While "the trend is your friend" when it comes to short-term investing or trading, timing entries into the trend is a key determinant of success. And increasing the odds of success by making sure the sustainability of a trend isn't easy. The trend often reverses before exiting the trade, leading to a short-term capital loss for investors. So, for a profitable trade, one should confirm factors such as sound fundamentals, positive earnings estimate revisions, etc. that could keep the momentum in the stock ali ...

Group 1: Stock Performance and Price Targets - Shares of DoubleDown Interactive Co., Ltd. (DDI) have increased by 26.6% over the past four weeks, closing at $14.56, with a mean price target of $20.08 indicating a potential upside of 37.9% [1] - The mean estimate includes three short-term price targets with a standard deviation of $5.20, where the lowest estimate is $16.25 (11.6% increase) and the highest is $26 (78.6% increase) [2] - A tight clustering of price targets, indicated by a low standard deviation, suggests a high degree of agreement among analysts regarding the stock's price movement [7] Group 2: Earnings Estimates and Analyst Consensus - There is increasing optimism among analysts about DDI's earnings prospects, as evidenced by strong agreement in revising EPS estimates higher, which correlates with potential stock price increases [9] - Over the last 30 days, the Zacks Consensus Estimate for the current year has risen by 13.7%, with three estimates moving higher and no negative revisions [10] - DDI holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimates, indicating strong potential for near-term upside [11]

Economic Overview - Recent positive economic data has alleviated recession fears, with consumer sentiment rebounding sharply in August, rising to 67.8 from 66.4 in July, surpassing the consensus estimate of 66.9 [1][3]. - Inflation expectations remain stable, with a one-year outlook at 2.9% and a five-year outlook at 3% for the fifth consecutive month [2]. Consumer Discretionary Stocks - Five consumer discretionary stocks are highlighted for their strong potential in 2024: Bright Horizons Family Solutions Inc. (BFAM), DoubleDown Interactive Co., Ltd. (DDI), Royal Caribbean Cruises Ltd. (RCL), Interface, Inc. (TILE), and Cinemark Holdings, Inc. (CNK) [2]. - These stocks have seen positive earnings estimate revisions in the last 60 days, with each carrying a Zacks Rank of 1 (Strong Buy) or 2 (Buy) [6]. Company-Specific Insights - **Bright Horizons Family Solutions Inc. (BFAM)**: Expected earnings growth rate for the current year is 18.7%, with a Zacks Consensus Estimate improvement of 7% over the past 60 days [8]. - **DoubleDown Interactive Co., Ltd. (DDI)**: Expected earnings growth rate for the current year is 15.8%, with a Zacks Consensus Estimate improvement of 13.5% over the past 60 days [10]. - **Royal Caribbean Cruises Ltd. (RCL)**: Expected earnings growth rate for the current year is 69.9%, with a Zacks Consensus Estimate improvement of 3.7% over the past 60 days [12]. - **Interface, Inc. (TILE)**: Expected earnings growth rate for the current year is 28%, with a Zacks Consensus Estimate improvement of 8.5% over the past 60 days [14]. - **Cinemark Holdings, Inc. (CNK)**: Expected earnings growth rate for the current year is 0.8%, with a Zacks Consensus Estimate improvement of 22.7% over the past 60 days [16].

DoubleDown Interactive Co., Ltd. Sponsored ADR (DDI) could be a solid addition to your portfolio given a notable revision in the company's earnings estimates. While the stock has been gaining lately, the trend might continue since its earnings outlook is still improving. The rising trend in estimate revisions, which is a result of growing analyst optimism on the earnings prospects of this company, should get reflected in its stock price. After all, empirical research shows a strong correlation between trend ...

Shares of DoubleDown Interactive Co., Ltd. Sponsored ADR (DDI) have gained 1.8% over the past four weeks to close the last trading session at $12.16, but there could still be a solid upside left in the stock if shortterm price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $19.31 indicates a potential upside of 58.8%. The average comprises four short-term price targets ranging from a low of $16.25 to a high of $26, with a standard deviation of $4.52. Whi ...

