DoubleDown Interactive has revealed that its newly acquired igaming operator business SuprNation contributed revenue of US$8.3m in Q1 this year.
Overall company revenue increased from $77.6m in Q1 last year to $88.1m, a 14 per cent rise year-on-year.
Revenue exclusive of SuprNation, which DoubleDown acquired in October, rose by three per cent to $79.8m.
Adjusted EBITDA increased by 26 per cent from $25.4m in Q1 2023 to $31.9m in the latest reporting period, “primarily due to higher revenue and lower overall sales and marketing and research and development expenses, partially offset by higher general and administrative expenses.”
Indeed, DoubleDown said its operating expenses rose by $4.9m to $57.1m, due to the inclusion of expenses related to SuprNation operations in Q1.
DoubleDown CEO Keuk Kim said SuprNation is “off to a strong start” and said the company intends to “focus on driving revenue growth” for the operator “for the next several quarters.”
Average revenue per daily active user (ARPDAU) for the company’s social casino/free-to-play games increased to $1.26 in Q1 from $1.03 in Q1 2023 and from $1.24 in Q4 2023. Average monthly revenue in the segment rose to $281 from $221 in Q1 2023 and $279 in Q4 2023.
“Our DoubleDown Casino’s performance is benefitting from the recently introduced meta features that are further advancing our ability to improve monetisation and generate strong engagement metrics, with ARPDAU rising on a quarterly sequential basis and by 22 per cent year over year, and average revenue per payer also rising from 2023 fourth quarter levels and growing 27 per cent year over year,” Kim said.
“The strong performance of our social casino business combined with our commitment to remain disciplined with user acquisition and R&D spend delivered another quarter of strong adjusted EBITDA margin and free cash flow, with cash flow from operating activities of $34.9m in the 2024 first quarter.”
