Q2 2024 DoubleDown Interactive Co Ltd Earnings Call Transcript
Key Points
- DoubleDown Interactive Co Ltd (DDI) reported total Q2 revenue of $88.2 million, marking the third consecutive quarter of year-over-year revenue growth for its social casino business.
- Adjusted EBITDA for the second quarter rose 34% year-over-year to $37 million, indicating strong profitability.
- Cash flow from operations was $34.4 million, showcasing robust financial health.
- The company’s social casino business outperformed the industry, with a 7% year-over-year revenue increase despite an overall industry decline.
- Key performance indicators (KPIs) such as ARPDAU, average monthly revenue per payer, and payer conversion rate showed significant improvements.
- Operating expenses rose to $52.0 million from $47.7 million in the second quarter of 2023, partly due to the inclusion of SuprNation's operating expenses.
- Sales and marketing expenses for the second quarter of 2024 were $11.1 million, a decline of 15% compared to Q2 2023, indicating a potential reduction in aggressive market expansion.
- The company is still in the early stages of its direct-to-consumer (D2C) initiatives, making it difficult to quantify its impact on revenue.
- There is uncertainty regarding the long-term sustainability of the current EBITDA margins, especially with potential increases in marketing spend for new game launches.
- The company extended a $35 million loan from its controlling shareholder for an additional two years, which could indicate a reliance on external financing.
Good afternoon, and welcome to DoubleDown Interactive Earnings Conference Call for the Second Quarter ending in June 30, 2024. My name is Lisa, and I will be your operator for this afternoon.
Prior to this call, DoubleDown issued its financial results for the second quarter of 2024 in a press release, a copy of which has been furnished in a report on Form 6-K filed with the SEC and is available in the Investor Relations section of the company's website at www.doubledowninteractive.com. You can find the link to the Investor Relations section at the top of the homepage.
Joining us on today's call are DoubleDown CEO Mr. In Keuk Kim and its CFO, Mr. Joe Sigrist. Following their remarks, we will open the call for questions. Before management begins their formal remarks, we need to remind everyone that some of management's comments today will be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and
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