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DoubleDown Interactive(DDI) - 2025 Q2 - Earnings Call Transcript
2025-08-12 22:00
Financial Data and Key Metrics Changes - For Q2 2025, the company reported consolidated revenue of $84.8 million, with adjusted EBITDA of $33.5 million, reflecting a decline from $88.2 million in Q2 2024 [6][12] - Social casino revenues decreased by 14% year-over-year, totaling $69.3 million, while iGaming revenues from Super Nation nearly doubled, increasing by 96% to $15.5 million [12][13] - Adjusted EBITDA margin was 39.5% for Q2 2025, down from 42.5% in Q2 2024, with net cash flows from operating activities at $19.7 million, compared to $34.8 million in Q2 2024 [17][18] Business Line Data and Key Metrics Changes - The Flexit DoubleDown Casino app remains a significant cash flow generator, with ARPDAU at $1.33, unchanged from Q2 2024, and payer conversion rate increased to 7% from 6.7% in Q2 2024 [7][14] - Direct-to-consumer (DTC) revenue now accounts for over 15% of total social casino revenue, indicating a successful shift towards DTC monetization [8] - Super Nation's revenue of $15.5 million in Q2 2025 marked the highest quarterly performance since its acquisition, reflecting a growth of $2.3 million from the previous quarter [9][10] Market Data and Key Metrics Changes - The company is expanding its presence in Europe through the acquisition of Val Games, which primarily generates revenue in Germany [8] - The integration of Wow Games is expected to diversify revenue streams and enhance operational success in new markets [9][10] Company Strategy and Development Direction - The company is committed to enhancing shareholder value through strategic acquisitions and investments in both social casino and iGaming sectors [6][10] - The acquisition of Wow Games is seen as an opportunity to leverage existing strengths in the social casino business while expanding into the European market [8][32] - Future growth strategies include launching additional brand sites for Super Nation and exploring new gaming categories and geographic expansions [48][54] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges in the social casino industry due to expected revenue declines in 2025 but remains committed to product development and marketing initiatives [15][16] - The company is optimistic about the growth potential of Super Nation, with plans to enhance retention and operational efficiency [48][56] Other Important Information - The transition to IFRS reporting is expected to have minimal impact on financial statements, primarily affecting lease treatment [4][12] - As of June 30, 2025, the company had a cash position of approximately $481.2 million, which was reduced following the acquisition payment [18][19] Q&A Session Summary Question: Balancing growth versus profitability for Wow Games - Management views Wow Games as an exciting opportunity to leverage strengths in Europe and plans to support its growth through existing expertise [24][25] Question: Future targets for direct-to-consumer revenue - Management is pleased with the current DTC revenue exceeding 15% and anticipates further growth but has not set a specific long-term target [26][28] Question: Background on the Wow Games acquisition process - The acquisition was seen as opportunistic, complementing the company's existing social casino business without detracting from other growth searches [32][33] Question: Impact of regulatory actions on the business - Management clarified that the company is not involved in the sweepstakes business and has not seen a quantifiable positive impact from regulatory actions against competitors [34][35] Question: Revenue and profitability expectations for iGaming - Management believes that Super Nation can achieve a profit margin of over 10% once sufficient scale is reached, with plans for further brand site launches [47][48] Question: Expansion plans beyond current markets - The company is exploring additional licenses in various European countries and Canada, aiming for regional expansion [53][54]
DoubleDown Interactive Reports Second Quarter 2025 Financial Results
Globenewswire· 2025-08-12 20:15
SEOUL, South Korea, Aug. 12, 2025 (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 unaudited financial results for the second quarter ended June 30, 2025. Beginning with the fourth quarter of 2024, the Company is reporting its financial results in accordance with International Financial Reporting Standards (“IFRS”). As such, the financial results for the se ...
