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 ...

Core Insights - GDEV Inc. reported a sequential revenue growth in Q3 2024 despite industry pressures, with a revenue of $111 million, a decrease of 9% year-over-year [1][6][10] - The company is focused on long-term innovation rather than quick wins, enhancing core products to improve player experience [2] - GDEV established an at-the-market offering to increase stock liquidity, allowing the sale of up to 1,757,026 ordinary shares [3] Financial Performance - Q3 2024 revenue was $111 million, down from $121 million in Q3 2023, with a 9% decrease year-over-year and a 5% increase quarter-over-quarter [5][6] - Total bookings for Q3 2024 were $93 million, an 8% decline from $102 million in Q3 2023, attributed to a 16% decrease in monthly paying users [11][12] - Selling and marketing expenses rose to $52 million, a 22% increase year-over-year, reflecting the company's strategy to scale its business [6][9] Operational Highlights - The adjusted EBITDA for Q3 2024 was $16 million, down from $29 million in Q3 2023, indicating a 44% decrease [10][21] - The cash position improved to $153 million from $140 million at the end of Q2 2024, providing opportunities for further expansion [6] - The European share of bookings increased by 4 percentage points to 30%, driven by targeted user acquisition campaigns [6] Cost Management - Game operation costs remained stable at $13 million, while general and administrative expenses decreased by 9% year-over-year to $7 million [6][9] - Platform commissions decreased by 13% to $24 million, influenced by a 9% drop in revenues from in-game purchases [8] Geographic and Platform Insights - The share of bookings by geography remained stable, with the US at 34%, Asia at 22%, and Europe at 30% [14] - The split of bookings by platform showed a slight increase in PC bookings to 38% compared to 37% in Q3 2023 [13]

Core Viewpoint - GDEV Inc. has experienced a significant stock price increase of 23.2% over the past month, outperforming both the industry and major indices, indicating strong market confidence and potential for continued growth [1][2][13]. Stock Performance - GDEV's stock closed at $31.41, which is below its 52-week high of $37.89 but above its 52-week low of $19 [2]. - The stock is currently trading above its 50-day moving average, suggesting robust upward momentum and price stability [3][13]. Factors Driving Growth - GDEV's strategic vision focuses on sustainable growth and operational efficiency, which is expected to enhance player experiences and solidify market position [7][8]. - The company is prioritizing product development and adopting a disciplined approach to user acquisition, reserving cash for future investments [8][9]. - Successful product initiatives, such as the launch of Pixel Gun 3D on Steam, have led to a 10% increase in monthly active users and a 45% growth in monthly paying users [10]. Earnings Estimates - Analysts have revised the Zacks Consensus Estimate for GDEV's earnings per share upward by 300% to 60 cents for the current year and by 126.7% to $1.36 for the next year [11]. Valuation - GDEV is currently trading at a forward 12-month price-to-earnings ratio of 26.25, which is lower than the industry's ratio of 28.37, indicating it is valued at a discount compared to its peers [12][13].

Group 1: Company Overview - GDEV Inc. is part of the Consumer Discretionary sector, which includes 272 individual stocks and currently holds a Zacks Sector Rank of 7 [2] - GDEV Inc. has a Zacks Rank of 1 (Strong Buy), indicating strong analyst sentiment and an improving earnings outlook, with a 48.8% increase in the consensus estimate for full-year earnings over the past quarter [3] Group 2: Performance Comparison - GDEV has gained approximately 45.8% year-to-date, significantly outperforming the average return of 5.1% for Consumer Discretionary companies [4] - In comparison, H&R Block (HRB), another Consumer Discretionary stock, has returned 29.2% since the beginning of the year [4] - GDEV belongs to the Gaming industry, which includes 41 stocks and is currently ranked 145 in the Zacks Industry Rank, with an average gain of 15.4% year-to-date, indicating GDEV's superior performance within its industry [5] Group 3: Industry Insights - The Gaming industry, where GDEV operates, has shown a year-to-date gain of 15.4%, while the Consumer Services - Miscellaneous industry, which includes H&R Block, has gained 7.3% [5][6] - Investors should continue to monitor GDEV Inc. and H&R Block for potential sustained solid performance in the Consumer Discretionary sector [6]

Company Overview - GDEV Inc. (GDEV) shares increased by 34.7% to $33.02 in the last trading session, with a higher-than-average trading volume, contrasting with a 2.1% gain over the past four weeks [1] - The stock rally is attributed to optimism regarding the company's refined strategic vision focused on sustainable growth and operational efficiency [2] Financial Performance - GDEV is expected to report quarterly earnings of $0.38 per share, reflecting a year-over-year decline of 68.3%, with revenues projected at $103.85 million, down 14.4% from the previous year [3] - The consensus EPS estimate for GDEV has been revised 50% higher in the last 30 days, indicating a positive trend that may lead to price appreciation [4] Industry Context - GDEV operates within the Zacks Gaming industry, where Nintendo Co. (NTDOY) also competes, having closed at $13.37 with a 0.4% increase in the last session and a -2.1% return over the past month [4] - Nintendo's consensus EPS estimate remains unchanged at $0.09, representing a 30.8% decline from the previous year, and it holds a Zacks Rank of 2 (Buy) [5]