DoubleDown Interactive sees Q2 revenue fall by 14%

Home » DoubleDown Interactive sees Q2 revenue fall by 14%

DoubleDown Interactive’s revenue fell 14% in the second quarter due to “industry-wide headwinds” and “difficult year-over-year comparisons.”
DoubleDown generated $80.6 million in revenue in the second quarter, down from $93.2 million in the first. As a result, the developer lost $34.1 million in the second quarter, compared to an income of $18.4 million in the previous quarter.
These results were attributed to a number of factors by DoubleDown. CEO Keuk Kim stated that the second quarter of last year was a poor comparison due to Covid-related lockdowns, and that current inflationary trends are “influencing player behavior.”

Adjusted EBITDA fell from $31.1 million to $26.1 million, but DoubleDown’s adjusted EBITDA margin remained above 30%, albeit at 32.4%, which is still lower than the previous year’s 33.4%.

Meanwhile, operating expenses increased by 71%, from $71.5 million to $128.6 million. This was primarily due to the costs of legal proceedings related to a class action complaint.

Despite DoubleDown’s poor performance in the second quarter, Kim remained upbeat, saying, “We recorded these results despite industry-wide headwinds relating to difficult year-over-year comparisons during a period of Covid-related lockdowns in 2021 and recent global inflation concerns that are influencing player behavior.”

“In the future, we anticipate that our resilient business model will continue to drive positive financial performance, while we will strive to expand our business through a combination of improvements to our flagship game, DoubleDown Casino, and the addition of new gaming apps outside of social casino.”

The half-year results for DoubleDown show a similar picture. The developer earned $166.1 million in revenue for the six months ending June 30, down from $189.9 million the previous year.

DoubleDown also reported a net loss of $15.6 million for the first quarter, compared to a net profit of $37.8 million the previous year.

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