GDEV (GDEV) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue grew 5% sequentially to $111 million, but declined 9% year-over-year, reflecting lower bookings and a focus on long-term product improvements.

• Net profit for Q3 2024 was $15 million, down from $24 million in Q3 2023, mainly due to higher marketing expenses.

• Adjusted EBITDA for Q3 2024 was $16 million, a 44% decrease year-over-year but stable sequentially.

• Strategic focus remains on sustainable growth, product innovation, and deeper player engagement, with the appointment of a new COO to drive these efforts.

• Key titles, including Hero Wars and Pixel Gun, are undergoing significant updates to align with evolving player preferences and market trends.

Financial highlights

• Q3 2024 revenue: $111 million, up 5% quarter-over-quarter, down 9% year-over-year.

• Bookings declined 8% year-over-year to $93 million, reflecting reduced in-game events and monetization.

• Net profit was $15 million, down from $24 million in Q3 2023, mainly due to lower revenue and higher marketing spend.

• Adjusted EBITDA was $16 million, down $13 million year-over-year.

• Operating cash flow increased to $12 million from $8 million in Q3 2023.

Segment performance

• Bookings in Q3 2024 declined 8% year-over-year to $93 million, mainly due to a 16% drop in monthly paying users, partially offset by a 10% increase in average bookings per paying user.

• Monthly paying users fell 16% year-over-year to 314,000 in Q3 2024.

• Average bookings per paying user rose 10% year-over-year to $93.

• Mobile accounted for 62% and PC for 38% of Q3 2024 bookings; PC share increased by 1 percentage point year-over-year.

• Europe’s share of total bookings increased from 26% to 30%, with strong performance in Germany, France, the UK, and Poland.