GDEV (US:GDEV)2024-04-29 21:24Financial Performance - For the year ended December 31, 2023, net cash flows generated from operating activities decreased by $98.1 million compared to 2022, primarily due to a $73.1 million increase in cash outflows for acquiring new players and a $27.8 million decrease in bookings [510]. - The company reported a profit of $46.1 million for the year ended December 31, 2023, compared to a profit of $7.4 million in 2022 [509]. - The company experienced a foreign exchange loss of $3.4 million in 2023, compared to a loss of $1.0 million in 2022 [509]. Cash and Liquidity - Cash and cash equivalents totaled $71.8 million at December 31, 2023, down from $86.8 million at the end of 2022 [506]. - The company believes its cash and cash equivalents, along with cash flows from operations, will be sufficient to meet normal operating requirements for the next twelve months [507]. - The company aims to ensure sufficient liquidity to meet financial liabilities, monitoring expected cash inflows and outflows over the next 90 days [719]. Capital Expenditures and Investments - Capital expenditures for the years ended December 31, 2023 and 2022 were $0.8 million and $1.1 million, respectively, with an estimated $0.1 million for 2024 up to the date of the report [505]. - Net cash flows used in investing activities for the year ended December 31, 2023 amounted to $32.5 million, a significant decrease from $171.8 million in 2022, attributed to reduced acquisitions and investments in gaming studios [511]. - The company incurred substantial expenditures in the past for M&A activities and may continue to do so in the future as it evaluates acquisition opportunities [504]. Compensation and Employee Relations - For the fiscal year ended December 31, 2023, the aggregate cash compensation paid to the Company's executive officers was $1,803 thousand [540]. - The aggregate cash compensation paid to the Company's directors was $1,867 thousand [540]. - Performance-based and equity-based compensation is a key component of executive compensation packages [537]. - The Company aims to align the interests of shareholders and management through the 2021 ESOP [551]. - The company has not experienced any work stoppages or strikes due to labor disputes, indicating a good relationship with employees [582]. Foreign Currency Risk - As of December 31, 2023, the company's net exposure to foreign currencies was $15,104 million in Euro, $89 million in Russian Ruble, $(931) million in Armenian Dram, $218 million in Kazakhstani Tenge, and $11 million in United Arab Emirates Dirham [722]. - A 10% strengthening of the USD against the Euro would decrease equity and profit by $1,510 million, while a weakening would increase it by the same amount [724]. - The company has a reasonably possible exposure to foreign currency risk, particularly with respect to the Euro and Russian Ruble [722]. - The total impact of a 10% strengthening or weakening of the USD against all currencies would result in a potential change of $1,448 million in equity and profit or loss [724]. Governance and Compliance - The audit and risk committee includes members who meet the independence requirements of the Sarbanes-Oxley Act and Nasdaq standards, ensuring effective oversight of financial reporting [569]. - The board of directors consists of 7 members, with 3 female and 4 male directors, reflecting a commitment to diversity [581]. - The company has never required an accounting restatement during or after the last completed fiscal year [583].