DoubleDown Interactive Co., Ltd.

Good afternoon and welcome to Double Down Interactive's earnings conference call for the first quarter ended March 31st, 2023. My name is Sean and I will be your operator this afternoon. Prior to this call, Double Down issued its financial results for the first quarter 2023 in a press release, a copy of which has been furnished in a report on Form 6-K filed with the SEC and is available in the investor relations section of the company's website at www.doubledowninteractive.com. You can find the link to the investor relations section at the top of the homepage. Joining us on today's call are Doubledown CEO, Mr. In-Kook Kim, and its CFO, Mr. Joe Sigrist. Following their remarks, we will open the call for questions. Before we begin, Richard Land, the company's outside investor relations advisor, will make a brief introductory statement. Mr. Land.

Thank you, Sean. Before management begins their formal remarks, we need to remind everyone that some of the management's comments today will be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended, and Section 21E of the Securities Exchange Act of 1934 as amended, and we hereby claim the protection of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements about future events and include expectations and projections, not present or historical facts, and can be identified by the use of words such as may, might, will, expect, assume, believe, intend, estimate, continue, should, anticipate, or other similar terms. Forward-looking statements include and are not limited to those regarding the company's future plans, mergers, and acquisition strategy, strategic and financial objectives, expected performance, and financial outlook. Forward-looking statements are subject to numerous risks and uncertainties that could cause actual results to differ materially and adversely from what the company expects. Therefore, you should exercise caution in interpreting and relying on them. We refer you to Double Down's annual report on Form 20-F, filed with the SEC on March 31, 2023, and other SEC filings for a more detailed discussion of the risks that could impact future operating results and financial condition. These forward-looking statements are made only as of the date of this call. The company does not undertake and expressly disclaims any obligation to update or alter the forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. During today's call, management will discuss non-GAAP measures which are believed by management to be useful in evaluating the company's operating performance. These measures should not be considered superior to in isolation or as a substitute for the financial results prepared in accordance with GAAP. A full reconciliation of these measures to the most directly comparable GAAP measure is available in the earnings release and on our form 6K filed to the SEC prior to this call. I would like to remind everyone that this call is being recorded. and will be made available for replay via a link in the investor relations section of Double Down's website. Thank you for your patience with that. It's now my pleasure to turn the call over to Double Down's CEO, Inko Kim.

Thank you, Richard. Good afternoon, everyone. Thank you for joining us on our 2023 first quarter earnings call. Current revenue of $77.6 million. What's up? on a quarterly sequential basis marking our first quarterly sequential revenue increase since the peak of the COVID pandemic period. We also continue to generate consistent attractive adjusted EBITDA margins and operating cash flow with adjusted EBITDA in the first quarter also rising on a quarterly sequential basis to $25.4 million and cash flow from operations of $19.2 million. Our solid financial results are based on the ongoing strength of our flagship dovetail casino or DDC gaming app. We continue to benefit from the sickness and loyalty of DDC players who choose to pay, which has established the foundation for our consistent financial results. As many of you know, DDC revenue is primarily driven by those who have been playing our games for several years, as opposed to newly acquired players. For example, 92% of our 2022 annual revenue was generated by players who were acquired in prior years. In January, we announced a definitive agreement for Double Down to acquire SuperNation, which operates three iGaming sites in Western Europe. We are working towards gaining the required regulatory approvals and currently expect to close this transaction later this year. The acquisition of SuperNation will further diversify our sources of revenue by type and geography while marking our entry into the high-growth iGaming sector. This acquisition will also allow Double Down to leverage its core competency of creating games that entertain and engage users. In that regard, along with our M&A activities, we continue to invest in our own app development initiatives, primarily focused outside the social casino category. This includes multiple projects running in parallel that are supported by our game developers in Seoul and Seattle. During last quarter's conference call, we mentioned that a new gaming app, Spinning Space, had reached its soft launch status. While we were optimistic for the potential of this game throughout its development process and approach, the performance metrics seen during the soft launch did not meet our criteria. As a result, we have determined not to move forward with a full global introduction of the game and are refocusing related resources on other game development activities. This includes adding these resources to games that we expect to launch later in 2023. I will highlight that our decision not to move forward with the global launch of Spinning Space sticks to our commitment to invest capital only when we are confident that we can achieve appropriate returns. Now I will turn it over to our CFO, Joe Sigrist, to walk you through our financials before providing my closing remarks. Joe Sigrist Thank you, I.K., and good afternoon, everyone.