UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of May 2024
Commission File Number 000-51138

GRAVITY Co., Ltd.
———————————————————————————————————————
(Translation of registrant’s name into English)

15F, 396 World Cup buk-ro, Mapo-gu, Seoul 03925, Korea
———————————————————————————————————————
(Address of principal executive office)


Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F. Form 20-F þ Form 40-F o

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): o

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): o



GRAVITY REPORTS FIRST QUARTER OF 2024 RESULTS AND BUSINESS UPDATES

Seoul, South Korea – May 9, 2024 – GRAVITY Co., Ltd. (NasdaqGM: GRVY) (“Gravity” or “Company”), a developer and publisher of online and mobile games based in South Korea, today announced its unaudited financial results for the first quarter ended March 31, 2024, prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board and business updates.
FIRST QUARTER 2024 HIGHLIGHTS

•Total revenues were KRW 119,779 million (US$ 88,917 thousand), representing a 17.7% decrease from the fourth quarter ended December 31, 2023 (“QoQ”) and a 27.4% decrease from the first quarter ended March 31, 2023 (“YoY”).

•Operating profit was KRW 26,869 million (US$ 19,946 thousand), representing an 1.7% increase QoQ and a 38% decrease YoY.

•Profit before income tax expenses was KRW 32,498 million (US$ 24,125 thousand), representing a 24.2% increase QoQ and a 29.7% decrease YoY.

•Net profit attributable to parent company was KRW 26,866 million (US$ 19,944 thousand), representing a 24.5% increase QoQ and a 26.3% decrease YoY.


REVIEW OF FIRST QUARTER 2024 FINANCIAL RESULTS

Revenues

Online game revenues for the first quarter of 2024 were KRW 18,065 million (US$ 13,410 thousand), representing a 24.7% decrease QoQ from KRW 23,980 million and a 20.4% decrease YoY from KRW 22,696 million. The decrease QoQ was mainly attributable to decreased revenues from Ragnarok Online in Thailand and Taiwan. Such decrease was partially offset by increased revenue from Ragnarok Online in Japan. The decrease YoY was largely due to decreased revenues from Ragnarok Online in Thailand and Taiwan.

Mobile game revenues were KRW 98,548 million (US$ 73,157 thousand) for the first quarter of 2024, representing a 15.4% decrease QoQ from KRW 116,456 million and a 29.1% decrease YoY from KRW 138,994 million. The decrease QoQ resulted primarily decreased revenues from Ragnarok Origin in Southeast Asia. Such decrease was partially offset by increased revenues from Ragnarok Origin in North, Central and South America which was launched on February 28, 2024, and Ragnarok Idle Adventure in Thailand which was launched on January 18, 2024. The decrease YoY was due to decreased revenues from Ragnarok Origin in Taiwan, Hong Kong and Macau and Ragnarok X: Next Generation in Korea. This decrease was partially offset by increased revenues from Ragnarok Origin in Southeast Asia and North, Central and South America.

Other revenues were KRW 3,166 million (US$ 2,350 thousand) for the first quarter of 2024, representing a 37.8% decrease QoQ from KRW 5,094 million and a 2.8% decrease YoY from KRW 3,257 million.

Cost of Revenue

Cost of revenue was KRW 73,628 million (US$ 54,657 thousand) for the first quarter of 2024, representing a 21.1% decrease QoQ from KRW 93,330 million and a 30.2% decrease YoY from KRW 105,485 million. The decrease QoQ was mainly due to decreased commission paid for mobile game services related to Ragnarok Origin in Southeast Asia. The decrease YoY was primarily due to decreased commission paid for mobile game services related to Ragnarok Origin in Taiwan, Hong Kong and Macau, and Ragnarok X: Next Generation in Korea.




Operating Expenses

Operating expenses were KRW 19,282 million (US$ 14,314 thousand) for the first quarter of 2024, representing a 25.2% decrease QoQ from KRW 25,769 million and a 19.4% increase YoY from KRW 16,144 million. The decrease QoQ was mainly due to decreased commission paid for payment gateway fees for Ragnarok Online in Thailand and Taiwan, impairment loss on intangible assets, and advertising expenses for Ragnarok Begins in Korea and G-STAR 2023. The increase YoY was mainly due to increased advertising expenses for Ragnarok Idle Adventure in Thailand.

Profit Before Income Tax Expenses

Profit before income tax expenses was KRW 32,498 million (US$ 24,125 thousand) for the first quarter of 2024 compared with profit before income tax expense of KRW 26,168 million for the fourth quarter of 2023 and profit before income tax expenses of KRW 46,226 million for the first quarter of 2023.

Net Profit

As a result of the foregoing factors, Gravity recorded a net profit attributable to parent company of KRW 26,866 million (US$ 19,944 thousand) for the first quarter of 2024 compared with net profit attributable to parent company of KRW 21,576 million for the fourth quarter of 2023 and a net profit attributable to parent company of KRW 36,466 million for the first quarter of 2023.

