Devolver Digital (DEVO) H2 2024 earnings summary

Executive summary

• Achieved strong performance in 2024, returning to profit and growth, in line with guidance.

• System Era Softworks contributed fully for the year, integrating well post-acquisition.

• Record average Metacritic score of 79 for new releases, with over 30 award nominations and multiple wins.

Financial highlights

• Revenue reached $104.8m, up 13% year-over-year.

• Gross profit was $30.1m, up 23% year-over-year, with gross margin expanding to 28.7%.

• Adjusted EBITDA was $5.1m, a turnaround from $(0.5)m in FY23.

• Operating cash flow increased 90% year-over-year to $22.3m.

• Cash balance at year-end was $41.6m.

Outlook and guidance

• At least 13 titles scheduled for release in 2025, with performance expected to be 2H weighted.

• Single-digit revenue growth and stronger Adjusted EBITDA anticipated for 2025.

• Continued strong back catalogue contribution and additional paid DLC expected.