DoubleDown Interactive has seen its revenue drop by 14% for Q2, a result of “industry-wide headwinds” and “difficult year-over-year comparisons.”
The second quarter saw DoubleDown generate $80.6m in revenue, down from $93.2m. As a result, the developer was in the red for Q2, reporting a net loss of $34.1m, down from an income of $18.4m.
DoubleDown attributed these results to several factors. CEO Keuk Kim said Q2 of last year represents an unfavourable comparison owing to Covid-related lockdowns, and added that current inflationary trends are “impacting player behaviour.”
Adjusted EBITDA decreased from $31.1m to $26.1m, though DoubleDown’s adjusted EBITDA margin remained above 30%, albeit at 32.4%, which is still lower than last year’s 33.4%.
Meanwhile, operating expenses rose, climbing by 71% from $71.5m to $128.6m. This was due in large part to costs associated with legal proceedings related to a class action complaint.
Despite DoubleDown’s Q2 performance, Kim remained confident, commenting: “We recorded these results despite industry-wide headwinds relating to difficult year-over-year comparisons during a period of Covid-related lockdowns in 2021 and recent global inflation concerns that are impacting player behaviour.
“Going forward, we expect our resilient business model to continue driving positive financial performance, while operationally we will strive to expand our business through a combination of improvements to our flagship game, DoubleDown Casino, and the addition of new gaming apps outside of social casino.”
DoubleDown’s half-year results paint a similar picture. For the six months ended 30 June, the developer generated $166.1m in revenue, down year-on-year from $189.9m.
DoubleDown also recorded a net loss of $15.6m for H1 in contrast to the prior-year period’s $37.8m net income.