DoubleDown Interactive(DDI) - 2023 Q4 - Annual Report

Revenue Performance - Revenue in Q4 2023 increased by 9% year-over-year to $83.1 million, with core social casino revenue up 3% to $78.8 million[4][7] - Full-year 2023 revenue decreased 4% to $308.9 million, with Adjusted EBITDA increasing to $118.9 million from $101.6 million in 2022[8][18] - Revenue for Q4 2023 was $83.1 million, up 9.1% from $76.2 million in Q4 2022[31] - Full-year 2023 revenue was $308.9 million, a 3.8% decrease from $321.0 million in 2022[31] Adjusted EBITDA and Margin - Adjusted EBITDA in Q4 2023 rose 46% to $36.2 million, with Adjusted EBITDA margin increasing to 43.5% from 32.4% in Q4 2022[4][7] - Adjusted EBITDA for Q4 2023 was $36.2 million, up from $24.7 million in Q4 2022, with an Adjusted EBITDA margin of 43.5% compared to 32.4% in the same period last year[26] - Full-year 2023 Adjusted EBITDA reached $118.9 million, a 17% increase from $101.6 million in 2022, with the Adjusted EBITDA margin improving to 38.5% from 31.6%[26] Net Income and Operating Income - Net income in Q4 2023 was $25.5 million, compared to a net loss of $(194.4) million in Q4 2022[7][13] - Net income for Q4 2023 was $25.5 million, a significant improvement from a net loss of $194.4 million in Q4 2022[26] - Full-year 2023 net income was $100.4 million, compared to a net loss of $234.0 million in 2022[26] - Operating income for Q4 2023 was $35.6 million, a substantial improvement from an operating loss of $245.2 million in Q4 2022[31] Operating Expenses and Goodwill Impairment - Operating expenses in Q4 2023 decreased 85% to $47.5 million, primarily due to the absence of a $269.9 million goodwill impairment charge from Q4 2022[7][12] ARPDAU and Revenue per Payer - ARPDAU for social casino/free-to-play games increased 26% to $1.24 in Q4 2023 compared to Q4 2022[4][7] - Average monthly revenue per payer for social casino/free-to-play games increased 23% to $279 in Q4 2023 compared to Q4 2022[4][7] Cash and Cash Equivalents - Cash and cash equivalents plus short-term investments net of current borrowing stood at $235 million at the end of 2023[6] - Cash and cash equivalents stood at $206.9 million as of December 31, 2023, down from $217.4 million at the end of 2022[29] Net Cash Flows from Operating Activities - Net cash flows from operating activities in Q4 2023 were $29.7 million, compared to $(20.9) million in Q4 2022[15] Acquisitions and Market Expansion - The company acquired SuprNation in Q4 2023, contributing $4.3 million in revenue over 61 days and marking its entry into the European iGaming market[2][5] Total Assets and Liabilities - Total assets increased to $801.6 million in 2023 from $792.1 million in 2022, while total liabilities decreased significantly to $74.3 million from $165.8 million[29] Retained Earnings - The company's retained earnings increased to $326.8 million in 2023 from $226.4 million in 2022[29]