GDev Inc: Q2 profit, net of tax $20 mln

GDEV Inc. (NASDAQ: GDEV) reported a total comprehensive income of $21 million for the second quarter of 2023, representing a 36% decline compared to $33 million in the same period of 2022. The company attributed the drop in profit to increased investments in user acquisition, which led to 46% year-over-year rise in selling and marketing expenses to $51 million. Despite the decline in net profit, GDEV noted 14% year-over-year increase in Monthly Paying Users (MPUs), reaching 392,000, driven by these marketing initiatives.

Revenue for the quarter fell 9% year-over-year to $115 million, primarily due to a decrease in deferred revenue changes, while bookings remained relatively stable at $111 million, declining only 1% year-over-year. Platform commissions decreased by 22% to $27 million, reflecting a shift in revenue sources toward the company’s web platform, which incurs lower commission costs. Adjusted EBITDA declined significantly to $17 million from $37 million in Q2 2022, largely due to higher marketing and operational costs.

On the operational side, GDEV highlighted progress in its key franchises. Hero Wars underwent a soft rebranding to differentiate its mobile and PC browser versions, while Island Questaway reached 10 million installs and generated over $6 million in bookings during the quarter. Pixel Gun 3D also showed growth, with an 11% year-over-year increase in bookings. The company emphasized expanding its direct-to-consumer channels and improving monetization strategies across its portfolio.