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An Emerging Mobile Gaming Leader Ticker: TAPM OCTOBER 2017

Ticker: TAPM An Emerging Mobile Gaming Leader · SNAPSHOT An Emerging Mobile Gaming Leader • Our portfolio consists of more than 300 mobile gaming titles with over 400mm player

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Page 1: Ticker: TAPM An Emerging Mobile Gaming Leader · SNAPSHOT An Emerging Mobile Gaming Leader • Our portfolio consists of more than 300 mobile gaming titles with over 400mm player

An Emerging Mobile Gaming Leader

Ticker: TAPM

OCTOBER 2017

Page 2: Ticker: TAPM An Emerging Mobile Gaming Leader · SNAPSHOT An Emerging Mobile Gaming Leader • Our portfolio consists of more than 300 mobile gaming titles with over 400mm player

To the extent that statements contained in this presentation

are not descriptions of historical facts regarding Tapinator,

they are forward-looking statements reflecting the current

beliefs and expectations of management made pursuant

to the safe harbor provisions of the Private Securities

Litigation Reform Act of 1995. Words such as “targeted,”

“may,” “will” “expect,” “anticipate,” “estimate,” “intend,” and

similar expressions (as well as other words or expressions

referencing future events, conditions or circumstances)

are intended to identify forward-looking statements.

Examples of forward-looking statements contained in this

presentation include, among others, statements regarding

the quoting and trading of our common stock and our

expectations regarding our development and monetization

plans for our mobile games. Forward-looking statements

in this release involve substantial risks and uncertainties

that could cause the development and monetization of our

mobile games, future results, performance or achievements

to differ significantly from those expressed or implied by the

forward- looking statements. Such risks and uncertainties

include, among others, the uncertainties inherent in the hits

nature of the mobile gaming business. Tapinator undertakes

no obligation to update or revise any forward-looking

statements. The quoting and trading of the company’s

common stock on the OTC Bulletin Board and the OTC

Market Group’s OTC Link quotation system is often thin

and characterized by wide fluctuations in trading prices,

due to many factors that may have little to do with the

company’s operations or business prospects. As a result,

there may be volatility in the market price of the shares

of the company’s common stock for reasons unrelated to

operating performance. Moreover, the OTC Bulletin Board

and the OTC Market Group’s OTC Link quotation system

are not stock exchanges, and trading of securities on them

is often more sporadic than trading of securities listed on

the NASDAQ Stock market or another securities exchange.

Accordingly, stockholders may have difficulty reselling any

of their shares. For a further description of the risks and

uncertainties that could cause actual results to differ from

those expressed in these forward-looking statements, as well

as risks relating to the business of the company in general,

see Tapinator’s disclaimers, which are available here:

http://www.tapinator.com/disclaimers

FORWARD LOOKING STATEMENTS

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Page 3: Ticker: TAPM An Emerging Mobile Gaming Leader · SNAPSHOT An Emerging Mobile Gaming Leader • Our portfolio consists of more than 300 mobile gaming titles with over 400mm player

W H AT W E D OAn Emerging Mobile Gaming Leader

We Develop, &

Publish Mobile

Games for the iOS,

Android, and Amazon

platforms.

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Page 4: Ticker: TAPM An Emerging Mobile Gaming Leader · SNAPSHOT An Emerging Mobile Gaming Leader • Our portfolio consists of more than 300 mobile gaming titles with over 400mm player

S N A P S H O TAn Emerging Mobile Gaming Leader

• Our portfolio consists of more than 300 mobile gaming titles with over 400mm player downloads

• Our strategy is two-fold: (i) produce a large number of “Rapid-Launch Games,” which have low development costs and predictable returns and (ii) produce a select number of original “Full-Featured Games” which have higher development costs yet offer massive upside

• OurrevenuesandadjustedEBITDA*for2016wereapproximately$3.7mmand$870k,respectively.ThiscomparestorevenuesandadjustedEBITDA*for2015of$2.4mmand$522k,respectively

• We generate revenues through the sale of: (i) branded advertisements within our games and (ii) app store transactions

