Cover Page
Cover Page | 6 Months Ended |
Jun. 30, 2022 | |
Document Information [Line Items] | |
Document Type | 6-K/A |
Amendment Flag | true |
Document Period End Date | Jun. 30, 2022 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | Q2 |
Entity Registrant Name | DoubleDown Interactive Co., Ltd. |
Entity Central Index Key | 0001799567 |
Current Fiscal Year End Date | --12-31 |
Amendment Description | This report on Form 6-K/A (this “Amendment”) amends the report on Form 6-K previously furnished on August 9, 2022 (the “Original 6-K”) to (i) provide the unaudited consolidated financial statements for the three and six months ended June 30, 2022 (the “Interim Financial Statements”) of DoubleDown Interactive Co., Ltd. set forth on Exhibit 99. 1 to this Amendment using Inline eXtensible Business Reporting Language (“iXBRL”), in accordance with Section 405 of Regulation S-T and Paragraph C.(6)(b) of the General Instructions to Form 6-K, and (ii) correct a rounding error with respect to the amount of total shareholders’ equity as of June 30, 2022 on page F-4 of the Interim Financial Statements. The Interim Financial Statements were previously furnished without iXBRL as Exhibit 99.2 to the Original 6-K. Except as described above, this Amendment does not amend, update or restate any information set forth in the Original 6-K or reflect any events that occurred subsequent to the original date of the Original 6-K. |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income and Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | ||
Statement of Comprehensive Income [Abstract] | |||||
Revenue | $ 80,570 | $ 93,228 | $ 166,056 | $ 189,895 | |
Operating expenses: | |||||
Cost of revenue | [1] | 27,497 | 32,490 | 56,345 | 66,338 |
Sales and marketing | [1] | 18,051 | 20,024 | 37,842 | 39,752 |
Research and development | [1] | 4,333 | 4,407 | 9,013 | 10,098 |
General and administrative | [1] | 77,180 | 8,706 | 82,450 | 13,010 |
Depreciation and amortization | 1,493 | 5,869 | 3,706 | 13,345 | |
Total operating expenses | 128,554 | 71,496 | 189,356 | 142,543 | |
Operating income | (47,984) | 21,732 | (23,300) | 47,352 | |
Other income (expense): | |||||
Interest expense | (454) | (512) | (925) | (1,021) | |
Interest income | 586 | 32 | 794 | 83 | |
Gain on foreign currency transactions | 193 | 163 | 315 | 406 | |
Gain (loss) on foreign currency remeasurement | 5,646 | 93 | 7,415 | 138 | |
Gain (loss) on short-term investments | (4,045) | (5,806) | |||
Other, net | (20) | (249) | (55) | 408 | |
Total other income (expense), net | 1,906 | (473) | 1,738 | 14 | |
Income before income tax | (46,078) | 21,259 | (21,562) | 47,366 | |
Income tax (expense) benefit | 12,022 | (2,837) | 6,000 | (9,528) | |
Net income (loss) | (34,056) | 18,422 | (15,562) | 37,838 | |
Other comprehensive income (expense): | |||||
Pension adjustments, net of tax | 239 | 15 | (287) | (40) | |
Gain (loss) on foreign currency translation | (3,526) | (114) | (4,972) | 1,215 | |
Comprehensive income (loss) | $ (37,343) | $ 18,323 | $ (20,821) | $ 39,013 | |
Earnings per share: | |||||
Basic | $ (13.75) | $ 8.32 | $ (6.28) | $ 17.09 | |
Diluted | $ (13.75) | $ 8.32 | $ (6.28) | $ 17.09 | |
Weighted average shares outstanding: | |||||
Basic | 2,477,672 | 2,214,522 | 2,477,672 | 2,214,522 | |
Diluted | 2,477,672 | 2,214,522 | 2,477,672 | 2,214,522 | |
[1]Excluding depreciation and amortization |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 192,908 | $ 242,060 |
Short-term investments | 91,526 | |
Accounts receivable, net | 19,747 | 21,875 |
Prepaid expenses, and other assets | 7,552 | 6,817 |
Total current assets | 311,733 | 270,752 |
Property and equipment, net | 369 | 384 |
Operating lease right-of-use assets, net | 5,268 | 6,830 |
Intangible assets, net | 50,057 | 53,679 |
Goodwill | 633,965 | 633,965 |
Deferred tax asset | 2,002 | 2,616 |
Other non-current assets | 1,435 | 1,582 |
Total assets | 1,004,829 | 969,808 |
Current liabilities: | ||
Accounts payable and accrued expenses | 14,116 | 14,752 |
Short-term operating lease liabilities | 3,127 | 3,076 |
Contract liabilities | 1,612 | 2,246 |
Litigation accrual and other current liabilities | 77,687 | 730 |
Total current liabilities | 96,542 | 20,804 |
Long-term borrowings with related party | 38,673 | 42,176 |
Long-term operating lease liabilities | 3,011 | 4,688 |
Deferred tax liabilities, net | 15,905 | 28,309 |
Other non-current liabilities | 7,642 | 9,953 |
Total liabilities | 161,773 | 105,930 |
Shareholders' equity | ||
Common stock, KRW 10,000 par value - 200,000,000 Shares authorized; 2,477,672 issued and outstanding | 21,198 | 21,198 |
Additional paid-in-capital | 671,831 | 671,831 |
Accumulated other comprehensive income | 17,774 | 23,033 |
Retained earnings | 132,254 | 147,816 |
Total shareholders' equity | 843,056 | 863,878 |
Total liabilities and shareholders' equity | $ 1,004,829 | $ 969,808 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - ₩ / shares | Jun. 30, 2022 | Dec. 31, 2021 |
Common Stock, Par or Stated Value Per Share | ₩ 10,000 | ₩ 10,000 |
Common Stock, Shares Authorized | 200,000,000 | 200,000,000 |
Common Stock, Shares, Issued | 2,477,672 | 2,477,672 |
Common Stock, Shares, Outstanding | 2,477,672 | 2,477,672 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Common stock [Member] | Additional paid-in-capital [Member] | Accumulated other comprehensive income/(loss) [Member] | Retained earnings (Deficit) [Member] |
Beginning balance at Dec. 31, 2020 | $ 699,511 | $ 18,924 | $ 588,064 | $ 22,815 | $ 69,708 |
Beginning balance (in shares) at Dec. 31, 2020 | 2,214,522 | ||||
Net Income | 37,838 | 37,838 | |||
Pension adjustments, net of tax | (40) | (40) | |||
Gain (loss) on foreign currency translation, net of tax | 1,215 | 1,215 | |||
Ending balance at Jun. 30, 2021 | 738,524 | $ 18,924 | 588,064 | 23,990 | 107,546 |
Ending balance (in shares) at Jun. 30, 2021 | 2,214,522 | ||||
Beginning balance at Mar. 31, 2021 | 720,201 | $ 18,924 | 588,064 | 24,089 | 89,124 |
Beginning balance (in shares) at Mar. 31, 2021 | 2,214,522 | ||||
Net Income | 18,422 | 18,422 | |||
Pension adjustments, net of tax | 15 | 15 | |||
Gain (loss) on foreign currency translation, net of tax | (114) | (114) | |||
Ending balance at Jun. 30, 2021 | 738,524 | $ 18,924 | 588,064 | 23,990 | 107,546 |
Ending balance (in shares) at Jun. 30, 2021 | 2,214,522 | ||||
Beginning balance at Dec. 31, 2021 | 863,878 | $ 21,198 | 671,831 | 23,033 | 147,816 |
Beginning balance (in shares) at Dec. 31, 2021 | 2,477,672 | ||||
Net Income | (15,562) | (15,562) | |||
Pension adjustments, net of tax | (287) | (287) | |||
Gain (loss) on foreign currency translation, net of tax | (4,972) | (4,972) | |||
Ending balance at Jun. 30, 2022 | 843,056 | $ 21,198 | 671,831 | 17,774 | 132,254 |
Ending balance (in shares) at Jun. 30, 2022 | 2,477,672 | ||||
Beginning balance at Mar. 31, 2022 | 880,401 | $ 21,198 | 671,831 | 21,061 | 166,311 |
Beginning balance (in shares) at Mar. 31, 2022 | 2,477,672 | ||||
Net Income | (34,056) | (34,056) | |||
Pension adjustments, net of tax | 239 | 239 | |||
Gain (loss) on foreign currency translation, net of tax | (3,526) | (3,526) | |||
