DoubleDown Interactive (NASDAQ:DDI) Releases Quarterly Earnings Results, Beats Expectations By $0.05 EPS

DoubleDown Interactive (NASDAQ:DDI) announced its earnings results on Tuesday. The company reported $0.66 EPS for the quarter, topping analysts’ consensus estimates of $0.61 by $0.05, FiscalAI reports. The firm had revenue of $94.29 million during the quarter, compared to analysts’ expectations of $92.90 million. DoubleDown Interactive had a return on equity of 12.16% and a net margin of 30.77%.

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 Stock Up 2.7%

DDI traded up $0.32 during trading hours on Tuesday, reaching $12.37. 154,396 shares of the company’s stock traded hands, compared to its average volume of 99,822. The firm has a 50-day moving average price of $11.52 and a 200 day moving average price of $10.21. The firm has a market capitalization of $612.93 million, a PE ratio of 5.38 and a beta of 1.02. DoubleDown Interactive has a 52-week low of $8.10 and a 52-week high of $12.50.

Institutional Trading of DoubleDown Interactive

Institutional investors and hedge funds have recently made changes to their positions in the business. Millennium Management LLC boosted its stake in shares of DoubleDown Interactive by 100.2% during the third quarter. Millennium Management LLC now owns 116,677 shares of the company’s stock valued at $1,090,000 after purchasing an additional 58,395 shares during the period. Boston Partners increased its stake in DoubleDown Interactive by 26.8% in the 3rd quarter. Boston Partners now owns 95,744 shares of the company’s stock worth $894,000 after buying an additional 20,216 shares during the period. Charles Schwab Investment Management Inc. lifted its holdings in DoubleDown Interactive by 41.0% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 96,275 shares of the company’s stock valued at $831,000 after buying an additional 28,006 shares in the last quarter. Goldman Sachs Group Inc. lifted its holdings in DoubleDown Interactive by 2.3% during the 4th quarter. Goldman Sachs Group Inc. now owns 80,391 shares of the company’s stock valued at $694,000 after buying an additional 1,789 shares in the last quarter. Finally, Acadian Asset Management LLC lifted its holdings in DoubleDown Interactive by 124.7% during the 1st quarter. Acadian Asset Management LLC now owns 60,282 shares of the company’s stock valued at $591,000 after buying an additional 33,459 shares in the last quarter.

Wall Street Analyst Weigh In

A number of analysts recently issued reports on the company. Weiss Ratings upgraded DoubleDown Interactive from a “hold (c-)” rating to a “hold (c)” rating in a research report on Wednesday, May 13th. Wedbush dropped their price objective on shares of DoubleDown Interactive from $21.00 to $15.00 and set an “outperform” rating for the company in a research note on Wednesday, May 13th. 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, Freedom Capital downgraded shares of DoubleDown Interactive from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, April 28th. One research analyst has rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average price target of $15.50.

DoubleDown Interactive Company Profile

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.