Q4 2021 DoubleDown Interactive Co Ltd Earnings Call

February 8, 2022

[music].

Speaker 1: you

Okay.

Speaker 2: Good afternoon and welcome to Double Down Interactive Earnings Conference call for the fourth quarter and full year 2021 financial results ended December 31 2021. My name is Laveyana will be your operator.

Good afternoon, and welcome to double down Interactive earnings conference call for the fourth quarter and full year 2021 financial results ended December 31 2021.

My name is Livia and I will be your operator this afternoon.

Speaker 2: Before this call, DoubleDown issues financial results for the fourth quarter and full year 2021 in a press release, a copy of which has been furnished in a report form 6K filed with the SEC and is available in the investor relations section of the company's website at www.doubledowninteractive.com. You can find a link to the investor relations section at the top of the home page.

Before this call doubled on issued financial results for the fourth quarter and full year 2021 in the press release.

Copy of which has been furnished in our report form 6K filed with the SEC and is available in Investor Relations section of the company's website at Ww dot double down interact with dotcom.

You can find a link to the Investor Relations section at the top of the homepage.

Speaker 2: Joining us on today's call are Double Down CEO , Mr. In-Co Kim, and CFO , Mr. Joe Sigris. Following their remarks, we will open the call for questions.

Joining us on today's call are <unk> CEO , Mr <unk>, Kim and CFO , Mr. Jos Secrets.

Following their remarks, we will open the call for questions.

Speaker 2: Before we begin, Mr. Graham, the company outside investor relations advisor, will make a brief introductory statement. Mr. Graham?

Before we begin Mr. Grant the company outside Investor Relations adviser will make a brief introductory statement Mr. Greg.

Thank you before.

Speaker 3: Thank you. 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.

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 27, a of the Securities Act of $19 33, as amended and section 20 <unk> of the Securities Exchange Act of 934 as amended and we hereby claim the protection of the Safe Harbor provisions of the private securities.

<unk> and reform Act of 1095.

Speaker 3: for looking statements or 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.

Forward looking statements or statements about future events and include expectations and projections not president of 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.

Speaker 3: forward-looking statements include and are not limited to those regarding our future plans, mergers and acquisitions strategy, strategic and financial objectives, expected performance and financial outlook.

Forward looking statements include but are not limited to those regarding our future plans mergers and acquisition strategy strategic and financial objectives expected performance and financial outlook.

Speaker 3: Forward-looking statements are subject to numerous risks and uncertainties that could cause actual results to differ materially and adversely from what we expect. Therefore, you should exercise caution in interpreting and relying on them. We refer you to Double Dams annual report on Form 20F and other SEC filings for more detailed discussion of the risks that could impact future operating results and financial conditions.

Forward looking statements are subject to numerous risks and uncertainties that could cause actual results to differ materially and adversely from what we expect therefore, you should exercise caution in interpreting and relying on them. We refer you to double Dan's annual report on form 20-F, and other SEC filings for more detailed discussion of the risks that could impact future operating results and financial condition. These forward looking.

Speaker 3: These four-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 four-looking statements, whether as a result of new information, future events or otherwise, except it's required by law.

Rents 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.

Speaker 3: During the call management, we'll discuss non-gat measures, which are believed to be useful in evaluating the company's operating performance. These measures should not be considered superior to you in isolation or as a substitute for the financial results prepared in accordance with Gap.

During the call management will discuss non-GAAP measures, which are believed to be useful in evaluating the company's operating performance. These measures should not be considered superior to an 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 with the SEC prior to this.

Speaker 3: A full reconciliation of these measures to the most directly comparable gap measure is available in the earnings release and on our Form 6K files with the SEC prior to this call.

Speaker 3: I would like to remind everyone that this call is being recorded and will be made available for replay. The link available in the Investor Relations section of Devil Dance website.

I would like to remind everyone that this call is being recorded and will be made available for replay via a link available in the Investor Relations section of double bass website now I would like to turn the call over to double down CEO Mr. Kim.

Speaker 3: Now I would like to turn the call over to double down CEO Mr. Inkookin.

Thank you Jeff.

Speaker 4: Thank you, Jeff. Good afternoon, everyone. Thank you for joining us on the on-and-call for our Q4 and Q4 year 2021 results.

And then everyone. Thank you for joining us on the <unk> or our Q4 and full year 2021 result.

Speaker 4: In the first quarter of 2021, we continue to execute on our strategy to leverage our leadership in the Sushik Sinozama through our flagship double down Sinozama and expand through the run shop gaming app adjacent to Sushik Sinozama.

The first quarter of 2021, we continue to.

On our strategy.

Leverage our leadership in the social casino XOMA.

Our collective double down casino and if passed through the run shelf gaming app adjacent to <unk>.

<unk>.

Speaker 4: Q4 revenue was down slightly from the Q3 2021 result consistent with our understanding of the performance of the overall social casino gaming industry.

Q4 revenue was down slightly from the Q3 2021 results.

With our understanding of the performance of the overall with social casino gaming industry too.

Speaker 4: To maximize the ongoing opportunity in social casino games, we plan to continue to release exciting new slot games within the casino every one to two weeks, as well as to integrate new meta features focused on further improving our industry rating monetization metrics.

To maximize the ongoing opportunity in social casino game.

To continue to be exciting new slot games within some of them.

Every one to two weeks as all of that to integrate you matter features focused on further improving our industry leading monetization metrics.

We are finished.

Speaker 4: A successful 2021 by going revenue to a record of over $363 billion, which represents 33% compared to 2019 results.

SaaS little tiny tiny one by growing revenue to a record <unk> $363 million.

Present, sorry, 3% compares.

Compared to 2019 results.

Speaker 4: Adjusted EBITDA at approximately $120 million, remains relatively stable compared to 2020, and represents both of 18% compared to our 2019 results.

Adjusted EBITDA at approximately $120 million.

Relatively stable compared to any training and represent quote.

<unk> percent compared to our 2019 results.

Speaker 4: I highlight 2019 since 2020 represents a difficult comparable period for this year, given the worldwide state-at-home measures that significantly benefited our business, especially at the onset of the COVID-19 pandemic.

I highlight 2019 tiny tiny represent.

Difficult comparable period or this year, even the worldwide at home measures.

Significantly benefited our business is partially at the onset of the COVID-19 pandemic.

Speaker 4: The fact that our 2021 results were materialized better than our 2019 results demonstrates the value of our platform and importance.

The fact that our tiny tiny one to adult cereals.

She really lower than our 2019 results.

Among the strike the value of our platform and in proteins.

Speaker 4: of the ongoing player engagement with our game.

The ongoing player engagement in our games.

Speaker 4: Throughout 2021 and inclusive of the first quarter, we continued our long stream of cashflow positive quarters with $20.4 million in that operating cashflow for Q4 and $96.1 million for the pool.

Throughout 2021 and inclusive of the fourth quarter, we continued our long stream of cash flow positive harder.

And Kip point $4 million.

In that operating cash flow for Q4, and $96 1 billion for the full year.

Speaker 4: As a result, we ended the first quarter with a cash balance of $242.1 billion, giving us a strong financial.

As a result, we ended the fourth quarter with a cash balance of $242 $1 billion, giving us a strong financial position importantly, we believe our business model continued to generate positive free cash flow each quarter.

Speaker 4: Importantly we believe our business model will continue to generate positive free cash flow each part

Speaker 4: Now I will turn it over to our CFO , Joe Siegfried to walk you through our adventures before providing by closing remarks. Joe, thank you, I.K.

Now I'll hand, it over to our CFO dose Sigrid to walk you through our financial profile.

Providing by closing remark.

No.

Thank you <unk> and good afternoon, everyone.

Speaker 3: Our revenues for the fourth quarter of 2021 decreased 5% to $86.3 million from the prior year period.

Our revenues for the fourth quarter of 2021 decreased 5% to $86 $3 million from the prior year period.

Speaker 3: Q4 2020 benefited from the widespread stay at home COVID prevention initiatives in place at that time, which have significantly abated since then.

Q4, 2020 benefited from the widespread stay at home Covid prevention initiatives in place at that time, which have significantly abated. Since then.

Speaker 3: For the full year of 2021, revenue increased 1.4% to a record $363.2 million.

For the full year of 2021 revenue increased one 4% to a record $363 2 million.

Speaker 3: We continue to be encouraged with key monetization metrics that improve from the comparable quarter last year and for the full year 2021 versus the full year 2020.

We continue to be encouraged with key monetization metrics that improved from the comparable quarter last year and for the full year 2021 versus the full year 2020.

Speaker 3: Specifically, average revenue per daily active user or ARP dial increased from 88 cents in Q4 2020 to 96 cents in Q4 2021.

Specifically <unk>.

Average revenue per daily active user or DAU increased from 88 <unk> in Q4 2020 to 96.

In Q4 2021.

Speaker 5: and ARP Dow for the full year 2021 increased to 97 cents compared to 83 cents for the full year 2020.

<unk> for the full year 2021 increased to 97.

Compared to 83.

For the full year 2020.

Speaker 5: Secondly, average monthly revenue prepare increased from $205 in Q4 2020 to $216 in Q4 2021.

Secondly, average monthly revenue per payer increased from $205 in Q4 2020 to $216 in Q4 202021.

Speaker 5: and average monthly revenue prepare for the full year 2021 increased to $218 compared to $191 for the full year 2020.

And average monthly revenue per payer for the full year 2021 increased to $218 compared to $191 for the full year 2020.

Lastly, payer conversion, which is the percentage of players who pay double down was unchanged at five 5% in Q4 2021 compared to the prior year period.

