DoubleDown Interactive Reports First Quarter 2024 Financial Results
DoubleDown Interactive Co., reported strong financial results for the first quarter of 2024, with revenue increasing to $88.1 million, net income rising to $30.4 million, and Adjusted EBITDA growing to $31.9 million. The acquisition of SuprNation contributed to revenue growth, while operating expenses also increased. DoubleDown's social casino games showed positive performance metrics, with ARPDAU and average revenue per payer increasing year-over-year.
Revenue increased to $88.1 million in the first quarter of 2024, a 13% increase from the same period in 2023.
Net income rose to $30.4 million in the first quarter of 2024, compared to $23.7 million in the first quarter of 2023.
Adjusted EBITDA increased to $31.9 million in the first quarter of 2024, reflecting a 26% year-over-year growth.
ARPDAU for social casino games increased to $1.26 in the first quarter of 2024 from $1.03 in the first quarter of 2023.
Average monthly revenue per payer for social casino games grew to $281 in the first quarter of 2024 from $221 in the same period in 2023.
Operating expenses increased to $57.1 million in the first quarter of 2024, a 9% rise from the first quarter of 2023.
The inclusion of SuprNation expenses contributed to the increase in operating expenses in the first quarter of 2024.
General and administrative expenses were higher in the first quarter of 2024 despite lower sales and marketing and research and development expenses.
Insights
The recent financial figures released by DoubleDown Interactive show a revenue increase to
An increase in Adjusted EBITDA to
DoubleDown's strategic focus on disciplined user acquisition and research and development spending is also commendable. These efforts appear to be translating into higher margins and improved capital efficiency, aspects that are critical for sustainable growth. Additionally, the reported cash and cash equivalents position of approximately
Analysis of DoubleDown's user engagement metrics reveals significant gains in Average Revenue Per Daily Active User (ARPDAU), which has increased to
While revenue and profitability metrics are strong, there is a notable decrease in the number of monthly and daily active users. The company's monthly active users have reduced from
Investors should consider the scalability of DoubleDown's newly introduced 'meta features' in their social casino games, which seem to be contributing positively to user engagement and monetization. As DoubleDown looks to further grow and integrate the operations of SuprNation, investors would need to monitor the extent to which the company can apply its successful strategies in the European market and achieve a similar level of performance.
SEATTLE, May 08, 2024 (GLOBE NEWSWIRE) -- DoubleDown Interactive Co., Ltd. (NASDAQ: DDI) (“DoubleDown” or the “Company”), a leading developer and publisher of digital games on mobile and web-based platforms, today announced its unaudited financial results for the first quarter ended March 31, 2024. The Company’s consolidated financial results for the three-month period ended March 31, 2024 include the unaudited financial results of SuprNation AB, a European iGaming operator (“SuprNation”), which was acquired by the Company on October 31, 2023.
First Quarter 2024 vs. First Quarter 2023 Summary:
- Revenue increased to
$88.1 million in the first quarter of 2024 from$77.6 million in the first quarter of 2023. Revenue contributed by SuprNation totaled$8.3 million in the first quarter of 2024. Revenue exclusive of the contributions from SuprNation increased to$79.8 million , representing a3% year over year growth. - Operating expenses increased to
$57.1 million in the first quarter of 2024 from$52.2 million in the first quarter of 2023, primarily due to the inclusion of expenses related to SuprNation operations in the first quarter of 2024, partially offset by lower sales and marketing and research and development expenses. - Net income increased to
$30.4 million , or earnings per fully diluted common share of$12.23 ($0.61 per American Depositary Share (“ADS”)), in the first quarter of 2024, from$23.7 million , or earnings of$9.55 per fully diluted common share ($0.48 per ADS), in the first quarter of 2023. Note each ADS represents 0.05 share of a common share. - Adjusted EBITDA increased to
$31.9 million for the first quarter of 2024 from$25.4 million in the first quarter of 2023, primarily due to higher revenue and lower overall sales and marketing and research and development expenses, partially offset by higher general and administrative expenses. Adjusted EBITDA margin increased to36.2% in the first quarter of 2024 from32.8% in the first quarter of 2023. - Average Revenue Per Daily Active User (“ARPDAU”) for the Company’s social casino/free-to-play games increased to
$1.26 in the first quarter of 2024 from$1.03 in the first quarter of 2023 and from$1.24 in the fourth quarter of 2023. - Average monthly revenue per payer for the social casino/free-to-play games increased to
$281 in the first quarter of 2024 from$221 in the first quarter of 2023 and from$279 in the fourth quarter of 2023.
