DoubleDown Q1 Earnings & Revenues Miss Estimates, ARPDAU Up Y/Y

DoubleDown Interactive Co., Ltd. DDI first-quarter 2025 earnings and revenues missed their respective Zacks Consensus Estimate. Following the results, the company’s shares declined nearly 2% in the after-hours trading session yesterday.

The company’s results were hurt by dismal social casino/free-to-play games revenues.

Inside the Headlines of DDI’s Q1 Results

The company reported earnings per share (EPS) of 48 cents, which missed the Zacks Consensus Estimate of 55 cents by 12.7%. In the prior-year quarter, it reported an EPS of 61 cents. (See the Zacks Earnings Calendar to stay ahead of market-making news.)

Revenues of $83.5 million also missed the consensus mark of $84 million. The top line declined 5.2% on a year-over-year basis. SuprNation iGaming operations contributed $13.2 million (up 59% year over year) to the quarter’s revenues. However, revenues from the social casino/free-to-play games were $70.3 million in the quarter, down 12% year over year.

Average revenue per daily active user (ARPDAU) for the company’s social casino/free-to-play games increased to $1.29 from $1.26 reported a year ago. The average monthly revenue per payer for the social casino/free-to-play games decreased 1.8% year over year to $276.

DDI’s Operating Results

Adjusted EBITDA decreased to $30.8 million from $32.7 million reported in the year-ago quarter. Adjusted EBITDA margin contracted 20 basis points to 36.9% year over year.

Total operating expenses decreased year over year to $53.9 million from $57 million. This decline was primarily due to a decrease in cost of revenues resulting from lower revenues and reduced research and development expenses, partially offset by an increase in general and administrative expenses.

DDI’s Financial Information

As of March 31, 2025, DoubleDown had cash and cash equivalents of $365.7 million compared with $334.9 million as of Dec. 31, 2024.

At the end of the first quarter, net cash from operating activities was $41.1 million compared with $35.7 million in the year-ago period.

Zacks Rank of DDI

DoubleDown currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Consumer Discretionary Releases

Norwegian Cruise Line Holdings Ltd. NCLH reported first-quarter 2025 results, with earnings and revenues missing the Zacks Consensus Estimate. Both top and bottom lines decreased on a year-over-year basis.

Results in the quarter were hurt by a 2% decline in Capacity Days, stemming from a higher number of Berths out of service due to larger ships undergoing dry-dock, as well as a strategic move to reduce passenger air participation rates. For 2025, Norwegian Cruise anticipates occupancy to be approximately 102.5% compared with the prior guidance of 103.4% and Capacity Days to be about 24.545 million.

MGM Resorts International MGM reported first-quarter 2025 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and bottom lines declined from the prior-year quarter’s level.

Management remains optimistic about the outlook for the rest of 2025, supported by strong forward bookings and expectations for record hotel performance in April on the Las Vegas Strip. MGM Resorts stated progress on the $200 million EBITDA enhancement plan and expects more than $150 million to be realized in 2025.

Caesars Entertainment, Inc. CZR reported mixed first-quarter 2025 results, with earnings missing the Zacks Consensus Estimate and revenues surpassing the same. Nonetheless, both top and bottom lines improved on a year-over-year basis.

Caesars Entertainment’s first-quarter performance was driven by record results in the Digital segment. Growth in the regional segment, supported by recently opened properties, and solid performance in Las Vegas, despite a tough comparison to last year’s Super Bowl period, also aided the quarter’s performance.

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This article originally published on Zacks Investment Research (zacks.com).

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