Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16]

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 November 2024

Commission File Number 000-51138

GRAVITY CO., LTD.

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(Translation of registrant’s name into English)

14F, 396 World Cup buk-ro, Mapo-gu, Seoul 121-795, Korea

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(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

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GRAVITY REPORTS THIRD QUARTER OF 2024 RESULTS AND BUSINESS UPDATES

Seoul, South Korea – November 12, 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 third quarter ended September 30, 2024, prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board and business updates.

THIRD QUARTER 2024 HIGHLIGHTS

•Total revenues were KRW 128,376 million (US$ 97,629 thousand), representing a 4.4% increase from the second quarter ended June 30, 2024 (“QoQ”) and a 27.1% decrease from the third quarter ended September 30, 2023 (“YoY”).

•Operating profit was KRW 27,576 million (US$ 20,971 thousand), representing an 84.0% increase QoQ and a 27.3% decrease YoY.

•Profit before income tax expenses was KRW 28,415 million (US$ 21,609 thousand), representing a 41.7% increase QoQ and a 31.0% decrease YoY.

•Net profit attributable to parent company was KRW 22,385 million (US$ 17,023 thousand), representing a 78.1% increase QoQ and a 22.7% decrease YoY.

REVIEW OF THIRD QUARTER 2024 FINANCIAL RESULTS

Revenues

Online game revenues for the third quarter of 2024 were KRW 19,657 million (US$ 14,949 thousand), representing a 1.1% increase QoQ from KRW 19,445 million and a 13.5% increase YoY from KRW 17,316 million. The increase QoQ was mainly attributable to increased revenues from Ragnarok Landverse in Thailand and Ragnarok Online in China. The increase YoY was also mainly due to increased revenues from Ragnarok Landverse in Thailand and Ragnarok Online in China. Such increase QoQ and YoY was partially offset by decreased revenue from Ragnarok Online in Thailand.

Mobile game revenues were KRW 102,524 million (US$ 77,969 thousand) for the third quarter of 2024, representing a 3.5% increase QoQ from KRW 99,019 million and a 34.1% decrease YoY from KRW 155,467 million. The increase QoQ was resulted increase revenue from Ragnarok: Rebirth in Southeast Asia and THE RAGNAROK which was launched in Korea on September 9, 2024. Such increase was partially offset by decreased revenues from Ragnarok Origin in North, Central and South America and Southeast Asia. The decrease YoY was mainly due to decreased revenues from Ragnarok Origin in Southeast Asia, Taiwan, Hong Kong and Macau. This decrease was partially offset by increased revenues from Ragnarok Origin in North, Central and South America and THE RAGNAROK (Ragnarok: Novice Hearts) in Taiwan, Hong Kong and Macau.

Other revenues were KRW 6,195 million (US$ 4,711 thousand) for the third quarter of 2024, representing a 37.6% increase QoQ from KRW 4,503 million and an 84.3% increase YoY from KRW 3,362 million.

Cost of Revenue

Cost of revenue was KRW 76,261 million (US$ 57,996 thousand) for the third quarter of 2024, representing a 0.3% increase QoQ from KRW 76,006 million and a 35.3% decrease YoY from KRW 117,834 million. The increase QoQ was mainly due to increase of salaries and amortization expense on intangible asset. The decrease YoY was primarily due to decreased commission paid for mobile game services related to Ragnarok Origin in Southeast Asia, Taiwan, Hong Kong and Macau.

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Operating Expenses

Operating expenses were KRW 24,539 million (US$ 18,662 thousand) for the third quarter of 2024, representing a 23.2% decrease QoQ from KRW 31,972 million and a 20.3% increase YoY from KRW 20,394 million. The decrease QoQ was mainly due to decreased advertising expenses for mobile game services related to THE RAGNAROK (Ragnarok: Novice Hearts) in Taiwan, Hong Kong and Macau, and commission paid. The increase YoY was mainly due to increased advertising expenses for mobile game services related to the launch of THE RAGNAROK in Korea on September 9, 2024 and the launch of Mirren: Millennium Tour in Korea on August 20, 2024.

Profit Before Income Tax Expenses

Profit before income tax expenses was KRW 28,415 million (US$ 21,609 thousand) for the third quarter of 2024 compared with profit before income tax expense of KRW 20,057 million for the second quarter of 2024 and profit before income tax expenses of KRW 41,208 million for the third quarter of 2023.

