DoubleDown Interactive Reports First Quarter 2025 Financial Results

Core Viewpoint - DoubleDown Interactive Co., Ltd. reported its unaudited financial results for Q1 2025, showing a revenue decline compared to the previous year, but strong cash flow generation and growth in its iGaming subsidiary, SuprNation [1][3][4]. Financial Performance Summary - Revenue for Q1 2025 was $83.5 million, down from $88.1 million in Q1 2024, with social casino/free-to-play games revenue at $70.3 million, a 12% decline year-over-year [6][7]. - SuprNation's revenue increased by 59% year-over-year to $13.2 million, driven by new player acquisition efforts in Sweden and the U.K. [4][6]. - Operating expenses decreased to $53.9 million in Q1 2025 from $57.0 million in Q1 2024, mainly due to lower costs associated with revenue and R&D [6][7]. - Profit for the interim period was $23.8 million, or $9.62 per fully diluted common share, compared to $30.3 million, or $12.24 per share, in the prior year [6][7]. - Adjusted EBITDA for Q1 2025 was $30.8 million, down from $32.7 million in Q1 2024, with an adjusted EBITDA margin of 36.9% [6][7]. Cash Flow and Financial Position - The company generated $41.1 million in cash flow from operations, an increase from $35.7 million in Q1 2024 [6][7]. - As of the end of Q1 2025, DoubleDown had a net cash position of approximately $421 million, equating to about $8.51 per American Depositary Share (ADS) [5][6]. - The average revenue per daily active user (ARPDAU) for social casino/free-to-play games increased to $1.29 from $1.26 year-over-year [6][7]. Non-Financial Performance Metrics - Average monthly revenue per payer decreased to $276 in Q1 2025 from $281 in Q1 2024 [6][7]. - The payer conversion rate improved to 6.9% from 6.4% year-over-year [7]. - Average monthly active users (MAUs) decreased to 1,238,000 from 1,478,000 in the previous year, while daily active users (DAUs) fell to 608,000 from 699,000 [7].