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Nexters (GDEV)
NASDAQ:GDEV
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Nexters
(NASDAQ:GDEV)
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Rating:61Neutral
Price Target:
$23.00
▲(11.43% Upside)
The overall score reflects strong valuation metrics with an attractive P/E ratio and high dividend yield, offset by financial performance concerns due to declining revenues and negative equity. Technical indicators suggest bearish momentum, but potential for a rebound exists.
Nexters (GDEV) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$404.48M
Dividend Yield16.04%
Average Volume (3M)18.48K
Price to Earnings (P/E)10.4
Beta (1Y)1.02
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees589
SectorCommunication Services
Sector Strength97
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)N/A
Shares Outstanding18,130,090
10 Day Avg. Volume16,804
30 Day Avg. Volume18,485
Financial Highlights & Ratios
PEG Ratio-0.34
Price to Book (P/B)-3.47
Price to Sales (P/S)0.84
P/FCF Ratio12.53
Enterprise Value/Market Cap0.51
Enterprise Value/Revenue0.48
Enterprise Value/Gross Profit0.73
Enterprise Value/Ebitda3.23
Forecast
1Y Price Target
$70.00Price Target Upside239.15% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Nexters Business Overview & Revenue Model
Company DescriptionGDEV Inc. operates as a gaming and entertainment company in the United States, Europe, Asia, and internationally. It develops desktop, mobile, web, and social games. The company was formerly known as Nexters Inc. and changed its name to GDEV Inc. in June 2023. GDEV Inc. was founded in 2010 and is headquartered in Limassol, Cyprus.
How the Company Makes MoneyNexters generates revenue primarily through the sale of in-game purchases and premium content within its games, leveraging a freemium model that allows players to download games for free while offering optional purchases to enhance their gaming experience. Additionally, the company earns revenue from advertising within its games, including banner ads and video ads, which are integrated into the gameplay. Key partnerships with advertising networks and other gaming platforms help boost its visibility and user acquisition. Nexters also explores collaborations with other developers and publishers to co-develop games or share resources, which can further enhance its revenue potential.
Nexters Earnings Call Summary
Earnings Call Date:Nov 14, 2024
(Q3-2024)
| % Change Since: |
Next Earnings Date:Apr 01, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook. While there were significant achievements in terms of revenue growth, cash flow, leadership, and successful product launches, these were offset by year-over-year declines in revenue, bookings, net profit, and adjusted EBITDA. The company is focusing on long-term product improvements and geographical expansion, but current financial indicators show areas of concern.Q3-2024 Updates
Positive Updates
Revenue Growth Exceeds Expectations
Revenue for Q3 2024 amounted to $111 million, reflecting a 5% growth quarter-over-quarter, and surpassed analysts' consensus on revenue and adjusted EBITDA.
Cash Flow Increase
Cash flows generated from operating activities increased to $12 million compared to $8 million in Q3 2023, demonstrating effective cash management.
Geographical Expansion Success
Bookings in Europe grew year-over-year, increasing the region’s share of total bookings from 26% to 30%. Notably strong performances were seen in Germany, France, the UK, and Poland.
Leadership Enhancement
Appointment of Olga Loskutova as Chief Operating Officer to guide studios towards achieving strategic goals and fostering sustainable growth.
Successful Launch on Steam
The launch of Pixel Gun on Steam was a huge success, stabilizing with an average of 2,500 to 3,000 concurrent users, and the number is growing month over month.
Negative Updates
Year-over-Year Revenue Decline
Revenue for Q3 2024 declined by 9% year-over-year, primarily due to the decline in bookings.
Bookings Decline
Bookings declined by 8% year-over-year to $93 million, affected by reduced in-game events and monetization.
Net Profit Decrease
Net profit in Q3 2024 amounted to $15 million, a decline from $24 million in the same period last year, primarily due to lower revenue and higher marketing spend.
Adjusted EBITDA Decrease
Adjusted EBITDA for the quarter was $16 million, down $13 million year-over-year.
