YL

Yuga Labs Financial Model

• Core existing IP: Bored Ape Yacht Club (BAYC, 10k NFTs), Mutant Ape Yacht Club (MAYC), Bored Ape Kennel Club (BAKC). Members granted commercial IP ownership rights - a key differentiation that turned holders into a distributed marketing force.
• Planned product: "MetaRPG" - an interoperable gaming metaverse built on a narrative lore ("Kodas / celestials") with blockchain-based land ownership, in-game economy, primary/secondary NFT markets, and an SDK for third-party developers and game builders (described as "an in-game app store").
• Currency: APECoin - the unifying in-game and ecosystem currency; will also support a soft currency for more accessible spending.
• Land: 200k total land plots across two drops of 100k each; 30% of genesis drop reserved for BAYC/MAYC holders, ~70k for public sale. Launch partner: Animoca Brands.
• 10,000 unique Kodas randomly distributed across land plots as rare NFTs.
• Third-party game pipeline: Animoca (racing game), NWay (PvP arena), plus arcade-style minigames.

• Formal TAM/SAM/SOM framework not presented.
• Market context provided: OpenSea (largest NFT marketplace) saw 600x transaction volume increase in 2021; daily volume exceeding $150M in 2022 YTD; 1M+ active user wallets.
• BAYC collections account for ~10% of OpenSea volume.
• App store gaming context (used to size metaverse opportunity): Games = 71% of total app revenue in 2020; iOS $47.6B + Google Play $31.9B in 2020; annual app revenue grew from $43.5B (2016) to $111B (2020).
• Fortnite benchmark: $5.4B (2018), $3.7B (2019), $5.1B (2020).

Five distinct revenue streams identified:

• APECoin / token economics: Deck mentions "% of APE Token" as a revenue line but no specifics on tokenomics economics or treasury split are provided.
• COGS is almost entirely nominal (6.49M / $539M revenue = 1.2% in 2022 budget), consistent with digital-asset model where production cost is decoupled from unit economics.

Financials ($ millions): | Metric | Actual 2021 | Budget 2022 | | -- | -- | -- | | Total Revenue | $137.58M | $539.30M | | COGS | $6.23M | $6.49M | | Gross Profit | $131.35M | $532.81M | | Gross Margin | 95.5% | 98.8% | | Total OpEx | $4.24M | $77.61M | | Net Revenue (EBIT proxy) | $127.11M | $455.20M | | Net Margin | 92.4% | 84.4% |

Key metrics headline (context unclear - likely 2022 budget vs. prior period):

• Revenue: $402M, +306%
• Net Revenue: $328M, +258%
• Note: These figures are inconsistent with the income statement ($539M / $455M); likely represent a subset period or different cut. Flag as data gap.

Monthly net revenue before tax - 2022 budget ($ millions): Jan $8.0 | Feb $2.5 | Mar $175.1 | Apr $5.5 | May $4.3 | Jun $15.1 | Jul $6.3 | Aug $194.1 | Sep $20.7 | Oct $19.2 | Nov $18.1 | Dec $17.1 (March spike = Land Sale 1; August spike = Land Sale 2)

2022 Revenue channel mix:

• Land Sales (primary): 66.2%
• BAYC Secondary: 19.5%
• Mecha Ape: 9.3%
• Land Sales Secondary: 3.6%
• Goblins Secondary: 1.0%
• Mechanical Dogs: 0.4%

NFT collection floor prices (as of Feb 2022):

• BAYC: 117 ETH floor, 6.3K unique holders
• MAYC: 24.4 ETH floor, 11.6K unique holders
• BAKC: 9.9 ETH floor, 5.4K unique holders

Community / social (as of Feb 2022):

• Twitter: 625K followers; +163,534 last 30 days; 18M profile visits in January; 545K mentions; 9.45M impressions
• Instagram: 550K followers; +167,670 last 30 days; 12,900 avg likes/post; reached 1.3M accounts in 30 days
• Discord: 135,251 total members; 67,128 visitors in past 28 days; 16,706 comms users (voice + text)
• APE Fest 2021 NYC: max capacity yacht + warehouse party; $100K raised for charity; 3-day event

2021 BAYC + MAYC secondary sales: $106.7M projected net rev (ongoing throughout year)

Roadmap projected revenue line items (2022):

• Land Sale 1 (1–100K): Primary $178.2M + Secondary $10.9M
• Land Sale 2 (101–200K): Primary $178.2M + Secondary $8.5M
• BAKC / MechaDog: $16M
• Ultimate Mecha Ape: $50M
• Koda Airdrop secondary sales: $2.3M

• Gross margin: 95.5% actual 2021, 98.8% budget 2022 - characteristic of NFT primary sales with near-zero digital COGS.
• Land sale unit economics: 1 ETH per plot (conservative) × 100K genesis plots = ~$200M primary; cost of land sale development = $4.6M; implied return = 77x.
• Games investment: $28.2M cost, claimed 20x return.
• Community building: $15.9M cost, return described as "priceless".

