GDEV Q4 and Full Year 2024 Financial Results

Key insights

7 takeaways

01
GDEV reported a 11% year-over-year revenue decline to $98 million for Q4 2024, primarily driven by a $12 million decrease in bookings compared to the same period in 2023.
02
The Board of Directors authorized a one-time, nonrecurring special cash dividend of $3.31 per share, totaling approximately $60 million in cash outflow.
03
Q4 2024 profit for the period, net of tax, fell to $2 million from $11 million in the same period of 2023, while Adjusted EBITDA increased by $2 million to $12 million.
04
Bookings declined to $94 million in Q4 2024 from $106 million in Q4 2023, largely due to a 19% drop in monthly paying users, despite a partial offset from increased Average Bookings Per Paying User (ABPPU).
05
Selling and marketing expenses were reduced by $8 million to $47 million in Q4 2024 as the company shifted toward a more efficient user acquisition strategy.
06
Advertisement sales as a percentage of total bookings fell to 5.8% in Q4 2024 from 6.5% in Q4 2023, attributed to a global trend of declining CPM rates.
07
Platform commissions decreased by $4 million (16%) in Q4 2024, reflecting a 10% decline in in-game purchase revenue and a shift toward PC platforms with lower commission structures.

Summary

GDEV Inc. reported its financial and operational results for the fourth quarter and full year ending December 31, 2024, highlighting a period of strategic adjustment and shifting revenue recognition. The company, an international gaming and entertainment holding firm, recorded $98 million in revenue for the fourth quarter of 2024, representing an 11% year-over-year decline. This decrease was primarily attributed to lower revenue recognition from historical bookings and a $12 million reduction in current-quarter bookings compared to the same period in 2023.

Operational performance metrics reflected a 19% decline in monthly paying users, which was partially offset by an increase in average bookings per paying user. Total bookings for the quarter reached $94 million, down from $106 million in the prior year. Additionally, the company noted that advertisement sales as a percentage of total bookings fell to 5.8% from 6.5%, driven by a global trend of declining cost-per-mille (CPM) rates. Despite these revenue headwinds, the company maintained stable game operation costs and reduced selling and marketing expenses by $8 million through a more efficient user acquisition strategy.

Profitability for the fourth quarter was $2 million, net of tax, compared to $11 million in the same period of 2023, impacted by equity-accounted associate losses and net finance expenses. However, Adjusted EBITDA rose to $12 million, an increase of $2 million year-over-year. Following these results, the board authorized a one-time, nonrecurring special cash dividend of $3.31 per share. The company continues to manage a diverse portfolio of franchises, including Hero Wars and Pixel Gun 3D, across global markets while transitioning its financial reporting to align with updated accounting standards regarding depreciation and amortization.