• We are based in New York City and have 10 employees and 40 contractors

• We are listed on the OTC QB Market and our enterprise value is approximately $10.0mm

* EBITDA is a non-GAAP, unaudited financial measure. 3

Page 5: Ticker: TAPM An Emerging Mobile Gaming Leader · SNAPSHOT An Emerging Mobile Gaming Leader • Our portfolio consists of more than 300 mobile gaming titles with over 400mm player

I N V E S T M E N T H I G H L I G H T SAn Emerging Mobile Gaming Leader

• Large and growing total addressable market - mobile games & mobile advertising

• Diversified portfolio of 300+ revenue producing games that, together, have achieved network scale

• Low cost and highly efficient development platform

• Rapid revenue growth with high operating leverage; we are EBITDA* positive and growing

• Disciplined ROI-based strategy of blending low cost Rapid-Launch and higher cost Full-Featured Games

• Efficient monetization strategy consisting of programmatic advertising sales and app store transactions

• Veteran management team/board with high-growth and large internet company credentials and a track record of building successful digital media businesses

* EBITDA is a non-GAAP, unaudited financial measure. 4

Page 6: Ticker: TAPM An Emerging Mobile Gaming Leader · SNAPSHOT An Emerging Mobile Gaming Leader • Our portfolio consists of more than 300 mobile gaming titles with over 400mm player

T E A M B I O SManagement

IIYA NIKOLAYEV - Chief Executive OfficerCo-Founder and CEO of Familybuilder until the sale of the Company to Intelius in 2011. He grew the business to profitability, acquired over

45 million users on the web, and over 2 million users on mobile. Mr. Nikolayev was also a cofounder of InAppFuel, a developer of patented

minigame software acquired by Tapinator in 2014. Prior to Familybuilder, Mr. Nikolayev worked in banking for JP Morgan and graduated cum

laude with a BA from New York University.

GEORGI DARAKEV - CTOLed all feature development at Familybuilder. Extensive experience developing successful LAMP (Linux,Apache, MySQL, PHP) applications

and web services. Expertise in scaling applications on AWS, S3, and Rightscale. Built products used by millions monthly on both the web &

mobile. Cofounder of InAppFuel. Mr. Darakev earned his BS in Computer Science from Dowling College.

ROBERT CRATES - Independent DirectorOver 25 years of experience in private equity, investing in a broad range of industries and asset categories. Mr. Crates has served on the

board of directors of numerous public and private companies. Mr. Crates earned his BA from Yale University.

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ANDREW MERKATZ - President/CFOAn accomplished entrepreneur with 20+ years of financial operations and transactional experience. Mr. Merkatz spent 6+ years at Vision

Capital where he focused on digital media and software technology. Mr. Merkatz was also a cofounder of InAppFuel and Familybuilder

along with Mr. Nikolayev. Mr. Merkatz earned his BA from University of Pennsylvania (cum laude), and his MBA from Harvard University.

TEYMOUR FARMAN-FARMAIAN - Independent DirectorWas CMO/CRO at Spotify, the world’s leading music streaming service, starting in 2011. He helped triple revenue growth to hit a $500

million run rate, and achieve 7.5 million DAU. Before Spotify, Teymour worked at Zynga (ZNGA) as GM of Partnerships and at Google

(GOOG) in various sales and operational roles. Teymour earned his BA from Duke University and his MBA from Harvard University.

Page 7: Ticker: TAPM An Emerging Mobile Gaming Leader · SNAPSHOT An Emerging Mobile Gaming Leader • Our portfolio consists of more than 300 mobile gaming titles with over 400mm player

T W O M A R K E T S : M O B I L E G A M I N G & M O B I L E A D V E R T I S I N GMobile Gaming Revenue to Grow From $34.8B in 2015 to $74.6B in 2020

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Page 8: Ticker: TAPM An Emerging Mobile Gaming Leader · SNAPSHOT An Emerging Mobile Gaming Leader • Our portfolio consists of more than 300 mobile gaming titles with over 400mm player

T W O M A R K E T S : M O B I L E G A M I N G & M O B I L E A D V E R T I S I N GMobile Advertising Revenue Projected to Grow From $101B in 2016 to $166B in 2018