• Moat framed around: (1) brand IP ownership model - members hold commercial rights, creating a distributed marketing army of thousands; (2) celebrity and cultural endorsement (Bieber, Curry, Snoop, Fallon, etc.) creating cultural legitimacy; (3) community engagement depth (Discord, treasure hunts, live events); (4) first-mover in NFT-native metaverse with existing audience vs. Web2 incumbents (Meta, Roblox, Decentraland described as "underwhelming").
• Direct NFT competitors not named. Crypto/Web2 metaverse players (Meta/Horizon, Sandbox, Decentraland) referenced negatively as siloed and boring.
• BAYC collections cited as ~10% of OpenSea volume, validating dominant NFT market position.

Founders (pseudonymous):

• Gordon Goner - Co-President
• Gargamel - Co-President
• NoSass - Chief Product Officer
• EmperorTomatoKetchup - Chief Technology Officer

Key executives (named):

• Nicole Muniz (V Strange) - CEO, minority partner; 10+ yrs consumer marketing (Google, Facebook, Nike, HBO, Spotify)
• Jasmin Shoemaker (Soda) - COO; 15+ yrs tech ops (Apple, Facebook)
• Patrick Ehrlund (Pez) - CCO, minority partner; 15+ yrs brand storytelling (EA, Google, HBO)
• Guy Oseary - minority partner; media mogul, founder of Maverick (U2, Madonna), co-founder Sound Ventures with Ashton Kutcher

Team: 46 employees from Google, Oculus, Facebook, Twitter, Apple, Microsoft, Nike, Amex, gaming studios; 46% female.

Funding ask / use of funds: Not explicitly stated in deck. Round size, valuation, and use of proceeds not disclosed.

• Archetype + why: NFT IP + Metaverse Multi-Stream P&L. Yuga Labs is not a SaaS or traditional DTC business - its revenue is driven by discrete NFT drop events (primary sales), ongoing secondary royalty streams, game monetisation, and token economics. The correct model is a drop-event-driven P&L with secondary royalty annuity streams, similar in structure to a gaming publisher / media IP model layered with a royalty income statement. The income statement skeleton already exists in the deck (slide 85) and should be the anchor.

• Forecast horizon & granularity: 3 years (2022–2024), monthly for Year 1 (land drop timing is critical; 2 discrete $178M spikes drive 70%+ of revenue), quarterly for Years 2–3.

• Key drivers & assumptions:

• Scenarios (Base / Bull / Bear - which variables flex):
• Base: Both land drops execute on schedule (Mar + Aug 2022) at 1 ETH/plot; ETH at ~$2,500; secondary royalties sustain at ~50% of 2021 run rate; game revenues per budget.
• Bull: ETH price runs to $4,000+; land plots sell above 1 ETH floor; secondary volumes stay elevated; APECoin creates additional treasury value.
• Bear: Crypto market selloff - ETH drops to $1,000–$1,500; land sale demand weak (floor holds but public auction undersubscribed); secondary royalty volumes collapse 70%+; game investments delayed.

• Required sheets / outputs:

1. Assumptions - all drivers above, ETH/USD rate toggle, drop dates, royalty rate inputs.
2. Revenue Build - monthly for 2022 with drop events modelled as point-in-time; by stream (Land Primary, Land Secondary, BAYC Secondary, MAYC Secondary, BAKC Secondary, New NFT drops, Games, Merch/Events).
3. Income Statement - matching deck structure (Revenue → COGS → Gross Profit → OpEx by category → Net Revenue); annual + monthly 2022.
4. OpEx Schedule - headcount plan driving payroll; marketing/community building tied to events calendar.
5. Cash Flow (simplified) - given near-zero COGS, net revenue approximates cash; show cumulative cash generation and implied runway/treasury.
6. Dashboard - KPI cards: Total Revenue, Net Revenue, Gross Margin %, Net Margin %; land drop progress tracker; revenue channel mix pie.
7. Sensitivity Table - Net Revenue vs. ETH price (x-axis) × land plots sold (y-axis); secondary royalty rate sensitivity.