DoubleDown Interactive Co., Ltd (NASDAQ:DDI) Q2 2023 Earnings Conference Call August 8, 2023 5:00 PM ET Company Participants Richard Land - Investor Relations In Keuk Kim - Chief Executive Officer Joe Sigrist - Chief Financial Officer Conference Call Participants Aaron Lee - Macquarie David Bain - B. Riley Greg Gibas - Northland Securities Bryant Riley - B. Riley Operator Good afternoon and welcome to DoubleDown Interactive’s Earnings Conference Call for the Second Quarter ended June 20, 2023. My name is Se ...

DoubleDown Interactive Co., Ltd. (NASDAQ:DDI) Q1 2023 Earnings Conference Call May 10, 2023 5:00 PM ET Company Participants Richard Land - Investor Relations In Keuk Kim - Chief Executive Officer Joe Sigrist - Chief Financial Officer Conference Call Participants David Bain - B. Riley Jeff Henriksen - Thorpe Abbotts Capital Aaron Lee - Macquarie Greg Gibas - Northland Capital Operator Good afternoon and welcome to DoubleDown Interactive's Earnings Conference Call for the First Quarter ended March 31, 2023. M ...

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 ...

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 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 ...

[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 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 ...

[Condensed Consolidated Financial Statements](index=2&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the company's financial performance and position, highlighting significant losses, increased liabilities due to a loss contingency, and changes in cash flows and equity for the periods presented [Condensed Consolidated Statements of Income and Comprehensive Income](index=2&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20and%20Comprehensive%20Income) For the three and nine months ended September 30, 2022, DoubleDown Interactive Co., Ltd. reported significant net losses and operating losses, primarily driven by a substantial loss contingency, with revenue also decreasing and earnings per share turning negative | Metric (in thousands of U.S. Dollars, except per share amounts) | Three Months Ended Sep 30, 2022 | Three Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2021 | |:--------------------------------------------------------------|:--------------------------------|:--------------------------------|:-------------------------------|:-------------------------------| | Revenue | $78,801 | $87,007 | $244,857 | $276,902 | | Loss Contingency | $70,250 | — | $141,750 | $3,500 | | Total operating expenses | $124,140 | $59,216 | $313,496 | $201,759 | | Operating income (loss) | $(45,339) | $27,791 | $(68,639) | $75,143 | | Net income (loss) | $(23,999) | $22,833 | $(39,561) | $60,671 | | Basic Earnings per share | $(9.69) | $9.91 | $(15.97) | $27.03 | | Diluted Earnings per share | $(9.69) | $9.91 | $(15.97) | $27.03 | - The significant increase in operating expenses and the resulting operating loss and net loss for both the three and nine months ended September 30, 2022, were primarily driven by a substantial Loss Contingency of **$70,250 thousand** and **$141,750 thousand**, respectively, compared to minimal amounts in the prior year[3](index=3&type=chunk) [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of September 30, 2022, the company's total assets increased, primarily due to a rise in cash and cash equivalents, while total liabilities saw a substantial increase mainly attributable to a significant loss contingency accrual, leading to a decrease in total shareholders' equity | Metric (in thousands of U.S. Dollars) | September 30, 2022 | December 31, 2021 | |:--------------------------------------|:-------------------|:------------------| | Cash and cash equivalents | $310,468 | $242,060 | | Total current assets | $338,031 | $270,752 | | Total assets | $1,029,990 | $969,808 | | Loss Contingency | $145,250 | — | | Total current liabilities | $171,404 | $20,804 | | Total liabilities | $216,945 | $105,930 | | Total shareholders' equity | $813,045 | $863,878 | - The significant increase in total liabilities from **$105,930 thousand** at December 31, 2021, to **$216,945 thousand** at September 30, 2022, is primarily due to the recognition of a **$145,250 thousand** Loss Contingency[7](index=7&type=chunk) [Condensed Consolidated Statements of Changes in Shareholders' Equity](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Shareholders'%20Equity) Shareholders' equity decreased for the nine months ended September 30, 2022, primarily due to a net loss and negative foreign currency translation adjustments, partially offset by a capital reserve reallocation that shifted funds from additional paid-in capital to retained earnings | Metric (in thousands of U.S. Dollars) | As of January 1, 2022 | As of September 30, 2022 | |:--------------------------------------|:----------------------|:-------------------------| | Common stock | $21,198 | $21,198 | | Additional paid-in-capital | $671,831 | $619,470 | | Accumulated other comprehensive income| $23,033 | $11,761 | | Retained earnings | $147,816 | $160,616 | | Total shareholders' equity | $863,878 | $813,045 | - A capital reserve reallocation of **$52,361 thousand** occurred during the nine months ended September 30, 2022, decreasing additional paid-in capital and increasing retained earnings[11](index=11&type=chunk) - Net loss of **$39,561 thousand** and a foreign currency translation loss of **$11,087 thousand** significantly impacted shareholders' equity for the nine months ended September 30, 2022[11](index=11&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended September 30, 2022, net cash flows from operating activities decreased compared to the prior year, despite a large adjustment for loss contingency, with investing activities showing a net outflow and financing activities having no cash flow, resulting in a lower net increase in cash and cash equivalents | Metric (in thousands of U.S. Dollars) | Nine Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2021 | |:--------------------------------------|:-------------------------------|:-------------------------------| | Net Income (loss) | $(39,561) | $60,671 | | Loss Contingency adjustment | $141,750 | $3,500 | | Net cash flows from operating activities | $71,696 | $77,584 | | Net cash flows (used in) investing activities | $(296) | $(125) | | Net cash flows from (used in) financing activities | — | $86,452 | | Net increase (decrease) in cash and cash equivalents | $68,408 | $159,875 | | Cash and cash equivalents at end of period | $310,468 | $223,062 | - Operating cash flows for the nine months ended September 30, 2022, were significantly influenced by a **$141,750 thousand** adjustment for loss contingency, offsetting the reported net loss[15](index=15&type=chunk) - Investing activities for the nine months ended September 30, 2022, included substantial purchases (**$366,449 thousand**) and sales (**$366,293 thousand**) of short-term investments, resulting in a net outflow of **$296 thousand**[15](index=15&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=6&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed disclosures on the company's business, revenue recognition, financial instruments, goodwill, debt, fair value measurements, income taxes, earnings per share, leases, comprehensive income, commitments, contingencies, and related party transactions [Note 1: Description of business](index=6&type=section&id=Note%201%3A%20Description%20of%20business) DoubleDown Interactive Co., Ltd. (DDI) is an interactive entertainment studio specializing in digital gaming content, primarily through its DDI-US subsidiary, controlled by DoubleU Games (67.1% ownership), which completed an IPO in September 2021, raising approximately $86.5 million, with a significant capital reserve reallocation of $52 million approved in August 2022, and facing concentration risk with major platforms - DoubleDown Interactive Co., Ltd. (DDI) was incorporated in 2008 in Seoul, Korea, and is focused on developing and publishing casual games and mobile applications, with **DDI-US**, acquired in 2017 for approximately **$825 million**, being the primary revenue-generating entity[17](index=17&type=chunk) - DoubleU Games Co., Ltd. (DUG) is the controlling shareholder, holding **67.1%** of DDI's outstanding shares, while STIC Special Situation Private Equity Fund holds **20.2%**, and IPO participants hold **12.7%**[17](index=17&type=chunk) - DDI completed its Initial Public Offering (IPO) on **September 2, 2021**, selling **5,263,000** American Depositary Shares (ADSs) at **$18.00** per ADS, generating net proceeds of approximately **$86.5 million**[19](index=19&type=chunk) - On **August 30, 2022**, a capital reserve reallocation of **₩70 billion (US$52 million)** was approved, pursuant to Article 461-2 of the Korean Commercial Code[26](index=26&type=chunk) Revenue and Accounts Receivable Concentration by Platform | Platform | Three Months Ended Sep 30, 2022 (Revenue) | Three Months Ended Sep 30, 2021 (Revenue) | Nine Months Ended Sep 30, 2022 (Revenue) | Nine Months Ended Sep 30, 2021 (Revenue) | As of Sep 30, 2022 (A/R) | As of Dec 31, 2021 (A/R) | |:---------|:------------------------------------------|:------------------------------------------|:-----------------------------------------|:-----------------------------------------|:-------------------------|:-------------------------| | Apple | 54.1% | 52.1% | 54.2% | 51.3% | 56.8% | 55.6% | | Facebook | 24.2% | 25.6% | 24.2% | 26.2% | 22.7% | 23.7% | | Google | 18.6% | 19.1% | 18.7% | 19.2% | 17.2% | 17.5% | [Note 2: Revenue from Contracts with Customers](index=8&type=section&id=Note%202%3A%20Revenue%20from%20Contracts%20with%20Customers) DDI recognizes revenue from player purchases of virtual currency in its free-to-play games based on the consumption of this currency, which