GDEV (US:GDEV)2024-09-04 16:36Financial Data and Key Metrics Changes - In Q2 2024, the company generated revenue of $106 million, a decrease from $115 million in Q2 2023, primarily due to a decrease in the recognition of deferred revenue [6][12] - Bookings decreased by 3% year-over-year, mainly due to a decline in advertising revenue, while in-app purchases remained stable [6][12] - Platform commissions decreased by 16% year-over-year, driven by lower revenues from in-game purchases and a higher share of revenues from the web platform [7] - The company reported a net profit of $15 million and adjusted EBITDA of $16 million, a slight increase of $600,000 compared to the same period in 2023 [12] Business Line Data and Key Metrics Changes - Hero Wars: Dominion Era showed flat bookings year-over-year, with average bookings per paying user growing by 6% quarter-over-quarter and 3% year-over-year [14] - Hero Wars: Alliance experienced a 4% year-over-year decrease in bookings, but remained flat quarter-over-quarter, focusing on product improvements for future user acquisition [15] - Pixel Gun 3D saw a 10% year-over-year increase in monthly active users and a 45% increase in monthly paying users, indicating strong brand recognition [17] - Island Hoppers improved retention and monetization of paying users, with a focus on building marketing infrastructure for future user acquisition [18] Market Data and Key Metrics Changes - The U.S. market contributed 34% of total bookings, while the European region increased its share by five percentage points to 29% [19] - The share of PC revenue increased by four percentage points year-over-year, attributed to the release of Pixel Gun 3D on Steam and good performance of Hero Wars: Dominion Era [19] Company Strategy and Development Direction - The company aims to enhance user experience and increase retention, engagement, and monetization metrics, with plans to reinvest gains into user acquisition during peak seasons [20] - The focus is on product development rather than aggressive marketing spending until products are optimized [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in future growth due to improved market predictability and internal initiatives enhancing business efficiency [10][30] - The company does not expect substantial increases in advertising monetization but anticipates strong in-app purchases [28] Other Important Information - The company is working on a program to improve stock liquidity and broaden the shareholder base, which may take several months to implement [35][37] Q&A Session Summary Question: Marketing spend and user scale relationship - Management expects marketing spend in Q3 to be comparable to Q2, focusing on product development before increasing spending in Q4 [21] Question: Potential for expanding Hero Wars distribution on PC - Management sees promise in the Steam platform and plans to prepare the product for a larger scale launch in 2025 [22] Question: Outlook on CPM rates - Management noted that CPM rates have stabilized and do not expect substantial deviations in the near term [24][25] Question: Bookings and user acquisition effectiveness - Management indicated that the trend of stable in-app purchases and declining advertising monetization is expected to continue, with solid growth anticipated in H2 2024 [28] Question: Strategy to improve stock liquidity - Management acknowledged the need for increased visibility and plans to participate in more investor conferences and roadshows [35][38]