Cover Page
Cover Page | 12 Months Ended | 60 Months Ended |
Dec. 31, 2023 shares | Dec. 31, 2023 shares | |
Document Information [Line Items] | ||
Document Type | 20-F | |
Amendment Flag | false | |
Document Period End Date | Dec. 31, 2023 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | FY | |
Entity Registrant Name | DoubleDown Interactive Co., Ltd. | |
Entity Central Index Key | 0001799567 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | No | |
Entity Filer Category | Non-accelerated Filer | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 2,477,672 | 2,477,672 |
Entity Voluntary Filers | No | |
Entity Interactive Data Current | Yes | |
Entity Address, Address Line One | 13F, Gangnam Finance Center | |
Entity Address, Address Line Two | 152, Teheran-ro Gangnam-gu | |
Entity Address, City or Town | Seoul | |
Entity Incorporation, State or Country Code | M5 | |
Entity Address, Postal Zip Code | 06236 | |
Document Annual Report | true | |
Document Transition Report | false | |
Document Shell Company Report | false | |
Document Registration Statement | false | |
Document Accounting Standard | U.S. GAAP | |
Entity File Number | 001-39349 | |
ICFR Auditor Attestation Flag | false | |
Entity Current Reporting Status | Yes | |
Auditor Name | Samil PricewaterhouseCoopers | Ernst & Young LLP |
Auditor Firm ID | 1103 | 42 |
Auditor Location | Seoul, Korea | Seattle, Washington |
Entity Address, Country | KR | |
Document Financial Statement Error Correction [Flag] | false | |
Business Contact [Member] | ||
Document Information [Line Items] | ||
Contact Personnel Name | Joseph A. Sigrist | |
Entity Address, Address Line One | 605 5th Avenue, Suite 300 | |
Entity Address, City or Town | Seattle | |
Entity Address, Postal Zip Code | 98104 | |
Contact Personnel Fax Number | +1-206-408-1545 | |
Entity Address, State or Province | WA | |
American Depositary Shares [Member] | ||
Document Information [Line Items] | ||
Title of 12(b) Security | American Depositary Shares | |
Trading Symbol | DDI | |
Security Exchange Name | NASDAQ | |
Common Shares [Member] | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Common Shares, par value | |
Security Exchange Name | NASDAQ | |
No Trading Symbol Flag | true |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Income Statement [Abstract] | ||||
Revenue | $ 308,864 | $ 321,027 | $ 363,205 | |
Operating expenses: | ||||
Cost of revenue | [1],[2] | 99,069 | 109,305 | 126,612 |
Sales and marketing | [1] | 49,645 | 71,911 | 78,821 |
Research and development | [1] | 19,131 | 18,182 | 18,490 |
General and administrative | [1],[3] | 22,100 | 20,058 | 19,131 |
Loss contingency | [1] | 0 | 141,750 | 3,500 |
Impairment of goodwill and intangibles | [1] | 0 | 269,893 | 0 |
Depreciation and amortization | 728 | 3,801 | 17,918 | |
Total operating expenses | 190,673 | 634,900 | 264,472 | |
Operating income (loss) | 118,191 | (313,873) | 98,733 | |
Other income (expense): | ||||
Interest expense | [4] | (1,798) | (1,831) | (2,011) |
Interest income | 13,677 | 4,993 | 208 | |
Gain on foreign currency transactions | 4,796 | 6,994 | 1,110 | |
Gain (loss) on foreign currency remeasurement, net | (3,606) | (1,179) | 1,920 | |
Gain (loss) on short-term investments | (82) | (152) | 0 | |
Other, net | (33) | (120) | 654 | |
Total other income (expense), net | 12,954 | 8,705 | 1,881 | |
Income (loss) before income tax | 131,145 | (305,168) | 100,614 | |
Income tax (expense) benefit | (30,217) | 71,190 | (22,506) | |
Net income (loss) | 100,928 | (233,978) | 78,108 | |
Less: Net income (loss) attributable to noncontrolling interests | 43 | 0 | 0 | |
Net income (loss) attributable to DoubleDown Interactive Co., Ltd. | 100,885 | (233,978) | 78,108 | |
Other comprehensive income (expense): | ||||
Pension adjustments, net of tax | (597) | (154) | (286) | |
Gain (loss) on foreign currency translation | 1,219 | (3,519) | 504 | |
Comprehensive income (loss) | $ 101,507 | $ (237,651) | $ 78,326 | |
Earnings per share: | ||||
Basic | $ 40.72 | $ (94.43) | $ 33.91 | |
Diluted | $ 40.72 | $ (94.43) | $ 33.91 | |
Weighted average shares outstanding: | ||||
Basic | 2,477,672 | 2,477,672 | 2,303,200 | |
Diluted | 2,477,672 | 2,477,672 | 2,303,200 | |
[1]Excluding depreciation and amortization.[2]Includes related party royalty expense of $2,565, $3,374, and $4,335 for the years ended December 31, 2023, 2022 and 2021, respectively (see Note 13).[3]Includes related party rent and general and administrative expense of $2,904, $1,476, and $1,603 for the years ended December 31, 2023, 2022 and 2021, respectively (see Note 13).[4]Includes related party interest expense of $1,762, $1,780, and $2,010 for the years ended December 31, 2023, 2022 and 2021, respectively (see Note 13). |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Interest expense related party | [1] | $ 1,798 | $ 1,831 | $ 2,011 |
