- GDEV (GDEV, Financial) reports a shift from loss to profit in Q1 2025 with a $14 million profit compared to a $5 million loss in Q1 2024.
- Revenue declined by 9% year-over-year to $97 million, with adjusted EBITDA improving to $16 million from a negative $0.9 million.
- Marketing expenses were reduced by 33%, resulting in a leaner, more efficient approach to user acquisition.
GDEV Inc. (GDEV) has released its financial results for the first quarter of 2025, demonstrating a mix of challenges and improvements. The company reported a profitable quarter with a significant shift from a $5 million loss in Q1 2024 to a $14 million profit in Q1 2025. Despite a 9% year-over-year decline in revenue to $97 million, the company's strategic pivot towards higher-margin users has begun to pay off.
Key to GDEV's turnaround was a 33% reduction in marketing expenses, down to $42 million, as the company adjusted its user acquisition strategy to focus on more profitable segments. This shift led to an increase in average bookings per paying user by 2%, reaching $90. However, these strategic changes have affected user volume, with Monthly Paying Users (MPU) dropping 26% to 284,000, and bookings decreasing 25% to $81 million.
Adjusted EBITDA showed a remarkable recovery, climbing from a $0.9 million loss to $16 million, reflecting improved operational efficiency. Despite paying a special dividend of $3.31 per share, GDEV's liquidity remains robust at $102 million, providing a buffer for future strategic investments.
The company's platform strategy also evolved, with PC platforms now accounting for 41% of bookings, up from 39% a year ago, helping to mitigate commission costs associated with mobile platforms. GDEV's geographic revenue distribution has become slightly more balanced, with a decline in share from Asia and an increase from Europe.
