DoubleDown Interactive Co., Ltd.

Good afternoon and welcome to Double Down Interactive earnings conference call for the first quarter ended March 31st, 2025. My name is Michelle and I will be your operator this afternoon. Prior to this call, Double Down issued its financial results for the first quarter of 2025 in a press release, a copy of which 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. Nkuk Kim, and its CFO, Mr. Joe Segrist. Following their remarks, we will open the call for your questions. Before we begin, Richard Land, the company's investor relations advisor, will make a brief introductory statement. Mr. Land?

Thank you, Michelle. Before management begins their formal remarks, we need to remind everyone that some of 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 that 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 20F, filed with the SEC on April 21, 2025, 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. As noted in this afternoon's press release, beginning with the 2024 fourth quarter, Double Down is reporting its financial results in accordance with IFRS. As such, the financial results for the 2025 first quarter reflect IFRS as the comparable period for 2024. Previously, the company reported its financial results in accordance with GAAP accounting standards. The change to IFRS aligns Double Down's financial reporting with the financial reporting standards of its controlling shareholder in Korea. During today's call, management will discuss non-IFRS financial 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 IFRS. A full reconciliation of these measures to the most directly comparable IFRS measure is available in the earnings release issued this afternoon. 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. With that, it's now my pleasure to turn the call over to Double Down's CEO, Nkuk Kim.

Thank you, Rach. Good afternoon, everyone. Thank you for joining us on our 2025 first quarter earnings call. This afternoon, we reported first quarter results with consolidated revenue of $83.5 million and adjusted EBITDA of $30.8 million. Q1 revenue was comprised of $17.3 million generated by our social casino free-to-play games and $13.2 million generated by our iGaming business, SuperNation. In Q1, we again executed on our key operating priority of driving a high conversion of revenue to profit and cash flow, as cash flow from operations were $41.1 million, up more than $5 million from Q1 2024. This strong conversion of revenue to cash flow is a hallmark for Double Down, and we will continue to focus on it this year, even as we comp against the strong social casino performance we had last year. And we also continue to expect strong cash flow conversion, even as we continue to increase marketing to acquire new players at SuperNation. Despite the decline in revenue from our social casino business, our Flickr Double Down Casino app continues to be the engine for profit and cash flow generation. In Q1, while average EDA use and MAUs were down from last year, we continued to have strong performance in our most important monetization KPIs, including ARPA DAO and payer conversion rate, which both increased compared to Q1 of 2024 and were in line with Q4 2024. And while average monthly revenue per payer was down slightly year-over-year and sequentially, it remains at a level we believe is at or near the top of the industry. The key driver of our strong monetization metrics continues to be our consistent focus on enhancing the entertainment value of Dodon Casino to drive player and payer retention. And we continue to invest in marketing activities focused on the retention of existing players and reactivation of left payers. We also continue to focus on increasing direct-to-consumer revenue in our social casino operations, which further enhances profitability as we offer players different ways to make purchases. In Q1, direct consumer revenue was over 10% of our social casino business as we work to achieve our target for 2025, which is to exceed 15%. Turning to super nations, Q1 revenues of $13.2 million represent the highest quarterly performance of the business since our acquisition in late 2023. and was up over $4 million from the first quarter of 2024. SuperNation continues to see success in both the UK and Sweden, driven by increases in our new player acquisition investments. The success we have had to date with scaling SuperNation confirms our rationale for the acquisition, and we see additional significance opportunity to further scale in existing markets even as we look to expand in other regulated European iGaming markets. Our experience in owning and operating SuperNation over the last 18 months and our success with integrating the operations and more recently driving very healthy results of top line growth makes us increasingly confident that we can leverage our core strengths, financial discipline, and strong balance sheet to further diversify our company into new gaming categories that have highly addressable market opportunities. Along those lines, we continue to engage in discussions regarding potential acquisitions that meet our criteria for expanding our operations into new markets while further diversifying our revenue and cash flow sources to create new value for shareholders. Regarding our internal game development efforts, after extensive testing, we have decided to not move forward with a commercial launch of a new match-3 style game. Given our mantra of focusing on ensuring we can deliver strong player engagement and monetization to ensure we drive cash flow generation. We will be very disappointed around the launch of new games in new categories and will do so only when our extensive testing provides the evidence that a new game fits our broader business priorities. We continue to develop new game concepts and look forward to evaluating them in trials over the next several months. Now, I will turn it over to our CFO, Joe Sigrist, to walk us through our financial support, providing my closing remarks. Joe?