Speaker 5: Lastly, pair conversion, which is the percentage of players who pay double bound was unchanged at 5.5% in Q4 2021 compared to the prior year period.

Speaker 5: For the full year 2021, pair conversion increased to 5.7% from 5.3% in 2020. Due to

For the full year 2021 payer conversion increased to five 7% from five 3% in 2020.

Speaker 5: In addition, the initial engagement of players from Undead World Hero Survival, our first non-social casino gaming app launched at the end of September 2021, positively impact our sequential quarterly player engagement metrics, as Q4 total monthly active users or MAU increased compared to Q3 2021. In addition, the first non-social casino gaming app launched at the end of September 2021, positively impact our

In addition, the initial engagement of players from Undid World Hero survival, our first non social casino game gaming App launched at the end of September 2021 positively impacts our sequential quarterly player engagement metrics as Q4 total month.

Company monthly active users or MAA, you increased compared to Q3 2021.

Speaker 5: Total operating expenses for the fourth quarter of 2021 decreased 8.8% to $62.7 million.

Total operating expenses for the fourth quarter of 2021 decreased eight 8% to $62 $7 million.

Speaker 5: from the prior year period. The decrease was primarily due to a combination of lower cost of revenues, lower G&A and lower depreciation and amortization.

From the prior year period.

The decrease was primarily due to a combination of lower cost of revenues, lower G&A and lower depreciation and amortization expense.

Speaker 5: For the full year 2021, total operating expenses decreased 1.9% to 264.5 million dollars from the prior year period.

For the full year 2021, total operating expenses decreased one 9% to $264 $5 million.

The prior year period.

Speaker 5: The decrease was primarily due to lower depreciation and amortization expenses from the prior.

The decrease was primarily due to lower depreciation and amortization expenses from the prior year.

Speaker 5: Of note, sales and marketing expenses in Q4 2021 were $21.9 million, representing a 25% increase compared to the fourth quarter of 2020. This increase was primarily due to the activity to acquire initial new players for undead world hero survival.

Of note sales and marketing expenses in Q4, 2021 were $21 9 million.

Representing a 25% increase compared to the fourth quarter of 2020.

This increase was primarily due to the activity to acquire initial new players for undead World Hero survival.

Speaker 5: Going forward, we expect to continue to incur advertising expenses both to acquire and retain players for Double Down Casino and for the ramp up of our new app and issue.

Going forward, we expect to continue to incur advertising expenses, both to acquire and retain players for double down casino and for the ramp up of our new App initiatives.

Speaker 5: It is also worth noting that depreciation and amortization expenses in 2.4 2021 or $2.2 million compared to $7.6 million in 2.4 2021.

It is also worth noting that depreciation and amortization expenses in Q4, 2021, or $2 $2 million compared to $7 $6 million in Q4, 2021 and <unk>.

Speaker 5: and were 17.9 million dollars for the full year 2021 compared to 31.6 million dollars for the full year 2020.

$17 $9 million for the full year 2021, compared to $31 6 million for the full year 2020.

Speaker 5: The decreases were due to the completed amortization of certain identifiable and tangible assets for which we use purchase price allocation at the time of the 2017 double down interactive acquisition.

The decreases were due to the completed amortization of certain identifiable intangible assets or what should we use purchase price allocation at the time of the 2017 double down interactive acquisition.

Speaker 5: Net income for the fourth quarter of 2021 increased to $17.5 million or $7.8 per diluted share compared to $15.5 million or $6.99 per diluted share in the fourth quarter of 2020.

Net income for the fourth quarter of 2021 increased to $17 $5 million or $7 eight per diluted share compared to $15 $5 million or $6 99 per diluted share in the fourth quarter of 2020.

Speaker 5: For the full year of 2021, net income increased to $78.2 million, or $33.96 per diluted share compared to net income of $53.6 million, or $26.20 per diluted share in the full year of $0.2 million.

For the full year of 2021, net income increased to $78 $2 million or <unk> $33 96.

Our diluted share compared to net income of $53 $6 million or $26 20.

Per diluted share in the full year of 2020.

Speaker 5: Adjusted EBITDA for the fourth quarter of 2021 was $25.8 million compared to $29.9 million in the prior year quarter.

Adjusted EBITDA for the fourth quarter of 2021.

Was $25 8 million compared to $29 $9 million in the prior year quarter.

Speaker 5: Adjusted EBITDA margin of 29.9% represents a reduction of approximately 296 basis points compared to Q420.

Adjusted EBITDA margin of 29, 9% represents a reduction of approximately 296 basis points compared to Q4 2020.

Speaker 5: The quarterly year over year decline, adjusted EBITDA and adjusted EBITDA margin is primarily attributable to lower revenue and higher sales and marketing costs as I previously defined.

The quarterly year over year decline in adjusted EBITDA and adjusted EBITDA margin is primarily attributable to lower revenue and higher sales and marketing costs as I previously discussed.

For the full year of 2021, adjusted EBITDA remained relatively stable compared to 2020 at approximately $120 million.

Speaker 5: For the full year of 2021, adjusted EBITDA remained relatively stable compared to 2020 at approximately $120 million.

Speaker 5: 2021 full year of just the but a margin was 33.1% slightly below last year's result of 33 point

2021 full year adjusted EBITDA margin was 33, 1% slightly below last year's result of 33, 6%.

Speaker 5: Adjust an EBITDA and adjust an EBITDA margin are non- GAAP measures , which we believe are useful in evaluating our operating performance. A full reconciliation of these measures to the most directly comparable GAP measure is available in the earnings.

Adjusted EBITDA and adjusted EBITDA margin are non-GAAP measures, which we believe are useful in evaluating our operating performance a.

A full reconciliation of these measures to the most directly comparable GAAP measure is available in the earnings release.

Cash flow from operations for the fourth quarter of 2021 was $24 million compared to $36 1 million in the prior year period, we did not incur any material capital expenditures during the quarter.

Speaker 5: Cash flow from operations for the fourth quarter of 2021 was $20.4 million compared to $36.1 million in the prior year period. We did not incur any material capital expenditures during the court.

Speaker 5: For the full year, cash flow from operations was $96.1 million compared to cash flow from operations of $99.9 million during the 12 month of 2020.

For the full year cash flow from operations was $96 1 million compared to cash flow from operations of $99 $9 million during the 12 months of 2020.

Speaker 5: And finally, turning to our balance sheet, at the end of the fourth quarter, we had $242.1 million of cash and cash equivalent compared to $223.1 million at the end of Q3 2021.

And finally, turning to our balance sheet at the end of the fourth quarter, we had $242 $1 million of cash and cash equivalents compared to 200.

$223 $1 million at the end of Q3 2021 the.

Speaker 5: The improvement in our net cash position would do to the aforementioned net cash flow from operations as we continue to remain in a state of positive cash flow generation.

The improvement in our net cash position was due to the aforementioned net cash flow from operations as we continue to remain in a state of positive cash flow generation.

Speaker 5: That completes my financial summary. Now I will turn the call back over to IK for closing remarks. Thank you very much.

That completes my financial summary, now I will turn the call back over to <unk> for closing remarks.

Thank you Joe.

Speaker 4: As some of you know, Double Down has defined a three-point growth strategy. Let me briefly comment on each element. Firstly, we will continue to maximize our leadership position in the social-cleaned gaming in the...

As some of you know double down has declined.

<unk>, let me briefly comment on each element monthly we will continue to maximize our resource position in the social casino gaming industry. This is primarily through our flagship game app doubled down less.

Speaker 4: This is primarily through our flagship game app, DoubleDunk, you know, leveraging our passionate current base of players while acquiring youth players through the frequent and consistent launch of youth slot games and the introduction of exciting youth meta.

Leveraging our passionate current base of players while acquiring new players through the frequent and consistent launch up your slot game and the introduction of exciting new met off peak periods.

Speaker 4: Secondly, we plan to continue to expand into adjacent mobile gaming segments, starting with large-quartered lunch shops on that work your survival.

Secondly, we plan to continue to expand into adjacent mobile gaming segment, starting with last quarter's launch helped on that work.

<unk>.

Speaker 4: We were encouraged by the player engagement that Rix seen immediately after on that word worldwide lunch in late September .

We were encouraged by the player engagement metrics immediately after on that ward worldwide launch in late September .

Speaker 4: We expect to continue to optimize our monetization threat.

Expect to continue to optimize our monetization strategy.

Speaker 4: and the future set of the game as we chart past towards more material monetization while building a critical mass of players for wrong-town value creation. In parallel, we are preparing for the leads of our next non-social scene web, meaning in space.

And the future of the game as we chart a path towards more material monetization, while building up critical mass players or.

Long term value creation in parallel we are preparing for the lease of our own.

Non social casino app spinning in space.

Speaker 4: which we currently expect will be available to players in the summer of 2020.

We currently expect will be available to players in the summer of 'twenty two.

Speaker 4: We believe that we are in an excellent position to capital lies in the last element of our goals facility, MNA due to our strong balance, first served by late September's IPO, and our track records of post-merger exhibitions.

We believe that we are in excellent position to capital slide.

Element of our breath of the M&A due to our strong balance sheet.

Let's start by late September IPO, and our track record.

Merger execution.

We continue to evaluate opportunities to accelerate our organic growth potential and have been encouraged by the risks and broader M&A activity within the gaming industry.

Speaker 4: We continue to evaluate opportunities to accelerate our organic growth, potential and have been encouraged by the recent broader MNA activity within the gaming industry. We are now happy to...

We are now happy to take your questions.

Operator.

