DoubleDown Interactive (NASDAQ:DDI) Releases Earnings Results, Misses Expectations By $0.13 EPS

DoubleDown Interactive (NASDAQ:DDI) posted its quarterly earnings results on Wednesday. The company reported $0.49 earnings per share for the quarter, missing the consensus estimate of $0.62 by ($0.13), Zacks reports. DoubleDown Interactive had a return on equity of 12.92% and a net margin of 32.94%.The business had revenue of $95.79 million during the quarter, compared to analysts’ expectations 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 Price Performance

DDI stock opened at $8.45 on Thursday. DoubleDown Interactive has a 52-week low of $8.09 and a 52-week high of $11.25. The business has a fifty day moving average of $8.79 and a two-hundred day moving average of $9.08.

Wall Street Analyst Weigh In

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

Institutional Trading of DoubleDown Interactive

Institutional investors and hedge funds have recently bought and sold shares of the stock. Goldman Sachs Group Inc. lifted its position in DoubleDown Interactive by 2.3% in the fourth quarter. Goldman Sachs Group Inc. now owns 80,391 shares of the company’s stock valued at $694,000 after buying an additional 1,789 shares during the last quarter. Osaic Holdings Inc. raised its stake in shares of DoubleDown Interactive by 338.6% in the 2nd quarter. Osaic Holdings Inc. now owns 3,105 shares of the company’s stock valued at $30,000 after acquiring an additional 2,397 shares during the period. Boston Partners lifted its holdings in shares of DoubleDown Interactive by 26.8% in the 3rd quarter. Boston Partners now owns 95,744 shares of the company’s stock worth $894,000 after acquiring an additional 20,216 shares during the last quarter. Acadian Asset Management LLC boosted its position in shares of DoubleDown Interactive by 124.7% during the 1st quarter. Acadian Asset Management LLC now owns 60,282 shares of the company’s stock worth $591,000 after purchasing an additional 33,459 shares during the period. Finally, Citadel Advisors LLC increased its holdings in DoubleDown Interactive by 261.4% in the 3rd quarter. Citadel Advisors LLC now owns 60,163 shares of the company’s stock valued at $562,000 after purchasing an additional 43,517 shares during the last quarter.

DoubleDown Interactive Company Profile

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.