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DoubleDown Interactive Reports Fourth Quarter and Full Year 2023 Financial Results

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DoubleDown Interactive, a leading developer and publisher of digital games on mobile and web-based platforms, announced its unaudited financial results for the fourth quarter and year ended December 31, 2023. The Company’s consolidated financial results for the three- and twelve-month periods ended December 31, 2023 include 61 days of contributions from European iGaming operator, SuprNation, which was acquired by the Company on October 31, 2023.

Fourth Quarter 2023 vs. Fourth Quarter 2022 Summary:

  • Revenue was $83.1 million in the fourth quarter of 2023 compared to $76.2 million in the fourth quarter of 2022. Revenue contributed by SuprNation totaled $4.3 million for the 61 days the Company owned and operated the business. Revenue exclusive of the contributions from SuprNation increased 3% year over year to $78.8 million.
  • Operating expenses declined to $47.5 million in the fourth quarter of 2023 from $321.4 million in the fourth quarter of 2022, primarily reflecting the one-time, non-cash goodwill and intangibles impairment of $269.9 million incurred in the fourth quarter of 2022.
  • Adjusted EBITDA was $36.2 million for the fourth quarter of 2023, an increase from $24.7 million for the fourth quarter of 2022, primarily due to higher revenue and lower cost of revenues and sales and marketing expenses, partially offset by higher general and administrative expenses. Adjusted EBITDA margin increased to 43.5% in the fourth quarter of 2023 from 32.4% in the fourth quarter of 2022.
  • Net income was $25.5 million, or earnings per fully diluted common share of $10.27 ($0.51 per American Depositary Share (ADS)), in the fourth quarter of 2023, compared to a loss of $(194.4) million, or a loss of $(78.47) per fully diluted common share ($(3.92) per ADS), in the fourth quarter of 2022. Note each ADS represents 0.05 share of a common share.
  • Average Revenue Per Daily Active User (ARPDAU) for the Company’s social casino/free-to-play games increased to $1.24 in the fourth quarter of 2023 from $0.98 in the fourth quarter of 2022 and $1.06 in the third quarter of 2023.
  • Average monthly revenue per payer for the social casino/free-to-play games increased to $279 in the fourth quarter of 2023 from $227 in the fourth quarter of 2022 and $245 in the third quarter of 2023.

In Keuk Kim, Chief Executive Officer of DoubleDown, said: “Our fourth quarter results, which include a 3% year-over-year increase in core social casino revenue to $78.8 million and a 46% increase in Adjusted EBITDA to $36.2 million, highlight our best-in-class ability to monetize our loyal players combined with our disciplined approach to user acquisition and R&D spend which drives consistent profitability and strong free cash flow. We continue to deliver strong engagement metrics for our flagship social casino game DoubleDown Casino, as ARPDAU and average monthly revenue per payer rose 26% and 23%, respectively, compared to the 2022 fourth quarter. As a result, cash flows from operating activities were approximately $30 million in the fourth quarter.

“Our acquisition of SuprNation in the fourth quarter marked our entrance into the European iGaming market and we are moving quickly on a range of initiatives to scale the business which will be our initial focus before we turn to optimizing the cash flow generated by this business. These initiatives include increasing marketing investment and leveraging our legacy of marketing and product expertise to grow SuprNation’s market share in its core U.K. and Sweden markets.

“We place a primary focus on being capital efficient as reflected in our strong Adjusted EBITDA margins and free cash flow generation. At 2023 year-end, cash and cash equivalents and short-term investments net of current borrowing were approximately $235 million, which is equivalent to approximately $4.75 per ADS. Our strong net cash position and consistent ability to generate attractive free cash flow provides the Company with significant flexibility to evaluate further opportunities to deploy capital that would continue to expand our business in gaming categories with attractive addressable markets and where our operating discipline would ultimately deliver additional free cash flow and create new value for our shareholders.”

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Compliance Updates

IGSA Welcomes Sharp Vision as Silver Member

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The International Gaming Standards Association (IGSA) has welcomed Sharp Vision as a new Silver member. Sharp Vision is a leading provider of regulatory turnkey solutions for gaming authorities.

“We are delighted to be a part of IGSA and we look forward to contributing to the advancement of best practices among regulators in the fast-growing gaming industry,” Damien Raymond, COO of Sharp Vision, said.