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Page 9: Ticker: TAPM An Emerging Mobile Gaming Leader · SNAPSHOT An Emerging Mobile Gaming Leader • Our portfolio consists of more than 300 mobile gaming titles with over 400mm player

T W O - P R O N G E D G A M E S T R AT E G YMaximizing Risk Adjusted Returns Via a Game Portfolio Approach

Rapid Launch

Evergreen Growth

Full-Featured

• High volume• Lost cost• Predictable returns• Ad monetization

• Low volume• Higher cost• Higher returns• IAP monetization

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• Social casino; licensed IP • Best-in-class systems + big markets

Page 10: Ticker: TAPM An Emerging Mobile Gaming Leader · SNAPSHOT An Emerging Mobile Gaming Leader • Our portfolio consists of more than 300 mobile gaming titles with over 400mm player

T W O - P R O N G E D G A M E S T R AT E G YMaximizing Risk Adjusted Returns on Investment of Game Portfolio

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RAPID-LAUNCH GAMES FULL-FEATURED GAMESRange of game development time 1 to 3 months 3 to 12 monthsTarget lifetime game dev cost $5k to $10k $100k to $1mm2017 game launches (est.) 95 6Technology Unity, MoPub, GameAnalytics Unity, MoPub, GameAnalytics

Adjust, GameSparksGame genres Parking, Driving, Stunts, Simulation,

Shooting, FightingArcade, Casino, Sports, RPG

Branded license partners NA MGM, Discovery ChannelTarget average life 18 to 54 months 36 to 60 monthsRisk level Low ModerateTarget lifetime revenue per game $35k $2.5M ($250k to $5M+)Primary monetization methods Ads In-App Purchases + Ads% of 2017 bookings (est.) 52% 48%

Page 11: Ticker: TAPM An Emerging Mobile Gaming Leader · SNAPSHOT An Emerging Mobile Gaming Leader • Our portfolio consists of more than 300 mobile gaming titles with over 400mm player

R A P I D - L A U N C H G A M E SHigh Volume, Low Cost, Predictable Returns

• Low cost development platform

• Cross game promotion replaces traditional user acquisition cost

• Over 300 active games, 82+ of which have achieved 1 million+ downloads

• 66% of our games older than 180 days are profitable

*Historical data from 314 Rapid-Launch games from 7/1/13 through 3/31/17.

*Figures include projected revenue and cost data over estimated remaining life. 10

Average Development

Cost per Game*

Average ROI per Game*

$6.9K 3.9x$26.7K

Average Contribution Margin

per Game*

Page 12: Ticker: TAPM An Emerging Mobile Gaming Leader · SNAPSHOT An Emerging Mobile Gaming Leader • Our portfolio consists of more than 300 mobile gaming titles with over 400mm player

R A P I D - L A U N C H G A M E SHigh Volume, Low Cost, Predictable Returns

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Page 13: Ticker: TAPM An Emerging Mobile Gaming Leader · SNAPSHOT An Emerging Mobile Gaming Leader • Our portfolio consists of more than 300 mobile gaming titles with over 400mm player

F U L L - F E AT U R E D G A M E SLow Volume, Higher Cost, Higher Returns

Product Focus:

• Unique game play with in-depth content

• High retention with best-in-class monetization

• Build unique IP and selectively license branded IP

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Avg. Target Development

Cost per Game

Avg. Target

ROI per Game

$500K

Avg. Target Contribution

Margin per Game

Recently launched top grossing games generate huge revenue numbers:

• Clash Royale, launched 03/21016, generated $1 billion in its first year*

• Gardenscapes, launched 08/2016, has a $36+ million revenue run rate**

• Design Home, launched 11/2016, has a $60+ million revenue run rate***

*VentureBeat, 02/15/17

** MobileDevMemo, 09/19/16

***Glu Q1 2017, Earnings Presentation

$2.5mm 5.0x

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Page 14: Ticker: TAPM An Emerging Mobile Gaming Leader · SNAPSHOT An Emerging Mobile Gaming Leader • Our portfolio consists of more than 300 mobile gaming titles with over 400mm player