Speaker 2: Thank you sir. Ladies and gentlemen, if you'd like to ask a question at this time, you will need to press the start and the one key on your touchdown cell phone to enjoy your question and press the pound key. We stand by, will we compile the KNA Raster?

Thank you, Sir ladies and gentlemen, if you like to ask a question at this time you will need to press. The Star then the one key on your Touchtone telephone to withdraw your question press the pound key.

Standby, while we compile the Q&A roster.

Speaker 2: Now first question will come from David Bain would be Riley, Yelena Selpin.

Our first question will come from David Bain with B Riley. Your line is now open.

Speaker 6: Great, thanks. I can't Joe, once again, nice, cash flow conversion. I guess my first question would be if you could buy for KD, core double down, casino MAUs and DAUs from from undead world for the quarter. Because do you have any metrics we can chew on?

Great. Thanks, Joe once again nice cash flow conversion I guess my first question would be if you could bifurcate the core double down casino MAA and NDA is from from.

From one dead World for the quarter do you have any metrics, we can chew on.

Yes, Dave.

Thanks.

Speaker 5: The, as I said in my comments, total company MAUs did increase. And obviously, if you've been following us in the industry, for the...

As I said in my comments total company EMEA used did increase and obviously.

If you've been following us in the industry.

That's for.

For the first time in a while.

Speaker 5: I think why can't break it out separately. Certainly MAUs and VAUs are still...

I think while I can't break it out separately.

Certainly <unk>.

<unk>.

Our still.

Speaker 5: falling somewhat in the social casino business. And you know, are being augmented or offset, if you will, by what we've seen with Undead World, which, you know, if you think back to what we described earlier, and during the IPO process, it's exactly, you know, the strad part of the strategy, or at least the hopeful outcome of our strategy to expand to adjacent areas.

Following somewhat in the social casino business.

And are being augmented or offset if you will by what we've seen with undead world, which.

You think back to what we described earlier.

And during the IPO process.

<unk> the <unk>.

Part of the strategy or at least the hopeful outcome of our strategy to expand into adjacent areas, which is too.

Speaker 5: which is to grow our overall player base by moving into social casino adjacent.

So our overall player base.

Moving into social casino.

Speaker 6: right okay uh... okay and and you know we've been hearing a lot about metabute metaburs or blockchain and and mobile games are these opportunities that that dd i is working on and and what could that look like from timing

Right Okay.

Okay, and we've been hearing a lot about given the amount of U verse or blockchain and mobile games are these opportunities that DDI is working on it and what could that look like from just timing or just overall perspective.

Speaker 5: Yeah, thank you Dave. Yeah, there's no doubt that the metaverse and blockchain

Yes, I think that yes, there is no doubt that.

The meta versus in blockchain and NFC.

Speaker 5: NFP, you know, all those terms have been used a lot in gaming more recently. And certainly we think it's a very exciting potential for the future of gaming.

All those terms have been used a lot in gaming.

More recently in and.

Certainly we think it's a very exciting pencil or.

The future of gaming and.

Speaker 5: We're very interested in leveraging, especially in Korea where the gaming industry...

We're very interested in.

Leveraging especially in Korea, where the gaming industry.

Speaker 5: is definitely truly the forefront of some of the metaverse and FD activity and gaming, frankly, there that we can leverage the expertise available in Korea. So with that, maybe I'll ask the IK to talk a little bit about what our strategy is.

Is is definitely really the forefront of some of the net averse NFC activity in gaming frankly, there that we can leverage the expertise available in.

In Korea, so with that maybe I'll ask.

Talk a little bit about what are what our strategy is at this point, yes. Thanks. Thanks, Dave.

Speaker 4: Yeah, thank you so, and thank you, Dave. We believe it will be one of our future opportunities.

We believe it will be one of our future.

Speaker 4: Technically, I believe our internal we are ready to adapt our skills the crystal currency and divide earlier. And now we are seeking how to leverage it with our own content utilizing outside opportunities like M&A and love racing.

Technically I believe our tunnel.

Levy ready.

Our.

The currency.

And now we are seeking alpha elaborate yes.

Our own content utilizing outside.

Like M&A and elaborate.

So hopefully it helps.

Speaker 5: Yeah, I guess additional comment I'll make. And Dave, as you know, one of the things that we are very frank and cautious about is creating a thing of value in social context, no relative to gambling statutes, et cetera. So we also are looking a need to investigate and look at the whole area through that lens as well.

Yes, I guess.

Additional comment I'll make.

Dave as you know one of the things that we are very.

Frankly cautious about is.

Creating a thing of value.

And social.

Context relative to.

Gambling statute et cetera. So.

We also are looking need to investigate and look at.

This whole area through that lens as well.

Speaker 6: understood okay and if i go one over um... you know we notice that the w the parent offered it's first of our dividends since being public and understanding growth is still the priority for for dd i

Understood. Okay, and then if I can go one over.

We noticed the W. The parent offered its first ever dividend since being public in understanding growth is still the priority for DDI.

Speaker 6: It's the company open to dividends down the road. If you don't find a suitable or large enough target for a diversification at the right price, and then just on that end, just any sort of commentary on the M&A market, kind of what you're looking at, what your discussions are sort of bringing in terms.

Is the company open to dividends down the road if you if you don't find.

Suitable or large enough target for diversification at the right price and then just on that and just any sort of commentary on the M&A market kind of what your what you are looking at what your discussions are sort of.

Bringing in terms of.

Speaker 6: topics or ideas or anything around that would

Topics or ideas or anything around that would be helpful.

Speaker 5: Well, let me start with on the dividend side, you're right, W is actually paid a dividend annually ever since it went public several years ago, which is...

Sure.

Well, let me start on the dividend side Youre right.

<unk> is actually paid a dividend annually ever since it went public several years ago.

Which is.

Speaker 5: It's my understanding fairly normal for companies that are listed in Korea. Relatives to double down certainly that ultimately one option for us, given our cash balance.

It's my understanding fairly normal for our company.

Companies that are listed in Korea.

Relative to double down.

That ultimately one option for us.

Given our cash balance.

Speaker 5: But as we've said, especially as we continue to look at M&A opportunities, we know that having a war chest, if you will, at least for a while, as we, you know,

But.

As we've said.

Especially as we continue to look at M&A opportunities.

We know that having a.

War chest, if you will at least for a while as we know.

Speaker 5: case some of these more interesting MNA opportunities to the ground is important for us. And so...

Hey, some of these.

More interesting M&A opportunities to the ground is important for us.

And so at least for now.

Speaker 5: For now, that's really been the focus of our, if you will, balance sheet activities. And we...

That's really.

The focus of our if you will balance sheet activity.

And we.

Speaker 5: you know, we'll look at other options, you know, down the road. You know, relative to M&A progress, obviously I can't speak to anything very specific, but I will say that we are fully engaged in looking at opportunities.

We will look at other options.

Download counts down the road relative to M&A progress, obviously I can't speak to anything.

Very specific but I will say that we are.

Our.

Fully engaged in.

And looking at opportunities.

Speaker 5: And there's been in the broader mobile gaming market, quite a bit of M&A activity on the one hand. On the other hand, I think to be honest,

And.

Theres been.

In a broader mobile gaming market quite a bit of a M&A activity on the one hand.

On the other hand, I think to be honest.

Speaker 5: evaluation expect day and this is you know good for an aqua potential acquire evaluation expectations have Started to come a little more realistic and so you know we were interested in you know sting how these will play out Okay, great

Valuation expectation. This is good for a potential acquirer valuation expectations have.

Starting to become a little more realistic and so.

We're interested in seeing how these will play out.

Okay, great. Thanks, Okay. Thanks, Joe.

Thanks, Dave.

Speaker 2: Our next question coming from Lina, grows to you with Nordland Security, please proceed.

Our next question coming from the line of Greg <unk> with Northland Securities. Please proceed.

Speaker 7: Hi, good afternoon, I'm Kay and Joe. Thanks for taking the questions, appreciate it. You know, what was wondering, you know, you've had a couple of quarters now with tough year over year headwinds related to the state home orders. You know, any thoughts on, you know, when you expect to getting back to year over year revenue growth? And, you know, if we think about the resurgence of COVID cases in January year, you know, would that positively impact playtime in Q1?

Hi, Good afternoon, Hey, Joe Thanks for taking the questions I appreciate it.

Was wondering you've had a couple of quarters now with tough year over year headwinds related to the stay at home orders.

Any thoughts on when you expect to getting back to year over year revenue growth.

If we think about the resurgence of Covid cases in January here.

Would that positively impact play time in Q1.

Speaker 5: Yeah, there's no question that, you know, the comparable, as we mentioned earlier, on the call to 2020, you know, have been somewhat difficult. That being said, the comparison to 2019 still shows a significant bump in revenue, and we...

Yes, there is no question that.

The Comparables as we mentioned earlier on the call to 2000.

20.

Have been somewhat difficult that being said.

The comparison to 2019 still shows a significant bump in revenue and we.

Sure.

Speaker 5: you know, are continuing to look to grow from what is a much higher base kind of steady state base of the business than we were, you know, two years or less than two years ago. You know, if I compare us to what I'm hearing and what we're reading about the social casino industry and what it's

Are continuing to look to grow from what is a much higher base kind of steady state base of the business than we were.

Two years or less than two years ago.

If I.

Compare us to what what I'm hearing and what we're reading about the social casino industry and what it how it performed at the at the end of 2021.

Speaker 5: how it performed at the end of 2021, as a whole, I think, we're all as an industry continuing to do things, to create that growth, given the bump that we all had over the last 18 to 24 months. I mean, certainly the things that I came mentioned to raise the...

As a whole I think.

We're all as an industry continuing to do things.

