Cash FlowThe company has built a strong cash flow machine with a free cash flow conversion of nearly 100% of adjusted EBITDA, which could lead to strategic capital deployment opportunities.
MonetizationThe company’s ability to monetize its base, converting nearly 7% of its active users into active payers, is impressive, tracking at over 3x the industry average.
Strategic PositioningWith a well-established and ever-expanding European presence and expertise in social casino games, DoubleDown should be able to hit the ground running should RMG be allowed by U.S. states.
ValuationDoubleDown Interactive is seen as an attractive special situation with the potential for a significant value unlock due to its cash position and valuation being well below its peers.