Ending balance at Jun. 30, 2022 | $ 843,056 | $ 21,198 | $ 671,831 | $ 17,774 | $ 132,254 |
Ending balance (in shares) at Jun. 30, 2022 | 2,477,672 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flow from (used in) operating activities: | ||
Net Income | $ (15,562) | $ 37,838 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Depreciation and amortization | 3,706 | 13,345 |
(Gain)Loss on foreign currency remeasurement | (7,415) | (138) |
(Gain)Loss on short-term investments | 5,806 | |
Deferred taxes | (11,988) | 522 |
Working capital adjustments: | ||
Accounts receivable | 493 | (8,966) |
Prepaid expenses, other current and non-current assets | (844) | 503 |
Accounts payable, accrued expenses and other payables | 904 | 794 |
Contract liabilities | (634) | (521) |
Income tax payable | (5,602) | |
Other current and non-current liabilities | 75,046 | 6,065 |
Net cash flows from (used in) operating activities | 49,512 | 43,840 |
Cash flow from (used in) investing activities: | ||
Purchases of intangible assets | (3) | (1) |
Purchases of property and equipment | (99) | (82) |
Disposals of property and equipment | 6 | 3 |
Purchases of short-term investments | (235,391) | |
Sales of short-term investments | 141,001 | |
Net cash flows from (used in) investing activities | (94,486) | (80) |
Cash flow from (used in) financing activities: | ||
Net cash flows from (used in) financing activities: | ||
Net foreign exchange difference on cash and cash equivalents | (4,178) | (690) |
Net increase (decrease) in cash and cash equivalents | (49,152) | 43,070 |
Cash and cash equivalents at beginning of period | 242,060 | 63,188 |
Cash and cash equivalents at end of period | 192,908 | 106,258 |
Cash paid during year for: | ||
Interest | ||
Income taxes | $ 9,334 | $ 13,646 |
Description of Business
Description of Business | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of business | Note 1: Description of business Background and nature of operations DoubleDown Interactive Co., Ltd. (“DDI,” “we,” “us,” “our” or “the Company,”) was incorporated in 2008 in Seoul, Korea as an interactive entertainment studio, focused on the development and publishing of casual games and mobile applications. DDI is a subsidiary of DoubleU Games Co., Ltd. (“DUG” or “DoubleU Games”), a Korean company and our controlling shareholder holding 67.1% of our outstanding shares. The remaining 32.9% of our outstanding shares are held by STIC Special Situation Private Equity Fund (“STIC”, 20.2%) and the remainder by participants in our IPO (12.7%). In 2017, DDI acquired DoubleDown Interactive, LLC (“DDI-US”) DDI-US, We develop and publish digital gaming content on various mobile and web platforms through our multi-format interactive all-in-one Initial Public Offering On September 2, 2021, DoubleDown Interactive Co., Ltd. filed its initial public offering (the “Offering”) of 6,316,000 American Depositary Shares (the “ADSs”), each representing 0.05 common share, with par value of W Prior to this offering, there has been no public market for our common shares or ADSs. Our ADSs trade on the NASDAQ Stock Market (“NASDAQ”) under the symbol “DDI.” Basis of preparation and consolidation Our unaudited condensed consolidated financial statements include all adjustments of a normal, recurring nature necessary for the fair presentation of the results for the interim periods presented. The results for the interim period presented are not necessarily indicative of those for the full year. The condensed consolidated financial statements should be read in conjunction with our consolidated financial statements for the years ended December 31, 2021, 2020 and 2019. The condensed consolidated financial statements include the balances and accounts of DDI and our controlled subsidiaries. All significant inter-company transactions, balances and unrealized gains or losses have been eliminated. We view our operations and manage our business as one operating segment. Use of estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires our management to make estimates and assumptions that affect financial statements and accompanying notes. We regularly evaluate estimates and assumptions related to provisions for income taxes, revenue recognition, expense accruals, deferred income tax asset valuation allowances, valuation of goodwill and intangibles, and legal contingencies. We base our estimates and assumptions on current facts, historical experience, and various other factors that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results and outcomes may differ from management’s estimates and assumptions due to risks and uncertainties, including uncertainty in the current economic environment due to recent unrest in the eastern Europe region. Functional currency and translation of financial statements Our functional currency is the Korean Won (“KRW”) and the U.S. Dollar (“dollar,” “USD,” “US$,” or “$”) is the functional currency of our United States subsidiaries. The accompanying consolidated financial statements are presented in USD. The consolidated balance sheets have been translated at the exchange rates prevailing at each balance sheet date. The consolidated statement of comprehensive income and statement of cash flows have been translated using the weighted-average exchange rates prevailing during the periods of each statement. The equity capital is denominated in the functional currency, KRW, and is translated at historical exchange rates. All translation adjustments resulting from translating into the reporting currency are accumulated as a separate component of accumulated other comprehensive income in shareholders’ equity. Gains or losses resulting from foreign currency transactions are included in other income (expense). Intercompany monetary items denominated in foreign currencies are translated into the functional currency at the exchange rate at the reporting date with the gain or loss arising on translation recorded to other income (expense). Intercompany non-monetary Financial instruments and concentration of credit risk Financial instruments, which potentially expose us to concentrations of credit risk, consist primarily of cash and cash equivalents and accounts receivable. Accounts receivable are recorded and carried at the net invoiced amount, which is net of platform payment processing fees, unsecured, and represent amounts due to us based on contractual obligations where an executed contract exists. We do not require collateral and have not recognized an allowance as management estimates the net receivable is fully collectible. Apple, Inc. (“Apple”), Facebook, Inc. (“Facebook”), and Google, LLC (“Google”) represent significant distribution, marketing, and payment platforms for our games. A substantial portion of our revenue was generated from players who accessed our games through these platforms and a significant concentration of our accounts receivable balance is comprised of balances owed to us by these platforms. Revenue Concentration Three months ended June 30, Six Months ended June 30, 2022 2021 2022 2021 Apple 54.5 % 50.5 % 54.3 % 50.9 % Facebook 