DoubleDown Interactive Co. (DDI) Q3 2024 earnings summary

Executive summary

• Consolidated Q3 2024 revenue rose 14% year-over-year to $83 million, with social casino free-to-play games contributing $75.2 million and SuprNation $7.8 million.

• Fourth consecutive quarter of year-over-year revenue growth in the social casino business, up 3% from Q3 2023.

• Adjusted EBITDA increased 22% year-over-year to $36.1 million, with margin improving to 43.5%.

• Net income for Q3 2024 was $25.1 million, or $10.11 per diluted share and $0.51 per ADS, down from $26.9 million year-over-year due to foreign currency losses and higher G&A expenses.

• Cash flow from operations reached $31.8 million in Q3 and over $101 million for the first three quarters of 2024.

Financial highlights

• Q3 2024 revenue: $83 million vs. $73 million in Q3 2023; excluding SuprNation, revenue grew 3% to $75.2 million.

• Operating expenses rose to $47.7 million from $43.3 million in Q3 2023, mainly due to SuprNation integration, but declined sequentially from $52 million in Q2 2024.

• Sales and marketing expenses declined 16% year-over-year to $8.9 million.

• Cash, cash equivalents, and short-term investments totaled $373 million at quarter end; cash and cash equivalents at quarter-end were $292.7 million, with total current assets of $415.9 million.

• Net income per diluted share: $10.11 ($0.51 per ADS) vs. $10.87 ($0.54 per ADS) year-over-year.

Outlook and guidance

• Anticipates more challenging year-over-year comparisons going forward due to recent strong performance.

• Expects positive results from SuprNation synergy initiatives and new game launches to become more evident in 2025.

• Ongoing focus on enhancing direct-to-consumer revenue and expanding into new gaming categories.

• Focus remains on profitable revenue growth and positive cash flow, especially in SuprNation iGaming operations.

• Company highlights financial flexibility for organic and M&A-driven growth opportunities.