Limassol,
Financial Highlights:
Full Year 2022:
- Record high annual revenues of
$480 million , growing 11% year-over-year. - Total comprehensive income for 2022 of
$11 million vs. total comprehensive loss of$117 million in 2021. - Adjusted EBITDA of
$98 million for 2022 compared to the$8 million in 2021. - Сash flow generated from operating activities of
$116 million for 2022 growing 10% year-over-year.
Fourth Quarter 2022:
- Quarterly revenues of
$99 million , declining 19% year-over-year. - Total comprehensive loss for the fourth quarter of 2022 of
$76 million vs. total comprehensive income of$18 million in the respective period of 2021 primarily driven by (i) the effect of an impairment of goodwill and investments in equity accounted associates recorded in Q4 2022 in the amount of$63 million vs. nil in 2021; (ii) a decrease in revenues in Q4 2022 in the amount of$24 million as compared with Q4 2021 and (iii) an impairment loss on trade receivables and loans receivable recorded in Q4 2022 in the amount of$24 million vs.$0.1 million in Q4 2021 partially offset by (A) a decrease of selling and marketing expenses in Q4 2022 in the amount of$9 million vs. Q4 2021 and (B) a decrease of platform commissions in Q4 2022 in the amount of$8 million as compared with Q4 2021. - Adjusted EBITDA of negative
$10 million for the fourth quarter of 2022 compared to$27 million in the respective period of 2021. - Сash flow generated from operating activities of
$17 million for the fourth quarter of 2022, declining 62% year-over-year.
Recent Performance Updates:
- Starting from
December 2022 , the Company has substantially increased investments in the acquisition of new players, with total selling and marketing expenses in January to May being (on a preliminary basis) about 30% higher year-over-year than in the correspondent period of 2022. - These increased investments have resulted in (on preliminary basis) approximately 20% growth of average monthly paying users in January to May versus the level in the fourth quarter of 2022.
- Since
February 2023 , the Company had (on a preliminary basis), on average, a single-digit sequential growth of monthly bookings.
Product Updates:
- Hero Wars – our flagship global mid-core franchise reached a remarkable milestone, surpassing
$1.5 billion in cumulative bookings across all platforms, with$1 billion of that amount coming from the mobile platform. There are a range of various product and marketing related initiatives in progress to further enhance the Hero Wars franchise. - Island Questaway – our casual farming adventure franchise, has gained significant traction, demonstrating robust growth both in 2022 and 2023. As of
May 2023 , the game generated more than 8 million installs in total and during January toMay 2023 increased its bookings by approximately 6 times year-over-year vs. the respective period of 2022. - Pixel Gun 3D – our pixel shooter franchise, has recently celebrated its 10th anniversary. The title has accumulated over 180 million downloads solidifying its position as the world's No. 3 mobile first-person shooter by monthly audience1.
- To focus its resources, the Company has taken the decision to stop further development of its early-stage games
Chibi Island and Puzzle Odyssey. Resources will be redirected towards further improvements of the Hero Wars and Island Questaway franchises.
Corporate Updates:
- On
June 22, 2023 , the Company announced that as ofJune 21, 2023 , it had changed its name toGDEV Inc. to reflect its evolution as a holding company focused on the growth of its diversified portfolio of studios and franchises. - On
April 26, 2023 ,Igor Bukhman , co-founder of Playrix and one of the Company’ key shareholders, was appointed as a non-executive Director of the Company, replacingSergei Zaitsev as the designee ofEverix Investments Limited pursuant to its director appointment rights. - On
March 16, 2023 , trading of the Company’ ordinary shares (“GDEV”) and warrants (“GDEVW”) resumed, proving its rigorous adherence to the high standards of Nasdaq andSEC .
