1. Investment Snapshot
2. Thesis
3. Valuation & Price Target
4. Business & Product Moat
5. People & Governance
6. Market & Macro
7. Financial Quality
8. Risk Register
9. Prediction Market
10. 𝕏 Posts
Discussion
1. Investment Snapshot
2. Thesis
3. Valuation & Price Target
4. Business & Product Moat
5. People & Governance
6. Market & Macro
7. Financial Quality
8. Risk Register
9. Prediction Market
10. 𝕏 Posts
Discussion
1. Investment Snapshot
2. Metrics vs Peers
3. Price Chart
4. Valuation
5. Offer Terms
6. Financial Statements
Discussion
Research report, target price, DCF and forensic scores are for subscribers. View plans
Symbol
DDI
Listed on
2021-08-31
Sector
Information Technology
Subsector
IT Services
Offer Price
$18.00
first filed $17.00–$19.00Shares Offered
6.32M
49.55M
$892.0M
12.7%
Implied Upside vs Midpoint
Description
We are a leading developer and publisher of digital games on mobile and web-based platforms. We are the creators of multi-format interactive entertainment experiences for casual players. Our flagship game, DoubleDown Casino, has been in the top 20 grossing mobile games annually on Apple App Store since 2016, according to App Annie. Our games cater to an expanding casual gaming audience around the world. We have been an early pioneer in the social casino gaming segment of casual gaming and were among the initial publishers to launch a social casino game on the Facebook platform in 2010 with the release of DoubleDown Casino. As the market has shifted materially to mobile platforms in recent years, we have also embraced new distribution channels for our games, which have significantly expanded our overall reach and market opportunity. Our games attract players of social casino and casual games, and have been installed over 115 million times to date. During 2019 and 2020, an average of 2.8 million players and 2.9 million players, respectively, played our games each month, and for the six months ended June 30, 2021, an average of over 2.5 million players played our games each month. Our market opportunity includes casual gaming globally, which includes slots, puzzle, card, match three and other similar games. Eilers & Krejcik estimated that the global market for mobile casual games was $25.7 billion in 2020, an increase of approximately 25% from 2019. Within the social casino segment of casual gaming, which includes free-to-play online slots, poker, table games, and bingo, DoubleDown Casino was ranked third among the top game titles by revenue during 2020, according to Eilers & Krejcik. The global social casino market was $7.0 billion in 2020, and is estimated to grow at 4.2% over the next four years to reach $8.6 billion by 2025, according to Eilers & Krejcik. As one of the leading players in social casino games today, we believe we are well-positioned to combine our social casino expertise with additional game elements to deliver entertaining playing experiences for our players. We believe that success in casual gaming requires a combination of creativity and data science to acquire, engage, and retain players. We have a deep understanding of our players which allows us to hone our game development, content strategy, and live game operations. Our all-in-one approach that combines numerous pieces of content within a single game streamlines the player experience while our best-in-class gaming elements, including graphics, user interface, and meta-features, such as daily challenges and loyalty programs, keep our players engaged. Collectively, our players exhibit higher monetization compared to that of our social casino peers, which we believe reflects our successful approach. Our average revenue per daily active user, or ARPDAU, was $0.83 during 2020, higher than the $0.58 average of three primary social casino peers during the same period based upon data from Eilers & Krejcik and the $0.02 median for all mobile games during the second quarter of 2019 according to Game Analytics. We believe our access to content is among the broadest in the gaming industry. In addition to our internally developed content, we also have access to content from International Game Technology PLC (“IGT”), one of the largest casino equipment suppliers in the world, and creator of well-known slot games such as Cleopatra, Wolf Run, and Megabucks, as well as from DoubleU Games, our controlling shareholder and a leading developer and publisher of social casino games based in Korea. Collectively, we have had access to over 2,000 slot titles through our partnerships with IGT and DUG and we have internally developed a catalogue of 31 original slot titles. We continue to provide our players with a superior gaming experience by leveraging our three content pillars: DDI, IGT, and DUG. Our financial performance has benefitted from the differentiated way in which we approach our market opportunity. Our revenue was $358.3 million in 2020, up from $273.6 million in 2019. Approximately 86.3% of our revenue was generated from the United States in 2020. --- Our Company was originally established as The8Games Co., Ltd., in Seoul, Korea in 2008, an interactive entertainment studio focused on the development and publishing of casual games and mobile applications. In 2016, DUG acquired a controlling stake in our Company and, in 2017, DUG acquired the remaining stake in our Company, making us a wholly-owned subsidiary of DUG. Later in 2017, DUG also acquired DDI-US through our Company, believing that our strengths could be highly complementary to DDI-US for creating more powerful social casino gaming content. We changed our name to DoubleDown Interactive Co., Ltd. in December 2019. In February 2020, we acquired Korea-based Double8 Games from DoubleU Games. Our agent for service of process in the United States is DoubleDown Interactive, LLC, 605 5th Avenue, Suite 300, Seattle, Washington 98104. Our principal executive offices are located at 13F, Gangnam Finance Center, 152, Teheran-ro Gangnam-gu, Seoul 06236, Korea. Our main telephone number is +82-2-501-7216. Our internet website is www.doubledowninteractive.com.
