DoubleDown Interactive (NASDAQ:DDI) Releases Earnings Results

DoubleDown Interactive (NASDAQ:DDI) issued its quarterly earnings data on Wednesday. The company reported $0.49 EPS for the quarter, missing analysts’ consensus estimates of $0.62 by ($0.13), Zacks reports. DoubleDown Interactive had a return on equity of 11.44% and a net margin of 28.48%.The company had revenue of $95.79 million for the quarter, compared to analyst estimates of $99.61 million.

Here are the key takeaways from DoubleDown Interactive’s conference call:

• Q4 revenue of $95.8M (+17% YoY) and adjusted EBITDA of $40.6M (+16% YoY), with Q4 operating cash flow $42.6M and FY operating cash flow $136.8M, leaving a net cash position of about $455M.
• Social casino revenue grew 9% to $79.7M30% of social casino revenue and management plans to further expand DTC.
• SuprNation iGaming revenue rose 78% to $16.1M and the company launched its first iGaming title (“Las Vegas”) in the U.K.; however, marketing spend is being moderated to preserve ROI as the business scales.
• Management recorded a non‑cash goodwill impairment related to SuprNation (about $8M), which drove a 31% drop in GAAP profit and lower EPS, though Adjusted EBITDA was unaffected.
• Despite a sizable cash balance, management reiterated a focus on M&A and growth rather than committing to buybacks or dividends, leaving no clear near‑term capital‑return plan for shareholders.

DoubleDown Interactive Stock Performance

DoubleDown Interactive stock opened at $8.61 on Friday. DoubleDown Interactive has a one year low of $8.09 and a one year high of $11.25. The company has a 50-day simple moving average of $8.78 and a 200-day simple moving average of $9.08.

Institutional Investors Weigh In On DoubleDown Interactive

Hedge funds have recently made changes to their positions in the business. Ameriprise Financial Inc. increased its position in DoubleDown Interactive by 10.2% in the 3rd quarter. Ameriprise Financial Inc. now owns 1,357,163 shares of the company’s stock valued at $12,676,000 after acquiring an additional 126,031 shares during the period. Hudson Bay Capital Management LP bought a new position in shares of DoubleDown Interactive in the second quarter worth $5,759,000. Stonehill Capital Management LLC increased its holdings in shares of DoubleDown Interactive by 49.1% during the third quarter. Stonehill Capital Management LLC now owns 190,605 shares of the company’s stock valued at $1,780,000 after purchasing an additional 62,735 shares during the period. Millennium Management LLC raised its stake in shares of DoubleDown Interactive by 100.2% during the third quarter. Millennium Management LLC now owns 116,677 shares of the company’s stock valued at $1,090,000 after purchasing an additional 58,395 shares in the last quarter. Finally, Boston Partners raised its stake in shares of DoubleDown Interactive by 26.8% during the third quarter. Boston Partners now owns 95,744 shares of the company’s stock valued at $894,000 after purchasing an additional 20,216 shares in the last quarter.

Wall Street Analyst Weigh In

A number of analysts have recently issued reports on DDI shares. Weiss Ratings reiterated a “hold (c-)” rating on shares of DoubleDown Interactive in a research note on Wednesday, January 21st. Loop Capital set a $16.00 price objective on shares of DoubleDown Interactive in a report on Monday, November 3rd. Wedbush reissued an “outperform” rating and issued a $21.00 price objective on shares of DoubleDown Interactive in a research report on Tuesday, November 11th. Finally, Wall Street Zen raised DoubleDown Interactive from a “hold” rating to a “buy” rating in a research report on Saturday, November 22nd. Three investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $18.75.

About DoubleDown Interactive

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.