24.2 % 26.4 % 24.2 % 26.6 % Google 18.6 % 19.6 % 18.7 % 19.3 % The following table summarizes the percentage of revenues and accounts receivable generated via our platform providers in excess of 10% of our total revenues and total accounts receivable: Accounts Receivable concentration As of June 30, As of December 31, 2022 2021 Apple 56.0 % 55.6 % Facebook 22.6 % 23.7 % Google 17.7 % 17.5 % |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Note 2: Revenue from Contracts with Customers Our social and mobile apps operate on a free-to-play Once obtained, virtual currency (either free or purchased) cannot be redeemed for cash nor exchanged for anything other than gameplay within our apps. When virtual currency is played on any of our games, the game player could “win” and would be awarded additional virtual currency or could “lose” and lose the future use of that virtual currency. We have concluded that our virtual currency represents consumable goods, because the game player does not receive any additional benefit from the games and is not entitled to any additional rights once the virtual currency is substantially consumed. Control transfers when the virtual currency is consumed for gameplay. We recognize revenue from player purchases of virtual currency based on the consumption of this currency. We determined through a review of play behavior that game players generally do not purchase additional virtual currency until their existing virtual currency balances, regardless of source (e.g., bonus currency, gifted currency through social media channels, daily free chips, etc.), have been substantially consumed. Based on an analysis of customers’ historical play behavior, purchase behavior, and the amount of virtual currency outstanding, we are able to estimate the rate that virtual currency is consumed during gameplay. Accordingly, revenue is recognized using a user-based revenue model with the period between purchases representing the timing difference between virtual currency purchase and consumption. This timing difference is relatively short. We continuously gather and analyze detailed customer play behavior and assess this data in relation to our judgments used for revenue recognition. Disaggregation of revenue We believe disaggregation of our revenue based on platform and geographical location are appropriate categories that depict how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. The following table represents our disaggregation of revenue between mobile and web platforms (in thousands): Three months ended June 30, Six Months ended June 30, 2022 2021 2022 2021 Mobile $ 60,753 $ 67,317 $ 124,883 $ 137,321 Web 19,817 25,911 41,173 52,574 Total $ 80,570 $ 93,228 $ 166,056 $ 189,895 The following table presents our revenue disaggregated based on the geographical location of our players (in thousands): Three months ended June 30, Six Months ended June 30, 2022 2021 2022 2021 U.S. (1) $ 70,661 $ 80,432 $ 144,349 $ 164,094 International 9,909 12,796 21,707 25,801 Total $ 80,570 $ 93,228 $ 166,056 $ 189,895 (1) Geographic location is presented as being derived from the U.S. when data is not available Contract assets, contract liabilities and other disclosures Customer payments are based on the payment terms established in our contracts. Payments for purchase of virtual currency are required at time of purchase, are non-refundable non-cancellable fees for which revenue has not been recognized. For subscription revenue, the remaining portion of the daily ratable monthly subscription is recorded as a contract liability and the applicable platform fees as a contract asset. The following table summarized our opening and closing balances in contract assets and contract liabilities (in thousands): As of June 30, As of December 31, 2022 2021 Contract assets (1) $ 484 $ 674 Contract liabilities 1,612 2,246 (1) Contract assets are included within prepaid expenses and other assets in our consolidated balance sheet. |
Short-term investments
Short-term investments | 6 Months Ended |
Jun. 30, 2022 | |
Short-Term Investments [Abstract] | |
Short-term investments | Note 3: Short-term investments The Company holds investments in marketable securities with the intention of selling these investments within a relatively short period of time (3-6 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and intangible assets | Note 4: Goodwill and intangible assets There were no changes to the carrying amount of goodwill in the three months ended June 30, 2022.Changes in the carrying amount of intangible assets were as follows (in thousands): June 30, 2022 December 31, 2021 Useful life Gross Accum. Net Gross Accum. Net Trademarks indefinite $ 50,000 $ — $ 50,000 $ 50,000 $ — $ 50,000 Customer relationships 4 years 75,000 (75,000 ) — 75,000 (75,000 ) — Purchased technology 5 years 45,423 (45,423 ) — 45,423 (41,811 ) 3,612 Development costs 3 years 9,486 (9,486 ) — 9,486 (9,486 ) — Software 4 years 2,459 (2,403 ) 56 2,463 (2,396 ) 67 Total $ 182,368 $ (132,312 ) $ 50,056 $ 182,372 $ (128,693 ) $ 53,679 The following reflects amortization expense related to intangible assets included with depreciation and amortization: Three months ended June 30, Six months ended June 30, 2022 2021 2022 2021 Amortization Expense 1.4 million 5.8 million 3.6 million 13.2 million |
Debt
Debt | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Note 5: Debt 4.60% Senior Notes due to related party due 2024 The 4.60% Senior Notes due to related party, which collectively total KRW100 billion (US$77 million) at inception, accrue 4.60% interest quarterly on the outstanding principal amount until maturity. Interest and principal are due in full at maturity (May 27, 2024). As of June 30, As of December 31, 2022 2021 4.60% Senior Notes due to related party due 2024 $ 38,673 $ 42,176 Total debt $ 38,673 42,176 Less: Short-term debt — — Total Long-term debt $ 38,673 $ 42,176 |
Fair value measurements
Fair value measurements | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair value measurements | Note 6: Fair value measurements The carrying values of our accounts receivable, prepaid expenses and other current assets, accounts payable and accrued liabilities approximate their fair values due to the short-term nature of these instruments. Our cash equivalents (Level 1 estimate) were comprised of money market funds totaling $192.5 million and short-term investments (a Level 2 estimate) were comprised of short-term bonds totaling $91.5 million as of June 30, 2022. As of December 31, 2021, our cash and cash equivalents totaled $242.1 million and consisted of money market and Korean market government bonds. We rely on credit market data to track interest rates for other entities with similar risk profiles. As of June 30, 2022 and December 31, 2021, we believe the fair value of our senior notes (a Level 3 estimate) approximates carrying value due to the nature of the instruments and the lack of meaningful change to our credit profile. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 7: Income taxes We are subject to federal and state income taxes in Korea and the United States. We account for our provision for income taxes in accordance with ASC 740, Income Taxes, which requires an estimate of the annual effective tax rate for the full year to be applied to the interim period, taking into account year-to-date amounts Our effective tax rate varies from the statutory Korean income tax rate due to the effect of foreign rate differential, withholding taxes, state and local income taxes, foreign derived intangible income (FDII) deduction, research and development credits, and a valuation allowance on Korean deferred tax assets. Our effective tax rate could fluctuate significantly from quarter to quarter based on variations in the estimated and actual level of pre-tax income regarding non-deductible expenses The income tax benefit of $12.0 million for the three months ended June 30, 2022, reflects an effective tax rate of 26.1%, which is higher than the effective tax rate of 13.3% for the three months ended June 30, 2021. The increase in rate from 2021 to 2022 is primarily due to an increase in the state effective tax rate in 2022 and a discrete valuation allowance release on Korean tax attributes of $2.7 million in 2021. The income tax benefit of $6.0 million for six months ended June 30, 2022, reflects an effective tax rate of 27.8%, which is higher than the effective tax rate of 20.1% for the six months ended June 30, 2021. The increase in rate from 2021 to 2022 is primarily due to an increase in the state effective tax rate in 2022 and a discrete valuation allowance release on Korean tax attributes of $2.7 million in 2021. |
Net Income Per Share
Net Income Per Share | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Note 8: Net Income per share Basic net income per share is computed by dividing net income by the weighted-average number of common shares outstanding for the period, without consideration for potentially dilutive securities. Diluted net income per share is computed by dividing net income by the weighted-average number of common shares and dilutive common share equivalents outstanding for the period determined using the treasury-stock and if-converted methods. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
Leases | Note 9: Leases We are lessee for corporate office space in Seattle, Washington and Seoul, Korea. The lessor for our Seoul, Korea leases is our parent, DoubleU Games (see Note 11). Our leases have remaining terms of fifteen to twenty eight months. We do not have any finance leases. Our total variable and short-term lease payments are immaterial for all periods presented. The Seattle, Washington lease originated in July 2012 and consists of 49,375 square feet. The lease will expire in October 2024. In February 2019, we executed new subleases with our parent, DUG, for 21,218 square feet of office space in Gangnam-gu, Seoul, Supplemental balance sheet and cash flow information related to operating leases is as follows (in thousands): As of June 30, 2022 As of December 31, 2021 Operating lease right-of-use $ 6,138 $ 7,764 Accrued rent 870 934 Total operating lease right-of-use $ 5,268 $ 6,830 Short-term operating lease liabilities 3,127 3,076 Long-term operating lease liabilities 3,011 4,688 Total operating lease liabilities $ 6,138 $ 7,764 Supplemental cash flow information related to leases was as follows (in thousands): Six months ended Six months ended June 30, 2022 June 30, 2021 Cash paid for amounts included in the measurement of operating lease liabilities 1.6 million 1.7 million |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 6 Months Ended |
Jun. 30, 2022 | |
Statement of Other Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Income | Note 10: Accumulated other comprehensive income Changes in accumulated other comprehensive income (AOCI) by component for the three and six months ended June 30, 2022 and 2021 were as follows (in thousands): Three months ended June 30, 2021 Currency Translation Adjustments Defined Benefit Pension Plan Total Balance at April 1, 2021 $ 25,136 $ (1,047 ) $ 24,089 Foreign currency translation gain/(loss) (114 ) — (114 ) Actuarial gain/(loss), net of tax — 15 15 Balance as of June 30, 2021 $ 25,022 $ (1,032 ) $ 23,990 Three months ended June 30, 2022 Currency Translation Adjustments Defined Benefit Pension Plan Total Balance at April 1, 2022 $ 22,865 $ (1,804 ) $ 21,061 Foreign currency translation gain/(loss) (3,526 ) — (3,526 ) Actuarial gain/(loss), net of tax — 239 239 Balance as of June 30, 2022 $ 19,339 $ (1,565 ) $ 17,774 Six months ended June 30, 2021 Currency Translation Adjustments Defined Benefit Pension Plan Total Balance at January 1, 2021 $ 23,807 $ (992 ) $ 22,815 Foreign currency translation gain/(loss) 1,215 — 1,215 Actuarial gain/(loss), net of tax — (40 ) (40 ) Balance as of June 30, 2021 $ 25,022 $ (1,032 ) $ 23,990 Six months ended June 30, 2022 Currency Translation Adjustments Defined Benefit Pension Plan Total Balance at January 1, 2022 $ 24,311 $ (1,278 ) $ 23,033 Foreign currency translation gain/(loss) (4,972 ) — (4,972 ) Actuarial gain/(loss), net of tax — (287 ) (287 ) Balance as of June 30, 2022 $ 19,339 $ (1,565 ) $ 17,774 We do not tax effect foreign currency translation gain/(loss) because we have determined such gain/(loss) is permanently reinvested. |
Commitments and contingencies
Commitments and contingencies | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Note 11: Commitments and contingencies Legal contingencies On April 12, 2018, a class-action lawsuit was filed against DDI-US In August 2018, we filed a Motion to Compel Arbitration, which was denied and immediately appealed in December 2018. We were granted a Motion to Stay pending appeal in February 2019. In October 2019, a court date was issued and subsequently abated as the Ninth Circuit Appeals court hears the oral arguments and a resolution of appeal is determined in a similar case with one of our competitors. On January 29, 2020, the Ninth Circuit affirmed the District Court’s denial of arbitration, thereby denying our appeal to compel arbitration. The case is now in District Court. On June 17, 2020, we filed a motion in the United States District Court for the Western District of Washington, which, if granted, would certify certain questions of state law to the Washington State Supreme Court for interpretation in accordance with applicable state law. On August 11, 2020, the District Court denied DDI-US’s DDI-US DDI-US DDI-US co-defendant, DDI-US IGT tendered its defense of the lawsuit to Double Down and sought indemnity for any damages from the lawsuit, based on various agreements associated with IGT’s sale of Double Down. Double Down had previously tendered its defense to IGT and sought indemnity from it. The parties entered into a standstill or tolling agreement, which expired on September 1, 2021, and was extended by agreement until October 1, 2021. On December 20, 2021, IGT submitted a demand for mediation to Double Down. On June 16, June 24, and July 5, the parties or the plaintiffs moved for stays. The case is subject to significant uncertainties. In determining the likelihood of a loss and/or the measurement of any loss or range of