DoubleDown Interactive Completes Acquisition of German Social Casino Operator WHOW Games
Globenewswire· 2025-07-14 20:15
Core Viewpoint - DoubleDown Interactive Co., Ltd. has successfully completed the acquisition of WHOW Games GmbH for €55 million (approximately $64.3 million), with potential additional earn-out payments based on performance targets [1][2]. Company Overview - DoubleDown Interactive is a leading developer and publisher of digital games, particularly in the social casino segment, with its flagship title, DoubleDown Casino, being popular among casual players globally [2]. - The company operates through mobile and web-based platforms, providing authentic Vegas-style entertainment experiences [2]. WHOW Games Overview - WHOW Games, based in Hamburg, Germany, specializes in social casino games and has a strong presence in the European market [3]. - Founded in 2014, WHOW Games is known for its proprietary brand MyJackpot and partnerships with established casino brands, enhancing its market reach [3].
Azerion announces definitive agreement with DoubleDown Interactive for the sale of Whow Games Company sharpens focus on digital advertising, cloud services and AI
GlobeNewswire News Room· 2025-07-09 21:30
Group 1 - Azerion has sold its subsidiary Whow Games to DoubleDown Interactive for a total consideration of €65 million, consisting of an upfront payment of €55 million and an earn-out of up to €10 million [1] - The sale is part of Azerion's strategy to reinforce digital advertising as its core business while expanding into cloud infrastructure and AI-driven solutions [2][3] - The company has previously optimized its portfolio, including the divestment of its social card games portfolio in 2023 for €81.3 million [3] Group 2 - Founded in 2014, Azerion has become a major player in digital advertising, generating €551 million in revenue in 2024, a 7% year-on-year increase, with a revenue guidance for 2025 between €600–650 million [4] - In Q1 2025, Azerion reported a 68% growth in EBITDA compared to the same period last year, attributed to a focus on efficiency and profitability [4] - The company has launched Azerion Intelligence, a platform providing affordable cloud hosting and access to open-source AI tools, addressing the growing demand for local alternatives to major cloud providers [5]
DoubleDown Interactive Enters into Agreement to Acquire German Social Casino Operator WHOW Games
Globenewswire· 2025-07-08 12:00
SEOUL, South Korea, July 08, 2025 (GLOBE NEWSWIRE) -- DoubleDown Interactive Co., Ltd. (NASDAQ: DDI) (“DoubleDown” or the “Company”), a leading gaming company delivering exceptional player experiences across multiple genres, announced today that the Company entered into a Share Purchase and Transfer Agreement with Azerion Tech Holding B.V. to acquire WHOW Games GmbH, a social casino developer headquartered in Hamburg, Germany. The initial consideration for 100% ownership interest in WHOW Games is €55 millio ...
DoubleDown Interactive Co. (DDI) Earnings Call Presentation
2025-06-23 07:14
This investor presentation (this "Presentation") is for informational purposes only and does not constitute an offer to sell, a solicitation of an offer to buy, or a recommendation to purchase any equity, debt, or other securities of DoubleDown Interactive Co., Ltd. ("DDI," the "Company," "we," "us" or "our"). The information contained herein does not purport to be all inclusive. The data contained herein is derived from various internal and external sources believed to be reliable, but there can be no assu ...
