GDEV First Quarter 2025 Financial and Operational Results

Key insights

7 takeaways

01
GDEV reported a profit of $14 million for Q1 2025, a significant turnaround from the $5 million loss recorded in the same period of 2024.
02
Adjusted EBITDA rose to $16 million in Q1 2025, an increase of $17 million compared to the first quarter of 2024.
03
Revenue declined 9% year-over-year to $97 million, driven by a $28 million decrease in bookings and a reduction in revenue recognized from prior-period bookings.
04
Bookings fell to $81 million in Q1 2025 from $109 million in Q1 2024, primarily due to a 26% decline in monthly paying users resulting from a shift in user acquisition strategy.
05
Selling and marketing expenses were reduced by $21 million year-over-year to $42 million as the company pivoted toward a more efficiency-focused user acquisition strategy.
06
The company paid a one-time, nonrecurring special cash dividend of $3.31 per share on March 11, 2025, totaling approximately $56 million in cash outflows.
07
Platform commissions decreased by 13% to $3 million, influenced by a 6% drop in in-game purchase revenue and a higher proportion of revenue coming from PC platforms with lower commission rates.

Summary

GDEV Inc. released its financial and operational results for the first quarter of 2025, highlighting a strategic shift toward operational efficiency despite a contraction in top-line revenue. The company reported a year-over-year revenue decline of 9%, totaling $97 million, primarily driven by a $28 million decrease in bookings compared to the same period in 2024. This reduction in bookings is largely attributed to a 26% decline in monthly paying users, a direct consequence of the company’s deliberate pivot toward a more efficient user acquisition strategy.

Despite the revenue decline, the company achieved a significant improvement in profitability. GDEV recorded a profit of $14 million for the quarter, compared to a $5 million loss in the first quarter of 2024. This turnaround was supported by a $21 million reduction in selling and marketing expenses and stable general and administrative costs. Consequently, Adjusted EBITDA rose to $16 million, an increase of $17 million year-over-year. Cash flows from operating activities also strengthened, reaching $6 million compared to $0.4 million in the prior-year period.

The company’s operational landscape remained relatively consistent regarding platform distribution and geographic reach, though it faced headwinds from global trends in declining advertising CPM rates, which impacted advertisement sales. The financial results reflect a broader corporate focus on optimizing core business performance and enhancing margins. During the quarter, the company also executed a one-time special cash dividend of $3.31 per share, totaling approximately $56 million in outflows. These results, presented in accordance with IFRS alongside non-IFRS measures, underscore a transition toward leaner operations and improved bottom-line stability for the international gaming holding company.