GDEV Announces Unaudited Results for the Third quarter and the First Nine Months of 2024
GDEV reported Q3 2024 financial results with revenue of $111 million, showing 5% quarter-over-quarter growth but a 9% year-over-year decline. The company recorded profit of $15 million, down from $24 million in Q3 2023, primarily due to increased marketing expenses. Key metrics include Adjusted EBITDA of $16 million and cash position of $153 million. European bookings share increased by 4 percentage points to 30%. The company established an at-the-market offering for up to 1,757,026 ordinary shares and appointed Olga Loskutova as new Chief Operating Officer.
GDEV ha riportato i risultati finanziari del terzo trimestre del 2024 con ricavi di 111 milioni di dollari, mostrando una crescita del 5% rispetto al trimestre precedente, ma una contrazione del 9% rispetto allo stesso trimestre dell'anno scorso. L'azienda ha registrato un profitto di 15 milioni di dollari, in calo rispetto ai 24 milioni di dollari del terzo trimestre del 2023, principalmente a causa dell'aumento delle spese di marketing. I principali indicatori includono un EBITDA rettificato di 16 milioni di dollari e una posizione di liquidità di 153 milioni di dollari. La quota di prenotazioni in Europa è aumentata di 4 punti percentuali, raggiungendo il 30%. L'azienda ha istituito un'offerta sul mercato fino a 1.757.026 azioni ordinarie e ha nominato Olga Loskutova come nuova Chief Operating Officer.
GDEV informó sobre los resultados financieros del tercer trimestre de 2024 con ingresos de 111 millones de dólares, mostrando un crecimiento del 5% en comparación con el trimestre anterior, pero una caída del 9% en comparación con el año pasado. La empresa tuvo un beneficio de 15 millones de dólares, por debajo de los 24 millones de dólares del tercer trimestre de 2023, principalmente debido al aumento de los gastos de marketing. Las métricas clave incluyen un EBITDA ajustado de 16 millones de dólares y una posición de efectivo de 153 millones de dólares. La participación de reservas en Europa aumentó 4 puntos porcentuales, alcanzando el 30%. La empresa estableció una oferta en el mercado por un máximo de 1.757.026 acciones ordinarias y nombró a Olga Loskutova como nueva Directora de Operaciones.
GDEV은 2024년 3분기 재무 결과를 보고하였으며, 수익은 1억 1,100만 달러로, 전 분기 대비 5% 성장했으나, 전년 대비 9% 하락했습니다. 회사는 1,500만 달러의 이익을 기록하였으며, 이는 2023년 3분기의 2,400만 달러에서 감소한 수치로, 주로 마케팅 비용 증가 때문입니다. 주요 지표로는 조정 EBITDA가 1,600만 달러, 현금 위치는 1억 5,300만 달러입니다. 유럽의 예약 점유율은 4% 포인트 증가해 30%에 달했습니다. 회사는 최대 1,757,026주의 보통주에 대한 시장 제공을 설정하였고, 올가 로스쿠토바를 새로운 COO로 임명했습니다.
GDEV a annoncé les résultats financiers du troisième trimestre 2024 avec des revenus de 111 millions de dollars, enregistrant une croissance de 5 % par rapport au trimestre précédent, mais une baisse de 9 % par rapport à l'année dernière. L'entreprise a affiché un bénéfice de 15 millions de dollars, contre 24 millions de dollars au troisième trimestre 2023, principalement en raison de l'augmentation des dépenses de marketing. Les indicateurs clés incluent un EBITDA ajusté de 16 millions de dollars et une position de trésorerie de 153 millions de dollars. La part des réservations en Europe a augmenté de 4 points de pourcentage pour atteindre 30 %. L'entreprise a établi une offre sur le marché pour un maximum de 1.757.026 actions ordinaires et a nommé Olga Loskutova en tant que nouvelle directrice des opérations.
GDEV hat die Finanzzahlen für das 3. Quartal 2024 veröffentlicht, mit einem Umsatz von 111 Millionen Dollar, der ein Wachstum von 5% im Vergleich zum vorherigen Quartal, aber einen Rückgang von 9% im Jahresvergleich zeigt. Das Unternehmen verzeichnete einen Gewinn von 15 Millionen Dollar, verglichen mit 24 Millionen Dollar im 3. Quartal 2023, was hauptsächlich auf gestiegene Marketingausgaben zurückzuführen ist. Wichtige Kennzahlen sind ein bereinigtes EBITDA von 16 Millionen Dollar und eine Liquiditätsposition von 153 Millionen Dollar. Der Anteil der Buchungen in Europa stieg um 4 Prozentpunkte auf 30%. Das Unternehmen hat ein Marktangebot für bis zu 1.757.026 Stammaktien eingerichtet und Olga Loskutova zur neuen Chief Operating Officer ernannt.