Liquidity

The balance of cash and cash equivalents and short-term financial instruments was KRW 484,526 million (US$ 359,686 thousand) as of March 31, 2024.

Note: For convenience purposes only, the KRW amounts have been expressed in U.S. dollars at the exchange rate of KRW 1,347.08 to US$ 1.00, the noon buying rate in effect on March 29, 2024 as quoted by the Federal Reserve Bank of New York.



GRAVITY BUSINESS UPDATES

Ragnarok Online IP-based Games

•Ragnarok Online, an MMORPG PC game

Ragnarok Online aims to be officially launched in China in the first half of 2024 as it received an International Standard Book Number ("ISBN") code from the Chinese government in February 2024, followed by Ragnarok Origin and Ragnarok X: Next Generation in August 2023 and December 2023, respectively.

•Ragnarok Origin, an MMORPG mobile and PC game

Ragnarok Origin was launched in China on March 26, 2024 and North, Central, and South America in February 28, 2024.

•Ragnarok X: Next Generation, an MMORPG mobile game

Ragnarok X: Next Generation aims to be launched in China in the second half of 2024, with preparations underway for its launch in Japan.

•Ragnarok: Rebirth, an MMORPG mobile game

Ragnarok: Rebirth aims to be launched in Southeast Asia in June 2024.

•Ragnarok: Novice Hearts (tentative title), an MMORPG mobile game

Ragnarok: Novice Hearts (tentative title) aims to be launched in Taiwan, Hong Kong and Macau in June 2024.

•Other Ragnarok Online IP-based games

Ragnarok Monster's Marble, a 3D Casual Board Game, is scheduled to be launched in 2024.

Ragnarok in Wonderland, a Casual Healing Tycoon mobile game, is scheduled to be launched in Korea in the second half of 2024.

Ragnarok Landverse, an MMORPG Blockchain PC game based on P2E systems, is aiming to be launched in Thailand in June 2024.

Ragnarok Monster World, a Real-Time Strategy Blockchain PC (Window Client) and mobile game, is scheduled to be launched in Thailand in the second half of 2024.

Other IP-based games

•Generation Zombie, a Turn-based Survival Horror Card mobile game

Generation Zombie was launched in Global on March 13, 2024. The game is published by Gravity Interactive, Inc., Gravity's wholly-owned subsidiary in the US.

•TOKYO PSYCHODEMIC, a 2D Cinematic Profiling Adventure PC and console game

TOKYO PSYCHODEMIC will launch in Japan on May 30, 2024. The game is developed by Gravity Game Arise Co., Ltd. ("GGA"), Gravity's wholly-owned subsidiary in Japan, and will be published in Japan by GGA. And Gravity will publish the game in the rest of the global regions excluding Japan in the second half of 2024.






Expansion of Ragnarok IP-business

Ragnarok Golf Monsters is an indoor-screen golf brand based on the Ragnarok monster characters. Gravity Communications Co., Ltd. is aiming to launch the first facility of Ragnarok Golf Monsters in Taipei, Taiwan in 2024.


Investor Presentation

Gravity issued an investor presentation. The presentation contains the Company’s recent business updates, results of the first quarter in 2024 and Gravity’s business plan. The presentation can be found on the Company’s website under the IR Archives section at https://www.gravity.co.kr/en/ir/updates. Korean and Japanese versions of the presentation are also provided on the website.


About GRAVITY Co., Ltd. ---------------------------------------------------
Gravity is a developer and publisher of online and mobile games. Gravity's principal product, Ragnarok Online, is a popular online game in many markets, including Japan and Taiwan, and is currently commercially offered in 91 markets. For more information about Gravity, please visit http://www.gravity.co.kr.
Forward-Looking Statements:

Certain statements in this press release may include, in addition to historical information, “forward-looking statements” within the meaning of the “safe-harbor” provisions of the U.S. Private Securities Litigation Reform Act 1995. Forward-looking statements can generally be identified by the use of forward-looking terminology, such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe”, “project,” or “continue” or the negative thereof or other similar words, although not all forward-looking statements contain these words. Investors should consider the information contained in our submissions and filings with the United States Securities and Exchange Commission (the “SEC”), including our annual report for the fiscal year ended December 31, 2023 on Form 20-F, together with such other documents that we may submit to or file with the SEC from time to time, on Form 6-K. The forward-looking statements speak only as of this press release and we assume no duty to update them to reflect new, changing or unanticipated events or circumstances.