Core Insights - DoubleDown Interactive Co., Ltd. (DDI) reported strong second-quarter 2024 results, with earnings and revenues exceeding the Zacks Consensus Estimate and showing year-over-year growth [1][4]. Financial Performance - Earnings per share (EPS) reached 67 cents, surpassing the Zacks Consensus Estimate of 48 cents by 39.6%, compared to 49 cents in the prior-year quarter [4]. - Revenues totaled $88.2 million, exceeding the consensus mark of $84 million by 5.2%, and grew 17.3% year-over-year [4]. - Adjusted EBITDA increased to $37 million from $27.6 million in the year-ago quarter, with an adjusted EBITDA margin expanding by 520 basis points to 41.9% [6]. Business Drivers - The growth was supported by increases in the social casino business and synergies from new meta-features in the DoubleDown Casino app, leading to improved player engagement and monetization [2][3]. - Average Revenue Per Daily Active User (ARPDAU) rose to $1.33 from $1.05 a year ago, while average monthly revenue per payer increased by 22.6% year-over-year to $288 [5]. Operational Efficiency - The company maintained a disciplined approach to user acquisition and R&D spending, contributing positively to the bottom line [3]. - Total operating expenses rose to $52 million from $47.7 million, primarily due to increased general and administrative expenses, as well as depreciation and amortization [6]. Cash Position - As of June 30, 2024, DoubleDown had cash and cash equivalents of $269.2 million, up from $206.9 million as of December 31, 2023 [7]. - Net cash from operating activities for the first half of 2024 was $69.3 million, compared to a net cash outflow of $37.6 million in the same period last year [7].

Core Viewpoint - DoubleDown Interactive (NASDAQ: DDI) reported strong Q2 2024 results, with GAAP EPS of $13.39 and revenue of $88.24 million, exceeding expectations by $4.8 million, showcasing resilience in a challenging market [2][4] Company Overview - DoubleDown Interactive is a leader in digital games, focusing on mobile and web sectors, and is known for its social casino games, including its flagship game, DoubleDown Casino [3] Q2 2024 Highlights - Revenue for Q2 2024 reached $88 million, with social casino games generating $80.3 million and the iGaming business, SuprNation, contributing $7.9 million [4][5] - The social casino business experienced a 7% year-over-year growth from Q2 2023, marking the third consecutive quarter of growth [5] - Average monthly revenue per payer (ARPDAU) increased by 27% year-over-year to $1.33, with payer conversion ratio rising to 6.7% from 6.0% [5] Financial Performance - Adjusted EBITDA rose by 34% to $37 million, with a margin of 41.9%, up from 36.7% in Q2 2023 [5] - Cash flow from operations improved significantly to $34.4 million, contrasting with a net cash outflow of $37.6 million last year [5] - The company ended the quarter with $339 million in cash and investments, maintaining a net cash position of approximately $303 million [5] Valuation Insights - DDI's current P/E ratio stands at 0.29x, significantly lower than a fair value of 15.00x, indicating potential undervaluation by the market [6] - The EPS yield is reported at 342.03%, suggesting a disconnect between market perception and the company's actual performance [6] Growth Strategy - The acquisition of SuprNation for $36.5 million is expected to enhance profitability through leveraging game development and marketing expertise [5] - The company aims to balance growth and cash flow while optimizing both top-line growth and cash flow generation in the coming quarters [5] Market Context - Despite the overall decline in the social casino segment, DoubleDown has managed to outperform competitors, indicating effective strategies in user acquisition and R&D [5][8] - The company is aware of industry challenges but remains focused on maintaining momentum in the social casino market [8]

DoubleDown Interactive Co., Ltd. (NASDAQ:DDI) Q2 2024 Earnings Conference Call August 12, 2024 5:00 PM ET Company Participants In Keuk Kim - Chief Executive Officer Joseph Sigrist - Chief Financial Officer Conference Call Participants David Bain - B. Riley Greg Gibas - Northland Securities Aaron Lee - Macquarie Operator Good afternoon, and welcome to DoubleDown Interactive Earnings Conference Call for the Second Quarter ending in June 30th, 2024. My name is Lisa, and I will be your operator for this afterno ...

