GDEV Inc. Q2 FY2024 earnings call

Product Vision - Andrey emphasized future focus, diversifying beyond single asset, and Hero Wars' collaboration with Lara Croft (garnering positive feedback and search interest). - Alexander discussed financials: revenue $106M, adjusted EBITDA $16M, cash position $140M, operating cash flow $11M. - Roman highlighted operating metrics: average bookings per paying user up 2%, MAU and monthly paying users flat. Product updates: Hero Wars titles focused on in-game play depth and product improvements, Pixel Gun 3D PC Edition launched successfully on Steam.

In Q2 2024, GDEV generated revenue of $106 million, down from $115 million in the same period of 2023. Hero Wars: Dominion Era (PC RPG) had flat bookings Y/Y and Q/Q, with average bookings per paying user up 6% Q/Q and 3% Y/Y. Hero Wars: Alliance (mobile RPG) saw 4% Y/Y decline in bookings but flat Q/Q, with focus on product improvements. Pixel Gun 3D franchise had 10% Y/Y increase in monthly active users and 45% Y/Y increase in monthly paying users. Island Hoppers (mobile farming) improved retention and monetization but decreased UA investment. Geographic breakdown: US was 34% of bookings (largest), Europe saw 5% Y/Y increase to 29% of bookings.

Forward-Looking - Focus on product across all titles in next quarters to enhance gaming experience and LTV. - Plan to reinvest gains from LTV improvements into aggressive user acquisition in hot seasons (Q4 2024 and Q1 2025). - Expect solid growth in H2 2024 and 2025, though no specific bookings growth guidance provided.

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, with increase in Q4 and Q1 2025 depending on product readiness.

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

A: Steam is promising; plan to prepare product better for massive scaling on PC 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 seen since H2 2023, with stable trends expected, though year-end may have changes due to retailer campaigns.

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

A: Trend expected to continue, with in-app purchases strong but market still volatile; expect solid growth in H2 and 2025 but no specific guidance.

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

A: Have a program in place to make the company more visible to investors, taking several months to enact, with mid-to-long term focus on shareholder value and liquidity.