Contact:
Mr. Heung Gon Kim
Chief Financial Officer
Gravity Co., Ltd.
Email: kheung@gravity.co.kr

Ms. Jin Lee
Ms. Shin Choi
IR Unit
Gravity Co., Ltd.
Email: ir@gravity.co.kr
Telephone: +82-2-2132-7800

# # #





GRAVITY Co., Ltd.
Consolidated Statements of Financial Position

(In millions of KRW and thousands of US$)

As of
31-Dec-2331-Mar-24
KRWUS$KRWUS$
(audited)(unaudited)(unaudited)(unaudited)
Assets
Current assets:
Cash and cash equivalents184,082 136,653 164,271 121,946 
Short-term financial instruments277,215 205,790 320,255 237,740 
Accounts receivable, net71,213 52,865 64,138 47,613 
Other receivables, net3,637 2,700 3,960 2,940 
Prepaid expenses2,994 2,223 3,085 2,290 
Other current financial assets4,439 3,295 5,440 4,038 
Other current assets3,319 2,464 4,569 3,392 
Total current assets546,899 405,990 565,718 419,959 
Property and equipment, net10,151 7,536 8,865 6,581 
Intangible assets, net6,370 4,729 6,164 4,576 
Deferred tax assets5,952 4,418 5,759 4,275 
Other non-current financial assets1,824 1,354 1,736 1,289 
Other non-current assets6,985 5,185 7,999 5,938 
Total assets578,181 429,212 596,241 442,618 
Liabilities and Equity
Current liabilities:
Accounts payable61,778 45,861 53,904 40,015 
Deferred revenue18,093 13,431 16,665 12,371 
Withholdings3,072 2,280 2,849 2,115 
Accrued expense2,313 1,717 1,811 1,344 
Income tax payable16,927 12,566 16,897 12,543 
Other current liabilities4,251 3,156 3,783 2,810 
Total current liabilities106,434 79,011 95,909 71,198 
Long-term account payables677 503 678 503 
Long-term deferred revenue1,785 1,325 1,764 1,309 
Other non-current liabilities3,175 2,358 2,659 1,974 
Deferred tax liabilities2,382 1,768 2,382 1,769 
Total liabilities114,453 84,965 103,392 76,753 
Share capital3,474 2,579 3,474 2,579 
Capital surplus27,098 20,116 27,085 20,106 
Other components of equity4,016 2,981 6,261 4,647 
Retained earnings428,499 318,095 455,365 338,039 
Equity attributable to owners of the Parent Company463,087 343,771 492,185 365,371 
Non-controlling interest641 476 664 494 
Total equity463,728 344,247 492,849 365,865 
Total liabilities and equity578,181 429,212 596,241 442,618 

* For convenience purposes only, the KRW amounts are expressed in U.S. dollars at the rate of KRW 1,347.08 to US$ 1.00, the noon buying rate in effect on March 29, 2024 as quoted by the Federal Reserve Bank of New York.




GRAVITY Co., Ltd.
Consolidated Statements of Comprehensive Income

(In millions of KRW and thousands of US$ except for share and ADS data)

Three months ended
31-Dec-2331-Mar-2331-Mar-24
(KRW)(US$)(KRW)(US$)(KRW)(US$)
(unaudited)(unaudited)(unaudited)(unaudited)(unaudited)(unaudited)
Revenues:
Online games23,98017,80122,696 16,84818,065 13,410
Mobile games116,45686,451138,994 103,18298,548 73,157
Other revenue5,0943,7823,257 2,4183,166 2,350
Total net revenue145,530108,034164,947 122,448119,779 88,917
Cost of revenue93,33069,283105,485 78,30673,628 54,657
Gross profit52,20038,75159,462 44,14246,151 34,260
Operating expenses:
Selling, general and administrative expenses20,57615,27513,271 9,85215,747 11,690
Research and development3,7482,7822,922 2,1693,601 2,673
Others, net1,445 1,073 (49)(36)(66)(49)
Total operating expenses25,76919,13016,144 11,98519,282 14,314
Operating profit26,43119,62143,318 32,15726,869 19,946
Finance income(costs):
Finance income6,534 4,850 5,461 4,0546,297 4,675
Finance costs(6,797)(5,046)(2,553)(1,895)(668)(496)
Profit before income tax26,16819,42546,226 34,31632,498 24,125
Income tax expense4,6253,4339,799 7,2745,615 4,168
Profit for the year21,54315,99236,427 27,04226,883 19,957
Profit attributable to:
Non-controlling interest(33)(24)(39)(29)17 13 
Owners of Parent company21,57616,01636,466 27,07126,866 19,944
Earning per share
- Basic and diluted3,105 2.30 5,248 3.903,866 2.87
Weighted average number of shares outstanding
- Basic and diluted6,948,900 6,948,900 6,948,900 6,948,9006,948,900 6,948,900
Earning per ADS
- Basic and diluted3,105 2.30 5,248 3.903,866 2.87

* For convenience, the KRW amounts are expressed in U.S. dollars at the rate of KRW 1,347.08 to US$1.00, the noon buying rate in effect on March 29, 2024 as quoted by the Federal Reserve Bank of New York.
(1) Each ADS represents one common share.





SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


GRAVITY CO., LTD.
By:/s/ Heung Gon Kim
Name:Heung Gon Kim
Title:Chief Financial Officer
Date: May 9, 2024



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