Fourth quarter and Financial Year 2022 financial performance in comparison
US$ million | Q4 20222 | Q4 2021 | Change (%) | FY 2022 | FY 2021 | Change (%) |
Revenue | 99 | 123 | (19%) | 480 | 434 | 11% |
Platform commissions | (25) | (33) | (23%) | (130) | (117) | 11% |
Game operation cost | (13) | (6) | >100% | (44) | (19) | >100% |
Selling and marketing expenses | (40) | (51) | (21%) | (153) | (270) | (43%) |
G&A expenses | (8) | (9) | (14%) | (36) | (23) | 57% |
Share listing expense | — | — | — | — | (125) | >100% |
and investments in equity accounted associates' impairment | (63) | — | >100% | (63) | — | >100% |
Impairment loss on trade receivables and loans receivable | (24) | (0.1) | >100% | (30) | (0.1) | >100% |
Total comprehensive income/(loss) | (76) | 18 | >100% | 11 | (117) | >100% |
Adjusted EBITDA | (10) | 27 | >100% | 98 | 8 | >100% |
Cash flows generated from operating activities | 17 | 44 | (62%) | 116 | 106 | 10% |
[1] According to data.ai in 2022 among active first-person shooter games on mobile platforms
[2] Due to a change in accounting judgement in the treatment of the sale of our former
Full Year 2022 financial performance
In the year ended
Platform commissions increased by 11% for the 2022 financial year compared with 2021, in line with the increase in revenues.
Game operation costs increased by
Selling and marketing expenses in 2022 decreased by
General and administrative expenses increased by
As a result of the factors above, together with: (i) the effect of an impairment of goodwill and investments in equity accounted associates recorded in 2022 in the amount of
Cash flows generated from operating activities amounted to
Fourth quarter 2022 financial performance
In the fourth quarter of 2022, our revenue decreased by
Platform commissions decreased by 23% in the fourth quarter of 2022 compared with the same period in 2021, generally in line with the decrease in revenues.
Game operation costs increased by
Selling and marketing expenses in the fourth quarter of 2022 decreased by
General and administrative expenses decreased by
As a result of the factors above, together with: (i) the effect of an impairment of goodwill and investments recorded in Q4 2022 in the amount of
Cash flows generated from operating activities amounted to
Fourth quarter and full year 2022 operational performance
Q4 2022 | Q4 2021 | Change (%) | FY 2022 | FY 2021 | Change (%) | |
Bookings ($ million) | 102 | 144 | (29%) | 449 | 562 | (20%) |
share of advertising | 4.3% | 5.4% | (1.1 p.p.) | 4.5% | 4.9% | (0.4 p.p.) |
MPU (thousand) | 316 | 363 | (13%) | 335 | 362 | (8%) |
ABPPU ($) | 103 | 125 | (18%) | 107 | 123 | (13%) |
Bookings decreased by 29% year-over-year in the fourth quarter of 2022 as the second and the third quarters of 2022 were characterized by significantly lower marketing investments into new player acquisition who could potentially have been converted into payers and provide support to bookings in the fourth quarter of 2022. However, due to the successful scaling of marketing investments during
The share of advertisement sales as a percentage of total bookings decreased in the fourth quarter of 2022 to 4.3% compared to 5.4% in the respective period of 2021 and decreased by 0.4 p.p. in 2022 to 4.5% compared to 4.9% in 2021. A decrease of 1.1 p.p. and 0.4 p.p is mainly due to the general decline of the advertising market in 2022 vs. 2021.
Split of bookings by platform | Q4 2022 | Q4 20213 | FY 2022 | FY 2021 |
Mobile | 60% | 67% | 63% | 68% |
PC | 40% | 33% | 37% | 32% |
In 2022, the share of PC versions of our games increased by 5 p.p., relative to 2021 enabling us to access a wider audience and expanding our addressable market.
Split of bookings by geography | Q4 2022 | Q4 2021 | FY 2022 | FY 2021 |
US | 34% | 30% | 33% | 31% |
24% | 26% | 26% | 25% | |
22% | 20% | 21% | 22% | |
Other4 | 20% | 24% | 20% | 22% |
[3] Split of bookings by platform for 4Q 2021 was updated to correct certain inaccuracies of the previously reported percentages.
Our split of bookings by geography in the fourth quarter and for 2022 remained broadly similar to the split in the fourth quarter and 2021 with a certain increase in the share of US bookings.
