Fresh from delivering another set of ‘better than expected’ results, tinyBuild’s eight-year franchise Hello Neighbor reached a new all-time peak concurrent user (CCU) count on Steam and shipped c.100k units in one week. The burgeoning recovery in the video gaming sector is at that early stage when recovery is often punctuated by faltering, uneven performance (EPIC has just laid off 1,000 staff). But what if recovery is V-shaped and not a protracted ‘U’? The industry still faces multiple challenges but tinyBuild has rebuilt the business over the past three years and its lead indicators now suggest the recovery is stronger than expected. To be sure, wishlists do not turn into unit sales in a straight line, but this ‘tell’ suggests that forecast risk is on the upside. We review the latest KPIs, recap the financials, explore the key elements of tinyBuild’s recovery playbook and review peer datapoints to understand the wider market context. In all, valuation is the least concern for tinyBuild, harking back to the last three difficult years and giving nothing for recovery, in our view. The shares are idling on an undemanding EV/EBITDA 6.3x, vs sector 14.4x. We believe it’s time for investors to consider ‘a double whammy’: better earnings and better rating. Game ON.