Mobile Gaming Studio with 4 Mobile Games Available for iPhone and Android Users – 3.4 Million Total Users, 235,000 Monthly Users Plus Board Game Version on Amazon
This mobile gaming studio offers four mobile games for iPhone and Android users, with a unique twist of mature humor that appeals to its customer base. The company also sells a board game version on Amazon. The mobile gaming industry has experienced significant growth due to faster networks, phones with gaming tools, and cloud gaming services, making this company a rare opportunity for investment. With a 3.4 million total user base and 235,000 monthly users, the company has established itself as a leader in the space. The app is a freemium model, and in-app purchases make up 95% of the company’s revenue.
OPERATIONS
The current ownership works just three hours per week running this operation, with the bulk of tasks managed by three remote workers who handle customer support and app development. This business does not require a heavy workload, and the owners have invested time in designing and building new mobile games to diversify their portfolio.
The company’s main offerings are purely digital, while their board game version is sold on Amazon, streamlining their logistics process and decreasing overhead costs.
MARKETING AND KEY METRICS
The company built viral loops into the product that allow users to invite their friends to play the game for free, or else pay to play with strangers who are available online. They also have an SEO program that targets app stores, optimizing their presence for keywords and preview screenshots that produce strong results.
The company’s virality strategy has been successful in bringing on new users without any marketing spend. With the insatiable appetite for games played on mobile apps, the company has nowhere to go but up when it comes to increasing revenues.
The company’s game app now has more than 25,000 daily active users, with 4,000 new users per day. The game acquired 316,000 new users in the first quarter of 2022 and had 3.4 million total users in 2021. In-app purchases bring in 95% of app revenue, with subscriptions making up 65% of sales from users.
The company has 3.4 million total users, evenly divided between men (51%) and women (49%). The largest customer base is between the ages of 18 and 24 (56%), with those aged 25-34 being an additional 26% of the user base. The game is restricted to those 17 and older due to its mature content. Customers tend to be more affluent, with 69% of downloads in the first quarter of 2022 on iPhones.
BUSINESS MODEL & RESOURCES NEEDED
With three remote workers who handle customer support and app development, the company requires minimal human resources efforts.
THE INDUSTRY
The mobile gaming industry is projected to reach $653 billion by 2025, with a growth rate of 20%. The company’s game app is a freemium model, offering in-app purchases that bring in 95% of revenue. Mobile gaming has surpassed both the console and PC gaming markets combined and now makes up 57% of the $173 billion global video game industry revenue. The company’s customer demographics are evenly divided between men and women, with younger customers between the ages of 18 and 24 making the largest portion of the customer base.
OPPORTUNITIES TO SCALE
The company can translate their games into different languages for international marketing opportunities and create new content to keep users engaged. They can also find new ways to engage with their users.
Asking Price: $1,300,000
Gross Income: $452,406
Cash Flow: $239,257
Year Established: 2013
Employees: 3
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