Core Insights - The wave of hybrid casual games has swept the industry, with major players raising competitive barriers, making it challenging for latecomers to enter the market [1][29] - Tapnation, a French publisher, has maintained a growth rate of approximately 15% to 20% annually, increasing its revenue from $1 million to $50 million (approximately 360 million RMB) over five years [1][2] - The company has successfully transitioned from hyper-casual to hybrid casual games, acquiring significant game assets to diversify its revenue streams [2][30] Group 1 - Tapnation's revenue structure has shifted significantly with the acquisition of games like "Hero Making Tycoon" and "Hero Adventure," which have a 70% in-app purchase (IAP) revenue share compared to the previous 95% reliance on ad revenue [2][30] - The company has achieved profitability since its first year and has maintained profitability for five consecutive years, currently employing around 80 people [1][2] - The flagship game "Thief Puzzle" has accumulated nearly 300 million downloads, showcasing strong sustainability in revenue and user engagement [27] Group 2 - Tapnation's strategy includes acquiring existing profitable games rather than developing new prototypes, allowing for immediate optimization of user acquisition (UA) strategies and revenue generation [26][30] - The company has faced challenges due to market changes post-pandemic, including reduced advertising spending and increased competition for user acquisition [29][30] - Tapnation is actively exploring emerging markets, particularly in Vietnam and Pakistan, to find potential game assets and establish relationships with local developers [33][34] Group 3 - The company has a unique structure with a small core team in Paris and members distributed globally, enabling efficient evaluation and due diligence for potential acquisitions [33] - Tapnation's focus on hybrid casual games is seen as a strategic move to enhance its valuation and appeal to investors, as these games typically have higher user retention and IAP revenue [29][30] - The company is optimistic about growth and profitability in 2025, projecting annual revenue to reach between $55 million and $60 million [2][30]