Core Insights - GDEV Inc. reported a decline in revenue for Q4 2024, with total revenue of $98 million, down 11% year-over-year, primarily due to a decrease in bookings [4][6][10] - The company experienced a significant drop in profit for the period, net of tax, which fell to $2 million from $11 million in Q4 2023, attributed to increased finance expenses and losses from equity-accounted associates [8][10] - Adjusted EBITDA for Q4 2024 was $12 million, reflecting a 22% increase year-over-year, indicating improved operational efficiency despite revenue declines [6][8][20] Financial Performance - Revenue for Q4 2024 was $98 million, down from $109 million in Q4 2023, marking an 11% decrease [3][4] - Full-year revenue for 2024 totaled $421 million, a 9% decline from $465 million in 2023 [3][4] - Platform commissions decreased by 16% to $21 million in Q4 2024, driven by a 10% drop in revenues from in-game purchases [5][6] - Selling and marketing expenses decreased by 14% year-over-year to $47 million, reflecting a strategic shift towards higher-margin audiences [6][10] Operational Performance - Total bookings in Q4 2024 were $94 million, down 11% from $106 million in Q4 2023, primarily due to a 19% decline in monthly paying users [10][11] - Average Bookings Per Paying User (ABPPU) increased by 10% year-over-year to $102, indicating improved monetization [6][10] - The share of bookings from the European market grew by 5 percentage points to 32%, showcasing successful user acquisition campaigns [6][10][13] Geographic and Platform Distribution - The geographic distribution of bookings remained stable, with Europe increasing its share to 32% in Q4 2024, while the US remained at 34% [12][13] - The split of bookings by platform showed mobile at 57% and PC at 43%, consistent with the previous year [12][13] Cash Flow and Financial Position - Cash flows from operating activities were $5 million in Q4 2024, down from $10 million in Q4 2023, but the company maintained a strong cash position of $1512 million [9][10]

Core Points - GDEV Inc. announced a one-time special cash dividend of $3.31 per share, payable on March 11, 2025, to shareholders of record as of March 3, 2025 [1] - The ex-dividend date for Nasdaq trading will be March 12, 2025, and the closing bid price of GDEV shares before the announcement was $12.82 [2] - The opening trading price of GDEV's shares on the ex-dividend date will be adjusted to reflect the special dividend payment [3] Company Overview - GDEV Inc. is a gaming and entertainment holding company focused on developing and growing its franchise portfolio across various genres and platforms [4] - The company has subsidiaries including Nexters and Cubic Games, and its franchises have achieved over 550 million installs and $2.5 billion in bookings worldwide [4]

Group 1 - GDEV Inc. shares experienced a significant increase of 46.6%, closing at $20.90, following a higher-than-average trading volume, contrasting with a 14.7% decline over the previous four weeks [1][2] - The rise in GDEV's stock price is attributed to the announcement of a one-time special cash dividend of $3.31 per share, totaling approximately $60 million, funded from accumulated profits, which reflects the company's commitment to shareholder value [2][3] - The company is projected to report quarterly earnings of $0.17 per share, indicating a year-over-year decline of 66%, with expected revenues of $106.15 million, down 2.7% from the same quarter last year [3][4] Group 2 - The consensus EPS estimate for GDEV has remained unchanged over the last 30 days, suggesting that stock price movements may not sustain without trends in earnings estimate revisions [4] - GDEV holds a Zacks Rank of 3 (Hold), indicating a neutral outlook, while another company in the gaming industry, Skillz Inc., also holds a Zacks Rank of 3 [4][5] - Skillz is expected to report an EPS of -$1.07, reflecting a 2.9% decline from the previous year, and has returned -2.8% over the past month [5]

