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- **Revenue Growth**: Q3 2025 revenue of $95.8 million (+15% YoY), driven by Social Casino and iGaming. Adjusted EBITDA of $37.5 million.
- **DTC Expansion**: DTC sales now over 15% of Social Casino revenue, targeting 20%+ by year-end. ARPUDAU up to $1.39.
- **iGaming Momentum**: SuprNation revenue doubled YoY, with $700,000 sequential growth. New brand launch planned for Q4.
- **Balance Sheet Strength**: $404 million net cash position, on track for >$100 million free cash flow in 2025.
- **Strategic Acquisitions**: WHOW Games integration progressing, with focus on European expansion and product synergies.

**【Management Opening Remarks】**
- CEO In Keuk Kim highlighted Q3 2025 revenue of $95.8 million, up 15% YoY, driven by Social Casino ($79.6M) and iGaming ($16.2M). Adjusted EBITDA was $37.5 million, with cash flow from operations at $33.4 million.
- Emphasized DTC sales growth to over 15% of Social Casino revenue, targeting 20%+ by end-2025. ARPUDAU rose to $1.39 (vs. $1.30 in Q3 2024), and payer conversion rate increased to 7.8%.

**【CFO Financial Commentary】**
- CFO Joseph Sigrist noted the switch to IFRS reporting, with minimal impact on financials. Social Casino revenue grew 6% YoY, while iGaming revenue doubled YoY. Operating expenses rose to $60.9 million due to SuprNation and WHOW Games integration.
- Free cash flow for the year is on track to exceed $100 million, with a net cash position of $404 million as of Q3.

**【Q&A Highlights】**
- **SuprNation Growth**: CFO stated new player acquisition ROI meets targets, with a 6-month payback period. Q3 iGaming revenue increased $700,000 sequentially.
- **WHOW Games Integration**: Initial results positive, with focus on product synergies and European market expansion.
- **M&A Strategy**: Active pipeline for both established and emerging gaming assets, with a focus on scalability and profitability.
- **DTC Expansion**: CEO emphasized long-term benefits of direct CRM, with potential for margin expansion and lifetime value improvements.
- **Geographic Expansion**: Prioritizing low-hanging fruit in existing markets while evaluating new regions for iGaming.

DoubleDown Interactive Co., Ltd. (DDI) Q3 2025 Earnings Call Transcript

- **Social Casino Resilience**: Q2 revenue decline (-14% YoY) offset by iGaming surge (+96%), driving total revenue to $84.8M. ARPU stable at $1.33, Payer Conversion Rate up to 7%.
- **Strategic Expansion**: $64M WHOW Games acquisition bolsters European presence. Integration plans include DTC initiatives, content sharing, and operational optimization.
- **Cash Flow Strength**: $19.7M Q2 cash flow, $60M H1 total. Net cash position $444M, supporting disciplined M&A and growth investments.
- **SuprNation Momentum**: Highest quarterly revenue since acquisition, with plans to launch 4th & 5th casinos and explore new verticals. Aiming for double-digit EBITDA margin at scale.
- **DTC Growth Engine**: Exceeds 15% of Social Casino revenue, with ongoing product & marketing innovation to sustain acceleration.

**【CEO Opening Remarks】**
- Q2 2025 revenue: $84.8 million (Social Casino: $69.3M, SuprNation: $15.5M). Adjusted EBITDA: $33.5M. Cash flow from operations: $19.7M.
- Social Casino ARPU: $1.33 (flat YoY), Payer Conversion Rate: 7% (up from 6.7% in Q2 2024). Direct-to-Consumer (DTC) revenue now >15% of total Social Casino revenue.
- Acquired WHOW Games in July 2025 to expand European presence, particularly in Germany. Integration aims to leverage DoubleDown's operational expertise to accelerate WHOW's growth.
- SuprNation Q2 revenue up 96% YoY, highest quarterly performance since acquisition. Sequential growth of $2.3M driven by new player acquisition and marketing efficiency.

**【CFO Financial Commentary】**
- Switched to IFRS reporting in Q4 2024. Q2 2025 revenue down 4% YoY due to Social Casino decline (-14%) offset by iGaming growth (+96%).
- Operating expenses: $52.4M (flat YoY). Sales & Marketing: $13.1M (+12.9% YoY) driven by SuprNation expansion.
- Profit (excl. noncontrolling interest): $21.9M ($8.82/diluted share) vs. $33.2M ($13.35/diluted share) in Q2 2024. Decline due to weaker USD and lower revenue.
- Adjusted EBITDA margin: 39.5% (vs. 42.5% YoY). Cash position: $481.2M as of June 30, 2025 (net cash: $444M).

**【Q&A Key Highlights】**
1. **WHOW Games Strategy**: 
   - Balancing growth vs. profitability through WHOW's white-label model and European expansion. 
   - Synergies include DTC initiatives, content sharing (royalty-free Korean studio content), and operational best practices.
2. **DTC Growth**: 
   - Exceeded 15% target for 2025. Long-term target TBD but expects continued acceleration through product & marketing innovation.
3. **M&A Focus**: 
   - Opportunistic acquisition of WHOW Games reflects broader strategy to diversify geographically and by product category. 
   - No shift in M&A criteria; remains focused on accretive, operationally synergistic opportunities.
4. **Regulatory Environment**: 
   - No material impact from sweepstakes regulatory actions. Focus on compliance and organic growth.
5. **SuprNation Sustainability**: 
   - Current marketing ROI meets targets. Aiming for double-digit EBITDA margin at scale. 
   - Growth drivers: new brand sites (4th & 5th casinos), native apps, vertical expansion (e.g., sports betting), and European/Canadian expansion.


