DEVO Devolver Digital Inc.

4 February 2025

Devolver Digital, Inc. 

("Devolver", the "Group" or the "Company")

Trading Update

Double-digit revenue growth in FY24

Return to positive Adjusted EBITDA, in line with market expectations

Devolver Digital, Inc. (AIM: DEVO), an award-winning digital publisher and developer of indie video games, announces a trading update for the financial year ended 31^st December 2024.  All financial figures relate to that period unless otherwise stated.

Performance improved steadily as Devolver returned to positive Adjusted EBITDA¹. Adjusted EBITDA is expected to be in line with market expectations², including non-cash title impairments, of which US$1.7m was reflected  in the Group's 1H 2024 results. Revenues saw double-digit year-on-year growth, meeting management guidance of more than US$100m for the year.

New games released in 2024 achieved a new record high full-year average Metacritic score of 79. Award winning games such as The Plucky Squire and Neva garnered high quality scores and user reviews which bolstered front catalogue revenues. This was supported by continued strength in back catalogue revenue (over 19% year-on-year growth) including titles such as Cult of The Lamb and Inscryption which continue to enjoy strong demand. Cult of the Lamb's paid down-loadable content (PDLC) performed strongly as part of the strategy of ongoing investment into successful franchises. System Era also made a strong contribution, with Astroneer reaching a new milestone with the successful release of Glitchwalkers PDLC generating new revenues and boosting base game sales.

Devolver has continued its disciplined approach to cost control, with operating expenses being maintained at similar levels to FY23. The Board remain committed to delivering efficiencies across the Group, with a continued focus on cost management going into 2025. Devolver has a robust balance sheet with c.US$42 million net cash as at 31 December 2024.

Harry Miller, Chief Executive Officer at Devolver, said: "We returned to positive Adjusted EBITDA in 2024 largely driven by strong back catalogue revenues supplemented by exciting new releases such as The Plucky Squire, Neva and Anger Foot, and a full year contribution from new acquisition System Era and their iconic title Astroneer. Our strong recovery owes to the creative enterprise we are, attributable in part to our innovative game designs and lasting relationships with talented developers. Combining this momentum from 2024 with the Group's strong release pipeline, we expect to see further profit improvement in 2025."

The Group will announce its results for the year ended 31 December 2024 in 1H April 2025.

-ENDS-

Notes:

1.    Adjusted EBITDA ("EBITDA") makes the following adjustments: it excludes: 1) stock compensation (share-based payment) expenses and revaluation of contingent consideration; 2) one-time expenses and other non-recurring items; 3) amortisation of IP (but does not exclude amortisation of capitalised software development costs), and; 4) impairments of goodwill and acquired IP.  Title performance impairments are included in Adjusted EBITDA.

2.    Analyst consensus for FY24: Revenue US$106.5m; Adjusted EBITDA US$5.2m

About Devolver Digital

Devolver is an award-winning video games publisher in the indie games space with a balanced portfolio of third-party and own-IP. Devolver has an emphasis on premium games and has published more than 120 titles, with more than 30 titles in the pipeline scheduled for release over the next few years. Devolver has in-house studios developing first-party IP titles and a complementary publishing brand. Devolver is registered in Wilmington, Delaware, USA. 

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