[Condensed Consolidated Statements of Income and Comprehensive Income](index=2&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20and%20Comprehensive%20Income) This section details DoubleDown Interactive's financial performance, showing significant growth in revenue, net income, and earnings per share for recent periods [Income and Comprehensive Income Analysis](index=2&type=section&id=Income%20and%20Comprehensive%20Income%20Analysis) DoubleDown Interactive Co., Ltd. reported significant growth in revenue, net income, operating income, and EPS for Q2 and H1 2024, with comprehensive income also increasing Key Income Statement Highlights (in thousands of U.S. Dollars) | Metric | Three months ended June 30, 2024 | Three months ended June 30, 2023 | Six months ended June 30, 2024 | Six months ended June 30, 2023 | | :-------------------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenue | $88,236 | $75,187 | $176,379 | $152,783 | | Operating income | $36,193 | $27,522 | $67,248 | $52,914 | | Income before income tax | $42,640 | $31,918 | $80,993 | $62,349 | | Net income attributable to DoubleDown Interactive Co., Ltd. | $33,177 | $24,357 | $63,485 | $48,029 | | Comprehensive income attributable to DoubleDown Interactive Co., Ltd. | $31,069 | $24,239 | $58,489 | $46,573 | | Basic Earnings per share | $13.39 | $9.83 | $25.62 | $19.38 | | Diluted Earnings per share | $13.39 | $9.83 | $25.62 | $19.38 | - Revenue increased by **17.36%** for the three months ended June 30, 2024, and by **15.44%** for the six months ended June 30, 2024, compared to the respective prior year periods[3](index=3&type=chunk) - Net income attributable to DoubleDown Interactive Co., Ltd. grew by **36.22%** for the three months and **32.18%** for the six months ended June 30, 2024, year-over-year[3](index=3&type=chunk) [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section presents the company's financial position, showing increased assets and shareholders' equity, alongside a significant decrease in total liabilities [Balance Sheet Overview](index=3&type=section&id=Balance%20Sheet%20Overview) The company's financial position strengthened with increased assets and shareholders' equity, and a significant decrease in total liabilities Key Balance Sheet Highlights (in thousands of U.S. Dollars) | Metric | June 30, 2024 (unaudited) | December 31, 2023 | | :------------------------------------------------------------------- | :------------------------ | :---------------- | | Total assets | $852,642 | $803,344 | | Total liabilities | $66,333 | $75,454 | | Total shareholders' equity attributable to shareholders of DoubleDown Interactive Co. Ltd. | $786,222 | $727,733 | | Cash and cash equivalents | $269,155 | $206,911 | | Total current liabilities | $20,394 | $68,505 | | Long-term borrowings with related party | $35,992 | $0 | - Total assets increased by **$49.298 million** (**6.14%**) from December 31, 2023, to June 30, 2024, primarily due to a **$62.244 million** increase in cash and cash equivalents[4](index=4&type=chunk) - Total current liabilities decreased significantly by **$48.111 million** (**70.23%**) due to the reclassification of **$38.778 million** in current portion of borrowings with related party to long-term borrowings[4](index=4&type=chunk) [Condensed Consolidated Statements of Changes in Shareholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Shareholders'%20Equity) This section outlines changes in shareholders' equity, primarily driven by net income, with accumulated other comprehensive income decreasing due to foreign currency translation losses [Shareholders' Equity Changes](index=6&type=section&id=Shareholders'%20Equity%20Changes) Shareholders' equity increased substantially due to net income, though accumulated other comprehensive income decreased from foreign currency translation losses Key Shareholders' Equity Changes (in thousands of U.S. Dollars) | Metric | As of June 30, 2024 | As of April 1, 2024 | As of June 30, 2023 | As of April 1, 2023 | | :------------------------------------------------------------------- | :------------------ | :------------------ | :------------------ | :------------------ | | Total shareholders' equity (3 months) | $786,309 | $755,300 | $672,799 | $648,560 | | Net income (3 months) | $33,177 | N/A | $24,357 | N/A | | Loss on foreign currency translation, net of tax (3 months) | $(2,079) | N/A | $(166) | N/A | | Total shareholders' equity (6 months) | $786,309 | N/A | $672,799 | N/A | | Net income (6 months) | $63,485 | N/A | $48,029 | N/A | | Loss on foreign currency translation, net of tax (6 months) | $(5,165) | N/A | $(1,347) | N/A | - Total shareholders' equity increased by **$31.009 million** for the three months ended June 30, 2024, and by **$58.419 million** for the six months ended June 30, 2024[11](index=11&type=chunk)[15](index=15&type=chunk) - Accumulated other comprehensive income decreased from **$19,982 thousand** at January 1, 2024, to **$14,986 thousand** at June 30, 2024, primarily due to a **$5,103 thousand** foreign currency translation loss[15](index=15&type=chunk)[59](index=59&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section analyzes cash flows, showing significant positive operating cash flow and a considerable increase in cash and cash equivalents for the six months ended June 30, 2024 [Cash Flow Analysis](index=8&type=section&id=Cash%20Flow%20Analysis) The company generated significant positive operating cash flow for H1 2024, a substantial improvement, leading to a considerable increase in cash and cash equivalents Key Cash Flow Highlights (in thousands of U.S. Dollars) | Metric | Six months ended June 30, 2024 | Six months ended June 30, 2023 | | :---------------------------------------------- | :----------------------------- | :----------------------------- | | Net cash flows from operating activities | $69,292 | $(37,595) | | Net cash flows from investing activities | $(4,797) | $4,997 | | Net cash flows from financing activities | $(149) | $0 | | Net decrease in cash and cash equivalents | $62,244 | $(32,881) | | Cash and cash equivalents at end of period | $269,155 | $184,471 | - Net cash flows from operating activities dramatically improved from a **$(37,595) thousand** outflow in 2023 to a **$69,292 thousand** inflow in 2024 for the six-month period[17](index=17&type=chunk) - The company's cash and cash equivalents at the end of the period increased by **$62,244 thousand**, reaching **$269,155 thousand** as of June 30, 2024[17](index=17&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the condensed consolidated financial statements, covering various accounting policies and financial instrument specifics [Note 1: Description of business](index=9&type=section&id=Note%201:%20Description%20of%20business) This note provides an overview of DoubleDown Interactive's business, including its history, ownership, recent acquisition, and financial statement preparation basis [Background and nature of operations](index=9&type=section&id=Background%20and%20nature%20of%20operations) - DoubleDown Interactive Co., Ltd. (DDI) was incorporated in 2008 in Seoul, Korea, focusing on casual games and mobile applications[19](index=19&type=chunk) - DDI is a subsidiary of DoubleU Games Co., Ltd. (DUG), which holds **67.1%** of outstanding shares, with DDI-US being the primary revenue-generating entity[19](index=19&type=chunk) - The company develops and publishes digital gaming content, including DoubleDown Casino, DoubleDown Classic, and DoubleDown Fort Knox[20](index=20&type=chunk) [Acquisition of SuprNation AB](index=9&type=section&id=Acquisition%20of%20SuprNation%20AB) - On October 31, 2023, DDI acquired iGaming operator SuprNation AB for approximately **$36.5 million**, diversifying into real-money iGaming sites in Western Europe[21](index=21&type=chunk) [Basis of preparation and consolidation](index=9&type=section&id=Basis%20of%20preparation%20and%20consolidation) - The financial statements are prepared in conformity with U.S. GAAP and SEC rules for interim financial information, with certain disclosures condensed or omitted[22](index=22&type=chunk) - The condensed consolidated financial statements include DDI and