Create that growth given the bump that we all had over the last 18 to 24 months I mean, certainly the things that I can mentioned around.

Speaker 5: you know, game improvements within double down clock game improvements within double down casino and meta features

Game improvements within double down slot game improvements within double down casino.

And meta features.

Speaker 5: our marketing and marketing activities and continued focus on improving our row ads and using our advertising partners positively to acquire good paying new users. All that is toward growth within social casino. And then.

Our marketing and marketing activities and continued focus on.

ROE at improving our ROE as and using our advertising partners positively to acquire good paying new users all of that.

Is toward growth within social casino and then as we've discussed on top of that the expansion into social casino Adjacencies.

Speaker 5: As we've discussed on top of that, the expansion into social casino adjacencies is extremely important for us. Very early days, obviously, with just the first few months of the undead world launch, and we have other games in flight in our development teams. But that is an augment, whatever growth that we will ultimately see with social casino.

Is extremely important for us.

Very early days, obviously with just the first few months of the undead World launch and we have other games in flight.

In our development teams, but.

That is going to augment whatever growth that we will ultimately see with social casino.

Great very helpful Jo Anne.

Speaker 7: Great, very helpful Joe. And I know you already spoke on kind of your M&A and a dividend thoughts, so you know, no need to repeat yourself, but one of the follow up, you know, in terms of the balance sheet, being strengthened, cash generation and conversions strong this quarter, you know, just wondering if you can maybe from a high level discuss upcoming capital deployment or uses in terms of your priority.

I know you already spoke on kind of your M&A and dividend thoughts so no need to repeat yourself, but I wanted to follow up.

In terms of the balance sheet being strengthened cash generation and conversion strong this quarter.

Just wondering if you could maybe from a high level discuss upcoming capital deployment or uses in terms of your priorities.

Speaker 5: Yeah, well, again, I think, you know, M&A for us is the top priority.

Yes, well again I think.

M&A for us is the top priority.

Actually let me step back and say the top priority is maximizing shareholder value.

Speaker 5: Actually, let me step back and say the top priority is maximizing shareholder value. And that is first and foremost what we're about. And we see our strong balance sheet as a tool to be used to maximize shareholder value. For us,

And.

That is first and foremost what we're about.

And we see our strong balance sheet as a tool to be used to maximize shareholder value.

For us.

Speaker 5: the main focus or the main priority to use with that tool is towards growth. And that growth obviously is continuing to do things that we've been talking about from an organic standpoint, but also the potential through M&A for inorganic growth as we optimize the use of our cash balance. And so that's I think the best way to answer your if your health care shouldbigg.net's true.

The main focus or the main priority.

To use with that tool.

Is towards growth.

And that growth, obviously is continuing to do the things that we've been talking about from an organic standpoint.

But also the.

Potential through M&A for inorganic.

Growth.

As we optimize the use of our cash balance.

And so that.

I think the best way to answer your question there Greg.

Speaker 7: Yes, appreciate that. That's helpful. And last one from me, just really, I think that one dead world. Now that we have a handful of months since it's launched, do you just want to talk, I guess, a little bit more about its performance, whether it's kind of lived up to your early expectations. And then you have a sense of maybe what that game can contribute in 2022 or any sense of run rate, or really any metrics. You do.

Yes, I appreciate that Thats helpful.

Last one from me just related on that world.

Now that we have a handful of months since its launch.

Just wondering if you could talk I guess, a little bit more about its performance, whether it's kind of lived up to your early expectations and then do you have a sense of maybe what that game can contribute in 2022 or any sense of run rate or really any metrics you would be willing to share.

Speaker 5: Yeah, so on did world, you know, we've had three, four months now in worldwide launch. And I'd say, you know, we're very encouraged by player engagement. And, you know, that...

Yeah. So on that World, we've had three four months now.

Worldwide launch.

And I'd say, we're very encouraged by.

Player engagement.

And that.

Speaker 5: It means the reaction to how players are engaging with the game. And certainly from a metric standpoint, how players are retaining, especially new players. And D7 numbers are especially strong.

It means the reaction to.

Two how players are engaging with the game.

And certainly from a metric standpoint, how players are retaining.

Especially new players.

<unk> D seven numbers.

Are especially strong.

Speaker 5: where we continue to be focused is monetization. So taking that excitement interest, if you will, in the game and converting that into not only the first time payment activity, but ongoing payment. And so where we really need to focus based on what we've seen so far is pay or repay.

We continue to be focused is monetization so taking that.

Excitement interest if you will in the game and converting that in.

Into not only the first time.

Payment activity, but ongoing payment and so where are we where we really need to focus based on what we've seen so far is payer retention.

Speaker 5: And so one of the important things that we're doing now is continued development in the game from an economy standpoint, from a feature standpoint.

And so.

One of the important things that we're doing now is.

Continued development.

And in the game from an economy standpoint from a feature standpoint, so that we can improve.

Speaker 5: so that we can improve the monetization metrics and especially the pair retention metrics. And so over the next few months, you're gonna see more features released of that sort and improvements there that we expect to aid us in the monetization of the game.

The monetization metrics and especially the payer retention metrics and so over the next few.

A few months youre going to see more and more features release of that sort and improvements there.

<unk>.

Expect to.

To aid us in the monetization of the game.

Got it thanks for the color and thanks for taking the questions.

Thanks, Greg.

And as a reminder, ladies and gentlemen to ask a question. Please press star one.

Speaker 2: And as a minor orphan, Jermin, to ask the question, please press star one.

Speaker 2: Our next question coming from the lineup. Erin Lee with McCory. Your lines are now open. Please good.

Our next question coming from the lineup Aaron Lee with Macquarie. Your line is now open. Please proceed.

Speaker 7: Hey, good afternoon. Thanks for taking my question. Appreciate all your comments on marketing and M&A. So just a quick one for me.

Hey, good afternoon, Thanks for taking my question.

Great all your comments on marketing and M&A.

So just a quick one for me.

Speaker 7: Just more broadly speaking, when you think about your growth in 2022 and the building blocks for growth, where do you see the biggest opportunity?

Just more broadly speaking when you think about your growth in 2022, and the building blocks for growth where do you see the biggest opportunities do you expect most of your growth to come from.

Speaker 8: Do you expect most of your growth to come from converting more users or growing ARP DAW, or how do you think about it?

Putting more users or growing <unk>, how do you think about that.

Okay.

Speaker 5: Yeah, well, if you look at all the answer in two pieces, right? Obviously on the social casino side, we are continuing to see improvements in revenue prepare.

Yeah, well if you look at.

I'll answer in two pieces right, obviously on the social casino side.

We are continuing to see improvements in <unk>.

Revenue per payer.

Speaker 5: So the payers that we have continue to be very passionately engaged with Double Down Casino specifically and based on the activities that we are giving them like new games, new slot games, et cetera, we're seeing their propensity to pay continued increase. And we certainly see that being a big contributor to 2022 growth.

So the payers that we have.

To be very passionately engaged with with <unk>.

Double down casino, specifically and.

Based on the activities that we are giving them like new games, new slot games et cetera.

We're seeing their propensity to pay continued to increase and we certainly see that being a big contributor to 2022 growth.

Speaker 5: We also are adding new players every day, right? So New User Acquisition is extremely important. It's the biggest single area of discretionary spend in the company. And so we continue to...

We also are adding new players every day right. So new user acquisition is extremely important it's the biggest single area of discretionary spend in the company.

So we continue to.

Speaker 5: We think do a very good job managing our advertising partners, optimizing the row as associated with that investment to get new payers into the game and continue to retain them.

We think do a very good job managing our advertising partners optimizing the ROE as associated with our with that investment.

To get new payers into the game and.

We continue to retain them as payers.

Speaker 5: And so, for us, that's really the focus for the social security inside of the business. Obviously, on the new app side, it's the ability for us to grow our player base, first and foremost, as we add new players to like undead world and ultimately spinning in space. And then to get those players to monetize, clearly that's

And so for US that's that's really the focus for for the social casino side of the business, obviously on the new App side.

The ability for us to grow our payer our player base first and foremost as we add new players to like on dead World and ultimately spinning in space and then.

Those players to monetize.

Clearly, that's it's all incremental revenue to us in a sense.

Speaker 5: It's all incremental revenue to us in a sense, since we don't have a base of any non-social casino revenue, prior to the fourth quarter of 2021. So that's obviously another important element of our gross strategy in 2022.

Since we don't have a base of any.

Non casino revenue.

Prior to the fourth quarter of 2021 so.

That's obviously another important element of our of our growth strategy in 2022.

Speaker 8: That's helpful. I'm just a follow-up for me.

Great that's helpful.

The follow up quick follow up for me.

Speaker 8: Any updates on how your user acquisition costs have trended post the IDFHA?

Any update on how your user acquisition costs have trended.

Post the idea of a change.

Speaker 8: In glass quarter you talked about CPI's trending higher in the summer before pulling back in the fall around September , October . So I'm curious, I would be trended since then and into early 2022. Thanks.

Last quarter, you talked about CPI is trending higher in the summer before pulling back in the fall around September October So I'm curious.

It would be trended since then and into early 2022.

Yes so.

Speaker 5: You know, as I think we mentioned last, as you said last time, you know, when IDFA initially was deployed, you know, we certainly saw, well, a couple of phenomena. First of all, there was a big shift towards Android. And in the

As I think we mentioned Latin as you said last time.

<unk> initially.

Was deployed.

We certainly saw a couple of phenomenon. It's first of all there was a big shift towards Android.

And in the <unk>.

