• Revenue: $106 million in Q2 2024, down from $115 million in Q2 2023.

• Net Income: $15 million net of tax for the period.

• Adjusted EBITDA: $16 million, a slight increase of $600,000 compared to Q2 2023.

• Cash Flow from Operating Activities: Stable at $11 million in Q2 2024.

• Total Cash Position: $140 million at the end of Q2 2024.

• Platform Commissions: Decreased by 16% in Q2 2024 versus prior year.

• Game Operation Costs: Decreased by $2 million in Q2 2024.

• Selling and Marketing Expenses: Decreased by $3 million to $47 million in Q2 2024.

• Bookings: Decreased by 3% year-over-year in Q2 2024.

• Average Bookings per Paying User: Increased by 2% year-over-year.

• Monthly Active Users: Declined by 3% year-over-year.

• Hero Wars: Dominion Era Bookings: Flat year-over-year and quarter-over-quarter.

• Hero Wars: Alliance Bookings: Decreased by 4% year-over-year, flat quarter-over-quarter.

• Pixel Gun 3D Monthly Active Users: Increased by 10% year-over-year.

• Pixel Gun 3D Monthly Paying Users: Increased by 45% year-over-year.

• US Market Bookings Share: 34% in Q2 2024.

• European Region Bookings Share: Increased by 5 percentage points to 29% year-over-year.

• PC Revenue Share: Increased by 4 percentage points compared to Q2 2023.

• Warning! GuruFocus has detected 5 Warning Signs with GDEV.

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 (NASDAQ:GDEV) 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 (NASDAQ: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 (NASDAQ:GDEV)'s stock, with limited trading activity and visibility in the market.