“The first quarter of 2024 marked another quarter of strong financial results, with consolidated revenue of
“The first quarter represented our first full quarter of operations of SuprNation, a European iGaming operator, which is off to a strong start as we begin to implement our initiatives to grow the business by leveraging our marketing and player engagement and monetization strategies and expertise. We intend to continue to focus on driving revenue growth for SuprNation for the next several quarters.
“We believe our consistently strong Adjusted EBITDA margins and free cash flow generation again highlights our commitment and success in prioritizing capital efficiency. We ended the first quarter with an aggregate of cash and cash equivalents and short-term investments, net of current borrowing, of approximately
Summary Operating Results for DoubleDown Interactive (Unaudited)
| Three months ended March 31, | |||||||
| 2024 | 2023 | ||||||
| Revenue ($ MM) | $ | 88.1 | $ | 77.6 | |||
| Total operating expenses ($ MM) | 57.1 | 52.2 | |||||
| Net income ($ MM) | $ | 30.4 | $ | 23.7 | |||
| Adjusted EBITDA ($ MM) | $ | 31.9 | $ | 25.4 | |||
| Net income margin | 34.4 | % | 30.5 | % | |||
| Adjusted EBITDA margin | 36.2 | % | 32.8 | % | |||
| Non-financial performance metrics(1) | |||||||
| Average monthly active users (000s) | 1,478 | 2,032 | |||||
| Average daily active users (000s) | 699 | 841 | |||||
| ARPDAU | $ | 1.26 | $ | 1.03 | |||
| Average monthly revenue per payer | $ | 281 | $ | 221 | |||
| Payer conversion | 6.4 | % | 5.8 | % | |||
| (1) Social casino/free-to-play games only | |||||||
First Quarter 2024 Financial Results
Revenue inclusive of the contributions from SuprNation (with a total revenue of
Operating expenses in the first quarter of 2024 were
The Company recorded net income of
Adjusted EBITDA in the first quarter of 2024 increased
Net cash flows provided by operating activities for the first quarter of 2024 was
Conference Call
DoubleDown will hold a conference call today (May 8, 2024) at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) to discuss these results. A question-and-answer session will follow management’s presentation.
To access the call, please use the following link: DoubleDown First Quarter 2024 Earnings Call. After registering, an email will be sent, including dial-in details and a unique conference call access code required to join the live call. To ensure you are connected prior to the beginning of the call, please register a minimum of 15 minutes before the start of the call.
A simultaneous webcast of the conference call will be available with the following link: DoubleDown First Quarter 2024 Earnings Webcast, or via the Investor Relations page of the DoubleDown website at ir.doubledowninteractive.com. For those not planning to ask a question on the conference call, the Company recommends listening via the webcast. A replay will be available on the Company's Investor Relations website shortly after the event.
About DoubleDown Interactive
DoubleDown Interactive Co., Ltd. is a leading developer and publisher of digital games on mobile and web-based platforms. We are the creators of multi-format interactive entertainment experiences for casual players, bringing authentic Vegas entertainment to players around the world through an online social casino experience. The Company’s flagship social casino title, DoubleDown Casino, has been a fan-favorite game on leading social and mobile platforms for years, entertaining millions of players worldwide with a lineup of classic and modern games. Following its acquisition of SuprNation in October 2023, the Company also operates three real-money iGaming sites in Western Europe.
