Regarding financial highlights, GDEV reported record-high annual revenues of $480 million for 2022, marking an 11% increase compared to the previous year. Additionally, the company achieved a total comprehensive income of $11 million for 2022, a notable turnaround from the total comprehensive loss of $117 million in 2021. Adjusted EBITDA for 2022 reached $98 million, significantly up from $8 million in 2021, with cash flow from operating activities totaling $116 million, reflecting a 10% year-over-year growth.
However, the fourth quarter of 2022 presented some challenges for GDEV, with quarterly revenues declining by 19% year-over-year to $99 million. The company reported a total comprehensive loss of $76 million for Q4 2022, compared to a total comprehensive income of $18 million in 2021. This was primarily driven by an impairment of goodwill and investments in equity-accounted associates, a decrease in revenues, and impairment losses on trade and loans receivable.
Fourth quarter and Financial Year 2022 financial performance in comparison
| US$ million | Q4 20222 | Q4 2021 | Change (%) | FY 2022 | FY 2021 | Change (%) |
|---|---|---|---|---|---|---|
| Revenue | 99 | 123 | (19%) | 480 | 434 | 11% |
| Platform commissions | (25) | (33) | (23%) | (130) | (117) | 11% |
| Game operation cost | (13) | (6) | >100% | (44) | (19) | >100% |
| Selling and marketing expenses | (40) | (51) | (21%) | (153) | (270) | (43%) |
| G&A expenses | (8) | (9) | (14%) | (36) | (23) | 57% |
| Share listing expense | — | — | — | — | (125) | >100% |
| Goodwill and investments in equity accounted associates’ impairment | (63) | — | >100% | (63) | — | >100% |
| Impairment loss on trade receivables and loans receivable | (24) | (0.1) | >100% | (30) | (0.1) | >100% |
| Total comprehensive income/(loss) | (76) | 18 | >100% | 11 | (117) | >100% |
| Adjusted EBITDA | (10) | 27 | >100% | 98 | 8 | >100% |
| Cash flows generated from operating activities | 17 | 44 | (62%) | 116 | 106 | 10% |
Recent performance updates indicate that GDEV has ramped up investments in player acquisition since December 2022, resulting in approximately 30% higher selling and marketing expenses from January to May than in the corresponding period of 2022. This strategy has led to approximately 20% growth in average monthly paying users from January to May 2023 versus Q4 2022, along with single-digit sequential growth in monthly bookings since February 2023.
Product-wise, GDEV’s flagship franchise, Hero Wars, surpassed $1.5 billion in cumulative bookings across all platforms, with $1 billion coming from the mobile platform. Island Questaway, the company’s casual farming adventure franchise, experienced significant traction in 2022 and 2023, with over 8 million installs by May 2023 and a six-fold increase in bookings year-over-year from January to May 2023.
Fourth quarter and full year 2022 operational performance
| Q4 2022 | Q4 2021 | Change (%) | FY 2022 | FY 2021 | Change (%) | |
|---|---|---|---|---|---|---|
| Bookings ($ million) | 102 | 144 | (29%) | 449 | 562 | (20%) |
| share of advertising | 4.3% | 5.4% | (1.1 p.p.) | 4.5% | 4.9% | (0.4 p.p.) |
| MPU (thousand) | 316 | 363 | (13%) | 335 | 362 | (8%) |
| ABPPU ($) | 103 | 125 | (18%) | 107 | 123 | (13%) |
In corporate updates, GDEV changed its name to GDEV Inc. on June 22, 2023, reflecting its evolution as a holding company focused on portfolio growth. Additionally, Igor Bukhman, co-founder of Playrix, was appointed as a non-executive Director on April 26, 2023, replacing Sergei Zaitsev. Trading of the company’s ordinary shares (“GDEV”) and warrants (“GDEVW”) resumed on March 16, 2023, demonstrating adherence to Nasdaq and SEC standards.
These financial and operational updates provide insights into GDEV Inc.’s performance and strategic initiatives in the game industry.