Cost of sales [Member] | ||||
Royalty expense | 2,565 | 3,374 | 4,335 | |
Related Party [Member] | ||||
Interest expense related party | 1,762 | 1,780 | 2,010 | |
Related Party [Member] | Cost of sales [Member] | ||||
Royalty expense | 2,565 | 3,374 | 4,335 | |
Related Party [Member] | General and administrative expense [Member] | ||||
Rental and general and administrative expenses | $ 2,904 | $ 1,476 | $ 1,603 | |
[1]Includes related party interest expense of $1,762, $1,780, and $2,010 for the years ended December 31, 2023, 2022 and 2021, respectively (see Note 13). |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | |
Current assets: | |||
Cash and cash equivalents | $ 206,911 | $ 217,352 | |
Short-term investments | 67,756 | 67,891 | |
Accounts receivable, net | 32,517 | 21,198 | |
Prepaid expenses, and other assets | 8,570 | 6,441 | |
Total current assets | 315,754 | 312,882 | |
Property and equipment, net | 444 | 436 | |
Operating lease right-of-use assets, net | 7,130 | 3,858 | |
Intangible assets, net | 51,571 | 35,051 | |
Goodwill | 396,704 | 379,072 | |
Deferred tax asset | 28,934 | 59,290 | |
Other non-current assets | 2,807 | 1,463 | |
Total assets | 803,344 | 792,052 | |
Current liabilities: | |||
Accounts payable and accrued expenses | [1] | 13,293 | 13,830 |
Short-term operating lease liabilities | [2] | 3,157 | 3,050 |
Income taxes payable | 112 | 0 | |
Contract liabilities | 2,520 | 2,426 | |
Loss Contingency | 0 | 95,250 | |
Current portion of borrowing with related party | [3] | 38,778 | 0 |
Other current liabilities | [4] | 10,645 | 1,926 |
Total current liabilities | 68,505 | 116,482 | |
Long-term borrowings with related party | [5] | 0 | 39,454 |
Long-term operating lease liabilities | [6] | 4,420 | 1,625 |
Deferred tax liabilities, net | 848 | 0 | |
Loss Contingency | 0 | 0 | |
Other non-current liabilities | [7] | 1,681 | 8,265 |
Total liabilities | 75,454 | 165,826 | |
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 | 359,280 | 359,280 | |
Accumulated other comprehensive income | 19,982 | 19,360 | |
Retained earnings | 327,273 | 226,388 | |
Total shareholders' equity attributable to shareowners of DDI Co. Ltd. | 727,733 | 626,226 | |
Equity attributable to noncontrolling interests | 157 | 0 | |
Total equity | 727,890 | 626,226 | |
Total liabilities and shareholders' equity | $ 803,344 | $ 792,052 | |
[1]Includes related party royalty and other payables of $1,618 and $315 at December 31, 2023 and 2022, respectively (see Note 13).[2]Includes related party operating lease liability of $1,298 and $1,066 at December 31, 2023 and 2022, respectively (see Note 13).[3]Includes related party notes payable of $38,778 and $0 at December 31, 2023 and 2022, respectively (see Note 13).[4]Includes related party interest payable of $9,501 and $0 at December 31, 2023 and 2022, respectively (see Note 13).[5]Includes related party notes payable of $0 and $39,454 at December 31, 2023 and 2022, respectively (see Note 13).[6]Includes related party operating lease liability of $4,414 and $0 at December 31, 2023 and 2022, respectively (see Note 13).[7]Includes related party interest payable of $0 and $7,852 at December 31, 2023 and 2022, respectively (see Note 13). |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) $ in Thousands | Dec. 31, 2023 USD ($) shares | Dec. 31, 2023 ₩ / shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2022 ₩ / shares | |
Common Stock, Par or Stated Value Per Share | ₩ / shares | ₩ 10,000 | ₩ 10,000 | |||
Common Stock, Shares Authorized | shares | 200,000,000 | 200,000,000 | |||
Common Stock, Shares, Issued | shares | 2,477,672 | 2,477,672 | |||
Common Stock, Shares, Outstanding | shares | 2,477,672 | 2,477,672 | |||
Operating lease liability current | [1] | $ 3,157 | $ 3,050 | ||
Current portion of borrowing with related party | [2] | 38,778 | 0 | ||
Long-term borrowings with related party | [3] | 0 | 39,454 | ||
Operating lease liability non current | [4] | 4,420 | 1,625 | ||
Related Party [Member] | |||||
Accrued royalties current and non current | 1,618 | 315 | |||
Operating lease liability current | 1,298 | 1,066 | |||
Current portion of borrowing with related party | 38,778 | 0 | |||
Long-term borrowings with related party | 0 | 39,454 | |||
Operating lease liability non current | 4,414 | 0 | |||
Related Party [Member] | Other current liabilities [Member] | |||||
Interest payable current | 9,501 | 0 | |||
Related Party [Member] | Other non-current liabilities [Member] | |||||
Interest payable non current | $ 0 | $ 7,852 | |||