Safe Harbor Statement
Certain statements contained in this press release are “forward-looking statements” about future events and expectations for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on our beliefs, assumptions, and expectations of industry trends, our future financial and operating performance, and our growth plans, taking into account the information currently available to us. These statements are not statements of historical fact. We have based these forward-looking statements on our current expectations and assumptions about future events. While our management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond our control. Therefore, you should not place undue reliance on such statements. Words such as “anticipates,” believes,” “continues,” “estimates,” “expects,” “goal,” “objectives,” “intends,” “may,” “opportunity,” “plans,” potential,” “near-term,” long-term,” “projections,” “assumptions,” “projects,” “guidance,” “forecasts,” “outlook,” “target,” “trends,” “should,” “could,” “would,” “will,” and similar expressions are intended to identify such forward-looking statements. We qualify any forward-looking statements entirely by these cautionary factors. We assume no obligation to update or revise any forward-looking statements for any reason or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.
Use and Reconciliation of Non-GAAP Financial Measures
In addition to our results determined in accordance with the accounting principles generally accepted in the United States of America (“GAAP”), we believe the following non-GAAP financial measure is useful in evaluating our operating performance. We present “adjusted earnings before interest, taxes, depreciation and amortization” (“Adjusted EBITDA”) because we believe it assists investors and analysts by facilitating comparison of period-to-period operational performance on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. The items excluded from the Adjusted EBITDA may have a material impact on our financial results. Certain of those items are non-recurring, while others are non-cash in nature. Accordingly, the Adjusted EBITDA is presented as supplemental disclosure and should not be considered in isolation of, as a substitute for, or superior to, the financial information prepared in accordance with GAAP, and should be read in conjunction with the financial statements furnished in our report on Form 6-K filed with the SEC.
In our reconciliation from our reported GAAP “net income before provision for taxes” to our Adjusted EBITDA, we eliminate the impact of the following six line items: (i) depreciation and amortization; (ii) interest income; (iii) interest expense; (iv) foreign currency transaction/remeasurement (gain) loss; (v) short-term investments (gain) loss; and (vi) other (income) expense, net. The below table sets forth the full reconciliation of our non-GAAP measures:
| Reconciliation of non-GAAP measures | Three months ended March 31, | ||||||
| (in millions, except percentages) | 2024 | 2023 | |||||
| Net income | $ | 30.4 | $ | 23.7 | |||
| Income tax benefit (expense) | (8.0 | ) | (6.8 | ) | |||
| Income (loss) before tax | 38.4 | 30.4 | |||||
| Adjustments for: | |||||||
| Depreciation and amortization | 0.8 | 0.1 | |||||
| Interest income | (3.4 | ) | (3.1 | ) | |||
| Interest expense | 0.4 | 0.5 | |||||
| Foreign currency transaction/remeasurement gain | (4.3 | ) | (2.4 | ) | |||
| Short-term investments (gain) loss | 0.0 | - | |||||
| Other (income) expense, net | 0.0 | 0.0 | |||||
| Adjusted EBITDA | $ | 31.9 | $ | 25.4 | |||
| Adjusted EBITDA margin | 36.2 | % | 32.8 | % | |||
We encourage investors and others to review our financial information in its entirety and not to rely on any single financial measure.
