DoubleDown Interactive released its financial results for the third quarter of 2024, highlighting the supplier's continued growth.
Third Quarter of 2024
DoubleDown's total revenue for the third quarter reached $83 million, a 13.7% increase year-over-year. This was aided by last year's acquisition of iGaming operator SuprNation, which contributed $7.8 million to the quarter's revenue.
It is worth noting that DoubleDown acquired SuprNation in October 2023, a deal announced in January 2023 for $35 million.
The growth in social casino revenue, which increased by 3% to $75.2 million from the same period last year, is also a reason for the revenue increase. Social casino revenue is a core part of the company's business, accounting for about 90% of total revenue.
However, operating expenses did indeed increase from $43.3 million in the third quarter of 2023 to $47.7 million, mainly due to the aforementioned acquisition of SuprNation, while net income decreased by 15.5% to $25.1 million.
On the other hand, adjusted EBITDA saw a significant increase of 34.2%, reaching $36.1 million.
The quarter's performance was positive, highlighted by the average monthly revenue per player rising from $245 in the third quarter of 2023 to $281 in the third quarter of 2024, while the conversion rate increased from 5.9% to 6.8% during the same period.
Comments
DoubleDown CEO In Keuk Kim commented on the performance: "The third quarter welcomed another strong performance, with consolidated revenue growing 14% to $83 million and adjusted EBITDA growing 22% to $36.1 million.
"Our third quarter growth includes a 3% year-over-year increase in social casino revenue to $75.2 million, marking the fourth consecutive quarter of year-over-year growth. Our core social casino business's stable revenue and cash generation performance highlight our top-notch ability to monetize loyal players while strictly controlling user acquisition and R&D expenses, thus delivering strong profitability and free cash flow. This core operational focus also applies to our SuprNation iGaming business, resulting in operating cash flow of about $101 million over the past 12 months, including $31.8 million generated in the third quarter of 2024, marking our third consecutive quarter exceeding $30 million.
"Compared to the business expectations before the acquisition in October 2023, our SuprNation iGaming business continues to generate higher quarterly revenue. As we gain more experience in operating our first real-money casino site, our business focus continues to emphasize market entry initiatives, including marketing and player engagement strategies, consistent with our commitment to driving profitable revenue growth and positive cash flow contributions."
"Our rigorous approach to user acquisition and R&D spending has resulted in excellent quarterly adjusted EBITDA profit margins and free cash flow, further solidifying our strong balance sheet and financial condition. As of the third quarter, our total net cash position is approximately $335 million, or about $6.76 per ADS. With our strong net cash position and continued robust free cash flow, we have significant financial flexibility to evaluate organic growth and acquisition-focused growth opportunities, thereby creating new value for our shareholders."
In other performance news today, EveryMatrix reported a 66% increase in its third-quarter revenue, driven by significant acquisitions.
