Slide 1: Investor Presentation 2024 1H Results
INVESTOR PRESENTATION 2024 1H RESULTS
Slide 2: Summary
SUMMARY • Return to EBITDA profit in 1H 2024 in line with previous guidance • Revenues up 18%, Gross Profit up 63%1, EBITDA profit v loss 1H 2023 • Strong back catalogue sales driven by ongoing success of key titles, 1H-weighted platform deals, and System Era contribution • Strong 2H 2024 release sc
Slide 3: 1H 2024 Overview
1H 2024 OVERVIEW REVENUE GROSS PROFIT1 EBITDA2 $51.6m $15.3m $3.0m +18% vs 1H 2023 +63% vs 1H 2023 $(3.5m) in 1H 2023 CASH BALANCE TITLES RELEASED FOCUSED DLC & PORTING STRATEGY $31.9m 3 80 AVERAGE $41.3m cash balance at METACRITIC 31 August 2024 SCORE 76 in 1H 2023 Note: 1) Adjusted Gross Profit af
Slide 4: 2024 Title Releases
2024 TITLE RELEASES Metacritic Score 79 79 73 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 80 81 80 81 78 Release date to be announced 1H 2024 Metacritic Average Score: 80 Note: Scores as of 23 Sep 2024; title scores calculated as simple average of applicable platform scores; half year & year to
Slide 5: Devolver Digital Investor Presentation
Devolver Digital Investor Presentation 5
Slide 6: Profit & Loss
PROFIT & LOSS US$’m FY22 FY23 1H 23 1H 24 • COMMENTARY Net revenue 134.6 92.4 43.9 51.6 Cost of sales (89.4) (65.4) (33.6) (34.6) • Overall revenues up 18% YoY to $51.6m Impairment of capitalised development due to strong back catalogue performance (22.8) (2.5) (0.9) (1.7) cost driven by ongoing suc
Slide 7: Balance Sheet
BALANCE SHEET US$’m FY22 FY23 1H 24 • COMMENTARY Non-Current Assets Intellectual property 25.8 42.0 37.2 Capitalised developments costs 40.1 53.9 60.3 • The Group’s financial position is healthy, Goodwill 19.2 32.0 31.9 with net assets of $154.8m as at 30 June Deferred tax assets and others 10.7 9.6
Slide 8: Cash Flow
CASH FLOW US$’m FY22 FY23 1H 23 1H 24 COMMENTARY Operating activities Cash inflow from operations 31.2 12.3 4.7 4.6 Taxation paid (2.1) (0.8) (0.4) (0.1) • Operating cashflow was US$4.5m in 1H Taxation received 0.0 2.4 - - 2024, slightly up year-on-year. Net cashflow from operating activities 29.2 1
Slide 9: Operating Expenses
OPERATING EXPENSES Forward US$’m FY22 FY23 1H 23 1H 24 Trend • COMMENTARY • 8% YoY increase in adjusted operating Payroll 13.6 17.5 8.1 9.1 Slow rise expenses in 1H 2024, including full six Professional fees 4.6 3.4 1.4 1.6 Steady months of System Era opex (studio Subtotal payroll & acquired in 2H 2
Slide 10: Sales Mix (Back Catalogue v Front Catalogue)
SALES MIX (BACK CATALOGUE v FRONT CATALOGUE) # Titles Released (cumulative) Back Catalogue New Titles (front catalogue) Back Catalogue • Back catalogue mix increased to 89% of total revenues, driven by strong 65 79 89 97 109 121 113 124 performance matched with a quiet 1H 100% release schedule 17% 1
Slide 11: Back Catalogue Sales +22% YoY
BACK CATALOGUE SALES +22% YOY # # Tier 1 Back Catalogue Titles (>$1M net revenue) Back Catalogue Tier 2 Back Catalogue Titles • Total back catalogue sales up 22% Tier 1 Back Catalogue Titles YoY, driven by strong demand for Cult of the Lamb and Inscryption, $80m $80m frequent content updates, strong
Slide 12: An Update on System Era Softworks Acquisition
AN UPDATE ON SYSTEM ERA SOFTWORKS ACQUISITION • COMMENTARY • Solid 1H 2024 EBITDA contribution. • Smooth integration and knowledge- sharing with the rest of the Devolver Group. • Astroneer’s first paid DLC, Glitchwalkers, has built a strong wishlist on Steam ahead of planned launch later in 2024. •
Slide 13: 2024 Ports & DLCs + Additional Paid Content
2024 PORTS & DLCs + ADDITIONAL PAID CONTENT FREE UPDATES/DLCs PAID UPDATES/DLCs PORTS TO NEW PLATFORMS FOR Devolver Digital Investor Presentation 13
Slide 14: Diverse Pipeline for 2025 and Beyond
DIVERSE PIPELINE FOR 2025 AND BEYOND Literal walking Roguelike brawler loaded Gritty combat A slapstick with high-impact, simulator physics-based combat roguelike experience unlike any other And more to be announced… Tactical kung-fu Skate fast to destroy Fast-paced fighting game with a demons and s
Slide 15: 2024 1H Recap
2024 1H RECAP • Profitability in 1H 2024 and strong 2H 2024 release schedule • System Era integration on track with full year contribution in FY 2024 • Maintained high Metacritic scores: record-matching 80 average in 1H 2024 • Disciplined cost management in inflationary environment, with revenue gro
Slide 16: Outlook
OUTLOOK • Healthy pipeline: 30+ titles for 2024-2026 • System Era to make a full year contribution in 2024 • Back catalogue of >120 titles provides opportunities for further monetisation • Healthy Balance Sheet with US$41.3m cash holdings as of 31 August 2024 Devolver Digital Investor Presentation 1
Slide 17: Thank You
i} THANK YOU