is treated as a consumable good, with revenue disaggregated by platform (mobile and web) and geographical location (U.S. and International), where mobile and U.S. players contribute the majority of revenue, and contract liabilities represent deferred revenue for unconsumed virtual currency - Revenue from player purchases of virtual currency is recognized based on its consumption during gameplay, as virtual currency is considered a consumable good that cannot be redeemed for cash[32](index=32&type=chunk)[33](index=33&type=chunk) Revenue Disaggregation by Platform (in thousands) | Platform | Three Months Ended Sep 30, 2022 | Three Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2021 | |:---------|:--------------------------------|:--------------------------------|:-------------------------------|:-------------------------------| | Mobile | $59,150 | $63,676 | $184,033 | $200,997 | | Web | $19,651 | $23,331 | $60,824 | $75,905 | | Total | $78,801 | $87,007 | $244,857 | $276,902 | Revenue Disaggregation by Geographical Location (in thousands) | Location | Three Months Ended Sep 30, 2022 | Three Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2021 | |:--------------|:--------------------------------|:--------------------------------|:-------------------------------|:-------------------------------| | U.S. | $70,044 | $76,047 | $214,394 | $240,141 | | International | $8,757 | $10,960 | $30,463 | $36,761 | | Total | $78,801 | $87,007 | $244,857 | $276,902 | Contract Assets and Liabilities (in thousands) | Metric | As of September 30, 2022 | As of December 31, 2021 | |:-------------------|:-------------------------|:------------------------| | Contract assets | $650 | $674 | | Contract liabilities | $2,166 | $2,246 | [Note 3: Short-term investments](index=9&type=section&id=Note%203%3A%20Short-term%20investments) The company held marketable securities, primarily bonds, for trading purposes, all of which were sold and converted to cash as of September 30, 2022 - The Company held marketable securities, primarily bonds, with the intention of selling them within 3-6 months, with gains or losses from these trading securities recognized in the Statements of Income[39](index=39&type=chunk) - As of **September 30, 2022**, all short-term investments were sold and converted to cash[39](index=39&type=chunk) [Note 4: Goodwill and intangible assets](index=9&type=section&id=Note%204%3A%20Goodwill%20and%20intangible%20assets) Goodwill remained unchanged for the three months ended September 30, 2022, while intangible assets, primarily trademarks, decreased slightly due to ongoing amortization of purchased technology and software, with customer relationships and development costs fully amortized - There were no changes to the carrying amount of goodwill in the **three months ended September 30, 2022**[40](index=40&type=chunk) Intangible Assets (in thousands) | Intangible Asset | Useful life | Gross amount (Sep 30, 2022) | Accum. Amort (Sep 30, 2022) | Net Amount (Sep 30, 2022) | Gross amount (Dec 31, 2021) | Accum. Amort (Dec 31, 2021) | Net Amount (Dec 31, 2021) | |:---------------------|:------------|:----------------------------|:----------------------------|:--------------------------|:----------------------------|:----------------------------|:--------------------------| | Trademarks | indefinite | $50,000 | $— | $50,000 | $50,000 | $— | $50,000 | | Customer relationships | 4 years | $75,000 | $(75,000) | $— | $75,000 | $(75,000) | $— | | Purchased technology | 5 years | $45,423 | $(45,423) | $— | $45,423 | $(41,811) | $3,612 | | Development costs | 3 years | $9,486 | $(9,486) | $— | $9,486 | $(9,486) | $— | | Software | 4 years | $2,452 | $(2,404) | $48 | $2,463 | $(2,396) | $67 | | Total | | $182,361 | $(132,313) | $50,048 | $182,372 | $(128,693) | $53,679 | Amortization Expense (in thousands) | Period | Three Months Ended Sep 30, 2022 | Three Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2021 | |:-----------------------|:--------------------------------|:--------------------------------|:-------------------------------|:-------------------------------| | Amortization Expense | $3.7 | $2,319 | $3,624 | $15,573 | [Note 5: Debt](index=10&type=section&id=Note%205%3A%20Debt) The company has 4.60% Senior Notes due to a related party in 2024, with an outstanding balance of $34.8 million as of September 30, 2022 - The company has **4.60%** Senior Notes due to a related party in **2024**, with interest and principal due in full at maturity (**May 27, 2024**)[41](index=41&type=chunk) 4.60% Senior Notes Due to Related Party (in thousands) | Metric | As of September 30, 2022 | As of December 31, 2021 | |:--------------------------------------|:-------------------------|:------------------------| | 4.60% Senior Notes due to related party | $34,848 | $42,176 | | Total Long-term debt | $34,848 | $42,176 | [Note 6: Fair value