Kuuhubb Inc.’s (OTC: BCDMF, TSVX: KUU.V) strategy to build a portfolio of bespoke games and apps that target the female audience is a potentially lucrative proposition as mobile app sales continue to generate substantial revenue opportunities. At Kuuhubb, the mission to earn its share of the rewards starts out simply – position itself to address what they believe to be an underserved gaming market in which women account for roughly 46% of all gamers globally. More specifically, this is a market opportunity that is estimated to encompass nearly one billion users.
While the end result from user demand can be attractive, Kuuhubb first needs to draw the attention of potential users. To do that, the company is staying focused on the highly popular Match-3 app genre, commonly referred to as tile-matching games. These games represent a significant revenue-generating opportunity, and Kuuhubb is aiming to capitalize on the game genre’s popularity. Industry reports generated through sources like HubSpot suggest that the segment’s most popular titles can earn upwards of USD 25-50M in monthly revenue, and may combine for more than USD 5B in annual revenues.
Kuuhubb Is Developing Winning Games and Apps
Kuuhubb is already bringing top-rated match-3 games to market, including Tiles & Tales, the company’s second-generation flagship game, and Kuuhubb’s key focus in the calendar year 2020. Tiles & Tales is the first game in the market to merge match-3 games and interactive visual novels, and Kuuhubb believes that the combination has the potential to capture a larger audience size and simultaneously introduce players to another popular gaming genre.
Moreover, Kuuhubb’s Recolor By Numbers, a leading coloring app, recently reached a Top 10 spot in Apple’s Top App charts. Additional Kuuhubb titles include games like My Hospital, Dancing Diaries, and Recolor, each integrating bespoke art and visuals that deliver aesthetically compelling images and extremely entertaining gaming experiences. Kuuhubb announced in April that its flagship game, Recolor, experienced a rise of 214% in its Android Monthly Active Users, resulting in over 30% growth of Recolor Android revenue for March 2020.
And, while Recolor may be earning the likes of users, Kuuhubb may be ideally positioned for long-term growth based on at least three additional metrics. First, the company is targeting a market that is already estimated to be a more than one-billion-person opportunity that continues to grow. Second, the company is strategically focused on bringing to market innovative, challenging, and visually appealing games that cater to the demands of the underserved and substantial female gaming market. Third, the company is well-managed and has a team of business and design professionals that have proven their ability to build multi-generational game concepts.
But, there’s more to the Kuuhubb story…and eSports is an emerging bright spot.
Kuuhubb Focuses On eSports Opportunities
Also crucial to the mix is the inclusion of Kuuhubb into a ResearchAndMarkets.com report that estimates a global eSports viewership market rising to more than 646 million viewers by 2023. To monetize the eSports opportunity, Kuuhubb announced its planned acquisition of Valiance UG, with plans to utilize Valiance’s platform that connects global gaming communities and provide them with opportunities to monetize their gaming engagement.
Few will argue against the company being well-positioned in a significant and growing female gaming market, or that their commitment to driving products and revenues from female gamers in an underserved product development market can deliver substantial long-term rewards. The move toward eSports enhances the global opportunity and takes advantage of the gaming industry’s latest phenomenon.
But, to understand Kuuhubb is to recognize their differences compared to a crowded, competitive landscape. And, filling a void in a multi-billion dollar market can undoubtedly provide a competitive advantage to Kuuhubb. Also, with an in-house crew of developers, artists, and production specialists, Kuuhubb is uniquely positioned to seize upon new market opportunities that combine immensely popular casual and multiplayer elimination genres to create a unique portfolio of games for the female market.
Kuuhubb Responds To COVID-19 Challenges
Kuuhubb proved its resiliency as a global pandemic spread. For many, Covid-19 has resulted in an extraordinary number of employees working from home. At a minimum, social distancing and self-isolation are recommended, while many cities and states are enforcing shelter in place protocols. There is now an even greater need for digital entertainment as face-to-face socialization is, at least for now, nearly impossible if not irresponsible.
Adding to the equation is the nationwide closure of schools and daycare centers, giving work-from-home parents the new stress of keeping their kids busy while trying to maintain normal productivity levels at their jobs. The Wall Street Journal is even tracking digital ideas for families via a cumulative online list.
This unprecedented global environment has created a new level of demand for mobile games and products developed by companies like Kuuhubb. And, Kuuhubb can respond in kind since its products require no need to leave home to get it. It’s a simple download that takes less than a minute to do.
Again, Kuuhubb’s mobile games focus on the underserved female demographic but have the potential for broader reach within families as well. My Hospital, a simulation game appropriate for both teens and adults, immerses the player in the healthcare world by tasking them with designing and managing a medical center.
Parents and kids alike are also drawn to Recolor, a mobile-app coloring book with over 50 million downloads. It has a simple interface and over 3,000 illustrations to choose from, making it an engaging app for every family member in isolation.
Online Use Spikes Amid Coronavirus Outbreak
If social media was an integral part of life before the Covid-19 outbreak, these online platforms are only set to grow as people look for new opportunities to connect with people outside of the home.
Tiles & Tales is the first game to market that combines two of the most popular game genres amongst women: match-3 tiles and visual novel-like storylines. Launched in March 2020, the game’s interactive scenes provide the feeling of socialization, something that is sorely lacking while the world is in self-isolation mode.
More interactions between players will be added this year, in addition to seasonal in-app content that will provide users with genuine social connections. Similarly, Recolor already has an active online community of four million users and tens of millions of images shared online — a core feature of this top-ranked app.
Incorporating social media is an integral part of Kuuhubb’s growth strategy in 2020. Notably, 39% of women discover new games through friends and family, and the company plans to incorporate a network of influencers to help grow user bases.
Kuuhubb Is Attractive From A Business Perspective
Between the company’s portfolio, experienced management, and targeted market, Kuuhubb may be in the best operating position in its history to deliver breakout results in 2020.
Although the billion-person female gaming market is a global estimation, a more targeted survey indicates that women make up roughly 46% of the mobile gaming and app market. That makes them a substantial contributor to the expected $140 billion in total video game sales expected by 2021. And, by creating innovative and inviting content, Kuuhubb may have found the formula that can allow them to earn a sizable share of that enormous dollar market over the next few years.
The Kuuhubb portfolio targets a vast opportunity by appealing to the broader mobile gaming market, treating players to enthusiastically designed images and extremely entertaining games like My Hospital, Dancing Diaries, and Recolor By Numbers, which stand out as examples of the company’s expertise in developing creative, vibrant content that combines artistic creation with fun and challenging themes. In fact, its current international team of over 70 developers, writers, and back-office staff are each contributing toward a common goal of making Kuuhubb a leading provider of gaming content to the female demographic. To get there, Kuuhubb is taking advantage of accretive acquisition opportunities combined with responsible capital management.
Kuuhubb In 2020, Targeting A Huge Female Gaming Market
As noted above, for Kuuhubb, 2020 is setting up to be a potential breakout year. Bringing additional games to market, acquiring new assets, and adding liquidity to the balance sheet can each serve to add momentum to the company and its stock valuation as the year unfolds.
Combining it all, Kuuhubb is in line to deliver breakout results that can build shareholder value. Should the year unfold as planned, keeping an interest in the company beyond its gaming platform may be a wise choice for investors.
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