GDEV reported its first-quarter results for 2024. From January to March, the publisher earned $107 million
The developer and publisher of the Hero Wars series has released unaudited financial statements for the first three months of this year. We share the details.
GDEV's revenue for the first quarter totaled $107 million. This is 10% less than the same quarter last year. However, incoming cash has actually increased by 4%, reaching $109 million.
Despite solid revenue, GDEV ended the period in the red. It lost $1 million (losses were more significant last year—$12 million). The adjusted EBITDA also had a negative value—minus $3 million (in the first quarter of last year, losses were higher—minus $12 million).
As a note, the company attributes the negative EBITDA to high marketing costs.
According to the report, the company is effectively working on reducing expenses:
- operating costs reduced by 11% to $13 million;
- advertising and marketing expenses fell by 19% to $63 million;
- platform fees also decreased by 19% to $23 million.
Together, these efforts allowed the operational cash flow to become positive. While last year it was negative at $12 million, by the end of January-March, it amounted to $400,000.
Noteworthy points:
- The company is attempting to continue increasing PC revenue (the annual share of PC games grew by 2 percentage points but declined by 4 percentage points quarterly—to 38%);
- although the primary market for the company's games remains the U.S., accounting for 33% of revenue, the European market share has significantly increased by 6 percentage points to 29% in annual terms this quarter;
- the combined MAU (monthly active users) of all the company's products totals 14 million.
