Devolver Digital has released a trading update for the financial year ended December 31, 2023. The publisher also announced a number of board changes.
Wizard With a Gun
Devolver recovers financially after a weak H1
- According to its trading update, Devolver expects its full-year revenue to be in line with previous expectations at “not less than $90 million.” Its adjusted EBITDA should also reach breakeven excluding non-cash title impairments of up to $2.5 million.
- In the second half of 2023, Devolver’s financial performance improved significantly compared to H1, when the company recorded a loss of $3.5 million on normalized adjusted EBITDA.
- However, a number of new releases in H2 proved to be successful, with Wizard With a Gun and The Talos Principle 2 having “good momentum.” Devolver Digital’s back catalog also continued to perform well, with titles like Cult of the Lamb, and Inscryption.
Devolver Digital appoints new CEO
Devolver announced that Douglas Morin has today stepped down as CEO. He has led the company since 2021, playing a key role in its IPO and the recent acquisition of System Era Softworks.
Morin will be succeeded by executive chairman Harry Miller, one of the publisher’s founders and its largest shareholder with a 22.17% stake. This marks Miller’s return to the role of CEO, which he left in 2021.
“I am excited by the opportunity to step back into the CEO role,” he said in a statement. “It’s an incredible pleasure and honour to continue to work with Devolver’s fantastic and talented team, building out a strong pipeline of fun and creativity, and of course delivering on our long-term growth strategy.”
In addition, the company made two other board changes by appointing senior independent director Kate Marsh as non-executive chair, with COO Graeme Struthers joining the board of directors.
Miller also noted that Devolver Digital has many major releases in its 2024 pipeline, including Pepper Grinder, The Plucky Squire, and Anger Foot. The company also plans to balance the schedule more evenly this year.
Last year, Devolver also declined some subscription deal proposals as part of its new strategy to “unlock long-term value” for its games. According to Miller, this should open more revenue opportunities for the company.