its controlled subsidiaries, with all significant inter-company transactions eliminated[23](index=23&type=chunk) [Use of estimates](index=9&type=section&id=Use%20of%20estimates) - Preparation of financial statements requires estimates and assumptions, particularly for income taxes, revenue recognition, expense accruals, and valuation of goodwill and intangibles[24](index=24&type=chunk) [Revenue Concentration](index=10&type=section&id=Revenue%20Concentration) Revenue Concentration by Platform | Platform | Three months ended June 30, 2024 | Three months ended June 30, 2023 | Six months ended June 30, 2024 | Six months ended June 30, 2023 | | :------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Apple | 51.0 % | 55.4 % | 50.6 % | 55.3 % | | Google | 16.1 % | 18.9 % | 16.1 % | 18.8 % | | Facebook | 14.5 % | 16.9 % | 14.6 % | 17.7 % | Accounts Receivable Concentration by Platform | Platform | As of June 30, 2024 | As of December 31, 2023 | | :------- | :------------------ | :---------------------- | | Apple | 57.8 % | 59.3 % | | Xsolla | 11.9 % | 11.3 % | | Google | 9.5 % | 10.3 % | | Facebook | 8.4 % | 9.9 % | [Functional currency and translation of financial statements](index=10&type=section&id=Functional%20currency%20and%20translation%20of%20financial%20statements) - The company's functional currency is Korean Won (KRW), with subsidiaries using Euro (EUR) and U.S. Dollar (USD); consolidated financial statements are presented in USD[26](index=26&type=chunk) [Cash and cash equivalents](index=10&type=section&id=Cash%20and%20cash%20equivalents) - Cash and cash equivalents include money market funds and short-term investments with maturities of three months or less when acquired, held by high credit quality financial institutions[28](index=28&type=chunk) [Financial instruments and concentration of credit risk](index=10&type=section&id=Financial%20instruments%20and%20concentration%20of%20credit%20risk) - Financial instruments exposing the company to credit risk primarily include cash and cash equivalents, accounts receivable, and short-term investments[29](index=29&type=chunk) - Apple, Facebook, and Google are significant distribution, marketing, and payment platforms, accounting for a substantial portion of revenue and accounts receivable[30](index=30&type=chunk) [Note 2: Revenue from Contracts with Customers](index=11&type=section&id=Note%202:%20Revenue%20from%20Contracts%20with%20Customers) This note details revenue recognition policies for social and mobile apps, including consumption-based virtual currency and subscription revenue, with disaggregated data - Revenue from player purchases of virtual currency is recognized based on the consumption of this currency, determined by analyzing historical play and purchase behavior[33](index=33&type=chunk) - A small portion of revenue is generated from prepaid, non-refundable monthly subscription services, recognized on a daily basis[34](index=34&type=chunk) Disaggregation of Revenue by Platform (in thousands) | Platform | Three months ended June 30, 2024 | Three months ended June 30, 2023 | Six months ended June 30, 2024 | Six months ended June 30, 2023 | | :------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Mobile | $60,959 | $62,468 | $121,540 | $125,798 | | Web | $27,277 | $12,719 | $54,839 | $26,985 | | Total | $88,236 | $75,187 | $176,379 | $152,783 | Disaggregation of Revenue by Geographical Location (in thousands) | Region | Three months ended June 30, 2024 | Three months ended June 30, 2023 | Six months ended June 30, 2024 | Six months ended June 30, 2023 | | :------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | U.S. | $69,943 | $65,629 | $140,129 | $133,831 | | Canada | $5,065 | $5,006 | $9,820 | $10,020 | | United Kingdom | $6,374 | $582 | $13,154 | $1,137 | | International-other | $6,854 | $3,970 | $13,276 | $7,795 | | Total | $88,236 | $75,187 | $176,379 | $152,783 | - Web platform revenue significantly increased by **114.47%** for the three months and **103.29%** for the six months ended June 30, 2024, year-over-year[35](index=35&type=chunk) - Revenue from the United