DoubleDown Interactive(DDI)

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DoubleDown Interactive(DDI) - 2023 Q2 - Quarterly Report
2023-05-09 16:00
Exhibit 99.2 DoubleDown Interactive Co., Ltd. Condensed Consolidated Financial Statements (unaudited) March 31, 2023 and March 31, 2022 | | | | Three months ended March 31, | | | --- | --- | --- | --- | --- | | | | 2023 | | 2022 | | Revenue | $ | 77,596 | $ | 85,486 | | Operating expenses: | | | | | | Cost of revenue (1) | | 25,719 | | 28,848 | | Sales and marketing(1) | | 16,045 | | 19,791 | | (1) Research and development | | 5,043 | | 4,680 | | (1) General and administrative | | 5,343 | | 5,270 | | Deprec ...
DoubleDown Interactive(DDI) - 2022 Q4 - Annual Report
2023-03-30 16:00
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington D.C. 20549 FORM 20-F (Mark One) ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to OR ☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF ...
DoubleDown Interactive(DDI) - 2022 Q4 - Earnings Call Transcript
2023-02-08 01:39
DoubleDown Interactive Co., Ltd. (NASDAQ:DDI) Q4 2022 Earnings Conference Call February 7, 2023 5:00 PM ET Company Participants Jeff Grampp - Investor Relations In Keuk Kim - Chief Executive Officer Joe Sigrist - Chief Financial Officer Conference Call Participants David Bain - B. Riley Aaron Lee - Macquarie Greg Gibas - Northland Capital Operator Good afternoon, and welcome to DoubleDown's Earnings Conference Call for the Financial Results for the Fourth Quarter and Full Year Ended December 31, 2022. My na ...
DoubleDown Interactive(DDI) - 2023 Q1 - Quarterly Report
2023-02-06 16:00
[Financial Performance Overview](index=1&type=section&id=Financial%20Performance%20Overview) [Fourth Quarter 2022 Performance Summary](index=1&type=section&id=Fourth%20Quarter%202022%20vs.%20Fourth%20Quarter%202021%20Summary) The company's Q4 2022 revenue declined, resulting in a significant net loss due to a large goodwill impairment charge Q4 2022 vs Q4 2021 Key Financials (in millions) | Metric | Q4 2022 | Q4 2021 | Change | | :--- | :--- | :--- | :--- | | Revenues | $76.2 | $86.3 | -11.7% | | Operating Costs | $321.4 | $62.7 | +412.6% | | Adjusted EBITDA | $24.7 | $25.8 | -4.3% | | Net Income (Loss) | ($194.4) | $17.4 | N/A | | Adjusted EBITDA Margin | 32.4% | 29.9% | +2.5 pts | - Operating costs surged primarily due to a **one-time, non-cash goodwill impairment of $269.9 million**[5](index=5&type=chunk) Q4 2022 vs Q4 2021 Key Operating Metrics | Metric | Q4 2022 | Q4 2021 | | :--- | :--- | :--- | | Average Revenue Per Daily Active User (ARPDAU) | $0.98 | $0.96 | | Average monthly revenue per payer | $227 | $216 | [Full Year 2022 Performance Summary](index=1&type=section&id=Full%20Year%202022%20vs.%20Full%20Year%202021%20Summary) Full-year 2022 performance was marked by lower revenue and a substantial net loss from litigation and impairment charges Full Year 2022 vs 2021 Key Financials (in millions) | Metric | FY 2022 | FY 2021 | Change | | :--- | :--- | :--- | :--- | | Revenues | $321.0 | $363.2 | -11.6% | | Operating Costs | $634.9 | $264.5 | +140.0% | | Adjusted EBITDA | $101.6 | $120.1 | -15.4% | | Net Income (Loss) | ($234.0) | $78.1 | N/A | | Adjusted EBITDA Margin | 31.6% | 33.1% | -1.5 pts | - Operating costs for FY 2022 were significantly impacted by two one-time charges: a **$141.75 million charge for the Benson class action settlement** and a **$269.9 million goodwill impairment**[5](index=5&type=chunk)[7](index=7&type=chunk) Full Year 2022 vs 2021 Key Operating Metrics | Metric | FY 2022 | FY 2021 | | :--- | :--- | :--- | | Average Revenue Per Daily Active User (ARPDAU) | $0.97 | $0.97 | | Average monthly revenue per payer | $226 | $218 | [Management Commentary & Outlook](index=2&type=section&id=Management%20Commentary%20%26%20Outlook) Management highlighted a resilient business model and outlined strategic growth initiatives, including acquisitions and new game launches - Management emphasizes the company's high-margin, capital-light business model, citing **solid cash flow** and **strong Adjusted EBITDA margins** in Q4[6](index=6&type=chunk) - Full-year 2022 revenue of $321.0 million represents **over 