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Doubledown Interactive Co (DDI)
NASDAQ:DDI
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Doubledown Interactive Co
(NASDAQ:DDI)
Rating:75Outperform
Price Target:―
Positive Factors
Monetization
The 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 Growth
The acquisition of SuprNation provides entry into the real money iGaming market, offering a sustainable growth opportunity with positive secular trends.
Valuation
DoubleDown 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.
Negative Factors
Market Saturation
DoubleDown Casino continues to experience strong user monetization metrics and cash flow despite concerns about market saturation.
Sector Performance
The mature Social Casino operation is forecast to decline at a 5%-6% CAGR through 2027, though it remains a stable cash flow business.
User Base Decline
DoubleDown is executing well against a temporarily declining user base, with plenty of competition in the social casino space.
Doubledown Interactive Co (DDI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$469.27M
Dividend YieldN/A
Average Volume (3M)57.44K
Price to Earnings (P/E)4.4
Beta (1Y)0.55
Revenue Growth0.77%
EPS Growth-8.46%
CountryUS
Employees190
SectorCommunication Services
Sector Strength92
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)8.82
Shares Outstanding49,553,440
10 Day Avg. Volume66,506
30 Day Avg. Volume57,439
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap0.07
Enterprise Value/Revenue0.10
Enterprise Value/Gross Profit0.14
Enterprise Value/Ebitda0.22
Forecast
1Y Price Target
$19.00Price Target Upside100.63% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
Doubledown Interactive Co Business Overview & Revenue Model
Company DescriptionDoubledown Interactive Co (DDI) is a leading developer and publisher of digital games, primarily focusing on the social casino gaming sector. The company is known for its flagship product, DoubleDown Casino, which provides players with a virtual casino experience featuring a variety of slot machines, poker, and other classic casino games. DDI operates primarily in the mobile gaming and social media platforms, offering users engaging and interactive gaming experiences.
How the Company Makes MoneyDoubledown Interactive Co generates revenue primarily through the sale of virtual currency within its games. Players purchase these in-game currencies to enhance their gaming experience, allowing them to play longer or access special features. The company's freemium model attracts a wide user base who can play for free but are incentivized to make in-app purchases for additional benefits. Key revenue streams include microtransactions, in-game advertisements, and partnerships with social media and mobile platforms to reach a broader audience. Additionally, the company may benefit from collaborations with other gaming developers and platforms to expand its market presence and introduce new games.
Doubledown Interactive Co Earnings Call Summary
Earnings Call Date:Aug 12, 2025
(Q2-2025)
| % Change Since: -0.53%|
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong cash flow and significant growth in the iGaming segment, particularly through SuprNation, and strategic expansion into Europe with the acquisition of WHOW Games. However, these positive aspects were offset by a notable decline in social casino revenue and reduced profitability. The financial performance indicates a mixed outlook, with both promising growth areas and existing challenges.Q2-2025 Updates
Positive Updates
Strong Cash Flow and Revenue Diversification
DoubleDown Interactive reported Q2 consolidated revenue of $84.8 million, with $69.3 million from social casino operations and $15.5 million from the iGaming business, SuprNation. Cash flow from operations was $19.7 million for the quarter, totaling $60.1 million for the first half of 2025.
SuprNation Growth
SuprNation's Q2 revenue of $15.5 million was the highest quarterly performance since its acquisition, marking a $2.3 million increase from Q1 2025. This represents a near doubling of iGaming revenues, increasing 96% from Q2 2024.
Increased Player Conversion
Payer conversion rate for the social casino apps increased to 7% in Q2 2025 from 6.7% in Q2 2024, demonstrating improved monetization strategies.
Strategic Acquisition
DoubleDown completed the acquisition of WHOW Games, a social casino operator in Germany, expanding its presence in Europe and diversifying its revenue sources.
Negative Updates
Decline in Social Casino Revenue
Social casino revenues declined 14% year-over-year and were down approximately 1.5% from Q1 2025, indicating challenges in maintaining growth in this segment.
Profit Decline
Profit excluding noncontrolling interest for Q2 2025 was $21.9 million, down from $33.2 million in Q2 2024. This was primarily due to lower revenue and increased unrealized loss on foreign currency.
Decreased Net Cash Flows
Net cash flows provided by operating activities in Q2 2025 were $19.7 million, compared to $34.8 million in Q2 2024 and $41.1 million in Q1 2025, primarily due to income tax payment timing.
