Gdev Inc. · NASDAQ:GDEV
Gdev — Investor Presentation (June 2024)
39 slides from Gdev's investor presentation, June 2024
Slide 1: Investor Presentation June 2024
INVESTOR PRESENTATION June, 2024 GDEV INVESTOR PRESENTATION
Slide 2: Disclaimers
Disclaimers Purpose This presentation has been prepared by GDEV Inc. (the “Company”) and is being provided solely for informational purposes and for providing an introduction to the to the Company’s business. The information contained in this presentation shall not be used for any other purpose. No
Slide 3: GDEV is a global gaming company that owns and develops studios
GDEV is a global gaming company that owns and develops studios with popular game IPs across diverse genres and platforms Our studios and games FY2023 financial results (1) (1) (2) (2) Revenue Marketing(9) Returned to both $226m bookings and revenue $465m YoY growth in 4Q23 -3% YoY decline +48% YoY g
Slide 4: GDEV investment thesis
GDEV investment thesis 1 Operating in a market poised for continued structural growth 2 Popular game IPs across diverse genres, platforms and player profiles 3 Expertise in product development and marketing of live service games 4 Aim to develop games striving to be top-tier in their genres 5 Backed
Slide 5: Highly experienced developer and operator of popular games
Highly experienced developer and operator of popular games Rich portfolio of top-tier games by genre Expertise in live service and LTV maximization Top 10 global RPG battler Monthly bookings profile of Hero Wars: Dominion Era (DTC/ proprietary website) ~$2bn #7 7m Since 2016 Lifetime In genre Monthl
Slide 6: Expertise in attracting large audience of players
Expertise in attracting large audience of players Extensive marketing capabilities Expertise in driving traffic to our games Experienced marketing operator both on mobile and PC Monthly installs dynamic of GDEV’s games portfolio(3) $ $ >$120m >$80m mobile user acquisition(1) PC user acquisition(1) i
Slide 7: Resilient and adaptive to market changes
Resilient and adaptive to market changes Strengthened our business in Started recovering in 2023 Cash generating capability with response to external and returned to bookings high level of cash reserve to disruptors in 2022 growth in the fourth quarter remain self-sufficient Year-over-Year growth tr
Slide 8: Proven ability to share best practices and corporate support
Proven ability to share best practices and corporate support Expand the success of Pivot from midcore to Pivot from midcore to Pixel Gun 3D franchise casual genre focus hybrid-casual focus Current projects Current projects Current projects New Pixel Idle tycoon Hybrid-casual platforms spin-offs earl
Slide 9: Gaming is an integral part of human nature
Gaming is an integral part of human nature First games dated back to 5,000 years ago Indicative dynamic of games market revenue Entertainment Industry revenue split Covid-boosted digitalization Smartphone tech wave +25% 2x Internet tech wave 2x ~$170bn $184bn ~$160bn 1994 2008 2019 2023 On-demand me
Slide 10: Structural trends boosting gaming further
Structural trends boosting gaming further Increasing time for online Growing disposable income Economic advancement of entertainment thanks to among gaming native young developing countries where AI-driven productivity gains population gaming is popular Labor hours per worker per day, h:min % of gam
Slide 11: Our vision
Our vision We believe everyone But no single game We aim to provide will become a player suits all tastes and the best game for in the future preferences each player GDEV INVESTOR PRESENTATION 11
Slide 12: Focus studios to develop games striving to be top-tier in their genres
Focus studios to develop games striving to be top-tier in their genres Each studio focus on genre(s) where it GDEV cultivates its studios to develop live service games that strive has strong expertise and experience to be top-tier within the genres of their expertise Monthly bookings profile by gami
Slide 13: Product goals for 2024
Product goals for 2024 • Grow LTV through: o enhancing players’ UX at each playtime stage (early/ mid/ late-game) o delivering new content and big features on regular basis throughout 2H 2024 • Translate the improvements in LTV into increased user acquisition investments • Conduct branding experimen
Slide 14: Robust corporate governance
Robust corporate governance Diverse Board of Directors with extensive expertise in various fields Founder-led management Andrey Fadeev Founder and Chief Executive Officer Alexander Karavaev Chief Financial Officer Natasha Andrey Igor Andrew Marie Tal Olga Braginsky Mounier Fadeev Bukhman Sheppard Ho
Slide 15: How our business works
How our business works GDEV INVESTOR PRESENTATION
Slide 16: How our business works
How our business works Monthly revenue per player Total investments in new players x = LTV CAC = ÷ Lifetime Value Customer Acquisition Average player lifetime Cost Number of new players LTV depends on player retention CAC depends on ads efficiency and belief and monetization capabilities in the game
Slide 17: How our business works
How our business works Research & development Marketing Live Service & Monetization R&D Methodology Successful R&D project Money spent z Search of ideas Visual Style Game-mechanics Benchmarks z Game development Metrics Updates Marketing tests feedback Costs Revenue Time CPI Retention ROAS R&D princi
