GDEV reported for the first quarter of 2024. From January to March, the publisher earned $107 million
The developer and publisher of the Hero Wars series released unaudited financial statements for the first three months of this year. Here are the details.
GDEV's revenue for the first quarter was $107 million, which is 10% less than the same quarter last year. Meanwhile, receipts have increased by 4%, reaching $109 million.
Despite solid revenue, GDEV ended the period in the negative. It lost $1 million (last year's losses were more considerable at $12 million). Adjusted EBITDA was also negative at minus $3 million (losses were higher in the first quarter of last year at minus $12 million).
Notably, the negative EBITDA is explained by the company as due to high marketing expenses.
According to the report, the company is successfully working on cost reduction:
- operating costs were reduced by 11% to $13 million;
- advertising and marketing expenses fell by 19% to $63 million;
- platform commission fees also shrank by 19% to $23 million.
Overall, this allowed for positive cash flows from operating activities. While they were negative at $12 million a year ago, by the end of January-March, they stood at $400,000.
Noteworthy points:
- the company is attempting to continue increasing revenue from PC games (year-over-year, the share of PC games grew by 2 percentage points but decreased by 4 percentage points quarterly to 38%);
- even though the primary market for the company's games remains the USA, which accounts for 33% of GDEV's revenue, its share from the European market grew significantly year-over-year by 6 percentage points to 29% this quarter;
- the combined MAU of all the company's products is 14 million.
