UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
__________________________
FORM 6-K
__________________________
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of August, 2024
Commission File Number 001-39349
__________________________
DoubleDown Interactive Co., Ltd.
(Translation of registrant’s name into English)
__________________________
Joseph A. Sigrist, Chief Financial Officer
c/o DoubleDown Interactive, LLC
605 5th Avenue, Suite 300
Seattle, WA 98104
+1-206-408-4545
(Address of principal executive offices)
__________________________
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
x Form 20-F o Form40-F


INFORMATION CONTAINED IN THIS FORM 6-K REPORT
Issuance of Press Release; Financial Statements
On August 12, 2024, DoubleDown Interactive Co., Ltd. (the “Company”) issued a press release announcing its unaudited financial results for the second quarter ended June 30, 2024, together with its unaudited condensed consolidated financial statements for the three and six months ended June 30, 2024.
This report on Form 6-K is hereby incorporated by reference into the Company’s Registration Statement on Form F-3 (File No. 333-267422), to be a part thereof from the date on which this report is submitted, to the extent not superseded by documents or reports subsequently filed or furnished.
EXHIBIT INDEX
Exhibit
No.		Description
 99.1
 99.2
101.SCHXBRL Taxonomy Extension Schema Document
101.CALXBRL Taxonomy Extension Calculation Linkbase Document
101.DEFXBRL Taxonomy Extension Definition Linkbase Document
101.LABXBRL Taxonomy Extension Label Linkbase Document
101.PREXBRL Taxonomy Extension Presentation Linkbase Document
104Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)


SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
DOUBLEDOWN INTERACTIVE CO., LTD.
Date: August 12, 2024
By:/s/ Joseph A. Sigrist
Name: Joseph A. Sigrist
Title: Chief Financial Officer


Exhibit 99.1
g790371page4a.jpg
DoubleDown Interactive Reports Second Quarter 2024 Financial Results
SEATTLE, WASHINGTON – August 12, 2024 — DoubleDown Interactive Co., Ltd. (NASDAQ: DDI) (“DoubleDown” or the “Company”), a leading developer and publisher of digital games on mobile and web-based platforms, today announced unaudited financial results for the second quarter ended June 30, 2024.
Second Quarter 2024 vs. Second Quarter 2023 Summary:
•Revenue increased to $88.2 million in the second quarter of 2024 from $75.2 million in the second quarter of 2023. SuprNation, a European iGaming operator (“SuprNation”) which was acquired by the Company on October 31, 2023, generated total revenue of $7.9 million in the second quarter of 2024. Revenue exclusive of the contributions from SuprNation increased 7% to $80.3 million.
•Operating expenses increased to $52.0 million in the second quarter of 2024 from $47.7 million in the second quarter of 2023, primarily due to the second quarter 2024 inclusion of operating expenses related to SuprNation, partially offset by lower sales and marketing and research and development expenses.
•Net income increased to $33.3 million, or earnings per fully diluted common share of $13.39 ($0.67 per American Depositary Share (“ADS”)), in the second quarter of 2024, from net income of $24.4 million, or earnings per fully diluted common share of $9.83 ($0.49 per ADS), in the second quarter of 2023. Such increase was primarily due to higher revenue and lower overall sales and marketing and research and development expenses, partially offset by higher general and administrative expense which included new expenses for SuprNation. Each ADS represents 0.05 share of a common share.
•Adjusted EBITDA increased to $37.0 million for the second quarter of 2024 from $27.6 million in the second quarter of 2023. Adjusted EBITDA margin increased to 41.9% in the second quarter of 2024 from 36.7% in the second quarter of 2023.
•Average Revenue Per Daily Active User (“ARPDAU”) for the Company’s social casino/free-to-play games increased to $1.33 in the second quarter of 2024 from $1.05 in the second quarter of 2023 and from $1.26 in the first quarter of 2024.
•Average monthly revenue per payer for the social casino/free-to-play games increased to $288 in the second quarter of 2024 from $235 in the second quarter of 2023 and from $281 in the first quarter of 2024.

“We continued to drive strong growth across our business in the 2024 second quarter, with consolidated revenue rising 17% to $88.2 million and adjusted EBITDA increasing 34% to $37.0 million,” said In Keuk Kim, Chief Executive Officer of DoubleDown. “Revenue for our social casino business rose 7% compared to the same period in 2023, the third consecutive quarter of year-over-year growth, as we believe we continue to gain industry share. The recent introduction of new meta features in our flagship app, DoubleDown Casino, continues to help drive strong improvements in player engagement and monetization, as evidenced by ARPDAU and average revenue per payer rising year over year by 27% and 23%, respectively. Impressively, these metrics were both up on a quarterly sequential basis despite the historical seasonality in our business.

“Our SuprNation iGaming operations also had another solid quarter as 2024 second quarter revenue of $7.9 million was well above the estimated quarterly run rate the business was generating prior to our acquisition. We continue to fine-tune our go-to-market strategies for growing SuprNation’s topline while remaining focused on ensuring our near-term marketing and player engagement strategies will result in sustainable mid- and long-term profitable revenue and cash flow contributions.


“Our disciplined approach to user acquisition and R&D spend delivers strong quarterly Adjusted EBITDA margins and free cash flow. As a result, we continue to improve our already strong financial position as we ended the second quarter with an aggregate net cash position of approximately $303 million, or approximately $6.12 per ADS. Going forward, our focus will remain on prudently driving further increases in player monetization to deliver consistent free cash flow generation while simultaneously evaluating both organic and M&A focused growth opportunities to leverage our significant financial strength in order to further grow our top and bottom lines and create new value for our shareholders.”
Summary Operating Results for DoubleDown Interactive (Unaudited)
Three months ended June 30,Six months ended June 30,
2024202320242023
Revenue ($ MM)$88.2 $75.2 $176.4 $152.8 
Total operating expenses52.0 47.7 109.1 99.9 
Net income ($ MM)$33.3 $24.4 $63.6 $48.0 
Adjusted EBITDA ($ MM)$37.0 $27.6 $68.9 $53.0 
Net income margin37.7 %32.4 %36.1 %31.4 %
Adjusted EBITDA margin41.9 %36.7 %39.1 %34.7 %
Non-financial performance metrics(1)
Average MAUs (000s)1,389 1,804 1,433 1,918 
Average DAUs (000s)664 793 681 817 
ARPDAU$1.33 $1.05 $1.29 $1.04 
Average monthly revenue per payer$288 $235 $285 $228 
Payer conversion6.7 %6.0 %6.5 %5.9 %
(1)Social casino/free-to-play games only.
Second Quarter 2024 Financial Results
Revenue inclusive of the contributions from SuprNation in the second quarter of 2024 was $88.2 million, an increase of 17% from $75.2 million in the second quarter of 2023. Revenue exclusive of the contributions from SuprNation increased 7% year over year to $80.3 million, primarily reflecting higher engagement and monetization of the existing player base.
Operating expenses in the second quarter of 2024 increased 9% year over year to $52.0 million. The increase is primarily due to the inclusion of SuprNation expenses in the second quarter of 2024, which were not incurred in the second quarter of 2023 given that SuprNation was acquired in October 2023.
Net income increased to $33.3 million in the second quarter of 2024, or $13.39 per fully diluted common share ($0.67 per ADS), from net income of $24.4 million, or $9.83 per fully diluted common share ($0.49 per ADS), in the second quarter of 2023. The increase in net income was primarily due to increased revenue and lower sales and marketing and research and development expenditures, partially offset by higher general and administrative expenses which included the new expenses for SuprNation. Each ADS represents 0.05 share of a common share.
Adjusted EBITDA in the second quarter of 2024 increased 34%, or $9.4 million, to $37.0 million, compared to $27.6 million in the second quarter of 2023. Consistent with the increase in net income, the improvement in EBITDA primarily reflects higher revenue and lower sales and marketing and research and development expenses, partially offset by higher general and administrative expenses which included the new expenses for SuprNation.
Net cash flows provided by operating activities for the second quarter of 2024 was $34.4 million, compared to net cash flows used in operating activities of $37.6 million in the second quarter of 2023. The increase is primarily due to higher net income and a lower deferred tax asset impact, as well as the final payment of $95.25 million towards the Benson litigation settlement that occurred in 2023.


Conference Call
DoubleDown will hold a conference call today (August 12, 2024) at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) to discuss these results. A question-and-answer session will follow management’s presentation.
To access the call, please use the following link: DoubleDown Second Quarter 2024 Earnings Call (https://register.vevent.com/register/BI0b7c1f1a2ed7469cb191ff417bc4a1cb). After registering, an email will be sent, including dial-in details and a unique conference call access code required to join the live call. To ensure you are connected prior to the beginning of the call, please register a minimum of 15 minutes before the start of the call.
A simultaneous webcast of the conference call will be available with the following link: DoubleDown Second Quarter 2024 Earnings Webcast (https://edge.media-server.com/mmc/p/hs2vz9th/) or via the Investor Relations page of the DoubleDown website at ir.doubledowninteractive.com (https://ir.doubledowninteractive.com). For those not planning to ask a question on the conference call, the Company recommends listening via the webcast. A replay will be available on the Company’s Investor Relations website shortly after the event.
About DoubleDown Interactive
DoubleDown Interactive Co., Ltd. is 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, bringing authentic Vegas entertainment to players around the world through an online social casino experience. The Company’s flagship social casino title, DoubleDown Casino, has been a fan-favorite game on leading social and mobile platforms for years, entertaining millions of players worldwide with a lineup of classic and modern games. Following its acquisition of SuprNation in October 2023, the Company also operates three real-money iGaming sites in Western Europe.
Safe Harbor Statement
Certain statements contained in this press release are “forward-looking statements” about future events and expectations for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on our beliefs, assumptions, and expectations of industry trends, our future financial and operating performance, and our growth plans, taking into account the information currently available to us. These statements are not statements of historical fact. We have based these forward-looking statements on our current expectations and assumptions about future events. While our management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond our control. Therefore, you should not place undue reliance on such statements. Words such as “anticipates,” believes,” “continues,” “estimates,” “expects,” “goal,” “objectives,” “intends,” “may,” “opportunity,” “plans,” potential,” “near-term,” long-term,” “projections,” “assumptions,” “projects,” “guidance,” “forecasts,” “outlook,” “target,” “trends,” “should,” “could,” “would,” “will,” and similar expressions are intended to identify such forward-looking statements. We qualify any forward-looking statements entirely by these cautionary factors. We assume no obligation to update or revise any forward-looking statements for any reason or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.
Use and Reconciliation of Non-GAAP Financial Measures
In addition to our results determined in accordance with the accounting principles generally accepted in the United States of America (“GAAP”), we believe the following non-GAAP financial measure is useful in evaluating our operating performance. We present “adjusted earnings before interest, taxes, depreciation and amortization” (“Adjusted EBITDA”) because we believe it assists investors and analysts by facilitating comparison of period-to-period operational performance on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. The items excluded from the Adjusted EBITDA may have a material impact on our financial results. Certain of those items are non-recurring, while others are non-cash in nature. Accordingly, the Adjusted EBITDA is presented as supplemental disclosure and should not be considered in isolation of, as a substitute for, or superior to, the financial information prepared in accordance with GAAP, and should be read in conjunction with the financial statements furnished in our report on Form 6-K filed with the SEC.







In our reconciliation from our reported GAAP “net income before provision for taxes” to our Adjusted EBITDA, we eliminate the impact of the following six line items: (i) depreciation and amortization; (ii) interest income; (iii) interest expense; (iv) foreign currency transaction/remeasurement (gain) loss; (v) short-term investments (gain) loss; and (vi) other (income) expense, net. The below table sets forth the full reconciliation of our non-GAAP measures:
Reconciliation of non-GAAP measures
Three months ended June 30,Six months ended June 30,
(in millions, except percentages)
2024202320242023
Net income (loss)$33.3 $24.4 $63.6 $48.0 
Income tax expense (benefit)9.4 7.6 17.4 14.3 
Income (loss) before tax42.6 31.9 81.0 62.3 
Adjustments for:
Depreciation and amortization0.8 — 1.6 0.1 
Interest income(3.8)(4.2)(7.3)(7.4)
Interest expense0.4 0.4 0.8 0.9 
Foreign currency transaction/remeasurement (gain) loss(2.9)(0.7)(7.2)(3.1)
Short-term investments (gain) loss— 0.1 — 0.1 
Other (income) expense, net(0.2)— (0.2)0.1 
Adjusted EBITDA$37.0 $27.6 $68.9 $53.0 
Adjusted EBITDA margin41.9 %36.7 %39.1 %34.7 %
We encourage investors and others to review our financial information in its entirety and not to rely on any single financial measure.
Company Contact:
Joe Sigrist
ir@doubledown.com
+1 (206) 773-2266
Chief Financial Officer
https://www.doubledowninteractive.com
Investor Relations Contact:
Joseph Jaffoni or Richard Land
JCIR
+1 (212) 835-8500
DDI@jcir.com


DoubleDown Interactive Co., Ltd.
Condensed Consolidated Balance Sheets
(In thousands of U.S. dollars, except share and per share amounts)
June 30,December 31,
20242023
(unaudited)
Assets
Current assets:
Cash and cash equivalents$269,155 $206,911 
Short-term investments70,000 67,756 
Accounts receivable, net34,000 32,517 
Prepaid expenses, and other assets7,774 8,570 
Total current assets$380,929 $315,754 
Property and equipment, net347 444 
Operating lease right-of-use assets, net6,660 7,130 
Intangible assets, net49,559 51,571 
Goodwill396,236 396,704 
Deferred tax asset17,432 28,934 
Other non-current assets1,479 2,807 
Total assets$852,642 $803,344 
Liabilities and Shareholders’ Equity
Accounts payable and accrued expenses(1)
$13,249 $13,293 
Short-term operating lease liabilities(2)
1,362 3,157 
Income taxes payable2,532 112 
Contract liabilities1,777 2,520 
Current portion of borrowings with related party(3)
— 38,778 
Other current liabilities(4)
1,474 10,645 
Total current liabilities$20,394 $68,505 
Long-term borrowings with related party(5)
35,992 — 
Long-term operating lease liabilities(6)
5,472 4,420 
Deferred tax liabilities, net543 848 
Other non-current liabilities(7)
3,932 1,681 
Total liabilities$66,333 $75,454 
Shareholders’ equity
Common stock, KRW 10,000 par value—200,000,000 Shares authorized; 2,477,672 issued and outstanding21,198 21,198 
Additional paid-in-capital359,280 359,280 
Accumulated other comprehensive income14,986 19,982 
Retained earnings390,758 327,273 
Total shareholders’ equity attributable to shareholders of DoubleDown Interactive Co. Ltd.$786,222 $727,733 
Equity attributable to noncontrolling interests87 157 
Total equity$786,309 $727,890 
Total liabilities and shareholders’ equity$852,642 $803,344 
(1)Includes related party royalty and other payables of $1,353 and $1,618 at June 30, 2024 and December 31, 2023, respectively (see Note 12 to the unaudited consolidated financial statements of the Company for the six months ended June 30, 2024).
(2)Includes related party operating lease liability of $1,222 and $1,298 at June 30, 2024 and December 31, 2023, respectively (see Note 12 to the unaudited consolidated financial statements of the Company for the six months ended June 30, 2024).
(3)Includes related party notes payable of $0 and $38,778 at June 30, 2024 and December 31, 2023, respectively (see Note 12 to the unaudited consolidated financial statements of the Company for the six months ended June 30, 2024).
