DDI - DoubleDown Interactive GAAP EPS of -$78.47 revenue of $76.2M beats by $0.17M

• DoubleDown Interactive press release ( NASDAQ: DDI ): Q4 GAAP EPS of -$78.47.
• Revenue of $76.2M (-11.7% Y/Y) beats by $0.17M .
• Operating costs increased from $62.7 million in the fourth quarter of 2021 to $321.4 million in the fourth quarter of 2022, primarily due to a $269.9 million non-cash impairment of Goodwill that the Company took in the fourth quarter of 2022, which is a one-time charge and not re-occurring in nature.
• Operating costs would have decreased to $51.5 million (excluding the one-time Goodwill impairment of $269.9 million), primarily due to lower cost of revenues and decreased marketing expenditures.
• Adjusted EBITDA decreased from $25.8 million for the fourth quarter of 2021 to $24.7 million for the fourth quarter of 2022, resulting in an Adjusted EBITDA margin of 32.4% for the fourth quarter of 2022, compared to an Adjusted EBITDA margin of 29.9% for the fourth quarter of 2021. The decrease in Adjusted EBITDA was primarily due to lower revenue in the fourth quarter of 2022, with the higher Adjusted EBITDA margin primarily attributable to lower marketing expenditures.
• The Company recorded a net loss of $194.4 million, or a loss of $78.47 per common share on a fully diluted basis (loss of $3.92 per American Depositary Share (“ADS”)), in the fourth quarter of 2022, compared to a net income of $17.4 million, or $7.04 per common share on a fully diluted basis ($0.35 per ADS), in the fourth quarter of 2021. Note each ADS represents 0.05 share of a common share.
• Average Revenue Per Daily Active User (“ARPDAU”) increased from $0.96 in the fourth quarter of 2021 to $0.98 in the fourth quarter of 2022.
• Average monthly revenue per payer increased from $216 in the fourth quarter of 2021 to $227 in the fourth quarter of 2022.

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