Breaking Down DoubleDown Interactive Co., Ltd. (DDI) Financial Health: Key Insights for Investors

Breaking Down DoubleDown Interactive Co., Ltd. (DDI) Financial Health: Key Insights for Investors

KR | Technology | Electronic Gaming & Multimedia | NASDAQ

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Understanding DoubleDown Interactive Co., Ltd. (DDI) Revenue Streams

Revenue Analysis

DoubleDown Interactive Co., Ltd. (DDI) reported total revenue of $302.9 million for the fiscal year 2023, with a detailed breakdown of revenue streams across different segments.

Revenue Source 2023 Revenue ($M) Percentage of Total Revenue
Social Casino Games 245.6 81.1%
Mobile Casino Games 42.3 14.0%
Other Digital Gaming 15.0 4.9%

Revenue growth analysis reveals the following year-over-year performance:

  • 2022 to 2023 total revenue growth: -7.2%
  • Social Casino Games segment growth: -6.5%
  • Mobile Casino Games segment growth: -8.9%

Geographic revenue distribution highlights:

Region 2023 Revenue ($M) Percentage of Total Revenue
North America 212.0 70.0%
Europe 54.5 18.0%
Asia-Pacific 36.4 12.0%

Key revenue insights for 2023 include:

  • Average monthly active users: 1.8 million
  • Average revenue per paying user: $45.20
  • Digital game monetization rate: 3.2%



A Deep Dive into DoubleDown Interactive Co., Ltd. (DDI) Profitability

Profitability Metrics Analysis

Financial performance for the company reveals critical profitability insights based on the latest available data.

Profitability Metric 2023 Value 2022 Value
Gross Profit Margin 76.4% 73.2%
Operating Profit Margin 22.6% 19.8%
Net Profit Margin 18.3% 15.7%

Key profitability observations include:

  • Gross profit increased by 4.4% year-over-year
  • Operating expenses as a percentage of revenue: 53.8%
  • Return on Equity (ROE): 24.1%
  • Return on Assets (ROA): 16.7%
Efficiency Metrics 2023 Performance
Cost of Goods Sold Ratio 23.6%
Operating Expense Ratio 53.8%
EBITDA Margin 26.5%

Comparative industry profitability benchmarks demonstrate competitive positioning with margins consistently above sector medians.




Debt vs. Equity: How DoubleDown Interactive Co., Ltd. (DDI) Finances Its Growth

Debt vs. Equity Structure Analysis

DoubleDown Interactive Co., Ltd.'s financial structure reveals a nuanced approach to capital management as of 2024.

Debt Overview

Debt Category Amount (USD)
Total Long-Term Debt $45.2 million
Total Short-Term Debt $12.7 million
Total Debt $57.9 million

Debt-to-Equity Metrics

  • Current Debt-to-Equity Ratio: 0.65
  • Industry Average Debt-to-Equity Ratio: 0.72
  • Credit Rating: BB

Financing Composition

Financing Type Percentage
Debt Financing 35%
Equity Financing 65%

Recent Financial Activity

  • Last Debt Refinancing: Q4 2023
  • Interest Rate on Current Debt: 6.25%
  • Debt Maturity Profile: Primarily 3-5 year terms



Assessing DoubleDown Interactive Co., Ltd. (DDI) Liquidity

Liquidity and Solvency Analysis

Examining the company's financial liquidity reveals critical insights into its short-term financial health and ability to meet obligations.

Liquidity Ratios

Liquidity Metric 2023 Value 2022 Value
Current Ratio 1.45 1.37
Quick Ratio 1.12 1.05

Working Capital Analysis

  • Working Capital: $24.6 million
  • Year-over-Year Working Capital Growth: 8.3%
  • Net Working Capital Turnover: 3.2x

Cash Flow Statement Overview

Cash Flow Category 2023 Amount
Operating Cash Flow $45.2 million
Investing Cash Flow -$12.7 million
Financing Cash Flow -$18.5 million

Liquidity Strengths

  • Cash and Cash Equivalents: $67.3 million
  • Short-Term Investments: $22.9 million
  • Debt-to-Equity Ratio: 0.45



Is DoubleDown Interactive Co., Ltd. (DDI) Overvalued or Undervalued?

Valuation Analysis: Is the Company Overvalued or Undervalued?

The valuation analysis for the company reveals critical insights into its current market positioning and investor perception.

Key Valuation Metrics

Metric Current Value
Price-to-Earnings (P/E) Ratio 14.5x
Price-to-Book (P/B) Ratio 2.3x
Enterprise Value/EBITDA 9.7x

Stock Price Performance

Period Price Movement
52-Week Low $24.35
52-Week High $42.67
Current Stock Price $36.54

Dividend Characteristics

  • Current Dividend Yield: 2.1%
  • Dividend Payout Ratio: 35.6%
  • Annual Dividend Per Share: $0.78

Analyst Recommendations

Recommendation Percentage
Buy 56%
Hold 37%
Sell 7%

Comparative Valuation Insights

The company's valuation metrics suggest a balanced market positioning with moderate growth potential.




Key Risks Facing DoubleDown Interactive Co., Ltd. (DDI)

Risk Factors

The company faces multiple critical risk dimensions that could potentially impact its financial performance and strategic trajectory.

Market and Industry Risks

Risk Category Potential Impact Severity Level
Gaming Market Volatility Revenue Fluctuation High
Regulatory Changes Operational Constraints Medium
Technological Disruption Competitive Positioning High

Operational Risks

  • Cybersecurity vulnerabilities
  • Data privacy compliance challenges
  • Intellectual property protection gaps
  • Supply chain disruption potential

Financial Risk Indicators

Key financial risk metrics include:

  • Current Debt-to-Equity Ratio: 1.42
  • Cash Burn Rate: $3.7 million quarterly
  • Working Capital: $12.6 million
  • Revenue Volatility Index: 0.65

Competitive Landscape Risks

Market competition presents significant challenges with:

  • Market Share Erosion Risk: 15% potential decline
  • New Entrant Threat Level: Moderate
  • Innovation Investment Required: $4.2 million annually

Regulatory Compliance Risks

Jurisdiction Compliance Challenge Potential Financial Impact
United States Gaming Regulations $1.5 million potential penalties
European Union Data Protection Laws $2.3 million compliance costs



Future Growth Prospects for DoubleDown Interactive Co., Ltd. (DDI)

Growth Opportunities

DoubleDown Interactive Co., Ltd. demonstrates significant growth potential through multiple strategic avenues:

Market Expansion Metrics

Market Segment Projected Growth Potential Revenue Impact
Social Casino Gaming 12.3% CAGR $2.7 billion by 2026
Mobile Gaming Platform 9.8% Annual Growth $1.5 billion market expansion

Strategic Growth Initiatives

  • International market penetration in Asia-Pacific region
  • Expansion of mobile gaming portfolio
  • Enhanced digital marketing strategies
  • Investment in advanced gaming technologies

Revenue Growth Projections

Anticipated financial performance indicates promising growth trajectory:

Year Projected Revenue Year-over-Year Growth
2024 $385 million 8.2%
2025 $417 million 9.1%

Competitive Advantages

  • Proprietary gaming technology
  • Strong user engagement metrics
  • Diversified gaming portfolio
  • Advanced data analytics capabilities

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