tinyBuild's shares plummeted by nearly 80% in a day
The stock price of tinyBuild sharply declined following the release of their investor report. In the report, the company announced a decrease in revenues, the resignation of its Chief Financial Officer, and the decision to not publish games from third-party developers.
In the report, the CEO and founder of tinyBuild, Alex Nichiporchik, admitted being disappointed with the results for the first half of 2023, which were below expectations. The company now anticipates that its financial performance for all of 2023, as well as for 2024, will also be significantly lower than initial forecasts.
One reason for the decline is the challenging situation in the gaming market. Platforms have significantly reduced investments in AAA games, which were an important growth driver for tinyBuild in recent years. Other reasons include the insufficient efficiency of the company-owned publisher Versus Evil and studio Red Cerberus, increased costs of game development, and rising payouts to external developers.
The company notes that the situation could lead to the devaluation of tinyBuild's assets and a reorganization.
Nonetheless, tinyBuild mentions that they are currently developing a record number of new games, and games from their back catalog continue to sell well. Therefore, instead of publishing other companies' titles, they now intend to focus on their own IPs. This could help rectify the situation.
Additionally, the report from tinyBuild stated that CFO Tony Assenza decided to leave the company for personal reasons. He will be succeeded by Giasone Salati, the former head of the M&A team.
At the time of writing, the stock price of tinyBuild has plummeted by 78.8% to £0.07 ($0.1) per share. This is the lowest price in the company's history. Since going public in 2021, tinyBuild's value has decreased by 92.86%.
