tinyBuild Annual Report: losses in excess of $67 million, focus on developing games for 1,000 hours without AAA budgets
tinyBuild has published a financial report for 2023. Its revenue was much lower than in 2022. The company also failed to make an operating profit.
Kingmakers
The main figures from the report:
- The annual revenue of the entire tinyBuild fell by 29% to $44.6 million. Revenue of Versus Evil publisher, closed in December 2023, fell by 60% due to game delays;
- 92% of tinyBuild's revenue came from games from the back catalog. Hello Neighbor 2 and Potion Craft performed especially well. The company's own IP brought her 68% of revenue;
- tinyBuild's operating losses amounted to $63.75 million. For comparison, by the end of 2022, the company reported a profit of $ 15.9 million;
- adjusted EBITDA turned out to be negative — minus $7.1 million. A year ago, the figure exceeded $ 24.35 million;
- the company attributed the drop in revenue to the difficult situation in the gaming market, a reduction in revenue from large transactions with platforms and developers, the depreciation of a number of assets and proceedings with the founder of Versus Evil;
- On December 31, 2023, tinyBuild had only $2.5 million in its account — 10.5 times less than at the end of 2022;
- After the end of the financial year, the company raised $12.3 million by placing new shares.
Revenue and adjusted EBITDA of the company in 2017-2023
In the report, Alex Nichiporchik, CEO and founder of tinyBuild, said that his company is actively trying to adapt to changes in the industry. She decided to pay more attention to the so—called "1000-hour games" - these are projects like Counter-Strike, Team Fortress 2 and World of Warcraft, which users have been playing for years and spend several hours every day.
As Nichiporchik noted, the easiest way to make such games is to get thousands of developers to regularly release huge amounts of new content. tinyBuild can't afford to spend AAA budgets on this, so she chose a different approach. The company focused not on the amount of content, but on working with user interaction systems. Nichiporchik attributed crafting, looting, farming simulation, as well as social mechanics to such systems. In games where there are similar systems, users can set goals for themselves and build a progression.
tinyBuild expects that the company's next hits could potentially be two games — a medieval shooter with knights and modern weapons Kingmakers and PvP horror Level Zero: Extraction.
After the release of the report, tinyBuild shares fell by 16.67%. At the time of writing the news, they are trading at a price of 5 pounds (6.2 dollars) apiece.
How has the value of tinyBuild shares changed in the last five days