Net Profit

As a result of the foregoing factors, Gravity recorded a net profit attributable to parent company of KRW 22,385 million (US$ 17,023 thousand) for the third quarter of 2024 compared with net profit attributable to parent company of KRW 12,569 million for the second quarter of 2024 and a net profit attributable to parent company of KRW 28,961 million for the third quarter of 2023.

Liquidity

The balance of cash and cash equivalents and short-term financial instruments was KRW 513,993 million (US$ 390,887 thousand) as of September 30, 2024.

Note: For convenience purposes only, the KRW amounts have been expressed in U.S. dollars at the exchange rate of KRW 1,314.94 to US$ 1.00, the noon buying rate in effect on September 30, 2024 as quoted by the Federal Reserve Bank of New York.

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GRAVITY BUSINESS UPDATES

Ragnarok Online IP-based Games

•THE RAGNAROK, an MMORPG Mobile and PC game

THE RAGNAROK was officially launched in Korea on September 9, 2024 and in Southeast Asia on October 31, 2024.

•Ragnarok X: Next Generation, an MMORPG Mobile and PC game

Ragnarok X: Next Generation was officially launched in China on September 13, 2024 with preparations underway for its launch in Japan on November 20, 2024, and North, Central and South America and Europe within 2025.

•Ragnarok: Rebirth an MMORPG Mobile game

Ragnarok: Rebirth was officially launched in Taiwan, Hong Kong and Macau on October 31, 2024.

•Ragnarok V: Returns, a 3D MMORPG Mobile and PC game

Ragnarok V: Returns will be launched in Singapore and Malaysia in the fourth quarter of 2024.

•Ragnarok M: Classic, an MMORPG Mobile and PC game

Ragnarok M: Classic, the new sequel game of Ragnarok M: Eternal Love, is underway for its launch in Southeast Asia in the first half of 2025.

•Ragnarok Origin, an MMORPG Mobile and PC game

Ragnarok Origin is on the way to be launched in Europe in the first half of 2025.

•Ragnarok Crush, a Puzzle and Tower Defense Mobile game

Ragnarok Crush will be launched in Global in the first half of 2025.

•Ragnarok 3, an MMORPG Mobile and PC game

Ragnarok 3, the new sequel game of Ragnarok Online, is being prepared to be launched in Global within 2025.

•PROJECT ABYSS, an MMOARPG Mobile game

PROJECT ABYSS is underway of its development.

Other IP-based games

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

TOKYO PSYCHODEMIC will be launched in Global on November 28, 2024.

•KAMiBAKO, a World Craft RPG PC and Console game

KAMiBAKO aims to be launched in Global in the first half of 2025.

•Gunbound an MMO Turn-Based Artillery PC game

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Gunbound will be launched in Southeast Asia and Latin America in the first half of 2025.

•Snow Brothers 2 Special, an Action and Platformer PC and Console game

Snow Brothers 2 Special will be launched in Global in the first half of 2025.

Investor Presentation

Gravity issued an investor presentation. The presentation contains the Company’s recent business updates, results of the third 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 regions. 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: [e-mail]

Ms. Jin Lee

Ms. Yujin Oh
IR Unit
Gravity Co., Ltd.
Email: [e-mail]
Telephone: [phone]

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GRAVITY Co., Ltd.

Consolidated Statements of Financial Position

(In millions of KRW and thousands of US$)

