Looks like the company posted this on their website today, obviously may be a bit biased on price but a good guide for where the company is at
Rapidly growing industry - Animoca Brands operates in the fast-growing mobile games industry which is outpacing the broader gaming industry by a factor of 1.4x. The sector is expected to generate US$77b in CY2020 with smartphone games delivering more than 80% of the revenue.
Creating a pathway for ownership of digital assets - The company is forging a pathway for consumers, rather than game companies, to securely own their digital assets by leveraging blockchain technology in games. The company is a leading player in blockchain gaming, enabling true digital ownership of in-game content and collectibles in its games, as compared to the traditional game industry, where content is owned by the developer/publisher and rented by the player.
Partnering with some of the biggest entertainment brands - The company has secured partnerships with some of the biggest brands in entertainment including Disney (NYSE
IS), Marvel, Formula 1, and WWE (NYSE:WWE).
Revenue growth accelerating - The company has recorded strong revenue growth over the past five calendar years, with a CAGR of 19%. Revenue growth has been accelerating in recent times with CY19 revenue lifting by 39% to $17.9m and Q1 CY20 revenue increasing by 44% to $6.2m. April experienced a record $4.3m in revenue bringing total revenues for the first four months of CY20 to $10.5m, surpassing the $8.3m in revenue reported for the six months to June 2019.
Pathway to profitability emerging - The company has announced that April 2020
experienced positive EBITDA of $0.38m and positive operating cashflow of $0.53m for the four months to April 30.
Well-funded and attracting global investors - On July 3, Animoca Brands completed a US$4.1m (A$6m) unsecured convertible note offer to global investors, led by Mind Fund Group and M7 Alternative Investment Strategies Asia Limited, with a 9% coupon and conversion to equity at $0.18/share. The company now has total liquid assets of $8.7m including $6m cash, $1.1m in Bitcoin and Ether, and $1.6m in other cryptocurrencies.
Creating new investment opportunities - Animoca Brands has announced plans to spin off its AI-driven health and fitness platform OliveX Holdings Limited into a publicly traded vehicle on the National Stock Exchange (NSX). It also has announced plans, as part of its recent $6m capital raise, to explore an IPO of its blockchain gaming assets on the LSE, Euronext or another public exchange. This would create a digital asset play making Animoca Brands a leader in the emerging digital ecosystem for virtual assets.
Valuation - We have undertaken a compco valuation of Animoca Brands, using the Golden Rule methodology to define the appropriate EV/Revenue multiple to apply to the company’s CY19 revenues. The Golden Rule methodology takes into account the earlier lifecycle stage of Animoca Brands’ earnings relative to more established peers. Based on this analysis and using FY19 accounts, we have arrived at an indicative base valuation of $0.25/share.