loss, we evaluated (1) the facts and circumstances known to us, including information regarding the likelihood of a settlement and the outcome of discussions relating to indemnification by co-defendants, 450-20, $201.5 million associated with legal proceedings. The Company will continue to evaluate the appropriateness of the amount recorded as the litigation proceeds over time, potentially resulting in a material adjustment thereto. NEXRF brought suit alleging patent infringement of certain patents for gaming applications used by defendants. Davis Wright Tremaine LLP represents all three defendants. The defendants were served with the lawsuit on January 8, 2021. The defendants filed a motion to dismiss plaintiffs’ complaint on April 29, 2021, arguing that the asserted patents are not patent-eligible because they are drawn to an abstract idea. The defendants also filed a motion to stay discovery pending resolution of the motion to dismiss. During the pendency of the defendants’ motions, however, a federal court in Nevada issued an order invalidating the asserted patents on the basis of patent ineligibility. NEXRF appealed this ruling to the Federal Circuit, and the Federal Circuit affirmed the Nevada court’s invalidity finding. Due to the invalidation of the patents-in-suit, Publishing and license agreements DoubleU Games We entered into the DoubleU Games License Agreement on March 7, 2018, and it was subsequently amended on July 1, 2019 and November 27, 2019. Pursuant to the DoubleU Games License Agreement, DoubleU Games grants us an exclusive license to develop and distribute certain DoubleU Games social casino game titles and sequels thereto in the social online game field of use. We are obligated to pay a royalty license fee to DoubleU Games in connection with these rights, with certain customary terms and conditions. The agreement remains in effect until either DUG no longer holds an interest, directly or indirectly, in DDI, or DDI no longer holds an interest, directly or indirectly, in DDI-US. International Gaming Technologies (“IGT”) In 2017, we entered into a Game Development, Distribution, and Services agreement with IGT, and it was subsequently amended on January 1, 2019. Under the terms of the agreement, IGT will deliver game assets so that we can port (a process of converting the assets into functioning slot games by platform) the technology for inclusion in our gaming apps. The agreement includes game assets that are used to create new games. Under the agreement, we pay IGT a royalty rate of 7.5% of revenue for their proprietary assets and 15% of revenue for third-party game asset types. We also pay a monthly fee for porting. The initial term of the agreement is ten (10) years with up to two additional five-year periods. Costs incurred in connection with this agreement for the three months ended June 30, 2022 and 2021 totaled $2.3 million and $3.0 million, respectively, and are recognized as a component of cost of revenue, and six months ended June 30, 2022 and 2021 totaled $5.0 million and $6.0 million, respectively, and are recognized as a component of cost of revenue |
Related party transactions
Related party transactions | 6 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
Related party transactions | Note 12: Related party transactions Our related party transactions comprise of expenses for use of intellectual property, borrowings, and sublease previously described. We may also incur other expenses with related parties in the ordinary course of business, which are included in the consolidated financial statements. The following is a summary of expenses charged by our parent, DoubleU Games (in thousands): Three months ended June 30, Six months ended June 30, Statement of 2022 2021 2022 2021 Income and Comprehensive Income Line Item Royalty expense $ 852 $ 1,028 $ 1,690 $ 2,162 Cost of revenue Interest expense 454 513 925 1,022 Interest expense Rent expense 320 356 655 712 General and administrative expense Other expense 60 64 114 99 General and administrative expense Amounts due to our parent, DUG, are as follows (in thousands): At June 30, At December 31, Statement of Consolidated 2022 2021 Balance Sheet Line Item 4.6% Senior Notes with related party $ 38,673 $ 42,176 Long-Term borrowing with related party Royalties and other expenses 467 511 A/P and accrued expenses Short-term lease liability 1,290 1,309 Short-term operating lease liabilities Accrued interest on 4.6% Senior Notes with related party 6,800 6,454 Other non-current Long-term lease liability 338 1,078 Long-term lease liabilities |
Defined Benefit Pension Plan
Defined Benefit Pension Plan | 6 Months Ended |
Jun. 30, 2022 | |
Defined Benefit Pension Plan [Abstract] | |
Defined benefit pension plan | Note 13: Defined benefit pension plan We operate a defined benefit pension plan under employment regulations in Korea. The plan services the employees located in Seoul and is a final waged-based pension plan, which provides a specified amount of pension benefit based on length of service. The total benefit obligation of $3.7 million and $3.4 million was included in other non-current |
Description of Business (Polici
Description of Business (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of preparation and consolidation | Basis of preparation and consolidation Our unaudited condensed consolidated financial statements include all adjustments of a normal, recurring nature necessary for the fair presentation of the results for the interim periods presented. The results for the interim period presented are not necessarily indicative of those for the full year. The condensed consolidated financial statements should be read in conjunction with our consolidated financial statements for the years ended December 31, 2021, 2020 and 2019. The condensed consolidated financial statements include the balances and accounts of DDI and our controlled subsidiaries. All significant inter-company transactions, balances and unrealized gains or losses have been eliminated. We view our operations and manage our business as one operating segment. |
Use of estimates | Use of estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires our management to make estimates and assumptions that affect financial statements and accompanying notes. We regularly evaluate estimates and assumptions related to provisions for income taxes, revenue recognition, expense accruals, deferred income tax asset valuation allowances, valuation of goodwill and intangibles, and legal contingencies. We base our estimates and assumptions on current facts, historical experience, and various other factors that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results and outcomes may differ from management’s estimates and assumptions due to risks and uncertainties, including uncertainty in the current economic environment due to recent unrest in the eastern Europe region. |