Company Guidance
In the recent earnings call for DoubleDown Interactive, the company reported a second-quarter 2025 revenue of $84.8 million, with $69.3 million generated from social casino operations and $15.5 million from their iGaming business, SuprNation. Adjusted EBITDA was $33.5 million, representing a margin of 39.5%. The company highlighted a payer conversion rate of 7%, an increase from both the previous year and the first quarter of 2025, and stable ARPU at $1.33. Direct-to-consumer revenue surpassed 15% of total social casino revenue, enhancing profitability. DoubleDown's acquisition of WHOW Games is expected to diversify their geographic presence and strengthen their social casino offerings, particularly in the European market. Cash flow from operations was $19.7 million for the quarter, contributing to a first-half total of $60.1 million. The company's robust cash position was noted at $481.2 million before the WHOW Games acquisition, which cost approximately $64 million.Doubledown Interactive Co Financial Statement Overview
Summary
Doubledown Interactive Co demonstrates strong financial performance. The company has shown robust profitability with a net profit margin of 36.3% and effective cash flow management, boasting a free cash flow growth rate of 416.9% from 2023 to 2024. The balance sheet is solid with low leverage, although there is a concern over the decrease in total assets.Income Statement
Doubledown Interactive Co shows strong profitability with a consistent increase in net income and EBIT margins over recent years. The 2024 figures highlight a gross profit margin of 69.7% and a net profit margin of 36.3%, both indicating robust profitability. The revenue growth rate from 2023 to 2024 was 10.5%, showcasing a healthy upward trend. However, past fluctuations in revenue and profit margins indicate some degree of volatility.85
Very Positive
Balance Sheet
The company maintains a solid balance sheet with a low debt-to-equity ratio of 0.05 in 2024, reflecting conservative leverage. The equity ratio stands strong at 92.9%, indicating a high level of financial stability. However, the company has shown a decrease in total assets over time, which could signal potential risks if this trend continues.78
Positive
Cash Flow
The cash flow statement reveals impressive improvements, with a remarkable free cash flow growth rate of 416.9% from 2023 to 2024. The operating cash flow to net income ratio of 1.20 suggests efficient cash generation from operations. Free cash flow consistently exceeds net income, highlighting strong cash flow management. These factors contribute to a robust cash position, enhancing financial flexibility.88
Very Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 341.33M | 308.86M | 321.03M | 363.20M | 358.34M |
| Gross Profit | 237.79M | 282.93M | 211.72M | 236.59M | 232.09M |
| EBITDA | 170.01M | 136.72M | -263.64M | 120.54M | 117.58M |
| Net Income | 124.02M | 100.89M | -233.98M | 78.11M | 53.62M |
Balance Sheet | |||||
| Total Assets | 906.16M | 803.34M | 792.05M | 969.92M | 806.83M |
| Cash, Cash Equivalents and Short-Term Investments | 414.85M | 274.99M | 285.24M | 242.06M | 63.19M |
| Total Debt | 38.69M | 46.35M | 44.13M | 49.94M | 56.82M |
| Total Liabilities | 68.82M | 75.45M | 165.83M | 105.93M | 107.32M |
| Stockholders Equity | 841.91M | 727.73M | 626.23M | 863.99M | 699.51M |
Cash Flow | |||||
| Free Cash Flow | 147.56M | 28.53M | 50.52M | 94.30M | 99.63M |
| Operating Cash Flow | 148.45M | 28.71M | 50.79M | 96.11M | 99.85M |
| Investing Cash Flow | -15.61M | -30.27M | -67.83M | -1.81M | -2.17M |
| Financing Cash Flow | -2.01M | 0.00 | -2.91M | 86.04M | -76.27M |
Doubledown Interactive Co Technical Analysis
Negative
9.47
Price Trends
9.61
Negative
9.77
Negative
10.67
Negative
Market Momentum
-0.07
Negative
47.01
Neutral
66.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DDI, the sentiment is Negative. The current price of 9.47 is below the 20-day moving average (MA) of 9.52, below the 50-day MA of 9.61, and below the 200-day MA of 10.67, indicating a bearish trend. The MACD of -0.07 indicates Negative momentum. The RSI at 47.01 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DDI.
Doubledown Interactive Co Risk Analysis
Doubledown Interactive Co disclosed 54 risk factors in its most recent earnings report. Doubledown Interactive Co reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 2 New Risks
1.
There can be no assurance that the adoption of the International Financial Reporting Standards, or IFRS, will not adversely affect our reported results of operations or financial condition. Q4, 2023
2.
Failure to comply with regulatory requirements in a particular jurisdiction, or the failure to successfully obtain a license or permit applied for in a particular jurisdiction, could impact SuprNation's ability to comply with licensing and regulatory requirements in other jurisdictions, or could cause the rejection of license applications or cancellation of existing licenses in other jurisdictions, or could cause financial institutions, online and mobile platforms, advertisers and distributors to stop providing services to Supernation which it relies upon to receive payments from, or distribute amounts to, its users, or otherwise to deliver and promote our product offerings and services. Q4, 2023
Doubledown Interactive Co Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $459.74M | 7.84 | 14.21% | ― | -4.71% | -14.88% | |
75 Outperform | $469.27M | 4.41 | 12.33% | ― | 0.77% | -8.46% | |
67 Neutral | $824.66M | 49.74 | 5.00% | ― | 12.60% | 64.81% | |
60 Neutral | $43.84B | 1.71 | -10.46% | 3.98% | 2.32% | -37.93% | |
57 Neutral | $594.02M | ― | -42.15% | ― | -13.60% | 69.70% | |
52 Neutral | $127.85M | ― | -12.32% | ― | -13.95% | -75.02% | |
50 Neutral | $178.19M | 25.25 | -75.68% | ― | -10.52% | -420.74% |
* Communication Services Sector Average
Performance Comparison
DDI
Doubledown Interactive Co
9.47
-4.70
-33.17%
GRVY
Gravity Co
64.92
2.28
3.64%
FVRR
Fiverr International
23.62
-2.03
-7.91%
THRY
Thryv Holdings
13.50
-4.34
-24.33%
SEAT
Vivid Seats
16.73
-74.27
-81.62%
MYPS
PLAYSTUDIOS
0.96
-0.54
-36.00%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.