MENU

GDEV Inc FY2024 Q2 Earnings Release

Download PDF

Sep, 2024 © GDEV 2024Q2 2024 FINANCIAL RESULTSSeptember 4th, 2024

2Q2 2024 Financial ResultsDisclaimerDue to the rounding the numbers presented throughout this document may not precisely add up to the totals. The period-over-period percentage changes are based on the actual numbers and may therefore differ from the percentage changes if those would be calculated based on the rounded numbersThe figures in this presentation are unaudited. Forward-looking statementsCertain statements in this presentation may constitute “forward-looking statements” for purposes of U.S. federal securities laws. Such statements are based on current expectations that are subject to risks and uncertainties. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements.The forward-looking statements contained in this press release are based on the Company’s current expectations and beliefs concerning future developments and their potential effects on the Company. There can be no assurance that future developments affecting the Company will be those that the Company has anticipated. Forward-looking statements involve a number of risks, uncertainties (some of which are beyond the Company’s control) or other assumptions. You should carefully consider the risks and uncertainties described in the “Risk Factors” section of the Company’s 2023 Annual Report in Form 20-F, filed by the Company on April 29, 2024, and other documents filed by the Company from time to time with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should any of the Company’s assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and the Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.Presentation of Non-IFRS Financial MeasuresIn addition to the results provided in accordance with IFRS throughout this press release, the Company has provided the non-IFRS financial measure “Adjusted EBITDA” (the “Non-IFRS Financial Measure”). The Company defines Adjusted EBITDA as the profit/loss for the period, net of tax as presented in the Company’s financial statements in accordance with IFRS, adjusted to exclude (i) goodwill and investments in equity accounted associates’ impairment, (ii) loss on disposal of subsidiaries, (iii) income tax expense, (iv) other financial income, finance income and expenses other than foreign exchange gains and losses and bank charges, (v) change in fair value of share warrant obligations and other financial instruments, (vi) share of loss of equity-accounted associates, (vii) depreciation and amortization, (viii) share-based payments expense and (ix) certain non-cash or other special items that we do not consider indicative of our ongoing operating performance. The Company uses this Non-IFRS Financial Measure for business planning purposes and in measuring its performance relative to that of its competitors. The Company believes that this Non-IFRS Financial Measure is a useful financial metric to assess its operating performance from period-to-period by excluding certain items that the Company believes are not representative of its core business. This Non-IFRS Financial Measure is not intended to replace, and should not be considered superior to, the presentation of the Company’s financial results in accordance with IFRS. The use of the Non-IFRS Financial Measure terms may differ from similar measures reported by other companies and may not be comparable to other similarly titled measures.

3Q2 2024 Financial ResultsKey operating metrics used in the presentationIn this presentation, we use a number ofkey operating and non-IFRS financial metrics which we believe accurately, in material aspects, reflect the principal parameters of our historic and projected performance. For further information, regarding our operating metrics, see our 2023 Annual Report in Form 20-F filed with the SEC. Operating metrics •Monthly Paying Users (MPUs) are the number of individuals who made a purchase of a virtual item at least once on a particular platform in a calendar month•Average Bookings Per Paying User (ABPPU) is the total Bookings attributable to in-game purchases in a given period, divided by the number of months in that period, divided by the average number of MPUs during the period•Bookings are sales contracts generated from in-game purchases and sales of advertisement in a given periodNon-IFRS measure Adjusted EBITDA. The Company defines Adjusted EBITDA as the profit/loss for the period, net of tax as presented in the Company’s financial statements in accordance with IFRS, adjusted to exclude (i) goodwill and investments in equity accounted associates’ impairment, (ii) loss on disposal of subsidiaries, (iii) income tax expense, (iv) other financial income, finance income and expenses other than foreign exchange gains and losses and bank charges, (v) change in fair value of share warrant obligations and other financial instruments, (vi) share of loss of equity-accounted associates, (vii) depreciation and amortization, (viii) share-based payments expense and (ix) certain non-cash or other special items that we do not consider indicative of our ongoing operating performance. Adjusted EBITDA is a non-IFRS financial measure and should not be construed as an alternative to net income/loss as an indicator of operating performance as determined in accordance with IFRS.

4Q2 2024 Financial ResultsFinancial highlightsRevenue, $MLNTotal costs and expenses, excl. D&A, $MLNProfit/(loss) for the period net of tax, $MLNAdj EBITDA, $MLN-8%8914%-9%999910717%-5%9120%10%10%-10%-1%(1)OtherSelling and marketing expensesPlatform commissions24%9%-3%14%16%1151211091071062Q233Q234Q231Q242Q24202Q23243Q23114Q23-11Q24152Q24162910162Q233Q234Q23-31Q242Q2421%28%51%2Q2322%31%47%3Q2321%25%54%4Q2320%22%58%1Q2421%26%53%2Q24Source: Company Information (unaudited)(1) See slide #3 for definition and slide #11 for reconciliation to profit/(loss) for the period, net of tax

5Q2 2024 Financial ResultsOperating highlightsAverage bookings per paying user, $ Bookings, $MNMonthly paying users, ‘000-3%-1%-6%4%4%-3%14%23%13%0%2%-17%-26%-11%4%1111021061091082Q233Q234Q231Q242Q243923753593813812Q233Q234Q231Q242Q2487849288882Q233Q234Q231Q242Q24Source: Company Information (unaudited)

6Q2 2024 Financial ResultsBy gamesBy platformsBy geographyPixel Gun 3DOtherPCIsland HoppersAsiaMobileHero Wars: Dominion EraEuropeHero Wars: AllianceUSDiversification52%51%37%38%6%5%5%6%2Q232Q2462%58%38%42%2Q232Q2436%34%24%29%24%22%16%15%2Q232Q24Source: Company Information (unaudited)

7Q2 2024 Financial ResultsProduct UpdateTomb Raider collaboration Pixel Gun 3D PC Edition launch•The game entered on debut the Top 20 most sold and Top 50 most played games.•The peak concurrent Steam users count reached 25,000 players.•The game’s development costs were recouped on the first day after the launch.•The game’s launch took place without any marketing expenses, which confirmed the strength of the Pixel Gun 3D brand.•Our first collaboration with another game brand received a highly positive response from the player community.•We launched large-scale brand marketing campaigns, setting a record-high in Google Trends search interest for the Hero Wars brand.•The number of new payers during the month of collaboration saw a 25% YoY and a 17% MoM increase.Source: Company Information (unaudited)

8Q2 2024 Financial ResultsAPPENDIX

9Q2 2024 Financial ResultsConsolidated statement of comprehensive incomeSource: Company Information (unaudited)

10Q2 2024 Financial ResultsConsolidated statement of financial positionSource: Company Information (unaudited)

11Q2 2024 Financial ResultsConsolidated cash flow statementSource: Company Information (unaudited)

12Q2 2024 Financial ResultsReconciliation of the profit/loss for the period to the Adjusted EBITDASource: Company Information (unaudited)(1) Adjusted finance income/expenses consist of all finance income/expenses other than foreign exchange gains/losses and bank charges, net.(2) Starting from Q1 2024 the company reports D&A expenses by function as a part of game operation cost, selling and marketing expenses and general and administrative expenses in accordance with IAS 1.