Animoca Brands, a Web3 gaming company, recently announced a 30% decline in bookings for the year 2023. The company reported a decrease from $402 million in 2022 to $280 million in 2023. This drop was attributed to the slowdown in economic activities in the overall Web3 market, as well as challenges faced by crypto-related businesses due to events like the FTX scandal and the collapse of Luna and TerraUSD.
Despite the decrease in bookings, Animoca Brands saw improvements towards the end of 2023 as digital asset markets strengthened. In the fourth quarter of 2023, bookings increased by 59% over the prior quarter. The company’s key business units, including The Sandbox, TinyTap, Darewise Entertainment, and others, contributed to the overall performance.
In terms of financial highlights, Animoca Brands reported operating expenses of $246 million for the year ending December 31, 2023, up from $234 million in 2022. The company also disclosed having cash and stablecoin balances of $175 million, along with digital assets held on the balance sheet amounting to $203 million.
Moreover, the company mentioned off-balance sheet token reserves of approximately $1.6 billion, including liquid and lower-liquidity tokens. Animoca Brands reported total capital raised from equity and convertible note issuance of $83 million during fiscal year 2023.
Despite the challenges faced during the crypto winter, Animoca Brands continued to focus on developing and expanding its products and services throughout 2023. The company’s Digital Asset Advisory business saw significant growth, accounting for 27% of total bookings for the year.
Additionally, Animoca Brands launched initiatives like Open Campus, a decentralized platform for the education sector, and Mocaverse, a metaverse project aimed at building a Web3 game publishing platform. The company also partnered with TON Blockchain to integrate Web3 gaming into Telegram.
Looking ahead, Animoca Brands has reported unaudited bookings of $90 million for the first quarter of 2024, representing a 72% increase compared to the same period in 2023. The company continues to focus on expanding its operations, forming partnerships, and raising capital to support its growth in the Web3 space.
