LIMASSOL, Cyprus, Sept. 04, 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 second quarter and first half-year ended June 30, 2024.
GDEV CEO, Andrey Fadeev stated:
"Over the past months, we've been refining our strategic vision, and now we're prepared to push forward with renewed confidence. Despite the temporary decline in some of our key operational and financial metrics, our ability to maintain a robust revenue mix between PC and mobile platforms — where PC has grown to 42% of our total bookings — underscores our adaptive strategy and resilience. Additionally, our strong cash flow trends, the significant reduction in platform commissions and the reduction of the game operation costs reflect the operational efficiencies we've been able to achieve, reflected in our recording a net profit in Q2 2024 versus a net loss in Q1 2024 and an improvement in Adjusted EBITDA year over year. Each of our studios is laser-focused on delivering the top game for their audience. We are bringing in top talent from the gaming industry, which is helping us turn our long-held ambitions into reality. This journey is driven by strategic growth and a commitment to excellence in everything we do. This isn't just about quick wins; it's about building a strong, sustainable future. We're here for the long haul, dedicated to creating experiences that will impress our players and solidify our position in the market."
Second quarter 2024 financial highlights:
Revenue of $106 million decreased by 8% year-over-year.
Bookings of $108 million decreased by 3% year-over-year primarily due to decrease of advertising bookings while the bookings from in-app purchases remained relatively stable, demonstrating continued user engagement.
Selling and marketing expenses of $47 million decreased by 7% year-over-year driven by our successful shift in user acquisition strategy, focusing on enhancing efficiency and long-term value generation.
Platform commissions decreased by 16% year-over-year, driven by strong performance of our PC platforms, which carry lower commissions.
Profit for the period, net of tax of $15 million in Q2 2024 vs. $20 million in Q2 2023.
Adjusted EBITDA of $16 million in the second quarter of 2024 staying at the same level compared to the second quarter of 20231, highlighting our operational resilience amidst market fluctuations
Cash flows generated from operating activities were $11 million, demonstrating strong cash management and operational efficiency.
European share of bookings increased to 29%, reflecting our growing presence and successful marketing activities in the region.
Product updates:
Hero Wars, our flagship global mid-core franchise, recently celebrated a major milestone with its first-ever in-game collaboration featuring the legendary gaming icon, Lara Croft. This partnership garnered overwhelmingly positive feedback from our player community and was bolstered by extensive brand marketing campaigns. These efforts propelled the Hero Wars brand to an all-time high in Google Trends search interest.
Pixel Gun 3D, our pixel shooter franchise, successfully expanded to the PC platform with its launch on Steam. The game made an impressive debut, ranking among the Top 20 best-selling and Top 50 most-played games and peaking at 25,000 concurrent players. Remarkably, these achievements were secured with minimal marketing spend, enabling us to recover development costs on the very first day of release.
Second quarter and first half 2024 financial performance in comparison
US$ million
Q2 2024
Q2 2023
Change (%)
H1 2024
H1 2023
Change (%)
Revenue
106
115
(8%)
213
234
(9%)
Platform commissions
(23)
(27)
(16%)
(46)
(56)
(18%)
Game operation cost
(12)
(14)
(13%)
(25)
(29)
(12%)
Selling and marketing expenses
(47)
(51)
(7%)
(111)
(129)
(14%)
General and administrative expenses
(9)
(8)
14%
(16)
(16)
2%
Profit for the period, net of tax
15
20
(25%)
13
11
17%
Adjusted EBITDA
16
16
4%
14
4
N/M
Cash flows generated from/(used in) operating activities
11
12
(5%)
12
(0.1)
N/M
N/M: not meaningful
Second quarter 2024 financial performance
In the second quarter of 2024, our revenue decreased by $9 million (or 8%) year-over-year and amounted to $106 million. While bookings for the second quarter of 2024 remained relatively stable, decreasing by $3 million, the decrease in revenue compared to Q2 2023 was primarily driven by a decrease in the recognition of deferred revenues associated with bookings recorded in periods prior to Q2 2024: in Q2 2024, $63 million of revenues resulted from the bookings recorded prior to Q2 2024 compared to $70 million of revenues booked in Q2 2023 which resulted from bookings recorded prior to Q2 2023. Revenues reported in Q2 2023, in turn, were impacted by the recognition of record high bookings generated in 2021. The decrease in revenues also reflects the increasing portion of our bookings in Q2 2024 that are required ...
