Key points:
- Revenue boosted by SuprNation acquisition
- Player spend went up during the quarter
DoubleDown Interactive has released its financial results for the third quarter of 2024, underlining continued growth from the supplier.
Q3 2024
Total revenue from DoubleDown reached $83m during Q3, a rise of 13.7% year-on-year. This has been boosted by revenue from SuprNation, an iGaming operator it acquired last year, which contributed $7.8m to the quarters revenue.
Good to know: DoubleDown acquired SuprNation in October 2023 in what was announced in January 2023 as a $35m deal
Also helping growth in revenue from last year was a 3% increase in social casino revenue to $75.2m, which is a core aspect of the business, as shown by the fact that its revenue represents around 90% of the total.
However, operating expenses did increase to $47.7m, from $43.3m in Q3 2023, mainly due to the aforementioned acquisition of SuprNation, while net income dipped 15.5% to $25.1m
On the other hand, adjusted EBITDA saw a significant increase of 34.2% to $36.1m.
Highlighting the positive performance during the quarter was the uplift in average monthly revenue per player which went from $245 in Q3 2023 to $281 in Q3 2024, while conversion in the same period went from 5.9% to 6.8%.
Comments
DoubleDown CEO In Keuk Kim gave some comments on the results: “The third quarter marked another period of strong performance with consolidated revenue rising 14% to $83m and adjusted EBITDA increasing 22% to $36.1m.
“Our third quarter growth includes a 3% year-on-year increase in social casino revenue to $75.2m, the fourth consecutive quarter of year-on-year growth. The consistent top-line and cash-generating performance of our core social casino business highlights our best-in-class ability to monetise our loyal players while maintaining strict discipline with our user acquisition and R&D spend which drives strong profitability and free cash flow. This core operating focus, which we also apply to our SuprNation iGaming business, has resulted in trailing twelve months cash flows from operations of approximately $101m, including $31.8m generated in the 2024 third quarter, our third consecutive quarter of more than $30m.
“Our SuprNation iGaming operations continue to generate higher quarterly revenue compared to the estimated level the business was achieving prior to our acquisition in October 2023. As we gain more experience with operating our first real money casino site, our focus for the business continues to emphasise go-to-market initiatives, including marketing and player-engagement strategies, that are consistent with our commitment to drive profitable revenue growth and positive cash flow contributions.
“Our disciplined approach to user acquisition and R&D spend delivers exceptional quarterly adjusted EBITDA margins and free cash flow which continues to further solidify our strong balance sheet and financial position. We ended the third quarter with an aggregate net cash position of approximately $335m, or approximately $6.76 per ADS. With our strong net cash position and consistent strong free cash flow generation we have significant financial flexibility to evaluate organic and M&A-focused growth opportunities that can create new value for our shareholders.”
In other results-based news today, EveryMatrix has reported a 66% increase in its revenue for the third quarter, boosted by major acquisitions.
