DoubleDown (DDI) Q2 Earnings & Revenues Beat, ARPDAU Up Y/Y

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].