GRAVITY Reports Significant 72% YOY Increase in Revenue for Q3 FY2023
November 20, 2023
☀️Earnings Overview
GRAVITY ($NASDAQ:GRVY) unveiled its third quarter FY2023 revenue of KRW 176.1 billion on November 13 2023, representing a 72.0% increase year over year, and net income of KRW 29.0 billion, a surge of 80.1% compared to the same period in the prior year.
Analysis
GoodWhale conducted an analysis of GRAVITY‘s wellbeing and found it to be classified as ‘gorilla’ according to its Star Chart. This type of company is characterized by stable and high revenue or earning growth due to its strong competitive advantage. In this regard, investors who are looking for consistent revenue growth and a high return on investment might be particularly interested in such a company. The analysis also revealed that GRAVITY has an impressive health score of 10/10, indicating that the company is capable of riding out any crisis without the risk of bankruptcy. This is due to its strong cash flows and debt management. Additionally, when it comes to other aspects of the company’s wellbeing, GRAVITY exhibits strength in asset, growth, and profitability, but is somewhat lacking in terms of dividend returns. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Gravity. More…
| Total Revenues | Net Income | Net Margin |
| 756.1k | 143.63k | 19.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Gravity. More…
| Operations | Investing | Financing |
| 98.28k | -22.34k | -3.92k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Gravity. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 567.33k | 123.78k | 63.73k |
Key Ratios Snapshot
Some of the financial key ratios for Gravity are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 27.5% | 40.1% | 24.3% |
| FCF Margin | ROE | ROA |
| 12.6% | 26.9% | 20.3% |
Peers
The company faces stiff competition from Star Vault AB, NetDragon Websoft Inc, and Chinese Gamer International Corp. All three companies are well-positioned to challenge GRAVITY Co Ltd in the online gaming market.
– Star Vault AB ($OTCPK:SRVTF)
Swedish company Star Vault AB is a video game developer and publisher specializing in massively multiplayer online games. The company was founded in 2006 by Johan Andersson and Martin Håkansson, and its first game, Star Vault Online, was released in 2008. Star Vault AB has a market cap of 8.14M as of 2022, a Return on Equity of 17.0%. The company’s games are available on PC, Mac, iOS, and Android platforms.
– NetDragon Websoft Inc ($SEHK:00777)
NetDragon Websoft Inc is a Chinese Internet company with a market cap of 7.68B as of 2022. The company’s Return on Equity is 12.3%. NetDragon Websoft Inc is an Internet company that develops and operates online games, Internet platforms, and mobile applications in China. The company was founded in 1999 and is headquartered in Fuzhou, China.
– Chinese Gamer International Corp ($TPEX:3083)
The company’s market cap is 3.56B as of 2022 and its ROE is -1.37%. The company is a leading online games developer and operator in China. It is also one of the largest mobile games developers in the world. The company’s games are played by millions of people worldwide.
Summary
GRAVITY reported impressive financial results for its third quarter of FY2023, with total revenue of 176.1 billion KRW and a net income of 29.0 billion KRW. This represents an increase of 72.0% and 80.1% year over year, respectively. This impressive performance was immediately reflected in GRAVITY’s stock price, which moved up the same day.
Investors may be attracted to GRAVITY’s strong results and consider it as a potential investment opportunity. GRAVITY’s future success will be determined by the company’s ability to maintain and build upon its current momentum.
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