DoubleDown Interactive Co. (DDI) Q1 2025 earnings summary

Executive summary

• Q1 2025 consolidated revenue was $83.5 million, with $70.3 million from social casino games and $13.2 million from iGaming (SuprNation), reflecting a 5% year-over-year decline.

• Adjusted EBITDA reached $30.8 million (36.9% margin), and cash flow from operations was $41.1 million, up over $5 million year-over-year.

• Profit for the interim period was $23.8 million, down from $30.3 million year-over-year, mainly due to lower revenue and higher G&A expenses.

• SuprNation delivered its highest quarterly revenue since acquisition, up over $4 million from Q1 2024, driven by strong performance in the UK and Sweden.

• Ended Q1 with net cash of $421 million ($8.51/ADS), providing flexibility for growth and M&A.

Financial highlights

• Social casino revenue declined 12% year-over-year to $70.3 million, while iGaming revenue increased 59% to $13.2 million.

• ARPDAU for social casino rose to $1.29 from $1.26, and payer conversion increased to 6.9% from 6.4% year-over-year.

• Average monthly revenue per payer was $276, slightly down from $281 in Q1 2024.

• Operating expenses were $53.9 million, down from $57.0 million year-over-year, driven by lower cost of revenue and R&D.

• Profit margin was 28.6% in Q1 2025, down from 34.5% in Q1 2024.

Outlook and guidance

• Expect continued strong cash flow conversion and disciplined capital allocation, with flexibility to pursue growth through in-house development and M&A.

• SuprNation investments in player acquisition to continue, aiming for further top-line growth in Sweden and the UK.

• Social casino business faces tough comps in H1 2025, with easier comparisons in H2 but growth remains challenging.

• Ongoing focus on product improvements, live ops, and exploring new gaming categories and M&A opportunities.