17% growth** compared to the pre-COVID period of full-year 2019, indicating customer retention[6](index=6&type=chunk) - Future growth drivers include the **acquisition of SuprNation** to enter the European i-Gaming market, the soft launch of the new game 'Spinning in Space', and additional game launches planned for 2023[6](index=6&type=chunk) - The company ended 2022 with a **strong cash position of over $150 million** (net of debt and the Benson settlement accrual)[6](index=6&type=chunk) [Detailed Financial Results](index=3&type=section&id=Detailed%20Financial%20Results) [Summary Operating Results](index=3&type=section&id=Summary%20Operating%20Results%20for%20Double%20Down%20Interactive%20(Unaudited)) This section presents a consolidated view of key financial and operational metrics for Q4 and the full year 2022 versus 2021 Key Performance Metrics (Q4 & FY 2022 vs 2021) | Metric | Q4 2022 | Q4 2021 | FY 2022 | FY 2021 | | :--- | :--- | :--- | :--- | :--- | | Revenue (millions) | $76.2 | $86.3 | $321.0 | $363.2 | | Net income (loss) (millions) | $(194.4) | $17.4 | $(234.0) | $78.1 | | Adjusted EBITDA (millions) | $24.7 | $25.8 | $101.6 | $120.1 | | Average MAUs (000s) | 2,084 | 2,432 | 2,247 | 2,444 | | ARPDAU | $0.98 | $0.96 | $0.97 | $0.97 | | Payer conversion | 5.4% | 5.5% | 5.3% | 5.7% | [Fourth Quarter 2022 Financial Results (Detailed)](index=3&type=section&id=Fourth%20Quarter%202022%20Financial%20Results) Q4 revenue declined 12% while operating expenses surged due to a non-cash goodwill impairment, leading to a net loss - Q4 revenue **decreased by 12% YoY to $76.2 million**, primarily due to normalization of player activity post-pandemic and economic concerns[9](index=9&type=chunk) - The **413% increase in operating expenses** was driven by a non-cash goodwill impairment, which has no fundamental impact on the business[10](index=10&type=chunk) - Net cash used in operating activities was $20.9 million; excluding a **$50 million litigation settlement payment**, operating cash flow would have been $29.1 million[13](index=13&type=chunk) [Full Year 2022 Financial Results (Detailed)](index=3&type=section&id=Full%20Year%202022%20Financial%20Results) Full-year revenue fell 12%, and a net loss was recorded due to significant one-time litigation and impairment charges - Full-year revenue **declined 12% to $321.0 million** due to post-COVID normalization and macroeconomic factors[14](index=14&type=chunk) - Operating expenses increased 140% due to two one-time, non-recurring charges: a **$141.75 million litigation settlement** and a **$269.9 million goodwill impairment**[15](index=15&type=chunk) - Net cash from operating activities for FY 2022 was $50.8 million; excluding the **$50 million Benson settlement payment**, it would have been $100.8 million[18](index=18&type=chunk) [Non-GAAP Financial Measures](index=5&type=section&id=Non-GAAP%20Financial%20Measures) [Reconciliation of Net Income to Adjusted EBITDA](index=5&type=section&id=Use%20and%20Reconciliation%20of%20Non-GAAP%20Financial%20Measures) This section provides a detailed reconciliation from GAAP net income to the non-GAAP measure of Adjusted EBITDA for 2022 and 2021 Reconciliation of Net Income (Loss) to Adjusted EBITDA (in millions) | Line Item | Q4 2022 | Q4 2021 | FY 2022 | FY 2021 | | :--- | :--- | :--- | :--- | :--- | | **Net income (loss)** | **$(194.4)** | **$17.4** | **$(234.0)** | **$78.1** | | Income tax (expense) benefit | 60.3 | (5.8) | 71.2 | (22.5) | | Depreciation and amortization | 0.1 | 2.2 | 3.8 | 17.9 | | Loss contingency | — | — | 141.8 | 3.5 | | Impairment of intangibles | 269.9 | — | 269.9 | — | | Interest expense | 0.5 | 0.5 | 1.8 | 2.0 | | Other adjustments | 8.8 | 0.0 | (10.7) | (3.9) | | **Adjusted EBITDA** | **$24.7** | **$25.8** | **$101.6** | **$120.1** | [Consolidated Financial Statements](index=7&type=section&id=Consolidated%20Financial%20Statements) [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet reflects a decrease in total assets due to goodwill impairment and an increase in liabilities from a loss contingency Selected Balance Sheet Items (in thousands) | Account | Dec 31, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | Cash