Definitions

Key figures and alternative performance measures

ARPDAU Average revenue per daily active user. Calculated as Bookings in the quarter divided by days in the quarter divided by average daily active users in the quarter.
Bookings Revenue before changes in deferred revenue, including deposits from paying users, in-game advertising revenue and other game-related revenue.
Cash conversion ratio Free cash flow for the last twelve months divided by EBITDA for the last twelve months.
DAU Average daily active users. Calculated as the average daily active users each month of the quarter, divided by months in the quarter.
Operating profit (EBIT) Profit before financial items and tax.
EBITDA Operating profit before depreciation and amortization. Adjusted EBITDA is EBITDA adjusted for items affecting comparability.
EBITDA margin EBITDA as a percentage of Net revenue. Adjusted EBITDA margin is EBITDA margin adjusted for items affecting comparability.
Adjusted EBITDAC EBITDA less capitalized product development, adjusted for items affecting comparability.
Adjusted EBITDAC margin Adjusted EBITDAC as a percentage of Net revenue.
Free cash flow Cash flow from operations minus acquisitions of intangible assets and repayment of lease liabilities.
Gross profit margin Gross profit as a percentage of Net revenue, where Gross profit is defined as Net revenue minus Direct costs.
IAC, Items affecting comparability Significant income statement items that are not included in the Group’s normal recurring operations and which distort the comparison between the periods.
Adjusted interest coverage ratio, pro forma Adjusted EBITDA pro forma divided by net financial items excluding revaluation of provision for earnouts and interest on earnout consideration for the past twelve months.
Adjusted leverage ratio Net debt in relation to the last twelve months’ Adjusted EBITDA. Adjusted leverage ratio, pro forma is calculated as Net debt in relation to the last twelve month’s Adjusted EBITDA pro forma.
Adjusted leverage ratio, including NTM cash earnout Net debt, including cash earnout payments for the next twelve months, in relation to the last twelve months’ Adjusted EBITDA. Adjusted leverage ratio, including NTM cash earnout, pro forma is calculated as Net debt, including cash earnout payments for the next twelve months, in relation to the last twelve months’ Adjusted EBITDA pro forma.
MAU Average monthly active users. Calculated as monthly active users each month of the quarter, divided by months in the quarter.
Net debt Interest bearing liabilities, including the book value of equity swaps and currency derivatives, minus cash and cash equivalents. Provisions for earnouts are not considered interest bearing in this context.
Organic growth Change in consolidated net revenue, excluding the translation impact of changed currency exchange rates, acquisitions, divestments and de-consolidation of subsidiary. Net revenue in acquired operations is considered as acquired growth during twelve months from the acquisition date.
Shareholders’ equity/share Shareholders’ equity attributable to the parent company shareholders divided by the number of shares at the end of the period.
Tax rate Tax rate is calculated as total tax for the period divided by profit before tax. Underlying tax rate is calculated as underlying tax divided by profit before tax excl. transaction costs, earnout interest, earnout revaluations and deconsolidation of subsidiary.
Total bookings by revenue stream Include all bookings excluding external partnerships and other
UAC User acquisition cost.

Operational Definitions

External partnerships Games where Stillfront does not have user data and does not act as the publisher.
Key franchises The games included as key franchises have a set of definitions that define them, such as full-year bookings above SEK 200 million, consistency of core experience, technology and game mechanics and recognizable and evolving IP.
LiveOps The active process of updating and adding new content to our titles to maintain high engagement and social interaction.
Other games Comprise titles and revenue streams that are too small to qualify as key franchises but may have the potential to develop into one, as well as games that generate stable, long-term cash flows without meeting the key franchise criteria. The category also includes games and revenue streams in decline or under strategic review, as well as smaller pockets of new innovation initiatives.
Shared services Offers services to game teams for which they earn a service fee, based on usage, or make a margin on volume. Examples of such services are Marketing, Payments, Data & Analytics, IT & Tech, as well as Finance and HR.

The purpose of each key figure and alternative performance measure is described in the latest Annual Report.