						As of
						31-Dec-23																								30-Sep-24
						KRW												US$												KRW												US$
						(audited)												(unaudited)												(unaudited)												(unaudited)
Assets
Current assets:
Cash and cash equivalents									184,082												139,993												200,677												152,613
Short-term financial instruments									277,215												210,820												313,316												238,274
Accounts receivable, net									71,213												54,157												66,385												50,485
Other receivables, net									3,637												2,766												473												360
Prepaid expenses									2,994												2,277												4,894												3,722
Other current financial assets									4,439												3,376												5,884												4,475
Other current assets									3,319												2,524												3,921												2,982
Total current assets									546,899												415,913												595,550												452,911
Property and equipment, net									10,151												7,720												7,230												5,498
Intangible assets, net									6,370												4,844												5,827												4,431
Deferred tax assets									5,952												4,526												5,542												4,215
Other non-current financial assets									1,824												1,387												1,624												1,235
Other non-current assets									6,985												5,312												8,562												6,510
Total assets									578,181												439,702												624,335												474,800
Liabilities and Equity
Current liabilities:
Accounts payable									61,778												46,982												49,951												37,987
Deferred revenue									18,093												13,760												17,902												13,614
Withholdings									3,072												2,336												3,595												2,734
Accrued expense									2,313												1,759												2,945												2,240
Income tax payable									16,927												12,873												5,873												4,466
Other current liabilities									4,251												3,233												2,777												2,112
Total current liabilities									106,434												80,943												83,043												63,153
Long-term account payables									677												515												898												683
Long-term deferred revenue									1,785												1,357												2,652												2,017
Other non-current liabilities									3,175												2,415												2,332												1,774
Deferred tax liabilities									2,382												1,811												2,383												1,812
Total liabilities									114,453												87,041												91,308												69,439
Share capital									3,474												2,642												3,474												2,642
Capital surplus									27,098												20,608												26,979												20,517
Other components of equity									4,016												3,054												11,606												8,826
Retained earnings									428,499												325,870												490,318												372,882
Equity attributable to owners of the Parent Company									463,087												352,174												532,377												404,867
Non-controlling interest									641												487												650												494
Total equity									463,728												352,661												533,027												405,361
Total liabilities and equity									578,181												439,702												624,335												474,800

* For convenience purposes only, the KRW amounts are expressed in U.S. dollars at the rate of KRW 1,314.94 to US$ 1.00, the noon buying rate in effect on September 30, 2024 as quoted by the Federal Reserve Bank of New York.

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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																																				Nine months ended
						30-Jun-24									30-Sep-23									30-Sep-24																		30-Sep-23									30-Sep-24
						(KRW)									(KRW)									(KRW)									(US$)									(KRW)									(KRW)									(US$)
						(unaudited)									(unaudited)									(unaudited)									(unaudited)									(unaudited)									(unaudited)									(unaudited)
Revenues:
Online games									19,445									17,316									19,657									14,949									57,037									57,167									43,475
Mobile games									99,019									155,467									102,524									77,969									513,148									300,090									228,216
Other revenue									4,503									3,362									6,195									4,711									9,801									13,865									10,544
Total net revenue									122,967									176,145									128,376									97,629									579,986									371,122									282,235
Cost of revenue									76,006									117,834									76,261									57,996									391,628									225,895									171,791
Gross profit									46,961									58,311									52,115									39,633									188,358									145,227									110,444
Operating expenses:
Selling, general and administrative expenses									28,108									17,190									20,325									15,457									45,490									64,181									48,809
Research and development									4,286									3,964									3,706									2,818									9,738									11,594									8,817
Others, net									(422)									(760)									508									387									(806)									18									14
Total operating expenses									31,972									20,394									24,539									18,662									54,422									75,793									57,640
Operating profit									14,989									37,917									27,576									20,971									133,936									69,434									52,804
Finance income(costs):
Finance income									8,867									7,059									5,924									4,505									16,733									21,088									16,037
Finance costs									(3,799)									(3,768)									(5,085)									(3,867)									(8,138)									(9,552)									(7,264)
Profit before income tax									20,057									41,208									28,415									21,609									142,531									80,970									61,577
Income tax expense									7,476									12,223									6,080									4,624									32,092									19,172									14,580
Profit for the year									12,581									28,985									22,335									16,985									110,439									61,798									46,997
Profit attributable to:
Non-controlling interest									12									24									(50)									(38)									(4)									(21)									(15)
Owners of Parent company									12,569									28,961									22,385									17,023									110,443									61,819									47,012
Earnings per share
- Basic and diluted									1,809									4,168									3,221									2.45									15,894									8,896									6.77
Weighted average number of shares outstanding
- Basic and diluted									6,948,900									6,948,900									6,948,900									6,948,900									6,948,900									6,948,900									6,948,900
Earnings per ADS
- Basic and diluted									1,809									4,168									3,221									2.45									15,894									8,896									6.77

* For convenience, the KRW amounts are expressed in U.S. dollars at the rate of KRW 1,314.94 to US$1.00, the noon buying rate in effect on September 30, 2024 as quoted by the Federal Reserve Bank of New York.

(1) Each ADS represents one common share.

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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: November 12, 2024

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