F U L L - F E AT U R E D G A M E SLow Volume, Higher Cost, Higher Returns

I lya NikolayevCEO

Interviewed on TheStreetDec 1, 2015

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• We have launched fifteen full-featured games

• Eleven were Featured as “New Games We Love”

• Nine reached the Top 50 in Games

• We have evolved our full-featured strategy to

shift away from simple arcade games

• We have in-depth knowledge of how to create

a hit game and are well positioned to launch a

home run product in 2017

Page 15: Ticker: TAPM An Emerging Mobile Gaming Leader · SNAPSHOT An Emerging Mobile Gaming Leader • Our portfolio consists of more than 300 mobile gaming titles with over 400mm player

F U L L - F E AT U R E D G A M E SRecent/Upcoming Launches: Solitaire Dash and Big Sport Fishing 2017

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Solitaire Dash Big Sport Fishing 2017

Page 16: Ticker: TAPM An Emerging Mobile Gaming Leader · SNAPSHOT An Emerging Mobile Gaming Leader • Our portfolio consists of more than 300 mobile gaming titles with over 400mm player

F U L L F E AT U R E D G A M E P I P E L I N EMajor Planned Launches for 2017

Q1 2017 Q2 2017 Q3 2017 Q4 2017

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ColorFill

For the first time on mobile: the classic gameplay of solitaire combined with the ex-citement of horse rac-ing! Promising metrics with solid user reten-tion and ARPDAU.

Sequel to a fishing game portfolio with over 15 million installs on mobile devices worldwide. Has been in soft launch for eight months, which has provided us with live operations data to improve the product before global release.

Sequel to a unique RPG game with an Apple “App Store Editors’ Note.” Our goal is to improve upon the original’s already-strong ARPDAU while solving for long term retention.

In this unique, art-themed puzzle game, you must apply the correct color paint within each square to successfully reveal the masterpieces hidden beneath.

Page 17: Ticker: TAPM An Emerging Mobile Gaming Leader · SNAPSHOT An Emerging Mobile Gaming Leader • Our portfolio consists of more than 300 mobile gaming titles with over 400mm player

D I V E R S I F I E D R E V E N U E S O U R C E SAdvertising & App Store Purchases

June 30, 2017 (YTD):

54% of Bookings

June 30, 2017 (YTD):

46% of Bookings

AdvertisingApp Store Purchases

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Page 18: Ticker: TAPM An Emerging Mobile Gaming Leader · SNAPSHOT An Emerging Mobile Gaming Leader • Our portfolio consists of more than 300 mobile gaming titles with over 400mm player

M O N E T I Z AT I O N B E S T P R A C T I C E SOur Ads Do Not Disrupt Gameplay & Provide Value to Users

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No Ads During Gameplay INTERSTITIAL ADS Shown Between Levels

Ads Tie Into Game Currency REWARDED VIDEO ADS Provide Value

1 2

1 2

Page 19: Ticker: TAPM An Emerging Mobile Gaming Leader · SNAPSHOT An Emerging Mobile Gaming Leader • Our portfolio consists of more than 300 mobile gaming titles with over 400mm player

Free to Play

Monetize Gameplay with Consumables & Non-Consumables

M O N E T I Z AT I O N B E S T P R A C T I C E S Our In-App Purchases Enhance Gameplay

1

2

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Page 20: Ticker: TAPM An Emerging Mobile Gaming Leader · SNAPSHOT An Emerging Mobile Gaming Leader • Our portfolio consists of more than 300 mobile gaming titles with over 400mm player

O P E R AT I O N A L E X C E L L E N C E Creating Barriers to Entry

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Zero paid marketing to acquire game’s first 100k players

Top search placement & ability to move games up the leaderboards

Strong platform editorial relationships

(11 “New Games We Love” on iOS)

Expertise in Live Operations:Player analytics, attribution, and

ad optimization

• Cross Promotion System

• App Store Optimization

• Platform Relationships

• Data Analytics

300+ Games

250,000+ Daily Installs

11m+ MAU

400m+Installs

Page 21: Ticker: TAPM An Emerging Mobile Gaming Leader · SNAPSHOT An Emerging Mobile Gaming Leader • Our portfolio consists of more than 300 mobile gaming titles with over 400mm player