and cash equivalents | $217,352 | $242,060 | | Goodwill | $379,072 | $633,965 | | **Total Assets** | **$792,052** | **$969,808** | | Loss Contingency (Current) | $95,250 | $— | | **Total Liabilities** | **$165,826** | **$105,930** | | **Total Shareholders' Equity** | **$626,226** | **$863,878** | [Condensed Consolidated Statement of Income](index=8&type=section&id=Condensed%20Consolidated%20Statement%20of%20Income%20and%20Comprehensive%20Income) The income statement details the significant operating loss for 2022, driven by large impairment and loss contingency expenses Full Year 2022 vs 2021 Income Statement (in thousands) | Account | FY 2022 | FY 2021 | | :--- | :--- | :--- | | Revenue | $321,027 | $363,205 | | Cost of revenue | $109,305 | $126,612 | | Sales and marketing | $71,911 | $78,821 | | Loss contingency | $141,750 | $3,500 | | Impairment of goodwill | $269,893 | $— | | **Total operating expenses** | **$634,900** | **$264,472** | | **Operating income (loss)** | **$(313,873)** | **$98,733** | | **Net income (loss)** | **$(233,978)** | **$78,108** | | **Diluted EPS** | **$(94.43)** | **$33.91** | [Condensed Consolidated Statement of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) Operating cash flow decreased in 2022 primarily due to a $50 million litigation settlement payment Cash Flow Summary (in thousands) | Account | FY 2022 | FY 2021 | | :--- | :--- | :--- | | Net cash from operating activities | $50,791 | $96,105 | | Net cash (used in) investing activities | $(67,830) | $(1,806) | | Net cash from financing activities | $— | $86,041 | | Net (decrease) increase in cash | $(24,708) | $178,872 | | **Cash at end of period** | **$217,352** | **$242,060** | - The reconciliation from net loss to operating cash flow shows significant non-cash add-backs for **impairment ($269.9 million)** and a cash use for **loss contingency ($91.75 million)**[33](index=33&type=chunk) [Other Information](index=4&type=section&id=Other%20Information) [Conference Call Information](index=4&type=section&id=Conference%20Call) The company provided details for its Q4 and full-year 2022 earnings conference call and webcast held on February 7, 2023 - A conference call to discuss the financial results was scheduled for **February 7, 2023**, at 5:00 p.m. Eastern Time[19](index=19&type=chunk) - Access details for the call and webcast were provided, with a replay to be made available on the company's Investor Relations website[20](index=20&type=chunk)[21](index=21&type=chunk) [About the Company](index=4&type=section&id=About%20DoubleDown%20Interactive) DoubleDown Interactive is a developer and publisher of digital social casino games for casual players on mobile and web platforms - DoubleDown Interactive is a leading developer of digital games on mobile and web platforms, focusing on **casual players**[22](index=22&type=chunk) - The company's main product is the flagship title, **DoubleDown Casino**, which provides an online social casino experience[22](index=22&type=chunk)
DoubleDown Interactive(DDI) - 2022 Q3 - Earnings Call Transcript
2022-11-13 17:19
DoubleDown Interactive Co., Ltd. (NASDAQ:DDI) Q3 2022 Earnings Conference Call November 8, 2022 5:00 PM ET Company Participants Jeff Grampp - Gateway Group In Keuk Kim - CEO Joseph Sigrist - CFO Conference Call Participants Aaron Lee - Macquarie Greg Gibas - Northland Securities Operator Good afternoon, and welcome to DoubleDown's Earnings Conference Call for the Financial Results for the Third Quarter Ended September 30, 2022. My name is Lauren, and I will be your operator this afternoon. Prior to this cal ...
DoubleDown Interactive(DDI) - 2022 Q3 - Quarterly Report
2022-11-07 16:00
Exhibit 99.2 DoubleDown Interactive Co., Ltd. Condensed Consolidated Financial Statements (unaudited) September 30, 2022 and September 30, 2021 Contents Consolidated Financial Statements as of and for the three and nine months ended September 30, 2022 and 2021 Condensed Consolidated Statements of Income and Comprehensive Income F-2 Condensed Consolidated Balance Sheets F-3 Condensed Consolidated Statements of Changes in Shareholders' Equity F-4 Condensed Consolidated Statements of Cash Flows F-5 Notes to Co ...
