TinyBuild Inc shares rose 7% to 48.67p in early trading as results for last year came in below forecast but the indie video games group said it has an exciting pipeline of larger-budget games that keeps expectations on track for this year.
Revenue for 2022 for the games publisher and developer increased 21% to US$64mln, with the majority of launches occurring in the second half, including Hello Neighbor 2, TinyKin and Spiderheck. This was 4% below the City average revenue estimate.
Adjusted earnings (EBITDA) increased 10% to US$24mln, but was below consensus of US$24.9mln.
Net cash shrank to US$26.5mln at the end of December compared to US$48.8mln a year earlier.
For 2023 and beyond, the Washington, USA-based outfit said its pipeline is “strong and includes a number of larger budget games alongside continuous investment in the catalogue including updates, DLCs (downloadable content) and console launches”.
Net cash is expected to dip in the first half due to the timing of these investments and of new releases, before improving in the second and being flat over the year by the end of December, excluding potential M&A.