Core Points - GDEV Inc. has announced a one-time special cash dividend of $3.31 per share, yielding approximately 20% based on the average share price over the last 30 trading days [1][2] - The total special dividend amounts to around $60 million, funded from GDEV's accumulated profits, and represents a portion of its total cash balance of approximately $153 million as of Q3 2024 [2][3] - This special dividend reflects GDEV's commitment to disciplined capital allocation and long-term value creation, optimizing its capital structure by reducing excess liquidity [3][4] - The special dividend is a one-time distribution and does not indicate the establishment of a recurring dividend program, with no further dividends anticipated in the near future [3][4] Company Overview - GDEV Inc. is a gaming and entertainment holding company focused on developing and growing its franchise portfolio across various genres and platforms [5] - The company has a diverse range of subsidiaries, including Nexters and Cubic Games, and its franchises have accumulated over 550 million installs and $2.5 billion in bookings worldwide [5]

Core Points - GDEV Inc. has appointed Andrey Fadeev as Chairperson of the Board, marking a strategic evolution in the leadership structure to enhance alignment between strategic oversight and operational execution [1][3] - Natasha Braginsky Mounier will step down as Independent Chairperson and leave the Board, receiving a severance payment for her service [1][2] - The Board will maintain an independent majority with three out of five directors remaining independent, ensuring adherence to corporate governance best practices [2] Company Overview - GDEV is a gaming and entertainment holding company focused on developing and growing its franchise portfolio across various genres and platforms [4] - The company has subsidiaries including Nexters and Cubic Games, and its franchises have achieved over 550 million installs and $2.5 billion in bookings worldwide [4]

Core Viewpoint - GDEV Inc. has experienced significant selling pressure, resulting in a 15.7% decline in stock price over the past four weeks, but analysts anticipate improved earnings in the near future [1] Group 1: Stock Performance and Technical Indicators - GDEV's Relative Strength Index (RSI) is currently at 29.01, indicating that the stock may be oversold and could be poised for a rebound as selling pressure exhausts [4] - The RSI is a momentum oscillator that helps identify oversold conditions, typically when the reading falls below 30, suggesting potential entry opportunities for investors [2] Group 2: Earnings Estimates and Analyst Sentiment - Over the last 30 days, the consensus EPS estimate for GDEV has increased by 72.3%, reflecting a strong agreement among analysts regarding improved earnings [5] - GDEV holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, indicating a favorable outlook for the stock [5]

Group 1 - GDEV Inc. is part of the Consumer Discretionary sector, which includes 270 companies and ranks 4 in the Zacks Sector Rank [2] - GDEV Inc. has a Zacks Rank of 2 (Buy), with a consensus estimate for full-year earnings increasing by 340% over the past quarter, indicating improved analyst sentiment [3] - Year-to-date, GDEV has returned 17%, outperforming the average gain of 11.3% for Consumer Discretionary stocks [4] Group 2 - GDEV Inc. belongs to the Gaming industry, which consists of 41 companies and currently ranks 126 in the Zacks Industry Rank; the industry has an average gain of 21.4% year-to-date, indicating GDEV is slightly underperforming its industry [5] - Another notable stock in the Consumer Discretionary sector is Paramount Global, which has returned 12.7% year-to-date and has a Zacks Rank of 1 (Strong Buy) [4][6] - The Media Conglomerates industry, to which Paramount Global belongs, has gained 17.1% year-to-date and ranks 80 [6]