(4)Includes related party interest payable of $0 and $9,501 at June 30, 2024 and December 31, 2023, respectively (see Note 12 to the unaudited consolidated financial statements of the Company for the six months ended June 30, 2024).
(5)Includes related party notes payable of $37,125 and $0 at June 30, 2024 and December 31, 2023, respectively (see Note 12 to the unaudited consolidated financial statements of the Company for the six months ended June 30, 2024).
(6)Includes related party operating lease liability of $3,597 and $4,414 at June 30, 2024 and December 31, 2023, respectively (see Note 12 to the unaudited consolidated financial statements of the Company for the six months ended June 30, 2024).
(7)Includes related party interest payable of $158 and $0 at June 30, 2024 and December 31, 2023, respectively (see Note 12 to the unaudited consolidated financial statements of the Company for the six months ended June 30, 2024).


DoubleDown Interactive Co., Ltd.
Condensed Consolidated Statement of Income and Comprehensive Income
(Unaudited, in thousands except share and per share amounts)
Three months ended June 30,Six months ended June 30,
2024202320242023
Revenue$88,236 $75,187 $176,379 $152,783 
Operating expenses:
Cost of revenue(1)(2)
26,820 24,905 54,193 50,624 
Sales and marketing(1)
11,107 13,103 25,867 29,148 
Research and development(1)
3,191 5,069 6,447 10,112 
General and administrative(1)(3)
10,106 4,540 20,977 9,882 
Depreciation and amortization819 48 1,647 103 
Total operating expenses52,043 47,665 109,131 99,869 
Operating income$36,193 $27,522 $67,248 $52,914 
Other income (expense):
Interest expense(4)
(426)(436)(835)(898)
Interest income3,829 4,249 7,260 7,379 
Gain on foreign currency transactions3,396 2,478 4,113 2,730 
Gain (loss) on foreign currency remeasurement(527)(1,778)3,062 388 
Gain (loss) on short-term investments(7)(70)(13)(70)
Other, net182 (47)158 (94)
Total other income (expense), net$6,447 $4,396 $13,745 $9,435 
Income before income tax$42,640 $31,918 $80,993 $62,349 
Income tax (expense) benefit(9,375)(7,561)(17,367)(14,320)
Net income$33,265 $24,357 $63,626 $48,029 
Less: Net income attributable to noncontrolling interests88 — 141 — 
Net income attributable to DoubleDown Interactive Co., Ltd.$33,177 $24,357 $63,485 $48,029 
Other comprehensive income (expense):
Pension adjustments, net of tax(29)49 107 (108)
Loss on foreign currency translation(2,079)(166)(5,165)(1,347)
Other comprehensive income (expense)$(2,108)$(118)$(5,058)$(1,456)
Comprehensive income
$31,157 $24,239 $58,568 $46,573 
Less: Comprehensive income attributable to noncontrolling interests
88 — 79 — 
Comprehensive income attributable to DoubleDown Interactive Co., Ltd.
$31,069 $24,239 $58,489 $46,573 
Earnings per share:
Basic$13.39 $9.83 $25.62 $19.38 
Diluted$13.39 $9.83 $25.62 $19.38 
Weighted average shares outstanding:
Basic2,477,6722,477,6722,477,6722,477,672
Diluted2,477,6722,477,6722,477,6722,477,672
(1)Excluding depreciation and amortization.
(2)Includes related party royalty expense of $622 and $698 for the three months ended June 30, 2024 and 2023, respectively, and $1,241 and $1,450 for the six months ended June 30, 2024 and 2023, respectively (See Note 12 to the unaudited consolidated financial statements of the Company for the three and six months ended June 30, 2024).
(3)Includes related party rent and general and administrative expense of $1,517 and $345 for the three months ended June 30, 2024 and 2023, respectively, and $2,976 and $759 for the six months ended June 30, 2024 and 2023, respectively (See Note 12 to the unaudited consolidated financial statements of the Company for the three and six months ended June 30, 2024).
(4)Includes related party interest expense of $411 and $436 for the three months ended June 30, 2024 and 2023, respectively, and $843 and $881 for the six months ended June 30, 2024 and 2023 (See Note 12 to the unaudited consolidated financial statements of the Company for the three and six months ended June 30, 2024).


DoubleDown Interactive Co., Ltd.
Condensed Consolidated Statement of Cash Flows
(Unaudited, in thousands of U.S. dollars)
Six months ended June 30,
20242023
Cash flow from (used in) operating activities:
Net income $63,626 $48,029 
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization1,647 103 
Gain on foreign currency remeasurement(3,062)(388)
Loss on short-term investments13 70 
Deferred taxes11,166 13,655 
Working capital adjustments:
Accounts receivable(1,737)(5,656)
Prepaid expenses, other current and non-current assets2,482 1,528 
Accounts payable, accrued expenses and other payables(17)(601)
Contract liabilities(743)(219)
Income tax payable2,456 5 
Other current and non-current liabilities(6,539)(94,121)
Net cash flows from (used in) operating activities$69,292 $(37,595)
Cash flow from (used in) investing activities:
Purchases of intangible assets— — 
Purchases of property and equipment(16)(118)
Purchases of short-term investments(71,742)(61,325)
Sales of short-term investments66,961 66,440 
Net cash flows from (used in) investing activities$(4,797)$4,997 
Cash flow from (used in) financing activities:
Dividends distributed to noncontrolling interests(149)— 
Net cash flows from (used in) financing activities:$(149)$— 
Net foreign exchange difference on cash and cash equivalents(2,102)(283)
Net decrease in cash and cash equivalents$62,244 $(32,881)
Cash and cash equivalents at beginning of period$206,911 $217,352 
Cash and cash equivalents at end of period$269,155 $184,471 
Cash paid during year for:
Interest$9,938 — 
Income taxes$2,110 $299 

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Exhibit 99.2
DoubleDown Interactive Co., Ltd.
Condensed Consolidated Financial Statements (unaudited)
June 30, 2024 and June 30, 2023
Contents

DoubleDown Interactive Co., Ltd.
Condensed Consolidated Statements of Income and Comprehensive Income
(unaudited, in thousands of U.S. Dollars, except share and per share amounts)
 Three months ended June 30,Six months ended June 30,
 2024202320242023
Revenue$88,236 $75,187 $176,379 $152,783 
Operating expenses:
Cost of revenue(1)(2)
26,820 24,905 54,193 50,624 
Sales and marketing(1)
11,107 13,103 25,867 29,148 
Research and development(1)
3,191 5,069 6,447 10,112 
General and administrative(1)(3)
10,106 4,540 20,977 9,882 
Depreciation and amortization819 48 1,647 103 
Total operating expenses52,043 47,665 109,131 99,869 
Operating income$36,193 $27,522 $67,248 $52,914 
Other income (expense):
Interest expense(4)
(426)(436)(835)(898)
Interest income3,829 4,249 7,260 7,379 
Gain on foreign currency transactions3,396 2,478 4,113 2,730 
Gain (loss) on foreign currency remeasurement(527)(1,778)3,062 388 
Gain (loss) on short-term investments(7)(70)(13)(70)
Other, net182 (47)158 (94)
Total other income (expense), net$6,447 $4,396 $13,745 $9,435 
Income before income tax$42,640 $31,918 $80,993 $62,349 
Income tax (expense) benefit(9,375)(7,561)(17,367)(14,320)
Net income$33,265 $24,357 $63,626 $48,029 
Less: Net income attributable to noncontrolling interests88 — 141 — 
Net income attributable to DoubleDown Interactive Co., Ltd.$33,177 $24,357 $63,485 $48,029 
Other comprehensive income (expense):
Pension adjustments, net of tax(29)49 107 (108)
Loss on foreign currency translation(2,079)(166)(5,165)(1,347)
Other comprehensive income (expense)
$(2,108)$(118)$(5,058)$(1,456)
Comprehensive income
$31,157 $24,239 $58,568 $46,573 
Less: Comprehensive income attributable to noncontrolling interests
88 — 79 — 
Comprehensive income attributable to DoubleDown Interactive Co., Ltd.
$31,069 $24,239 $58,489 $46,573 
Earnings per share:
Basic$13.39 $9.83 $25.62 $19.38 
Diluted$13.39 $9.83 $25.62 $19.38 
Weighted average shares outstanding:
Basic2,477,6722,477,6722,477,6722,477,672
Diluted2,477,6722,477,6722,477,6722,477,672
(1)Excluding depreciation and amortization.
(2)Includes related party royalty expense of $622 and $698 for the three months ended June 30, 2024 and 2023, respectively, and $1,241 and $1,450 for the six months ended June 30, 2024 and 2023, respectively (see Note 12).
(3)Includes related party rent and general and administrative expense of $1,517 and $345 for the three months ended June 30, 2024 and 2023, respectively, and $2,976 and $759 for the six months ended June 30, 2024 and 2023, respectively (see Note 12).
(4)Includes related party interest expense of $411 and $436 for the three months ended June 30, 2024 and 2023, respectively, and $843 and $881 for the six months ended June 30, 2024 and 2023, respectively (see Note 12).
See accompanying notes to consolidated financial statements.
F-2
DoubleDown Interactive Co., Ltd.
Condensed Consolidated Balance Sheets
(in thousands of U.S. Dollars, except share amounts)
June 30,December 31,
20242023
(unaudited)
Assets
Current assets:
Cash and cash equivalents$269,155 $206,911 
Short-term investments70,000 67,756 
Accounts receivable, net34,000 32,517 
Prepaid expenses, and other assets7,774 8,570 
Total current assets$380,929 $315,754 
Property and equipment, net347 444 
Operating lease right-of-use assets, net6,660 7,130 
Intangible assets, net49,559 51,571 
Goodwill396,236 396,704 
Deferred tax asset17,432 28,934 
Other non-current assets1,479 2,807 
Total assets$852,642 $803,344 
Liabilities and Shareholders’ Equity
Accounts payable and accrued expenses(1)
$13,249 $13,293 
Short-term operating lease liabilities(2)
1,362 3,157 
Income taxes payable2,532 112 
Contract liabilities1,777 2,520 
Current portion of borrowings with related party(3)
— 38,778 
Other current liabilities(4)
1,474 10,645 
Total current liabilities$20,394 $68,505 
Long-term borrowings with related party(5)
35,992 — 
Long-term operating lease liabilities(6)
5,472 4,420 
Deferred tax liabilities, net543 848 
Other non-current liabilities(7)
3,932 1,681 
Total liabilities$66,333 $75,454 
Shareholders’ equity
Common stock, KRW 10,000 par value—200,000,000 Shares authorized; 2,477,672 issued and outstanding
21,198 21,198 
Additional paid-in-capital359,280 359,280 
Accumulated other comprehensive income14,986 19,982 
Retained earnings390,758 327,273 
Total shareholders’ equity attributable to shareholders of DoubleDown Interactive Co. Ltd.$786,222 $727,733 
Equity attributable to noncontrolling interests87 157 
Total equity$786,309 $727,890 
Total liabilities and shareholders’ equity$852,642 $803,344 
(1)Includes related party royalty and other payables of $1,353 and $1,618 at June 30, 2024 and December 31, 2023, respectively (see Note 12).
(2)Includes related party operating lease liability of $1,222 and $1,298 at June 30, 2024 and December 31, 2023, respectively (see Note 12).
(3)Includes related party notes payable of $0 and $38,778 at June 30, 2024 and December 31, 2023, respectively (see Note 12).
(4)Includes related party interest payable of $0 and $9,501 at June 30, 2024 and December 31, 2023, respectively (see Note 12).
(5)Includes related party notes payable of $37,125 and $0 at June 30, 2024 and December 31, 2023, respectively (see Note 12).
(6)Includes related party operating lease liability of $3,597 and $4,414 at June 30, 2024 and December 31, 2023, respectively (see Note 12).
(7)Includes related party interest payable of $158 and $0 at June 30, 2024 and December 31, 2023, respectively (see Note 12).
See accompanying notes to consolidated financial statements.
F-3
DoubleDown Interactive Co., Ltd.
Condensed Consolidated Statements of Changes in Shareholders’ Equity
(unaudited, in thousands of U.S. Dollars, except share amounts)
Common
shares
Common
stock
Additional
paid-in-
capital
Accumulated
other
comprehensive
 income/(loss)
Retained
earnings
(deficit)
Equity
attributable to
noncontrolling
 interests
Total
shareholders’
equity
Three months ended June 30, 2024
As of April 1, 20242,477,672$21,198 $359,280 $17,095 $357,580 $147 $755,300 
Net income — — — — 33,177 88 33,265 
Pension adjustments, net of tax—— — (29)— — (29)
Loss on foreign currency translation, net of tax—— — (2,079)— — (2,079)
Dividends distributed to noncontrolling interests
— — — — — (148)(148)
As of June 30, 20242,477,672$21,198 $359,280 $14,986 $390,758 $87 $786,309 
Three months ended June 30, 2023
As of April 1, 20232,477,672$21,198 $359,280 $18,022 $250,060 $— $648,560 
Net income— — — — 24,357 — 24,357 
Pension adjustments, net of tax— — — 49 — — 49 
Loss on foreign currency translation, net of tax— — — (166)— — (166)
As of June 30, 20232,477,672$21,198 $359,280 $17,905 $274,416 $— $672,799 
See accompanying notes to consolidated financial statements.
F-4
Common
shares
Common
stock
Additional
paid-in-
capital
Accumulated
other
comprehensive
 income/(loss)
Retained
earnings
(deficit)
Equity
attributable to
noncontrolling
 interests
Total
shareholders’
equity
Six months ended June 30, 2024
As of January 1, 20242,477,672$21,198 $359,280 $19,982 $327,273 $157 $727,890 
Net income—— — — 63,485 141 63,626 
Pension adjustments, net of tax—— — 107 — — 107 
Loss on foreign currency translation, net of tax— — — (5,103)— (62)(5,165)
Dividends distributed to noncontrolling interests— — — — — (149)(149)
As of June 30, 20242,477,672$21,198 $359,280 $14,986 $390,758 $87 $786,309 
Six months ended June 30, 2023
As of January 1, 20232,477,672$21,198 $359,280 $19,360 $226,388 $— $626,226 
Net income—— — — 48,029 — 48,029 
Pension adjustments, net of tax—— — (108)— — (108)
Loss on foreign currency translation, net of tax—— — (1,347)— — (1,347)
As of June 30, 20232,477,672$21,198 $359,280 $17,905 $274,416 $— $672,799 
See accompanying notes to consolidated financial statements.
F-5
DoubleDown Interactive Co., Ltd.
Condensed Consolidated Statements of Cash Flows
(unaudited, in thousands of U.S. Dollars)
 Six months ended June 30,
 20242023
Cash flow from (used in) operating activities:
Net income $63,626 $48,029 
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization1,647 103 
Gain on foreign currency remeasurement(3,062)(388)
Loss on short-term investments13 70 
Deferred taxes11,166 13,655 
Working capital adjustments: 
Accounts receivable(1,737)(5,656)
Prepaid expenses, other current and non-current assets2,482 1,528 
Accounts payable, accrued expenses and other payables(17)(601)
Contract liabilities(743)(219)
Income tax payable2,456 5 
Other current and non-current liabilities(6,539)(94,121)
Net cash flows from (used in) operating activities$69,292 $(37,595)
Cash flow from (used in) investing activities:
Purchases of intangible assets— — 
Purchases of property and equipment(16)(118)
Purchases of short-term investments(71,742)(61,325)
Sales of short-term investments66,961 66,440 
Net cash flows from (used in) investing activities$(4,797)$4,997 
Cash flow from (used in) financing activities:
Dividends distributed to noncontrolling interests(149)— 
Net cash flows from (used in) financing activities:$(149)$— 
Net foreign exchange difference on cash and cash equivalents(2,102)(283)
Net decrease in cash and cash equivalents$62,244 $(32,881)
Cash and cash equivalents at beginning of period$206,911 $217,352 
Cash and cash equivalents at end of period$269,155 $184,471 
Cash paid during year for:
Interest$9,938 — 
Income taxes$2,110 $299 
See accompanying notes to consolidated financial statements.
