GDEV Inc.

Good day, everyone, and warm greetings from Cyprus. We are delighted to have you join us today as we present GDEV's third quarter 2024 earnings results. On today's call, our presenters will be Andrey Padeev, Founder and CEO, Alexander Karavaev, Chief Financial Officer, and me, Roman Safiulin, Chief Corporate Development Officer. Before we get started, I would like to remind you that today's discussion may contain forward-looking statements, which may not develop as we currently expect. We have posted a supplementary presentation at gdev.inc which contains information and precautionary warnings on forward-looking statements as well as our non-IFRS financial matters. For a more complete discussion of the risks and assertities, please see our filings with the SEC. Now let me hand it over to Andrey.

Yes, I'm Andrey. Thank you, Roman. I greet everyone and especially our dear and respected analysts. Thank you for your work. Looking back on the third quarter, we see revenue growth compared to the prior quarter and exceeding analysts' expectation for both revenue and adjusted EBITDA. As you all know, we take a long-term perspective on our key products, focusing on unlocking their potential and fostering sustainable growth over quick wins. The gaming landscape continues to evolve rapidly. shaped by dynamic player preferences, shifting gameplay trends, and intensifying competition across the entertainment industry. And rather than concentrating on short-term enhancements with limited impact, our studios are moving toward implementing thoughtful long-term product changes aimed at fostering sustained growth and deeper player engagement. These updates span various aspects of our games, including car gameplay mechanics, meta progression, live operations, monetization models, marketing strategies, and art direction. By aligning gameplay more closely with audience preferences and enhancing emotional engagement, we aim to steadily improve key metrics such as player retention, lifetime value, and cohort monetization. While also increasing the efficiency of our marketing efforts. To help our studios achieve these ambitious goals, I'm excited to share that we've bolstered our leadership team with the appointment of Olga Laskutova as our new Chief Operating Officer. With her extensive managerial expertise in various consumer industries and valuable contributions as DDEV's board member, Olga is uniquely positioned to guide our studios toward achieving their strategic goals and fostering sustainable growth. Olga's appointment will help us in our drive to achieve success in our product strategy to become a top tier title in their genre. In summary, we truly believe that our strategy and ongoing efforts will unlock the full potential of our key titles driving long-term success and creating value for all stakeholders. Thank you. Alexander.

Thank you, Andrey. Hello, everyone. Now let me say a few words about our financial performance in the third quarter of 2024. Despite now being in a transformation phase, our results remain within our expectations and even surpassed analyst's consensus, as Andrey just mentioned. In Q3 2024, revenue amounted to $111 million, reflecting a 5% growth quarter-over-quarter, but a 9% decline year-over-year. This was, nevertheless, in line with our expectations, and was primarily due to the decline in bookings. Bookings declined by 8% year-over-year to $93 million, because our teams focused on long-term product improvement, as just said by Andrey. As a part of this initiative, we reduce the number of in-game events and monetization in general, as we want to ensure in the first place that the product changes positively impact player experience and retention. This initiative applies not only to our core title of Hero Wars, but also to Pixel Gun and Island Hoppers. Specifically in Pixel Gun and Island Hoppers, we are undertaking several experiments and searching for pivot opportunities that would enable us to grow these or similar titles in the future. In the meantime, we don't want to spend too much for scaling and live ops because we prefer to adhere to our disciplined approach regarding the investments. We are also still continuing to feel the underinvestment in marketing back in 2022, which was 33% lower as compared to 2023, which we consider to be a normalized year. This underinvestment affected the dynamic of our bookings over the past few quarters, including Q3 2024. Now, moving on to our expenses. we generally continue to execute on our disciplined approach around costs and expenses. Platform commissions decreased by 13% year-over-year, or $4 million, driven by low revenues from in-game purchases and a higher share of revenues from the PC platform, which is associated with lower commissions. Game operation costs remained stable at $13 million, while general and administrative expenses were tightly controlled and declined slightly to $7 million compared to $8 million in Q3 2023. I would also like to highlight that our marketing investments increased by $9 million year-over-year, reaching $52 million. It is in line with our strategic plan. This reflects our efforts to scale marketing activities across multiple channels and experiments around new channels and new instruments in order to find future growth opportunities. As a result of all these factors, the net profit in Q3 2024 amounted to $15 million compared to $24 million in the same period last year. This decrease was primarily due to lower revenue and higher marketing spend. Adjusted EBITDA for the quarter was $16 million, down $13 million year-over-year. However, cash flows generated from operating activities increased to $12 million compared to $8 million in Q3 2023. It demonstrates our effective cash management during this period of transformation. Geographically, over the past few quarters, we focused on Europe. As a result, the bookings in Europe grew year over year, increasing the region's share of total bookings from 26% to 30%. Specifically, Germany, France, the United Kingdom, and Poland delivered a solid performance on the back of our various marketing initiatives. Just to summarize, This quarter underscores our commitment to sustainable growth. We continue to explore different growth initiatives, both across product and marketing, and at the same time achieving our financial goals. And we remain confident in our strategic focus on product evolution and marketing investments. Thank you, and now I'll hand it over to Roman for the update on capital markets. Roman?