads
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No ads during gameplay Ads Shown Between Levels
When Game Ends Users can Purchase New Levels of Play
1 2
3 4
F R E E M I U M B U S I N E S S M O D E LOur Advertising Does Not Disrupt Gameplay
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Free to Play Offer Premium Functionality
Monetize Gameplay with Consumables & Non-Consumables
F R E E M I U M B U S I N E S S M O D E LOur In-App Purchases Enhance Gameplay
1 2
3
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M O B I L E M O N E T I Z AT I O N G E T T I N G S T R O N G E RUsers increasingly spend more money on apps as mobile grows
GROWTHCompoundAnnual Growth
Rates:
App Rev
Mobile AdoptionTIME
52.3
% C
AGR 2
010-2
017
14.6% CAGR 2013-2017
Source: DigiCapital 11
G A M E S D O M I N AT E M O B I L E A P P R E V E N U EGames = ~74% of Revenue
Global mobile apps/games revenue ($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
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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
(50 Million Users)
King
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Zynga
C O M P E T I T I V E A D VA N TA G EDeveloper Advantage
Speed Cost
Expertise
Quality
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C O M P E T I T I V E A D VA N TA G EPublisher Advantage
NewGame
NewGame
NewGame
Cross Promotion System(50+ Million Player Network)
Platform Best Practices
App Store Optimization
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F U L L F E AT U R E D G A M E P I P E L I N E
Combo Quest
F i r s t o f I t s K i n d :
· Time-Tap Mechanic
· Addictive Gameplay that Strengthens Hand-Eye Coordination
· Mass Appeal RPG for All Ages
· Version 1.0 Launched on 01/08/15
· Featured by Apple as a Best New Game
· Reached Top 25 Paid Games
· Version 1.1 Launching March 2015
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F U L L F E AT U R E D G A M E P I P E L I N E
Video Poker VIP
W h y M o b i l e C a s i n o ?Mobile now accounts for 46% of all social casino game revenues generated worldwide and will
likely account for a majority sometime in the next few quarters.•
W h y V i d e o P o k e r ?• Video Poker is underrepresented on mobile
• Substantial driver of revenue in real money gaming
W h y U n i q u e ?Applying leveling mechanics to video poker increases engagement
* Source: Eilers Research Q1 2014 17
L a u n c h D a t eMarch 2015
F U L L F E AT U R E D G A M E P I P E L I N E
Burn It Down
F i r s t o f I t s K i n d :
· Unique sidescrolling horror puzzle game
· Beautiful pixel graphics & effects
· A storyline filled with mystery
· Custom voiceovers with voice actors used
for each game character
· Intuitive, simple controls - left/right with
jumping and repelling off of walls accom-
plished by adusting the speed
· Launching April 2015
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R E C E N T A C Q U I S I T I O N : I N A P P F U E L , I N C .Patent-Pending Casino Layer SDK
• Increases in-app purchases and game retention through minigames
• Provides revenue opportunity in other developers’ games
• Establishes relationship with potential acquisition targets
Increase in IAP transactions Average engagement
percentage
15% to 30% 33%60%
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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 - Lead Game Engineer
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.
TEYMOUR FARMAN-FARMAIAN - Senior Advisor
Senior marketing and strategy leader within mobile and gaming. Mr. Farman-Farmaian was formerly the GM of Strategic Partnerships at
Zynga, CMO at Spotify, and Senior Director of Sales at Google.
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 - Chief Technology Officer
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.
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F I N A N C I A L H I G H L I G H T S (Unaudited)
* 2014 figures include an audit fee accrual of $42k (no audit fee accrued in 2013) and a one-time impairment loss of $156k
** Adjusted EBITDA excludes a one-time impairment loss of $156k
R E V E N U E
E B I T D A
A D J U S T E D E B I T D A
N E T I N C O M E
T O TA L A S S E T S
S T O C K H O L D E R S ’ E Q U I T Y
$130,980
70,921
70,921
55,157
137,219
62,157
6 months (inception)
DEC 31, 2013
$943,449
91,714*
247,923**
(20,054)*
1,577,230
1,074,524
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12 months
DEC 31, 2014
B A L A N C E S H E E T (Unaudited)
$12,418
34,199
2,158
72,964
0
15,480
137,219
$75,061
0
0
62,157
137,219
DEC 31, 2013
$121,740
130,681
17,500
1,268,383
19,086
19,840
1,577,230
$186,252
55,000
261,454
1,074,524
1,577,230
DEC 31, 2014
C a s h a n d C a s h E q u i v a l e n t s
A c c o u n t s R e c e i v a b l e
F i x e d A s s e t s , N e t
I n t a n g i b l e A s s e t s , N e t
I n v e s t m e n t s
O t h e r
T O TA L
L I A B I L I T I E S & E Q U I T Y
C u r r e n t
D e f e r r e d R e v e n u e
N o t e s P a y a b l e
To t a l S t o c k h o l d e r s ’ E q u i t y
T O TA L
A S S E T S
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K E Y FA C T S
SHARE STATISTICS
Trading Symbol (OTC) TAPM
Stock Price (2/25/15) $0.30
Shares Outstanding 55.0mm
30d Avg. Volume 50,869
Market Cap $16.0mm
OTHERPersonnel 20
Fiscal Year Ends 12/31
Website Tapinator.com
Corporate HQ New York, NY
Auditor Liggett, Vogt & Webb, P.A.
CAP STRUCTURE(a/o 12/31/14)
Cash on Hand $0.1mm
Long Term Debt $0.3mm
Shareholder Equity $1.1mm
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T H A N K Y O U
For more information and a copy of this presentation, go to: http://tapinator.com/site/investors
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