DoubleDown Interactive Co., Ltd. Q2 FY2025 earnings call

• Quarterly results: Consolidated revenue was $84.8 million, with social casino contributing $69.3 million and iGaming (SuprNation) $15.5 million. - Cash flow: Cash flow from operations was $19.7 million for Q2, and total cash flow from operations for the first half of 2025 was $60.1 million. - Social casino metrics: ARPU was $1.33, payer conversion rate was 7%, and DTC revenue exceeded 15% of social casino revenue. - Acquisition: Completed acquisition of WHOW Games, a social casino operator in Germany, expanding European presence. - SuprNation: Q2 revenue was $15.5 million, the highest since acquisition, with plans to scale investments and expand geographically and into new gaming categories. - Financials: Adjusted EBITDA was $33.5 million; net cash flows from operations were $19.7 million in Q2 and $60 million for the first half of 2025. As of June 30, 2025, cash, cash equivalents, and short-term investments totaled $481.2 million, with a net cash position of approximately $444 million after the WHOW Games acquisition payment.

DoubleDown Interactive reported consolidated revenue of $84.8 million for the second quarter ended June 30, 2025. The revenue was composed of $69.3 million from social casino operations and $15.5 million from its iGaming business, SuprNation. Adjusted EBITDA stood at $33.5 million. Cash flow from operations was $19.7 million. For the social casino segment, the average revenue per user (ARPU) was $1.33, the payer conversion rate was 7%, and direct-to-consumer (DTC) revenue accounted for over 15% of total social casino revenue. The iGaming segment's revenue nearly doubled year-over-year, increasing by 96% from the second quarter of 2024.

• SuprNation: Plans to launch fourth and fifth brand sites and native apps to enhance retention and efficiency. Intends to expand geographically in Europe and into Canada, and explore new verticals within iGaming. - Profitability: Confident SuprNation can achieve double-digit profit margins once sufficient scale is reached, leveraging disciplined investments and strategic expansions.

• Forward-looking statements are subject to numerous risks and uncertainties, including those from new information, future events, or market changes. - Impact of foreign currency fluctuations on financial results. - Integration risks related to acquisitions like WHOW Games. - Regulatory risks in iGaming and social casino markets, including potential changes in laws or enforcement actions.

Q: Any color on how you're thinking about balancing growth versus profitability for WHOW Games?

A: WHOW Games is an incremental opportunity leveraging DoubleDown's strength in social casino, with plans to lean into their European strength and use DoubleDown's expertise to balance growth and profitability.

Q: On the regulatory action towards sweeps in markets, are you seeing any increase in sign-ups or play?

A: No, DoubleDown is not involved in the Sweepstakes business, so there's no specific impact from regulatory actions on their operations.

Q: On the WHOW Games M&A process, was it opportunistic?

A: Yes, it was an opportunistic acquisition that leveraged DoubleDown's balance sheet and complemented their social casino business.

Q: On the sustainability of SuprNation's high growth, A: SuprNation's growth is sustainable based on marketing payback aligning with ROI targets, with plans to launch new brand sites and apps to enhance retention and efficiency, aiming for double-digit profit margins at scale.

Q: On expanding iGaming beyond U.K. and Sweden, A: Looking at additional licenses in Finland, Spain, Canada, etc., and leveraging social casino experience for better marketing and retention in iGaming.