[1]Includes related party operating lease liability of $1,298 and $1,066 at December 31, 2023 and 2022, respectively (see Note 13).[2]Includes related party notes payable of $38,778 and $0 at December 31, 2023 and 2022, respectively (see Note 13).[3]Includes related party notes payable of $0 and $39,454 at December 31, 2023 and 2022, respectively (see Note 13).[4]Includes related party operating lease liability of $4,414 and $0 at December 31, 2023 and 2022, respectively (see Note 13). |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Common stock [Member] | Additional paid-in-capital [Member] | Accumulated other comprehensive income/(loss) [Member] | Retained earnings (Deficit) [Member] | Noncontrolling Interest [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 | 78,108 | 78,108 | ||||
Pension adjustments, net of tax | (286) | (286) | ||||
Gain(loss) on foreign currency translation, net of tax | 504 | 504 | ||||
Issuance of new shares - IPO | 86,041 | $ 2,274 | 83,767 | |||
Issuance of new shares - IPO (in shares) | 263,150 | |||||
Ending balance at Dec. 31, 2021 | 863,878 | $ 21,198 | 671,831 | 23,033 | 147,816 | |
Ending balance (in shares) at Dec. 31, 2021 | 2,477,672 | |||||
Net Income | (233,978) | (233,978) | ||||
Pension adjustments, net of tax | (154) | (154) | ||||
Gain(loss) on foreign currency translation, net of tax | (3,519) | (3,519) | ||||
Reduction of Capital Reserve | 0 | (312,551) | 312,551 | |||
Ending balance at Dec. 31, 2022 | 626,226 | $ 21,198 | 359,280 | 19,360 | 226,388 | |
Ending balance (in shares) at Dec. 31, 2022 | 2,477,672 | |||||
Net Income | 100,885 | 100,885 | ||||
Net Income attributable to noncontrolling interests | 43 | $ 43 | ||||
Pension adjustments, net of tax | (597) | (597) | ||||
Gain(loss) on foreign currency translation, net of tax | 1,219 | 1,219 | ||||
Other changes in noncontrolling interests | 113 | 113 | ||||
Ending balance at Dec. 31, 2023 | $ 727,890 | $ 21,198 | $ 359,280 | $ 19,982 | $ 327,273 | $ 157 |
Ending balance (in shares) at Dec. 31, 2023 | 2,477,672 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Cash flow from (used in) operating activities: | ||||
Net Income (loss) | $ 100,928 | $ (233,978) | $ 78,108 | |
Adjustments to reconcile net income to net cash from operating activities: | ||||
Depreciation and amortization | 728 | 3,801 | 17,918 | |
Impairment of goodwill and intangibles | [1] | 0 | 269,893 | 0 |
(Gain)Loss on foreign currency remeasurement | 3,605 | 1,179 | (2,082) | |
(Gain)Loss on short-term investments | 82 | 152 | 0 | |
(Gain)Loss on disposition of property and equipment | (2) | 0 | 0 | |
Deferred taxes | 29,563 | (84,983) | 5,976 | |
Non-cash interest expense on Bonds | 0 | 0 | 23 | |
Working capital adjustments: | ||||
Accounts receivable | (11,398) | (46) | 1,638 | |
Prepaid expenses, other current and non-current assets | (3,113) | (142) | (2,950) | |
Accounts payable, accrued expenses and other payables | (1,946) | (239) | (2,052) | |
Contract liabilities | 94 | 180 | (168) | |
Income tax payable | (35) | 0 | (2,838) | |
Loss contingency | (95,250) | 91,750 | 3,500 | |
Other current and non-current liabilities | (2,423) | 3,224 | (968) | |
Net cash flows from operating activities | 20,833 | 50,791 | 96,105 | |
Cash flow (used in) investing activities: | ||||
Acquisition of SuprNation | (26,877) | 0 | 0 | |
Purchases of intangible assets | 0 | (4) | (61) | |
Purchases of property and equipment | (198) | (269) | (207) | |
Sales of property and equipment | 5 | 26 | 3 | |
Purchases of short-term investments | (146,363) | (518,629) | (1,541) | |
Sales of short-term investments | 143,164 | 451,046 | 0 | |
Net cash flows (used in) investing activities | (30,269) | (67,830) | (1,806) | |
Cash flow from (used in) financing activities: | ||||
Issuance of new shares - IPO | 0 | 0 | 86,041 | |
Net cash flows from (used in) financing activities: | 0 | 0 | 86,041 | |
Net foreign exchange difference on cash and cash equivalents | (1,005) | (7,669) | (1,468) | |
Net increase (decrease) in cash and cash equivalents | (10,441) | (24,708) | 178,872 | |
Cash and cash equivalents at beginning of period | 217,352 | 242,060 | 63,188 | |
Cash and cash equivalents at end of period | 206,911 | 217,352 | 242,060 | |
Cash paid during year for: | ||||
Interest | 130 | 0 | 0 | |
Income taxes | $ 526 | $ 15,985 | $ 18,819 | |
[1]Excluding depreciation and amortization. |
Description of Business
Description of Business | 12 Months Ended |
Dec. 31, 2023 | |
