GDEV, Inc. Q3 FY2021 earnings call

• Launched Nexters Boost accelerator, reviewed dozens of projects. - Released Chibi Island in July, Throne Rush on web in October, with another new game to soft launch soon. - Hero Wars mobile version celebrated fifth anniversary and passed $1 billion lifetime bookings. - Cost structure: $125 million non-cash non-recurring share listing expense; selling and marketing expenses grew 21% but user acquisition cost scaled back; general and administrative expenses grew due to headcount increase and NASDAQ listing costs. - Desktop version of games growing rapidly, accounting for almost a third of bookings; Asia focus led to doubling bookings there; advertising revenue share increased.

Revenue grew 77% year-over-year to reach $115 million in Q3 2021. Adjusted net income turned positive, totaling $8 million in Q3 compared to a $11 million loss in the prior year's comparative period. Operational cash flow grew 59% to $51 million. By platform: Mobile saw growth despite IDFA regulation, desktop now accounts for almost a third of bookings. Geographically, Asia had especially strong growth, doubling bookings there. Advertising revenue share increased more than twice to ~6% of bookings.

• Anticipates bookings to reach $560 million - $570 million this year, adjusted cost and expenses $455 million - $465 million. - Decline in bookings guidance due to platform commission guidance decline, but net topline expectations remain same. - Slightly higher selling and marketing expenses due to more investment in desktop web platform.

• Actual results may differ materially from forward-looking statements. - Refer to Risk Factor section in registration statement on Form-1 with SEC for risk factors causing actual results to differ. - Non-IFRS financial measures used, reconciliation provided on website.

Q: On U.S. bookings up only 5%, reasons; China entry update; feedback on web vs mobile; marketing efficiency in iOS post-IDFA?

A: Anton Reinhold started answering, with Alexander Karavaev and Andrey Fadeev contributing. On U.S. bookings, focus on Asia; China in final stage of signing with local partner; web has different payoff periods and higher CPIs but longer lifespan; marketing efficiency in iOS post-IDFA in line with expectations with healthy cohorts.

Q: On 2022/2023 guidance, Chibi Island marketing ramp up, Q4 trends, marketing efficiency vs competitors?

A: Alexander Karavaev on 2022/2023 guidance not yet provided, Q4 within plan; Anton Reinhold on Chibi Island marketing optimizing cycles, traction seen; on marketing efficiency vs competitors, strong first-party data, market intel, internal tools, experienced team, focus on long-term monetization