DoubleDown Interactive reports strong first quarter

Finance News

DoubleDown Interactive aa leading developer and publisher of digital games on mobile and web-based platforms, today announced its unaudited financial results for the first quarter ended March 31, 2024.

The company’s consolidated financial results for the three-month period ended March 31, 2024 include the unaudited financial results of SuprNation AB, a European iGaming operator, which was acquired by the company on October 31, 2023.

Revenue increased to $88.1 million in the first quarter of 2024 from $77.6 million in the first quarter of 2023. Revenue contributed by SuprNation totaled $8.3 million in the first quarter of 2024. Revenue exclusive of the contributions from SuprNation increased to $79.8 million, representing a 3% year over year growth.

Operating expenses increased to $57.1 million in the first quarter of 2024 from $52.2 million in the first quarter of 2023, primarily due to the inclusion of expenses related to SuprNation operations in the first quarter of 2024, partially offset by lower sales and marketing and research and development expenses.

Net income increased to $30.4 million, or earnings per fully diluted common share of $12.23 ($0.61 per American Depositary Share (“ADS”)), in the first quarter of 2024, from $23.7 million, or earnings of $9.55 per fully diluted common share ($0.48 per ADS), in the first quarter of 2023. Note each ADS represents 0.05 share of a common share.

“The first quarter of 2024 marked another quarter of strong financial results, with consolidated revenue of $88.1 million and Adjusted EBITDA of $31.9 million, representing 14% and 26% year-over-year growth, respectively. Revenue from our social casino games increased 3% year-over-year for the second consecutive quarter,” said In Keuk Kim, Chief Executive Officer of DoubleDown.

“Our DoubleDown Casino’s performance is benefitting from the recently introduced meta features that are further advancing our ability to improve monetization and generate strong engagement metrics, with ARPDAU rising on a quarterly sequential basis and by 22% year over year, and average revenue per payer also rising from 2023 fourth quarter levels and growing 27% year over year.

The strong performance of our social casino business combined with our commitment to remain disciplined with user acquisition and R&D spend delivered another quarter of strong Adjusted EBITDA margin and free cash flow, with cash flow from operating activities of $34.9 million in the 2024 first quarter.

“The first quarter represented our first full quarter of operations of SuprNation, a European iGaming operator, which is off to a strong start as we begin to implement our initiatives to grow the business by leveraging our marketing and player engagement and monetization strategies and expertise. We intend to continue to focus on driving revenue growth for SuprNation for the next several quarters.