{"id":1186971,"date":"2020-05-28T08:00:00","date_gmt":"2020-05-28T13:00:00","guid":{"rendered":"https:\/\/oilandgas-investments.com\/?p=32544"},"modified":"2020-05-28T08:00:00","modified_gmt":"2020-05-28T13:00:00","slug":"leaf-mobile-leaf-tsxv-is-growing-like-a-weed","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1186971","title":{"rendered":"LEAF MOBILE (LEAF-TSXV) IS GROWING LIKE A WEED!"},"content":{"rendered":"

April 2020 Revenue = All of 2018!<\/em><\/p>\n

LEAF Mobile <\/strong>(LEAF:TSXV) <\/strong>is the newly listed
\nmobile gaming operator that is on pace to more than triple their revenues this
\nyear.
\n 
\nThey just announced this week that April revenue was $2.97 million. That\u2019s
\na $35 million annualized run rate! All of 2018 revenue was just $2.23 million!
\nIn the first nine months of 2019 LEAF did $5.04 million.
\n 
\nThe business did as much in its last month–April 2020–as it did all year in 2018<\/em>.
\nAnd April 2020 = more than HALF of 2019 revenue. That’s the kind of growth I
\nLOVE to see in the juniors where I own stock.
\n 
\nAnd speaking with CEO Darcy Taylor, he says their lead game–Bud Farm Idle
\nTycoon (BFIT)–is already showing positive cash flow. BFIT is over 90% of
\ncompany-wide revenue.
\n 
\nBut the business model is set for this company to grow A LOT more\u2014and
\nquickly. Their brand new game, Cheech & Chong Bud Farm, launched April
\n20th<\/sup> and generated $10,000 per day average until the end of the
\nmonth.
\n 
\nFolks, NOBODY knows this story. They just went public on April 21. My
\nsubscribers are the ONLY audience for this stock so far.
\n 
\nI explained yesterday how fast the mobile gaming industry is growing. Now let
\nme tell you how fast Leaf Mobile is growing:
\n 
\nIndustry gaming app installs are up 20% since Jan 1; Taylor says Leaf Mobile is
\nup 56%. But just looking at March and April, install growth is up a
\nwhopping 155%.
\n 
\nThis bodes VERY well for the next two quarterlies. And while this is a
\ngreat, sexy and fun story, I\u2019m all about the numbers. And it certainly
\nsounds like this Taylor and his team are performing.
\n 
\n\u201cOur April monthly result was what we projecting to achieve as a Dec. 2020
\nmonthly run rate. So the games have been immensely well received. All of them
\nscoring high marks across Android and mobile app stores.
\n 
\nThere are THREE big tailwinds for Leaf Mobile right now. One is the overall
\ngrowth in the mobile gaming sector. A second is the coronavirus, which has
\neveryone stuck indoors a lot more and looking for things to do, and the third
\nis the cannabis industry going mainstream. It\u2019s a big counter-culture
\nlifestyle that\u2019s going mainstream.
\n 
\nThis is part of what\u2019s driving huge growth for Leaf Mobile. Taylor says what
\nreally means for his team and shareholders is this:
\n 
\n\u201cOur original Pot Farm game was the only game in the space years ago, and it
\nwas a home run success. It did $20 million in lifetime revenue until we shut it
\ndown two years ago after a very strong ten year run.<\/strong><\/em>
\n <\/p>\n

\u201cOur numbers are showing us that we have the potential to do
\nthat within a year or less if we execute well.<\/strong><\/em> So it’s just that
\nthe pie’s getting bigger and the opportunity’s getting bigger across the
\nboard.\u201d <\/p>\n

That is incredible.<\/p>\n

Let me throw some more stats at you. <\/p>\n

One\u2014management tells me these games
\ncost them roughly CAD$1 million to develop and publish. The way the
\nindustry is trending now, they base their projections at $30
\nmillion in lifetime revenue for per game title.<\/p>\n

Two\u2014when they market
\ntheir games online, they normally expect a 100% return over 90 days. Right now it\u2019s
\nas low as nine days.<\/em> Now, fair enough that after
\ncoronavirus scare is over and everyone goes outside again, that\u2019s likely to
\ndrop off again. And that doesn\u2019t happen every day. But you can see
\nhow profitable this industry can be.<\/p>\n

They figure that right now, for every $1 they put into marketing they get $4
\nback. I\u2019m in the wrong business<\/strong>. We all are.<\/p>\n

Three\u2014Taylor says their ARPDAU\u2014Average Revenue Per Daily Active User\u2014is 48
\ncents per day, over 5x times the industry average of 9 cents per day. And
\ntheir two newest games–Bud Farm Idle Tycoon and Cheech & Chong–are
\ngenerating 86 cents per day, versus a Top Games peer group of only 18 cents.<\/p>\n

\n
\"\"<\/figure>\n<\/div>\n

But if this was easy we would all be doing it. Leaf Mobile has a very special sauce that is working for them right now\u2014and will for years.
 