Speaker 5: demand, if you will. And so as a result, Android CPI increased significantly and that really occurred through the summer, let's say, into the early fall. Starting in Q4, we saw Android CPI's actually begin to fall and, you know, fast forward to today or to the start of Q1, we see Android CPI's essentially back to where they were a year ago.

Demand, if you will and so as a result of Android CPI has increased significantly.

<unk>.

That really occurred through the summer, let's say into the early fall starting in Q4, we saw Android CPI is actually begin to fall.

<unk>.

Fast forward to today or.

The start of Q1, we see Android CPI is essentially back to where they were a year ago.

Speaker 5: And then relative to iOS, it's really...

And then relative to iOS.

It's really.

Speaker 5: been a volatile environment post IDFA, but if you again fast forward to today, we generally just see the normal volatility that we've experienced in the past around seasonality. So December spikes January fall off, just essentially back to the kind of normal fluctuation.

Been a volatile environment post <unk>, but.

You again fast forward to today we.

Generally just see the normal volatility that we've experienced in the past.

Round seasonality so.

December spikes January falloff.

Just essentially back to the kind of normal fluctuation.

Speaker 8: Okay, got it. Awesome. That's that's really helpful. Thank you very much.

Okay got it awesome.

Really helpful. Thank you very much.

Speaker 2: At this time, this concludes our question and answer session. I would now like to send a call back over to Mississippi.

At this time. This concludes our question and answer session I would now like to turn the call back over to Mr. Chris.

Okay. Operator, thank you so much for monitoring.

Speaker 5: The operator, thank you so much for monitoring this call today. And thank a big thank you to everyone who has joined us today for this call and your interest in double down. And we will continue to keep you updated with further status as we continue to innovate and grow the business. And we hope you have a great rest of your day. Thanks.

Monitoring this call today and thanks.

A big Thank you to everyone, who has joined US today for this call and your interest in double down.

And we will continue to keep you updated with further.

<unk> status as we continued to innovate and grow the business and the.

We hope you have a great rest of your day. Thank you.

Ladies and gentlemen, thank you for joining us today for Dr. <unk> earnings call you may now disconnect.

Speaker 2: Ladies and gentlemen, thank you for joining us today for Double Dance Erning's call. You may now disconnect.

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Speaker 1: The.

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Speaker 2: Good afternoon and welcome to Double Down Interactive earnings conference call for the fourth quarter and full year 2021 financial results ended to 731 2021. My name is Olivia and I will be your operator.

Good afternoon, and welcome to double down Interactive earnings conference call for the fourth quarter and full year 2021 financial results ended December 31st 2021.

Name is livia and I will be your operator this afternoon.

Speaker 2: Before this call, double-down issues financial results for the fourth quarter and full year 2021 in a press release. A copy of which has been furnished in a report formed 6K, filed with the SEC and is available in the Investor Relations section of the company's website at www.doubledowninteractive.com. You can find a link to the Investor Relations section at the top of the homepage.

Before this call doubled honest shows financial results for the fourth quarter and full year 2021 in the press release.

A copy of which has been furnished in our report on form 6K filed with the S. E C and it's available in Investor Relations section of the company's website at Ww dot double down interact with Dot com.

You can find a link to the Investor Relations section at the top of the homepage.

Speaker 2: Joining us on today's call are WCLE with the MCO Kim and CFL Mr. Joe Sigris. Following their remarks, we will open the call for questions.

Joining us on today's call are double stars C. O is the emco, Kim and CFO , Mr. Jos cigarettes. Following their remarks, we will open the call for questions.

Speaker 2: Before we begin, Mr. Cramp, the company outside Investor Relations Advisor, will make a brief introductory statement. Mr. Cramp.

Before we begin Mr. Cramped the company outside Investor Relations adviser will make a brief introductory statement Mr. Greg.

Speaker 3: Thank you. Before management begins, there are 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 Security Act of 1933 as amended in section 21E of the Security Exchange Act of 1934 as amended. And we hereby claim the protection of the safe harbor provisions of the private security's litigation reform act of 1995.

Thank you.

For 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 27, a of the Securities Act of 1933 as amended and section 20 <unk> 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.

<unk> will form active 1995.

Speaker 3: for looking statements include and are not limited to those regarding our future plans, mergers and acquisition strategy, strategic and financial objectives, expected performance and financial outlook.

Speaker 3: Foreign-looking statements are subject to numerous risks and uncertainties that could cause actual results to differ materially and adversely from what we expect. Therefore, you should exercise caution in interpreting and relying on them. We refer you to Double Dan Daniel Report on Form 20F and other SEC filings for more detailed discussion of the risks that could impact future operating results in financial conditions.

Forward looking statements are subject to numerous risks and uncertainties that could cause actual results to differ materially and adversely from what we expect therefore, you should exercise caution in interpreting and relying on them. We refer you to double down to annual report on form 20-F, and other SEC filings for a more detailed discussion of the risks that could impact future operating results and financial condition. These forward looking.

Speaker 3: These four looking statements are made only as of the date of this call. The company does not undertake and expressly declaims any obligation to update or alter the four looking statements, whether as a result of new information, future events or otherwise, except is required by law.

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.

Speaker 3: During the call management, we'll discuss non-GAAP measures, which are believed to be useful in evaluating the company's operating performance. These measures should not be considered superior to you in isolation, or as a substitute for the financial results prepared in accordance with GAAP.

Speaker 3: A full reconciliation of these measures to the most directly comparable gap measure is available in the earnings release and on our form 6K file with the SEC prior to this call.

Golf.

Speaker 3: I would like to remind everyone that this call is being recorded and will be made available for replay via a link available in the Investor Relations section of Devil Dance website.

I'd like to remind everyone that this call is being recorded and will be made available for replay via a link available in the Investor Relations section of double bass website now I would like to turn the call over to double down CEO Mr. Kent.

Speaker 3: Now I'd like to turn the call over to double down CEO , Mr. Inkookim.

Speaker 4: Thank you, Jeff. Good afternoon, everyone. Thank you for joining us on the on-and-call for our Field4 and for Rear 2021 results.

Thank you Jeff.

And then everyone. Thank you for joining us on the unencumbered or our Q4 and full year 2021 rebuilt.

Speaker 4: In the first quarter of 2021, we continue to execute on our strategy to both leverage our leadership in the Sushik Sinozama through our project gift Double Down Sino and expand through the run-shop gaming app adjacent to Sushik Sinoz.

In the first quarter of 2021, we continue to get on our strategy.

Leverage our leadership in the social casino XOMA.

Our collective doubled on casino and <unk>.

Ron shelf gaming app or adjacent to the casino.

Speaker 4: Q4 revenue was down slightly from the Q3 2021 we don't consistent with our understanding of the performance of the overall social casino gaming industry.

Q4 revenue was down slightly from the Q3 2021 result.

With our understanding of the performance of the overall with social casino gaming industry.

Maximize the ongoing opportunity in social casino games, we plan to continue to be exciting use slop gains within some of them.

Every one to two weeks as all of that to integrate new meta features focused on further improving our industry leading monetization metrics.

We are finished.

Speaker 4: A successful 2021 by growing revenue to a record of over $363 billion, which represents 33% compared to 2019 results.

Our successful tiny tiny one by growing revenue to a record.

$363 million, which represents 33%.

Compared to 2019 results.

Speaker 4: Adjusted EBITDA at approximately $120 million, remains relatively stable compared to 2020, and represents both of 18% compared to our 2019 results.

Adjusted EBITDA at approximately $120 million.

Relatively stable compared to tiny training and represent quote.

10% compared to our 2019 results.

Speaker 4: I highlight 2019 since 2020 represents a difficult comparable period for this year, given the worldwide state-of-home measures that significantly benefited our business, especially at the onset of the COVID-19 pandemic.

I highlighted 2019, 2020 represent a difficult comparable period or this year, even though worldwide stay at home measures that significantly benefited our business is partially at the onset of the COVID-19 pandemic.

Speaker 4: The fact that our 2021 results were materialized better than our 2019 results demonstrates the value of our platform and importance.

The fact that our tiny tiny laundry adult where but generally lower than our 2019 results.

<unk> strike the value of our platform and in proteins.

Speaker 4: of the ongoing player engagement with our game.

The ongoing player engagement in our games.

Speaker 4: Throughout 2021 and inclusive of the first quarter, we continued our long stream of cashflow positive orders with $20.4 million in that operating cashflow for two four and $96.1 million for the pool.

Throughout 2021 and inclusive of the fourth quarter. We continued our long stream of cash flow positive harvest great Panther.

Point $4 million.

And that operating cash flow for Q4, and $96 1 billion for the full year.

Speaker 4: As a result, we ended the first quarter with a cash balance of $242.1 billion, giving us a strong financial.

As a result, we ended the fourth quarter with a cash balance of $242 1 billion.

Giving us a strong financial position importantly, we believe our business model continued to generate positive free cash flow each quarter.

Speaker 4: Importantly we believe our business model will continue to generate positive free cash flow each part

Speaker 4: Now I will turn it over to our CEO for those things to walk you through our financials before providing by closing remarks. Joe, thank you, I.K.

Now I will hand, it over to our CFO those sacred to walk you through our financials before I provide.

Providing by closing remark.

Joe.

Thank you Jay and good afternoon, everyone.

Speaker 5: Our revenues for the fourth quarter of 2021 decreased 5% to $86.3 million from the prior year period.

Our revenues for the fourth quarter of 2021 decreased 5% to $86 $3 million from the prior year period.

Speaker 5: Q4 2020 benefited from the widespread stay at home COVID prevention initiatives in place at that time, which have significantly abated since then.

Q4, 2020 benefited from the widespread stay at home Covid prevention initiatives in place at that time, which have significantly abated. Since then.