F-6
DoubleDown Interactive Co., Ltd.
Notes to Condensed Consolidated Financial Statements (unaudited)
Note 1: Description of business
Background and nature of operations
DoubleDown Interactive Co., Ltd. (“DDI,” “we,” “us,” “our” or the “Company,” formerly known as The8Games Co., Ltd.) was incorporated in 2008 in Seoul, Korea as an interactive entertainment studio, focused on the development and publishing of casual games and mobile applications. DDI is a subsidiary of DoubleU Games Co., Ltd. (“DUG” or “DoubleU Games”), a Korean company and our controlling shareholder holding 67.1% of our outstanding shares. The remaining 32.9% of our outstanding shares are held by STIC Special Situation Private Equity Fund (“STIC”, 20.2%) and the remainder by other shareholders and participants in our IPO (12.7%). In 2017, DDI acquired DoubleDown Interactive, LLC (“DDI-US”) from International Gaming Technologies (“IGT”) for approximately $825 million. DDI-US, with its principal place of business located in Seattle, Washington, is our primary revenue-generating entity.
We develop and publish digital gaming content on various mobile and web platforms through our multi-format interactive all-in-one game experience concept. We host DoubleDown Casino, DoubleDown Classic, and DoubleDown Fort Knox within various formats.
Acquisition of SuprNation AB
On October 31, 2023, the Company closed the acquisition of iGaming operator, SuprNation AB (“SuprNation”), for a total cash consideration €34.3 million (or approximately $36.5 million based on an exchange rate of €1 = $1.064 as of October 27, 2023). The acquisition diversifies the digital games categories that the Company addresses with the addition of three real-money iGaming sites in Western Europe. Following the closing, SuprNation AB is now a direct, wholly-owned subsidiary of DDI-US.
Basis of preparation and consolidation
Our unaudited condensed consolidated financial statements (“financial statements”) have been prepared in conformity with generally accepted accounting principles in the United States of America (“GAAP”) and the applicable rules and regulations of the Securities and Exchange Commission regarding interim financial information. Certain information and note disclosures normally included in the consolidated financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations.
Our unaudited condensed consolidated financial statements include all adjustments of a normal, recurring nature necessary for the fair statement of the results for the interim periods presented. The results for the interim period presented are not necessarily indicative of those for the full year. The condensed consolidated financial statements should be read in conjunction with our consolidated financial statements for the year ended December 31, 2023.
The condensed consolidated financial statements include the balances and accounts of DDI and our controlled subsidiaries. All significant inter-company transactions, balances and unrealized gains or losses have been eliminated. We view our operations and manage our business as one operating segment.
Use of estimates
The preparation of financial statements in conformity with Generally Accepted Accounting Principles (GAAP) requires estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosures. We regularly evaluate estimates and assumptions related to provisions for income taxes, revenue recognition, expense accruals, deferred income tax asset valuation allowances, valuation of goodwill and intangibles, and legal contingencies. We base our estimates and assumptions on current facts, historical experience and various other factors that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced may differ materially and adversely from these estimates. To the extent there are material differences between the estimates and the actual results, future operating results may be affected.
F-7
Functional currency and translation of financial statements
Our functional currency is the Korean Won (“KRW”), and Euro (“EUR” or “€”) and the U.S. Dollar (“dollar,” “USD,” “US$,” or “$”) are the functional currencies of our subsidiaries in Europe and United States, respectively. The accompanying consolidated financial statements are presented in USD. The consolidated balance sheets have been translated at the exchange rates prevailing at each balance sheet date. The consolidated statement of comprehensive income and statement of cash flows have been translated using the weighted-average exchange rates prevailing during the periods of each statement. The equity capital is denominated in the functional currency, KRW, and is translated at historical exchange rates. All translation adjustments resulting from translating into the reporting currency are accumulated as a separate component of accumulated other comprehensive income in shareholders’ equity. Gains or losses resulting from foreign currency transactions are included in other income (expense).
Intercompany monetary items denominated in foreign currencies are translated into the functional currency at the exchange rate at the reporting date with the gain or loss arising on translation recorded to other income (expense). Intercompany non-monetary items that are measured at historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions.
Cash and cash equivalents
We consider all money market funds and short-term investments with a maturity of three months or less when acquired to be cash and cash equivalents. Cash and cash equivalents are held by high credit quality financial institutions and balances may exceed limits of federal insurance. We have not experienced any losses resulting from these excess deposits.
Financial instruments and concentration of credit risk
Financial instruments, which potentially expose us to concentrations of credit risk, consist primarily of cash and cash equivalents, accounts receivable and short-term investments.
Accounts receivable are recorded and carried at the net invoiced amount, which is net of platform payment processing fees, unsecured, and represent amounts due to us based on contractual obligations where an executed contract exists. For our social-casino/free-to-play games, we generally do not require collateral and have not recognized an allowance as management estimates the net receivable is fully collectible. Apple, Inc. (“Apple”), Facebook, Inc. (“Facebook”), and Google, LLC (“Google”) represent significant distribution, marketing, and payment platforms for our games. A substantial portion of our revenue was generated from players who accessed our games through these platforms and a significant concentration of our accounts receivable balance is comprised of balances owed to us by these platforms.
The following table summarizes the percentage of revenues and accounts receivable generated via our platform providers in excess of 10% of our total revenues and total accounts receivable:
Revenue Concentration
Three months ended June 30,Six months ended June 30,
2024202320242023
Apple51.0 %55.4 %50.6 %55.3 %
Google16.1 %18.9 %16.1 %18.8 %
Facebook14.5 %16.9 %14.6 %17.7 %
Accounts Receivable Concentration
As of June 30,As of December 31,
20242023
Apple57.8 %59.3 %
Xsolla11.9 %11.3 %
Google9.5 %10.3 %
Facebook8.4 %9.9 %
F-8
Note 2: Revenue from Contracts with Customers
Our social and mobile apps operate on a free-to-play model, whereby game players may collect virtual currency free of charge through the passage of time or through targeted marketing promotions. If a game player wishes to obtain virtual currency above and beyond the level of free virtual currency available to that player, the player may purchase additional virtual currency. Once a purchase is completed, the virtual currency is deposited into the player’s account and is not separately identifiable from previously purchased virtual currency or virtual currency obtained by the game player for free.
Once obtained, virtual currency (either free or purchased) cannot be redeemed for cash nor exchanged for anything other than gameplay within our apps. When virtual currency is played on any of our games, the game player could “win” and would be awarded additional virtual currency or could “lose” and lose the future use of that virtual currency. We have concluded that our virtual currency represents consumable goods, because the game player does not receive any additional benefit from the games and is not entitled to any additional rights once the virtual currency is substantially consumed.
Control transfers when the virtual currency is consumed for gameplay. We recognize revenue from player purchases of virtual currency based on the consumption of this currency. We determined through a review of play behavior that game players generally do not purchase additional virtual currency until their existing virtual currency balances, regardless of source (e.g., bonus currency, gifted currency through social media channels, daily free chips, etc.), have been substantially consumed.
Based on an analysis of customers’ historical play behavior, purchase behavior, and the amount of virtual currency outstanding, we are able to estimate the rate that virtual currency is consumed during gameplay. Accordingly, revenue is recognized using a user-based revenue model with the period between purchases representing the timing difference between virtual currency purchase and consumption. This timing difference is relatively short.
We continuously gather and analyze detailed customer play behavior and assess this data in relation to our judgments used for revenue recognition.
We generate a small portion of our revenue from subscription services. All monthly subscription fees are prepaid and non-refundable for a one-month period and auto-renew until the end customer terminates the service with the platform provider the subscription services originated. The subscription revenue is recognized on a daily basis beginning on the original date of purchase and has no impact on a customer purchased virtual currency.
Disaggregation of revenue
We believe disaggregation of our revenue based on platform and geographical location are appropriate categories that depict how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors.
The following table represents our disaggregation of revenue between mobile and web platforms (in thousands):
Three months ended June 30,Six months ended June 30,
2024202320242023
Mobile$60,959 $62,468 $121,540 $125,798 
Web27,277 12,719 54,839 26,985 
Total$88,236 $75,187 $176,379 $152,783 
F-9
The following table presents our revenue disaggregated based on the geographical location of our players (in thousands):
Three months ended June 30,Six months ended June 30,
2024202320242023
U.S.
$69,943 $65,629 $140,129 $133,831 
Canada
5,065 5,006 9,820 10,020 
United Kingdom6,374 582 13,154 1,137 
International-other (1)
6,854 3,970 13,276 7,795 
Total$88,236 $75,187 $176,379 $152,783 
(1)Geographic location is presented as "International-other" when location data is not available.
Principal-agent considerations
Our revenue contracts are with game players who are our customers. We have exclusive control over all content, pricing, and overall functionality of games accessed by players. Our games are played on various third-party platforms for which the platform providers collect proceeds from our customers and remit us an amount after deducting a fee for processing and other agency services. We record revenue at the gross amount charged to our customers and classify fees paid to platform providers (such as Apple, Facebook, and Google) within cost of revenue, contract assets, contract liabilities and other disclosures.
Contract assets, contract liabilities and other disclosures
Customer payments are based on the payment terms established in our contracts. Payments for purchase of virtual currency are required at time of purchase, are non-refundable and relate to non-cancellable contracts that specify our performance obligations. All payments are initially recorded as revenue, as the player has no right of return after the purchase, consistent with our standard terms and conditions. Based on our analysis, at each period end, we estimate the number of days to consume virtual currency. This represents the revenue amount where the performance obligation has not been met and is deferred as a contract liability until we satisfy the obligation. The contract asset consists of platform fees for which revenue has not been recognized. For subscription revenue, the remaining portion of the daily ratable monthly subscription is recorded as a contract liability and the applicable platform fees as a contract asset.
The following table summarized our opening and closing balances in contract assets and contract liabilities (in thousands):
As of June 30,As of December 31,
20242023
Contract assets(1)
$533 $756 
Contract liabilities1,777 2,520 
(1)Contract assets are included within prepaid expenses and other assets in our consolidated balance sheet.
Note 3: Short-term investments
The Company holds investments in marketable securities with the intention of selling these investments within a relatively short period of time (3-6 months). As such, gains or losses from holding or trading these securities were recognized in the Statements of Income. At June 30, 2024, short term investments comprised of fixed time deposits classified as trading.
F-10
Note 4: Goodwill and intangible assets
There were no changes to the carrying amount of goodwill in the six months ended June 30, 2024. We recognized an aggregate $269.9 million impairment of goodwill and intangibles in 2022. Changes in the carrying amount of intangible assets were as follows (in thousands):
Useful lifeJune 30, 2024December 31, 2023
Gross amount
Accumulated
amortization
Impairment Net amountGross amount
Accumulated
amortization
Impairment Net amount
Goodwillindefinite$651,129 $— $(254,893)$396,236 $651,597 $— $(254,893)$396,704 
Trademarksindefinite50,000 — (15,000)35,000 50,000 — (15,000)35,000 
Customer relationships4 years83,998 (76,500)— 7,498 84,271 (75,387)— 8,884 
Purchased technology
5-10 years
52,504 (45,895)— 6,609 52,707 (45,544)— 7,163 
Development costs3 years9,486 (9,486)— — 9,486 (9,486)— — 
Software
4-5 years
2,948 (2,496)— 452 2,968 (2,444)— 524 
Total$850,065 $(134,377)$(269,893)$445,795 $851,029 $(132,861)$(269,893)$448,275 
The following reflects amortization expense related to intangible assets included with depreciation and amortization (in thousands):
Three months ended June 30,Six months ended June 30,
2024202320242023
Amortization Expense$772.1 $4.2 $1,549.8 $8.2 
Note 5: Debt
The components of debt at June 30, 2024 and December 31, 2023 are as follows (in thousands):
As of June 30,As of December 31,
20242023
4.60% Senior Notes due to related party due 2026
$35,992 $38,778 
Total debt35,992 38,778 
Less: Short-term debt— 38,778 
Total Long-term debt$35,992 $— 
4.60% Senior Notes due to related party due 2026
The 4.60% Senior Notes due to related party, which in aggregate total KRW100 billion at inception, accrue 4.60% interest quarterly on the outstanding principal amount until maturity. Accrued interest and outstanding principal, after deducting any voluntary repayments, are due in full at maturity (May 27, 2026).
Voluntary principal and interest payments were made in June and September 2020. Principal of KRW20 billion and interest of KRW1.2 billion were paid in June 2020 and principal of KRW30 billion and interest of KRW3.1 billion were paid in September 2020. In May 2024, a voluntary interest payment of KRW13.2 billion was made, and the maturity of the remaining outstanding principal amount under the 4.60% Senior Notes was extended by two years to May 27, 2026.
Note 6: Fair value measurements
The carrying values of our accounts receivable, prepaid expenses and other current assets, accounts payable, accrued liabilities and short-term borrowings approximate their fair values due to the short-term nature of these instruments.
F-11
Our cash equivalents (Level 1 of fair value hierarchy) consist of money market funds and Korean government bonds totaling $269.2 million, and short-term investments (Level 2 of fair value hierarchy) comprised of fixed time or certificates of deposit with maturity periods greater than 90 days totaling $70.0 million as of June 30, 2024. As of December 31, 2023, our cash equivalents (Level 1 of fair value hierarchy) consisted of money market funds and Korean government bonds totaling $206.9 million, and short-term investments (Level 2 of fair value hierarchy) comprised of fixed time or certificates of deposit with maturity periods greater than 90 days totaling $67.8 million. We rely on credit market data to track interest rates for other entities with similar risk profiles.
We record all debt at inception at fair value. We perform subsequent analysis on available data to evaluate the fair value of our borrowing as of the balance sheet date. We rely on credit market data to track interest rates for other entities with similar risk profiles. As of June 30, 2024, the fair value of our senior notes (a Level 3 estimate) was approximately $2.1 million lower than face value.
Note 7: Income taxes
We are subject to federal and state income taxes in Korea, the United States, Malta and Sweden. We account for our provision for income taxes in accordance with ASC 740, Income Taxes, which requires an estimate of the annual effective tax rate for the full year to be applied to the interim period, taking into account year-to-date amounts and projected results for the full year.
Our effective tax rate varies from the statutory Korean income tax rate due to the effect of foreign rate differential, withholding taxes, state and local income taxes, notional interest deduction, FDII deduction, and valuation allowances on deferred tax assets in certain jurisdictions. Our effective tax rate could fluctuate significantly from quarter to quarter based on variations in the estimated and actual level of pre-tax income or loss by jurisdiction, changes in enacted tax laws and regulations, and changes in estimates regarding non-deductible expenses and tax credits. As of June 30, 2024, and December 31, 2023, we have provided a valuation allowance against our net deferred tax assets that we believe, based on the weight of available evidence, are not more likely than not to be realized.
The income tax expense of $17.4 million for the six months ended June 30, 2024, reflects an effective tax rate of 21.4% which is lower than the effective tax rate of 23.7% for the six months ended June 30, 2023. The decrease in rate from 2023 to 2024 is primarily due to an increase in the FDII benefit and notional interest deduction.