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,” formerly known as The8Games Co., Ltd.) 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 20.2% 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”) from International Gaming Technologies (“IGT”) for approximately $825 million. DDI-US, with its principal place of business located in Seattle, Washington, is our primary revenue-generating entity. We develop and publish digital gaming content on various mobile and web platforms through our multi-format interactive all-in-one game experience concept. We host DoubleDown Casino, DoubleDown Classic, and DoubleDown Fort Knox within various formats. Initial Public Offering On September 2, 2021, DoubleDown Interactive Co., Ltd. completed its initial public offering (the “Offering”) of 6,316,000 American Depositary Shares (the “ADSs”), each representing 0.05 share of a common share, with par value of KRW per share, of the Company, at a price to the public of $ per ADS, before underwriting discounts and commissions. The number of ADSs sold by the Company was , and the number of ADSs sold by STIC Special Situation Diamond Limited, the selling shareholder in the Offering (the “Selling Shareholder”), was . The net proceeds to DDI from this offering was approximately $ million, after deducting the underwriting discounts and commissions and the offering expenses in the aggregate of approximately $ million payable by us. Prior to this offering, there has been no public market for our common shares or ADSs. The ADSs trade on the NASDAQ Stock Market (“NASDAQ”) under the symbol “DDI.” Acquisition of Double8 Games Co., Ltd. (“Double8 Games”) On February 25, 2020, we completed the acquisition of Double8 Games Co., Ltd. (“Double8 Games”) from DoubleU Games in exchange for KRW2.3 billion. Double8 Games is based in Seoul, Korea, with the primary business of developing digital gaming content for international markets. The acquisition was considered a business combination among entities under common control and, therefore, the transfer of net assets was recorded at their carrying value with all financial information prior to the acquisition adjusted for comparability. Assets acquired and liabilities assumed primarily consist of working capital items, including a right of use asset and lease obligation. The difference between the cash paid and carrying value of the net assets received was recorded as a capital investment from parent. Acquisition of SuprNation AB (“SuprNation”) On October 31, 2023, the Company closed its previously announced acquisition of iGaming operator, SuprNation AB (“SuprNation”), for a total cash consideration €34.3 million (or approximately $36.5 million based on an exchange rate of €1 = $1.064 as of October 27, 2023). The acquisition diversifies the digital games categories that the Company addresses with the addition of three real-money iGaming sites in Western Europe. Following the closing, SuprNation AB is now a direct, wholly-owned subsidiary of DDI-US. Capital Reserve Reallocation On August 30, 2022 it was announced that a special board of directors meeting convened on August 26, 2022 which resulted in the approval of the reduction of the Company’s capital reserve in the amount of KRW On December 28, 2022 it was announced that a special board of directors meeting convened on December 28, 2022 which resulted in the approval of the reduction of the Company’s capital reserve in the amount of KRW |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Significant accounting policies | Note 2: Significant accounting policies Basis of preparation and consolidation The accompanying consolidated financial statements are presented in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of DDI and its controlled subsidiaries. All intercompany transactions, balances and unrealized gains or losses have been eliminated. Use of estimates The preparation of financial statements in conformity with GAAP requires estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosures. 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 experienced may differ materially and adversely from these estimates. To the extent there are material differences between the estimates and the actual results, future operating results may be affected. Functional currency and translation of financial statements Our functional currency is the Korean Won (“KRW”), Euro (“EUR” or “€”), 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 items that are measured at historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions. Cash and cash equivalents We consider all money market funds and short-term investments with a maturity of three months or less when acquired to be cash and cash equivalents. Cash and cash equivalents are held by high credit quality financial institutions and balances may exceed limits of United States federal deposit insurance. We have not experienced any losses resulting from these excess deposits. 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, accounts receivable and short-term investments. 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 2023, 2022 and 2021 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. 