Scopely

ABOUT COMPANY

Scopely produces popular mobile games and interactive entertainment. At the heart of the company's success is its own game production platform, thanks to which Scopely can create mobile games faster, update and generate revenue from them.

The company collaborates with other studios and its own development teams. Scopely also buys licenses from media companies such as WarnerMedia and CBS and creates games based on well-known franchises.

Scopely creates interactive games of various genres, from puzzle games to strategy games. The company released hits based on The Walking Dead, Star Track and the Marvel universe. Some of Scopely's most popular games and franchises include Star Trek Fleet Command, Looney Tunes World of Mayhem, WWE Champions, The Walking Dead: Road To Survival, YAHTZEE With Buddies, and Wheel of Fortune.

Scopely was founded in 2011 in Los Angeles, USA, with offices in Barcelona, ​​Dublin and Tokyo, as well as additional studios in seven countries on four continents. The company employs about 1200 employees.

COMPANY OUTLOOK

Scopely has been ranked as one of the world's most innovative companies by Fast Company and was ranked second on Deloitte's list of the fastest growing companies in North America.

Mobile technology has dramatically changed the role of the game in people's lives. Now it's a way to connect with family and friends and even build new relationships. Mobile gaming revenue in 2020 was about $77 billion, up 13% from a year earlier. There are reasons why mobile games will grow faster than games on PC and consoles. They have the lowest barrier to entry (almost everyone has a smartphone) and the mobile app development process is less complicated.

Mobile games are the fastest growing segment of the video game industry. According to Newzoo, in 2019, 2.5 billion users were spending time and money playing games on their smartphones. Mobile gaming revenue is expected to grow from $86 billion in 2020 to $114 billion in 2023, a CAGR of 9.8%.

RISKS

In terms of game distribution and revenue generation, Scopely relies on third-party platforms: App Store, Facebook, Google Play. These platforms may change their policies, which will negatively affect the company's business.

A small number of games generate a significant portion of the company's revenue. Scopely may not be able to make up for the decline in revenue from its best games.

Scopely does not disclose its financial performance. It is not known whether the company is profitable at the current moment, and whether it has a trend towards profitability.

FINANCE AND VALUATION

In total, Scopely has raised $1 billion from 68 venture capital investors. Among them: New Enterprise Ventures (invested in Uber, MongoDB, Cloudflare, Snap) and Battery Ventures (invested in Fastly, JFrog, Avalara). The last investment round took place in October 2020. The company raised $340 million at a valuation of $3.3 billion, the share price was $38.6. The amount of funds raised and the participation of investors such as NewView Capital, Battery Ventures, Greycroft, Revolution Growth and Highland Capital Partners suggest that this was most likely the last investment round before the IPO.

Scopely generates revenue from its free-to-play games through advertising and in-game purchases of virtual goods. As a result of COVID-19, the number of users and their engagement with Scopely games has grown significantly. Scopely CEO Javier Ferreira said the company expects to end 2020 with over $900 million in revenue, almost 100% more than last year. According to our estimates, the company's annual revenue in 2021 will be $1.5 billion (an increase of 50-70%).

The projected value of Scopely on the public market, while maintaining the current growth trajectory, will be $9-15 billion. The expected time for going public is 2022. Given the rapid growth of the market and Scopely's publicly disclosed financials, the expected return on investment is high, over 150%.