Gravity (GRVY) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached KRW 128.4 billion, up 4.4% sequentially but down 27.1% year-over-year; operating profit was KRW 27.6 billion, up 84% sequentially but down 27.3% year-over-year.

• Net profit attributable to parent was KRW 22.4 billion, up 78.1% QoQ, down 22.7% YoY.

• Profitability improved due to new game launches in major markets and reduced advertising expenses compared to the previous quarter.

• Multiple new Ragnarok IP titles launched across Asia, achieving top rankings in downloads and grossing charts.

• Online game revenue grew 1.1% QoQ and 13.5% YoY, driven by Ragnarok Landverse in Thailand and Ragnarok Online in China.

Financial highlights

• Gross profit for Q3 2024 was KRW 52.1 billion, up from KRW 47.0 billion in Q2 2024.

• Net profit for Q3 2024 was KRW 22.4 billion, down from KRW 26.9 billion in Q2 2024 and KRW 29.0 billion in Q3 2023.

• Cash and cash equivalents increased to KRW 514.0 billion as of Q3 2024.

• Operating expenses decreased to KRW 24.5 billion from KRW 32.0 billion in Q2 2024.

• Other revenue surged 37.6% QoQ and 84.3% YoY.

Outlook and guidance

• Major upcoming launches include Ragnarok 3 (global, 2025), Ragnarok V: Returns (Singapore, Malaysia, Q4 2024), and several new mobile and console titles in 2025.

• Non-Ragnarok titles such as TOKYO PSYCHODEMIC and Gunbound set for global and regional launches in late 2024 and 2025.

• Expansion into South America and Western markets is a strategic focus, aiming to strengthen Ragnarok IP's global competitiveness.