CD Projekt (CDR) Q3 2024 earnings summary

Executive summary

• Cyberpunk 2077 surpassed 30 million copies sold, with its Phantom Liberty expansion reaching 8 million copies, highlighting strong franchise momentum and ongoing player engagement.

• Q3 2024 revenue was PLN 227.6 million, down sharply from Q3 2023 due to the absence of a major release, with net profit at PLN 78.1 million.

• The Witcher franchise's Project Polaris completed pre-production and entered full production, with a stable development team of around 400 developers.

• Collaboration with Netflix on a new Cyberpunk animation and plans for a Mac-native Cyberpunk 2077 Ultimate Edition were announced.

• Major ongoing projects include Polaris, Orion, Sirius, and Hadar, with significant R&D investment in future game development.

Financial highlights

• Q3 2024 sales revenue was PLN 227.6 million, down 49% year-over-year; net profit was PLN 78.1 million, down 61% from Q3 2023.

• For the first nine months of 2024, sales revenue was PLN 652.4 million and net profit was PLN 248.2 million, both down year-over-year.

• Gross profit on sales in Q3 2024 was PLN 164 million, a 45% year-over-year decrease.

• Net profitability for Q3 2024 was 34.3%, compared to 45.8% in Q3 2023.

• Financial reserves in cash, deposits, and bonds reached PLN 1.4 billion at the end of September 2024.

Outlook and guidance

• Seasonal Q4 sales boost is expected, with no unusual competitive pressures anticipated.

• The next two years will focus on franchise longevity, active management, and new content releases, with some surprises expected.

• Plans to double the Orion and Sirius project teams by the end of next year.

• Cyberpunk 2077 Ultimate Edition is scheduled for release on Macs in 2025.

• The Group plans to continue organic growth, focusing on new game development and expanding the CD PROJEKT RED Boston team.