DoubleDown Interactive Reports First Quarter 2025 Financial Results
- Operating cash flow increased 15% YoY to $41.1M
- SuprNation iGaming revenue grew 59% YoY to $13.2M
- Strong cash position of $421M ($8.51 per ADS)
- ARPDAU increased to $1.29 from $1.26 YoY
- Operating expenses decreased by 5.4% to $53.9M
- Total revenue declined 5.2% YoY to $83.5M
- Social casino revenue decreased 12% YoY
- Net profit decreased 21.5% YoY to $23.8M
- Average monthly revenue per payer declined to $276 from $281
- Average MAUs decreased to 1.24M from 1.48M
Insights
DoubleDown Interactive reported mixed Q1 2025 results with declining revenue but maintained strong profitability and cash generation.
DoubleDown Interactive's Q1 2025 results reveal a company navigating a transitional phase with total revenue decreasing 5.3% year-over-year to
The bright spot in their portfolio is SuprNation, their iGaming subsidiary, which delivered impressive
Despite the revenue decline, DDI maintained strong profitability metrics. Their quarterly profit reached
The company's cost control measures were evident with operating expenses decreasing to
Cash flow generation remains a standout strength, with operating cash flow increasing to
User metrics for their social casino games show declining engagement with Average MAUs dropping to 1.24 million (from 1.48 million) and DAUs falling to 608,000 (from 699,000). However, monetization metrics showed resilience with ARPDAU increasing to
The company's transition from US GAAP to IFRS accounting standards adds a layer of complexity to year-over-year comparisons, though the fundamental business dynamics remain clearly visible.
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, a12% decline from the first quarter of 2024. Revenue from SuprNation, the Company’s iGaming subsidiary, increased59% 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 was36.9% in the first quarter of 2025 and37.1% 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$35.7 million in the first quarter of 2024. The increase is primarily due to lower net unrealized gain on foreign currency translation, lower accounts receivable and increased accounts payable due to timing of payments, partially offset by lower operating profit.
“The first quarter marked another period of successful execution on our strategic operating priorities focused on driving a high conversion of revenue to profit and cash flow, as we generated
“Our SuprNation iGaming business continues to build on its 2024 momentum with first quarter revenues rising
“We ended the first quarter with an aggregate net cash position of approximately
Summary Operating Results for DoubleDown Interactive (Unaudited)
| Three months ended March 31, | ||||||||
| 2025 | 2024 | |||||||
| Revenue ($ 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
In addition to our results determined in accordance with IFRS, we believe the following non-IFRS financial measure is useful in evaluating our operating performance. We present “adjusted earnings before interest, taxes, depreciation and amortization” (“Adjusted EBITDA”) because we believe it assists investors and analysts by facilitating comparison of period-to-period operational performance on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. The items excluded from the Adjusted EBITDA may have a material impact on our financial results. Certain of those items are non-recurring, while others are non-cash in nature. Accordingly, the Adjusted EBITDA is presented as supplemental disclosure and should not be considered in isolation of, as a substitute for, or superior to, the financial information prepared in accordance with IFRS, and should be read in conjunction with the condensed consolidated interim financial statements furnished in our report on Form 6-K filed with the SEC.
In our reconciliation from our reported IFRS “profit before income tax” to our Adjusted EBITDA, we eliminate the impact of the following four line items: (i) depreciation and amortization; (ii) finance income; (iii) finance cost; and (iv) other (income) expense. The below table sets forth the full reconciliation of our non-IFRS measures:
| Reconciliation of non-IFRS measures | Three months ended March 31, | |||||||
| (in millions, except percentages) | 2025 | 2024 | ||||||
| Profit for the interim period | $ | 23.9 | $ | 30.4 | ||||
| Income tax expense | 8.9 | 8.0 | ||||||
| Profit before income tax | 32.8 | 38.4 | ||||||
| Adjustments for: | ||||||||
| Depreciation and amortization | $ | 1.1 | $ | 1.6 | ||||
| Finance income | (4.6 | ) | (8.0 | ) | ||||
| Finance cost | 1.5 | 0.7 | ||||||
| Other (income) expense, net | - | - | ||||||
| Adjusted EBITDA | 30.8 | 32.7 | ||||||
| Adjusted EBITDA margin | 36.9 | % | 37.1 | % | ||||
The key differences between reconciliations of Adjusted EBITDA and Adjusted EBITDA margin under IFRS and under GAAP arise from the treatment of certain adjustments, particularly in the areas of depreciation and amortization, finance income, and finance cost per the respective accounting standards. For reconciliation of Adjusted EBITDA and Adjusted EBITDA margin under IFRS, depreciation related to right-of-use assets is included within the depreciation and amortization, and as such, is added back to Adjusted EBITDA in the reconciliation. In contrast, for reconciliation of Adjusted EBITDA and Adjusted EBITDA margin under GAAP, depreciation related to right-of-use assets is classified under general and administrative expenses, and thus, is excluded from Adjusted EBITDA in the reconciliation. The designation of finance income and finance cost in reconciliation under IFRS reflects a change in the classification of non-operating (income) expense in reconciliation under GAAP. Specifically, the non-operating (income) expense accounts under GAAP have been renamed to finance income and finance cost under IFRS.