DoubleDown Interactive(DDI) - 2022 Q2 - Earnings Call Transcript
2022-08-12 20:42
Financial Data and Key Metrics Changes - Revenue for Q2 2022 decreased by 13.5% to $80.6 million from $93.2 million in Q2 2021 [20] - Adjusted EBITDA for Q2 2022 was $26.1 million, down from $31.1 million in Q2 2021, with an adjusted EBITDA margin of 32.4%, down from 33.4% [30] - Net income for Q2 2022 reflected a loss of $34.1 million, compared to net income of $18.4 million in Q2 2021 [28] - Cash flow from operations was $21.1 million, slightly down from $21.8 million in Q2 2021 [33] - Cash and cash equivalents at the end of Q2 2022 were $284.4 million, up from $268.2 million at the end of Q1 2022 [34] Business Line Data and Key Metrics Changes - Average revenue per daily active user (ARPDAU) was $0.95 in Q2 2022, down from $0.99 in Q2 2021 [22] - Average monthly revenue per payer increased to $226 in Q2 2022 from $218 in Q2 2021 [22] - Payer conversion rate decreased to 5.2% in Q2 2022 from 5.8% in Q2 2021 [23] Market Data and Key Metrics Changes - Revenue in the first half of 2022 exceeded 2019 levels by over 20% [10] - The company noted that global inflation and economic slowdown concerns are impacting user spending [12] Company Strategy and Development Direction - The company plans to diversify revenue and growth opportunities by developing new titles outside the social casino segment [18] - Focus on acquiring new players outside North America, particularly in the Android market [14] - The company is targeting strategic M&A opportunities to augment its business [38] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that inflation and economic concerns are affecting player spending but noted that engaged players continue to invest [50] - The company remains optimistic about the opportunities in the M&A market due to more reasonable valuations [60] - Management emphasized the flexibility of their business model to adapt to changing industry and macroeconomic conditions [36] Other Important Information - Total operating expenses for Q2 2022 increased by 71% to $128.6 million, primarily due to a non-cash accrual related to legal proceedings [23] - The company has a low capital obligation and minimal debt, which supports its strong cash flow position [37] Q&A Session Summary Question: Inquiry about the Benson legal case and reserve amounts - Management clarified that they cannot comment on IGT's reserve decisions and noted that they are co-defendants in the complaint [42][44] Question: M&A strategy and target categories - Management indicated they are open to various categories, particularly in hyper-casual gaming and iGaming [46][48] Question: Impact of inflation on player spending - Management noted that inflation concerns are affecting lower-value payers more than engaged players, who continue to spend [64] Question: Trends throughout the quarter - Management stated that trends were consistent throughout the quarter, with typical seasonality observed [63]
DoubleDown Interactive(DDI) - 2022 Q2 - Quarterly Report
2022-08-08 16:00
Exhibit 99.2 Consolidated Financial Statements as of and for the three and six months ended June 30, 2022 and 2021 Condensed Consolidated Statements of Income and Comprehensive Income F-2 Condensed Consolidated Balance Sheets F-3 Condensed Consolidated Statements of Changes in Shareholders' Equity F-4 Condensed Consolidated Statements of Cash Flows F-5 Notes to Condensed Consolidated Financial Statements F-6 DoubleDown Interactive Co., Ltd. Condensed Consolidated Financial Statements (unaudited) June 30, 20 ...
DoubleDown Interactive(DDI) - 2022 Q1 - Earnings Call Transcript
2022-05-13 18:21
DoubleDown Interactive Co., Ltd. (NASDAQ:DDI) Q1 2022 Earnings Conference Call May 10, 2022 5:00 PM ET Â Company Participants Jeff Grampp - Investor Relations In Keuk Kim - Chief Executive Officer Joe Sigrist - Chief Financial Officer Conference Call Participants Greg Gibas - Northland Securities David Bain - B. Riley Operator Good afternoon, ladies and gentlemen and welcome to DoubleDown's Earnings Conference Call for the Financial Results for the First Quarter Ended March 31, 2022. My name is Olivia and I ...
DoubleDown Interactive(DDI) - 2022 Q1 - Quarterly Report
2022-05-09 16:00
Exhibit 99.1 DoubleDown Interactive Reports First Quarter 2022 Results SEATTLE, WASHINGTON – May 10, 2022 — DoubleDown Interactive (NASDAQ: DDI) ("DoubleDown" or the "Company"), a leading developer and publisher of digital social casino games, today reported its unaudited financial results for the first quarter ended March 31, 2022. First Quarter 2022 Summary vs. First Quarter 2021 • Revenues decreased from $96.7 million in the first quarter of 2021 to $85.5 million in the first quarter of 2022. • Adjusted ...