April 2020 Revenue = All of 2018!
LEAF Mobile (LEAF:TSXV) is the newly listed mobile gaming operator that is on pace to more than triple their revenues this year.
They just announced this week that April revenue was $2.97 million. That’s a $35 million annualized run rate! All of 2018 revenue was just $2.23 million! In the first nine months of 2019 LEAF did $5.04 million.
The business did as much in its last month–April 2020–as it did all year in 2018. And April 2020 = more than HALF of 2019 revenue. That’s the kind of growth I LOVE to see in the juniors where I own stock.
And speaking with CEO Darcy Taylor, he says their lead game–Bud Farm Idle Tycoon (BFIT)–is already showing positive cash flow. BFIT is over 90% of company-wide revenue.
But the business model is set for this company to grow A LOT more—and quickly. Their brand new game, Cheech & Chong Bud Farm, launched April 20th and generated $10,000 per day average until the end of the month.
Folks, NOBODY knows this story. They just went public on April 21. My subscribers are the ONLY audience for this stock so far.
I explained yesterday how fast the mobile gaming industry is growing. Now let me tell you how fast Leaf Mobile is growing:
Industry gaming app installs are up 20% since Jan 1; Taylor says Leaf Mobile is up 56%. But just looking at March and April, install growth is up a whopping 155%.
This bodes VERY well for the next two quarterlies. And while this is a great, sexy and fun story, I’m all about the numbers. And it certainly sounds like this Taylor and his team are performing.
“Our April monthly result was what we projecting to achieve as a Dec. 2020 monthly run rate. So the games have been immensely well received. All of them scoring high marks across Android and mobile app stores.
There are THREE big tailwinds for Leaf Mobile right now. One is the overall growth in the mobile gaming sector. A second is the coronavirus, which has everyone stuck indoors a lot more and looking for things to do, and the third is the cannabis industry going mainstream. It’s a big counter-culture lifestyle that’s going mainstream.
This is part of what’s driving huge growth for Leaf Mobile. Taylor says what really means for his team and shareholders is this:
“Our original Pot Farm game was the only game in the space years ago, and it was a home run success. It did $20 million in lifetime revenue until we shut it down two years ago after a very strong ten year run.
“Our numbers are showing us that we have the potential to do that within a year or less if we execute well. So it’s just that the pie’s getting bigger and the opportunity’s getting bigger across the board.”
That is incredible.
Let me throw some more stats at you.
One—management tells me these games cost them roughly CAD$1 million to develop and publish. The way the industry is trending now, they base their projections at $30 million in lifetime revenue for per game title.
Two—when they market their games online, they normally expect a 100% return over 90 days. Right now it’s as low as nine days. Now, fair enough that after coronavirus scare is over and everyone goes outside again, that’s likely to drop off again. And that doesn’t happen every day. But you can see how profitable this industry can be.
They figure that right now, for every $1 they put into marketing they get $4 back. I’m in the wrong business. We all are.
Three—Taylor says their ARPDAU—Average Revenue Per Daily Active User—is 48 cents per day, over 5x times the industry average of 9 cents per day. And their two newest games–Bud Farm Idle Tycoon and Cheech & Chong–are generating 86 cents per day, versus a Top Games peer group of only 18 cents.
CONCLUSION– Right Time, Right Niche, Right Industry
Leaf Mobile has reviewed and sponsored this article. The information in this newsletter does not constitute an offer to sell or a solicitation of an offer to buy any securities of a corporation or entity, including U.S. Traded Securities or U.S. Quoted Securities, in the United States or to U.S. Persons. Securities may not be offered or sold in the United States except in compliance with the registration requirements of the Securities Act and applicable U.S. state securities laws or pursuant to an exemption therefrom. Any public offering of securities in the United States may only be made by means of a prospectus containing detailed information about the corporation or entity and its management as well as financial statements. No securities regulatory authority in the United States has either approved or disapproved of the contents of any newsletter.
Keith Schaefer is not registered with the United States Securities and Exchange Commission (the “SEC”): as a “broker-dealer” under the Exchange Act, as an “investment adviser” under the Investment Advisers Act of 1940, or in any other capacity. He is also not registered with any state securities commission or authority as a broker-dealer or investment advisor or in any other capacity.