- Revenue grew 5% quarter-over-quarter to $111 million
- Strong cash position of $153 million, up from $140 million in Q2 2024
- European market share of bookings increased by 4 percentage points to 30%
- Game operation cost declined by 6% year-over-year
- General and administrative expenses decreased by 9% year-over-year
- Revenue decreased 9% year-over-year
- Profit declined 38% year-over-year to $15 million
- Adjusted EBITDA decreased 44% year-over-year to $16 million
- Monthly paying users declined 16% year-over-year
- Selling and marketing expenses increased 22% year-over-year to $52 million
Insights
The Q3 2024 results reveal mixed performance with some concerning trends. Revenue declined 9% year-over-year to
Key concerns include a
The shift toward PC gaming and higher ABPPU (
LIMASSOL, Cyprus, Nov. 14, 2024 (GLOBE NEWSWIRE) -- GDEV Inc. (NASDAQ: GDEV), an international gaming and entertainment company (“GDEV” or the “Company”) released its unaudited financial and operational results for the third quarter and first nine months ended September 30, 2024.
GDEV CEO, Andrey Fadeev noted: ”In Q3, despite industry pressure, we delivered sequential revenue growth.
We also kept executing our strategy and moved forward with the transformation of our core products. The updates are rolling across our main franchises to elevate the game experience, adding new modern features to what players already love. We are not after quick wins - it’s about innovating in a way that sets us up for lasting impact.
We are pleased to have established an at-the-market offering (“the ATM”) in September as an important step towards increasing the free float and liquidity of our stock. Under the ATM, the Company may sell up to 1,757,026 ordinary shares of the Company, held in treasury.1. We expect the ATM to be effective until we sell all the treasury shares or for 3 years from the effective date of the Registration Statement whichever is earlier.
I’m also thrilled to share that our former independent director Olga Loskutova has recently joined the management team as our new Chief Operating Officer. However, the board remains within best practices in terms of INED majority directors and one third women. As COO, Olga will be well positioned to enable us to reach our ambitious strategic goals. By staying focused, we’re building momentum for sustainable growth that will shape our future.”
Third quarter 2024 financial highlights:
- Revenue of
$111 million , growing5% quarter-over-quarter, while decreased by9% year-over-year. - Selling and marketing expenses of
$52 million , grew by22% year-over-year and by10% quarter-on-quarter due to the execution of our strategy to scale the business. - We continue to adhere to our disciplined approach towards costs: game operation cost declined by
6% year-over-year while general and administrative expenses declined by9% year-over-year. - Profit for the period, net of tax of
$15 million in Q3 2024 decreased vs.$24 million in Q3 2023 due to scaling of selling and marketing expenses, among other factors. - Adjusted EBITDA of
$16 million in line with the previous quarter.2 - European share of bookings increased by 4 p.p. to
30% , driven by effective and more targeted user acquisition campaigns in the region. - Cash position of
$153 million , compared to$140 million at the end of Q2 2024, providing broad opportunities for further expansion3.
Third quarter and first nine months 2024 financial performance in comparison
| US$ million | Q3 2024 | Q34 2023 | Change (%) | 9M 2024 | 9M 2023 | Change (%) |
| Revenue | 111 | 121 | ( | 323 | 355 | ( |
| Platform commissions | (24) | (28) | ( | (70) | (84) | ( |
| Game operation cost | (13) | (13) | ( | (38) | (42) | ( |
| Selling and marketing expenses | (52) | (43) | (163) | (172) | ( | |
| General and administrative expenses | (7) | (8) | ( | (23) | (24) | ( |
| Profit for the period, net of tax | 15 | 24 | ( | 28 | 35 | ( |
| Adjusted EBITDA | 16 | 29 | ( | 30 | 33 | ( |
| Cash flows generated from/(used in) operating activities | 12 | 8 | 24 | 8 | ||
Third quarter 2024 financial performance
In the third quarter of 2024, our revenue decreased by
Platform commissions decreased by
Game operation cost remained relatively stable at the level of
Selling and marketing expenses in the third quarter of 2024 increased by
General and administrative expenses remained relatively stable at
As a result of the factors above together with, among others, a loss resulting from a change in fair value of share warrant obligation of nil in Q3 2024 vs.
Cash flows generated from operating activities were
Third quarter 2024 operational performance
| Q3 2024 | Q3 2023 | Change (%) | 9M 2024 | 9M 2023 | Change (%) | |
| Bookings ($ million) | 93 | 102 | ( | 310 | 316 | ( |
| Bookings from in-app purchases | 87 | 94 | ( | 288 | 292 | ( |
| Bookings from advertising | 7 | 8 | ( | 22 | 23 | ( |
| Share of advertising | (0.3 p.p) | (0.4 p.p.) | ||||
| MPU (thousand) | 314 | 375 | ( | 359 | 383 | ( |
| ABPPU ($) | 92 | 84 | 89 | 85 | ||
Bookings declined to reach
The share of advertisement sales as a percentage of total bookings decreased in the third quarter of 2024 to reach
| Split of bookings by platform | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
| Mobile | ||||
| PC | ||||
In the third quarter of 2024, the share of PC versions of our games increased by 1 p.p. compared with the same period of 2023.
| Split of bookings by geography | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
| US | ||||
| Asia | ||||
| Europe | ||||
| Other | ||||
Our split of bookings by geography in the third quarter of 2024 vs. the respective period of 2023 remained broadly similar, with a certain increase in the share of Europe bookings.