Slide 18: How our business works
How our business works Research & development Marketing Live Service & Monetization How idea cycle for Maximising marketing channels to Marketing impact on live service ad creatives works? efficiently attract new players business model Performance marketing Indicative sinusoid dynamic of live game b
Slide 19: How our business works
How our business works Research & development Marketing Live Service & Monetization Live Service Strategy Indicative plan to maximize bookings during a month New Hero Launch Guild Competition New Skins Launch 1-2 weeks cadence Event Start Influencer Stream Items on Sale Content Features Meta Economy
Slide 20: Successful case of launching new game – Island Hoppers
Successful case of launching new game – Island Hoppers Successfully scaling and breaking into genre top-10 Island Experiment Farming game for social networks launched in 2014 Top-6 by downloads Top-9 by bookings 5x Installs, mn DAU, ’000 225 Use successful experience to develop new casual game 177 9
Slide 21: Diversification: high DTC share, exposure to key geographies, genres
Diversification: high DTC(1) share, exposure to key geographies, genres, and player base Successfully expanded from 3P platform (Facebook) to 1P DTC Diversification across key regions platform and significantly decreased commission rate PC monthly bookings dynamic – split between Web and Social Geo
Slide 22: Organizational structure
Organizational structure Growth-oriented organization structure Diversified teams by geo Employee costs vs. peer companies(1) GDEV Peer companies(2) Average monthly salary 18% Employees’ $6,2k location by geo 31% 100% 100% 5% $8,2k ~1000 Cyprus employees Armenia Kazakhstan Average monthly bookings p
Slide 23: Financial and operational performance
Financial and operational performance GDEV INVESTOR PRESENTATION 23
Slide 24: Financial highlights
Financial highlights Revenue, $mn Total costs and expenses, excl. D&A, $mn Year-over-year change, % -5% -9% -5% 10% -10% Other Platform commissions Selling and marketing expenses 119 115 121 131 109 107 18% 99 99 105 91 17% 22% 21% 21% 22% 22% 28% 25% 31% 60% 51% 54% 60% 47% 1Q23 2Q23 3Q23 4Q23 1Q24
Slide 25: Operating highlights
Operating highlights Bookings, $mn Monthly paying users, ‘000 Average bookings per paying user, $ Year-over-year change, % Year-over-year change, % Year-over-year change, % -19% -1% -6% 4% 4% 2% 15% 23% 14% 0% -23% -16% -26% -11% 4% 383 392 92 375 381 88 111 87 109 359 84 84 104 106 102 1Q23 2Q23 3Q
Slide 26: Diversification by games/ platforms/ geography
Diversification by games/ platforms/ geography Diversification by games, % Diversification by platforms, % Diversification by geography, % by bookings by bookings by bookings Pixel Gun 3D Hero Wars: Dominion Era PC Mobile Island Hoppers Hero Wars: Alliance 100 100 5% 3% 5% 7% Other 16% 15% 36% 38% 3
Slide 27: Sustainability
Sustainability GDEV INVESTOR PRESENTATION 27
Slide 28: Sustainability at GDEV
Sustainability at GDEV Implemented sustainability strategy Global benchmarks are in use ESG ranking strong performance Three pathways approach SASB Software & IT Services Low ESG Risk Standard is a benchmark for distribution Meet ESG standards and requirements measuring and reporting on Core in IT i
Slide 29: Appendix
Appendix GDEV INVESTOR PRESENTATION 29
Slide 30: Gaming is an integral element for humans
Gaming is an integral element for humans Players say that playing video Player community believes that Players believe that games games reduces stress and anxiety games bring people together improve them Video games… Video games… Video games… Help me feel less stressed Help me feel less isolated Can
Slide 31: Gaming is the largest entertainment segment
Gaming is the largest entertainment segment and embraced by people of various backgrounds Entertainment industry revenue by segment Global split of players by gender and age $184bn 53% 47% ~170bn ~80bn ~$50bn 38% ~$30bn 26% 26% 10% Music Box Office On-demand Linear TV Gaming 10-20 years 21-35 years
Slide 32: Consolidated statement of comprehensive income
Consolidated statement of comprehensive income ‘000 $ GDEV INVESTOR PRESENTATION 32 Source: Company Information
Slide 33: Consolidated statement of financial position
Consolidated statement of financial position ‘000 $ GDEV INVESTOR PRESENTATION 33 Source: Company Information
Slide 34: Consolidated cash flow statement
Consolidated cash flow statement ‘000 $ GDEV INVESTOR PRESENTATION 34 Source: Company Information
Slide 35: Reconciliation of the profit/loss for the period to the Adjusted EBITDA
Reconciliation of the profit/loss for the period to the Adjusted EBITDA Mln $ GDEV INVESTOR PRESENTATION 35 (1) Adjusted finance income/expenses consist of all finance income/expenses other than foreign exchange gains/losses and bank charges, net. Source: Company Information
Slide 36: Hero Wars: Alliance - screenshots
Hero Wars: Alliance - screenshots GDEV INVESTOR PRESENTATION 36 Source: Company Information,
Slide 37: Hero Wars: Dominion Era - screenshots
Hero Wars: Dominion Era - screenshots GDEV INVESTOR PRESENTATION 37 Source: Company Information,
Slide 38: Island Hoppers - screenshots
Island Hoppers - screenshots GDEV INVESTOR PRESENTATION 38 Source: Company Information,
Slide 39: Pixel Gun 3D - screenshots
Pixel Gun 3D - screenshots GDEV INVESTOR PRESENTATION 39 Source: Company Information,