First off, their game engine is clearly a great platform. Users are drawn to it and it\u2019s sticky, otherwise Leaf Mobile\u2019s installs and revenue would not be growing the way they are.<\/p>\n

Second, the Leaf Mobile team has built in celebrity as a way to make and keep a game popular\u2014witness them landing Cheech & Chong for their latest game. They expect that to be a continuing and differentiating part of their strategy. 
 
Taylor says they are working on two new \u201cIP\u201d ideas in 2020\u2014Intellectual Property being their lingo for a celebrity. <\/p>\n

\"\"<\/figure>\n

Third is their \u201cLive Ops\u201d team.\u00a0They have a dedicated staff who tweak the games constantly to maximize enjoyment, playing time and revenue<\/em>. This happens every day in the games that are new, fresh and on their up-cycle.\u00a0
\u00a0
So the celebrity factor and game themes are the creativity, and Live Ops is the discipline in the strategy.\u00a0Leaf Mobile clearly excels at this, as you can tell from their elevated ARPDAU.
\u00a0
These counterculture assets are the key \u2014 the users are much more passionate and are willing to spend more. These counter culture gamers have higher retention rates and higher ARPDAU than other more mainstream groups.<\/p>\n

\u00a0<\/p>\n

CONCLUSION– Right Time, Right Niche, Right Industry<\/strong><\/span><\/h3>\n

\u00a0
I LOVE THIS COMPANY and their business model. It\u2019s very rare to have a newly-listed junior come out of the gate with revenue on track to triple year-over-year.<\/p>\n

Honestly, I have never written up a growth story where the story wrote itself more than Leaf Mobile does.\u00a0 Ever.<\/p>\n

But I want to leave you with a couple ideas to think about.<\/p>\n

The latest financials are for the first 9 months of 2019–which showed revenue of $5.04 million. This is not a capital intensive business and the company was cash flow break-even on that.<\/p>\n

This year revenue is skyrocketing.\u00a0 The company just provided an update that showed that April 2020 revenue alone was $2.97 million\u2026\u2026that is an annualized $35 million!<\/p>\n

With the April 20th<\/sup> launch of Cheech & Chong Bud Farm it means that the new game contributed revenue for only 10 days to the $2.97 million April revenue figure.\u00a0<\/em><\/p>\n

I suspect there is HUGE revenue growth happening here that management can\u2019t talk about until their first quarterly comes out\u2014but it is in the Top 10 trending downloads in the Google Play Store and Top 40 in US Android and Top 60 in US Apple.<\/u><\/em><\/p>\n

Since it takes a year to maximize the revenue for a game Cheech & Chong Bud Farm likely won\u2019t even hit full stride until this time 2021.<\/p>\n

By that time LEAF management expects to have added two more similarly themed games to compliment Bud Idle Tycoon and Cheech & Chong.\u00a0 They are confident they have the secret sauce of game engine, celebrity and disciplined LIVE OPS to make those games as successful as Bud Idle Tycoon \u2013 by 2022 (only 18 months away).<\/p>\n

That means that by 2022 LEAF could have<\/u><\/em> four titles very close to or on their way to doing $20 M in revenue annually.<\/p>\n

I haven\u2019t even talked about the new upcoming revenue streams such as recurring subscription revenue.\u00a0 But I don\u2019t want to complicate this story.\u00a0 There\u2019s so much meat here right now, I\u2019m not going to go all \u201cblue-sky\u201d on you.<\/p>\n

As investors this is what we spend our lives sitting in front of a computer for–to \u00a0find a stock like this, where everything comes together.<\/p>\n

The timing of everything is perfect.\u00a0 COVID-19 has turbo-charged revenue growth rates for the mobile gaming industry.\u00a0 Bud Idle Tycoon is now going full steam and Cheech & Chong just launched and is already a major success.<\/p>\n

The industry stats are telling us\u2014highly profitable growth is in the bag for several quarters.\u00a0<\/p>\n

The company is small and newly public. We are so lucky to see this first before any other analyst or newsletter writer gets on this.<\/p>\n

They are coming, believe me.
\u00a0
DISCLOSURE: I\u2019M VERY LONG LEAF MOBILE INC.
\u00a0<\/p>\n

<\/u><\/p>\n<\/p>\n

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.<\/p>\n

Keith Schaefer is not registered with the United States Securities and Exchange Commission (the \u201cSEC\u201d): as a \u201cbroker-dealer\u201d under the Exchange Act, as an \u201cinvestment adviser\u201d 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.<\/p>\n","protected":false},"excerpt":{"rendered":"

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 […]<\/p>\n","protected":false},"author":19,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[528],"tags":[],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1186971"}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/19"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1186971"}],"version-history":[{"count":2,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1186971\/revisions"}],"predecessor-version":[{"id":1193944,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1186971\/revisions\/1193944"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1186971"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1186971"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1186971"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}