Key points:
- Q4 profit up 37.3%
- SuprNation business boosts results
- FY24 results reflect a positive year
DoubleDown Interactive has reported its fourth quarter and full-year results for 2024.
Q4 2024
During the fourth quarter of last year, DoubleDown experienced a slight decline in revenue, with the figure declining from $83.1m in Q4 2023 to $82m in Q4 2024. Revenue from iGaming operator SuprNation totalled $9m. Excluding that figure, DoubleDown’s revenue decreased 7% year-on-year to $73m.
However, profit for the year was up 37.3% to $35.7m, which was attributed to gains in foreign exchange transaction and currency translation.
Adjusted EBITDA decreased 5.1% to $35.1m, and adjusted EBITDA margin was valued at 42.8% for the fourth quarter of 2024.
Operating expenses were slightly higher at $47.8m compared to $47.4m the year prior. This was mainly owing to increased general and administrative expenses, including an extra month of SuprNation operations.
Highlighting improvements in performance, average revenue per daily active user for DoubleDown’s social casino/ free-to-play games went from $1.24 in Q4 2023 to $1.30 in Q4 2024, while average monthly revenue per payer for the social casino/ free-to-play games was up 1.1% to $282.
FY24
Looking at FY24, revenue increased 10.5% to $341.3m. Even without SuprNation’s contributions, revenue for the year was up 1% to $308.3m.
Profit for FY24 also experienced growth, of 23%, to $124.4m. This was due to the higher revenue figure and gains in foreign exchange transaction and translation.
Likewise, adjusted EBITDA saw a positive upswing, going from $122.1m in FY23 to $141.9m in FY24. Again, revenue gains played a part here, as well as lower sales, marketing, research and development expenses.
Comments
DoubleDown CEO Keuk Kim said: “DoubleDown’s fourth quarter results highlight the ability of our businesses to generate consistently strong profitability and free cash flow despite the slight revenue decline compared to the fourth quarter of 2023.
“In the fourth quarter and throughout 2024 we delivered strong monetisation metrics for our flagship social casino game, DoubleDown Casino, including full-year ARPDAU and average revenue per payer growth of 16% for both metrics when compared to the full year 2023 period. Our best-in-class ability to monetise our loyal players combined with our disciplined approach to user acquisition and R&D spend, drove cash flow from operations of $148m in 2024, further solidifying our balance sheet.
Good to know: DoubleDown entered into a share purchase agreement to buy SuprNation in January 2023, with the acquisition being completed in October 2023
“Our SuprNation iGaming business gained momentum throughout 2024 culminating with fourth quarter revenue being the highest under our ownership. With a full year of experience operating this business, we are targeting additional top line growth in 2025 as we pursue market share growth in SuprNation’s core UK and Sweden markets, subject to favourable market conditions.
“We continue to prioritise capital efficiency as reflected in our strong adjusted EBITDA margins and free cash flow. At 2024 year-end, our aggregate net cash position was approximately $380m, up $145m from the end of 2023, and equivalent to approximately $7.69 per ADS. Our attractive net cash position and consistent free cash flow generation provides us with significant flexibility to deploy capital against organic and M&A focused growth opportunities that would further expand the business into new gaming categories with attractive addressable markets to create additional value for our shareholders.”