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 Year ended December 31, 2023 2022 2021 Apple 55.0 % 54.4 % 51.8 % Facebook 16.8 % 24.1 % 25.9 % Google 18.2 % 18.7 % 19.1 % Accounts Receivable Concentration as of December 31, 2023 2022 2021 Apple 59.3 % 55.8 % 55.6 % Facebook 9.9 % 20.4 % 23.7 % Google 10.3 % 17.7 % 17.5 % Xsolla 11.3 % 0.0 % 0.0 % Fair value measurements Fair value is defined as an exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The three-tiered fair value hierarchy that prioritizes the inputs based on the observability as of the measurement date is as follows: Level 1 – Observable inputs for identical assets or liabilities, such as quoted prices in active markets; Level 2 – Inputs other than quoted prices in active markets that are either directly or indirectly observable; Level 3 – Unobservable inputs in which little or no market data exists, therefore they are developed using estimates and assumptions developed by us, which reflect those that a market participant would use. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the placement of assets and liabilities being measured within the fair value hierarchy. See Note 6: Fair value measurements. Goodwill and indefinite-lived intangible assets Goodwill is assigned to our reporting unit that is expected to benefit from the synergies of the business combination as of the acquisition date. We assess goodwill and indefinite-lived intangible assets, neither of which is amortized, for impairment annually as of October 1, or more frequently, if events and circumstances indicate impairment may have occurred. In the evaluation of goodwill for impairment, we typically perform a quantitative assessment and compare the fair value of the reporting unit to the carrying value. An impairment charge is recorded based on the excess of the reporting unit’s carrying amount over its fair value. Periodically, we may choose to perform a qualitative assessment, prior to performing the quantitative analysis, to determine whether the fair value of the goodwill is more likely than not impaired. We generally base our measurement of fair value of our subject reporting unit on a blended analysis of the present value of future discounted cash flows and market valuation approach. The discounted cash flows model indicates the fair value of the reporting unit based on the present value of the cash flows that we expect the reporting unit to generate in the future. Our significant estimates in the discounted cash flows model include: our weighted average cost of capital; long-term rate of growth and profitability of our business; and working capital effects. The market valuation approach indicates the fair value of the business based on a comparison of the Company to comparable publicly traded firms in similar lines of business. Our significant estimates in the market approach model include identifying similar companies with comparable business factors such as size, growth, profitability, risk and return on investment and assessing comparable revenue and operating income multiples in estimating the fair value of the reporting unit. In our evaluation of our indefinite-lived intangible assets, we typically first perform a quantitative assessment and an impairment charge is recorded for the excess of the carrying value of indefinite-lived intangible assets over their fair value, if necessary. We base our measurement of fair value of indefinite-lived intangible assets, which primarily consist of trade name and trademarks, using the relief-from-royalty method. This method assumes that the trade name and trademarks have value to the extent that their owner is relieved of the obligation to pay royalties for the benefits received from them. As with goodwill, periodically, we may choose to perform a qualitative assessment, prior to performing the quantitative analysis, to determine whether the fair value of the indefinite-lived intangible asset is more likely than not impaired. After completing our annual impairment reviews for the reporting unit during the fourth quarter of 2023, 2022 and 2021, we concluded that a $269.9 million impairment of goodwill and intangibles, of which $15.0 million related to our trademarks and $254.9 million related to our goodwill, would be recognized in 2022 and that goodwill and indefinite-lived intangible assets were not impaired in either 2023 or 2021. See Note 4: Goodwill and intangible assets. Finite-lived intangible assets Intangible assets acquired separately are measured on initial recognition at cost. The carrying value of intangible assets acquired in a business combination is their fair value at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated amortization and accumulated impairment losses. Finite-lived intangible assets are amortized over their useful economic life and assessed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of these assets is determined by comparing the forecasted undiscounted net cash flows from use and eventual disposition of the asset over its remaining economic life to its carrying value. