Nitro Games: Low Risk, High Potential Reward

Research Note

2021-02-23

15:20

Redeye has a favorable view on the news that Nitro Games is developing a game for Snap Inc with an expected soft-launch in 2021. Snapchat is a huge platform with over 250 million DAU's, and over 100 million users have played on its gaming platform. This deal offers a good risk-reward scenario for the company. Nitro Games is starting to build up a strong pipeline of games with different business opportunities. Similar to the case of the Nerf Game we believe a potentially significant revenue boost will come at the earliest at the end of this year. We will make revisions upwards to our financial estimates and valuation in an upcoming update.

DZ

TO

Danesh Zare

Tomas Otterbeck

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