• Revenue: $82 million for Q4 2024, with $73 million from social casino/free-to-play games and $9 million from SuperNation.
• Adjusted EBITDA: $35.1 million for Q4 2024, with a margin of 42.8%.
• Full Year Revenue: $341.3 million for 2024, a 10% increase from 2023.
• Full Year Adjusted EBITDA: $141.9 million for 2024, up nearly 16% from 2023, with a margin of 41.6%.
• Cash Flow from Operations: Over $148 million for the full year 2024.
• Net Income: $35.6 million for Q4 2024, or $0.72 per ADS.
• Cash and Equivalents: $415 million as of December 31, 2024.
• ARPDAU: Increased to $1.30 in Q4 2024 from $1.24 in Q4 2023.
• Payer Conversion Rate: Increased to 6.9% in Q4 2024 from 6.4% in Q4 2023.
• Average Monthly Revenue per Payer: Increased to $282 in Q4 2024 from $279 in Q4 2023.

• Warning! GuruFocus has detected 1 Warning Sign with DDI.

Release Date: February 11, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• DoubleDown Interactive Co Ltd (NASDAQ:DDI) reported a 10% increase in total revenue for the full year 2024, reaching $341.3 million compared to 2023.
• The company achieved a significant increase in adjusted EBITDA, up nearly 16% year-over-year to $141.9 million.
• SuperNation, acquired in late 2023, showed strong performance with Q4 revenues of $9 million, marking the highest quarterly performance since acquisition.
• DoubleDown Interactive Co Ltd (NASDAQ:DDI) generated over $148 million in cash flow from operations in 2024, demonstrating strong cash generation capabilities.
• The company reported improvements in key monetization metrics, including ARPDAU and payer conversion rate, reflecting successful enhancements in their social casino offerings.

Negative Points

• Consolidated revenue for Q4 2024 was down slightly year-over-year to $82 million.
• Average Daily Active Users (DAU) and Monthly Active Users (MAU) were down in Q4 compared to Q3 2024.
• The social casino industry is expected to face challenges in 2025, with analysts forecasting a decline in industry revenues.
• Operating expenses remained flat year-over-year, indicating potential challenges in cost management.
• The company faces rising costs to acquire new players due to large investments by Sweepstakes games publishers, impacting marketing efficiency.

Q & A Highlights

Q: Could you reflect on your accomplishments with SuperNation over the past year and any initiatives you would highlight? A: Joseph Sigrist, CFO: We've optimized marketing execution, allowing us to acquire more users profitably. This has increased our confidence to spend more on user acquisition. In Keuk Kim, CEO: Our focus is on scalability, geo-expansion, and brand enhancement. We aim to improve user lifetime value and develop KPIs to scale the business from an ROI perspective.

Q: How are you positioning yourselves to continue the momentum with new meta features and growing monetization? A: In Keuk Kim, CEO: We are focusing on effective event features like daily missions and card collection events to enhance user engagement. We are also researching personalized experiences using AI to boost user interaction and maintain user attraction.

Q: What efforts and investments are you making for SuperNation's market share growth in the UK and Sweden? A: Joseph Sigrist, CFO: We are investing in marketing and user acquisition, which has shown fast monetization and high ROI. We are also leveraging brand and product development to focus on high entertainment iGaming players.

Q: What categories make the most sense for future game development, and can you share any timing of potential new titles? A: Joseph Sigrist, CFO: We are currently developing a match-three game in beta and focusing on casual gaming categories. From an M&A perspective, we are exploring various gaming opportunities, including regulated and casual game categories.

Q: How do you plan to address the challenging comparisons for 2025 in the social casino category? A: In Keuk Kim, CEO: We will continue enhancing the entertainment value of DoubleDown Casino and focus on user acquisition and R&D to maintain strong profitability and free cash flow. We also aim to increase direct-to-consumer revenue to enhance profitability.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.