We encourage investors and others to review our financial information in its entirety and not to rely on any single financial measure.
Company Contact:
Joe Sigrist
ir@doubledown.com
+1 (206) 773-2266
Chief Financial Officer
https://www.doubledowninteractive.com
Investor Relations Contact:
Joseph Jaffoni or Richard Land
JCIR
+1 (212) 835-8500
DDI@jcir.com
| DoubleDown Interactive Co., Ltd. Consolidated Interim Statement of Financial Position (In thousands of U.S. dollars) | ||||||||
| March 31, | December 31, | |||||||
| 2025 | 2024 | |||||||
| (unaudited) | ||||||||
| Assets | ||||||||
| Cash and cash equivalents | $ | 365,664 | $ | 334,850 | ||||
| Short-term investments | 90,072 | 80,000 | ||||||
| Accounts receivable, net | 29,529 | 30,778 | ||||||
| Prepaid expenses and other assets | 4,305 | 7,614 | ||||||
| Total current assets | $ | 489,570 | $ | 453,242 | ||||
| Property and equipment, net | 981 | 1,025 | ||||||
| Right-of-use assets, net | 4,046 | 4,308 | ||||||
| Intangible assets, net | 47,390 | 47,666 | ||||||
| Goodwill | 396,400 | 395,804 | ||||||
| Deferred tax asset | 2,817 | 3,373 | ||||||
| Other non-current assets | 739 | 746 | ||||||
| Total non-current assets | $ | 452,373 | $ | 452,922 | ||||
| Total assets | $ | 941,943 | $ | 906,164 | ||||
| Liabilities and equity | ||||||||
| Accounts payable and accrued expenses | $ | 17,129 | $ | 14,990 | ||||
| Current lease liabilities | 1,112 | 1,162 | ||||||
| Income taxes payable | 6,015 | 1,512 | ||||||
| Contract liabilities | 1,413 | 1,754 | ||||||
| Other current liabilities | 4,857 | 3,966 | ||||||
| Total current liabilities | $ | 30,526 | $ | 23,384 | ||||
| Long-term borrowings with related party | 34,095 | 34,014 | ||||||
| Non-current lease liabilities | 3,374 | 3,510 | ||||||
| Deferred tax liabilities | 2,458 | - | ||||||
| Other non-current liabilities | 4,010 | 3,223 | ||||||
| Total non-current liabilities | $ | 43,937 | $ | 40,747 | ||||
| Total liabilities | $ | 74,463 | $ | 64,131 | ||||
| Equity | ||||||||
| Share capital | 21,198 | 21,198 | ||||||
| Share premium | 359,280 | 359,280 | ||||||
| Accumulated comprehensive loss | (9,153 | ) | (10,688 | ) | ||||
| Retained earnings | 495,971 | 472,125 | ||||||
| Equity attributable to DoubleDown Interactive Co. Ltd. | $ | 867,296 | $ | 841,915 | ||||
| Equity attributable to non-controlling interests | 184 | 118 | ||||||
| Total equity | $ | 867,480 | $ | 842,033 | ||||
| Total liabilities and equity | $ | 941,943 | $ | 906,164 | ||||
| DoubleDown Interactive Co., Ltd. Consolidated Interim Statement of Comprehensive Income (Unaudited, in thousands of U.S. dollars, except per share amounts) | |||||||
| Three months ended March 31, | |||||||
| 2025 | 2024 | ||||||
| Revenue | $ | 83,492 | $ | 88,143 | |||
| Operating expenses: | |||||||
| Cost of revenue | (24,125 | ) | (27,419 | ) | |||
| Sales and marketing | (14,138 | ) | (15,060 | ) | |||
| Research and development | (2,492 | ) | (4,172 | ) | |||
| General and administrative | (13,097 | ) | (10,312 | ) | |||
| Other income | 40 | 26 | |||||
| Other expense | (49 | ) | (50 | ) | |||
| Total operating expenses | (53,861 | ) | (56,987 | ) | |||
| Operating profit | $ | 29,631 | $ | 31,156 | |||
| Finance income | 4,612 | 7,964 | |||||
| Finance cost | (1,465 | ) | (747 | ) | |||
| Profit before income tax | $ | 32,778 | $ | 38,373 | |||
| Income tax expense | (8,866 | ) | (7,997 | ) | |||
| Profit for the interim period | $ | 23,912 | $ | 30,376 | |||
| Other comprehensive income (loss): | |||||||
