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

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

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 Trading Up 2.7%

Shares of NASDAQ DDI traded up $0.32 during midday trading on Tuesday, reaching $12.37. The company had a trading volume of 154,396 shares, compared to its average volume of 99,822. DoubleDown Interactive has a 1 year low of $8.10 and a 1 year high of $12.50. The business’s 50-day simple moving average is $11.52 and its 200 day simple moving average is $10.21. The stock has a market cap of $612.93 million, a P/E ratio of 5.38 and a beta of 1.02.

Wall Street Analyst Weigh In

Several equities research analysts have weighed in on the stock. Wall Street Zen upgraded shares of DoubleDown Interactive from a “hold” rating to a “buy” rating in a research note on Saturday, May 16th. Wedbush decreased their price objective on DoubleDown Interactive from $21.00 to $15.00 and set an “outperform” rating for the company in a report on Wednesday, May 13th. Weiss Ratings raised DoubleDown Interactive from a “hold (c-)” rating to a “hold (c)” rating in a research report on Wednesday, May 13th. Finally, Freedom Capital lowered DoubleDown Interactive from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, April 28th. One research analyst has rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and an average target price of $15.50.

Institutional Trading of DoubleDown Interactive

A number of institutional investors and hedge funds have recently added to or reduced their stakes in DDI. Corient Private Wealth LLC acquired a new stake in DoubleDown Interactive during the 4th quarter worth about $94,000. XTX Topco Ltd acquired a new position in shares of DoubleDown Interactive in the fourth quarter valued at about $118,000. Quadrature Capital Ltd purchased a new position in shares of DoubleDown Interactive in the fourth quarter worth about $180,000. Hudson Bay Capital Management LP raised its stake in shares of DoubleDown Interactive by 50.2% in the fourth quarter. Hudson Bay Capital Management LP now owns 565,251 shares of the company’s stock worth $4,878,000 after purchasing an additional 188,815 shares during the last quarter. Finally, Charles Schwab Investment Management Inc. lifted its holdings in shares of DoubleDown Interactive by 41.0% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 96,275 shares of the company’s stock worth $831,000 after purchasing an additional 28,006 shares during the period.

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.