DoubleDown Interactive Reports 17% Revenue Increase in Q2

Financial Highlights

Operating expenses for the quarter rose to $52.0 million, compared to $47.7 million in the second quarter of 2023. Despite the increase in operating expenses, the company’s net income also grew. Net income reached $33.3 million, up from $24.4 million in the same quarter of 2023.

The company also saw an increase in Adjusted EBITDA, which rose by 34% to $37.0 million from $27.6 million in the same period last year.

This improvement was driven by higher revenue and efficient cost management, particularly in areas like sales, marketing, and R&D.

Additionally, the company reported that net cash flows provided by operating activities reached $34.4 million for the quarter, a significant turnaround from the $37.6 million used in operating activities during the same quarter of the previous year.

“Our disciplined approach to user acquisition and R&D spend delivers strong quarterly Adjusted EBITDA margins and free cash flow. As a result, we continue to improve our already strong financial position as we ended the second quarter with an aggregate net cash position of approximately $303 million, or approximately $6.12 per ADS,” said Keuk Kim, Chief Executive Officer of DoubleDown.

“Going forward, our focus will remain on prudently driving further increases in player monetization to deliver consistent free cash flow generation while simultaneously evaluating both organic and M&A focused growth opportunities to leverage our significant financial strength in order to further grow our top and bottom lines and create new value for our shareholders,” added Keuk Kim.

SuperNation Acquisition

The revenue increase was partly driven by the acquisition of SuprNation, a European iGaming operator, which contributed $7.9 million to the revenue.

Even without SuprNation’s contribution, the company’s revenue still saw a 7% increase, reflecting higher player engagement and monetization in its core business.

“Our SuprNation iGaming operations also had another solid quarter as 2024 second quarter revenue of $7.9 million was well above the estimated quarterly run rate the business was generating prior to our acquisition. We continue to fine-tune our go-to-market strategies for growing SuprNation’s topline while remaining focused on ensuring our near-term marketing and player engagement strategies will result in sustainable mid- and long-term profitable revenue and cash flow contributions,” concluded Kim.