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are considered to modify the amortization period or method, as appropriate, and are treated as changes in estimates. The amortization expense on intangible assets with finite lives is recognized in the consolidated statements of operations in depreciation and amortization. Development costs Development costs for new app development are capitalized and recognized as an intangible asset when the preliminary development stage has been completed, management commits to funding the project, it is probable that the project will be completed, and the software will be used for its intended function. Following initial recognition of the development costs as an asset, the asset is carried at cost less any accumulated amortization and accumulated impairment losses. Amortization of the asset begins when development is complete, and the asset is available for use. It is amortized over the period of expected future benefit. Amortization is recorded in depreciation and amortization. Revenue recognition Our social and mobile apps operate on a free-to-play model, whereby game players may collect virtual currency free of charge through the passage of time or through targeted marketing promotions. If a game player wishes to obtain virtual currency above and beyond the level of free virtual currency available to that player, the player may purchase additional virtual currency. Once a purchase is completed, the virtual currency is deposited into the player’s account and is not separately identifiable from previously purchased virtual currency or virtual currency obtained by the game player for free. 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. We generate a small portion of our revenue from subscription services. All monthly subscription fees are prepaid and non-refundable for a one-month period and auto-renew until the end customer terminates the service with the platform provider the subscription services originated. The subscription revenue is recognized on a daily basis beginning on the original date of purchase and has no impact on a customer purchased virtual currency. 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): Year ended December 31, 2023 2022 2021 Mobile $ 232,485 $ 241,915 $ 264,911 Web 76,379 79,112 98,294 Total $ 308,864 $ 321,027 $ 363,205 The following table presents our revenue disaggregated based on the geographical location of our players (in thousands): Year ended December 31, 2023 2022 2021 U.S. (1) $ 267,721 $ 282,016 $ 317,605 International 41,143 39,011 45,600 Total $ 308,864 $ 321,027 $ 363,205 (1) Geographic location is presented as being derived from the U.S. when data is not available Principal-agent considerations Our revenue contracts are with game players who are our customers. We have exclusive control over all content, pricing, and overall functionality of games accessed by players. Our games are played on various third-party platforms for which the platform providers collect proceeds from our customers and remit us an amount after deducting a fee for processing and other agency services. We record revenue at the gross amount charged to our customers and classify fees paid to platform providers (such as Apple, Facebook, and Google) within cost of revenue. 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 and relate to non-cancellable contracts that specify our performance obligations. All payments are initially recorded as revenue, as the player has no right of return after the purchase, consistent with our standard terms and conditions. Based on our analysis, at each period end, we estimate the number of days to consume virtual currency. This represents the revenue amount where the performance obligation has not been met and is deferred as a contract liability until we satisfy the obligation. The contract asset consists of platform 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): Year ended 2023 2022 Contract assets (1) $ 756 $ 728 Contract liabilities 2,520 2,426 (1) Contract assets are included within prepaid expenses and other assets in our consolidated balance sheet. Cost of revenue Amounts recorded as cost of revenue relate to direct expenses incurred in order to generate social gaming revenue. Such costs are recorded as incurred, and primarily consist of fees withheld by our platform providers from the player proceeds received by the platform providers on our behalf, hosting fees, and royalties. Depreciation and amortization expense is excluded from cost of revenue and other operating expenses and is separately presented on the consolidated statements of operations. 