Company Contact:
Joe Sigrist
ir@doubledown.com
+1 (206) 773-2266
Chief Financial Officer
https://www.doubledowninteractive.com
Investor Relations Contact:
Joseph Jaffoni or Richard Land
JCIR
+1 (212) 835-8500
DDI@jcir.com
| DoubleDown Interactive Co., Ltd. Condensed Consolidated Balance Sheets (In thousands of U.S. dollars, except share and per share amounts) | |||||||
| March 31, | December 31, | ||||||
| 2024 | 2023 | ||||||
| Assets | (unaudited) | ||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 209,863 | $ | 206,911 | |||
| Short-term investments | 99,653 | 67,756 | |||||
| Accounts receivable, net | 34,183 | 32,517 | |||||
| Prepaid expenses, and other assets | 10,044 | 8,570 | |||||
| Total current assets | $ | 353,743 | $ | 315,754 | |||
| Property and equipment, net | 399 | 444 | |||||
| Operating lease right-of-use assets, net | 6,173 | 7,130 | |||||
| Intangible assets, net | 50,430 | 51,571 | |||||
| Goodwill | 396,351 | 396,704 | |||||
| Deferred tax asset | 21,878 | 28,934 | |||||
| Other non-current assets | 2,006 | 2,807 | |||||
| Total assets | $ | 830,890 | $ | 803,344 | |||
| Liabilities and Shareholders’ Equity | |||||||
| Accounts payable and accrued expenses(1) | $ | 14,464 | $ | 13,293 | |||
| Short-term operating lease liabilities(2) | 2,562 | 3,157 | |||||
| Income taxes payable | 1,170 | 112 | |||||
| Contract liabilities | 2,409 | 2,520 | |||||
| Current portion of borrowings with related party(3) | 37,125 | 38,778 | |||||
| Other current liabilities(4) | 10,624 | 10,645 | |||||
| Total current liabilities | $ | 68,354 | $ | 68,505 | |||
| Long-term operating lease liabilities(5) | 3,975 | 4,420 | |||||
| Deferred tax liabilities, net | 567 | 848 | |||||
| Other non-current liabilities | 2,784 | 1,681 | |||||
| Total liabilities | $ | 75,680 | $ | 75,454 | |||
| Shareholders’ equity | |||||||
| Common stock, KRW 10,000 par value - 200,000,000 Shares authorized; 2,477,672 issued and outstanding | 21,198 | 21,198 | |||||
| Additional paid-in-capital | 359,280 | 359,280 | |||||
| Accumulated other comprehensive income | 17,095 | 19,982 | |||||
| Retained earnings | 357,580 | 327,273 | |||||
| Total shareholders’ equity attributable to shareowners of DDI Co. Ltd. | $ | 755,153 | $ | 727,733 | |||
| Equity attributable to noncontrolling interests | 147 | 157 | |||||
| Total equity | $ | 755,300 | $ | 727,890 | |||
| Total liabilities and shareholders’ equity | $ | 830,980 | $ | 803,344 | |||
| (1) Includes related party royalty and other payables of | |||||||
| (2) Includes related party operating lease liability of | |||||||
| (3) Includes related party notes payable of | |||||||
| (4) Includes related party interest payable of | |||||||
| (5) Includes related party operating lease liability of | |||||||
| DoubleDown Interactive Co., Ltd. Condensed Consolidated Statement of Income and Comprehensive Income (Unaudited, in thousands except share and per share amounts) | |||||||
| Three months ended March 31, | |||||||
| 2024 | 2023 | ||||||
| Revenue | $ | 88,143 | $ | 77,596 | |||
| Operating expenses: | |||||||
| Cost of revenue(1)(2) | 27,373 | 25,719 | |||||
| Sales and marketing(1) | 14,760 | 16,045 | |||||
| Research and development(1) | 3,256 | 5,043 | |||||
| General and administrative(1)(3) | 10,871 | 5,343 | |||||
| Depreciation and amortization | 827 | 54 | |||||
| Total operating expenses | 57,087 | 52,204 | |||||
| Operating income | $ | 31,056 | $ | 25,392 | |||
| Other income (expense): | |||||||
| Interest expense(4) | (409 | ) | (462 | ) | |||
| Interest income | 3,431 | 3,130 | |||||
| Gain on foreign currency transactions | 717 | 252 | |||||
| Gain on foreign currency remeasurement | 3,589 | 2,166 | |||||
| Gain (loss) on short-term investments | (7 | ) | - | ||||
| Other, net | (24 | ) | (47 | ) | |||
| Total other income (expense), net | $ | 7,297 | $ | 5,039 | |||
| Income before income tax | $ | 38,353 | $ | 30,431 | |||
| Income tax (expense) benefit | (7,992 | ) | (6,759 | ) | |||