Company Guidance
During the GDEV Third Quarter 2024 Earnings Conference Call, the company reported a 5% quarter-over-quarter revenue growth, reaching $111 million, despite a 9% decline year-over-year. Bookings declined by 8% year-over-year to $93 million, attributed to strategic product improvements aimed at enhancing player experience and retention. Platform commissions decreased by 13% year-over-year, while marketing investments rose by $9 million to $52 million, aligning with efforts to increase marketing efficiency. The net profit for Q3 2024 was $15 million, down from $24 million the previous year, primarily due to increased marketing spend. Adjusted EBITDA stood at $16 million, reflecting a $13 million decrease year-over-year, although operating cash flows improved to $12 million from $8 million in Q3 2023. The company highlighted strategic geographic expansion, particularly in Europe, where bookings increased the region's share from 26% to 30%. Additionally, GDEV executed a one-for-ten reverse stock split and an at-the-market offering to enhance stock liquidity and market appeal. Overall, GDEV remains focused on sustainable growth through product evolution and marketing investments.Nexters Financial Statement Overview
Summary
Nexters shows strong cash flow management with positive trends, but faces challenges with declining revenues and negative equity, indicating potential financial instability. The company must address profitability and balance sheet issues to enhance financial stability.Income Statement
Nexters has experienced fluctuating revenue with a recent decline from $464.5M in 2023 to $420.9M in 2024. The gross profit margin remains strong at approximately 66.3% for 2024. However, the net profit margin decreased from 9.9% in 2023 to 6.1% in 2024. Notably, EBIT and EBITDA margins were impacted by declining revenues, reflecting operational challenges.65
Positive
Balance Sheet
The balance sheet reveals significant weaknesses, particularly with negative stockholders' equity of -$101.5M in 2024, indicating potential financial instability. The debt-to-equity ratio is not applicable due to negative equity. While the company has managed to maintain low levels of debt, high liabilities pose a risk to financial health.45
Neutral
Cash Flow
Nexters shows positive cash flow trends with free cash flow growth from $17.2M in 2023 to $28.1M in 2024. The operating cash flow to net income ratio improved, indicating efficient cash generation relative to net income. However, the company faces challenges with volatile investing and financing cash flows.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 425.09M | 420.93M | 464.55M | 479.69M | 434.09M | 260.89M |
| Gross Profit | 281.19M | 278.92M | 303.86M | 302.71M | 297.92M | 168.34M |
| EBITDA | 63.65M | 36.65M | 56.68M | 19.14M | -113.69M | 672.00K |
| Net Income | 42.89M | 25.53M | 46.12M | 7.30M | -117.44M | -751.00K |
Balance Sheet | ||||||
| Total Assets | 210.18M | 272.20M | 320.55M | 322.04M | 312.98M | 211.55M |
| Cash, Cash Equivalents and Short-Term Investments | 65.97M | 134.81M | 156.03M | 137.14M | 142.80M | 84.56M |
| Total Debt | 2.28M | 1.30M | 2.44M | 1.19M | 1.93M | 1.16M |
| Total Liabilities | 339.61M | 373.73M | 420.37M | 470.82M | 474.03M | 313.46M |
| Stockholders Equity | -129.43M | -101.53M | -99.81M | -148.78M | -161.09M | -101.91M |
Cash Flow | ||||||
| Free Cash Flow | 12.67M | 28.09M | 17.20M | 115.02M | 104.08M | 120.48M |
| Operating Cash Flow | 13.06M | 28.52M | 17.95M | 116.08M | 105.52M | 120.62M |
| Investing Cash Flow | 33.85M | 55.90M | -32.46M | -171.78M | -2.72M | 361.00K |
| Financing Cash Flow | -57.60M | -44.94M | -1.95M | -1.90M | -42.98M | -56.05M |
Nexters Technical Analysis
Negative
20.64
Price Trends
24.26
Negative
19.55
Positive
17.05
Positive
Market Momentum
-0.88
Positive
42.54
Neutral
45.94
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GDEV, the sentiment is Negative. The current price of 20.64 is below the 20-day moving average (MA) of 22.10, below the 50-day MA of 24.26, and above the 200-day MA of 17.05, indicating a neutral trend. The MACD of -0.88 indicates Positive momentum. The RSI at 42.54 is Neutral, neither overbought nor oversold. The STOCH value of 45.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GDEV.
Nexters Risk Analysis
Nexters disclosed 69 risk factors in its most recent earnings report. Nexters reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
1.
Use of generative artificial intelligence tools in our business may result in significant reputational harm and liability. Q4, 2023
Nexters Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $446.48M | 3.91 | 12.55% | ― | 1.21% | 0.72% | |
61 Neutral | $404.48M | 10.40 | ― | 16.04% | ― | ― | |
61 Neutral | $1.42B | 16.31 | ― | 9.57% | 7.49% | -60.32% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
56 Neutral | $122.16M | ― | -4.94% | ― | 53.06% | -196.63% | |
44 Neutral | $77.07M | ― | -14.82% | ― | -17.17% | -51.88% |
* Communication Services Sector Average
GDEV
Nexters
20.64
0.72
3.61%
NCTY
The9
7.01
-4.09
-36.85%
GMGI
Golden Matrix Group
0.86
-1.36
-61.26%
DDI
Doubledown Interactive Co
9.01
-4.89
-35.18%
MYPS
PLAYSTUDIOS
0.61
-1.20
-66.30%
PLTK
Playtika Holding
3.77
-4.12
-52.22%
Nexters Corporate Events
GDEV Inc. Reports Strong Q2 2025 Financial Results and AGM Approvals
Sep 2, 2025
On September 2, 2025, GDEV Inc. announced its financial results for the second quarter and first half of 2025, showing a 13% year-over-year increase in revenue for Q2, reaching $120 million, and a net profit of $17 million. Despite a decline in bookings and advertising revenue, the company achieved a higher adjusted EBITDA due to refined revenue recognition processes. Additionally, GDEV held its annual general meeting on August 29, 2025, where all proposed agenda items, including the re-election of directors and the appointment of auditors, were approved by shareholders.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.