The effective tax rate of 21.4% for the six months ended June 30, 2024, is higher than the Korean statutory rate of 19%, primarily due to foreign rate differential and state taxes.
Note 8: Net income per share
Basic net income per share is computed by dividing net income by the weighted-average number of common shares outstanding for the period, without consideration for potentially dilutive securities. Diluted net income per share is computed by dividing net income by the weighted-average number of common shares and dilutive common share equivalents outstanding for the period determined using the treasury-stock and if-converted methods. There were no potentially dilutive securities outstanding in either period presented.
Note 9: Leases
We are a lessee for corporate office spaces in Seattle, Washington, Swieqi, Malta and Seoul, Korea. The lessor for our Seoul, Korea leases is our controlling shareholder, DoubleU Games (see Note 12). Our leases have remaining terms of four to 72 months. We do not have any finance leases. Our total variable and short-term lease payments are immaterial for all periods presented.
The Seattle, Washington lease originated in July 2012 and consists of 13,219 square feet. The lease was extended by amendment in May 2024 and will expire in June 2030.
The Swieqi, Malta office lease was assumed as part of the SuprNation acquisition in October 2023 and consists of 4,770 square feet. The lease will expire in October 2024.
In September 2023, we executed a new sublease with our controlling shareholder, DUG, for 28,497 square feet of office space in Gangnam-gu, Seoul, Korea. The lease term commenced in October 2023, and will expire in September 2028.
F-12
Supplemental balance sheet and cash flow information related to operating leases is as follows (in thousands):
 As of June 30, 2024As of December 31, 2023
Total operating lease right-of-use asset, net$6,660 $7,130 
Short-term operating lease liabilities1,362 3,157 
Long-term operating lease liabilities5,472 4,420 
Total operating lease liabilities$6,834 $7,577 
Operating lease costs$1,369 $3,201 
Supplemental cash flow information related to leases was as follows (in thousands):
Six months endedSix months ended
June 30, 2024June 30, 2023
Cash paid for amounts included in the measurement of operating lease liabilities$1,436 $1,715 
Right-of-use assets obtained in exchange for new lease obligations$— $— 
Net increase to operating lease ROU assets resulting from remeasurements of lease obligations
$1,069 $— 
F-13
Note 10: Accumulated other comprehensive income
Changes in accumulated other comprehensive income (AOCI) by component for the three and six months ended June 30, 2024 and 2023 were as follows (in thousands):
Three months ended June 30, 2024
Currency Translation
Adjustments
Defined Benefit
Pension Plan
Total
Balance at April 1, 2024$18,988 $(1,893)$17,095 
Foreign currency translation loss, net of tax(2,080)— (2,080)
Actuarial gain/(loss), net of tax— (29)(29)
Balance as of June 30, 2024$16,908 $(1,922)$14,986 
Six months ended June 30, 2024
Currency Translation
Adjustments
Defined Benefit
Pension Plan
Total
Balance at January 1, 2024$22,011 $(2,029)$19,982 
Foreign currency translation loss, net of tax(5,103)— (5,103)
Actuarial gain/(loss), net of tax— 107 107 
Balance as of June 30, 2024$16,908 $(1,922)$14,986 
Three months ended June 30, 2023
Currency Translation
Adjustments
Defined Benefit
Pension Plan
Total
Balance at April 1, 2023$19,611 $(1,589)$18,022 
Foreign currency translation loss, net of tax(166)— (166)
Actuarial gain/(loss), net of tax— 49 49 
Balance as of June 30, 2023$19,445 $(1,540)$17,905 
Six months ended June 30, 2023
Currency Translation
Adjustments
Defined Benefit
Pension Plan
Total
Balance at January 1, 2023$20,792 $(1,432)$19,360 
Foreign currency translation loss, net of tax(1,347)— (1,347)
Actuarial gain/(loss), net of tax— (108)(108)
Balance as of June 30, 2023$19,445 $(1,540)$17,905 
We do not tax effect foreign currency translation gain/(loss) because we have determined such gain/(loss) is permanently reinvested and actuarial gain/(loss) is not tax effected due to a valuation allowance applied to our deferred tax assets.
Note 11: Commitments and contingencies
Legal contingencies
On April 12, 2018, a class-action lawsuit was filed against DDI-US demanding a return of unfair benefit under the pretext that the Company’s social casino games are not legal in the State of Washington, United States. On August 29, 2022, DDI-US entered into an agreement in principle to settle the aforementioned case and associated proceedings, pursuant to which, among other things, DDI-US would contribute $145.25 million to the settlement fund. This agreement in principle received final court approval with the final contribution to the settlement fund made in June 2023. The Company recorded an accrual of $95.25 million for the year ended December 31, 2022, which was subsequently settled via a $95.25 million cash payment in the second quarter of 2023.
F-14
Publishing and license agreements
DoubleU Games
We entered into the DoubleU Games License Agreement on March 7, 2018, and it was subsequently amended on July 1, 2019 and November 27, 2019. In March 2023, we, through DDI-US, entered into a new Game License Agreement with DoubleU Games with effect from January 1, 2023, which supersedes the prior DoubleU Games License Agreement. Pursuant to the new Game License Agreement, DoubleU Games grants us, through DDI-US, a non-exclusive and worldwide license to service and distribute certain DoubleU Games social casino game titles and sequels thereto in the social online game field of use. We are obligated to pay a royalty license fee equal to a certain fixed percentage of the net sales of the licensed game titles to DoubleU Games in connection with these rights. As of June 30, 2024, we licensed approximately 49 game titles under the terms of this agreement.
In October 2023, we, through DDI-US, entered into a Game Development Services Agreement with DoubleUGames, pursuant to which DDI-US will pay service fees to DoubleU Games for certain game maintenance services and product planning and user analysis services provided by DoubleU Games. We incurred total service fees of $2.1 million for the six months ended June 30, 2024.
International Gaming Technologies (“IGT”)
In 2017, we entered into a Game Development, Distribution, and Services agreement with IGT, and it was subsequently amended on January 1, 2019. Under the terms of the agreement, IGT will deliver game assets so that we can port (a process of converting the assets into functioning slot games by platform) the technology for inclusion in our gaming apps. The agreement includes game assets that are used to create new games. Under the agreement, we pay IGT a royalty rate of 7.5% of revenue for their proprietary assets and 15% of revenue for third-party game asset types. We also pay a monthly fee for porting. The initial term of the agreement is ten (10) years with up to two additional five-year periods. Costs incurred in connection with this agreement for the three months ended June 30, 2024 and 2023 totaled $0.6 million and $1.9 million, respectively, and are recognized as a component of cost of revenue. Costs incurred in connection with this agreement for the six months ended June 30, 2024 and 2023 totaled $2.4 million and $3.9 million, respectively, and are recognized as a component of cost of revenue.
Note 12: Related party transactions
Our related party transactions comprise of expenses for use of intellectual property, borrowings, and sublease previously described. We may also incur other expenses with related parties in the ordinary course of business, which are included in the consolidated financial statements.
The following is a summary of expenses charged by our controlling shareholder, DoubleU Games (in thousands):
Three months ended June 30,Six months ended June 30,
Statement of
Income and Comprehensive Income Line Item
2024202320242023
Royalty expense (see Note 11)
$622 $698 $1,241 $1,450 
Cost of revenue
Interest expense (see Note 5)
411 436 843 881 
Interest expense
Rent expense (see Note 9)
323 307 657 624 
General and administrative expense
Other expense
1,194 38 2,319 135 
General and administrative expense
F-15
Amounts due to our controlling shareholder, DUG, are as follows (in thousands):
At June 30,At December 31,
Statement of Consolidated
Balance Sheet Line Item
20242023
4.6% Senior Notes due to related party due 2026
$— $38,778 Current portion of borrowings with related party
4.6% Senior Notes due to related party due 2026
35,992 — 
Long-term borrowing with related party
Royalties and other expenses1,353 1,618 A/P and accrued expenses
Short-term lease liability1,222 1,298 Short-term operating lease liabilities
Accrued interest on 4.6% Senior Notes with related party
— 9,501 Other current liabilities
Accrued interest on 4.6% Senior Notes with related party
158 — 
Other non-current liabilities
Long-term lease liability3,597 4,414 Long-term lease liabilities
Note 13: Defined benefit pension plan
We operate a defined benefit pension plan under employment regulations in Korea. The plan services the employees located in Seoul and is a final wage-based pension plan, which provides a specified amount of pension benefit based on length of service. The total benefit obligation of $3.4 million and $4.4 million was included in other non-current liabilities as of June 30, 2024 and December 31, 2023, respectively, and the change in actuarial gains or losses, which is not significant, was included in other comprehensive income. The plan is funded.
Note 14: Acquisition
Business Combination - SuprNation
On October 31, 2023, the Company completed its acquisition of SuprNation, a European i-Gaming operator, which is now a direct, wholly-owned subsidiary of DDI-US, for a total cash purchase price of $30.6 million. There was also a payment into escrow of $5.5 million and a deferred payment of up to $6.5 million, relating to a holdback amount to be calculated based on SuprNation’s performance and financial results 18 months following the transaction close date. The transaction is expected to enable the Company to expand into the i-Gaming market. The Company accounted for the acquisition as a business combination. Transaction costs incurred by the Company in connection with the acquisition, including professional fees, were $2.0 million.
Contemporaneously with entering into the definitive agreement, the Company also adopted an eighteen-month performance-based incentive plan for certain key employees of SuprNation, under which the key employees may earn up to a total of $6.5 million in addition to $5.5 million held in escrow, contingent upon the achievement of certain revenue and other performance targets by the acquired business and the continued employment of such key employees between 2023 and 2025. Such plan became effective at the closing of the transaction.
The Company’s consolidated statement of operations as of June 30, 2024, includes SuprNation’s revenue of $16.2 million and pre-tax loss of $2.3 million for the six months ended June 30, 2024.
F-16
v3.24.2.u1
Cover Page
 6 Months Ended
Jun. 30, 2024
Cover [Abstract]  
Document Type 6-K
Entity Registrant Name DoubleDown Interactive Co., Ltd.
Amendment Flag false
Entity Central Index Key 0001799567
Current Fiscal Year End Date --12-31
Document Period End Date Jun. 30, 2024
Document Fiscal Year Focus 2024
Document Fiscal Period Focus Q2
v3.24.2.u1
Condensed Consolidated Statements of Income and Comprehensive Income - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Income Statement [Abstract]        
Revenue $ 88,236 $ 75,187 $ 176,379 $ 152,783
Operating expenses:        
Cost of revenue [1],[2] 26,820 24,905 54,193 50,624
Sales and marketing [1] 11,107 13,103 25,867 29,148
Research and development [1] 3,191 5,069 6,447 10,112
General and administrative [1],[3] 10,106 4,540 20,977 9,882
Depreciation and amortization 819 48 1,647 103
Total operating expenses 52,043 47,665 109,131 99,869
Operating income 36,193 27,522 67,248 52,914
Other income (expense):        
Interest expense [4] (426) (436) (835) (898)
Interest income 3,829 4,249 7,260 7,379
Gain on foreign currency transactions 3,396 2,478 4,113 2,730
Gain (loss) on foreign currency remeasurement (527) (1,778) 3,062 388
Gain (loss) on short-term investments (7) (70) (13) (70)
Other, net 182 (47) 158 (94)
Total other income (expense), net 6,447 4,396 13,745 9,435
Income before income tax 42,640 31,918 80,993 62,349
Income tax (expense) benefit (9,375) (7,561) (17,367) (14,320)
Net income 33,265 24,357 63,626 48,029
Less: Net income attributable to noncontrolling interests 88 0 141 0
Net income attributable to DoubleDown Interactive Co., Ltd. 33,177 24,357 63,485 48,029
Other comprehensive income (expense):        
Pension adjustments, net of tax (29) 49 107 (108)
Loss on foreign currency translation (2,079) (166) (5,165) (1,347)
Other comprehensive income (expense) (2,108) (118) (5,058) (1,456)
Comprehensive income 31,157 24,239 58,568 46,573
Less: Comprehensive income attributable to noncontrolling interests 88 0 79 0
Comprehensive income attributable to DoubleDown Interactive Co., Ltd. $ 31,069 $ 24,239 $ 58,489 $ 46,573
Earnings per share:        
Basic (in dollars per share) $ 13.39 $ 9.83 $ 25.62 $ 19.38
Diluted (in dollars per share) $ 13.39 $ 9.83 $ 25.62 $ 19.38
Weighted average shares outstanding:        
Basic (in shares) 2,477,672 2,477,672 2,477,672 2,477,672
Diluted (in shares) 2,477,672 2,477,672 2,477,672 2,477,672
[1] Excluding depreciation and amortization.
[2] Includes related party royalty expense of $622 and $698 for the three months ended June 30, 2024 and 2023, respectively, and $1,241 and $1,450 for the six months ended June 30, 2024 and 2023, respectively (see Note 12).
[3] Includes related party rent and general and administrative expense of $1,517 and $345 for the three months ended June 30, 2024 and 2023, respectively, and $2,976 and $759 for the six months ended June 30, 2024 and 2023, respectively (see Note 12).
[4] Includes related party interest expense of $411 and $436 for the three months ended June 30, 2024 and 2023, respectively, and $843 and $881 for the six months ended June 30, 2024 and 2023, respectively (see Note 12).
v3.24.2.u1
Condensed Consolidated Statements of Income and Comprehensive Income (Parenthetical) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Interest expense [1] $ 426 $ 436 $ 835 $ 898
Cost of Sales        
Royalty expense 622 698 1,241 1,450
Related Party        
Interest expense 411 436 843 881
Related Party | Cost of Sales        
Royalty expense 622 698 1,241 1,450
Related Party | General and administrative expense        
Rental and general and administrative expenses $ 1,517 $ 345 $ 2,976 $ 759
[1] Includes related party interest expense of $411 and $436 for the three months ended June 30, 2024 and 2023, respectively, and $843 and $881 for the six months ended June 30, 2024 and 2023, respectively (see Note 12).
v3.24.2.u1
Condensed Consolidated Balance Sheets - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Current assets:    
Cash and cash equivalents $ 269,155 $ 206,911
Short-term investments 70,000 67,756
Accounts receivable, net 34,000 32,517
Prepaid expenses, and other assets 7,774 8,570
Total current assets 380,929 315,754
Property and equipment, net 347 444
Operating lease right-of-use assets, net 6,660 7,130
Intangible assets, net 49,559 51,571
Goodwill 396,236 396,704
Deferred tax asset 17,432 28,934
Other non-current assets 1,479 2,807
Total assets 852,642 803,344
Liabilities and Shareholders’ Equity    
Accounts payable and accrued expenses [1] 13,249 13,293
Short-term operating lease liabilities [2] 1,362 3,157
Income taxes payable 2,532 112
Contract liabilities 1,777 2,520
Current portion of borrowings with related party [3] 0 38,778
Other current liabilities [4] 1,474 10,645
Total current liabilities 20,394 68,505
Long-term borrowings with related party [5] 35,992 0
Long-term operating lease liabilities [6] 5,472 4,420
Deferred tax liabilities, net 543 848
Other non-current liabilities [7] 3,932 1,681
Total liabilities 66,333 75,454
Shareholders’ equity    
Common stock, KRW 10,000 par value—200,000,000 Shares authorized; 2,477,672 issued and outstanding 21,198 21,198
Additional paid-in-capital 359,280 359,280
Accumulated other comprehensive income 14,986 19,982
Retained earnings 390,758 327,273
Total shareholders’ equity attributable to shareholders of DoubleDown Interactive Co. Ltd. 786,222 727,733
Equity attributable to noncontrolling interests 87 157
Total equity 786,309 727,890
Total liabilities and shareholders’ equity $ 852,642 $ 803,344
[1] Includes related party royalty and other payables of $1,353 and $1,618 at June 30, 2024 and December 31, 2023, respectively (see Note 12).