| Net income | $ | 30,361 | $ | 23,672 | |||
| Less: Net income attributable to noncontrolling interests | 53 | - | |||||
| Net income attributable to DoubleDown Interactive Co., Ltd. | $ | 30,308 | $ | 23,672 | |||
| Other comprehensive income (expense): | |||||||
| Pension adjustments, net of tax | 136 | (157 | ) | ||||
| Loss on foreign currency translation | (3,086 | ) | (1,181 | ) | |||
| Comprehensive income | $ | 27,358 | $ | 22,334 | |||
| Earnings per share: | |||||||
| Basic | $ | 12.23 | $ | 9.55 | |||
| Diluted | $ | 12.23 | $ | 9.55 | |||
| Weighted average shares outstanding: | |||||||
| Basic | 2,477,672 | 2,477,672 | |||||
| Diluted | 2,477,672 | 2,477,672 | |||||
| (1) Excluding depreciation and amortization | |||||||
| (2) Includes related party royalty expense of | |||||||
| (3) Includes related party rent and general and administrative expense of | |||||||
| (4) Includes related party interest expense of | |||||||
| DoubleDown Interactive Co., Ltd. Condensed Consolidated Statement of Cash Flows (Unaudited, in thousands of U.S. dollars) | |||||||
| Three months ended March 31, | |||||||
| 2024 | 2023 | ||||||
| Cash flow from (used in) operating activities: | |||||||
| Net Income | $ | 30,361 | $ | 23,672 | |||
| Adjustments to reconcile net income to net cash from operating activities: | |||||||
| Depreciation and amortization | 827 | 55 | |||||
| (Gain)Loss on foreign currency remeasurement | (3,589 | ) | (2,166 | ) | |||
| (Gain)Loss on short-term investments | 7 | - | |||||
| Deferred taxes | 6,756 | 6,063 | |||||
| Working capital adjustments: | |||||||
| Accounts receivable | (1,808 | ) | (7,707 | ) | |||
| Prepaid expenses, other current and non-current assets | (269 | ) | 274 | ||||
| Accounts payable, accrued expenses and other payables | 1,291 | (1,046 | ) | ||||
| Contract liabilities | (112 | ) | (208 | ) | |||
| Income tax payable | 158 | 5 | |||||
| Other current and non-current liabilities | 1,293 | 284 | |||||
| Net cash flows from (used in) operating activities | $ | 34,915 | $ | 19,226 | |||
| Cash flow from (used in) investing activities: | |||||||
| Purchases of intangible assets | - | (4 | ) | ||||
| Purchases of property and equipment | (14 | ) | (40 | ) | |||
| Purchases of short-term investments | (31,934 | ) | (19,298 | ) | |||
| Sales of short-term investments | - | 33,725 | |||||
| Net cash flows from (used in) investing activities | $ | (31,948 | ) | 14,383 | |||
| Cash flow from (used in) financing activities: | |||||||
| Net cash flows from (used in) financing activities: | $ | - | $ | - | |||
| Net foreign exchange difference on cash and cash equivalents | (15 | ) | (22 | ) | |||
| Net increase in cash and cash equivalents | $ | 2,952 | $ | 33,587 | |||
| Cash and cash equivalents at beginning of period | $ | 206,911 | $ | 217,352 | |||
| Cash and cash equivalents at end of period | $ | 209,863 | $ | 250,939 | |||
| Cash paid during year for: | |||||||
| Interest | $ | 81 | $ | - | |||
| Income taxes | $ | 93 | $ | 82 | |||
FAQ
What was DoubleDown Interactive's revenue in the first quarter of 2024?
DoubleDown Interactive reported revenue of $88.1 million in the first quarter of 2024.
What was the net income for DoubleDown Interactive in the first quarter of 2024?
DoubleDown Interactive recorded net income of $30.4 million in the first quarter of 2024.
How did DoubleDown Interactive's ARPDAU change in the first quarter of 2024?
DoubleDown Interactive's ARPDAU increased to $1.26 in the first quarter of 2024 from $1.03 in the first quarter of 2023.
What is the average monthly revenue per payer for DoubleDown Interactive's social casino games in the first quarter of 2024?
DoubleDown Interactive's average monthly revenue per payer for social casino games was $281 in the first quarter of 2024.
When was SuprNation acquired by DoubleDown Interactive?
SuprNation AB, a European iGaming operator, was acquired by DoubleDown Interactive on October 31, 2023.