Speaker 5: For the full year of 2021, Revenue increased 1.4% to a record $363.2 million.

For the full year of 2021 revenue increased one 4% to a record $363 2 million.

Speaker 5: We continue to be encouraged with key monetization metrics that improve from the comparable quarter last year and for the full year 2021 versus the full year 2020.

We continue to be encouraged with key monetization metrics that improved from the comparable quarter last year and for the full year 2021 versus the full year 2020.

Speaker 5: Specifically, average revenue per daily active user or ARP dial increased from 88 cents in Q4 2020 to 96 cents in Q4 2021.

Specifically.

Average revenue per daily active user or DAU increased from 88 <unk> in Q4 2020 to 96.

In Q4 2021.

Speaker 5: and ARP Dow for the full year 2021 increased to 97 cents compared to 83 cents for the full year 2020.

<unk> for the full year 2021 increased to 97.

Compared to 83.

For the full year 2020.

Speaker 5: Secondly, average monthly revenue prepare increased from $205 in 2 4 2020 to $216 in 2 4 2021.

Secondly, average monthly revenue per pair increased from $205 in Q4 2020 to $216 in Q4 202021.

Speaker 5: and average monthly revenue prepare for the full year 2021 increased to $218 compared to $191 for the full year 2020.

And average monthly revenue per payer for the full year 2021 increased to $218 compared to $191 for the full year 2020.

Speaker 5: Lastly, pair conversion, which is the percentage of players who pay double bound was unchanged at 5.5% in Q4 2021 compared to the prior year period. For the full year 2021, pair conversion increased to 5.7% from 5.3% in 2020.

Lastly, payer conversion, which is the percentage of players who pay double down was unchanged at five 5% in Q4, 2021 compared to the prior year period.

Full year 2021 payer conversion increased to five 7% from five 3% in 2020.

In addition, the initial engagement of players from Undid World Hero survival, our first non social casino game gaming App launched at the end of September 2021 positively impact our sequential quarterly player engagement metrics as Q4 total month.

Monthly active users or MAA, you increased compared to Q3 2021.

Speaker 5: Total operating expenses for the fourth quarter of 2021 decreased 8.8% to $62.7 million.

Total operating expenses for the fourth quarter of 2021 decreased eight 8% to $62 $7 million.

Speaker 5: from the prior year period. The decrease was primarily due to a combination of lower cost of revenues, lower G&A and lower depreciation and amortization.

From the prior year period.

Decrease was primarily due to a combination of lower cost of revenues, lower G&A and lower depreciation and amortization expense.

Speaker 5: For the full year 2021, total operating expenses decreased 1.9% to 264.5 million dollars from the prior year period.

For the full year 2021, total operating expenses decreased one 9% to $264 $5 million from the prior year period.

Speaker 5: The decrease was primarily due to lower depreciation and amortization expenses from the priori.

The decrease was primarily due to lower depreciation and amortization expenses from the prior year.

Of note sales and marketing expenses in Q4, 2021 were $21 9 million, representing a 25% increase compared to the fourth quarter of 2020. This increase was primarily due to the activity to acquire initial new players for undead World Euro serves.

<unk>.

Speaker 5: Going forward, we expect to continue to incur advertising expenses both to acquire and retain players for Double Down Casino and for the ramp up of our new app and issue.

Going forward, we expect to continue to incur advertising expenses, both to acquire and retain players for double down casino and for the ramp up of our new App initiatives.

Speaker 5: It is also worth noting that depreciation and amortization expenses in 2.4 2021 or $2.2 million compared to $7.6 million in 2.4 2021.

It is also worth noting that depreciation and amortization expenses in Q4, 2021, or $2 $2 million compared to $7 $6 million in Q4, 2021 and were $17 $9 million for the full year 2021 compared to <unk>.

Speaker 5: and were 17.9 million dollars for the full year 2021 compared to 31.6 million dollars for the full year 2020.

$31 6 million for the full year 2020.

The decreases were due to the completed amortization of certain identifiable intangible assets well what should we use purchase price allocation at the time of the 2017 double down interactive acquisition.

Speaker 5: Net income for the fourth quarter of 2021 increased to $17.5 million or $7.8 per deluded share compared to $15.5 million or $6.99 per deluded share in the fourth quarter of 2020.

Net income for the fourth quarter of 2021 increased to $17 $5 million or $7.08 per diluted share compared to $15 $5 million or $6.99 per diluted share in the fourth quarter of 2020.

For the full year of 2021, net income increased to $78 $2 million or $33.96 per diluted share compared to net income of $53 6 million or $26 20 per.

Her diluted share in the full year of 2020.

Speaker 5: Adjusted EBITDA for the fourth quarter of 2021 was $25.8 million compared to $29.9 million in the prior year quarter.

Adjusted EBITDA for the fourth quarter of 2021.

Does $25 8 million compared to $29 9 million in the prior year quarter.

Speaker 5: Adjust an EBITDA margin of 29.9%, represents a reduction of approximately 296 basis points compared to Q420.

Adjusted EBITDA margin of 29, 9% represents a reduction of approximately 296 basis points compared to Q4 2020.

Speaker 5: The quarterly year over year decline, the adjusted EBITDA and adjusted EBITDA margin is primarily attributable to lower revenue and higher sales and marketing costs as I previously discussed.

The quarterly year over year decline in adjusted EBITDA and adjusted EBITDA margin is primarily attributable to lower revenue and higher sales and marketing costs as I previously discussed.

Speaker 5: For the full year of 2021, adjusted EBITDA remained relatively stable compared to 2020 at approximately $120 million.

For the full year of 2021, adjusted EBITDA remained relatively stable compared to 2020 at approximately $120 million 2021 full year. Adjusted EBITDA margin was 33, 1% slightly below last year's result of 33, 6%.

Speaker 5: 2021 full year of just the but a margin was 33.1% slightly below last year's result of 33 point

Adjusted EBITDA and adjusted EBITDA margin are non-GAAP measures, which we believe are useful in evaluating our operating performance.

A full reconciliation of these measures to the most directly comparable GAAP measure is available in the earnings release.

Speaker 5: Cash low from operations for the fourth quarter of 2021 was $20.4 million compared to $36.1 million in the prior year period. We did not incur any material capital expenditures during the court.

Cash flow from operations for the fourth quarter of 2021 was $24 million compared to $36 1 million in the prior year period, we did not incur any material capital expenditures during the quarter.

Speaker 5: For the full year, cash flow from operations was $96.1 million compared to cash flow from operations of $99.9 million during the 12 month of 2020.

For the full year cash flow from operations was $96 1 million compared to cash flow from operations of $99 $9 million during the 12 months of 2020.

Speaker 5: And finally, turning to our balance sheet, at the end of the fourth quarter, we had $242.1 million of cash and cash equivalent compared to $223.1 million at the end of Q3 2021.

And finally, turning to our balance sheet at the end of the fourth quarter, we had $242 $1 million of cash and cash equivalents compared to 200.

$223 $1 million at the end of Q3 2021.

Speaker 5: The improvement in our net cash position would do to the aforementioned net cash flow from operations as we continue to remain in a state of positive cash flow generation.

The improvement in our net cash position was due to the aforementioned net cash flow from operations as we continue to remain in a state of positive cash flow generation.

Speaker 5: That completes my financial summary. Now I will turn the call back over to IK for closing remarks.

That completes my financial summary, now I will turn the call back over to AK for closing remarks.

Thank you Joe.

Some of you know double down has declined.

<unk> growth strategy.

<unk>, let me briefly comment on each element firstly, we will continue to maximize our readership positions in the social casino gaming industry. This is primarily through our flagship game App double down.

Speaker 4: This is primarily through our flagship game app, Double Dunk, you know, leveraging our passionate current base of players while acquiring youth players through the frequent and consistent launch of youth slot games. And the introduction of exciting youth meta

Leveraging our passionate current base of players while acquiring new players through the frequent and consistent lunch up new slot games and the introduction of exciting you've met off peak periods.

Speaker 4: Secondly, we plan to continue to expand into adjacent move or gaming segments, starting with last quarter luncheon on that work, your survival.

Secondly, we plan to continue to expand into adjacent mobile gaming segment, starting with last quarter launch up on that word killer survival.

Speaker 4: We were encouraged by the player engagement that Rix then immediately after on that worldwide launch in late September .

We're encouraged by the player engagement metrics immediately after on that.

<unk> launched in late September .

Speaker 4: We expect to continue to optimize our monetization threat.

Back to continue to optimize our monetization strategy.

Speaker 4: The future set of the game as we start has towards more material monetization while building a critical mass of players for wrong-town value creation. In parallel, we are preparing for the leads of our next non-social scene web, spinning in space.

The future of the game as we chart a path towards more material monetization, while building a critical mass of players for a long term value creation in parallel we are preparing for the lease of our <unk>.

Non social casino app pending in state risks.

Speaker 4: which we currently expect will be available to players in the summer of 2020.

We currently expect will be available to players in the summer of tiny tiny too.

Speaker 4: We believe that we are in an excellent position to capital life in the last element of our goals facility, MNA due to our strong balance sheet first served by late September's IPO and our track records of post-merger expeditions.

We believe that we are in excellent position to capital life, the last element of our.

Our breadth of the M&A due to our strong balance sheet first start by late September IPO, and our track record our post merger execution.

We continue to evaluate opportunities to accelerate our organic growth potential and have been encouraged by the recent.

Growth or M&A activity within the gaming industry.

We are now happy to take your questions.

Operator.

Yeah.

