Devolver Digital Unaudited Results: Six Months Ended 30 June 2024

Key insights

7 takeaways

01
Group revenue rose 18% to US$51.6 million in the first half of 2024, with gross profit up 62% to US$15.3 million.See it on page 1
02
Back catalogue titles generated 89% of game sales revenues in 1H 2024, up from 87% a year earlier.See it on page 3
03
Adjusted EBITDA before performance-related impairments was a US$4.7 million profit, compared with a US$2.5 million loss in 1H 2023.See it on page 6
04
The statutory net loss narrowed to US$4.5 million in 1H 2024 from US$10.1 million in 1H 2023.See it on page 4
05
Cash and cash equivalents were US$31.9 million at 30 June 2024, down from US$42.7 million at year-end 2023, before a July 2024 share placement.See it on page 8
06
The company expects full year 2024 revenues exceeding US$100 million and Adjusted EBITDA in the mid-single digit US millions.See it on page 5
07
A US$1.7 million impairment was recorded against software development costs for 2023 titles, due to lower than expected sales.See it on page 18

Summary

Devolver Digital, Inc., an indie video game publisher and developer registered in Wilmington, Delaware, released unaudited results for the six months ended 30 June 2024, prepared under IFRS and presented on a group basis. The company reported revenue of US$51.6 million, up 18% year-over-year from US$43.9 million, and gross profit of US$15.3 million, up 62%. Three new titles were released in the first half of 2024, with an average Metacritic score of 80, compared with four titles in the first half of 2023. Back catalogue revenues rose 22% and accounted for 89% of game sales revenues.

Adjusted EBITDA before performance-related impairments was a profit of US$4.7 million, compared with a US$2.5 million loss in the prior-year period. After impairments, Adjusted EBITDA was a US$3.0 million profit. The statutory net loss narrowed to US$4.5 million from US$10.1 million, and cash stood at US$31.9 million at 30 June 2024, before US$9.8 million in net proceeds from a share placement in July 2024.

For full year 2024, the company expects revenues over US$100 million and Adjusted EBITDA after non-cash impairments in the mid-single digit US millions, with ten new titles planned. Cash flow from operations in the first half was US$4.6 million.