measurements](index=10&type=section&id=Note%206%3A%20Fair%20value%20measurements) The fair values of short-term financial instruments approximate their carrying values, with cash equivalents, primarily money market funds, totaling $310.5 million as of September 30, 2022, and the fair value of senior notes also approximating their carrying value - The carrying values of accounts receivable, prepaid expenses, other current assets, accounts payable, and accrued liabilities approximate their fair values due to their short-term nature[43](index=43&type=chunk) - Cash equivalents (Level 1 estimate) were comprised of money market funds totaling **$310.5 million** as of **September 30, 2022**[44](index=44&type=chunk) - The fair value of senior notes (a Level 3 estimate) approximates carrying value due to the nature of the instruments and the lack of meaningful change to the company's credit profile[45](index=45&type=chunk) [Note 7: Income taxes](index=10&type=section&id=Note%207%3A%20Income%20taxes) The company's effective tax rate for the three months ended September 30, 2022, was 17.0%, lower than the prior year, primarily due to a discrete tax provision and valuation allowance release related to a significant foreign currency exchange gain, while for the nine months, the effective tax rate was 21.6%, similar to the prior year, influenced by various factors including foreign rate differential, FDII deduction, and research tax credits - The income tax benefit of **$4.9 million** for the three months ended September 30, 2022, reflects an effective tax rate of **17.0%**, a decrease from **23.9%** in the prior year, primarily due to a discrete tax provision and offsetting valuation allowance release of **$3.2 million** related to a significant foreign currency exchange gain[48](index=48&type=chunk) - The income tax benefit of **$10.9 million** for the nine months ended September 30, 2022, reflects an effective tax rate of **21.6%**, similar to the prior year, which is higher than the Korean statutory rate of **20%** due to factors like foreign rate differential, FDII deduction, research tax credits, withholding taxes, state taxes, and a valuation allowance[49](index=49&type=chunk) - The company has provided a valuation allowance against net deferred tax assets that are not more likely than not to be realized[47](index=47&type=chunk) [Note 8: Net Income per share](index=11&type=section&id=Note%208%3A%20Net%20Income%20per%20share) Basic and diluted net income per share are calculated by dividing net income by the weighted-average number of common shares outstanding, with no potentially dilutive securities outstanding in either period presented - Basic net income per share is computed by dividing net income by the weighted-average number of common shares outstanding, while diluted net income per share includes dilutive common share equivalents[51](index=51&type=chunk) - There were no potentially dilutive securities outstanding in either period presented[51](index=51&type=chunk) [Note 9: Leases](index=11&type=section&id=Note%209%3A%20Leases) The company leases corporate office space in Seattle, Washington (expiring October 2024) and Seoul, Korea (subleased from parent, expiring September 2023), with total operating lease right-of-use assets and liabilities decreasing from December 31, 2021, to September 30, 2022, and cash paid for operating lease liabilities remaining consistent at $2.4 million for the nine months ended September 30, 2022 and 2021 - The company is a lessee for corporate office space in Seattle, Washington (lease expires **October 2024**) and Seoul, Korea (sublease from parent, expires **September 2023**)[52](index=52&type=chunk)[53](index=53&type=chunk) Operating Lease Information (in thousands) | Metric | As of September 30, 2022 | As of December 31, 2021 | |:----------------------------------------|:-------------------------|:------------------------| | Operating lease right-of-use asset | $5,241 | $7,764 | | Total operating lease right-of-use asset, net | $4,454 | $6,830 | | Short-term operating lease liabilities | $3,138 | $3,076 | | Long-term operating lease liabilities | $2,103 | $4,688 | | Total operating lease liabilities | $5,241 | $7,764 | - Cash paid for amounts included in the measurement of operating lease liabilities was **$2.4 million** for both the nine months ended September 30, 2022, and September 30, 2021[54](index=54&type=chunk) [Note 10: Accumulated other comprehensive income](index=11&type=section&id=Note%2010%3A%20Accumulated%20other%20comprehensive%20income) Accumulated other comprehensive income (AOCI) decreased significantly for the nine months ended September 30, 2022, primarily due to substantial foreign currency translation losses, partially offset by minor pension adjustments, with foreign currency translation gains/losses not tax-effected as they are considered permanently reinvested Changes in Accumulated Other Comprehensive Income (AOCI) by Component (in