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 wage-based pension plan, which provides a specified amount of pension benefit based on length of service. The service cost components of the net periodic benefit costs are charged to current operations based on the functional area of the employee. The total benefit obligation of $4.4 million and million, was included in other non-current liabilities as of December 31, 2023 and 2022, respectively, and the change in actuarial gains or losses was included in other comprehensive income. The following table summarizes the components of the projected benefit obligation (in thousands): As of December 31, 2023 2022 2021 Projected benefit obligation at beginning of year $ 4,014 $ 3,351 $ 2,792 Service cost 723 838 759 Interest (74 ) (51 ) 29 Actuarial (gain)/loss 597 157 289 Benefits paid (184 ) (64 ) (543 ) Other (574 ) 0 254 Foreign currency translation adjustment (117 ) (217 ) (229 ) Projected benefit obligation at end of year $ 4,385 $ 4,014 $ 3,351 The plan assets are held in a limited number of marketable and liquid financial instruments and totaled $4.4 million and million at December 31, 2023 and 2022, respectively. Valuation adjustments were not material. Defined contribution plan We sponsor a defined contribution plan for our employees based in Seattle, Washington. We provide a matching contribution of 100% on the first 1% of employee contributions and 50% on the next 5% of employee contributions. Our contribution expense for the years ended December 31, 2023, 2022 and 2021 was approximately $242,000, $259,000, and $289,000 respectively. Advertising costs The cost of advertising is expensed as incurred and totaled $45.2 million, $67.9 million and $74.2 million for the years ended December 31, 2023, 2022 and 2021 respectively. Advertising costs primarily consist of marketing and player acquisition and retention costs and are included in sales and marketing expenses. Research and development Research and development costs relate primarily to employee costs associated with in-app game development, feature design and enhancement, and engagement functionality that does not meet our internal-use software capitalization criteria. These costs are expensed as incurred. Income taxes Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates in the period in which they reverse. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” standard, no tax benefit is recorded. Statutory withholding tax is recognized in income tax expense as incurred. Segment information Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision maker, our Chief Executive Officer, in making decisions regarding resource allocation and assessing performance. We view our operations and manage our business as one operating segment. |
Short-term investments
Short-term investments | 12 Months Ended |
Dec. 31, 2023 | |
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 months). As such, gains or losses from holding or trading these securities were recognized in the Statements of Income. At December 31, 2023, short term investments were comprised of fixed time deposits classified as trading. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and intangible assets | Note 4: Goodwill and intangible assets The majority of our intangible assets consist of assets acquired through the 2017 acquisition of DDI-US. We recognized no changes to the carrying value of goodwill during 2021, and recognized a $269.9 million impairment of goodwill and intangibles in 2022 (See Note: Significant Accounting Policies). The components of our intangible assets were as follows (in thousands): December 31, 2023 December 31, 2022 Useful life Gross Accumulated Impairment Net Gross Accumulated Impairment Net Goodwill indefinite $ 651,597 $ — $ (254,893 ) $ 396,704 $ 633,965 $ — $ (254,893 ) $ 379,072 Trademarks indefinite 50,000 — (15,000 ) 35,000 50,000 — (15,000 ) 35,000 Customer relationships 4 years 84,271 (75,387 ) — 8,884 75,000 (75,000 ) — — Purchased technology 5-10 years 52,707 (45,544 ) — 7,163 45,423 (45,423 ) — — Development costs 3 years 9,486 (9,486 ) — — 9,486 (9,486 ) — — Software 4-5 years 2,968 (2,444 ) — 524 2,462 (2,411 ) — 51 Total $ 851,029 $ (132,861 ) $ (269,893 ) $ 448,275 $ 816,336 $ (132,320 ) $ (269,893 ) $ 414,123 Amortization expense for the years ended December 31, 2023, 2022 and 2021 totaled $0.5 million, $3.6 million, and $17.7 million respectively. Estimated annual amortization expense for the years ending December 31, 2024 and thereafter is a follows (in thousands): Year Expense 2024 3,113 2025 3,110 2026 3,107 2027 2,718 2028 and thereafter 4,523 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Note 5: Debt The components of debt at December 31, 2023 and 2022 are as follows (in thousands): As of December 31, 2023 2022 4.60% Senior Notes due to related party due 2024 $ 38,778 $ 39,454 Total debt 38,778 39,454 Less: Short-term debt 38,778 — Total Long-term debt $ — $ 39,454 4.60% Senior Notes due to related party due 2024 The 4.60% Senior Notes due to related party, which collectively total KRW100 billion 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). Voluntary principal and interest payments were made in June and September 2020. Principal of KRW20 billion and interest of KRW1.2 billion was paid in June 2020 and principal of KRW30 billion and interest of KRW3.1 billion was paid in September 2020. |
