FY and 4Q 2023 Financial Results

GDEV’s financial and operational performance for the fourth quarter and full fiscal year of 2023 reveals a period of strategic transition characterized by improved profitability despite declining year-over-year revenues. The company reported a full-year profit of $46 million, a significant recovery from the $7 million reported in 2022. However, fourth-quarter revenue fell 19% year-over-year to $109 million, and full-year revenue declined from $480 million to $465 million. This shift in the bottom line was supported by a reduction in total costs and expenses, which dropped from $454 million in 2022 to $420 million in 2023.

Operational metrics show a mixed engagement landscape. Monthly Paying Users (MPUs) grew to 359,000 in the fourth quarter of 2023, up 14% from the previous year, yet Average Bookings Per Paying User (ABPPU) decreased by 18% to $92. Total bookings for the quarter reached $106 million, representing a 4% year-over-year increase. The company’s portfolio remains heavily reliant on the Hero Wars franchise, with Hero Wars: Alliance and Hero Wars: Dominion Era accounting for a combined 89% of bookings. Geographically, the United States remains the primary market at 34% of bookings, followed by Europe at 27% and Asia at 24%.

The financial position as of December 31, 2023, shows total assets of $321 million and a cash balance of $72 million. While the company generated $18 million in net cash from operating activities during the year, this was a sharp decline from the $116 million generated in 2022, largely due to changes in deferred revenue and platform commissions. The methodology for these results relies on IFRS financial statements supplemented by non-IFRS measures like Adjusted EBITDA, which totaled $43 million for the full year, to provide a clearer view of core operating performance by excluding non-cash impairments and one-time charges.