[2] Includes related party operating lease liability of $1,222 and $1,298 at June 30, 2024 and December 31, 2023, respectively (see Note 12).
[3] Includes related party notes payable of $0 and $38,778 at June 30, 2024 and December 31, 2023, respectively (see Note 12).
[4] Includes related party interest payable of $0 and $9,501 at June 30, 2024 and December 31, 2023, respectively (see Note 12).
[5] Includes related party notes payable of $37,125 and $0 at June 30, 2024 and December 31, 2023, respectively (see Note 12).
[6] Includes related party operating lease liability of $3,597 and $4,414 at June 30, 2024 and December 31, 2023, respectively (see Note 12).
[7] Includes related party interest payable of $158 and $0 at June 30, 2024 and December 31, 2023, respectively (see Note 12).
v3.24.2.u1
Condensed Consolidated Balance Sheets (Parenthetical)
$ in Thousands
Jun. 30, 2024
USD ($)
shares
Jun. 30, 2024
₩ / shares
Dec. 31, 2023
USD ($)
shares
Dec. 31, 2023
₩ / shares
Common stock, par value (in KRW per share) | ₩ / shares   ₩ 10,000   ₩ 10,000
Common stock, shares authorized (in shares) | shares 200,000,000   200,000,000  
Common stock, shares issued (in shares) | shares 2,477,672   2,477,672  
Common stock, shares outstanding (in shares) | shares 2,477,672   2,477,672  
Short-term operating lease liabilities [1] $ 1,362   $ 3,157  
Less: Short-term debt [2] 0   38,778  
Long-term borrowings with related party [3] 35,992   0  
Long-term operating lease liabilities [4] 5,472   4,420  
Other non-current liabilities [5] 3,932   1,681  
Related Party        
Accrued royalties payable 1,353   1,618  
Short-term operating lease liabilities 1,222   1,298  
Less: Short-term debt 0   38,778  
Long-term borrowings with related party 37,125   0  
Long-term operating lease liabilities 3,597   4,414  
Other non-current liabilities 158   0  
Related Party | Other current liabilities        
Interest payable, current $ 0   $ 9,501  
[1] Includes related party operating lease liability of $1,222 and $1,298 at June 30, 2024 and December 31, 2023, respectively (see Note 12).
[2] Includes related party notes payable of $0 and $38,778 at June 30, 2024 and December 31, 2023, respectively (see Note 12).
[3] Includes related party notes payable of $37,125 and $0 at June 30, 2024 and December 31, 2023, respectively (see Note 12).
[4] Includes related party operating lease liability of $3,597 and $4,414 at June 30, 2024 and December 31, 2023, respectively (see Note 12).
[5] Includes related party interest payable of $158 and $0 at June 30, 2024 and December 31, 2023, respectively (see Note 12).
v3.24.2.u1
Condensed Consolidated Statements of Changes in Shareholders' Equity - USD ($)
$ in Thousands
Total
Common stock
Additional paid-in- capital
Accumulated other comprehensive income/(loss)
Retained earnings (deficit)
Equity attributable to noncontrolling interests
Balance, beginning of period (in shares) at Dec. 31, 2022   2,477,672        
Balance, beginning of period at Dec. 31, 2022 $ 626,226 $ 21,198 $ 359,280 $ 19,360 $ 226,388 $ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income 48,029       48,029  
Pension adjustments, net of tax (108)     (108)    
Loss on foreign currency translation, net of tax (1,347)     (1,347)    
Balance, end of period (in shares) at Jun. 30, 2023   2,477,672        
Balance, end of period at Jun. 30, 2023 672,799 $ 21,198 359,280 17,905 274,416 0
Balance, beginning of period (in shares) at Mar. 31, 2023   2,477,672        
Balance, beginning of period at Mar. 31, 2023 648,560 $ 21,198 359,280 18,022 250,060  
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income 24,357       24,357  
Pension adjustments, net of tax 49     49    
Loss on foreign currency translation, net of tax (166)     (166)    
Balance, end of period (in shares) at Jun. 30, 2023   2,477,672        
Balance, end of period at Jun. 30, 2023 672,799 $ 21,198 359,280 17,905 274,416 0
Balance, beginning of period (in shares) at Dec. 31, 2023   2,477,672        
Balance, beginning of period at Dec. 31, 2023 727,890 $ 21,198 359,280 19,982 327,273 157
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income 63,626       63,485 141
Pension adjustments, net of tax 107     107    
Loss on foreign currency translation, net of tax (5,165)     (5,103)   (62)
Dividends distributed to noncontrolling interests (149)         (149)
Balance, end of period (in shares) at Jun. 30, 2024   2,477,672        
Balance, end of period at Jun. 30, 2024 786,309 $ 21,198 359,280 14,986 390,758 87
Balance, beginning of period (in shares) at Mar. 31, 2024   2,477,672        
Balance, beginning of period at Mar. 31, 2024 755,300 $ 21,198 359,280 17,095 357,580 147
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income 33,265       33,177 88
Pension adjustments, net of tax (29)     (29)    
Loss on foreign currency translation, net of tax (2,079)     (2,079)    
Dividends distributed to noncontrolling interests (148)         (148)
Balance, end of period (in shares) at Jun. 30, 2024   2,477,672        
Balance, end of period at Jun. 30, 2024 $ 786,309 $ 21,198 $ 359,280 $ 14,986 $ 390,758 $ 87
v3.24.2.u1
Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Cash flow from (used in) operating activities:    
Net income $ 63,626 $ 48,029
Adjustments to reconcile net income to net cash from operating activities:    
Depreciation and amortization 1,647 103
Gain on foreign currency remeasurement (3,062) (388)
Loss on short-term investments 13 70
Deferred taxes 11,166 13,655
Accounts receivable (1,737) (5,656)
Prepaid expenses, other current and non-current assets 2,482 1,528
Accounts payable, accrued expenses and other payables (17) (601)
Contract liabilities (743) (219)
Income tax payable 2,456 5
Other current and non-current liabilities (6,539) (94,121)
Net cash flows from (used in) operating activities 69,292 (37,595)
Cash flow from (used in) investing activities:    
Purchases of intangible assets 0 0
Purchases of property and equipment (16) (118)
Purchases of short-term investments (71,742) (61,325)
Sales of short-term investments 66,961 66,440
Net cash flows from (used in) investing activities (4,797) 4,997
Cash flow from (used in) financing activities:    
Dividends distributed to noncontrolling interests (149) 0
Net cash flows from (used in) financing activities: (149) 0
Net foreign exchange difference on cash and cash equivalents (2,102) (283)
Net decrease in cash and cash equivalents 62,244 (32,881)
Cash and cash equivalents at beginning of period 206,911 217,352
Cash and cash equivalents at end of period 269,155 184,471
Cash paid during year for:    
Interest 9,938 0
Income taxes $ 2,110 $ 299
v3.24.2.u1
Description of business
 6 Months Ended
Jun. 30, 2024
Accounting Policies [Abstract]  
Description of business Description of business
Background and nature of operations
DoubleDown Interactive Co., Ltd. (“DDI,” “we,” “us,” “our” or the “Company,” formerly known as The8Games Co., Ltd.) was incorporated in 2008 in Seoul, Korea as an interactive entertainment studio, focused on the development and publishing of casual games and mobile applications. DDI is a subsidiary of DoubleU Games Co., Ltd. (“DUG” or “DoubleU Games”), a Korean company and our controlling shareholder holding 67.1% of our outstanding shares. The remaining 32.9% of our outstanding shares are held by STIC Special Situation Private Equity Fund (“STIC”, 20.2%) and the remainder by other shareholders and participants in our IPO (12.7%). In 2017, DDI acquired DoubleDown Interactive, LLC (“DDI-US”) from International Gaming Technologies (“IGT”) for approximately $825 million. DDI-US, with its principal place of business located in Seattle, Washington, is our primary revenue-generating entity.
We develop and publish digital gaming content on various mobile and web platforms through our multi-format interactive all-in-one game experience concept. We host DoubleDown Casino, DoubleDown Classic, and DoubleDown Fort Knox within various formats.
Acquisition of SuprNation AB
On October 31, 2023, the Company closed the acquisition of iGaming operator, SuprNation AB (“SuprNation”), for a total cash consideration €34.3 million (or approximately $36.5 million based on an exchange rate of €1 = $1.064 as of October 27, 2023). The acquisition diversifies the digital games categories that the Company addresses with the addition of three real-money iGaming sites in Western Europe. Following the closing, SuprNation AB is now a direct, wholly-owned subsidiary of DDI-US.
Basis of preparation and consolidation
Our unaudited condensed consolidated financial statements (“financial statements”) have been prepared in conformity with generally accepted accounting principles in the United States of America (“GAAP”) and the applicable rules and regulations of the Securities and Exchange Commission regarding interim financial information. Certain information and note disclosures normally included in the consolidated financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations.
Our unaudited condensed consolidated financial statements include all adjustments of a normal, recurring nature necessary for the fair statement of the results for the interim periods presented. The results for the interim period presented are not necessarily indicative of those for the full year. The condensed consolidated financial statements should be read in conjunction with our consolidated financial statements for the year ended December 31, 2023.
The condensed consolidated financial statements include the balances and accounts of DDI and our controlled subsidiaries. All significant inter-company transactions, balances and unrealized gains or losses have been eliminated. We view our operations and manage our business as one operating segment.
Use of estimates
The preparation of financial statements in conformity with Generally Accepted Accounting Principles (GAAP) requires estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosures. We regularly evaluate estimates and assumptions related to provisions for income taxes, revenue recognition, expense accruals, deferred income tax asset valuation allowances, valuation of goodwill and intangibles, and legal contingencies. We base our estimates and assumptions on current facts, historical experience and various other factors that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced may differ materially and adversely from these estimates. To the extent there are material differences between the estimates and the actual results, future operating results may be affected.
Functional currency and translation of financial statements
Our functional currency is the Korean Won (“KRW”), and Euro (“EUR” or “€”) and the U.S. Dollar (“dollar,” “USD,” “US$,” or “$”) are the functional currencies of our subsidiaries in Europe and United States, respectively. The accompanying consolidated financial statements are presented in USD. The consolidated balance sheets have been translated at the exchange rates prevailing at each balance sheet date. The consolidated statement of comprehensive income and statement of cash flows have been translated using the weighted-average exchange rates prevailing during the periods of each statement. The equity capital is denominated in the functional currency, KRW, and is translated at historical exchange rates. All translation adjustments resulting from translating into the reporting currency are accumulated as a separate component of accumulated other comprehensive income in shareholders’ equity. Gains or losses resulting from foreign currency transactions are included in other income (expense).
Intercompany monetary items denominated in foreign currencies are translated into the functional currency at the exchange rate at the reporting date with the gain or loss arising on translation recorded to other income (expense). Intercompany non-monetary items that are measured at historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions.
Cash and cash equivalents
We consider all money market funds and short-term investments with a maturity of three months or less when acquired to be cash and cash equivalents. Cash and cash equivalents are held by high credit quality financial institutions and balances may exceed limits of federal insurance. We have not experienced any losses resulting from these excess deposits.
Financial instruments and concentration of credit risk
Financial instruments, which potentially expose us to concentrations of credit risk, consist primarily of cash and cash equivalents, accounts receivable and short-term investments.
Accounts receivable are recorded and carried at the net invoiced amount, which is net of platform payment processing fees, unsecured, and represent amounts due to us based on contractual obligations where an executed contract exists. For our social-casino/free-to-play games, we generally do not require collateral and have not recognized an allowance as management estimates the net receivable is fully collectible. Apple, Inc. (“Apple”), Facebook, Inc. (“Facebook”), and Google, LLC (“Google”) represent significant distribution, marketing, and payment platforms for our games. A substantial portion of our revenue was generated from players who accessed our games through these platforms and a significant concentration of our accounts receivable balance is comprised of balances owed to us by these platforms.
The following table summarizes the percentage of revenues and accounts receivable generated via our platform providers in excess of 10% of our total revenues and total accounts receivable:
Revenue Concentration
Three months ended June 30,Six months ended June 30,
2024202320242023
Apple51.0 %55.4 %50.6 %55.3 %
Google16.1 %18.9 %16.1 %18.8 %
Facebook14.5 %16.9 %14.6 %17.7 %
Accounts Receivable Concentration
As of June 30,As of December 31,
20242023
Apple57.8 %59.3 %
Xsolla11.9 %11.3 %
Google9.5 %10.3 %
Facebook8.4 %9.9 %
v3.24.2.u1
Revenue from Contracts with Customers
 6 Months Ended
Jun. 30, 2024
Revenue from Contract with Customer [Abstract]  
Revenue from Contracts with Customers Revenue from Contracts with Customers
Our social and mobile apps operate on a free-to-play model, whereby game players may collect virtual currency free of charge through the passage of time or through targeted marketing promotions. If a game player wishes to obtain virtual currency above and beyond the level of free virtual currency available to that player, the player may purchase additional virtual currency. Once a purchase is completed, the virtual currency is deposited into the player’s account and is not separately identifiable from previously purchased virtual currency or virtual currency obtained by the game player for free.
Once obtained, virtual currency (either free or purchased) cannot be redeemed for cash nor exchanged for anything other than gameplay within our apps. When virtual currency is played on any of our games, the game player could “win” and would be awarded additional virtual currency or could “lose” and lose the future use of that virtual currency. We have concluded that our virtual currency represents consumable goods, because the game player does not receive any additional benefit from the games and is not entitled to any additional rights once the virtual currency is substantially consumed.
Control transfers when the virtual currency is consumed for gameplay. We recognize revenue from player purchases of virtual currency based on the consumption of this currency. We determined through a review of play behavior that game players generally do not purchase additional virtual currency until their existing virtual currency balances, regardless of source (e.g., bonus currency, gifted currency through social media channels, daily free chips, etc.), have been substantially consumed.
Based on an analysis of customers’ historical play behavior, purchase behavior, and the amount of virtual currency outstanding, we are able to estimate the rate that virtual currency is consumed during gameplay. Accordingly, revenue is recognized using a user-based revenue model with the period between purchases representing the timing difference between virtual currency purchase and consumption. This timing difference is relatively short.
We continuously gather and analyze detailed customer play behavior and assess this data in relation to our judgments used for revenue recognition.
We generate a small portion of our revenue from subscription services. All monthly subscription fees are prepaid and non-refundable for a one-month period and auto-renew until the end customer terminates the service with the platform provider the subscription services originated. The subscription revenue is recognized on a daily basis beginning on the original date of purchase and has no impact on a customer purchased virtual currency.
Disaggregation of revenue
We believe disaggregation of our revenue based on platform and geographical location are appropriate categories that depict how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors.
The following table represents our disaggregation of revenue between mobile and web platforms (in thousands):
Three months ended June 30,Six months ended June 30,
2024202320242023
Mobile$60,959 $62,468 $121,540 $125,798 
Web27,277 12,719 54,839 26,985 
Total$88,236 $75,187 $176,379 $152,783 
The following table presents our revenue disaggregated based on the geographical location of our players (in thousands):
Three months ended June 30,Six months ended June 30,
2024202320242023
U.S.
$69,943 $65,629 $140,129 $133,831 
Canada
5,065 5,006 9,820 10,020 
United Kingdom6,374 582 13,154 1,137 
International-other (1)
6,854 3,970 13,276 7,795 
Total$88,236 $75,187 $176,379 $152,783 
(1)Geographic location is presented as "International-other" when location data is not available.