Functional currency and translation of financial statements | Functional currency and translation of financial statements Our functional currency is the Korean Won (“KRW”) and the U.S. Dollar (“dollar,” “USD,” “US$,” or “$”) is the functional currency of our United States subsidiaries. The accompanying consolidated financial statements are presented in USD. The consolidated balance sheets have been translated at the exchange rates prevailing at each balance sheet date. The consolidated statement of comprehensive income and statement of cash flows have been translated using the weighted-average exchange rates prevailing during the periods of each statement. The equity capital is denominated in the functional currency, KRW, and is translated at historical exchange rates. All translation adjustments resulting from translating into the reporting currency are accumulated as a separate component of accumulated other comprehensive income in shareholders’ equity. Gains or losses resulting from foreign currency transactions are included in other income (expense). Intercompany monetary items denominated in foreign currencies are translated into the functional currency at the exchange rate at the reporting date with the gain or loss arising on translation recorded to other income (expense). Intercompany non-monetary |
Financial instruments and concentration of credit risk | Financial instruments and concentration of credit risk Financial instruments, which potentially expose us to concentrations of credit risk, consist primarily of cash and cash equivalents and accounts receivable. Accounts receivable are recorded and carried at the net invoiced amount, which is net of platform payment processing fees, unsecured, and represent amounts due to us based on contractual obligations where an executed contract exists. We do not require collateral and have not recognized an allowance as management estimates the net receivable is fully collectible. Apple, Inc. (“Apple”), Facebook, Inc. (“Facebook”), and Google, LLC (“Google”) represent significant distribution, marketing, and payment platforms for our games. A substantial portion of our revenue was generated from players who accessed our games through these platforms and a significant concentration of our accounts receivable balance is comprised of balances owed to us by these platforms. Revenue Concentration Three months ended June 30, Six Months ended June 30, 2022 2021 2022 2021 Apple 54.5 % 50.5 % 54.3 % 50.9 % Facebook 24.2 % 26.4 % 24.2 % 26.6 % Google 18.6 % 19.6 % 18.7 % 19.3 % The following table summarizes the percentage of revenues and accounts receivable generated via our platform providers in excess of 10% of our total revenues and total accounts receivable: Accounts Receivable concentration As of June 30, As of December 31, 2022 2021 Apple 56.0 % 55.6 % Facebook 22.6 % 23.7 % Google 17.7 % 17.5 % |
Description of Business (Tables
Description of Business (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Summary of percentage of revenues | The following table summarizes the percentage of revenues and accounts receivable generated via our platform providers in excess of 10% of our total revenues and total accounts receivable: Revenue Concentration Three months ended June 30, Six Months ended June 30, 2022 2021 2022 2021 Apple 54.5 % 50.5 % 54.3 % 50.9 % Facebook 24.2 % 26.4 % 24.2 % 26.6 % Google 18.6 % 19.6 % 18.7 % 19.3 % Accounts Receivable concentration As of June 30, As of December 31, 2022 2021 Apple 56.0 % 55.6 % Facebook 22.6 % 23.7 % Google 17.7 % 17.5 % |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Disaggregation of Revenue [Abstract] | |
Summary of disaggregation of revenue | The following table represents our disaggregation of revenue between mobile and web platforms (in thousands): Three months ended June 30, Six Months ended June 30, 2022 2021 2022 2021 Mobile $ 60,753 $ 67,317 $ 124,883 $ 137,321 Web 19,817 25,911 41,173 52,574 Total $ 80,570 $ 93,228 $ 166,056 $ 189,895 The following table presents our revenue disaggregated based on the geographical location of our players (in thousands): Three months ended June 30, Six Months ended June 30, 2022 2021 2022 2021 U.S. (1) $ 70,661 $ 80,432 $ 144,349 $ 164,094 International 9,909 12,796 21,707 25,801 Total $ 80,570 $ 93,228 $ 166,056 $ 189,895 (1) Geographic location is presented as being derived from the U.S. when data is not available |
Summary of contract assets and contract liabilities | The following table summarized our opening and closing balances in contract assets and contract liabilities (in thousands): As of June 30, As of December 31, 2022 2021 Contract assets (1) $ 484 $ 674 Contract liabilities 1,612 2,246 (1) Contract assets are included within prepaid expenses and other assets in our consolidated balance sheet. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of intangible assets | There were no changes to the carrying amount of goodwill in the three months ended June 30, 2022.Changes in the carrying amount of intangible assets were as follows (in thousands): June 30, 2022 December 31, 2021 Useful life Gross Accum. Net Gross Accum. Net Trademarks indefinite $ 50,000 $ — $ 50,000 $ 50,000 $ — $ 50,000 Customer relationships 4 years 75,000 (75,000 ) — 75,000 (75,000 ) — Purchased technology 5 years 45,423 (45,423 ) — 45,423 (41,811 ) 3,612 Development costs 3 years 9,486 (9,486 ) — 9,486 (9,486 ) — Software 4 years 2,459 (2,403 ) 56 2,463 (2,396 ) 67 Total $ 182,368 $ (132,312 ) $ 50,056 $ 182,372 $ (128,693 ) $ 53,679 |
Summary of reflects amortization expenses | The following reflects amortization expense related to intangible assets included with depreciation and amortization: Three months ended June 30, Six months ended June 30, 2022 2021 2022 2021 Amortization Expense 1.4 million 5.8 million 3.6 million 13.2 million |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Summary of long-term debt instruments | As of June 30, As of December 31, 2022 2021 4.60% Senior Notes due to related party due 2024 $ 38,673 $ 42,176 Total debt $ 38,673 42,176 Less: Short-term debt — — Total Long-term debt $ 38,673 $ 42,176 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
Summary of Cash Flow Information Related to Operating Leases | Supplemental balance sheet and cash flow information related to operating leases is as follows (in thousands): As of June 30, 2022 As of December 31, 2021 Operating lease right-of-use $ 6,138 $ 7,764 Accrued rent 870 934 Total operating lease right-of-use $ 5,268 $ 6,830 Short-term operating lease liabilities 3,127 3,076 Long-term operating lease liabilities 3,011 4,688 Total operating lease liabilities $ 6,138 $ 7,764 Supplemental cash flow information related to leases was as follows (in thousands): Six months ended Six months ended June 30, 2022 June 30, 2021 Cash paid for amounts included in the measurement of operating lease liabilities 1.6 million 1.7 million |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Statement of Other Comprehensive Income [Abstract] | |
