Doubledown Interactive Co., Ltd. ((DDI)) has held its Q3 earnings call. Read on for the main highlights of the call.
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DoubleDown Interactive’s latest earnings call paints a picture of robust growth tempered by some financial challenges. The company reported strong revenue growth and increased cash flow, driven by the success in iGaming and positive contributions from recent acquisitions such as SuprNation. However, the call also highlighted some hurdles, including increased operating expenses and a decrease in adjusted EBITDA margin.
Strong Revenue Growth
DoubleDown Interactive reported a significant increase in its third-quarter consolidated revenue, reaching $95.8 million, up from $83.0 million in the same period last year. This growth underscores the company’s ability to expand its market presence and enhance its revenue streams.
Significant Growth in iGaming Revenue
The company’s iGaming revenues more than doubled, showcasing an impressive 108% increase from the third quarter of 2024. This surge highlights the growing popularity and success of DoubleDown’s iGaming offerings.
Increased Cash Flow
Net cash flows provided by operating activities in Q3 2025 stood at $33.4 million, marking an increase from $32.1 million in Q3 2024. This improvement in cash flow is a positive indicator of the company’s operational efficiency.
Increase in ARPUDAU and Payer Conversion
DoubleDown saw an increase in ARPUDAU to $1.39 in Q3 2025 from $1.30 in Q3 2024, alongside a rise in the payer conversion rate to 7.8% from 6.8%. These metrics reflect the company’s success in enhancing user engagement and monetization.
Positive Impact of SuprNation Acquisition
The acquisition of SuprNation has proven beneficial, with its quarterly revenue run rate more than doubling since the acquisition. Q3 revenue for SuprNation was reported at $16.2 million, demonstrating its significant contribution to the company’s overall performance.
Increased Operating Expenses
Operating expenses rose to $60.9 million in Q3 2025 from $47.6 million in Q3 2024. This increase is primarily attributed to higher expenses from SuprNation and WHOW Games, indicating the cost of integrating and expanding these acquisitions.
Decreased Adjusted EBITDA Margin
The adjusted EBITDA margin decreased to 39.1% in Q3 2025 from 44.0% in Q3 2024. This decline suggests that while revenues are growing, the company faces challenges in maintaining its profitability margins.
Decrease in Average Monthly Revenue per Payer
The average monthly revenue per payer decreased to $272 in Q3 2025 from $281 in the prior year period. This drop indicates a need for strategies to enhance revenue generation from existing users.
Forward-Looking Guidance
DoubleDown Interactive provided detailed guidance during the earnings call, reporting consolidated revenue of $95.8 million, with $79.6 million from Social Casino operations and $16.2 million from its iGaming business, SuprNation. The company aims to surpass a 20% direct-to-consumer revenue for Social Casino by the end of the year. With a strong cash position of $439.2 million, DoubleDown plans to invest in player acquisition for SuprNation and launch a new iGaming brand next year. The company is also exploring further geographical expansions and potential acquisitions to drive future growth.
In summary, DoubleDown Interactive’s earnings call reflects a company experiencing strong growth and expansion, particularly in its iGaming sector. While there are challenges in terms of increased expenses and decreased margins, the company’s forward-looking strategies and robust cash position suggest a positive outlook for future growth and expansion.