Principal-agent considerations
Our revenue contracts are with game players who are our customers. We have exclusive control over all content, pricing, and overall functionality of games accessed by players. Our games are played on various third-party platforms for which the platform providers collect proceeds from our customers and remit us an amount after deducting a fee for processing and other agency services. We record revenue at the gross amount charged to our customers and classify fees paid to platform providers (such as Apple, Facebook, and Google) within cost of revenue, contract assets, contract liabilities and other disclosures.
Contract assets, contract liabilities and other disclosures
Customer payments are based on the payment terms established in our contracts. Payments for purchase of virtual currency are required at time of purchase, are non-refundable and relate to non-cancellable contracts that specify our performance obligations. All payments are initially recorded as revenue, as the player has no right of return after the purchase, consistent with our standard terms and conditions. Based on our analysis, at each period end, we estimate the number of days to consume virtual currency. This represents the revenue amount where the performance obligation has not been met and is deferred as a contract liability until we satisfy the obligation. The contract asset consists of platform fees for which revenue has not been recognized. For subscription revenue, the remaining portion of the daily ratable monthly subscription is recorded as a contract liability and the applicable platform fees as a contract asset.
The following table summarized our opening and closing balances in contract assets and contract liabilities (in thousands):
As of June 30,As of December 31,
20242023
Contract assets(1)
$533 $756 
Contract liabilities1,777 2,520 
(1)Contract assets are included within prepaid expenses and other assets in our consolidated balance sheet.
v3.24.2.u1
Short-term investments
 6 Months Ended
Jun. 30, 2024
Short-Term Investments [Abstract]  
Short-term investments Short-term investments The Company holds investments in marketable securities with the intention of selling these investments within a relatively short period of time (3-6 months). As such, gains or losses from holding or trading these securities were recognized in the Statements of Income. At June 30, 2024, short term investments comprised of fixed time deposits classified as trading.
v3.24.2.u1
Goodwill and intangible assets
 6 Months Ended
Jun. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and intangible assets Goodwill and intangible assets
There were no changes to the carrying amount of goodwill in the six months ended June 30, 2024. We recognized an aggregate $269.9 million impairment of goodwill and intangibles in 2022. Changes in the carrying amount of intangible assets were as follows (in thousands):
Useful lifeJune 30, 2024December 31, 2023
Gross amount
Accumulated
amortization
Impairment Net amountGross amount
Accumulated
amortization
Impairment Net amount
Goodwillindefinite$651,129 $— $(254,893)$396,236 $651,597 $— $(254,893)$396,704 
Trademarksindefinite50,000 — (15,000)35,000 50,000 — (15,000)35,000 
Customer relationships4 years83,998 (76,500)— 7,498 84,271 (75,387)— 8,884 
Purchased technology
5-10 years
52,504 (45,895)— 6,609 52,707 (45,544)— 7,163 
Development costs3 years9,486 (9,486)— — 9,486 (9,486)— — 
Software
4-5 years
2,948 (2,496)— 452 2,968 (2,444)— 524 
Total$850,065 $(134,377)$(269,893)$445,795 $851,029 $(132,861)$(269,893)$448,275 
The following reflects amortization expense related to intangible assets included with depreciation and amortization (in thousands):
Three months ended June 30,Six months ended June 30,
2024202320242023
Amortization Expense$772.1 $4.2 $1,549.8 $8.2 
v3.24.2.u1
Debt
 6 Months Ended
Jun. 30, 2024
Debt Disclosure [Abstract]  
Debt Debt
The components of debt at June 30, 2024 and December 31, 2023 are as follows (in thousands):
As of June 30,As of December 31,
20242023
4.60% Senior Notes due to related party due 2026
$35,992 $38,778 
Total debt35,992 38,778 
Less: Short-term debt— 38,778 
Total Long-term debt$35,992 $— 
4.60% Senior Notes due to related party due 2026
The 4.60% Senior Notes due to related party, which in aggregate total KRW100 billion at inception, accrue 4.60% interest quarterly on the outstanding principal amount until maturity. Accrued interest and outstanding principal, after deducting any voluntary repayments, are due in full at maturity (May 27, 2026).
Voluntary principal and interest payments were made in June and September 2020. Principal of KRW20 billion and interest of KRW1.2 billion were paid in June 2020 and principal of KRW30 billion and interest of KRW3.1 billion were paid in September 2020. In May 2024, a voluntary interest payment of KRW13.2 billion was made, and the maturity of the remaining outstanding principal amount under the 4.60% Senior Notes was extended by two years to May 27, 2026.
v3.24.2.u1
Fair value measurements
 6 Months Ended
Jun. 30, 2024
Fair Value Disclosures [Abstract]  
Fair value measurements Fair value measurements
The carrying values of our accounts receivable, prepaid expenses and other current assets, accounts payable, accrued liabilities and short-term borrowings approximate their fair values due to the short-term nature of these instruments.
Our cash equivalents (Level 1 of fair value hierarchy) consist of money market funds and Korean government bonds totaling $269.2 million, and short-term investments (Level 2 of fair value hierarchy) comprised of fixed time or certificates of deposit with maturity periods greater than 90 days totaling $70.0 million as of June 30, 2024. As of December 31, 2023, our cash equivalents (Level 1 of fair value hierarchy) consisted of money market funds and Korean government bonds totaling $206.9 million, and short-term investments (Level 2 of fair value hierarchy) comprised of fixed time or certificates of deposit with maturity periods greater than 90 days totaling $67.8 million. We rely on credit market data to track interest rates for other entities with similar risk profiles.
We record all debt at inception at fair value. We perform subsequent analysis on available data to evaluate the fair value of our borrowing as of the balance sheet date. We rely on credit market data to track interest rates for other entities with similar risk profiles. As of June 30, 2024, the fair value of our senior notes (a Level 3 estimate) was approximately $2.1 million lower than face value.
v3.24.2.u1
Income taxes
 6 Months Ended
Jun. 30, 2024
Income Tax Disclosure [Abstract]  
Income taxes Income taxes
We are subject to federal and state income taxes in Korea, the United States, Malta and Sweden. We account for our provision for income taxes in accordance with ASC 740, Income Taxes, which requires an estimate of the annual effective tax rate for the full year to be applied to the interim period, taking into account year-to-date amounts and projected results for the full year.
Our effective tax rate varies from the statutory Korean income tax rate due to the effect of foreign rate differential, withholding taxes, state and local income taxes, notional interest deduction, FDII deduction, and valuation allowances on deferred tax assets in certain jurisdictions. Our effective tax rate could fluctuate significantly from quarter to quarter based on variations in the estimated and actual level of pre-tax income or loss by jurisdiction, changes in enacted tax laws and regulations, and changes in estimates regarding non-deductible expenses and tax credits. As of June 30, 2024, and December 31, 2023, we have provided a valuation allowance against our net deferred tax assets that we believe, based on the weight of available evidence, are not more likely than not to be realized.
The income tax expense of $17.4 million for the six months ended June 30, 2024, reflects an effective tax rate of 21.4% which is lower than the effective tax rate of 23.7% for the six months ended June 30, 2023. The decrease in rate from 2023 to 2024 is primarily due to an increase in the FDII benefit and notional interest deduction.
The effective tax rate of 21.4% for the six months ended June 30, 2024, is higher than the Korean statutory rate of 19%, primarily due to foreign rate differential and state taxes.
v3.24.2.u1
Net income per share
 6 Months Ended
Jun. 30, 2024
Earnings Per Share [Abstract]  
Net income per share Net income per share Basic net income per share is computed by dividing net income by the weighted-average number of common shares outstanding for the period, without consideration for potentially dilutive securities. Diluted net income per share is computed by dividing net income by the weighted-average number of common shares and dilutive common share equivalents outstanding for the period determined using the treasury-stock and if-converted methods. There were no potentially dilutive securities outstanding in either period presented.
v3.24.2.u1
Leases
 6 Months Ended
Jun. 30, 2024
Leases [Abstract]  
Leases Leases
We are a lessee for corporate office spaces in Seattle, Washington, Swieqi, Malta and Seoul, Korea. The lessor for our Seoul, Korea leases is our controlling shareholder, DoubleU Games (see Note 12). Our leases have remaining terms of four to 72 months. We do not have any finance leases. Our total variable and short-term lease payments are immaterial for all periods presented.
The Seattle, Washington lease originated in July 2012 and consists of 13,219 square feet. The lease was extended by amendment in May 2024 and will expire in June 2030.
The Swieqi, Malta office lease was assumed as part of the SuprNation acquisition in October 2023 and consists of 4,770 square feet. The lease will expire in October 2024.
In September 2023, we executed a new sublease with our controlling shareholder, DUG, for 28,497 square feet of office space in Gangnam-gu, Seoul, Korea. The lease term commenced in October 2023, and will expire in September 2028.
Supplemental balance sheet and cash flow information related to operating leases is as follows (in thousands):
 As of June 30, 2024As of December 31, 2023
Total operating lease right-of-use asset, net$6,660 $7,130 
Short-term operating lease liabilities1,362 3,157 
Long-term operating lease liabilities5,472 4,420 
Total operating lease liabilities$6,834 $7,577 
Operating lease costs$1,369 $3,201 
Supplemental cash flow information related to leases was as follows (in thousands):
Six months endedSix months ended
June 30, 2024June 30, 2023
Cash paid for amounts included in the measurement of operating lease liabilities$1,436 $1,715 
Right-of-use assets obtained in exchange for new lease obligations$— $— 
Net increase to operating lease ROU assets resulting from remeasurements of lease obligations
$1,069 $— 
v3.24.2.u1
Accumulated other comprehensive income
 6 Months Ended
Jun. 30, 2024
Statement of Other Comprehensive Income [Abstract]  
Accumulated other comprehensive income Accumulated other comprehensive income
Changes in accumulated other comprehensive income (AOCI) by component for the three and six months ended June 30, 2024 and 2023 were as follows (in thousands):
Three months ended June 30, 2024
Currency Translation
Adjustments
Defined Benefit
Pension Plan
Total
Balance at April 1, 2024$18,988 $(1,893)$17,095 
Foreign currency translation loss, net of tax(2,080)— (2,080)
Actuarial gain/(loss), net of tax— (29)(29)
Balance as of June 30, 2024$16,908 $(1,922)$14,986 
Six months ended June 30, 2024
Currency Translation
Adjustments
Defined Benefit
Pension Plan
Total
Balance at January 1, 2024$22,011 $(2,029)$19,982 
Foreign currency translation loss, net of tax(5,103)— (5,103)
Actuarial gain/(loss), net of tax— 107 107 
Balance as of June 30, 2024$16,908 $(1,922)$14,986 
Three months ended June 30, 2023
Currency Translation
Adjustments
Defined Benefit
Pension Plan
Total
Balance at April 1, 2023$19,611 $(1,589)$18,022 
Foreign currency translation loss, net of tax(166)— (166)
Actuarial gain/(loss), net of tax— 49 49 
Balance as of June 30, 2023$19,445 $(1,540)$17,905 
Six months ended June 30, 2023
Currency Translation
Adjustments
Defined Benefit
Pension Plan
Total
Balance at January 1, 2023$20,792 $(1,432)$19,360 
Foreign currency translation loss, net of tax(1,347)— (1,347)
Actuarial gain/(loss), net of tax— (108)(108)
Balance as of June 30, 2023$19,445 $(1,540)$17,905 
We do not tax effect foreign currency translation gain/(loss) because we have determined such gain/(loss) is permanently reinvested and actuarial gain/(loss) is not tax effected due to a valuation allowance applied to our deferred tax assets.
v3.24.2.u1
Commitments and contingencies
 6 Months Ended
Jun. 30, 2024
Commitments and Contingencies Disclosure [Abstract]  
Commitments and contingencies Commitments and contingencies
Legal contingencies
On April 12, 2018, a class-action lawsuit was filed against DDI-US demanding a return of unfair benefit under the pretext that the Company’s social casino games are not legal in the State of Washington, United States. On August 29, 2022, DDI-US entered into an agreement in principle to settle the aforementioned case and associated proceedings, pursuant to which, among other things, DDI-US would contribute $145.25 million to the settlement fund. This agreement in principle received final court approval with the final contribution to the settlement fund made in June 2023. The Company recorded an accrual of $95.25 million for the year ended December 31, 2022, which was subsequently settled via a $95.25 million cash payment in the second quarter of 2023.
Publishing and license agreements
DoubleU Games
We entered into the DoubleU Games License Agreement on March 7, 2018, and it was subsequently amended on July 1, 2019 and November 27, 2019. In March 2023, we, through DDI-US, entered into a new Game License Agreement with DoubleU Games with effect from January 1, 2023, which supersedes the prior DoubleU Games License Agreement. Pursuant to the new Game License Agreement, DoubleU Games grants us, through DDI-US, a non-exclusive and worldwide license to service and distribute certain DoubleU Games social casino game titles and sequels thereto in the social online game field of use. We are obligated to pay a royalty license fee equal to a certain fixed percentage of the net sales of the licensed game titles to DoubleU Games in connection with these rights. As of June 30, 2024, we licensed approximately 49 game titles under the terms of this agreement.
In October 2023, we, through DDI-US, entered into a Game Development Services Agreement with DoubleUGames, pursuant to which DDI-US will pay service fees to DoubleU Games for certain game maintenance services and product planning and user analysis services provided by DoubleU Games. We incurred total service fees of $2.1 million for the six months ended June 30, 2024.
International Gaming Technologies (“IGT”)
In 2017, we entered into a Game Development, Distribution, and Services agreement with IGT, and it was subsequently amended on January 1, 2019. Under the terms of the agreement, IGT will deliver game assets so that we can port (a process of converting the assets into functioning slot games by platform) the technology for inclusion in our gaming apps. The agreement includes game assets that are used to create new games. Under the agreement, we pay IGT a royalty rate of 7.5% of revenue for their proprietary assets and 15% of revenue for third-party game asset types. We also pay a monthly fee for porting. The initial term of the agreement is ten (10) years with up to two additional five-year periods. Costs incurred in connection with this agreement for the three months ended June 30, 2024 and 2023 totaled $0.6 million and $1.9 million, respectively, and are recognized as a component of cost of revenue. Costs incurred in connection with this agreement for the six months ended June 30, 2024 and 2023 totaled $2.4 million and $3.9 million, respectively, and are recognized as a component of cost of revenue.
v3.24.2.u1
Related party transactions
 6 Months Ended
Jun. 30, 2024
Related Party Transactions [Abstract]  
Related party transactions Related party transactions
Our related party transactions comprise of expenses for use of intellectual property, borrowings, and sublease previously described. We may also incur other expenses with related parties in the ordinary course of business, which are included in the consolidated financial statements.
