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DoubleDown (DDI) Q2 Earnings & Revenues Beat, ARPDAU Up Y/Y
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DoubleDown Interactive Co., Ltd. (DDI - Free Report) reported stellar second-quarter 2024 results with earnings and revenues topping the Zacks Consensus Estimate and increasing on a year-over-year basis.
The quarterly performance uptrend was backed by increases in its social casino business along with synergies from the introduction of new meta-features in its flagship app, DoubleDown Casino. The enhanced application continued to showcase strong improvements in player engagement and monetization, reflecting year-over-year growth in Average Revenue Per Daily Active User (ARPDAU) and average revenue per payer. The SuprNation iGaming operator, acquired by the company in October 2023, added notably to the quarter’s top-line growth.
Furthermore, the company’s disciplined approach to user acquisition and R&D spending along with other efficient operational approaches aided the bottom line. Going forward, it aims to focus on driving further increases in player monetization while simultaneously evaluating both organic and inorganic growth opportunities to enhance its growth prospects and create shareholder value.
Inside the Headlines
The company reported earnings per share (EPS) of 67 cents, which surpassed the Zacks Consensus Estimate of 48 cents by 39.6%. In the prior-year quarter, it reported an EPS of 49 cents.
Revenues of $88.2 million also topped the consensus mark of $84 million by 5.2%. The top line grew 17.3% on a year-over-year basis. SuprNation iGaming operations contributed $7.9 million to the quarter’s revenues.
ARPDAU for the company’s social casino/free-to-play games increased to $1.33 from $1.05 reported a year ago. The average monthly revenue per payer for the social casino/free-to-play games also increased 22.6% year over year to $288.
Operating Results
Adjusted EBITDA increased to $37 million from $27.6 million reported in the year-ago quarter. Adjusted EBITDA margin expanded 520 basis points to 41.9% year over year.
Total operating expenses increased year over year to $52 million from $47.7 million. The rise was due to increased general and administrative expenses, and depreciation and amortization expenses.
Financial Information
As of Jun 30, 2024, DoubleDown had cash and cash equivalents of $269.2 million compared with $206.9 million as of Dec 31, 2023.
At the end of the first six months of 2024, net cash from operating activities was $69.3 million against $37.6 million of net cash used in operating activities in the comparable year-ago period.
Choice Hotels International, Inc. (CHH - Free Report) delivered lower-than-expected second-quarter 2024 results, with adjusted earnings and revenues missing the Zacks Consensus Estimate. However, both metrics increased on a year-over-year basis.
The quarter’s performance was backed by strong demand trends across the company’s diversified portfolio of brands. This uptrend in demand aided in accelerating global hotel openings, expanding international market reach and increasing the size of its rewards program. Moreover, CHH’s versatile business model and accretive growth strategies ensure the support required to foster its growth trends.
Planet Fitness, Inc. (PLNT - Free Report) reported stellar second-quarter 2024 results, with adjusted earnings and revenues beating the Zacks Consensus Estimate and increasing year over year.
The quarter’s performance was driven by contributions from new store openings, higher royalty revenues and an asset-light growth model. The strength in the contributions from these factors was reflected in the year-over-year increase in system-wide same-store sales. PLNT aims to define its growth prospects by capitalizing on meaningful opportunities across the industry, globally. Also, its aim to deliver enhanced shareholder value bodes well.
Wynn Resorts, Limited (WYNN - Free Report) reported lower-than-expected second-quarter 2024 results, wherein adjusted earnings and revenues missed the Zacks Consensus Estimate. On the other hand, both metrics rose year over year.
The quarter’s results reflect strong contributions from the Wynn Palace, Wynn Macau and Las Vegas operations, partially offset by softer contributions from the Encore Boston Harbor operations. The company’s continuous investments in expanding the business operations on a global scale along with ensuring shareholder value are commendable. This prudent attitude positions WYNN well for growth in 2024 and beyond.
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DoubleDown (DDI) Q2 Earnings & Revenues Beat, ARPDAU Up Y/Y
DoubleDown Interactive Co., Ltd. (DDI - Free Report) reported stellar second-quarter 2024 results with earnings and revenues topping the Zacks Consensus Estimate and increasing on a year-over-year basis.
