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DoubleDown Q3 Earnings & Revenues Miss Estimates, ARPDAU Up Y/Y

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DoubleDown Interactive Co., Ltd.'s (DDI - Free Report) third-quarter 2024 earnings and revenues missed the Zacks Consensus Estimate. Following the results, the company’s shares declined nearly 1% in the after-hours trading session yesterday.

During the third quarter, DoubleDown benefited from steady growth in its core social casino and SuprNation iGaming businesses. The company’s social casino segment saw a consistent revenue increase for the fourth quarter in a row, indicating DoubleDown's expertise in engaging and monetizing loyal players. This success was partly due to a disciplined approach to user acquisition and research, which supports strong profitability and free cash flow.

DoubleDown's iGaming division, SuprNation, has also exceeded initial revenue expectations since its acquisition, further strengthening the company’s portfolio.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

DDI Q3 Results in Detail

The company reported earnings per share (EPS) of 51 cents, which missed the Zacks Consensus Estimate of 55 cents by 7.3%. In the prior-year quarter, it reported an EPS of 54 cents.

Revenues of $83 million also missed the consensus mark of $83.5 million. The top line grew 13.7% on a year-over-year basis. SuprNation iGaming operations contributed $7.8 million to the quarterly revenues.

Average revenue per daily active user (ARPDAU) for the company’s social casino/free-to-play games increased to $1.30 from $1.06 reported a year ago. The average monthly revenue per payer for the social casino/free-to-play games also increased 14.7% year over year to $281.

DDI’s Operating Results

Adjusted EBITDA increased to $36.1 million from $29.7 million reported in the year-ago quarter. Adjusted EBITDA margin expanded 280 basis points to 43.5% year over year.

Total operating expenses increased year over year to $47.7 million from $43.3 million. This rise was due to the inclusion of operating expenses related to SuprNation.

DDI’s Financial Information

As of Sept. 30, 2024, DoubleDown had cash and cash equivalents of $292.7 million compared with $206.9 million as of Dec. 31, 2023.

At the end of the first nine months of 2024, net cash from operating activities was $101.1 million compared with $8.9 million of net cash used in operating activities in the year-ago period.

Zacks Rank of DDI

DoubleDown currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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