Speaker 2: Thank you sir. Ladies and gentlemen, if you'd like to ask a question at this time, you will need to press the start and the one key on your touch down telephone to enjoy your question and press the pound key. We stand by, we'll be compiled to KNA Raster.

Thank you, Sir ladies and gentlemen, I'd like to ask a question at this time you will need to press. The Star then the one key on your Touchtone telephone to withdraw your question press the pound key please standby, while we compile the Q&A roster.

Speaker 2: Now first question will come from David Bain would be Riley, you want to self in?

Our first question will come from David Bain with B Riley. Your line is now open.

Speaker 6: Great, thanks. I can't Joe, once again, nice, cashflow conversion. I guess my first question would be if you could buy for KD, core double down, Casino MAUs and DAU from undead world for the quarter. Do you have any metrics we can chew on?

Great. Thanks, I can Joe once again nice cash flow conversion I guess my first question would be if you could bifurcate the core double down casino I may use an NDA is from from.

For Monday World for the quarter do you have any metrics, we can chew on.

Yes, Dave.

Thanks.

Speaker 5: The, as I said in my comments, total company MAUs did increase. And obviously, if you've been following us in the industry, for the first time.

As I said in my comments total company May use did.

And obviously <unk>.

You've been following us in the industry.

That's.

For the first time in a while.

Speaker 5: I think why can't break it out separately. Certainly MAUs and VAUs are still...

I think while I can't break it out separately.

Certainly I may use.

<unk>.

Our still.

Speaker 5: falling somewhat in the social casino business and are being augmented or offset, if you will, by what we've seen with Undead World, which if you think back to what we described earlier and during the IPO process, it's exactly the part of the strategy, or at least the hopeful outcome of our strategy to expand to adjacent areas.

Following somewhat in the social casino business.

And are being augmented or offset if you will by what we've seen with undead world, which do.

If you think back to what we described earlier.

And during the IPO process is exactly the strat part of the strategy or at least the hopeful outcome of our strategy to expand to adjacent areas which is to.

Speaker 5: which is to grow our overall player base by moving into social Latino and Latino.

So our overall player base.

By moving into a social casino.

Speaker 6: Right, okay. Okay, and you know, we've been hearing a lot about the metabuse, Metaverse or blockchain and mobile games. Are these opportunities that DDI is working on, and what could that look like from just timing or...

Right Okay.

Okay, and you know we've been hearing a lot about the amount of U verse or blockchain and mobile games are these opportunities that DDI is working on it and what could that look like from just timing or just overall perspective.

Yeah, I think that yeah, there's no doubt that.

Speaker 5: Yeah, thanks Dave. Yeah, there's no doubt that the metaverse and blockchain...

The meta versus in blockchain and NFC.

Speaker 5: NFT, all those terms have been used a lot in gaming more recently. And certainly we think it's a very exciting potential for the future of gaming.

All of those terms have been used a lot in gaming more recently and certainly we think it's a very exciting pencil or.

The future of gaming and.

Speaker 5: We're very interested in leveraging, especially in Korea, where the gaming industry...

We're very interested in.

Leveraging especially in Korea, where the gaming industry.

Speaker 5: is definitely truly the forefront of some of the metaverse and FD activity and gaming, frankly, there that we can leverage the expertise available in Korea. So with that, maybe I'll ask I think to talk a little bit about what our strategy is.

It is definitely really the forefront of some of the net averse NFC activity in gaming frankly, there that we can leverage the expertise available in.

In Korea, so with that maybe I'll ask.

I can talk a little bit about what are what our strategy is at this point yeah. Thanks. Thanks, Dave.

Speaker 4: Thank you, though, and thank you. We believe it will be one of our future opportunities.

We believe it will be one of our future opportunities.

Speaker 4: Technically, I believe our internal we are already, ready to adapt our skills the quick dependency and divide earlier. And now we are taking how to leverage it with our own content utilizing outside opportunities like M&A and love racing.

Technically I believe our tunnel.

Levy ready.

All right.

Take the currency and they buy area and now we are taking out to elaborate yes.

Our own content utilizing outside.

Like M&A and elaborate.

So hopefully it helps.

Speaker 5: Yeah, I guess additional comment I'll make and Dave is, you know, one of the things that we are very, frankly cautious about is creating a thing of value in social context, you know, relative to gambling statutes, et cetera. So, you know, we also are looking a need to investigate and look at the whole area through that lens as well.

Yes.

Additional comment I'll make.

Dave as you know one of the things that we are very.

Frankly cautious about is.

Creating a thing of value in social and the social context relative to.

Gambling statutes et cetera. So.

We also are looking need to investigate and look at.

This whole area through that lens as well.

Speaker 6: Understood. Okay. And then if I can go one over

Understood. Okay, and then if I can go one over.

Speaker 6: you know we notice that the double you the parent offered it's first of our dividends since being public and understanding growth is still the priority for ddi

We noticed the W. The parent offer to its first ever dividend since being public in understanding growth is still the priority for DDI.

Is the company open to dividends down the road if you if you don't find.

Suitable or a large enough target for diversification at the right price and then just on that and just any sort of commentary on the M&A market kind of what your what Youre looking at what your discussions are sort of.

Bringing in terms of.

Speaker 6: Topics or ideas or anything around that would

Topics or ideas or anything around that would be helpful.

Speaker 5: Well, let me start on the dividend side. You're right. W is actually paid a dividend annually ever since it went public several years ago, which is

Sure.

Well, let me start on the dividend side you're right.

<unk> is actually paid a dividend annually ever since it went public several years ago.

Which is.

Speaker 5: It's my understanding fairly normal for companies that are listed in Korea. Relatives to double down certainly that ultimately one option for us, given our cash balance.

It's my understanding fairly normal for.

Companies that are listed in Korea.

Relative to double down.

Really that ultimately one option for us.

Given our cash balance.

Speaker 5: But as we've said, especially as we continue to look at M&A opportunities, we know that having a war chest, if you will, at least for a while, as we, you know,

But.

As we've said.

Especially as we continue to look at M&A opportunities.

We know that having a war chest, if you will at least for for a while as we.

Speaker 5: In case some of these, you know, more interesting M&A opportunities to the ground is important for us. And so...

Hey, some of these.

More interesting M&A opportunities to the ground.

It's important for us.

And so at least for now.

Speaker 5: For now, that's really been the focus of our, if you will, balance sheet activities. And we...

That's really.

The focus of our if you will balance sheet activity.

And we.

We'll look at other options.

Download counts down the road relative to M&A progress, obviously I can't speak to anything.

Very specific but I will say that we are.

Fully engaged in.

And looking at opportunities.

Speaker 5: and there's been in the broader mobile gaming market quite a bit of M&A activity on the one hand. On the other hand, I think to be honest,

And there's been.

And in a broader mobile gaming market quite a bit of a M&A activity on the one hand on the other hand, I think to be honest.

Valuation expectation. This is good for an acquired potential acquirer valuation expectations have.

Starting to become a little more realistic and so.

We were interested in seeing how these will play out.

Okay, great. Thanks, Okay. Thanks, Joe.

Thanks, Ed.

Speaker 2: Our next question coming from Lina, grossed you with Northland securities, please proceed.

Our next question coming from the line of Grad students with Northland Securities. Please proceed.

Speaker 7: Hi, good afternoon, I'm Kay and Joe. Thanks for taking the questions, appreciate it. You know, what was wondering, you know, you've had a couple quarters now with tough year over your headwinds related to the state home orders. You know, any thoughts on, you know, when you expect to getting back to Europe or your revenue growth? And, you know, if we think about the resurgence of COVID cases in January here, you know, would that positively impact playtime in Q1?

Hi, Good afternoon, Hey, Joe Thanks for taking the questions I appreciate it.

Was wondering you've had a couple of quarters now with tough year over year headwinds related to the stay at home orders.

Any thoughts on when you expect to getting back to year over year revenue growth.

If we think about the resurgence of Covid cases in January here.

Would that positively impact play time in Q1.

Speaker 5: Yeah, there's no question that, you know, the comparable, as we mentioned earlier on the call to 2020, you know, have been somewhat difficult. You know, that being said, the comparison to 2019 still shows a significant bump in revenue, and we...

Yes, Theres no question that.

The Comparables as we mentioned earlier on the call to 'twenty.

<unk>.

Have been somewhat difficult that being said.

The comparison to 2019 still shows a significant bump in revenue and we.

Speaker 5: you know, are continuing to look to grow from what is a much higher base, kind of steady state base of the business than we were, you know, two years or less than two years ago. You know, if I compare us to what I'm hearing and what we're reading about the social casino industry and what it is.

Sure.

Are continuing to look to grow from what is a much higher base kind of steady state base of the business than we were.

Two years or less than two years ago.

If I.

Compare us to what what I'm hearing and what we're reading about the social casino industry and what it is.

How it performed at the at the end of 2021.

As a whole I think.

We're all as an industry continuing to do things.

To create that growth given the bump that we all had over the last 18 to 24 months I mean, certainly the things that I cant mentioned around.

Speaker 5: game improvements within Double Downs Flak game improvements with End Double Down Casino and Meta features.

Game improvements within double down slot game improvements within double down casino.

And meta features.

Our marketing and marketing activities and continued focus on.

ROE at improving our ROE as and using our advertising partners positively to acquire good paying new users all of that.

Is toward growth within social casino and then as we've discussed on top of that the expansion into social casino Adjacencies.

Speaker 5: As we've discussed, on top of that, the expansion into social casino adjacencies is extremely important for us. Very early days, obviously, with just the first few months of the undead world launch, and we have other games in flight in our development teams. But that is an augment, whatever growth that we will ultimately see with social casino.