Note:
Due to rounding the numbers presented throughout this document may not precisely add up to the totals. The period-over-period percentage changes are based on the actual numbers and may therefore differ from the percentage changes if those would be calculated based on the rounded numbers.
About GDEV
GDEV is a gaming and entertainment powerhouse, focused on growing and enhancing its portfolio of studios. With a diverse range of subsidiaries, including
Contacts:
Investor Relations
Roman Safiyulin | Chief Corporate Development Officer
investor(at)gdev.com
Cautionary statement regarding forward-looking statements
Certain statements in this press release may constitute “forward-looking statements” for purposes of the 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-looking statements contained in this press release are based on the Company’s current expectations and beliefs concerning future developments and their potential effects on the Company. There can be no assurance that future developments affecting the Company will be those that the Company has anticipated. Forward-looking statements involve a number of risks, uncertainties (some of which are beyond the Company’s control) or other assumptions. You should carefully consider the risks and uncertainties described in the “Risk Factors” section of the Company’s 2022 Annual Report on Form 20-F, filed by the Company on
[4] Starting from the second quarter of 2022 the “FSU” category was merged with “Other” category due to the substantial decrease of its share in the total bookings and lower strategic importance as a result of user acquisition investment suspension since
Presentation of Non-IFRS Financial Measures
In addition to the results provided in accordance with IFRS throughout this press release, the Company has provided the non-IFRS financial measure “Adjusted EBITDA” (the “Non-IFRS Financial Measure”). The Company defines Adjusted EBITDA as the total comprehensive income/(loss) as presented in the Company's financial statements in accordance with IFRS, adjusted to exclude (i) other comprehensive income/loss, (ii) goodwill and investments in equity accounted associates' impairment, (iii) loss on disposal of subsidiaries, (iv) income tax expense, (v) net finance income/expense, (vi) change in fair value of share warrant obligations and other financial instruments, (vii) share of loss of equity-accounted associates, (viii) depreciation and amortization, (ix) share-based payments and (x) certain non-cash or other special items that we do not consider indicative of our ongoing operating performance. The Company uses this Non-IFRS Financial Measure for business planning purposes and in measuring its performance relative to that of its competitors. The Company believes that this Non-IFRS Financial Measure is a useful financial metric to assess its operating performance from period-to-period by excluding certain items that the Company believes are not representative of its core business. This Non-IFRS Financial Measure is not intended to replace, and should not be considered superior to, the presentation of the Company’s financial results in accordance with IFRS. The use of the Non-IFRS Financial Measure terms may differ from similar measures reported by other companies and may not be comparable to other similarly titled measures.
Reconciliation of the total comprehensive income/(loss) to the Adjusted EBITDA
(US$ million) | Q4 2022 | Q4 2021 | FY 2022 | FY 2021 |
Total comprehensive income/(loss) for the year, net of tax | (76) | 18 | 11 | (117) |
Add back: | ||||
Other comprehensive (income)/loss | (1) | (0.4) | (3) | (0) |
and investments in equity accounted associates' impairment | 63 | — | 63 | — |
Loss on disposal of subsidiaries | — | — | 5 | — |
Tax expense | (0.7) | 0.3 | 4 | 1 |
Finance (income)/expense, net | (2) | 1 | 0.3 | 3 |
Change in fair value of share warrant obligations and other financial instruments | (0.3) | 4 | (3) | (10) |
Share of loss of equity-accounted associates | 4 | — | 10 | — |
Listing expense | — | — | — | 125 |
D&A | 2 | 0.8 | 7 | 3 |
Share-based payments | 0.7 | 3 | 4 | 4 |
Impairment of intangible assets | 0.1 | — | 0.5 | — |
Adjusted EBITDA | (10) | 27 | 98 | 8 |
Contacts: Investor RelationsRoman Safiyulin | Chief Corporate Development Officer investor(at)gdev.com https://gdev.inc/
Source: GDEV
2023 GlobeNewswire, Inc., source