DoubleDown Interactive Co., Ltd. (DDI) Q2 2025 Earnings Call Transcript

- **Strong Cash Flow**: $41.1M operating cash flow (+15% YoY) highlights disciplined execution.
- **SuperNation Breakthrough**: Q1 revenue up 59% YoY, targeting EBITDA breakeven in 2025.
- **Social Casino Resilience**: ARPDAU +2.4% YoY, direct-to-consumer >10% of revenue.
- **M&A Momentum**: Actively pursuing iGaming and casual game opportunities, leveraging $422M net cash position.
- **Risks**: Social Casino YoY decline (12%) reflects industry headwinds, but improving monetization trends provide offset.


**【CEO Opening Remarks】**
- Q1 2025 consolidated revenue: $83.5M (down 5% YoY), with $70.3M from Social Casino (down 12%) and $13.2M from SuperNation (up 59%).
- Adjusted EBITDA: $30.8M (down 5.8% YoY), margin: 36.9%.
- Cash flow from operations: $41.1M (up 15% YoY), driven by disciplined cash conversion.
- Social Casino: ARPDAU $1.29 (up 2.4% YoY), payer conversion 6.9% (up 7.8% YoY). Direct-to-consumer revenue >10% of Social Casino, targeting 15%+ in 2025.
- SuperNation: Record Q1 revenue, +$4M YoY, with strong UK and Sweden growth. Targeting EBITDA breakeven in 2025.

**【CFO Financial Details】**
- IFRS transition: Lease expenses now included in D&A, slightly inflating adjusted EBITDA.
- Operating expenses: $53.9M (down 5% YoY), driven by lower R&D and COGS.
- Sales & marketing: $14.3M (down 5% YoY), with increased SuperNation spend offsetting Social Casino efficiency.
- Net profit: $23.9M (down 21% YoY), impacted by lower Social Casino revenue.
- Cash balance: $455.7M (up 12% YoY), net cash position $422M.

**【Q&A Highlights】**
- **SuperNation Growth**: Q1 marketing ROI >100%, expects sustained investment to drive scale. UK/Sweden expansion opportunities remain underpenetrated.
- **M&A Strategy**: Actively evaluating iGaming and casual game opportunities, prioritizing accretive acquisitions. SuperNation success reinforces M&A rationale.
- **Social Casino Challenges**: 2025 comps toughest in H1, but improving monetization trends (ARPDAU, conversion) offset revenue decline. Direct-to-consumer initiatives mitigate margin pressure.
- **Game Development**: Paused match-3 launch due to underwhelming engagement, but testing new casual genres with AI tools. Commercial launches will be metrics-driven.


DoubleDown Interactive Co., Ltd. (DDI) Q1 2025 Earnings Call Transcript

- **Social Casino Resilience**: 2024 monetization metrics beat industry decline, with ARPDAU +4.8% YoY and payer conversion +7.8%.
- **SuperNation Breakout**: Q4 revenue 30%+ above pre-acquisition run rate, 2025 UK/Sweden market share growth via +$M marketing spend.
- **Cash Flow Machine**: $148M annual free cash flow, $415M cash balance supporting M&A and new product development.
- **Innovation Pipeline**: Match-3 game in beta, AI-driven personalization, and casual/hypercasual titles under development.

**【CEO Opening Remarks】**
- Q4 2024 revenue: $82 million (down 1.3% YoY), with $73M from social casino and $9M from SuperNation (30%+ above pre-acquisition run rate). Full-year revenue up 10% to $341M.
- Key monetization metrics improvement: ARPDAU +4.8% YoY to $1.30, payer conversion rate +7.8% to 6.9%, monthly rev per payer +1.1% to $282.
- SuperNation: 2024 revenue exceeded expectations, with 2025 focus on scaling UK/Sweden market share via increased marketing spend.
- New product pipeline: Match-3 casual game in beta testing, with AI-driven personalization features under development.
- Balance sheet strength: $415M cash as of Q4, $148M+ annual free cash flow.

**【CFO Financial Highlights】**
- Q4 IFRS GAAP net income: $35.6M ($14.37/share), up 19% YoY. Adjusted EBITDA: $35.1M (42.8% margin) vs. $37M (44.5%) prior year.
- Full-year adjusted EBITDA up 16% to $141.9M, driven by social casino margin expansion.
- Operating expenses flat YoY at $47.8M, with SuperNation opex offset by lower social casino marketing/R&D.
- Cash flow from ops: $148.5M vs. $24.1M prior year (benefit of Benson legal settlement resolution).
- IFRS transition: Minimal financial impact, with leases now expensed through D&A.

**【Q&A Key Takeaways】**
1. **SuperNation Growth Strategy**: 
   - UK/Sweden marketing spend to increase, targeting high ROI user acquisition (faster payback than social casino). 
   - Brand differentiation via "entertainment-first" iGaming experience (e.g., Wonder Cards, VIP journeys). 
   - LTV optimization through personalized AI-driven features.

2. **New Product Development**: 
   - Match-3 game in beta testing, with monetization/referral mechanics optimized via player feedback. 
   - Pipeline includes other casual/hypercasual titles, with M&A aperture open to 2x-3x SuperNation scale opportunities.

3. **Industry Outlook**: 
   - Social casino industry expected to decline 5-10% in 2025, but DoubleDown focused on relative share gains via product innovation (e.g., meta features, daily missions). 
   - Direct-to-consumer revenue initiatives (e.g., in-app purchases) to enhance social casino margins.


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