Leaf Announces Record Third Quarter 2020 Financial Results & Update To Eastside Games Acquisition
LEAF Mobile Inc. (TSXV: LEAF), a leading creator and publisher of counter culture mobile games, today released the third consecutive record quarter financial results for the third quarter of 2020.
In the second quarter ended June 30, 2020, LEAF completed its qualifying transaction, which included its acquisition of LDRLY (Technologies) Inc. (“LDRLY”). Prior to the completion of the qualifying transaction on April 17, 2020, LEAF (then known as “Caprice Business Development Canada Inc.”) was a “capital pool company” under TSXV policies, and did not have any active business operations. On completing its qualifying transaction, LDRLY became LEAF’s operating entity, through which all primary operations are conducted.
As such, though the interim financial statements reflect the financial performance of LEAF alone for the period leading up to April 17, 2020 and the combined financial performance of LEAF and LDRLY thereafter, the financial statements and corresponding MD&A both include disclosure and analysis of LEAF and LDRLY’s combined operations for the entire nine-month period ended September 30, 2020, as does this news release.
Financial Highlights:
*All amounts in $CAD unless otherwise noted and figures are rounded-up to one decimal place*
- Total Revenue was $11.1M in Q3 2020, increasing by $1.5M (+16%) compared to the previous quarter of $9.6M.
- Nine months ending September 30, 2020. Revenues grew to $25.9M, increasing by $20.8M as compared to LDRLY’s revenue results in the same period in 2019 of $5.0M, representing a (+418%) increase.
- Gross profit from game studio operations is $2.8M for the nine months ending September 30, 2020, increasing $2.7M (+2700%) vs LDRLY’s performance in the same period in 2019 of $0.1M, as a result of significant growth across our game portfolio and introduction of new titles.
- Q3 gross profit from game studio operations for the three-month period was $0.71M (+4.4%) vs $0.68M in the previous quarter 2020
- Q3 net loss of $0.7M vs $0.02M net loss in the previous quarter, driven primarily by non-recurring costs associated with the Company’s qualifying transaction and increased investments in user acquisition on new and growth titles.
LEAF Mobile CEO Darcy Taylor stated, “We continue to experience strong growth momentum across our growth and new game titles, on a year-over-year and quarter vs. quarter basis. This was our third consecutive quarter of record revenue results, driven by continued revenue gains in our new and growth titles. Our business performance results to date show strong execution of our strategy of “Live Ops” excellence, creating new long-life cycle franchises, investing in new IP with the goal of creating highly engaging games that produce lasting player enjoyment.”
Game Operations Results
- New titles, demonstrated strong revenue momentum of $2.6M in Q3 vs $1.5M in Q2 2020. This represents over (+73%) growth quarter over quarter.
- Growth titles revenue of $7.9M in Q3 2020 vs. $7.2M in Q2 2020. This represents over (+10%) growth quarter over quarter.
These gains in new and growth titles were driven by continued investment in player acquisition and strong total monthly average revenue per daily active users.
- Evergreen Titles, contributed $0.6M in revenue for Q3 2020, a decrease of $0.3M (-33%) as compared to Q2 2020. The decrease was expected with the usual seasonality effects coupled with the normalization of the accelerated increase in demand during the COVID-19 pandemic.
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