Summary of Accumulated Other Comprehensive Income (Loss) | Changes in accumulated other comprehensive income (AOCI) by component for the three and six months ended June 30, 2022 and 2021 were as follows (in thousands): Three months ended June 30, 2021 Currency Translation Adjustments Defined Benefit Pension Plan Total Balance at April 1, 2021 $ 25,136 $ (1,047 ) $ 24,089 Foreign currency translation gain/(loss) (114 ) — (114 ) Actuarial gain/(loss), net of tax — 15 15 Balance as of June 30, 2021 $ 25,022 $ (1,032 ) $ 23,990 Three months ended June 30, 2022 Currency Translation Adjustments Defined Benefit Pension Plan Total Balance at April 1, 2022 $ 22,865 $ (1,804 ) $ 21,061 Foreign currency translation gain/(loss) (3,526 ) — (3,526 ) Actuarial gain/(loss), net of tax — 239 239 Balance as of June 30, 2022 $ 19,339 $ (1,565 ) $ 17,774 Six months ended June 30, 2021 Currency Translation Adjustments Defined Benefit Pension Plan Total Balance at January 1, 2021 $ 23,807 $ (992 ) $ 22,815 Foreign currency translation gain/(loss) 1,215 — 1,215 Actuarial gain/(loss), net of tax — (40 ) (40 ) Balance as of June 30, 2021 $ 25,022 $ (1,032 ) $ 23,990 Six months ended June 30, 2022 Currency Translation Adjustments Defined Benefit Pension Plan Total Balance at January 1, 2022 $ 24,311 $ (1,278 ) $ 23,033 Foreign currency translation gain/(loss) (4,972 ) — (4,972 ) Actuarial gain/(loss), net of tax — (287 ) (287 ) Balance as of June 30, 2022 $ 19,339 $ (1,565 ) $ 17,774 |
Related party transactions (Tab
Related party transactions (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
Summary of Expenses Charged by Our Parent | The following is a summary of expenses charged by our parent, DoubleU Games (in thousands): Three months ended June 30, Six months ended June 30, Statement of 2022 2021 2022 2021 Income and Comprehensive Income Line Item Royalty expense $ 852 $ 1,028 $ 1,690 $ 2,162 Cost of revenue Interest expense 454 513 925 1,022 Interest expense Rent expense 320 356 655 712 General and administrative expense Other expense 60 64 114 99 General and administrative expense |
Summary of Amounts Due to our Parent | Amounts due to our parent, DUG, are as follows (in thousands): At June 30, At December 31, Statement of Consolidated 2022 2021 Balance Sheet Line Item 4.6% Senior Notes with related party $ 38,673 $ 42,176 Long-Term borrowing with related party Royalties and other expenses 467 511 A/P and accrued expenses Short-term lease liability 1,290 1,309 Short-term operating lease liabilities Accrued interest on 4.6% Senior Notes with related party 6,800 6,454 Other non-current Long-term lease liability 338 1,078 Long-term lease liabilities |
Description of Business - Addit
Description of Business - Additional Information (Details) $ / shares in Units, $ in Millions | 12 Months Ended | |||||
Sep. 02, 2021 USD ($) | Dec. 31, 2017 USD ($) | Jun. 30, 2022 shares | Dec. 31, 2021 shares | Sep. 02, 2021 KRW (₩) shares | Sep. 02, 2021 $ / shares | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||
Minority interest ownership percentage | 32.90% | |||||
Business combination consideration transferred | $ | $ 825 | |||||
Common stock, shares Issued | 2,477,672 | 2,477,672 | ||||
Sale Of American Depositary Shares | 5,263,000 | |||||
American Depositary Shares [Member] | ||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||
Entity listing depository receipt ratio | 0.05 | |||||
Common Stock, Value, Outstanding | ₩ | ₩ 10,000 | |||||
IPO [Member] | ||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||
Minority interest ownership percentage | 12.70% | |||||
Proceeds from issuance initial public offering | $ | $ 86 | |||||
Payments for underwriting expense | $ | $ 8.7 | |||||
IPO [Member] | American Depositary Shares [Member] | ||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||
Common stock, shares Issued | 6,316,000 | |||||
Sale of Stock, Price Per Share | $ / shares | $ 18 | |||||
DoubleU Games Co., Ltd.[Member] | ||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||
Equity interest percentage | 67.10% | |||||
Stic [Member] | ||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||
Minority interest ownership percentage | 20.20% | |||||
Sale Of American Depositary Shares | 1,053,000 |
Description of Business - Summa
Description of Business - Summary of Percentage of Revenues (Details) - Customer Concentration Risk [Member] | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Revenue Concentration | Apple | |||||
Revenue, Major Customer [Line Items] | |||||
Concentration Risk, Percentage | 54.50% | 50.50% | 54.30% | 50.90% | |
Revenue Concentration | Facebook | |||||
Revenue, Major Customer [Line Items] | |||||
Concentration Risk, Percentage | 24.20% | 26.40% | 24.20% | 26.60% | |
Revenue Concentration | Google | |||||
Revenue, Major Customer [Line Items] | |||||
Concentration Risk, Percentage | 18.60% | 19.60% | 18.70% | 19.30% | |
Account Receivable Concentration | Apple | |||||
Revenue, Major Customer [Line Items] | |||||
Concentration Risk, Percentage | 56% | 55.60% | |||
Account Receivable Concentration | Facebook | |||||
Revenue, Major Customer [Line Items] | |||||
Concentration Risk, Percentage | 22.60% | 23.70% | |||
Account Receivable Concentration | Google | |||||
Revenue, Major Customer [Line Items] | |||||
Concentration Risk, Percentage | 17.70% | 17.50% |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Summary of Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | ||
Disaggregation of Revenue [Line Items] | |||||
Revenue | $ 80,570 | $ 93,228 | $ 166,056 | $ 189,895 | |
US | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | [1] | 70,661 | 80,432 | 144,349 | 164,094 |
International | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 9,909 | 12,796 | 21,707 | 25,801 | |
Mobile | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 60,753 | 67,317 | 124,883 | 137,321 | |
Web | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | $ 19,817 | $ 25,911 | $ 41,173 | $ 52,574 | |
[1]Geographic location is presented as being derived from the U.S. when data is not available |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Summary of Contract Assets and Contract Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | |
Contract With Customer Asset And Liability [Line Items] | |||
Contract liabilities | $ 1,612 | $ 2,246 | |
Prepaid expenses and other assets | |||
Contract With Customer Asset And Liability [Line Items] | |||
Contract assets | [1] | $ 484 | $ 674 |
[1]Contract assets are included within prepaid expenses and other assets in our consolidated balance sheet. |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Summary of Intangible Assets (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross amount | $ 182,368 | $ 182,372 |
Accumulated Amortization | (132,312) | (128,693) |
Net Amount | $ 50,056 | 53,679 |
Trademarks [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Useful life | indefinite | |
Gross amount | $ 50,000 | 50,000 |
Net Amount | $ 50,000 | 50,000 |
Customer relationships [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Useful life | 4 years | |
Gross amount | $ 75,000 | 75,000 |
Accumulated Amortization | (75,000) | (75,000) |
Net Amount | $ 0 | 0 |
Purchased technology [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Useful life | 5 years | |
Gross amount | $ 45,423 | 45,423 |
Accumulated Amortization | (45,423) | (41,811) |
Net Amount | $ 0 | 3,612 |
Development costs [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Useful life | 3 years | |
