Adventure Box Technologies Interim Report 2020Q3

A quarter characterized by product delivery and strong user growth was followed by a new share issue that makes the company financially stronger than ever before.

QUARTER JULY 1 - SEPTEMBER 30 IN SUMMARY

· The company's net sales during the quarter was SEK 21 thousand (SEK 0 thousand)

· Net profit amounted to SEK -4,080 thousand (SEK -245 thousand)

· Earnings / share was SEK -0.38 (SEK -0,03).

· Net cash flow before financial items was SEK -5,209 thousand (SEK -2,371 thousand)

· The company's cash and cash equivalents amounted to SEK 7,504 thousand (SEK 15,715 thousand) at the end of the quarter.

· The company's equity at the end of the quarter amounted to SEK 30,322 thousand (SEK 40,269 thousand).

PERIOD JANUARY 1 - SEPTEMBER 30 IN SUMMARY

· The company's net sales during the period was SEK 115 thousand (SEK 10 thousand)

· Net profit amounted to SEK -11,350 thousand (SEK -1,532 thousand)

· Net cash flow before financial items was SEK -15,403 thousand (SEK -6,119 thousand)

· In the beginning of April a share issue of 1,412,231 shares at a rate of SEK 6.50 was carried out. Based on the average rate of SEK 7.61 for the preceding 20 days of the share issue, the rebate was approximately 15% on the rate. The capital injec- tion of equity was SEK 9.2 million. The number of shares is 10,625,242 following upon the share issue.

· The subsidiary Adventure Box Incentive AB was formed in June with the purpose of administering the group s incentive programs.

SIGNIFICANT EVENTS AFTER THE END OF THE PERIOD

· In the beginning of October a share issue of 4,444,444 shares at a rate of SEK 13.50 was carried out. The capital injection of equity was SEK 60 million. The number of shares is 15,069,686 following upon the share issue.

CEO STATEMENT: WHAT A GREAT QUARTER

What a quarter we had! We introduced new social features, video advertising and a platform currency. We started a marketing collaboration with KoGaMa and we shared revenue with users around the world. Based on the lessons learned from our growth journey of over 5700% from August 2018 to May 2019, we this summer narrowed our marketing focus. As a result of this narrowing, and of the product improvements, we saw even faster growth than before.

After the end of this quarter, we closed an important financing round with help from Pareto. With the SEK 60 million we raised we are financially stronger than ever before. We will honor the trust investors have placed in us by strategically working towards our goal of becoming the globally leading sharing platform for consumer-created computer games.

Current market leader Roblox has filed their IPO documents with the Securities and Exchange Commission. There is a rumor of an estimated valuation of USD 8 billion. Roblox's downloaded solution remains a solution for "early adopters". The general public will not want to download and install Roblox. Adventure Box streamed solution, which as YouTube, allows users to access content with just one click, is a solution for the mass market. A solution with the potential for viral growth.

To pass this viral tipping point is our main focus. Our mission-to make it easier for users to play, make, and share together-drives us toward this tipping point. We will succeed through close cooperation with our users, and with product excellence.

We continue to develop our business models but focus more heavily on organic growth and long-term profitability. Ensuring a fun ecosystem for trading among our users, and rewarding users who create value for us in sharing content and driving visitors to our platform, will promote our growth

Discovering the kind of content shared most frequently will also help us cross the viral tipping point. With our users, we are creating a new category of computer games. I am convinced that these new games will fundamentally change the computer game industry, this in a way similar to how YouTube has revolutionized the video industry.

To implement our plans quickly, we plan to double our organization over the next few quarters, reaching around 26 employees. Recruitment is now underway mainly for the Stockholm office. First two recruitments are already completed; a senior back end developer in Spain and a senior Community Manager in Stockholm.

Once we have passed the viral tipping point, and our organic growth is exponential, we will increase our marketing efforts to maximize growth. Until then, we continue marketing tests to prepare for acceleration. From the moment we pass the viral tipping point, we will grow rapidly towards the market position we strive for, to be the globally leading sharing platform for consumer-created games.

CASH AND CASH EQUIVALENTS

The company's revenues are still modest. Costs mainly relate to salaries, product development, operations and marketing. At the end of September liquidity was SEK 7.5 million. At the end of October, after the rights issue, liquidity was SEK 63 million.

COVID-19 RELATED ACTIONS

We closely monitor the spread of COVID-19. We have taken proactive measures to reduce the risks for our employees and to ensure that our operations continue to function smoothly.

These measures include working from home and stopping all business trips. As we are an online company with employees in five countries, virtual meetings were already an established working method, and our productivity has been unaffected, perhaps even improved, during this time. Our costs for customer acquisitions continue to be lower than they were before COVID-19. We cannot conclude that this is due to the spread of COVID-19, but it may be that more people choose to play and create their own games when they spend more time at home.

I would like to thank our investors. You have made us better equipped to achieve our vision, to become the globally leading sharing platform for consumer-created computer games.

Christopher Kingdon, CEO, Adventure Box Technology AB (publ)

FOR MORE INFORMATION CONTACT:

Christopher Kingdon, CEO Adventure Box, +46 (0)73 051 1414,

chris@adventurebox.com, corp.adventurebox.com

ABOUT ADVENTURE BOX TECHNOLOGY AB

Adventure Box makes it easy, and fun to make, share and play 3D games online. The company's world-leading streaming technology is patent protected. Founded in Stockholm 2014, the company also has staff in Paris, Seville, Malta and Kerala (India). Adventure Box is traded at Nasdaq First North Growth Market under the short name ADVBOX and ISIN code SE0012955276. Redeye AB with email certifiedadviser@redeye.se and phone number +46 8 121 576 90 is the company's Certified Adviser.

