FinancialtinyBuild
tinyBuild Annual Report and Consolidated Financial Statements for Year Ended 31 December 2022
1 Apr 202370 pages~167 min full read
tinyBuild achieved record 2022 financial results with $63.3 million in revenue (up 21%) and $11.5 million in profit (up 39.7%).
See it on page 40The company successfully shifted to an owned-IP portfolio model, which now accounts for 77% of total sales and reduced revenue concentration from its top three titles to 30%.
See it on page 11Adjusted EBITDA reached $24.4 million despite $11.2 million in impairment charges for underperforming back-catalogue assets and $1.7 million in relocation costs.
See it on page 48Geopolitical instability in Ukraine and Russia necessitated the relocation of over 100 staff members to a new hub in Serbia and other EU locations.
See it on page 22The company maintains a robust balance sheet with $133.8 million in total assets, $26.5 million in net cash, and an undrawn $35 million credit facility.
See it on page 42Management is executing a 'canon-commercial' strategy across a pipeline of over 80 titles, targeting a minimum 2x return on investment for each project.
See it on page 15Operations are supported by 12 internal studios and over 400 employees, with the 'Hello Neighbor' franchise serving as a key multimedia brand with over 70 million downloads.
See it on page 15During the 2022 fiscal year, tinyBuild achieved record financial performance, reporting a 21% increase in consolidated revenues to $63.3 million and a 39.7% rise in annual profit to $11.5 million. This growth was underpinned by a strategic shift toward a lower-risk, owned-IP portfolio model, which accounted for 77% of total sales. The company successfully diversified its revenue streams, reducing concentration from its top three titles to 30%, while evolving the "Hello Neighbor" franchise into a multimedia brand with over 70 million downloads. Operations are supported by a global footprint of 12 internal studios and over 400 employees, managed through a decentralized, product-centric structure.
The geographic and operational scope of the period was significantly impacted by geopolitical instability in Ukraine and Russia. In response, the company executed a large-scale relocation of over 100 staff members to a new hub in Serbia and other EU locations, incurring $1.7 million in non-recurring costs. Despite these challenges and an $11.2 million impairment charge related to underperforming back-catalogue assets from previous acquisitions, Adjusted EBITDA rose to $24.4 million. The company maintained a disciplined investment approach, focusing on high-margin internal development and selective IP acquisitions, such as the Bossa Studios catalogue, rather than large-scale corporate M&A.
Financially, the group transitioned to a more conservative three-year accelerated amortization schedule for software development to better reflect consumption patterns. While net cash decreased to $26.5 million due to $35.8 million in development reinvestment, the balance sheet remains robust with $133.8 million in total assets and an undrawn $35 million credit facility. Governance remains stable under the leadership of CEO Alex Nichiporchik, who holds a 37.8% stake, ensuring a continued focus on a "canon-commercial" strategy aimed at delivering a minimum 2x return on investment across its pipeline of over 80 titles.
