Gravity (GRVY) Q4 2024 earnings summary

Executive summary

• 2024 preliminary revenue was KRW 501 billion, down 30.9% year-over-year; operating profit was KRW 85 billion, down 47.0% year-over-year, mainly due to no new releases in 1H 2024 and higher marketing expenses for 2H launches.

• 4Q 2024 preliminary revenue reached KRW 130 billion, up 1.3% quarter-over-quarter but down 10.7% year-over-year; operating profit was KRW 16 billion.

• Growth in Q4 driven by launches of THE RAGNAROK in Southeast Asia, Ragnarok: Rebirth in Taiwan/Hong Kong/Macau, and Ragnarok X: Next Generation in Japan.

• Business portfolio strengthened with multiple new global game launches and expansion into new markets.

Financial highlights

• Annual revenue and operating profit both declined sharply year-over-year, reflecting a challenging release schedule and increased marketing costs.

• Cash and cash equivalents plus short-term financial instruments totaled over KRW 553 billion as of December 31, 2024.

• 4Q 2024 revenue showed slight sequential growth but significant year-over-year decline; operating profit margin compressed.

• Preliminary results are unaudited and subject to revision.

Outlook and guidance

• 2025 strategy focuses on large-scale new title development, global market localization, and IP business expansion through collaborations.

• Multiple new Ragnarok IP-based games scheduled for global launches in 2025 and 2026, including Ragnarok 3, Ragnarok Crush, and Ragnarok Landverse Genesis.

• Expansion into China, Southeast Asia, Latin America, and Europe, with new subsidiaries planned.

• Ongoing development of sequels and new titles, including Ragnarok M: Eternal Love 2 and Ragnarok Promised Adventure.