Is extremely important for us.

Very early days, obviously with just the first few months of the undead World launch and we have other games in flight.

In our development teams, but.

That is going to augment whatever growth that we will ultimately see with social casino.

Speaker 7: Great, very helpful Joe. And I know you already spoke on kind of your M&A and then a dividend thoughts. So, you know, no need to repeat yourself. But one of the follow up, you know, in terms of the balance sheet, being strengthened, cash generation and conversion's strongest quarter.

Great very helpful Jo Anne.

I know you already spoke on kind of your M&A and dividend thoughts so no need to repeat yourself, but wanted to follow up.

In terms of the balance sheet being strengthened cash generation and conversion strongest quarter.

Speaker 7: You know, just wondering if you can maybe from a high level discuss upcoming capital deployment or uses in terms of your priority.

Just wondering if you could maybe from a high level discuss upcoming capital deployment or uses in terms of your priorities.

Speaker 5: Yeah, well, again, I think, you know, M&A for us is the top priority.

Yeah, well again I think.

M&A for us is the top priority.

Speaker 5: Actually, let me step back and say that top priority is maximizing shareholder value. And that is first and foremost what we're about. And we see our strong balance sheet as a tool to be used to maximize shareholder value. For us,

Actually let me step back and say the top priority is maximizing shareholder value.

And.

That is first and foremost what we're about.

And we see our strong balance sheet as a tool to be used to maximize shareholder value.

For us.

The main focus or the main priority.

To use with that tool.

Is towards growth.

And that growth, obviously is continuing to do the things that we've been talking about from an organic standpoint.

But also the.

Potential through M&A for inorganic.

Growth.

As we optimize the use of our cash balance.

And so.

That's I think the best way to answer your question there Greg.

Speaker 7: Yes, appreciate that. That's helpful. Last one from me just relating to my dead world. Now that we have a handful of months since it's launched, do you just want to talk a little bit more about its performance, whether it's kind of lived up to your early expectations? And then you have a sense of maybe what that game can contribute in 2022 or any sense of run rate, or really any metrics.

Yes, I appreciate that Thats helpful.

Last one from me just related on that world.

Now that we have a handful of months since its launch.

Just wondering if you could talk I guess, a little bit more about its performance, whether it's kind of lived up to your earlier expectations and then do you.

Have a sense of maybe what that game can contribute in 2022 or any sense of a run rate or really any metrics you'd be willing to share.

Speaker 5: Yeah, so on did World, you know, we've had three, four months now in Worldwide launch. And I'd say, you know, we're very encouraged by player engagement. And, you know, that...

Yes, so on did world we've had three four months now.

And worldwide launch.

And I'd say, we're very encouraged by.

Player engagement.

And that.

<unk>.

Speaker 5: means the reaction to how players are engaging with the game. And certainly from a metric standpoint, how players are retaining especially new players. And D7 numbers are especially strong.

It means the reaction to.

Two how players are engaging with the game.

And certainly from a metric standpoint, how players are retaining.

Especially new players and <unk> numbers.

Are especially strong.

Where we continue to be focused is monetization so taking that.

Excitement interest if you will in the game and converting that in.

Into not only the first time.

Payment activity, but ongoing payment and so where are we where we really need to focus based on what we've seen so far is payer retention and so.

Speaker 5: And so one of the important things that we're doing now is continued development in the game from an economy standpoint, from a feature standpoint.

One of the important things that we're doing now is.

Continued development.

And in the game from an economy standpoint from a feature standpoint, so that we can improve.

The monetization metrics and especially the payer retention metrics and so over the next.

A few months youre going to see more and more features release of that sort and improvements there.

Now that we know.

Expect two to aid us in the monetization of the game.

Got it thanks for the color and thanks for taking the question.

Thanks, Greg.

Speaker 2: And as a minor lesson, gentlemen, to ask the question, please press star one.

And as a reminder, ladies and gentlemen to ask a question. Please press star one.

Speaker 2: Our next question coming from Glonop. Erin Lee with McCory. You'll find Smellton. Please, good.

Our next question coming from the lineup Aaron Lee with Macquarie. Your line is now open. Please proceed.

Speaker 8: Hey, good afternoon. Thanks for taking my question. Appreciate all your comments on marketing and M&A. So just a quick one for me.

Hey, good afternoon, Thanks for taking my question.

Appreciate all your comments on marketing and M&A.

So just a quick one for me.

Speaker 8: Just more broadly speaking, when you think about your growth in 2022 and the building blocks for growth, where do you see the biggest opportunity?

Just more broadly speaking when you think about your growth in 2022, and the building blocks for growth, where do you see the biggest opportunities.

Speaker 8: Do you expect most of your growth to come from converting more users or growing ARP DAW or how do you think about that?

You expect most of your growth to come from.

We're adding more users or growing opt out or how do you think about that.

Speaker 5: Yeah, well, if you look at all the answer in two pieces, right? Obviously on the social casino side, we are continuing to see improvements in revenue prepared.

Yeah, well if you look at.

I'll answer in two pieces right, obviously on the social casino side.

We are continuing to see improvements in <unk>.

Revenue per payer.

Speaker 5: So the payers that we have continue to be very passionately engaged with Double Down Casino specifically and based on the activities that we are giving them like new games, new slot games, et cetera, we're seeing their propensity to pay continued increase and we certainly see that being a big contributor to 2022 growth.

So the payers that we have.

To be very passionately engaged with with double down casino specifically and.

Based on the activities that we are giving them like new games, new slot games et cetera.

We're seeing their propensity to pay continued to increase and we certainly see that being a big contributor to 2022 growth.

We also are adding new players every day right. So new user acquisition is extremely important it's the biggest single area of discretionary spend in the company.

So we continue to.

Speaker 5: We think do a very good job managing our advertising partners, optimizing the row as associated with that investment to get new payers into the game and continue to retain them.

We think do a very good job managing our advertising partners optimizing the ROE as associated with our with that investment.

To get new payers into the game and.

We continue to retain them as payers.

Speaker 5: And so for us, that's really the focus for the social science side of the business. Obviously on the new app side, it's the ability for us to grow our player base first and foremost as we add new players to like undead world and ultimately spinning in space. And then to get those players to monetize, you know, clearly that's

And so for US that's that's really the focus for for the social casino side of the business, obviously on the new App side.

The ability for us to grow our payer our player base first and foremost as we add new players to like on dead World and ultimately spinning in space and then.

Get those.

Those players to monetize.

Clearly, that's it's all incremental revenue to us in a sense.

Since we don't have a base of any.

Non social casino revenue.

<unk> to the fourth quarter of 2021, so that that's obviously another important element of our of our growth strategy in 2022.

Speaker 8: That's all for the follow up for me.

Great that's helpful.

The follow up quick follow up for me.

Speaker 8: Any updates on how your user acquisition costs have trended post the IDFHA change?

Any update on how your user acquisition costs have trended.

Post the idea if they change.

Speaker 8: class quarter you talked about CPI's trending higher in the summer before pulling back in the fall around September , October . Some curious. I would be trended since then and into early 2022. Thanks.

Last quarter, you talked about CPI is trending higher in the summer and before pulling back in the fall around September October So I'm curious.

They trended since then and into early 2022.

Yes so.

As I think we mentioned Latin as you said last time.

<unk> initially.

Was deployed.

We certainly saw a couple of phenomenon. It's first of all there was a big shift towards Android.

And in the <unk>.

Speaker 5: demand, if you will. And so as a result, Android CPI increased significantly. And that really occurred through the summer, let's say, into the early fall. Starting in Q4, we saw Android CPI actually begin to fall. And, you know, fast forward to today or to the start of Q1, we see Android CPI is essentially back to where they were a year ago.

Demand, if you will and so as a result of Android Cpi's increased.

<unk>.

And.

That really occurred through the summer, let's say into the early fall starting in Q4, we saw Android CPI is actually begin to fall.

And.

Fast forward to today or.

The start of Q1, we see Android CPI is essentially back to where they were a year ago.

Speaker 5: And then relative to iOS, it's really...

And then relative to iOS.

It's really.

Speaker 5: been a volatile environment post IDFA, but if you again fast forward to today, we generally just see the normal volatility that we've experienced in the past around seasonality. So December spikes, January fall off, just essentially back to the kind of normal fluctuation. nine.

Been a volatile environment post <unk>, but if you again fast forward to today, we we generally just see the normal volatility that we've experienced in the past around seasonality. So.

December spikes January falloff.

Essentially back to the kind of normal fluctuation.

Speaker 8: Okay, got it. Awesome. That's really helpful. Thank you very much.

Okay got it awesome, that's really helpful. Thank you very much.

Speaker 2: At this time, this concludes our question and answer session. I would now like to send a call back over to Mississippi.

At this time. This concludes our question and answer session I would now like to turn the call back over to Mr. Cigarettes.

Speaker 5: The operator, thank you so much for monitoring this call today. And thank you, a big thank you to everyone who has joined us today for this call and your interest in double down. And we will continue to keep you updated with further status as we continue to innovate and grow the business. And we hope you have a great rest of your day. Thank you.

Okay. Operator, thank you so much for.

Monitoring this call today and thanks.

A big Thank you to everyone, who has joined US today for this call and your interest in double down.

And we will continue to keep you updated with further.

<unk> status as we continue to innovate and grow the business and.

We hope you have a great rest of your day. Thank you.

Speaker 2: I thank you for joining us today for Double Dump's earnings call. You may now disconnect.

Ladies and gentlemen, thank you for joining us today for Dr. <unk> earnings call you may now disconnect.

Q4 2021 DoubleDown Interactive Co Ltd Earnings Call

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