Gravity Co. achieved a financial turnaround in 2004 with US$62.3 million in revenue, a 52% year-over-year increase, and US$28.2 million in net income.

According to "Gravity Co. 20‑F: Fiscal Year Ended December 31, 2004": Gravity Co. achieved a financial turnaround in 2004 with US$62.3 million in revenue, a 52% year-over-year increase, and US$28.2 million in net income.

The flagship MMORPG Ragnarok Online is the company's primary revenue driver, accounting for 93.9% of total sales and generating high gross margins of 84%.

According to "Gravity Co. 20‑F: Fiscal Year Ended December 31, 2004": The flagship MMORPG Ragnarok Online is the company's primary revenue driver, accounting for 93.9% of total sales and generating high gross margins of 84%.

The business model relies heavily on international licensing agreements, which expose the company to significant regulatory, market, and compliance risks in key territories like China, Taiwan, and Thailand.

According to "Gravity Co. 20‑F: Fiscal Year Ended December 31, 2004": The business model relies heavily on international licensing agreements, which expose the company to significant regulatory, market, and compliance risks in key territories like China, Taiwan, and Thailand.

Foreign-currency exposure is a major risk factor, as 79% of sales are denominated in foreign currencies without any hedging strategies, leaving cash flows vulnerable to won appreciation.

According to "Gravity Co. 20‑F: Fiscal Year Ended December 31, 2004": Foreign-currency exposure is a major risk factor, as 79% of sales are denominated in foreign currencies without any hedging strategies, leaving cash flows vulnerable to won appreciation.

The company faces high concentration risk and limited financial flexibility, with no existing credit lines and a reliance on future equity issuances or a Sunny YNK loan due in mid-2005.

According to "Gravity Co. 20‑F: Fiscal Year Ended December 31, 2004": The company faces high concentration risk and limited financial flexibility, with no existing credit lines and a reliance on future equity issuances or a Sunny YNK loan due in mid-2005.

Governance and control are characterized by a 48.9% founder stake and constraints on ADS holder rights, which limit voting and pre-emptive capabilities under Korean law.

According to "Gravity Co. 20‑F: Fiscal Year Ended December 31, 2004": Governance and control are characterized by a 48.9% founder stake and constraints on ADS holder rights, which limit voting and pre-emptive capabilities under Korean law.

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Key Insights

Gravity Co. 20‑F: Fiscal Year Ended December 31, 2004

Gravity Co.~457 min full read

01
Gravity Co. achieved a financial turnaround in 2004 with US$62.3 million in revenue, a 52% year-over-year increase, and US$28.2 million in net income.
02
The flagship MMORPG Ragnarok Online is the company's primary revenue driver, accounting for 93.9% of total sales and generating high gross margins of 84%.
03
The business model relies heavily on international licensing agreements, which expose the company to significant regulatory, market, and compliance risks in key territories like China, Taiwan, and Thailand.
04
Foreign-currency exposure is a major risk factor, as 79% of sales are denominated in foreign currencies without any hedging strategies, leaving cash flows vulnerable to won appreciation.
05
The company faces high concentration risk and limited financial flexibility, with no existing credit lines and a reliance on future equity issuances or a Sunny YNK loan due in mid-2005.
06
Governance and control are characterized by a 48.9% founder stake and constraints on ADS holder rights, which limit voting and pre-emptive capabilities under Korean law.

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