GDEV Inc. Q2 FY2024 earnings call

• Andrey Fadeev emphasized the future focus, diversifying beyond a single asset, and the potential of the Hero Wars franchise, including a collaboration with Lara Croft. • Alexander Karavaev discussed financial results: revenue down, bookings stable, game operation costs down $2M, selling and marketing expenses down $3M to $47M, net profit $15M, adjusted EBITDA $16M, cash from ops $11M, and total cash position $140M. • Roman Safiyulin detailed operational metrics: average bookings per paying user up 2% y-o-y, monthly active and paying users relatively flat. Product updates included focus on product improvement for Hero Wars: Alliance, good start of Pixel Gun 3D PC Edition on Steam, and improvements in Island Hoppers' retention and monetization.

In Q2 2024, GDEV generated revenue of $106 million, down from $115 million in 2023. Bookings were relatively stable, down 3% y-o-y mainly due to a decline in advertising revenue. In-app purchases, the core revenue stream, were stable. Hero Wars: Dominion Era had flat bookings with average bookings per paying user up 6% q-o-q and 3% y-o-y. Pixel Gun 3D franchise saw a 10% y-o-y increase in monthly active users and 45% y-o-y increase in monthly paying users. Island Hoppers improved retention and monetization of paying users. The U.S. market was the largest revenue contributor at 34%, with Europe's share increasing 5 percentage points y-o-y to 29%.

• Plan to concentrate on product across all titles and platforms to enhance gaming experience and increase player lifetime value. • Not scaling marketing investments now, saving cash for future investments after product enhancement. • Expect strong growth potential in the second half of 2024 and 2025, especially with improved products.

• Forward-looking statements may not develop as expected. • Risks and uncertainties detailed in SEC filings.

Q: How do you think about the relationship between the scale of your users and forward-looking budget for marketing?

A: Expect Q3 marketing spend to be comparable to Q2, increase in Q4 and Q1 2025.

Q: How do you think about the potential of expanding the distribution for Hero Wars on PC?

A: Plan to prepare the product better for scaling on PC platform in 2025.

Q: Is there anything you see in the market that may change your view on CPM rates in upcoming quarters?

A: Market normalization observed, trend stable with possible year-end changes.

Q: Bookings remain stable vs Q1 but down y-o-y. Is this a general market trend and how does it play into H2 bookings growth?

A: Trend likely to continue, expectations solid for H2 growth.

Q: Update on underlying FTP market?

A: Market more predictable, LTV improvements and stable trends.

Q: Profit up despite stable/down bookings. Is this due to more efficient user acquisition?

A: Both payment conversion, retention, and addressing lifetime course.

Q: Any strategy to broaden shareholder base and improve stock liquidity?

A: Have a program in place taking several months, including roadshows and NDRs, focusing on mid-to-long term.