Don't Nod Investor Presentation: October 2023

Key insights

6 takeaways

01
Don't Nod has secured a strong financial position with €64.2 million in cash and equivalents as of June 30, 2023, bolstered by a recent €45.9 million capital raise.See it on page 11
02
The company is transitioning to a dual developer-publisher model, targeting an average of two game releases per year to ensure sustainable growth.See it on page 20
03
There are currently eight projects in production across action, adventure, and narrative genres, designed to leverage the studio's reputation for storytelling.See it on page 17
04
In the first half of 2023, total operating revenues grew by 10.3% to €16.5 million, despite the company reporting a consolidated net loss of €866,000 due to scaling investments.See it on page 10
05
The studio maintains a workforce of 350 employees across Paris and Montreal to support its internal development and co-production pipeline.See it on page 6
06
Ownership is anchored by founder Oskar Guilbert and institutional investor Tencent, providing stability for the company's shift toward a global publisher entity.See it on page 22

Summary

Don’t Nod’s October 2023 investor presentation outlines the company’s strategic evolution into a dual developer-publisher model, emphasizing its commitment to narrative-driven intellectual property. The company aims to achieve sustainable growth by balancing internal game development with external co-production, targeting an average of two game releases per year. This strategy is supported by a robust pipeline of eight projects currently in production, spanning action, adventure, and narrative-focused genres that align with high-performing market segments.

Financial performance for the first half of 2023 reflects a period of significant investment in self-publishing and production scaling. While the company reported a consolidated net loss of €866,000, total operating revenues grew by 10.3% to €16.5 million, driven by increased capitalized production costs. A successful capital raise of €45.9 million has significantly strengthened the company’s cash position, bringing total cash and equivalents to €64.2 million as of June 30, 2023. This liquidity provides the necessary capital to fund its ambitious multi-year development roadmap and maintain a low-indebted balance sheet.

The company operates with a workforce of 350 employees across studios in Paris and Montreal. Its business model relies on a mix of co-production and self-publishing to retain majority ownership of its intellectual property. By focusing on genres such as action-RPGs and narrative adventures, Don’t Nod seeks to capitalize on established player preferences while leveraging its reputation for high-quality storytelling. The company’s ownership structure remains anchored by founder Oskar Guilbert and significant institutional backing from Tencent, providing a stable foundation for its ongoing transition toward a global developer-publisher entity.