DoubleDown Interactive Reports First Quarter 2025 Financial Results

SEOUL, South Korea, May 13, 2025 (GLOBE NEWSWIRE) -- DoubleDown Interactive Co., Ltd. (NASDAQ: DDI) ("DoubleDown" or the "Company"), a leading developer and publisher of digital games on mobile and web-based platforms, today announced unaudited financial results for the first quarter ended March 31, 2025. Beginning with the fourth quarter of 2024, the Company is reporting its financial results in accordance with International Financial Reporting Standards ("IFRS"). As such, the financial results for the first quarter 2025, as well as the comparable period for 2024, reflect IFRS. The Company previously reported its financial results in accordance with accounting principles generally accepted in the United States of America ("US GAAP").

First Quarter 2025 vs. First Quarter 2024 Summary:

   -- Revenue was $83.5 million in the first quarter of 2025 compared to $88.1 
      million in the first quarter of 2024. Revenue from the Company's social 
      casino/free-to-play games was $70.3 million in the first quarter of 2025, 
      a 12% decline from the first quarter of 2024. Revenue from SuprNation, 
      the Company's iGaming subsidiary, increased 59% year over year to $13.2 
      million, primarily as a result of our increased efforts in new player 
      acquisition. 
 
   -- Operating expenses were $53.9 million in the first quarter of 2025 
      compared to $57.0 million in the first quarter of 2024, primarily due to 
      lower cost of revenue reflecting lower revenue and lower research and 
      development expenses, partially offset by higher general and 
      administrative expenses. 
 
   -- Profit for the interim period (excluding non-controlling interest) was 
      $23.8 million, or earnings per fully diluted common share of $9.62 ($0.48 
      per American Depositary Share ("ADS")), in the first quarter of 2025, 
      compared to profit for the interim period (excluding non-controlling 
      interest) of $30.3 million, or earnings per fully diluted common share of 
      $12.24 ($0.61 per ADS), in the first quarter of 2024. The decrease was 
      primarily due to lower revenue, lower net unrealized gain on foreign 
      currency and higher general and administrative expenses, partially offset 
      by lower sales and marketing and research and development expenses. Each 
      ADS represents 0.05 share of a common share. 
 
   -- Adjusted EBITDA was $30.8 million for the first quarter of 2025 compared 
      to $32.7 million in the first quarter of 2024. Adjusted EBITDA margin was 
      36.9% in the first quarter of 2025 and 37.1% in the first quarter of 
      2024. 
 
   -- Average Revenue Per Daily Active User ("ARPDAU") for the Company's social 
      casino/free-to-play games increased to $1.29 in the first quarter of 2025 
      from $1.26 in the first quarter of 2024 and slightly decreased from $1.30 
      in the fourth quarter of 2024. 
 
   -- Average monthly revenue per payer for the social casino/free-to-play 
      games decreased to $276 in the first quarter of 2025 from $281 in the 
      first quarter of 2024 and from $282 in the fourth quarter of 2024. 
 
   -- Net cash flows from operating activities for the first quarter of 2025 
      were $41.1 million compared to $35.7 million in the first quarter of 
      2024. The increase is primarily due to lower net unrealized gain on 
      foreign currency translation, lower accounts receivable and increased 
      accounts payable due to timing of payments, partially offset by lower 
      operating profit. 

"The first quarter marked another period of successful execution on our strategic operating priorities focused on driving a high conversion of revenue to profit and cash flow, as we generated $41.1 million in cash flow from operations in the period," said In Keuk Kim, Chief Executive Officer of DoubleDown. "While social casino revenues declined year over year as expected given the strong performance in the prior-year period, we continue to achieve strong monetization metrics for our flagship casino game, DoubleDown Casino.

"Our SuprNation iGaming business continues to build on its 2024 momentum with first quarter revenues rising 59% year over year to $13.2 million, as we strategically increase our investments in new player acquisition in the core Sweden and U.K. markets. We continue to target strong top line growth for SuprNation this year while maintaining our capital efficiency discipline.

"We ended the first quarter with an aggregate net cash position of approximately $421 million, or approximately $8.51 per ADS. As our consistent free cash flow generation further strengthens our balance sheet, we have significant flexibility to pursue growth opportunities through our in-house development efforts and through potential M&A opportunities that create value for shareholders."

Summary Operating Results for DoubleDown Interactive (Unaudited)

 
                                      Three months ended March 31, 
                                  ------------------------------------  ---- 
                                         2025                  2024 
Revenue ($ MM)                     $        83.5         $        88.1 
Total operating expenses ($ MM)            (53.9)                (57.0) 
Profit for the interim period 
 (excluding non-controlling 
 interest) ($ MM)                  $        23.8         $        30.3 
Adjusted EBITDA ($ MM)             $        30.8         $        32.7 
Profit margin                               28.6%                 34.5% 
Adjusted EBITDA margin                      36.9%                 37.1% 
 
Non-financial performance 
metrics(1) 
Average MAUs (000s)                        1,238                 1,478 
Average DAUs (000s)                          608                   699 
ARPDAU                             $        1.29         $        1.26 
Average monthly revenue per 
 payer                             $         276         $         281 
Payer conversion                             6.9%                  6.4% 
 

(1) Social casino/free-to-play games only

Conference Call

DoubleDown will hold a conference call today (May 13, 2025) at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) to discuss these results. A question-and-answer session will follow management's presentation.

To access the call, please use the following link: DoubleDown First Quarter and Full Year 2025 Earnings Call. After registering, an email will be sent, including dial-in details and a unique conference call access code required to join the live call. To ensure you are connected prior to the beginning of the call, please register a minimum of 15 minutes before the start of the call.

A simultaneous webcast of the conference call will be available with the following link: DoubleDown First Quarter and Full Year 2025 Earnings Webcast, or via the Investor Relations page of the DoubleDown website at ir.doubledowninteractive.com. For those not planning to ask a question on the conference call, the Company recommends listening via the webcast. A replay will be available on the Company's Investor Relations website shortly after the event.

About DoubleDown Interactive

DoubleDown Interactive Co., Ltd. is a leading developer and publisher of digital games on mobile and web-based platforms. We are the creators of multi-format interactive entertainment experiences for casual players, bringing authentic Vegas entertainment to players around the world through an online social casino experience. The Company's flagship social casino title, DoubleDown Casino, has been a fan-favorite game on leading social and mobile platforms for years, entertaining millions of players worldwide with a lineup of classic and modern games. The Company's subsidiary, SuprNation, also operates three real-money iGaming sites in Western Europe.

Safe Harbor Statement

Certain statements contained in this press release are "forward-looking statements" about future events and expectations for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on our beliefs, assumptions, and expectations of industry trends, our future financial and operating performance, and our growth plans, taking into account the information currently available to us. These statements are not statements of historical fact. We have based these forward-looking statements on our current expectations and assumptions about future events. While our management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond our control. Therefore, you should not place undue reliance on such statements. Words such as "anticipates," believes," "continues," "estimates," "expects," "goal," "objectives," "intends," "may," "opportunity," "plans," potential," "near-term," long-term," "projections," "assumptions," "projects," "guidance," "forecasts," "outlook," "target," "trends," "should," "could," "would," "will," and similar expressions are intended to identify such forward-looking statements. We qualify any forward-looking statements entirely by these cautionary factors. We assume no obligation to update or revise any forward-looking statements for any reason or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.

Use and Reconciliation of Non-IFRS Financial Measures

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May 13, 2025 16:05 ET (20:05 GMT)