The quarterly performance uptrend was backed by increases in its social casino business along with synergies from the introduction of new meta-features in its flagship app, DoubleDown Casino. The enhanced application continued to showcase strong improvements in player engagement and monetization, reflecting year-over-year growth in Average Revenue Per Daily Active User (ARPDAU) and average revenue per payer. The SuprNation iGaming operator, acquired by the company in October 2023, added notably to the quarter’s top-line growth.
Furthermore, the company’s disciplined approach to user acquisition and R&D spending along with other efficient operational approaches aided the bottom line. Going forward, it aims to focus on driving further increases in player monetization while simultaneously evaluating both organic and inorganic growth opportunities to enhance its growth prospects and create shareholder value.
Inside the Headlines
The company reported earnings per share (EPS) of 67 cents, which surpassed the Zacks Consensus Estimate of 48 cents by 39.6%. In the prior-year quarter, it reported an EPS of 49 cents.
Revenues of $88.2 million also topped the consensus mark of $84 million by 5.2%. The top line grew 17.3% on a year-over-year basis. SuprNation iGaming operations contributed $7.9 million to the quarter’s revenues.
DoubleDown Interactive Co., Ltd. Sponsored ADR Price, Consensus and EPS Surprise
DoubleDown Interactive Co., Ltd. Sponsored ADR price-consensus-eps-surprise-chart | DoubleDown Interactive Co., Ltd. Sponsored ADR Quote
ARPDAU for the company’s social casino/free-to-play games increased to $1.33 from $1.05 reported a year ago. The average monthly revenue per payer for the social casino/free-to-play games also increased 22.6% year over year to $288.
Operating Results
Adjusted EBITDA increased to $37 million from $27.6 million reported in the year-ago quarter. Adjusted EBITDA margin expanded 520 basis points to 41.9% year over year.
Total operating expenses increased year over year to $52 million from $47.7 million. The rise was due to increased general and administrative expenses, and depreciation and amortization expenses.
Financial Information
As of Jun 30, 2024, DoubleDown had cash and cash equivalents of $269.2 million compared with $206.9 million as of Dec 31, 2023.
At the end of the first six months of 2024, net cash from operating activities was $69.3 million against $37.6 million of net cash used in operating activities in the comparable year-ago period.
Zacks Rank & Recent Consumer Discretionary Releases
DoubleDown currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Choice Hotels International, Inc. (CHH - Free Report) delivered lower-than-expected second-quarter 2024 results, with adjusted earnings and revenues missing the Zacks Consensus Estimate. However, both metrics increased on a year-over-year basis.
The quarter’s performance was backed by strong demand trends across the company’s diversified portfolio of brands. This uptrend in demand aided in accelerating global hotel openings, expanding international market reach and increasing the size of its rewards program. Moreover, CHH’s versatile business model and accretive growth strategies ensure the support required to foster its growth trends.
Planet Fitness, Inc. (PLNT - Free Report) reported stellar second-quarter 2024 results, with adjusted earnings and revenues beating the Zacks Consensus Estimate and increasing year over year.
The quarter’s performance was driven by contributions from new store openings, higher royalty revenues and an asset-light growth model. The strength in the contributions from these factors was reflected in the year-over-year increase in system-wide same-store sales. PLNT aims to define its growth prospects by capitalizing on meaningful opportunities across the industry, globally. Also, its aim to deliver enhanced shareholder value bodes well.
Wynn Resorts, Limited (WYNN - Free Report) reported lower-than-expected second-quarter 2024 results, wherein adjusted earnings and revenues missed the Zacks Consensus Estimate. On the other hand, both metrics rose year over year.
The quarter’s results reflect strong contributions from the Wynn Palace, Wynn Macau and Las Vegas operations, partially offset by softer contributions from the Encore Boston Harbor operations. The company’s continuous investments in expanding the business operations on a global scale along with ensuring shareholder value are commendable. This prudent attitude positions WYNN well for growth in 2024 and beyond.