Devolver Digital Trading Update 2023

Devolver Digital’s 2023 trading update highlights a significant financial recovery in the second half of the year, following a challenging first half that saw a $3.5 million loss in normalized adjusted EBITDA. The publisher anticipates full-year revenue of at least $90 million, aligning with previous market expectations. This performance was bolstered by the successful release of titles such as Wizard With a Gun and The Talos Principle 2, alongside the continued commercial strength of back-catalog staples like Cult of the Lamb and Inscryption. The company expects to reach a breakeven point in adjusted EBITDA, excluding non-cash title impairments of up to $2.5 million.

Leadership transitions are central to the company’s current strategic direction. Douglas Morin has stepped down as CEO, with co-founder and major shareholder Harry Miller returning to the position. This leadership shift is accompanied by broader board changes, including the appointment of Kate Marsh as non-executive chair and the addition of COO Graeme Struthers to the board of directors. These moves are intended to support a long-term growth strategy that emphasizes a more balanced release schedule for 2024, which includes upcoming titles such as Pepper Grinder, The Plucky Squire, and Anger Foot.

Strategic adjustments also include a shift in distribution philosophy. The company has consciously declined certain subscription-based deal proposals to prioritize long-term value creation for its intellectual property. By moving away from these arrangements, the publisher aims to unlock greater revenue potential across its portfolio. These findings reflect the company’s focus on stabilizing financial performance and refining its operational approach to ensure sustained growth in the competitive independent publishing landscape.