The company indicated that holiday sales were disappointing and biased towards lower margin games. We lower our 2022 Adj EBITDA by 28% to $21.7m. The company expects the challenging economic environment and reduced consumer spending to continue into 2023, resulting in weaker sales. As a result, we lower 2023 sales and Adj EBITDA by 20% and 32% to $127.7m and $22.8m, respectively. Whilst we believe expectations have been reset to prudent levels, we expect shares to remain weak until the company d ....
09 Jan 2023
Devolver Digital (DEVO LN) - Disappointing December
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Devolver Digital (DEVO LN) - Disappointing December
Devolver Digital, Inc. (DEVO:LON) | 21.5 0 0.0% | Mkt Cap: 95.6m
- Published:
09 Jan 2023 -
Author:
Bob Liao, CFA -
Pages:
5
The company indicated that holiday sales were disappointing and biased towards lower margin games. We lower our 2022 Adj EBITDA by 28% to $21.7m. The company expects the challenging economic environment and reduced consumer spending to continue into 2023, resulting in weaker sales. As a result, we lower 2023 sales and Adj EBITDA by 20% and 32% to $127.7m and $22.8m, respectively. Whilst we believe expectations have been reset to prudent levels, we expect shares to remain weak until the company d ....