Nexters releases Q4 2022 and whole 2002 financial and operational results
June 26, 2023 – Limassol, Cyprus – GDEV Inc. (NASDAQ: GDEV), an international gaming and entertainment company (“GDEV” or the “Company”) released its audited financial and operational results for the fourth quarter and full year ended December 31, 2022.
Full Year 2022:
- Record high annual revenues of $480 million, growing 11% year-over-year.
- Total comprehensive income for 2022 of $11 million vs. total comprehensive loss of $117 million in 2021.
- Adjusted EBITDA of $98 million for 2022 compared to the $8 million in 2021.
- Сash flow generated from operating activities of $116 million for 2022 growing 10% year-over-year.
Fourth Quarter 2022:
- Quarterly revenues of $99 million, declining 19% year-over-year.
- Total comprehensive loss for the fourth quarter of 2022 of $76 million vs. total comprehensive income of $18 million in the respective period of 2021 primarily driven by (i) the effect of an impairment of goodwill and investments in equity accounted associates recorded in Q4 2022 in the amount of $63 million vs. nil in 2021; (ii) a decrease in revenues in Q4 2022 in the amount of $24 million as compared with Q4 2021 and (iii) an impairment loss on trade receivables and loans receivable recorded in Q4 2022 in the amount of $24 million vs. $0.1 million in Q4 2021 partially offset by (A) a decrease of selling and marketing expenses in Q4 2022 in the amount of $9 million vs. Q4 2021 and (B) a decrease of platform commissions in Q4 2022 in the amount of $8 million as compared with Q4 2021.
- Adjusted EBITDA of negative $10 million for the fourth quarter of 2022 compared to $27 million in the respective period of 2021.
- Сash flow generated from operating activities of $17 million for the fourth quarter of 2022, declining 62% year-over-year.
Recent Performance Updates:
- Starting from December 2022, the Company has substantially increased investments in the acquisition of new players, with total selling and marketing expenses in January to May being (on a preliminary basis) about 30% higher year-over-year than in the correspondent period of 2022.
- These increased investments have resulted in (on preliminary basis) approximately 20% growth of average monthly paying users in January to May versus the level in the fourth quarter of 2022.
- Since February 2023, the Company had (on a preliminary basis), on average, a single-digit sequential growth of monthly bookings.
- Hero Wars – our flagship global mid-core franchise reached a remarkable milestone, surpassing $1.5 billion in cumulative bookings across all platforms, with $1 billion of that amount coming from the mobile platform. There are a range of various product and marketing related initiatives in progress to further enhance the Hero Wars franchise.
- Island Questaway – our casual farming adventure franchise, has gained significant traction, demonstrating robust growth both in 2022 and 2023. As of May 2023, the game generated more than 8 million installs in total and during January to May 2023 increased its bookings by approximately 6 times year-over-year vs. the respective period of 2022.
- Pixel Gun 3D – our pixel shooter franchise, has recently celebrated its 10th anniversary. The title has accumulated over 180 million downloads solidifying its position as the world's No. 3 mobile first-person shooter by monthly audience.
- To focus its resources, the Company has taken the decision to stop further development of its early-stage games Chibi Island and Puzzle Odyssey. Resources will be redirected towards further improvements of the Hero Wars and Island Questaway franchises.
- On June 22, 2023, the Company announced that as of June 21, 2023, it had changed its name to GDEV Inc. to reflect its evolution as a holding company focused on the growth of its diversified portfolio of studios and franchises.
- On April 26, 2023, Igor Bukhman, co-founder of Playrix and one of the Company’ key shareholders, was appointed as a non-executive Director of the Company, replacing Sergei Zaitsev as the designee of Everix Investments Limited pursuant to its director appointment rights.
- On March 16, 2023, trading of the Company’ ordinary shares (“GDEV”) and warrants (“GDEVW”) resumed, proving its rigorous adherence to the high standards of Nasdaq and SEC.