thousands) | Component | Balance at Jan 1, 2022 | Foreign Currency Translation Gain/(Loss) | Actuarial Gain/(Loss), Net of Tax | Balance as of Sep 30, 2022 | |:----------------------------------------|:-----------------------|:-----------------------------------------|:----------------------------------|:---------------------------| | Currency Translation Adjustments | $24,311 | $(11,087) | — | $13,224 | | Defined Benefit Pension Plan | $(1,278) | — | $(185) | $(1,463) | | Total | $23,033 | $(11,087) | $(185) | $11,761 | - The company does not tax effect foreign currency translation gains/(losses) because such gains/(losses) are determined to be permanently reinvested[56](index=56&type=chunk) [Note 11: Commitments and contingencies](index=12&type=section&id=Note%2011%3A%20Commitments%20and%20contingencies) The company is involved in a significant class-action lawsuit (Benson) regarding the legality of its social casino games in Washington State, with a proposed class-wide settlement of $415 million pending court approval, where DDI-US contributes $145.25 million and IGT contributes $269.75 million, leading to an additional charge of $70.25 million in Q3 2022, bringing the total accrued loss contingency to $145.25 million, and DDI also has licensing agreements with DoubleU Games and IGT for game development and distribution - A class-action lawsuit (Benson) was filed on **April 12, 2018**, against DDI-US, alleging that the company's social casino games are not legal in the State of **Washington**[57](index=57&type=chunk) - On **August 29, 2022**, a proposed class-wide settlement for **$415,000,000** was stipulated with DoubleDown Interactive, LLC and IGT, pending final court approval, with DoubleDown contributing **$145.25 million** and IGT contributing **$269.75 million** to the settlement fund[61](index=61&type=chunk) - The company recorded an additional charge of **$70.25 million** in the **third quarter of 2022**, reflecting the incremental charge to the loss contingency, bringing the aggregate accrual to **$145.25 million**[62](index=62&type=chunk) - DDI has an exclusive license agreement with DoubleU Games to develop and distribute certain social casino game titles, requiring royalty payments[63](index=63&type=chunk) - DDI has a Game Development, Distribution, and Services agreement with IGT, paying royalty rates of **7.5%** for proprietary assets and **15%** for third-party game assets, plus a monthly porting fee[64](index=64&type=chunk) Costs Incurred for IGT Agreement (in thousands) | Period | Three Months Ended Sep 30, 2022 | Three Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2021 | |:-----------------------|:--------------------------------|:--------------------------------|:-------------------------------|:-------------------------------| | Costs incurred | $2,200 | $2,700 | $7,200 | $8,700 | [Note 12: Related party transactions](index=14&type=section&id=Note%2012%3A%20Related%20party%20transactions) The company engages in various transactions with its parent company, DoubleU Games (DUG), including royalty, interest, and rent expenses, with amounts due to DUG encompassing senior notes, royalties, and lease liabilities Summary of Expenses Charged by DoubleU Games (in thousands) | Expense Type | Three Months Ended Sep 30, 2022 | Three Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2021 | |:-------------------|:--------------------------------|:--------------------------------|:-------------------------------|:-------------------------------| | Royalty expense | $832 | $1,168 | $2,522 | $3,327 | | Interest expense | $431 | $501 | $1,356 | $1,521 | | Rent expense | $300 | $345 | $955 | $1,056 | | Other expense | $59 | $39 | $173 | $136 | Amounts Due to DoubleU Games (DUG) (in thousands) | Metric | As of September 30, 2022 | As of December 31, 2021 | |:--------------------------------------|:-------------------------|:------------------------| | 4.6% Senior Notes with related party | $34,848 | $42,176 | | Royalties and other expenses | $342 | $511 | | Short-term lease liability | $1,168 | $1,309 | | Accrued interest on 4.6% Senior Notes | $6,532 | $6,454 | | Long-term lease liability | $5 | $1,078 | [Note 13: Defined benefit pension plan](index=14&type=section&id=Note%2013%3A%20Defined%20benefit%20pension%20plan) The company operates a funded defined benefit pension plan for its employees in Seoul, Korea, with a total benefit obligation of $3.4 million as of September 30, 2022, and December 31, 2021 - The company operates a funded defined benefit pension plan for employees located in Seoul, Korea, which is a final waged-based plan[68](index=68&type=chunk) - The total benefit obligation was **$3.4 million** as of both **September 30, 2022**, and **December 31, 2021**, included in other non-current liabilities[68](index=68&type=chunk)

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]

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 ...