194480.KQ Devsisters Corp | Can Cookie Run Give The Stock a Sugar Rush? | TickerTrends.io

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Ticker: 194480.KQ
Sector: Electronic Gaming
Share Price: 39,450 KRW
Market Cap: 475.71B KRW

Business Intro:

Devsisters Corporation, established in 2007, is a prominent South Korean mobile game developer and publisher with a significant global footprint. From its headquarters in Seoul, South Korea, the company has strategically expanded its operations to encompass four global offices, including presences in Japan, Taiwan, and San Mateo, California, in the United States. In recent years, the company has committed to engage with key gaming markets and providing localized experiences for its diverse player base. The cornerstone of Devsisters' success lies in its widely acclaimed Cookie Run IP, a franchise that has captivated over 200 million users across the globe. This substantial user base is a valuable asset, fostering brand loyalty and providing a strong foundation for the introduction of new titles and related ventures within the Cookie Run universe.

The operational framework of Devsisters includes three dedicated game development studios – Oven Games, Studio Kingdom, and Press A – each focusing on distinct aspects of game creation or genres, alongside an investment subsidiary known as Devsisters Ventures. The company has also garnered recognition within the industry, winning the "Best Mobile Developer" award at the Pocket Gamer Awards 2022.

History:

Devsisters' journey began in May 2007 under the name Extra Standard, founded by Ji-hoon Lee with the initial aspiration of developing edutainment software. However, limited capital resources led the nascent company to primarily engage in contract work for larger businesses. This early period of adaptation and resilience proved crucial for the company's survival. In 2009, Extra Standard underwent a significant transformation, rebranding itself as Moblier Corp. This name change coincided with a strategic pivot towards the rapidly expanding mobile app market, with a particular focus on the newly introduced Apple App Store. This early recognition of the potential of the smartphone platform demonstrated a forward-thinking approach. The company began operating under the Moblier Corp name on January 2, 2009, with Ji-hoon Lee serving as CEO, Se-joong Kim as COO, and Min-woo Ryu as CSO. The brand name "Dev Sisters" was initially used for the company's mobile applications before it was officially adopted as the company's name in April 2010.

Moblier Corp. distinguished itself as one of the pioneering Korean companies to target the international market through the iPhone App Store following its launch in July 2008. This early international focus, even before the iPhone was officially available in Korea, signaled a global ambition from the company's inception. While initially developing a range of utility and entertainment applications, Moblier found its breakthrough with the release of OvenBreak on June 15, 2009, for iOS, followed by an Android version in 2011.

The remarkable success of OvenBreak, which achieved over 10 million downloads by 2011 and surpassed 20 million by 2013, ranking as the most popular free app in 20 countries, validated the company's potential in the mobile gaming sector and prompted a strategic shift towards game development as its primary focus. This early global triumph demonstrated the appeal of their game design and characters to a worldwide audience. Fueling this growth, the company secured its first investment of 1 billion Korean won from Com2Us in 2010, followed by a substantial 4 billion won investment from Soft Bank Ventures and MVP Capital in June 2011. These investments provided crucial capital for expansion, leading to a rapid increase in employee numbers from 10 to 52 within a year, and reaching 64 by June 2012. However, despite this growth and financial backing, Devsisters faced challenges in replicating the initial success of OvenBreak between 2010 and 2012. This period underscored the difficulty of sustaining success in the competitive mobile gaming market. By 2013, the company experienced a significant downturn, with the team size reportedly shrinking to just 12 members, indicating a period of restructuring and re-evaluation.

A pivotal moment arrived in 2013 when Devsisters strategically shifted its focus to the domestic Korean market and launched Cookie Run on April 2 via the popular KakaoTalk messaging platform. This decision proved to be a resounding success, propelling the company to new heights. Within a short period, Cookie Run ascended to become the #1 top-grossing game on Google Play and #6 on the App Store in Korea by May 2013. This rapid rise in the app store rankings validated their renewed market focus and the inherent appeal of the Cookie Run game. The game's success extended beyond Korea, with Devsisters achieving a global ranking of #10 among "Top Publishers by Monthly Game Revenue" on Google Play. This international recognition, stemming from their domestic success, highlighted the global potential of the Cookie Run IP. The game's popularity within Korea was further evidenced by its rapid download rate, reaching 10 million downloads within just 12 weeks and becoming the seventh game to achieve this milestone on Kakao Game. By April 2014, the total number of downloads in Korea alone had doubled to 20 million. This phenomenal success translated into significant financial gains, with Cookie Run generating 61.7 billion Korean won in annual sales and 22.3 billion won in net profits in 2013, marking a remarkable financial turnaround for the company. Building on this momentum, Devsisters released the international version of Cookie Run, known as LINE CookieRun, on January 29, 2014, which went on to achieve over 87 million downloads globally, later reaching 114 million. This global expansion further solidified the Cookie Run IP's international appeal. A significant milestone in the company's history was its IPO on September 21, 2014, with 2,700,000 shares offered at 53,000 won per share on the KOSDAQ stock market. Devsisters officially became a publicly traded company on October 6, 2014. This move provided the company with access to substantial capital for future growth and validated its prior successes.

Continuing its strategic evolution, Devsisters established its own startup investment arm, Devsisters Ventures, in May 2015. This initiative indicated a long-term vision extending beyond game development, with a focus on fostering innovation and growth within the broader technology ecosystem. However, by 2015, the initial fervor surrounding the original Cookie Run began to subside, leading to a decrease in revenue. This decline underscored the need for continuous innovation and the development of new engaging content to maintain player interest. In response, Devsisters announced the development of a sequel in April 2015, initially titled Cookie Run 2, with the aim of a global launch.