| Pension adjustments, net of tax | 65 | 136 | |||||
| Gain (loss) on foreign currency translation | 1,470 | (3,078 | ) | ||||
| Total comprehensive income for the interim period | $ | 25,447 | $ | 27,434 | |||
| Profit attributable to: | |||||||
| DoubleDown Interactive Co., Ltd. | 23,846 | 30,324 | |||||
| Non-controlling interests | 66 | 52 | |||||
| Total comprehensive income attributable to: | |||||||
| DoubleDown Interactive Co., Ltd. | 25,381 | 27,444 | |||||
| Non-controlling interests | 66 | (10 | ) | ||||
| Earnings per share: | |||||||
| Basic | $ | 9.62 | $ | 12.24 | |||
| Diluted | $ | 9.62 | $ | 12.24 | |||
| Weighted average shares outstanding: | |||||||
| Basic | 2,477,672 | 2,477,672 | |||||
| Diluted | 2,477,672 | 2,477,672 | |||||
| DoubleDown Interactive Co., Ltd. Consolidated Interim Statement of Cash Flows (Unaudited, in thousands of U.S. dollars) | |||||||
| Three months ended March 31, | |||||||
| 2025 | 2024 | ||||||
| Cash flows from (used in) operating activities | |||||||
| Profit for the interim period | $ | 23,912 | $ | 30,376 | |||
| Adjustments to reconcile profit to net cash from operating activities: | |||||||
| Depreciation and amortization | 1,112 | 1,560 | |||||
| Unrealized gain on foreign currency | (207 | ) | (3.778 | ) | |||
| Unrealized loss on foreign currency | 336 | 189 | |||||
| Gain on valuation of financial assets | (290 | ) | - | ||||
| Loss on valuation of financial assets | 11 | 7 | |||||
| Interest income | (3,806 | ) | (3,431 | ) | |||
| Interest expense | 449 | 589 | |||||
| Provision for severance benefits | 108 | (299 | ) | ||||
| Other long-term employee benefits | 289 | 668 | |||||
| Income tax expense | 8,866 | 7,997 | |||||
| Working capital adjustments: | |||||||
| Accounts receivable, net | 1,383 | (1,808 | ) | ||||
| Prepaid expenses, and other assets | 518 | 578 | |||||
| Other non-current assets | 53 | 236 | |||||
| Accounts payable and accrued expenses | 3,369 | 1,291 | |||||
| Contract liabilities | (341 | ) | (112 | ) | |||
| Other current and non-current liabilities | (19 | ) | (644 | ) | |||
| Cash generated from operations | $ | 35,743 | $ | 33,419 | |||
| Interest received | 6,180 | 2,486 | |||||
| Interest paid | (61 | ) | (104 | ) | |||
| Income taxes paid | (742 | ) | (93 | ) | |||
| Net cash inflow from operating activities | $ | 41,120 | $ | 35,708 | |||
| Cash flows from investing activities | |||||||
| Purchase of property and equipment | (120 | ) | (14 | ) | |||
| Purchase of short-term investments | (141,081 | ) | (31,934 | ) | |||
| Sales of short-term investments | 131,221 | - | |||||
| Net cash (outflow) from investing activities | $ | (9,980 | ) | $ | (31,948 | ) | |
| Cash flows from financing activities | |||||||
| Repayment of lease liabilities | (207 | ) | (793 | ) | |||
| Net cash (outflow) from financing activities | $ | (207 | ) | $ | (793 | ) | |
| Net increase in cash and cash equivalents | $ | 30,933 | $ | 2,967 | |||
| Effect of exchange rate changes on cash and cash equivalents | $ | (119 | ) | $ | (15 | ) | |
| Cash and cash equivalents at beginning of the interim period | $ | 334,850 | $ | 206,911 | |||
| Cash and cash equivalents at end of the interim period | $ | 365,664 | $ | 209,863 | |||
FAQ
What were DDI's Q1 2025 earnings per share?
How much revenue did DoubleDown Interactive generate in Q1 2025?
What was DDI's cash position at the end of Q1 2025?
How did DoubleDown's SuprNation iGaming segment perform in Q1 2025?
What was DDI's Adjusted EBITDA for Q1 2025?
