GDEV Financial highlights:
First quarter 2024:
- Revenue of $107 million decreased by 10% year-over-year.
- Bookings of $109 million increased by 4% year-over-year.
- Loss for the period of $1 million in Q1 2024 vs. loss of $8 million in Q1 2023.
- Adjusted EBITDA of negative $3 million in the first quarter 2024 compared to negative $12 million in the first quarter of 2023.
The first quarter results highlighted the effectiveness of our strategic initiatives, as our bookings continued to grow. Looking forward, we plan to prioritize user acquisition investments to continue to drive profitable growth. Furthermore, we made significant efforts to enhance our corporate profile, as demonstrated by our recently completed tender offer. Our intention is to reintroduce the shares we purchased in the tender offer into the market with the aim to bolster the trading liquidity and increase our public float. All these steps underscore our commitment to delivering long-term value to our shareholders.
Andrey Fadeev, GDEV CEO
First quarter financial performance in comparison
| US$ million | Q1 2024 | Q1 2023 | Change (%) |
| Revenue | 107 | 119 | (10%) |
| Platform commissions | (23) | (29) | (19%) |
| Game operation cost | (13) | (14) | (11%) |
| Selling and marketing expenses | (63) | (78) | (19%) |
| General and administrative expenses | (8) | (8) | (8%) |
| Loss for the period, net of tax | (1) | (8) | (82%) |
| Adjusted EBITDA | (3) | (12) | (78%) |
| Cash flows generated from/(used in) operating activities | 0.4 | (12) | N/M |
First quarter 2024 financial performance
In the first quarter of 2024, our revenue decreased by $12 million (or 10%) year-over-year and amounted to $107 million, driven primarily by an increase in the change in deferred revenue in the first quarter of 2024 in the amount of $17 million vs. the same period in 2023, partially offset by an increase of $5 million in bookings in the first quarter of 2024 vs. the same period in 2023.
Platform commissions decreased by $6 million (or 19%) in the first quarter of 2024 compared to the same period in 2023 driven by the decrease in revenues, amplified by growth of revenues derived from PC platforms which are associated with lower commissions.
Game operation costs decreased by $2 million, reaching $13 million in the first quarter of 2024, driven mostly by a decrease in employee benefits expenses partially offset by an increase in technical support services.
Selling and marketing expenses in the first quarter of 2024 decreased by $15 million, amounting to $63 million. The decrease is attributed to a shift in user acquisition strategy focused on enhancing efficiency in Q1 2024 vs the same period in 2023.
General and administrative expenses remained relatively stable, decreasing by only $0.7 million in the first quarter of 2024 vs. the same period in 2023.
As a result of the factors above, we recorded a loss for the period, net of tax, of $1 million compared with a loss of $8 million in the same period of 2023. Adjusted EBITDA in Q1 2024 amounted to negative $3 million, an increase of $10 million compared to the same period of 2023.
Cash flows generated from operating activities amounted to $0.4 million in the first quarter of 2024, an increase from negative $12 million in the same period of 2023.
First quarter 2024 operational performance comparison
| Q1 2024 | Q1 2023 | Change (%) | |
| Bookings ($ million) | 109 | 104 | 4% |
| Share of advertising | 7.7% | 7.0% | 0.7 p.p. |
| MPU (thousand) | 381 | 383 | (0%) |
| ABPPU ($) | 88 | 84 | 4% |
Bookings increased by 4% year-over-year in the first quarter of 2024, which can be attributed to the successful marketing campaigns during 2023.
The share of advertisement sales as a percentage of total bookings increased in the first quarter 2024 to reach 7.7%, compared to 7% in the first quarter of 2023. The increase was driven by the successful implementation of advertisement functionality in Island Hoppers from the start of the second quarter of 2023.
| Split of bookings by platform | Q1 2024 | Q1 2023 |
| Mobile | 62% | 64% |
| PC | 38% | 36% |
In the first quarter of 2024, the share of PC versions of our games increased by 2 p.p., compared with the first quarter of 2023.
| Split of bookings by geography | Q1 2024 | Q1 2023 |
| US | 33% | 36% |
| Asia | 23% | 25% |
| Europe | 29% | 23% |
| Other | 15% | 16% |
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Our split of bookings by geography both in the first quarter of 2024 vs. the first quarter of 2023 remained broadly similar, with a certain increase in the share of Europe bookings.
Note: Due to rounding, the numbers presented throughout this document may not precisely add up to the totals. The period-over-period percentage changes are based on the actual numbers and may therefore differ from the percentage changes if those were to be calculated based on the rounded numbers.
The figures in this release are preliminary and unaudited.
Webcast details
To listen to the audio webcast with supplementary slides please follow the link. Prepared remarks are available on gdev.inc.
About GDEV
GDEV is a hub of gaming studios, focused on development and growth of its franchise portfolio across various genres and platforms. With a diverse range of subsidiaries including Nexters and Cubic Games among others, GDEV strives to create games that will inspire and engage millions of players for years to come. Its franchises, such as Hero Wars, Island Hoppers, Pixel Gun 3D and others have accumulated hundreds of millions of installs worldwide. For more information, please visit gdev.inc
