GDEV (GDEV) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was $106 million, down 8% year-over-year, mainly due to lower deferred revenue recognition and a decline in advertising revenue, while in-app purchases remained stable.

• Net profit for Q2 2024 was $15 million, a turnaround from a Q1 loss, with adjusted EBITDA at $16 million and a margin of 15%.

• Bookings were $108 million, down 3% year-over-year, with mobile contributing 58% and PC rising to 42%.

• Major product launches and collaborations, including Pixel Gun 3D on Steam and a Tomb Raider event, drove user engagement and new player growth.

• Cash position at quarter-end was $50.8 million, with operational cash flow of $11 million.

Financial highlights

• Total costs and expenses (excluding D&A) decreased to $89 million, with selling and marketing expenses at $47 million, down 7% year-over-year.

• Platform commissions fell 16% year-over-year, reflecting a higher share of web and PC platform revenue.

• Game operations costs dropped by $2 million, and general and administrative expenses were $9 million, up 14% year-over-year.

• Cash flow from operations remained stable at $11 million in Q2 2024.

• Earnings per share for Q2 2024 were $0.81, compared to $0.99 in Q2 2023.

Outlook and guidance

• Focus in Q3 will remain on product development, with marketing spend expected to stay at Q2 levels and increase in Q4 and Q1 2025, subject to seasonality.

• Management expects continued strength in in-app purchases and stable advertising monetization, with growth anticipated in H2 2024 and into 2025.

• Plans to reinvest gains from improved lifetime value into user acquisition during peak seasons.

• Forward-looking statements highlight risks and uncertainties, with reference to the 2023 Annual Report for detailed risk factors.