P L AY E R & G A M E M E T R I C SWe Have Built a Robust & Defensible Network

M e t r i c s a s o f Q 2 2 0 1 7 :

· Average DAUs – 627,000

· Average MAUs – 11.1 million

· Average New Daily Downloads – 272,000

· Cumulative Downloads – 423 million as of June 30, 2017

· Game Library – 304 active titles as of June 30, 2017

· Game Concentration – Diverse portfolio with no single game accounting for more than 25%

of total revenues during the six months ended June 30, 2017

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Page 22: Ticker: TAPM An Emerging Mobile Gaming Leader · SNAPSHOT An Emerging Mobile Gaming Leader • Our portfolio consists of more than 300 mobile gaming titles with over 400mm player

F U T U R E O P P O R T U N I T I E SVirtual Reality (VR) and Augmented Reality (AR)

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• VR likely had its first $1 Billion year in 2016.* The VR

industry is expected to hit $30 Billion by 2020**

• The Company has released several prototype VR

games as it gathers data before pursuing a more

significant VR product

* Deloitte Global

**DigiCapital, April 201521

• The AR industry is expected to hit $120 Billion by

2020**

• Apple recently announced “the largest AR platform

in the world.” The Company sees this as a significant

opportunity given its strength on iOS

Page 23: Ticker: TAPM An Emerging Mobile Gaming Leader · SNAPSHOT An Emerging Mobile Gaming Leader • Our portfolio consists of more than 300 mobile gaming titles with over 400mm player

F U T U R E O P P O R T U N I T I E SPublishing and Acquisitions

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• Pursue publishing transactions that leverage our

network, platform relationships, and operational

excellence

• There are significant opportunities for expanding

our gaming IP to new platforms including Steam and

leading messaging apps. Our first Steam game will

launch in Q3

Page 24: Ticker: TAPM An Emerging Mobile Gaming Leader · SNAPSHOT An Emerging Mobile Gaming Leader • Our portfolio consists of more than 300 mobile gaming titles with over 400mm player

R E V E N U E

O P. I N C O M E ( L O S S )

N E T I N C O M E ( L O S S )

A D J U S T E D E B I T D A*

C A S H

T O TA L A S S E T S

T O TA L L I A B I L I T I E S

S T O C K H O L D E R S ’ E Q U I T Y

$2,448,051

(893,718)

(1,924,008)

522,892

1,487,196

2,837,097

1,080,043

1,757,054

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12 monthsDEC 31, 2015

(audited)

* Unaudited. See Adjusted EBITDA footnote on page 3.

12 monthsDEC 31, 2016

(audited)

$3,731,774

(12,263)

(2,347,675)

871,268

590,461

2,415,171

1,296,500

1,118,670

F I N A N C I A L H I G H L I G H T S+30% Annual Bookings Growth Target for 2017-2019

Page 25: Ticker: TAPM An Emerging Mobile Gaming Leader · SNAPSHOT An Emerging Mobile Gaming Leader • Our portfolio consists of more than 300 mobile gaming titles with over 400mm player

K E Y FA C T S

SHARE STATISTICS

Trading Symbol (OTC) TAPM

Stock Price (08/25/17) $0.12

CommonShares Outstanding (06/30/17) 59.5mm

30d Avg. Volume (08/25/17) 44,200

Market Cap (08/25/17) $8.0mm

Float (06/30/17) 12.1mm shares

Insider Ownership (06/30/17) 58%

OTHERPersonnel 10 FTE

Fiscal Year Ends 12/31

Website Tapinator.com

Corporate HQ New York, NY

Legal Quick Law Group

Auditor Liggett & Webb, P.A.

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Page 26: Ticker: TAPM An Emerging Mobile Gaming Leader · SNAPSHOT An Emerging Mobile Gaming Leader • Our portfolio consists of more than 300 mobile gaming titles with over 400mm player

T H A N K Y O U

For more information and a copy of our presentation, go to: http://tapinator.com/investors

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