DoubleDown Interactive to Donate $10,000 to the ASPCA® 
Globenewswire· 2025-06-16 15:00
Core Points - DoubleDown Interactive Co., Ltd. announced a $10,000 donation to the ASPCA to support animal welfare in the United States [1] - The company is organizing a play-to-enter giveaway event called "Giving Meow" on June 18, 2025, to engage players and promote the ASPCA's mission [2] - CEO In Keuk Kim emphasized the company's commitment to animal welfare and the importance of supporting the ASPCA during kitten season [3] - ASPCA's Director of Cause Partnerships, Matthew Carroll, expressed gratitude for the donation, highlighting its significance during a critical time for animal shelters [3] Company Overview - DoubleDown Interactive is a leading developer and publisher of digital games, focusing on mobile and web-based platforms [4] - The flagship product, DoubleDown Casino, has been popular among players, providing a range of classic and modern games [4] - The company also operates real-money iGaming sites in Western Europe through its subsidiary, SuprNation [4]
DoubleDown Interactive: Insider Sale Doesn't Change The Fundamentals, I'm Doubling Down
Seeking Alpha· 2025-06-16 11:15
Group 1 - DoubleDown Interactive (DDI) experienced a significant decline of 23.7% on June 12 following an insider selling shares at $8.50 each, raising questions about its investment potential [1] - Despite the recent drop, there is a belief that DDI remains a viable investment opportunity [1] Group 2 - The investment strategy focuses on GARP (growth at a reasonable price) stocks while also seeking opportunities in other areas [2] - The investment approach does not adhere to a specific time horizon, with positions held as long as the investment thesis remains valid [2] - The analyst has developed market-beating algorithms using Python to identify attractive investment opportunities [2]
DoubleDown Interactive Announces Pricing of Secondary Offering by Selling Shareholder
Globenewswire· 2025-06-12 13:00
Core Viewpoint - DoubleDown Interactive Co., Ltd. has announced a secondary offering of 4,347,827 American Depositary Shares (ADSs) at a price of $8.50 per ADS, with the offering being made by STIC Special Situation Diamond Limited, the Selling Shareholder [1][2]. Group 1: Offering Details - The offering consists entirely of ADSs sold by the Selling Shareholder and will not affect the number of outstanding Common Shares [1]. - The Selling Shareholder has granted underwriters a 30-day option to purchase up to 652,173 additional ADSs at the public offering price [1]. - The offering is expected to close on or about June 13, 2025, subject to customary closing conditions [2]. Group 2: Financial and Regulatory Information - The Company will not receive any proceeds from the sale of the ADSs by the Selling Shareholder [2]. - The ADSs are being offered under a shelf registration statement filed with the SEC on September 14, 2022, which was declared effective on September 27, 2022 [3]. - A prospectus supplement and accompanying prospectus will be filed with the SEC, detailing the terms of the offering [4]. Group 3: Company Overview - DoubleDown Interactive Co., Ltd. is a leading developer and publisher of digital games on mobile and web-based platforms, known for its flagship social casino title, DoubleDown Casino [7]. - The Company provides authentic Vegas entertainment experiences to casual players worldwide through its online social casino [7]. - The subsidiary, SuprNation, operates three real-money iGaming sites in Western Europe [7].
DoubleDown Q1 Earnings & Revenues Miss Estimates, ARPDAU Up Y/Y
ZACKS· 2025-05-14 13:45
Company Performance - DoubleDown Interactive Co., Ltd. (DDI) reported first-quarter 2025 earnings per share (EPS) of 48 cents, missing the Zacks Consensus Estimate of 55 cents by 12.7% and down from 61 cents in the prior-year quarter [2] - Revenues for the quarter were $83.5 million, which also fell short of the consensus mark of $84 million, representing a 5.2% decline year-over-year [2] - The company's social casino/free-to-play games generated revenues of $70.3 million, down 12% year-over-year, while SuprNation iGaming operations contributed $13.2 million, up 59% year-over-year [2] Financial Metrics - Average revenue per daily active user (ARPDAU) for social casino/free-to-play games increased to $1.29 from $1.26 a year ago, while average monthly revenue per payer decreased by 1.8% year-over-year to $276 [3] - Adjusted EBITDA decreased to $30.8 million from $32.7 million in the year-ago quarter, with the adjusted EBITDA margin contracting by 20 basis points to 36.9% [4] - Total operating expenses decreased to $53.9 million from $57 million year-over-year, primarily due to lower revenues and reduced research and development expenses [4] Cash Position - As of March 31, 2025, DDI had cash and cash equivalents of $365.7 million, an increase from $334.9 million as of December 31, 2024 [5] - Net cash from operating activities for the first quarter was $41.1 million, compared to $35.7 million in the year-ago period [5]