TinyBuild issues 2023 & 2024 profit warning, stock plummets over 70% in UK trading
Chief Financial Officer Tony Assenza also stepped down from his position and has been replaced by Giasone Salati.TJ Denzer
June 29, 2023 11:55 AMImage via tinyBuild1
Game publisher and developer tinyBuild is predicting financial difficulties over the next year and its stock has taken a dive in the London markets as a result. The company recently shared a less-than-expected profits forecast from 2023 through 2024, coming in well under analyst estimations. Moreover, the company’s Chief Financial Officer Tony Assenza has stepped down and is being replaced by Giasone Salati as the company’s new CFO, effective immediately.
TinyBuild shared word of its profit warning for 2023 and 2024, alongside the change in CFO, in a financial report posted on its investor relations website on June 29, 2023. The company reported that increased development costs, amortization cost, and a poor revenue mix is going to result in a lower-than-consensus revenue for 2023. It also expects these issues to carry into 2024. TinyBuild went on to say share that its cash position at the end of December will likely end up in the range of $10 million to $20 million, far lower than prior expectations of $26.5 million.
The company’s stock took a huge beating in the London markets following the news of this profit warning and lowered financial expectation. Shares dropped on June 29 from 34.50 pence down to 9.75 pence, a 72 percent decrease in value. TinyBuild has had very little going on in the games space over the last year. One of its most notable releases this year was Hello Neighbor VR, which was underwhelming and technically buggy in our review at Shacknews. The company still had Trash Sailors, Pigeon Simulator, and Rawmen in development at various studios, but there are no release dates on these games at current.
With tinyBuild having taken a beating in the market today, it will be interesting to see if the company can turn it around. Stay tuned as we continue to follow this and other gaming and tech companies in market news for further updates.