Devolver Digital H1 2022 Financial Results

Devolver Digital’s financial results for the first half of 2022 reflect a period of revenue growth tempered by a significant shift in net profitability. The publisher reported $53 million in revenue, representing a 14% year-over-year increase. However, the company recorded a net loss of $16.6 million, a sharp contrast to the $79.5 million net profit achieved during the same period in 2021. Despite this, the company maintains a positive outlook, projecting full-year revenue between $130 million and $140 million with an adjusted EBITDA of $27 million to $32 million.

Performance was bolstered by seven new releases in the first half of the year, including Trek to Yomi, Shadow Warrior 3, and Weird West, the latter of which secured over 400,000 players within two weeks of launch. The company’s back catalogue remains a vital revenue driver, accounting for 64% of total earnings. Notable titles such as Inscryption have achieved strong commercial success, reaching 1.46 million units sold since its October 2021 release, while Loop Hero and Death’s Door continue to contribute to ongoing sales.

Looking ahead, the publisher anticipates a strong recovery in the second half of 2022, driven largely by the early success of Cult of the Lamb. That title exceeded full-year expectations by selling one million units in its first nine days, though the publisher noted that high royalty payments associated with this performance may impact margin expansion. With over 30 titles currently in the development pipeline for release between 2023 and 2025, the company is positioning itself for sustained long-term growth.