DoubleDown Interactive, a developer and publisher of digital social casino games, reported its financial results for the period ending March 31, 2022.
The report shows an 11% revenue decrease to $85.5m from $96.7m in the first quarter of 2021. Net income also decreased from $19.4m in Q1 2021 to $18.5m in Q1 of 2022.
There was a slight decrease in Average Revenue Per Daily Active User as well. The company reported $0.99 in the first quarter of 2021, but during the same time this year, the number fell to $0.97.
Average monthly revenue per payer increased from $212 in Q1 2021 to $225 in the first quarter of 2022. Payer conversion decreased from 5.7% in the first quarter of 2021 to 5.5% in the first quarter of 2022. This statistic represents the percentage of monthly active users that made at minimum one purchase in a month during the quarter.
Keuk Kim, Chief Executive Officer of DoubleDown, stated: "Our business model remains resilient with a flexible cost structure as we generated $28 million in net cash flows provided by operations in the first quarter of 2022 and ended the quarter with a total of $268 million in cash and cash equivalents and short-term investments, providing us with a strong financial position."
Operating expenses were down in Q1 of 2022 by 14.4%, totaling $60.8m. This is said to be mostly due to decreases in the cost of revenues, sales and marketing expenses, and depreciation and amortization expenses.
Kim continued: "Our adjusted EBITDA grew sequentially in the first quarter of 2022 compared to the fourth quarter of 2021, as we intentionally scaled back our sales and marketing costs for 'Undead World: Hero Survival’ to optimize our monetization strategy for the title, which also contributed to lower revenue sequentially."