Kingdom saw a substantial increase, growing from **$582 thousand** to **$6,374 thousand** for the three months ended June 30, 2024, and from **$1,137 thousand** to **$13,154 thousand** for the six months ended June 30, 2024[37](index=37&type=chunk) Contract Assets and Liabilities (in thousands) | Metric | As of June 30, 2024 | As of December 31, 2023 | | :----------------- | :------------------ | :---------------------- | | Contract assets | $533 | $756 | | Contract liabilities | $1,777 | $2,520 | [Note 3: Short-term investments](index=12&type=section&id=Note%203:%20Short-term%20investments) The company holds short-term investments in marketable securities, primarily fixed time deposits classified as trading, with gains or losses recognized in income - Short-term investments consist of fixed time deposits classified as trading, with gains or losses recognized in the Statements of Income[42](index=42&type=chunk) [Note 4: Goodwill and intangible assets](index=13&type=section&id=Note%204:%20Goodwill%20and%20intangible%20assets) This note details goodwill and intangible assets, including amortization, showing stable goodwill but significantly increased amortization expense year-over-year - There were no changes to the carrying amount of goodwill in the six months ended June 30, 2024, remaining at **$396,236 thousand**[44](index=44&type=chunk) Intangible Assets Carrying Amounts (in thousands) | Intangible Asset | Net amount (June 30, 2024) | Net amount (December 31, 2023) | | :----------------- | :------------------------- | :----------------------------- | | Goodwill | $396,236 | $396,704 | | Trademarks | $35,000 | $35,000 | | Customer relationships | $7,498 | $8,884 | | Purchased technology | $6,609 | $7,163 | | Software | $452 | $524 | | Total | $445,795 | $448,275 | Amortization Expense (in thousands) | Period | Amortization Expense | | :-------------------------------- | :------------------- | | Three months ended June 30, 2024 | $772.1 | | Three months ended June 30, 2023 | $4.2 | | Six months ended June 30, 2024 | $1,549.8 | | Six months ended June 30, 2023 | $8.2 | - Amortization expense increased significantly from **$4.2 thousand** to **$772.1 thousand** for the three months ended June 30, 2024, and from **$8.2 thousand** to **$1,549.8 thousand** for the six months ended June 30, 2024, year-over-year[44](index=44&type=chunk) [Note 5: Debt](index=13&type=section&id=Note%205:%20Debt) The company's debt consists of Senior Notes due to a related party, with the entire outstanding principal reclassified to long-term debt due to maturity extension Debt Components (in thousands) | Metric | As of June 30, 2024 | As of December 31, 2023 | | :----------------------------------------- | :------------------ | :---------------------- | | 4.60% Senior Notes due to related party | $35,992 | $38,778 | | Less: Short-term debt | $0 | $38,778 | | Total Long-term debt | $35,992 | $0 | - In May 2024, the maturity of the **4.60%** Senior Notes was extended by two years to May 27, 2026, resulting in the reclassification of the entire outstanding principal to long-term debt[46](index=46&type=chunk) [Note 6: Fair value measurements](index=13&type=section&id=Note%206:%20Fair%20value%20measurements) Financial instruments are measured at fair value, with cash equivalents as Level 1, short-term investments as Level 2, and senior notes valued using Level 3 estimates - Cash equivalents (money market funds and Korean government bonds) totaled **$269.2 million** as of June 30, 2024, classified as Level 1 in the fair value hierarchy[48](index=48&type=chunk) - Short-term investments (fixed time deposits or certificates of deposit with maturities >90 days) totaled **$70.0 million** as of June 30, 2024, classified as Level 2[48](index=48&type=chunk) - The fair value of senior notes (a Level 3 estimate) was approximately **$2.1 million** lower than face value as of June 30, 2024[49](index=49&type=chunk) [Note 7: Income taxes](index=14&type=section&id=Note%207:%20Income%20taxes) The company is subject to income taxes in multiple jurisdictions, with the effective tax rate decreasing