DoubleDown Interactive(US:DDI)2024-11-12 18:10Financial Performance - Revenue for Q3 2024 reached $82,981,000, a 13.7% increase from $72,983,000 in Q3 2023[2] - Operating income for Q3 2024 was $35,239,000, up 18.5% from $29,680,000 in Q3 2023[2] - Net income for Q3 2024 was $25,143,000, compared to $26,930,000 in Q3 2023, reflecting a decrease of 6.6%[2] - The company reported a comprehensive income of $29,410,000 for Q3 2024, compared to $25,061,000 in Q3 2023, an increase of 17.5%[2] - Net income for the nine months ended September 30, 2024, was $88,769,000, an increase of 18.4% compared to $74,959,000 for the same period in 2023[10] - Total revenue for the three months ended September 30, 2024, was $82.98 million, a 13.5% increase from $72.98 million in the same period of 2023[31] Assets and Liabilities - Total assets increased to $879,849,000 as of September 30, 2024, from $803,344,000 at the end of 2023, marking a growth of 9.5%[4] - Cash and cash equivalents rose to $292,651,000, up 41.4% from $206,911,000 at the end of 2023[4] - Total current liabilities decreased significantly to $19,570,000 from $68,505,000 at the end of 2023, a reduction of 71.5%[4] - Retained earnings increased to $415,800,000 as of September 30, 2024, compared to $327,273,000 at the end of 2023, an increase of 27%[4] - Total equity attributable to shareholders increased to $815,608,000 as of September 30, 2024, from $697,860,000 as of September 30, 2023[8] - The company reported total debt of $37.89 million as of September 30, 2024, down from $38.78 million as of December 31, 2023[38] Cash Flow - Cash flows from operating activities for the nine months ended September 30, 2024, were $101,128,000, a significant recovery from a cash outflow of $8,881,000 in the same period of 2023[10] - The company experienced a net increase in cash and cash equivalents of $85,740,000 for the nine months ended September 30, 2024[10] - Cash equivalents totaled $292.7 million as of September 30, 2024, an increase from $206.9 million as of December 31, 2023[42] Revenue Sources - Revenue concentration from Apple accounted for 50.3% of total revenues for the nine months ended September 30, 2024, down from 55.7% in the same period of 2023[23] - Mobile platform revenue was $55.38 million for the three months ended September 30, 2024, compared to $61.13 million in 2023, while web platform revenue increased to $27.61 million from $11.85 million[31] - Revenue from the U.S. was $65.15 million for the three months ended September 30, 2024, slightly up from $63.72 million in 2023, while international revenue showed significant growth[32] Acquisitions and Investments - The company completed the acquisition of SuprNation AB for €34.3 million (approximately $36.5 million), expanding its presence in the real-money iGaming market in Western Europe[13] - The company recorded a total cash purchase price of $30.6 million for the acquisition of SuprNation, a European i-Gaming operator, completed on October 31, 2023[62] - SuprNation contributed revenue of $24.0 million and a pre-tax loss of $2.7 million for the nine months ended September 30, 2024[64] Expenses and Obligations - The company reported a depreciation and amortization expense of $2,480,000 for the nine months ended September 30, 2024, compared to $158,000 in 2023[10] - The company incurred total service fees of $3.5 million for game maintenance and user analysis services provided by DoubleU Games for the nine months ended September 30, 2024[56] - Costs incurred under the agreement with IGT for the three months ended September 30, 2024, totaled $1.0 million, compared to $1.5 million for the same period in 2023[57] - The total benefit obligation of the defined benefit pension plan was $2.1 million as of September 30, 2024[61] Legal and Compliance - The company recorded an accrual of $95.25 million related to a class-action lawsuit settlement, which was paid in cash in the second quarter of 2023[54] Taxation - The company recognized an effective tax rate of 22.8% for the nine months ended September 30, 2024, consistent with the same period in 2023[46] Currency and Foreign Operations - Loss on foreign currency remeasurement for the nine months ended September 30, 2024, was $1,520,000, contrasting with a loss of $1,484,000 in the same period of 2023[10] - The company recorded a foreign currency translation gain of $4.165 million for the three months ended September 30, 2024[10] Employee Incentives - The company has a performance-based incentive plan for key employees of SuprNation, which may result in additional payments of up to $6.5 million contingent on performance targets[63] Agreements and Licenses - The company licensed approximately 49 game titles under the new Game License Agreement with DoubleU Games effective January 1, 2023[55] - The company has a new Game Development Agreement with DoubleU Games effective September 1, 2024, with an initial term of three years[65]