The following is a summary of expenses charged by our controlling shareholder, DoubleU Games (in thousands):
Three months ended June 30,Six months ended June 30,
Statement of
Income and Comprehensive Income Line Item
2024202320242023
Royalty expense (see Note 11)
$622 $698 $1,241 $1,450 
Cost of revenue
Interest expense (see Note 5)
411 436 843 881 
Interest expense
Rent expense (see Note 9)
323 307 657 624 
General and administrative expense
Other expense
1,194 38 2,319 135 
General and administrative expense
Amounts due to our controlling shareholder, DUG, are as follows (in thousands):
At June 30,At December 31,
Statement of Consolidated
Balance Sheet Line Item
20242023
4.6% Senior Notes due to related party due 2026
$— $38,778 Current portion of borrowings with related party
4.6% Senior Notes due to related party due 2026
35,992 — 
Long-term borrowing with related party
Royalties and other expenses1,353 1,618 A/P and accrued expenses
Short-term lease liability1,222 1,298 Short-term operating lease liabilities
Accrued interest on 4.6% Senior Notes with related party
— 9,501 Other current liabilities
Accrued interest on 4.6% Senior Notes with related party
158 — 
Other non-current liabilities
Long-term lease liability3,597 4,414 Long-term lease liabilities
v3.24.2.u1
Defined benefit pension plan
 6 Months Ended
Jun. 30, 2024
Defined Benefit Pension Plan [Abstract]  
Defined benefit pension plan Defined benefit pension plan We operate a defined benefit pension plan under employment regulations in Korea. The plan services the employees located in Seoul and is a final wage-based pension plan, which provides a specified amount of pension benefit based on length of service. The total benefit obligation of $3.4 million and $4.4 million was included in other non-current liabilities as of June 30, 2024 and December 31, 2023, respectively, and the change in actuarial gains or losses, which is not significant, was included in other comprehensive income. The plan is funded.
v3.24.2.u1
Acquisition
 6 Months Ended
Jun. 30, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]  
Acquisition Acquisition
Business Combination - SuprNation
On October 31, 2023, the Company completed its acquisition of SuprNation, a European i-Gaming operator, which is now a direct, wholly-owned subsidiary of DDI-US, for a total cash purchase price of $30.6 million. There was also a payment into escrow of $5.5 million and a deferred payment of up to $6.5 million, relating to a holdback amount to be calculated based on SuprNation’s performance and financial results 18 months following the transaction close date. The transaction is expected to enable the Company to expand into the i-Gaming market. The Company accounted for the acquisition as a business combination. Transaction costs incurred by the Company in connection with the acquisition, including professional fees, were $2.0 million.
Contemporaneously with entering into the definitive agreement, the Company also adopted an eighteen-month performance-based incentive plan for certain key employees of SuprNation, under which the key employees may earn up to a total of $6.5 million in addition to $5.5 million held in escrow, contingent upon the achievement of certain revenue and other performance targets by the acquired business and the continued employment of such key employees between 2023 and 2025. Such plan became effective at the closing of the transaction.
The Company’s consolidated statement of operations as of June 30, 2024, includes SuprNation’s revenue of $16.2 million and pre-tax loss of $2.3 million for the six months ended June 30, 2024.
v3.24.2.u1
Description of business (Policies)
 6 Months Ended
Jun. 30, 2024
Accounting Policies [Abstract]  
Basis of preparation and consolidation
Basis of preparation and consolidation
Our unaudited condensed consolidated financial statements (“financial statements”) have been prepared in conformity with generally accepted accounting principles in the United States of America (“GAAP”) and the applicable rules and regulations of the Securities and Exchange Commission regarding interim financial information. Certain information and note disclosures normally included in the consolidated financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations.
Our unaudited condensed consolidated financial statements include all adjustments of a normal, recurring nature necessary for the fair statement of the results for the interim periods presented. The results for the interim period presented are not necessarily indicative of those for the full year. The condensed consolidated financial statements should be read in conjunction with our consolidated financial statements for the year ended December 31, 2023.
The condensed consolidated financial statements include the balances and accounts of DDI and our controlled subsidiaries. All significant inter-company transactions, balances and unrealized gains or losses have been eliminated. We view our operations and manage our business as one operating segment.
Use of estimates
Use of estimates
The preparation of financial statements in conformity with Generally Accepted Accounting Principles (GAAP) requires estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosures. We regularly evaluate estimates and assumptions related to provisions for income taxes, revenue recognition, expense accruals, deferred income tax asset valuation allowances, valuation of goodwill and intangibles, and legal contingencies. We base our estimates and assumptions on current facts, historical experience and various other factors that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced may differ materially and adversely from these estimates. To the extent there are material differences between the estimates and the actual results, future operating results may be affected.
Functional currency and translation of financial statements
Functional currency and translation of financial statements
Our functional currency is the Korean Won (“KRW”), and Euro (“EUR” or “€”) and the U.S. Dollar (“dollar,” “USD,” “US$,” or “$”) are the functional currencies of our subsidiaries in Europe and United States, respectively. The accompanying consolidated financial statements are presented in USD. The consolidated balance sheets have been translated at the exchange rates prevailing at each balance sheet date. The consolidated statement of comprehensive income and statement of cash flows have been translated using the weighted-average exchange rates prevailing during the periods of each statement. The equity capital is denominated in the functional currency, KRW, and is translated at historical exchange rates. All translation adjustments resulting from translating into the reporting currency are accumulated as a separate component of accumulated other comprehensive income in shareholders’ equity. Gains or losses resulting from foreign currency transactions are included in other income (expense).
Intercompany monetary items denominated in foreign currencies are translated into the functional currency at the exchange rate at the reporting date with the gain or loss arising on translation recorded to other income (expense). Intercompany non-monetary items that are measured at historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions.
Cash and cash equivalents
Cash and cash equivalents
We consider all money market funds and short-term investments with a maturity of three months or less when acquired to be cash and cash equivalents. Cash and cash equivalents are held by high credit quality financial institutions and balances may exceed limits of federal insurance. We have not experienced any losses resulting from these excess deposits.
Financial instruments and concentration of credit risk
Financial instruments and concentration of credit risk
Financial instruments, which potentially expose us to concentrations of credit risk, consist primarily of cash and cash equivalents, accounts receivable and short-term investments.
Accounts receivable are recorded and carried at the net invoiced amount, which is net of platform payment processing fees, unsecured, and represent amounts due to us based on contractual obligations where an executed contract exists. For our social-casino/free-to-play games, we generally do not require collateral and have not recognized an allowance as management estimates the net receivable is fully collectible. Apple, Inc. (“Apple”), Facebook, Inc. (“Facebook”), and Google, LLC (“Google”) represent significant distribution, marketing, and payment platforms for our games. A substantial portion of our revenue was generated from players who accessed our games through these platforms and a significant concentration of our accounts receivable balance is comprised of balances owed to us by these platforms.
v3.24.2.u1
Description of business (Tables)
 6 Months Ended
Jun. 30, 2024
Accounting Policies [Abstract]  
Summary of Revenue by Major Customers
The following table summarizes the percentage of revenues and accounts receivable generated via our platform providers in excess of 10% of our total revenues and total accounts receivable:
Revenue Concentration
Three months ended June 30,Six months ended June 30,
2024202320242023
Apple51.0 %55.4 %50.6 %55.3 %
Google16.1 %18.9 %16.1 %18.8 %
Facebook14.5 %16.9 %14.6 %17.7 %
Schedule of Concentration of Risk, by Risk Factor
Accounts Receivable Concentration
As of June 30,As of December 31,
20242023
Apple57.8 %59.3 %
Xsolla11.9 %11.3 %
Google9.5 %10.3 %
Facebook8.4 %9.9 %
v3.24.2.u1
Revenue from Contracts with Customers (Tables)
 6 Months Ended
Jun. 30, 2024
Revenue from Contract with Customer [Abstract]  
Summary of Disaggregation of Revenue
The following table represents our disaggregation of revenue between mobile and web platforms (in thousands):
Three months ended June 30,Six months ended June 30,
2024202320242023
Mobile$60,959 $62,468 $121,540 $125,798 
Web27,277 12,719 54,839 26,985 
Total$88,236 $75,187 $176,379 $152,783 
The following table presents our revenue disaggregated based on the geographical location of our players (in thousands):
Three months ended June 30,Six months ended June 30,
2024202320242023
U.S.
$69,943 $65,629 $140,129 $133,831 
Canada
5,065 5,006 9,820 10,020 
United Kingdom6,374 582 13,154 1,137 
International-other (1)
6,854 3,970 13,276 7,795 
Total$88,236 $75,187 $176,379 $152,783 
(1)Geographic location is presented as "International-other" when location data is not available.
Summary of Contract Assets and Liabilities
The following table summarized our opening and closing balances in contract assets and contract liabilities (in thousands):
As of June 30,As of December 31,
20242023
Contract assets(1)
$533 $756 
Contract liabilities1,777 2,520 
(1)Contract assets are included within prepaid expenses and other assets in our consolidated balance sheet.
v3.24.2.u1
Goodwill and intangible assets (Tables)
 6 Months Ended
Jun. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Summary of Goodwill and Intangible Assets Changes in the carrying amount of intangible assets were as follows (in thousands):
Useful lifeJune 30, 2024December 31, 2023
Gross amount
Accumulated
amortization
Impairment Net amountGross amount
Accumulated
amortization
Impairment Net amount
Goodwillindefinite$651,129 $— $(254,893)$396,236 $651,597 $— $(254,893)$396,704 
Trademarksindefinite50,000 — (15,000)35,000 50,000 — (15,000)35,000 
Customer relationships4 years83,998 (76,500)— 7,498 84,271 (75,387)— 8,884 
Purchased technology
5-10 years
52,504 (45,895)— 6,609 52,707 (45,544)— 7,163 
Development costs3 years9,486 (9,486)— — 9,486 (9,486)— — 
Software
4-5 years
2,948 (2,496)— 452 2,968 (2,444)— 524 
Total$850,065 $(134,377)$(269,893)$445,795 $851,029 $(132,861)$(269,893)$448,275 
Summary of Amortization Expense Related to Intangible Assets
The following reflects amortization expense related to intangible assets included with depreciation and amortization (in thousands):
Three months ended June 30,Six months ended June 30,
2024202320242023
Amortization Expense$772.1 $4.2 $1,549.8 $8.2 
v3.24.2.u1
Debt (Tables)
 6 Months Ended
Jun. 30, 2024
Debt Disclosure [Abstract]  
Summary of Debt
The components of debt at June 30, 2024 and December 31, 2023 are as follows (in thousands):
As of June 30,As of December 31,
20242023
4.60% Senior Notes due to related party due 2026
$35,992 $38,778 
Total debt35,992 38,778 
Less: Short-term debt— 38,778 
Total Long-term debt$35,992 $— 
v3.24.2.u1
Leases (Tables)
 6 Months Ended
Jun. 30, 2024
Leases [Abstract]  
Summary of Cash Flow Information Related to Operating Leases
Supplemental balance sheet and cash flow information related to operating leases is as follows (in thousands):
 As of June 30, 2024As of December 31, 2023
Total operating lease right-of-use asset, net$6,660 $7,130 
Short-term operating lease liabilities1,362 3,157 
Long-term operating lease liabilities5,472 4,420 
Total operating lease liabilities$6,834 $7,577 
Operating lease costs$1,369 $3,201 
Supplemental cash flow information related to leases was as follows (in thousands):
Six months endedSix months ended
June 30, 2024June 30, 2023
Cash paid for amounts included in the measurement of operating lease liabilities$1,436 $1,715 
Right-of-use assets obtained in exchange for new lease obligations$— $— 
Net increase to operating lease ROU assets resulting from remeasurements of lease obligations
$1,069 $— 
v3.24.2.u1
Accumulated other comprehensive income (Tables)
 6 Months Ended
Jun. 30, 2024
Statement of Other Comprehensive Income [Abstract]  
Summary of Accumulated Other Comprehensive Income (Loss)
Changes in accumulated other comprehensive income (AOCI) by component for the three and six months ended June 30, 2024 and 2023 were as follows (in thousands):
Three months ended June 30, 2024
Currency Translation
Adjustments
Defined Benefit
Pension Plan
Total
Balance at April 1, 2024$18,988 $(1,893)$17,095 
Foreign currency translation loss, net of tax(2,080)— (2,080)
Actuarial gain/(loss), net of tax— (29)(29)
Balance as of June 30, 2024$16,908 $(1,922)$14,986 
Six months ended June 30, 2024
Currency Translation
Adjustments
Defined Benefit
Pension Plan
Total
Balance at January 1, 2024$22,011 $(2,029)$19,982 
Foreign currency translation loss, net of tax(5,103)— (5,103)
Actuarial gain/(loss), net of tax— 107 107 
Balance as of June 30, 2024$16,908 $(1,922)$14,986 
Three months ended June 30, 2023
Currency Translation
Adjustments
Defined Benefit
Pension Plan
Total
Balance at April 1, 2023$19,611 $(1,589)$18,022 
Foreign currency translation loss, net of tax(166)— (166)
Actuarial gain/(loss), net of tax— 49 49 
Balance as of June 30, 2023$19,445 $(1,540)$17,905 
Six months ended June 30, 2023
Currency Translation
Adjustments
Defined Benefit
Pension Plan
Total
Balance at January 1, 2023$20,792 $(1,432)$19,360 
Foreign currency translation loss, net of tax(1,347)— (1,347)
Actuarial gain/(loss), net of tax— (108)(108)
Balance as of June 30, 2023$19,445 $(1,540)$17,905 
v3.24.2.u1
Related party transactions (Tables)
 6 Months Ended
Jun. 30, 2024
Related Party Transactions [Abstract]  
Summary of Expenses Charged by Controlling Shareholder
The following is a summary of expenses charged by our controlling shareholder, DoubleU Games (in thousands):
Three months ended June 30,Six months ended June 30,
Statement of
Income and Comprehensive Income Line Item
2024202320242023
Royalty expense (see Note 11)
$622 $698 $1,241 $1,450 
Cost of revenue
Interest expense (see Note 5)
411 436 843 881 
Interest expense
Rent expense (see Note 9)
323 307 657 624 
General and administrative expense
Other expense
1,194 38 2,319 135 
General and administrative expense
Summary of Amounts Due to our Controlling Shareholder
Amounts due to our controlling shareholder, DUG, are as follows (in thousands):
At June 30,At December 31,
Statement of Consolidated
Balance Sheet Line Item
20242023
4.6% Senior Notes due to related party due 2026
$— $38,778 Current portion of borrowings with related party
4.6% Senior Notes due to related party due 2026
35,992 — 
Long-term borrowing with related party
Royalties and other expenses1,353 1,618 A/P and accrued expenses
Short-term lease liability1,222 1,298 Short-term operating lease liabilities
Accrued interest on 4.6% Senior Notes with related party
— 9,501 Other current liabilities
Accrued interest on 4.6% Senior Notes with related party
158 — 
Other non-current liabilities
Long-term lease liability3,597 4,414 Long-term lease liabilities
v3.24.2.u1
Description of business - Additional Information (Details)
€ in Millions, $ in Millions
 6 Months Ended 12 Months Ended
Oct. 31, 2023
EUR (€)
Oct. 27, 2023
USD ($)
Jun. 30, 2024
segment
Dec. 31, 2017
USD ($)
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]        
Foreign currency exchange rate, translation   1.064    
Number of operating segments | segment     1  
SuprNation        
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]        
Purchase price € 34.3 $ 36.5    
DoubleU Games Co., Ltd. | Equity Investee        
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]        
Equity interest, ownership percentage     67.10%  
Non-DoubleU Games, Co., Ltd.        