to 21.4% for H1 2024 due to FDII benefit and notional interest deduction - The effective tax rate for the six months ended June 30, 2024, was **21.4%**, a decrease from **23.7%** in the prior year, mainly due to an increase in the FDII benefit and notional interest deduction[52](index=52&type=chunk) - The 2024 effective tax rate of **21.4%** is higher than the Korean statutory rate of **19%**, primarily due to foreign rate differential and state taxes[52](index=52&type=chunk) [Note 8: Net income per share](index=14&type=section&id=Note%208:%20Net%20income%20per%20share) Basic and diluted net income per share are calculated based on weighted-average common shares outstanding, with no potentially dilutive securities in either period - Basic and diluted net income per share are computed by dividing net income by the weighted-average number of common shares outstanding[53](index=53&type=chunk) - There were no potentially dilutive securities outstanding in either period presented, leading to identical basic and diluted EPS[53](index=53&type=chunk) [Note 9: Leases](index=14&type=section&id=Note%209:%20Leases) The company leases corporate office spaces, including related party leases, with operating lease costs decreasing for the six months ended June 30, 2024 - The company leases office spaces in Seattle, Washington (extended to June 2030), Swieqi, Malta (expires October 2024), and Seoul, Korea (sublease with DUG, expires September 2028)[54](index=54&type=chunk) Operating Lease Liabilities (in thousands) | Metric | As of June 30, 2024 | As of December 31, 2023 | | :-------------------------------------- | :------------------ | :---------------------- | | Total operating lease right-of-use asset, net | $6,660 | $7,130 | | Short-term operating lease liabilities | $1,362 | $3,157 | | Long-term operating lease liabilities | $5,472 | $4,420 | | Total operating lease liabilities | $6,834 | $7,577 | - Operating lease costs decreased from **$3,201 thousand** for the six months ended June 30, 2023, to **$1,369 thousand** for the six months ended June 30, 2024[55](index=55&type=chunk) [Note 10: Accumulated other comprehensive income](index=16&type=section&id=Note%2010:%20Accumulated%20other%20comprehensive%20income) Accumulated other comprehensive income decreased for both Q2 and H1 2024, primarily due to foreign currency translation losses, with minor offsetting pension adjustments Changes in Accumulated Other Comprehensive Income (AOCI) (in thousands) | Component | Balance at April 1, 2024 | Foreign Currency Translation Adjustments | Defined Benefit Pension Plan | Balance as of June 30, 2024 | | :---------------------------------------- | :----------------------- | :--------------------------------------- | :--------------------------- | :-------------------------- | | Three months ended June 30, 2024 | $17,095 | $(2,080) | $(29) | $14,986 | | Six months ended June 30, 2024 | $19,982 | $(5,103) | $107 | $14,986 | | Three months ended June 30, 2023 | $18,022 | $(166) | $49 | $17,905 | | Six months ended June 30, 2023 | $19,360 | $(1,347) | $(108) | $17,905 | - Foreign currency translation losses were **$(2,080) thousand** for the three months and **$(5,103) thousand** for the six months ended June 30, 2024[58](index=58&type=chunk)[59](index=59&type=chunk) [Note 11: Commitments and contingencies](index=16&type=section&id=Note%2011:%20Commitments%20and%20contingencies) This note outlines legal contingencies, including a settled class-action lawsuit, and details publishing and license agreements with DoubleU Games and IGT [Legal contingencies](index=16&type=section&id=Legal%20contingencies) - A class-action lawsuit filed in 2018 against DDI-US was settled in June 2023, with a final contribution of **$95.25 million** to the settlement fund[62](index=62&type=chunk) [Publishing and license agreements](index=17&type=section&id=Publishing%20and%20license%20agreements) - A new Game License Agreement with DoubleU Games, effective January 1, 2023, grants DDI a non-exclusive, worldwide license for certain social casino game titles, requiring royalty payments based