The company achieved a net profit of $15 million in Q2 2024, a significant turnaround from the $1 million loss reported in the previous quarter.
Revenue reached $106 million, representing an 8% year-over-year decline, while adjusted EBITDA improved to $16 million from a negative $3 million in Q1 2024.
The Hero Wars franchise remains the primary revenue driver, accounting for 89% of total earnings across its Alliance and Dominion Era titles.
Platform diversification is progressing, with the PC segment growing to 42% of total revenue, up from 38% in the same period last year.
A collaboration between Hero Wars and the Tomb Raider brand successfully increased new payers by 25% year-over-year during the campaign month.
The user base has stabilized at 381,000 monthly paying users, though this figure remains lower than the 392,000 users recorded in the prior year.
The launch of Pixel Gun 3D on Steam recouped all development costs on its first day without the need for dedicated marketing expenditure.
The second quarter 2024 financial results for the organization reveal a period of strategic transition characterized by a slight decline in revenue alongside a significant recovery in profitability. Revenue for the quarter reached $106 million, representing an 8% year-over-year decrease. However, the company reported a net profit of $15 million, a substantial improvement from the $1 million loss recorded in the first quarter of 2024. Adjusted EBITDA followed a similar trajectory, rising to $16 million in the second quarter after a negative $3 million result in the previous period.
Operating metrics indicate a stabilizing user base with 381,000 monthly paying users, consistent with the first quarter but down from 392,000 in the prior year. Average bookings per paying user stood at $88, reflecting a 6% year-over-year decline. 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 revenue. Geographically, the United States remains the primary market at 51% of revenue, followed by Europe at 22% and Asia at 15%.
Strategic highlights for the period include the successful launch of Pixel Gun 3D on PC via Steam, which recouped development costs on its first day without dedicated marketing spend. Additionally, a high-profile collaboration between Hero Wars and the Tomb Raider brand drove a 25% year-over-year increase in new payers during the month of the campaign. While mobile remains the dominant platform at 58% of revenue, the PC segment grew to 42%, up from 38% in the same period last year, signaling a successful push toward platform diversification. These unaudited results suggest that while top-line growth remains pressured, disciplined cost management and brand collaborations are effectively supporting the bottom line.