This information is such that Adventure Box Technology AB (publ) is required to disclose in accordance with the EU Market Abuse Regulation. Information was provided through the above contact persons' publication for publication on 18 November 2020 at 8:00 CET.

The report is attached to this press release and is available via the following link: https://corp.adventurebox.com/en/investors/financial-reports/

NY CFO TILL ADVENTURE BOX

Adventure Box rekryterar som ny Chief Finance Officer Sofia Nilsson. Sofia kommer närmast från en position som VP GROW and Head of Accounting hos Nordic Insource Solutions AB. Hon tillträder sin tjänst den 20 april 2021 och efterträder nuvarande CFO Hans Richter.


ADVENTURE BOX WELCOMES NEW CFO

Adventure Box welcomes Sofia Nilsson as new Chief Financial Officer. Sofia leaves her current position as VP GROW and Head of Accounting at Nordic Insource Solutions AB and will begin her new role on April 20,th 2021, replacing the current CFO Hans Richter.


DECEMBER: ÖKAT ANVÄNDARENGAGEMANG MED FÄRRE ANVÄNDARE

Användarstudier och därpå genomförda produktförbättringar har resulterat i bättre användarbeteende, ökad tid spenderad på webbplatsen och fler återvändande användare.


DECEMBER: INCREASED USER ENGAGEMENT WITH FEWER USERS

User experience research followed by product improvements have resulted in better user behavior, increased time spent on site and more returning users.


ADVENTURE BOX JULBREV 2020-12-23

Kära Adventure Box-ägare och/eller Adventure Box-följare!


ADVENTURE BOX CHRISTMAS LETTER 2020-12-23

Dear Adventure Box owner and / or Adventure Box follower,


MICHAEL BENDSEN NY CREATIVE DIRECTOR PÅ ADVENTURE BOX

Efter ett framgångsrikt samarbete under 2020 går nu Michael Bendtsen, välkänd spelentrepenör och en av skaparna av spelplattformen KOGAMA, in i Adventure Box ledningsgrupp som Creative Director.


ADVENTURE BOX SIGNS MICHAEL BENDTSEN AS CREATIVE DIRECTOR

After an autumn of close and successful collaboration, Michael Bendtsen, a well-known games entrepreneur and one of the creative minds behind the gaming platform KOGAMA, joins the leadership team at Adventure Box AB as Creative Director.


Adventure Box byter likviditetsgarant till Pareto Securities

Adventure Box Technology AB (publ) ("Adventure Box" eller "Bolaget") meddelar härmed att Bolaget byter likviditetsgarant till Pareto Securities AB ("Pareto Securities"). Det nya avtalet träder i kraft den 1 februari 2021.


Adventure Box appoints Pareto Securities as liquidity provider

Adventure Box Technology AB (publ) ("Adventure Box" or "the Company") hereby announces that the Company is changing liquidity guarantor to Pareto Securities AB ("Pareto Securities"). The new agreement enters into force on February 1, 2021.


FOKUS GER FÄRRE BESÖKARE

Adventure Box sedan tidigare kommunicerade marknadsföringsstrategi, att fokusera på de användare som skapar och delar innehåll resulterar, som väntat, i initialt färre användare. 1-6 dec sjunker antalet webbsidesbesökare med 67% jämfört med 1-6 november.


FOCUS RESULTS IN FEWER USERS

Adventure Box's previously communicated marketing strategy, focusing on users who create and share content results, as expected, in initially less users. December 1-6, the number of website visitors decreases by 67% compared to November 1-6.


ANDELEN REGISTRERADE ANVÄNDARE ÖKAR TROTS MINSKAD ANNONSERING

Adventure Box har påbörjat en ny strategi fokuserad på att attrahera spelskapare som registrerar sig och skapar spel och har som en del i denna strategi avslutat marknadsföring mot andra kundsegment. Strategin har fallit väl ut och antalet nyregistrerade konton har ökat med 26% jämfört med oktober trots en total minskning av antalet webbsidesbesökare med 42%.


Registered Adventure Box Users Increase Despite Reduced Ad Spend

New strategy places focus on game makers


Adventure Box Technologies Delårsrapport 2020Q3

Ett kvartal kännetecknat av produktleverans och stark användartillväxt följdes upp med en nyemission som gör bolaget finansiellt starkare än någonsin förr.


Adventure Box Technologies Interim Report 2020Q3

A quarter characterized by product delivery and strong user growth was followed by a new share issue that makes the company financially stronger than ever before.


STABILT ANVÄNDARINTRESSE EFTER ÄNDRAT STRATEGIFOKUS

I linje med förväntningarna från den nya strategin fokuserad på organisk tillväxt, visar oktober på endast en mindre minskning av det totala antalet användare. Detta trots, sedan andra halvan av oktober, kraftigt minskad marknadsföring.


STABLE USER INTEREST AFTER CHANGED STRATEGY FOCUS

In line with expectations from the new strategy focused on organic growth, October shows only a small reduction in the total number of users. This despite sharply reduced marketing since the second half of October. User interest remains stable.


EN YTTERLIGARE FOKUSERAD TILLVÄXTSTRATEGI

Med stärkt kassa prioriterar nu Adventure Box fullt ut viral tillväxt.


A MORE FOCUSED GROWTH STRATEGY

With strengthened liquidity, Adventure Box now fully prioritizes viral growth.


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