Devolver Dig. S Regulatory News (DEVO)

31st January 2022

Devolver Digital, Inc.

("Devolver Digital" or the "Company")

Trading Update

Devolver Digital, an award-winning digital publisher and developer of indie video games, announces an update for the financial year ended 31st December 2021 ("FY2021")1.

Devolver Digital completed its IPO in November 2021 to support investment in its organic growth strategy, talent and pipeline of games.

The Company expects FY2021 revenue to be slightly ahead of market expectations, with year-on-year revenue growth from continuing operations of more than 40% to at least c.$99.5m. It also expects normalised adjusted EBITDA to be slightly ahead of market expectations with growth of more than 55% to at least c.$25.0m2.

The Company launched eight new titles in FY2021, including Death's Door, Inscryption, Loop Hero and Olija, across a variety of platforms and geographies.

Devolver Digital's diversity of revenue is reflected in the Company's normalised back catalogue revenue of c.70% in FY2021 (2020: 61%).

The Company's pipeline for 2022 is healthy and diverse in terms of titles, developers, platforms and geography. This includes existing IP such as Shadow Warrior 3, and several new titles that have not yet been announced. The Company's confidence in the outlook for 2022 has been reinforced by the success of the first release of the year, Serious Sam: Siberian Mayhem, which is profitable from pre-orders alone.

Devolver Digital will provide further details in its 2021 full year results announcement, which is expected to be released in early April 2022.

Harry Miller, Executive Chairman of Devolver Digital, said:

"2021 was an exciting year for Devolver Digital. Twelve years ago, five founders launched a new video game label to keep the fun alive in gaming. Today we have 200 people spread across 22 countries, two publishing brands and five development studios. Our evolution is a testament to more than a decade of multi-title developer relationships, and strong distribution partnerships. 

I was proud to see Devolver Digital recognised as Publisher of the Year3 and so many of the games we work with nominated for awards. In 2022 we will continue working hand-in-glove with developers we know and trust, to launch interesting and unusual games."

Douglas Morin, Chief Executive Officer of Devolver Digital, said:

"Devolver Digital has a unique culture. This is why we are able to bring wonderful games to the forefront. This also explains the diversification of our revenues - by title, developer, platform and geography. We have a strong back catalogue and pipeline of titles and look forward to sharing more exciting news in 2022."

-ENDS-

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 90 titles, with more than 30 titles in the pipeline scheduled for release over the next two years and beyond. Devolver has in-house studios developing first-party IP titles and a complementary publishing brand. Devolver is registered in Wilmington, Delaware, USA.

Enquiries

Notes

1. Financial numbers contained within this Trading Update are based on preliminary unaudited 2021 results.

2. Revenues from continuing operations excludes the out-performance from the Fall Guys franchise. The publishing rights for Fall Guys were disposed of in April 2021. Normalized adjusted EBITDA excludes the out-performance from Fall Guys, and any one-time costs related to Fall Guys and the November 2021 IPO.

3. Devolver Digital was named Best Publisher of the Year in the Shacknews Awards 2021.