Release Date: September 04, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- GDEV Inc (GDEV, Financial) reported a profit of $15 million for the second quarter of 2024, with adjusted EBITDA increasing slightly compared to the same period in 2023.
- The company has a strong cash position of $140 million, providing a solid foundation for future development.
- GDEV Inc (GDEV) has successfully optimized costs, reducing game operation costs by $2 million and selling and marketing expenses by $3 million in Q2 2024.
- The launch of Pixel Gun 3D on Steam showed promising results, with a 10% year-over-year increase in monthly active users and a 45% increase in monthly paying users.
- Hero Wars franchise experienced a significant boost in brand visibility and player engagement due to a successful collaboration with Lara Croft, resulting in increased search interest and new player acquisition.
Negative Points
- Revenue for Q2 2024 decreased to $106 million from $115 million in the same period of 2023, primarily due to a decline in deferred revenue recognition.
- Bookings decreased by 3% year-over-year, mainly due to a decline in advertising revenue.
- Monthly active users and monthly paying users across all games declined by 3% year-over-year.
- The company has not heavily invested in user acquisition in recent years, impacting bookings growth.
- There are concerns about the liquidity of GDEV Inc (GDEV)'s stock, with limited trading activity and visibility in the market.
Q & A Highlights
Q: How do you plan to manage marketing spend in relation to user scale and future budgets?
A: Andrey Fadeev, CEO, stated that the focus in Q3 will be on product development rather than overspending on marketing. Marketing spend is expected to remain comparable to Q2, with potential increases in Q4 and Q1 of the next year, subject to seasonality in 2025.
Q: What is the potential for expanding Hero Wars distribution on PC platforms like Steam?
A: Andrey Fadeev, CEO, mentioned that the Steam platform is promising, particularly for Pixel Gun. The company plans to prepare the product for a massive scale on PC, likely in 2025, after ensuring it meets their standards.
Q: With declining CPM rates, do you foresee any changes in the market that could affect these rates?
A: Andrey Fadeev, CEO, noted that the market has stabilized since the second half of 2023. While there might be changes towards the year-end due to large advertising campaigns, the overall trend is stable, and they do not expect substantial deviations.
Q: How do you view the trend of stable in-app purchases offsetting weaker ad bookings, and what are your expectations for bookings growth?
A: Andrey Fadeev, CEO, expects the trend to continue, with strong in-app purchases and stable advertising monetization. While the market is more predictable, it remains volatile, so no specific guidance is provided. However, they have solid expectations for growth in H2 and 2025.
Q: Are there any strategies to improve stock liquidity and broaden the shareholder base?
A: Andrey Fadeev, CEO, acknowledged the need for increased visibility and investor engagement. The company has a program in place to address liquidity, which will take several months to implement. They plan to participate in conferences and roadshows to enhance shareholder awareness.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