on net sales[63](index=63&type=chunk) - DDI incurred **$2.1 million** in service fees for game maintenance and product planning services from DoubleU Games for the six months ended June 30, 2024[64](index=64&type=chunk) - Under an agreement with IGT, DDI pays royalty rates of **7.5%** for proprietary assets and **15%** for third-party game assets, with costs recognized in cost of revenue[65](index=65&type=chunk) - Costs incurred with IGT decreased from **$1.9 million** to **$0.6 million** for the three months and from **$3.9 million** to **$2.4 million** for the six months ended June 30, 2024, year-over-year[65](index=65&type=chunk) [Note 12: Related party transactions](index=17&type=section&id=Note%2012:%20Related%20party%20transactions) This note summarizes transactions with DoubleU Games, including expenses for IP, borrowings, and subleases, showing a shift in borrowings to long-term Summary of Expenses Charged by DoubleU Games (in thousands) | Expense Type | Three months ended June 30, 2024 | Three months ended June 30, 2023 | Six months ended June 30, 2024 | Six months ended June 30, 2023 | | :--------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Royalty expense | $622 | $698 | $1,241 | $1,450 | | Interest expense | $411 | $436 | $843 | $881 | | Rent expense | $323 | $307 | $657 | $624 | | Other expense | $1,194 | $38 | $2,319 | $135 | Amounts Due to DoubleU Games (in thousands) | Item | As of June 30, 2024 | As of December 31, 2023 | | :--------------------------------------------------- | :------------------ | :---------------------- | | 4.6% Senior Notes due to related party (current) | $0 | $38,778 | | 4.6% Senior Notes due to related party (long-term) | $35,992 | $0 | | Royalties and other expenses | $1,353 | $1,618 | | Short-term lease liability | $1,222 | $1,298 | | Accrued interest on 4.6% Senior Notes (current) | $0 | $9,501 | | Accrued interest on 4.6% Senior Notes (non-current) | $158 | $0 | | Long-term lease liability | $3,597 | $4,414 | - Other expenses charged by DoubleU Games increased significantly from **$38 thousand** to **$1,194 thousand** for the three months and from **$135 thousand** to **$2,319 thousand** for the six months ended June 30, 2024, year-over-year[66](index=66&type=chunk) [Note 13: Defined benefit pension plan](index=18&type=section&id=Note%2013:%20Defined%20benefit%20pension%20plan) The company operates a funded defined benefit pension plan in Korea, providing final wage-based benefits, with the total benefit obligation decreasing to $3.4 million - The company operates a funded defined benefit pension plan in Korea, providing final wage-based benefits to employees[69](index=69&type=chunk) - The total benefit obligation was **$3.4 million** as of June 30, 2024, a decrease from **$4.4 million** as of December 31, 2023[69](index=69&type=chunk) [Note 14: Acquisition](index=18&type=section&id=Note%2014:%20Acquisition) This note details the acquisition of SuprNation for $30.6 million, expanding the company into the i-Gaming market, contributing $16.2 million in revenue for H1 2024 - On October 31, 2023, the company acquired SuprNation, a European i-Gaming operator, for a total cash purchase price of **$30.6 million**, plus potential deferred payments[70](index=70&type=chunk) - The acquisition is expected to enable the company to expand into the i-Gaming market[70](index=70&type=chunk) - SuprNation contributed **$16.2 million** in revenue and a pre-tax loss of **$2.3 million** to the company's consolidated statement of operations for the six months ended June 30, 2024[71](index=71&type=chunk)

SEATTLE, July 23, 2024 (GLOBE NEWSWIRE) -- DoubleDown Interactive Co., Ltd. (NASDAQ: DDI) ("DoubleDown" or the "Company"), a leading developer and publisher of digital games on mobile and webbased platforms, announced today that it will release its 2024 second quarter financial results after the market closes on Monday, August 12, 2024, and host a conference call and simultaneous webcast at 5:00 p.m. ET (2:00 p.m. PT) that day. Both the call and webcast are open to the general public. On the call, DoubleDow ...