DoubleDown Interactive (NASDAQ:DDI) Announces Quarterly Earnings Results

DoubleDown Interactive (NASDAQ:DDI) issued its quarterly earnings data on Tuesday. The company reported $0.66 EPS for the quarter, beating the consensus estimate of $0.61 by $0.05, FiscalAI reports. The company had revenue of $94.29 million for the quarter, compared to analyst estimates of $92.90 million. DoubleDown Interactive had a return on equity of 13.13% and a net margin of 32.91%.

Here are the key takeaways from DoubleDown Interactive’s conference call:

• DoubleDown reported Q2 revenue of $94.3 million, up 11% year over year, while adjusted EBITDA rose 17% to $39.3 million and the margin expanded to 41.6%.
• Cash generation remained strong, with operating cash flow increasing 25% year over year to $24.6 million in the quarter and reaching $71 million for the first half; the company ended June with approximately $521.3 million in net cash.
• Direct-to-consumer sales reached a record 52% of social casino revenue, up from 44% in Q1 and just over 15% a year earlier, supporting profitability by reducing platform fees. Management said it expects further DTC growth through investments in owned channels, CRM, and payment infrastructure.
• SuprNation’s iGaming revenue grew 10% year over year to $17 million, but the higher U.K. gambling tax led the company to reduce player-acquisition spending and moderate sequential growth. Management said product, marketing, and expense adjustments have largely mitigated the tax impact and expects company-wide marketing spending to remain near its recent run rate.
• The special committee continues to evaluate DoubleU Games’ non-binding $11.25-per-ADS cash proposal to acquire unaffiliated shares, but management provided no update or expected timeline for a decision.

DoubleDown Interactive Price Performance

DDI traded up $0.05 on Thursday, reaching $12.30. 7,512 shares of the company’s stock were exchanged, compared to its average volume of 100,122. The stock has a market cap of $609.47 million, a PE ratio of 4.88 and a beta of 1.02. DoubleDown Interactive has a twelve month low of $8.10 and a twelve month high of $12.50. The stock’s fifty day moving average price is $11.55 and its 200-day moving average price is $10.25.

Analysts Set New Price Targets

A number of research firms recently issued reports on DDI. Wedbush dropped their price target on shares of DoubleDown Interactive from $21.00 to $15.00 and set an “outperform” rating on the stock in a research note on Wednesday, May 13th. Weiss Ratings restated a “hold (c)” rating on shares of DoubleDown Interactive in a research report on Friday, August 7th. Freedom Capital downgraded shares of DoubleDown Interactive from a “strong-buy” rating to a “hold” rating in a report on Tuesday, April 28th. Wall Street Zen upgraded shares of DoubleDown Interactive from a “hold” rating to a “buy” rating in a research report on Saturday, May 16th. Finally, B. Riley Financial boosted their target price on shares of DoubleDown Interactive from $22.00 to $24.00 and gave the stock a “buy” rating in a research note on Wednesday. Two research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat.com, DoubleDown Interactive has an average rating of “Hold” and a consensus price target of $18.33.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Goldman Sachs Group Inc. raised its holdings in shares of DoubleDown Interactive by 127.4% during the 1st quarter. Goldman Sachs Group Inc. now owns 28,790 shares of the company’s stock worth $285,000 after acquiring an additional 16,128 shares during the period. Acadian Asset Management LLC lifted its position in shares of DoubleDown Interactive by 124.7% during the first quarter. Acadian Asset Management LLC now owns 60,282 shares of the company’s stock worth $591,000 after purchasing an additional 33,459 shares in the last quarter. Ameriprise Financial Inc. grew its stake in DoubleDown Interactive by 130.2% during the 2nd quarter. Ameriprise Financial Inc. now owns 1,231,132 shares of the company’s stock worth $11,782,000 after purchasing an additional 696,366 shares in the last quarter. Hudson Bay Capital Management LP acquired a new position in DoubleDown Interactive during the 2nd quarter worth approximately $5,759,000. Finally, Osaic Holdings Inc. lifted its position in shares of DoubleDown Interactive by 338.6% during the 2nd quarter. Osaic Holdings Inc. now owns 3,105 shares of the company’s stock worth $30,000 after buying an additional 2,397 shares during the last quarter.

About DoubleDown Interactive

DoubleDown Interactive (NASDAQ: DDI) is a digital entertainment company that specializes in the development and publishing of social casino games. The company’s portfolio centers around free-to-play titles that emulate the experience of land-based casino games such as slots, video poker, bingo and table games. By blending high-quality graphics, engaging gameplay features and real-time social mechanics, DoubleDown Interactive aims to deliver a virtual casino environment accessible via web, mobile and social media platforms.

The company’s flagship offering, DoubleDown Casino, serves as a hub for multiple slot and table-style games, enabling millions of registered players to compete in tournaments, unlock new machines and purchase virtual coins through in-app transactions.