Note:
Due to rounding, the numbers presented throughout this release may not precisely add up to the totals. The period-over-period percentage changes are based on the actual numbers and may therefore differ from the percentage changes if those were to be calculated based on the rounded numbers.
The figures in this release are unaudited.
Webcast details
To listen to the audio webcast with supplementary slides please follow the link. Prepared remarks are available on gdev.inc.
About GDEV
GDEV is a gaming and entertainment holding company, focused on development and growth of its franchise portfolio across various genres and platforms. With a diverse range of subsidiaries including Nexters and Cubic Games, among others, GDEV strives to create games that will inspire and engage millions of players for years to come. Its franchises, such as Hero Wars, Island Hoppers, Pixel Gun 3D and others have accumulated over 550 million installs and
Contacts:
Investor Relations
Roman Safiyulin | Chief Corporate Development Officer
investor@gdev.inc
Cautionary statement regarding forward-looking statements
Certain statements in this press release may constitute “forward-looking statements” for purposes of the federal securities laws. Such statements are based on current expectations that are subject to risks and uncertainties. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements.
The forward-looking statements contained in this press release are based on the Company’s current expectations and beliefs concerning future developments and their potential effects on the Company. There can be no assurance that future developments affecting the Company will be those that the Company has anticipated. Forward-looking statements involve a number of risks, uncertainties (some of which are beyond the Company’s control) or other assumptions. You should carefully consider the risks and uncertainties described in the “Risk Factors” section of the Company’s 2023 Annual Report on Form 20-F, filed by the Company on April 29, 2024, and other documents filed by the Company from time to time with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should any of the Company’s assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and the Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
Presentation of Non-IFRS Financial Measures
In addition to the results provided in accordance with IFRS throughout this press release, the Company has provided the non-IFRS financial measure “Adjusted EBITDA” (the “Non-IFRS Financial Measure”). The Company defines Adjusted EBITDA as the profit/loss for the period, net of tax as presented in the Company's financial statements in accordance with IFRS, adjusted to exclude (i) goodwill and investments in equity accounted associates' impairment, (ii) loss on disposal of subsidiaries, (iii) income tax expense, (iv) other financial income, finance income and expenses other than foreign exchange gains and losses and bank charges, (v) change in fair value of share warrant obligations and other financial instruments, (vi) share of loss of equity-accounted associates, (vii) depreciation and amortization, (viii) share-based payments expense and (ix) certain non-cash or other special items that we do not consider indicative of our ongoing operating performance. The Company uses this Non-IFRS Financial Measure for business planning purposes and in measuring its performance relative to that of its competitors. The Company believes that this Non-IFRS Financial Measure is a useful financial metric to assess its operating performance from period-to-period by excluding certain items that the Company believes are not representative of its core business. This Non-IFRS Financial Measure is not intended to replace, and should not be considered superior to, the presentation of the Company’s financial results in accordance with IFRS. The use of the Non-IFRS Financial Measure terms may differ from similar measures reported by other companies and may not be comparable to other similarly titled measures.
Reconciliation of the profit for the period, net of tax to the Adjusted EBITDA
| US$ million | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
| Profit for the period, net of tax | 15 | 24 | 28 | 35 |
| Adjust for: | ||||
| Income tax expense | 1 | 2 | 3 | 3 |
| Adjusted finance (income)/expenses5 | (2) | 0.9 | (6) | (2) |
| Change in fair value of share warrant obligations and other financial instruments | — | 0.8 | (0.3) | (10) |
| Share of loss of equity-accounted associates | — | — | — | 0.5 |
| Depreciation and amortization | 2 | 2 | 5 | 5 |
| Share-based payments | 0.7 | 0.7 | 1 | 2 |
| Adjusted EBITDA | 16 | 29 | 30 | 33 |
_______________________________
1 Pursuant to the Company’s registration statement filed with the SEC on Form F-3 (Registration No. 333-282062) and related prospectus, which was filed with the Securities and Exchange Commission on September 12, 2024.
2 For more information, see section titled “Presentation of Non-IFRS Financial Measures” in the last two pages of this report, including the reconciliation of the profit for the period, net of tax to the Adjusted EBITDA.
3 The amounts include investments in liquid high quality securities.
4 The amounts presented for the three and nine months ended September 30, 2023 may be different to those previously reported for these periods earlier as starting from Q1 2024 the Company reports depreciation and amortization expenses by function as a part of game operation cost, selling and marketing expenses, and general and administrative expenses in accordance with IAS 1.
5 Adjusted finance income/expenses consist of other financial income, finance income and expenses other than foreign exchange gains and losses and bank charges, net.
FAQ
What was GDEV's revenue in Q3 2024?
How much profit did GDEV generate in Q3 2024?
What is GDEV's current cash position as of Q3 2024?
How many shares can GDEV sell through its ATM offering?
