DoubleDown Interactive Q2 revenue down 7% year-over-year

August 9, 2023
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However, its CEO said the company is poised to conclude its acquisition of SuprNation.

DoubleDown Interactive has published its financial report for 2023’s second quarter. The digital games and mobile platform developer reported $75.2m in revenue for the quarter, down by nearly $5m when compared to its financial results from the same time last year.

Operating costs reached $47.7m for Q2, compared to $128.6m in expenses during the previous corresponding quarter. The company attributed the large difference partially to “lower cost of revenue, and decreased marketing and amortization expenses.”

DoubleDown reported an adjusted EBITDA that totaled $27.6m during Q2. The company’s adjusted EBITDA margin grew by nearly 4% when compared to last year’s Q2 results to reach 36.7%.

The company posted $24.4m in second-quarter net income, equal to $9.83 per fully diluted common share. During the same quarter in 2022, DoubleDown reported a net loss of $34.1m, or a loss of $13.75 per fully diluted common share.

Despite some of the falls, company CEO Keuk Kim said DoubleDown is pleased with its second-quarter results.

Kim commented, “Our business performed well in the second quarter as adjusted EBITDA increased more than 10% year over year and we generated approximately $38m in operating cash flow, excluding the final litigation settlement payment.

“DoubleDown’s attractive business model combined with our disciplined focus on managing operating expenses delivers solid adjusted EBITDA margins as demonstrated by the 34.7% margin through the first six months of 2023, a 290-basis point improvement over the comparable period in 2022.”

Kim also elaborated on the company’s pending merger acquisition deal.

Kim said in closing, “Our ability to consistently generate positive cash flow, combined with our strong balance sheet with more than $150m in uncommitted capital, provides us with the flexibility to invest in new gaming categories and high addressable market opportunities such as iGaming through our pending acquisition of SuprNation, which is expected to close later this year.

“We are encouraged by our performance in the first half of the year and expect to continue generating attractive cash flow over the balance of 2023 and beyond.”

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