“IGSA is very excited to welcome Sharp Vision to our membership. We believe that IGSA Standards can enhance Sharp Vision’s products supporting regulatory authority oversight. We look forward to their participation in IGSA committees,” Mark Pace, President of IGSA, said.

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BigCash Goes Global with Launch in Brazil

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BigCash, India’s leading online skill-based real money gaming company, has set its sights on global expansion and aims to offer an unparalleled gaming experience to users worldwide. The global skill-based gaming market is estimated to grow annually at a CAGR of 13.50% and will be valued at USD 106.78 billion, by 2032. Building on its success in India, BigCash is poised to introduce its entertaining games to global audiences, uniquely blending local flavors with its hallmark innovative gameplay.

BigCash started its journey in 2017 and has quickly become players’ preferred choice, by strategically focusing on launching new games and features regularly and due to its superfast and user-friendly interface. Being a multi-gaming app, it offers a wide range of games tailored for all age groups. With popular Indian card games, like poker, rummy, and call break with regional variations; casual games like ludo, ice blaster, fruit chop, along with fantasy cricket, the platform resonates deeply with the players of Bharat.

Continuing on the mission to take Indian technology global and to reach a wider global gaming audience, BigCash, after months of an in-depth market study, had set its views on expanding its global presence with in-house developed and tailored gaming technology and experience. BigCash presently operates in Brazil, besides India.

One of the key reasons behind BigCash’s entry into the Latin American market is the region’s immense potential for growth in the gaming sector. Brazil, in particular, has emerged as a hotspot for gaming companies due to its large population, favorable demographics, and a growing middle class with disposable income.

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BigCash’s global expansion plans include multiple launches in Latin America, Asia, and Africa over the next 12 months. BigCash plans to offer local and international flavors, customized specifically for each country, with a focus on Responsible Gaming and other trust measures, to ensure a deeper bonding with the players.

Ankur Singh, CEO of BigCash, said: “Going global has been part of our strategic planning always; with our launch in Brazil, we have just taken the first step. We are aspiring to be present in 8 countries in the next 12 months. The competitive landscape in Latin America’s gaming industry presents both opportunities and challenges. BigCash is a perfect fit for the Latin American gaming landscape due to our stronghold on tech, which allows product customizations, easy-to-play online games, a supersafe and fast experience; we are already gaining a lot of organic traction.”

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Michigan Lottery Transitions to 1-800-GAMBLER for Responsible Gaming Support

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The Michigan Lottery announced that it will transition to the National Problem Gambling Helpline, 1-800-GAMBLER for responsible gaming support. This aligns the agency with the Michigan Gaming Control Board and other online gaming platforms operating in Michigan in promoting 1-800-GAMBLER. The 1-800-GAMBLER helpline will replace the Michigan Problem Gambling Helpline currently in circulation (1-800-270-7117), although the previous number will remain in operation.

“The Lottery is committed to providing Michiganders with easy access to resources that support responsible gaming. By transitioning to 1-800-GAMBLER, we are able to ensure that Michigan residents can reach specially trained staff who can provide confidential professional support, local referrals, and resources to those who may have a gambling problem,” said Lottery Commissioner Suzanna Shkreli.

Operated by the National Council on Problem Gambling (NCPG), 1-800-GAMBLER is the world’s largest problem gambling helpline network by call volume, population served, and geographic area covered. The helpline connects people and families impacted by problem gambling with professional support, local referrals, and resources.

Calls made to 1-800-GAMBLER from Michigan will be routed to the Michigan Department of Health and Human Services. The helpline can also be reached by texting 800GAM or chatting online at 1800gamblerchat.org. Trained contact center staff are available 24/7, 365 days a year to provide support, guidance, and relevant information to anyone seeking help related to problem gambling. Additionally, players or their family members may connect to support resources such as live chat, text, and the helpline number by selecting the links in the footer of the Lottery’s website.

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The Michigan Lottery was the first lottery in the US to achieve the Internet Responsible Gambling Compliance Assessment Program certification through NCPG in October 2015. The NCPG evaluated the Lottery’s compliance with Internet Responsible Gaming (IRG) standards developed based on best practices from jurisdictions around the world. IRG standards are the highest standards for online responsible gaming in the nation.

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