The Seattle-based developer has published its first quarter financial results, noting year-over-year declines across most metrics.
In addition to its revenue decrease, DoubleDown experienced an adjusted EBITDA drop, down by almost 19% from $33.1m to $26.9m. Its adjusted EBITDA margin likewise shrank, contracting to 31.5% from 34.2%. And continuing DoubleDown’s first quarter performance, its net income decreased by 4.6% from $19.4m to $18.5m.
However, average monthly revenue per payer increased year-over-year, from $212 to $225, though average revenue per daily active user decreased by $0.02 and payer conversion dropped to 5.5% from 5.7%.
Moreover, operating expenses were down, falling by more than 14% on a year-over-year basis to $60.8m, while net cash flows rose to $28.4m from $22m.
Commenting on its Q1 results, DoubleDown CEO Keuk Kim said: “Our business model remains resilient with a flexible cost structure as we generated $28m in net cash flows provided by operations in the first quarter of 2022.”
He added: “Our adjusted EBITDA grew sequentially in the first quarter of 2022 compared to the fourth quarter of 2021, as we intentionally scaled back our sales and marketing costs for ‘Undead World: Hero Survival’ to optimise our monetisation strategy for the title.”
Regarding DoubleDown’s future, Kim remarked: “Looking ahead, we plan to add enhancements to ‘Undead World: Hero Survival’ with a focus on improved monetisation metrics, while also building towards the release of additional non-social casino titles and continuing to evaluate potential M&A opportunities.”
