DoubleDown Interactive Co., Ltd.

Good afternoon and welcome to Double Down Interactive's earnings conference call for the first quarter ended March 31st, 2024. My name is Brianna and I will be your operator this afternoon. Prior to this call, Double Down issued its financial results for the first quarter of 2024 in a press release, a copy of which has been furnished in a report on Form 6K filed with 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 Double Down CEO, Mr. In-Cook Kim, and CFO, Mr. Joe Sigrist. Following the remarks, we will open the call for questions. 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 in Section 21E of the Securities Exchange Act of 1934, as amended, and the company hereby claims 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 strategies, 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 20F filed with SEC on March 28, 2024, and other SEC filings for a more detailed discussion of the risks that could impact future operating results and financial conditions. These forward-looking statements are made only as of the date of this call. The company does not undertake and expressly disclaims any obligations 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 the 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 Double Down's Form 6-K filled with 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. It's now my pleasure to turn the call over to Double Down's CEO, In-Kook Kim.

Thank you, Brianna. Good afternoon, everyone.

Thank you for joining us on our 2024 first quarter earnings call. Today, we announced that total Q1 revenue was $88.1 million. with $79.8 million generated by our social casino free-to-play games and $8.3 million coming from the operations of SuperNation, our recent iGaming acquisition. Q1 revenue from our social casino free-to-play games was up 1% on a quarterly sequential basis and up 3% compared to Q1 2023. And we continue to do an excellent job in converting revenue to profit and cash flow with adjusted EBITDA for the first quarter rising 26% year-over-year to $31.9 million and cash flow from operations at $35 million. Our flagship social casino game, Double Down Casino, or DDC, continues to be the driver of our strong results. as we generated year-over-year increases in some of our most important KPIs including average monthly revenue per payer and payer conversion rate. More specifically, we are growing monetization with our core paying players as they continue to recognize the great entertainment experience and compelling value that we offer. We believe our revenue growth reflects the benefits we are seeing from the introduction of new meta features within Double Dawn Casino. These features, such as Lucky Orb and Flame Power, which I mentioned during last quarter's call, add to the fun of playing DDC, thereby driving player engagement and retention, and we believe leading to higher overall monetization. In addition, during this second quarter, We plan to launch Mission Pass, which offers players daily, weekly, and monthly quests alongside their casino game play. Our strategy in social casino is to continue enhancing the entertainment value of DDC while remaining disciplined in user acquisition and R&D spending to drive strong profitability and free cash flow. Turning to SuperNation, Q1 represented our first full quarter of operation of this iGaming business. Our focus at this early stage is to scale the business, and we were pleased with the results so far with SuperNation's Q1 revenue contribution of $8.3 million. The iGaming sector represents an exciting growth opportunity for Double Down, and we are very pleased be up to such a strong start with plans for continued improvement. The SuperNation acquisition is just an initial step in our goal to diversify our business into new gaming categories that have highly addressable market opportunities. Given our excellent financial foundation, we continue to evaluate ways to expand into these markets both organically and through M&A. As we execute on this strategy, we will apply the same capital discipline we have exhibited over the years. As an example, on our first quarter call, I highlighted the launch of our first game in the skill-based gaming category. However, after ramping up marketing investment to acquire players in Q1, Its performance metrics did not meet our requirements. And as such, we have decided not to proceed with additional user acquisition activities going forward. We are continuing to invest in new internally developed mobile games, including those we expect to launch in 2024. But our overriding principle, when we undertake these new game launches, is to ensure we are deploying our capital and expertise in a manner that creates additional value for shareholders. If that proves not to be the case, we have demonstrated that we will quickly move on. Now I turn it over to our CFO, Joe Sigrist, to walk us through our financials before providing my closing remarks.