Financial Data and Key Metrics Changes - In Q3 2024, revenue amounted to $111 million, reflecting a 5% growth quarter-over-quarter but a 9% decline year-over-year [8][11] - Bookings declined by 8% year-over-year to $93 million, attributed to a focus on long-term product improvements [8][9] - Net profit in Q3 2024 was $15 million, down from $24 million in the same period last year, primarily due to lower revenue and higher marketing spend [11] - Adjusted EBITDA for the quarter was $16 million, down $13 million year-over-year [11] - Cash flows from operating activities increased to $12 million compared to $8 million in Q3 2023, indicating effective cash management [12] Business Line Data and Key Metrics Changes - The company reduced the number of in-game events and overall monetization to enhance player experience and retention, impacting core titles like Hero Wars, Pixel Gun, and Island Hoppers [9] - Marketing investments increased by $9 million year-over-year, reaching $52 million, reflecting efforts to scale marketing activities across multiple channels [11] Market Data and Key Metrics Changes - Bookings in Europe grew year-over-year, increasing the region's share of total bookings from 26% to 30%, with strong performance in Germany, France, the United Kingdom, and Poland [12] Company Strategy and Development Direction - The company is focused on long-term product changes to foster sustained growth and deeper player engagement, rather than short-term enhancements [5][6] - The appointment of a new Chief Operating Officer aims to guide studios towards achieving strategic goals and fostering sustainable growth [7] - The company is exploring different growth initiatives across product and marketing while maintaining a disciplined approach to costs and expenses [13] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the gaming landscape's rapid evolution, driven by changing player preferences and intensifying competition [5] - The company remains confident in its strategic focus on product evolution and marketing investments, despite being in a transformation phase [11][13] Other Important Information - A one-for-ten reverse stock split was executed to enhance market appeal and liquidity, followed by an at-the-market offering to increase public flow without diluting existing shareholders [14] Q&A Session Summary Question: Success of Pixel Gun on Steam - The launch of Pixel Gun on Steam was successful, stabilizing at around 2,500 to 3,000 concurrent users, with ongoing product improvements planned [16] Question: Capital Allocation and ATM Update - The ATM program is primarily aimed at bolstering liquidity rather than raising capital, with a substantial cash cushion on the balance sheet [17] Question: New Game Development and Franchises - The company has multiple games in development, with some showing good metrics and in scaling mode [18][19] Question: User Acquisition Efficiency - User acquisition efficiency remains stable, with no significant market changes since Q2, and Q4 marketing spend is expected to be similar to Q3 [22][23] Question: Profitability and Bookings Growth - Bookings are expected to remain stable, with profitability anticipated to stay solid in the near term [24][25] Question: Diverging Performance Between Games - Different strategies are applied to Hero Wars: Alliance and Hero Wars: Dominion Era, with a focus on mobile for the former [27][28][30] Question: Synergy Between Games - Cross-promotion has been found less effective; the focus is on cohort analysis and leveraging team strengths for efficiency improvements [33][35] Question: Geographic Expansion - The company is considering expansion into Latin America, Asia, and India, with a focus on adapting products for younger audiences [37][39] Question: M&A Environment - M&A opportunities are being explored opportunistically, particularly for studios in new geographies [44][45]

Core Viewpoint - GDEV Inc. reported quarterly earnings of $0.79 per share, significantly exceeding the Zacks Consensus Estimate of $0.38 per share, but down from $1.20 per share a year ago, indicating an earnings surprise of 107.89% [1] Financial Performance - GDEV Inc. achieved revenues of $110.66 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 6.56%, although this is a decline from year-ago revenues of $121.3 million [2] - Over the last four quarters, the company has exceeded consensus EPS estimates two times and topped consensus revenue estimates only once [2] Stock Performance - GDEV Inc. shares have increased approximately 17.7% since the beginning of the year, compared to a 25.5% gain in the S&P 500 [3] Future Outlook - The company's earnings outlook will be crucial for determining the stock's immediate price movement, with current consensus EPS estimates indicating breakeven on $111.6 million in revenues for the upcoming quarter and $0.60 on $429.93 million in revenues for the current fiscal year [4][7] - The estimate revisions trend for GDEV Inc. is currently mixed, resulting in a Zacks Rank 3 (Hold), suggesting the shares are expected to perform in line with the market in the near future [6] Industry Context - The gaming industry, to which GDEV Inc. belongs, is currently ranked in the bottom 44% of over 250 Zacks industries, indicating potential challenges ahead as the top 50% of Zacks-ranked industries tend to outperform the bottom 50% by more than 2 to 1 [8]

-GDEU November 14, 2024 © GDEV 2024 Disclaimer Forward-looking statements Certain statements in this presentation may constitute "forward-looking statements" for purposes of U.S. federal securities laws. Such statements are based on current expectations that are subject to risks and uncertainties. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The forward-look ...