Gross amount | $ 9,486 | 9,486 |
Accumulated Amortization | (9,486) | (9,486) |
Net Amount | $ 0 | 0 |
Software [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Useful life | 4 years | |
Gross amount | $ 2,459 | 2,463 |
Accumulated Amortization | (2,403) | (2,396) |
Net Amount | $ 56 | $ 67 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Summary of Reflects Amortization Expenses (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | ||||
Amortization expense | $ 1.4 | $ 5.8 | $ 3.6 | $ 13.2 |
Debt - Summary of Debt (Details
Debt - Summary of Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 38,673 | $ 42,176 |
Less: Short-term debt | 0 | |
Total Long-term debt | 38,673 | 42,176 |
4.6% senior notes due to related parties in 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 38,673 | $ 42,176 |
Debt - Additional Information (
Debt - Additional Information (Details) - 4.6% senior notes due to related parties in 2024 [Member] $ in Millions, ₩ in Billions | 6 Months Ended | ||
Jun. 30, 2022 | Jan. 01, 2022 KRW (₩) | Jan. 01, 2022 USD ($) | |
Debt Instrument [Line Items] | |||
Debt instrument face amount | ₩ 100 | $ 77 | |
Related party transaction rate of interest | 4.60% | ||
Long term debt instrument maturity date | May 27, 2024 | May 27, 2024 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Short-term bonds | $ 91,526 | |
Money market funds [Member] | Fair value, inputs, level 1 [Member] | ||
Cash Equivalents, at Carrying Value | 192,500 | |
Money market funds [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Short-term bonds | $ 91,500 | |
Money Market And Korean Market Government Bonds [Member] | ||
Cash Equivalents, at Carrying Value | $ 242,100 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income tax (expense) benefit | $ 12,022 | $ (2,837) | $ 6,000 | $ (9,528) |
Effective income tax rate reconciliation percentage | 26.10% | 27.80% | ||
Effective income tax rate reconciliation at federal statutory income tax rate | 13.30% | 20.10% | ||
Deferred tax assets valuation allowance | $ 2,700 | $ 2,700 |
Net Income per share - Addition
Net Income per share - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Earnings Per Share [Abstract] | |
Dilutive securities | $ 0 |
Leases - Additional Information
Leases - Additional Information (Details) - ft² ft² in Thousands | 6 Months Ended | ||
Oct. 01, 2019 | Jun. 30, 2022 | Jul. 01, 2012 | |
Seattle [Member] | |||
Area of Land | 49,375 | ||
Lessee Operating Lease Expired Term | 2024-10 | ||
Gangnamgu [Member] | |||
Area of Land | 21,218 | ||
Lessee Operating Sub Lease Expired Term | 2023-09 |
Leases - Summary of Cash Flow I
Leases - Summary of Cash Flow Information Related to Operating Leases (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Leases [Abstract] | |||
Operating lease right-of-use assets | $ 6,138 | $ 7,764 | |
Accrued rent | 870 | 934 | |
Total operating lease right-of-use asset, net | 5,268 | 6,830 | |
Short-term operating lease liabilities | 3,127 | 3,076 | |
Long-term operating lease liabilities | 3,011 | 4,688 | |
Total operating lease liabilities | 6,138 | $ 7,764 | |
Cash paid for amounts included in the measurement of operating lease liabilities | $ 1,600 | $ 1,700 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income - Summary of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | $ 21,061 | $ 24,089 | $ 23,033 | $ 22,815 |
Foreign currency translation gain/(loss) | (3,526) | (114) | (4,972) | 1,215 |
Actuarial gain/(loss), net of tax | 239 | 15 | (287) | (40) |
Ending balance | 17,774 | 23,990 | 17,774 | 23,990 |
Currency Translation Adjustments [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | 22,865 | 25,136 | 24,311 | 23,807 |
Foreign currency translation gain/(loss) | (3,526) | (114) | (4,972) | 1,215 |
Ending balance | 19,339 | 25,022 | 19,339 | 25,022 |
Defined Benefit Pension Plan [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (1,804) | (1,047) | (1,278) | (992) |
Actuarial gain/(loss), net of tax | 239 | 15 | (287) | (40) |
Ending balance | $ (1,565) | $ (1,032) | $ (1,565) | $ (1,032) |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) titles | Jun. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | |
Accrual loss contingency | $ 3.5 | ||||
General and Administrative Expense [Member] | |||||
Contingency expenses | $ 71.5 | ||||
International Gaming Technologies [Member] | |||||
Long-term purchase commitment, period | 10 years | ||||
Cost of revenue | $ 2.3 | $ 3 | $ 5 | $ 6 | |
DoubleU Games License Agreement [Member] | |||||
Number of titled games | titles | 57 | ||||
Maximum [Member] | |||||
Reasonably possible loss contingency | $ 201.5 | $ 201.5 | |||
Maximum [Member] | International Gaming Technologies [Member] | |||||
Percentage of royalty on revenue | 15% | 15% | |||
Minimum [Member] | |||||
Reasonably possible loss contingency | $ 75 | $ 75 | |||
Minimum [Member] | International Gaming Technologies [Member] | |||||
Percentage of royalty on revenue | 7.50% | 7.50% |
Related Party Transactions - Su
Related Party Transactions - Summary of Expenses Charged by Our Parent (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Related Party Transaction [Line Items] | ||||
Interest expense | $ 454 | $ 512 | $ 925 | $ 1,021 |
Cost of sales [Member] | ||||
Related Party Transaction [Line Items] | ||||
Royalty expense | 852 | 1,028 | 1,690 | 2,162 |
Interest expense [Member] | ||||
Related Party Transaction [Line Items] | ||||
Interest expense | 454 | 513 | 925 | 1,022 |
General and administrative expense [Member] | ||||
Related Party Transaction [Line Items] | ||||
Rent expense | 320 | 356 | 655 | 712 |
Other expenses | $ 60 | $ 64 | $ 114 | $ 99 |
Related Party Transactions - _2
Related Party Transactions - Summary of Amounts Due to our Parent (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Schedule of related Party transactions due to our parent [Line Items] | ||
Short-term lease liability | $ 3,127 | $ 3,076 |
Long-term lease liability | 3,011 | 4,688 |
Long-Term borrowing with related party [Member] | ||
Schedule of related Party transactions due to our parent [Line Items] | ||
4.6% Senior Notes with related party | 38,673 | 42,176 |
A/P and accrued expenses [Member] | ||
Schedule of related Party transactions due to our parent [Line Items] | ||
Royalties and other expenses | 467 | 511 |
Short-term operating lease liabilities [Member] | ||
Schedule of related Party transactions due to our parent [Line Items] | ||
Short-term lease liability | 1,290 | 1,309 |
Other non-current liabilities [Member] | ||
Schedule of related Party transactions due to our parent [Line Items] | ||
Accrued interest on 4.6% Senior Notes with related party | 6,800 | 6,454 |
Long-term lease liabilities [Member] | ||
Schedule of related Party transactions due to our parent [Line Items] | ||
Long-term lease liability | $ 338 | $ 1,078 |
Defined Benefit Pension Plan -
Defined Benefit Pension Plan - Additional Information (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Defined Benefit Pension Plan [Abstract] | ||
Defined Benefit Plan, Funded (Unfunded) Status of Plan | $ 3.7 | $ 3.4 |