DoubleDown Interactive, the social gambling game creator, revealed in its initial three-month financial report that the firm observed a consecutive rise in earnings for the first time in eight three-month periods.
DoubleDown Interactive, the social gambling game creator, revealed in its initial three-month financial report that the firm observed a consecutive rise in earnings for the first time in eight three-month periods.
Home > Finance > DoubleDown Halts the Decline With Initial Earnings Growth in 8 Quarters.
DoubleDown Halts the Decline With Initial Earnings Growth in 8 Quarters.
DoubleDown credited the “solid” initial three-month performance to the firm’s strong business model, emphasizing that the firm consistently achieves over 30% adjusted EBITDA margin and “substantial” cash flow.
Chief Executive Officer Keuk Kim stated that the firm continues to benefit from robust player involvement in its primary social gambling game, DoubleDown Casino, and therefore plans to focus on enhancing player monetization. This will be accomplished through the development of new casino-wide features.
Kim also hinted at the firm’s venture into new categories in the upcoming year.
“We are also allocating capital to expand into new gambling categories, such as online gambling, through our previously announced acquisition of SuprNation, which is anticipated to finalize later this year,” he stated.
DoubleDown’s initial three-month earnings decreased year-over-year.
Earnings for the three-month period were $77.6 million, down 9.2% from $85.5 million in the initial three-month period of 2022. However, on a consecutive basis, the outcome was better than $76.
DoubleDown showcased a robust performance during the final quarter of 2022, with earnings reaching a substantial $20 million. They successfully reduced operational expenses to $52.2 million, a notable decrease from the $60.8 million spent during the same period the previous year. This was attributed to lower costs associated with goods sold, diminished marketing expenditures, and a reduction in amortization charges.
Although the enterprise encountered a one-time impairment charge of $270 million, impacting their annual outcomes, they still managed to elevate their adjusted EBITDA margin from 31.5% to 32.8%. This achievement was attained despite a slight decline in adjusted EBITDA, which decreased by 5.6% from the preceding period. The company attributed this to lower income and reduced marketing outlays.
DoubleDown possesses considerable adaptability in how they allocate their resources. They also observed a positive trend in their average revenue per daily active user, which rose from $0.97 in the initial quarter of 2023 to $1.03.
Overall, DoubleDown’s profits expanded, with net income reaching $23.7 million in the first quarter of 2023, a 28.1% increase compared to the previous year. The company is well-prepared for future mergers, acquisitions, and investment possibilities.
Kim declared that DoubleDown is implementing measures to further refine its core social casino operations to guarantee the ongoing production of appealing annual free cash flow. With more than $100 million in unallocated funds, the firm boasts a robust financial position, granting it numerous avenues to allocate resources and amplify shareholder value. Kim expresses optimism about the company’s trajectory and believes its strategic and operational initiatives will sustain robust performance throughout the rest of 2023.
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