▲ Cheaper than its peers on 2 of 2 valuation measures
| Metric | Value | Peer median | Among peers | Trend |
|---|---|---|---|---|
EV / revenue | 2.4x | 8.1x | ||
Price / earnings | 16.6x | >100x | ||
Revenue growth | 31.0% | 20.6% | ||
Operating margin | 24.8% | 0.8% | ||
Net margin | 15.0% | 0.6% | ||
Free cash flow margin | 27.8% | 5.7% | ||
Rule of 40 | 64.6% | 14.4% | ||
Net cash / market cap | 1.9% | 2.4% | ||
Debt / equity | 0.07 | 0.00 | ||
Current ratio | 3.53 | 2.03 | ||
9 premium metrics: DCF value / price, Growth the price needs: how common, Last 12 months vs full year and 6 more Unlock | ||||
= Priced at $18.00, 0% above the midpoint of the first filed range ($17.00–$19.00, 2020-06-18).
Each filing is plotted ahead of the first trading day on the price chart.
| Filed | Form | Price range | Price | Shares offered | Deal size |
|---|---|---|---|---|---|
| 2020-06-18 | F-1/A | $17.00–$19.00 | — | 11,000,000 | $198.0M |
| 2020-06-30 | F-1/A | — | — | 5,500,000 | — |
| 2021-07-20 | F-1 | $18.00–$20.00 | — | 6,316,000 | $120.0M |
| 2021-08-20 | F-1/A | $18.00–$20.00 | — | 6,316,000 | $120.0M |
| 2021-09-01 | 424B4 | — | $18.00 | 6,316,000 | $113.7M |
DoubleDown Interactive Co., Ltd. income statement and balance sheet, FY Dec 2022 to FY Dec 2025, as reported in SEC filings.
| Metric | FY Dec 2022after listing | FY Dec 2023after listing | FY Dec 2024after listing | FY Dec 2025after listing |
|---|---|---|---|---|
| Revenue | $321M | $309M | $341M | $360M |
| Gross profit | — | $210M | $238M | $258M |
| Operating income | ($314M) | $119M | $137M | $127M |
| Net income | ($234M) | $101M | $124M | $103M |
| Revenue growth | — | −3.8% | 10.5% | 5.5% |
| Gross margin | — | 67.9% | 69.7% | 71.8% |
| Operating margin | −97.8% | 38.4% | 40.1% | 35.3% |
| Net margin | −72.9% | 32.7% | 36.5% | 28.5% |
| Metric | FY Dec 2022after listing | FY Dec 2023after listing | FY Dec 2024after listing | FY Dec 2025after listing |
|---|---|---|---|---|
| Total assets | $792M | — | $906M | $1.0B |
| Total liabilities | $166M | — | $64.1M | $90.2M |
| Total equity | $626M | $728M | $842M | $950M |
| Cash & equivalents | $217M | $207M | $335M | $389M |