The stock price of tinyBuild plummeted after the publication of an investor report. In it, the company reported a decline in revenue, the resignation of the CFO, and the decision to stop publishing games by external developers.
In the report, tinyBuild CEO and founder Alex Nichiporchik acknowledged his disappointment with the results of the first half of 2023, which fell below expectations. The company now anticipates that its financial performance for the entire year 2023, as well as 2024, will be significantly below initial projections.
One reason for the decline is the challenging situation in the gaming market. Platforms have significantly reduced their investments in AAA games, and deals with them were an important growth driver for tinyBuild in recent years. Other reasons include the insufficient efficiency of the company-owned publisher Versus Evil and the studio Red Cerberus, increased game development costs, and higher payouts to external developers.
The company notes that these developments could lead to the depreciation of tinyBuild's assets and reorganization.
However, tinyBuild also mentions that it currently has a record number of new games in development, and its back-catalog games continue to sell well. Therefore, instead of publishing third-party titles, it now intends to focus on its own IPs. This could help rectify the situation.
Additionally, tinyBuild reported that CFO Tony Assenza decided to leave the company for personal reasons. He will be replaced by Giasone Salati, the former head of the M&A team.
At the time of writing, tinyBuild’s stock price plummeted by 78.8% to £0.07 ($0.1) per share. This is the lowest price in the company's history. Since its IPO in 2021, tinyBuild's value has decreased by 92.86%.