Scaling a Mobile Game Tech Company with 86% Margins
This is a highly profitable, scaling tech company in the mobile gaming industry. It is known for its valuable recurring revenue stream with an average of 5.01 million monthly downloads and growing. The company’s highly skilled team consistently creates mobile games with stickiness and longevity built-in, resulting in its successes. The company is agile with a lean operating model and a solid eCPM. Its management and operations team have a highly-talented HR, Project Management, Production, Testing & Optimization Dev team in place, a combination that has led to 86% profit margins.
OPERATIONS
The company is currently testing new ideas to improve its games and increase monetization. With a new ad delivery system being rolled out, the company is expected to increase its revenue by at least 30%. The company is expanding its In-App-Purchase Model and developing its games to be published on platforms like iOS, Nintendo Switch, Smart TVs, and more. With a 250% increase in downloads achieved through A/B Split testing, the highly talented team ensures consistent optimization of the games.
The company’s highly-talented HR, Project Management, Production, Testing & Optimization Dev teams have established clear, concise documented operations handbooks and process documents in place to ensure their lean operating model.
MARKETING AND KEY METRICS
With a solid eCPM on the current platform, the company is developing and rolling out a new ad delivery system that is expected to increase revenues by at least 30% in the short term. The company is also moving beyond revenue generation through ad networks by introducing the highly lucrative In-App-Purchase Model.
The company has a solid eCPM on its current platform and is developing and rolling out a new ad delivery system that is expected to increase revenues by at least 30% in the short term. The company is also expanding its In-App-Purchase Model. It is developing its games to be published on platforms like iOS, Nintendo Switch, Smart TVs, and more
The mobile gaming company has achieved 86% profit margin through its agile and lean operating model, which has led to economies of scale. As the company continues to grow onto other platforms like iOS, there will be very little need to hire additional team members
The company has high growth, high performance, and a stable customer base. As an established market leader in the mobile gaming sector, this company attracts an ever-increasing number of mobile gamers, which is expected to grow in the coming years
BUSINESS MODEL & RESOURCES NEEDED
The company’s highly-talented HR team ensures that processes are in place to measure performance, and provide ongoing training and professional development to ensure talent retention
THE INDUSTRY
The tech company operates in the mobile gaming industry. This industry has grown rapidly as mobile devices have become increasingly powerful and the games have become immersive. The industry is expected to continue to grow, with mobile gaming being estimated to be worth $100 billion by 2023. Examples of other successful gaming companies in this industry include: Tencent, Electronic Arts, Activision Blizzard, and Nintendo
OPPORTUNITIES TO SCALE
The company has limitless scale potential as it brings its highly efficient production and optimization processes to iOS and other platforms. As economies of scale have been achieved through efficiencies, as the company continues to grow onto other platforms, like iOS, there will be very little need to hire additional team members
Asking Price: $7,950,000
Gross Income: $3,851,000
Cash Flow: $3,228,000
Year Established: 2013
Employees: 25
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