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]        
Minority interest, ownership percentage     32.90%  
STIC Special Situation Private Equity Fund        
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]        
Minority interest, ownership percentage     20.20%  
Participants in IPO        
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]        
Minority interest, ownership percentage     12.70%  
International Gaming Technologies        
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]        
Purchase price | $       $ 825.0
v3.24.2.u1
Description of business - Summary of Percentage of Revenues (Details) - Customer Concentration Risk
 3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Dec. 31, 2023
Revenue Concentration | Apple          
Revenue, Major Customer [Line Items]          
Concentration risk, percentage 51.00% 55.40% 50.60% 55.30%  
Revenue Concentration | Google          
Revenue, Major Customer [Line Items]          
Concentration risk, percentage 16.10% 18.90% 16.10% 18.80%  
Revenue Concentration | Facebook          
Revenue, Major Customer [Line Items]          
Concentration risk, percentage 14.50% 16.90% 14.60% 17.70%  
Accounts Receivable Concentration | Apple          
Revenue, Major Customer [Line Items]          
Concentration risk, percentage     57.80%   59.30%
Accounts Receivable Concentration | Xsolla          
Revenue, Major Customer [Line Items]          
Concentration risk, percentage     11.90%   11.30%
Accounts Receivable Concentration | Google          
Revenue, Major Customer [Line Items]          
Concentration risk, percentage     9.50%   10.30%
Accounts Receivable Concentration | Facebook          
Revenue, Major Customer [Line Items]          
Concentration risk, percentage     8.40%   9.90%
v3.24.2.u1
Revenue from Contracts with Customers - Additional Information (Details)
 6 Months Ended
Jun. 30, 2024
Revenue from Contract with Customer [Abstract]  
Subscription services, term 1 month
v3.24.2.u1
Revenue from Contracts with Customers - Summary of Disaggregation of Revenue (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Disaggregation of Revenue [Line Items]        
Revenue $ 88,236 $ 75,187 $ 176,379 $ 152,783
U.S.        
Disaggregation of Revenue [Line Items]        
Revenue 69,943 65,629 140,129 133,831
Canada        
Disaggregation of Revenue [Line Items]        
Revenue 5,065 5,006 9,820 10,020
United Kingdom        
Disaggregation of Revenue [Line Items]        
Revenue 6,374 582 13,154 1,137
International-other (1)        
Disaggregation of Revenue [Line Items]        
Revenue 6,854 3,970 13,276 7,795
Mobile        
Disaggregation of Revenue [Line Items]        
Revenue 60,959 62,468 121,540 125,798
Web        
Disaggregation of Revenue [Line Items]        
Revenue $ 27,277 $ 12,719 $ 54,839 $ 26,985
v3.24.2.u1
Revenue from Contracts with Customers - Summary of Contract Assets and Contract Liabilities (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Contract With Customer Asset And Liability [Line Items]    
Contract liabilities $ 1,777 $ 2,520
Prepaid Expenses And Other Assets    
Contract With Customer Asset And Liability [Line Items]    
Contract assets $ 533 $ 756
v3.24.2.u1
Goodwill and intangible assets - Additional Information (Details) - USD ($)
 6 Months Ended 12 Months Ended
Jun. 30, 2024
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]    
Goodwill, period increase (decrease) $ 0  
Impairment of goodwill and intangibles   $ 269,900,000
v3.24.2.u1
Goodwill and intangible assets - Summary of Goodwill and Intangible Assets (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]    
Goodwill, gross amount $ 651,129 $ 651,597
Goodwill, impairment loss (254,893) (254,893)
Goodwill, net amount 396,236 396,704
Finite-Lived Intangible Assets [Line Items]    
Accumulated amortization (134,377) (132,861)
Intangible Assets, Net (Including Goodwill) [Abstract]    
Total goodwill and intangible assets, gross 850,065 851,029
Accumulated amortization (134,377) (132,861)
Impairment (269,893) (269,893)
Total goodwill and intangible assets, net 445,795 448,275
Trademarks    
Indefinite-lived Intangible Assets [Line Items]    
Intangible assets, gross amount 50,000 50,000
Impairment (15,000) (15,000)
Intangible assets, net $ 35,000 35,000
Customer relationships    
Finite-Lived Intangible Assets [Line Items]    
Useful life (in years) 4 years  
Intangible assets, gross amount $ 83,998 84,271
Accumulated amortization (76,500) (75,387)
Intangible assets, net amount 7,498 8,884
Intangible Assets, Net (Including Goodwill) [Abstract]    
Accumulated amortization (76,500) (75,387)
Purchased technology    
Finite-Lived Intangible Assets [Line Items]    
Intangible assets, gross amount 52,504 52,707
Accumulated amortization (45,895) (45,544)
Intangible assets, net amount 6,609 7,163
Intangible Assets, Net (Including Goodwill) [Abstract]    
Accumulated amortization $ (45,895) (45,544)
Purchased technology | Minimum    
Finite-Lived Intangible Assets [Line Items]    
Useful life (in years) 5 years  
Purchased technology | Maximum    
Finite-Lived Intangible Assets [Line Items]    
Useful life (in years) 10 years  
Development costs    
Finite-Lived Intangible Assets [Line Items]    
Useful life (in years) 3 years  
Intangible assets, gross amount $ 9,486 9,486
Accumulated amortization (9,486) (9,486)
Intangible assets, net amount 0 0
Intangible Assets, Net (Including Goodwill) [Abstract]    
Accumulated amortization (9,486) (9,486)
Software    
Finite-Lived Intangible Assets [Line Items]    
Intangible assets, gross amount 2,948 2,968
Accumulated amortization (2,496) (2,444)
Intangible assets, net amount 452 524
Intangible Assets, Net (Including Goodwill) [Abstract]    
Accumulated amortization $ (2,496) $ (2,444)
Software | Minimum    
Finite-Lived Intangible Assets [Line Items]    
Useful life (in years) 4 years  
Software | Maximum    
Finite-Lived Intangible Assets [Line Items]    
Useful life (in years) 5 years  
v3.24.2.u1
Goodwill and intangible assets - Summary of Amortization Expense Related to Intangible Assets (Details) - USD ($)
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]        
Amortization expense $ 772,100 $ 4,200 $ 1,549,800 $ 8,200
v3.24.2.u1
Debt - Summary of Debt (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Debt Instrument [Line Items]    
Long-term debt $ 35,992 $ 38,778
Less: Short-term debt [1] 0 38,778
Total Long-term debt [2] $ 35,992 0
4.60% Senior Notes due to related party due 2026    
Debt Instrument [Line Items]    
Interest rate, percent 4.60%  
Long-term debt $ 35,992 $ 38,778
[1] Includes related party notes payable of $0 and $38,778 at June 30, 2024 and December 31, 2023, respectively (see Note 12).
[2] Includes related party notes payable of $37,125 and $0 at June 30, 2024 and December 31, 2023, respectively (see Note 12).
v3.24.2.u1
Debt - Additional Information (Details) - 4.60% Senior Notes due to related party due 2026 - KRW (₩)
₩ in Billions
 1 Months Ended
May 31, 2024
Sep. 30, 2020
Jun. 30, 2020
Jun. 30, 2024
Debt Instrument [Line Items]        
Interest rate, percent       4.60%
Related Party        
Debt Instrument [Line Items]        
Interest rate, percent       4.60%
Principal paid   ₩ 30.0 ₩ 20.0  
Interest paid ₩ 13.2 ₩ 3.1 ₩ 1.2  
Extended term (in years) 2 years      
Stic | Related Party        
Debt Instrument [Line Items]        
Debt instrument face amount       ₩ 100.0
v3.24.2.u1
Fair value measurements - Additional Information (Details) - USD ($)
$ in Thousands
 6 Months Ended
Jun. 30, 2024
Dec. 31, 2023
Fixed time or certificates of deposit, maturity (in days) 90 days  
Short-term investments $ 70,000 $ 67,756
Fair Value, Inputs, Level 3 | Senior Notes    
Amount by which the fair value of debt exceeds the carrying value 2,100  
Money Market Funds and Korean Market Government Bonds    
Cash equivalents, carrying value 269,200 206,900
Money Market Funds | Fair Value, Inputs, Level 2    
Short-term investments $ 70,000 $ 67,800
v3.24.2.u1
Income taxes - Additional Information (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Income Tax Disclosure [Abstract]        
Income tax (expense) benefit $ 9,375 $ 7,561 $ 17,367 $ 14,320
Effective income tax rate reconciliation percentage     21.40% 23.70%
Effective income tax rate reconciliation at federal statutory income tax rate     19.00%  
v3.24.2.u1
Net income per share - Additional Information (Details) - USD ($)
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Earnings Per Share [Abstract]        
Dilutive securities $ 0 $ 0 $ 0 $ 0
v3.24.2.u1
Leases - Additional Information (Details) - ft²
Jun. 30, 2024
Oct. 31, 2023
Sep. 30, 2023
Jul. 31, 2012
Minimum        
Lessee, operating lease, remaining lease term (in months) 4 months      
Maximum        
Lessee, operating lease, remaining lease term (in months) 72 months      
Seattle        
Area of land (in square feet)       13,219,000
Malta        
Area of land (in square feet)   4,770,000    
Gangnamgu        
Area of land (in square feet)     28,497,000  
v3.24.2.u1
Leases - Summary of Cash Flow Information Related to Operating Leases (Details) - USD ($)
$ in Thousands
 6 Months Ended 12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Dec. 31, 2023
Leases [Abstract]      
Operating lease right-of-use assets, net $ 6,660   $ 7,130
Short-term operating lease liabilities [1] 1,362   3,157
Long-term operating lease liabilities [2] 5,472   4,420
Total operating lease liabilities 6,834   7,577
Operating lease costs 1,369   $ 3,201
Cash paid for amounts included in the measurement of operating lease liabilities 1,436 $ 1,715  
Right-of-use assets obtained in exchange for new lease obligations 0 0  
Net increase to operating lease ROU assets resulting from remeasurements of lease obligations $ 1,069 $ 0  
[1] Includes related party operating lease liability of $1,222 and $1,298 at June 30, 2024 and December 31, 2023, respectively (see Note 12).
[2] Includes related party operating lease liability of $3,597 and $4,414 at June 30, 2024 and December 31, 2023, respectively (see Note 12).
v3.24.2.u1
Accumulated other comprehensive income - Summary of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Accumulated Other Comprehensive Income (Loss) [Roll Forward]        
Balance, beginning of period $ 17,095 $ 18,022 $ 19,982 $ 19,360
Foreign currency translation loss, net of tax (2,080) (166) (5,103) (1,347)
Actuarial gain/(loss), net of tax (29) 49 107 (108)
Balance, end of period 14,986 17,905 14,986 17,905
Currency Translation Adjustments        
Accumulated Other Comprehensive Income (Loss) [Roll Forward]        
Balance, beginning of period 18,988 19,611 22,011 20,792
Foreign currency translation loss, net of tax (2,080) (166) (5,103) (1,347)
Balance, end of period 16,908 19,445 16,908 19,445
Defined Benefit Pension Plan        
Accumulated Other Comprehensive Income (Loss) [Roll Forward]        
Balance, beginning of period (1,893) (1,589) (2,029) (1,432)
Actuarial gain/(loss), net of tax (29) 49 107 (108)
Balance, end of period $ (1,922) $ (1,540) $ (1,922) $ (1,540)
v3.24.2.u1
Commitments and contingencies - Additional Information (Details)
$ in Thousands
 3 Months Ended 6 Months Ended 12 Months Ended
Aug. 29, 2022
USD ($)
Jun. 30, 2024
USD ($)
titles
Jun. 30, 2023
USD ($)
Jun. 30, 2024
USD ($)
titles
period
Jun. 30, 2023
USD ($)
Dec. 31, 2022
USD ($)
Loss contingency accrual, payments     $ 95,250      
Purchase commitment, number of additional optional periods | period       2    
Optional purchase commitment, term (in years)       5 years    
International Gaming Technologies            
Purchase commitment, term (in years)       10 years    
Cost of revenue   $ 600 $ 1,900 $ 2,400 $ 3,900  
International Gaming Technologies | Proprietary Assets            
Percentage of royalty on revenue   7.50%   7.50%    
International Gaming Technologies | Third Party Game Asset Types            
Percentage of royalty on revenue   15.00%   15.00%    
Maximum            
Litigation settlement, amount awarded to other party $ 145,250          
Loss contingency accrual, payments           $ 95,250
DoubleU Games License Agreement            
Number of titled games | titles   49   49    
Game Development And Services Agreement With Double U Games            
Services fees for game maintenance and product planning       $ 2,100    
v3.24.2.u1
Related party transactions - Summary of Expenses Charged by Controlling Shareholder (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Related Party Transaction [Line Items]        
Interest expense [1] $ 426 $ 436 $ 835 $ 898
Cost of revenue        
Related Party Transaction [Line Items]        
Royalty expense 622 698 1,241 1,450
Interest expense        
Related Party Transaction [Line Items]        
Interest expense 411 436 843 881
General and administrative expense        
Related Party Transaction [Line Items]        
Rent expense 323 307 657 624
Other expense $ 1,194 $ 38 $ 2,319 $ 135
[1] Includes related party interest expense of $411 and $436 for the three months ended June 30, 2024 and 2023, respectively, and $843 and $881 for the six months ended June 30, 2024 and 2023, respectively (see Note 12).
v3.24.2.u1
Related party transactions - Summary of Amounts Due to Controlling Shareholder (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Schedule of related Party transactions due to our parent [Line Items]    
Current portion of borrowings with related party [1] $ 0 $ 38,778
Long-term borrowings with related party [2] 35,992 0
Accounts payable and accrued expenses [3] 13,249 13,293
Short-term lease liability [4] 1,362 3,157
Other current liabilities [5] 1,474 10,645
Other non-current liabilities [6] 3,932 1,681
Long-term lease liability [7] $ 5,472 4,420
4.60% Senior Notes due to related party due 2026    
Schedule of related Party transactions due to our parent [Line Items]    
Interest rate, percent 4.60%  
Related Party    
Schedule of related Party transactions due to our parent [Line Items]    
Current portion of borrowings with related party $ 0 38,778
Long-term borrowings with related party 35,992 0
Accounts payable and accrued expenses 1,353 1,618
Short-term lease liability 1,222 1,298
Other current liabilities 0 9,501
Other non-current liabilities 158 0
Long-term lease liability $ 3,597 $ 4,414
Related Party | 4.60% Senior Notes due to related party due 2026    
Schedule of related Party transactions due to our parent [Line Items]    
Interest rate, percent 4.60%  
[1] Includes related party notes payable of $0 and $38,778 at June 30, 2024 and December 31, 2023, respectively (see Note 12).
[2] Includes related party notes payable of $37,125 and $0 at June 30, 2024 and December 31, 2023, respectively (see Note 12).
[3] Includes related party royalty and other payables of $1,353 and $1,618 at June 30, 2024 and December 31, 2023, respectively (see Note 12).
[4] Includes related party operating lease liability of $1,222 and $1,298 at June 30, 2024 and December 31, 2023, respectively (see Note 12).
[5] Includes related party interest payable of $0 and $9,501 at June 30, 2024 and December 31, 2023, respectively (see Note 12).
[6] Includes related party interest payable of $158 and $0 at June 30, 2024 and December 31, 2023, respectively (see Note 12).
[7] Includes related party operating lease liability of $3,597 and $4,414 at June 30, 2024 and December 31, 2023, respectively (see Note 12).
v3.24.2.u1
Defined benefit pension Plan - Additional Information (Details) - USD ($)
$ in Millions
Jun. 30, 2024
Dec. 31, 2023
Defined Benefit Pension Plan [Abstract]    
Total benefit obligation $ 3.4 $ 4.4
v3.24.2.u1
Acquisition - Additional Information (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Oct. 31, 2023
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Business Acquisition [Line Items]          
Revenue   $ 88,236 $ 75,187 $ 176,379 $ 152,783
Income (loss) before tax   $ 42,640 $ 31,918 80,993 $ 62,349
SuprNation          
Business Acquisition [Line Items]          
Total cash purchase price $ 30,600        
Consideration transferred, escrow 5,500        
Contingent consideration liability $ 6,500        
Performance-based holdback, term (in months) 18 months        
Transaction costs $ 2,000        
Revenue       16,200  
Income (loss) before tax       $ (2,300)  
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