Fair value measurements
Fair value measurements | 12 Months Ended |
Dec. 31, 2023 | |
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, accrued liabilities, and short- term borrowings approximate their fair values due to the short-term nature of these instruments. Our cash equivalents (Level 1 of fair value hierarchy) consist of money market funds and Korean market government bonds totaling $206.9 million and $217.4 million as of December 31, 2023 and 2022, respectively and short-term investments (Level 2 of fair value hierarchy) comprised of fixed time or certificates of deposit with maturity periods greater than 90 days totaling $67.8 million and $67.9 million as of December 31, 2023 and 2022, respectively. We rely on credit market data to track interest rates for other entities with similar risk profiles. We record all debt at inception at fair value. We perform subsequent analysis on available data to evaluate the fair value of our borrowing as of the balance sheet date. We rely on credit market data to track interest rates for other entities with similar risk profiles. As of December 31, 2023, the fair value of our senior notes (a Level 3 estimate) was approximately $ million lower than face value. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 7: Income taxes Income (loss) before income tax consisted of the following (in thousands): Year ended December 31, 2023 2022 2021 US $ 120,750 $ (310,483 ) $ 97,918 Korea 12,187 5,315 2,696 Other (1,792 ) — — Total income (loss) before income taxes $ 131,145 $ (305,168 ) $ 100,614 The following table presents the detail of income tax expense for the periods presented (in thousands): Year ended December 31, 2023 2022 2021 Current: US $ 21 $ 11,571 $ 14,481 Korea 597 2,222 2,049 Other 36 — — Total current taxes: $ 654 $ 13,793 $ 16,530 Deferred: US $ 31,316 $ (85,206 ) $ 8,154 Korea (975 ) 223 (2,178 ) Other (778 ) — — Total deferred taxes $ 29,563 $ (84,983 ) $ 5,976 Total income tax expense (benefit) $ 30,217 $ (71,190 ) $ 22,506 The following table presents a reconciliation of the statutory rate and our effective tax rate for the periods presented: Year ended December 31, 2023 2022 2021 Statutory tax rate 19.0 % 20.0 % 20.0 % Foreign jurisdiction rate differential 4.0 % 3.7 % 3.5 % Non-deductible interest 0.0 % 0.0 % 0.0 % Withholding taxes 0.4 % (0.6 )% 2.0 % Tax credits (0.3 )% 1.0 % (4.2 )% Valuation allowance 3.1 % (0.6 )% 1.6 % Other (3.1 )% (0.1 )% (0.6 )% Total tax rate 23.1 % 23.3 % 22.3 % Deferred federal, state, and foreign income taxes reflect the net tax impact of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and such amounts for tax purposes. The following table presents the significant components of our deferred tax assets and liabilities as of the dates presented (in thousands): Year ended December 31, 2023 2022 Deferred income tax assets: Net operating loss carryforward $ 22,564 $ 5,934 Tax credit carryforward 13,844 14,171 Accruals and reserves 753 35,589 Accrued interest 1,118 762 Intangibles 18,026 17,632 Lease liability 1,411 1,120 Goodwill — 4,467 Interest carryforward 1,426 — Capitalized R&D costs 1,123 — Deferred tax assets $ 60,265 $ 79,675 Less: Valuation allowance (18,747 ) (18,893 ) Net deferred tax assets $ 41,518 $ 60,782 Deferred tax liabilities Goodwill (5,571 ) — Intangibles (5,210 ) — Right-of-use-assets (1,384 ) (1,038 ) Other (1,267 ) (454 ) Deferred tax liabilities $ (13,432 ) $ (1,492 ) Net deferred tax assets (liabilities) $ 28,086 $ 59,290 Realization of deferred tax assets is dependent upon the generation of future taxable income, if any, the timing, and amount of which are uncertain. We have provided a valuation allowance against the deferred tax assets of Korea as of December 31, 2023 and 2022 because, based on the weight of available evidence, it is more likely than not that these deferred tax assets will not be realized. We have a Korean tax loss carryforward of approximately $17.3 million as of December 31, 2023, which are available to reduce future taxable income. These losses begin to expire in 2027. We have U.S. federal net operating loss carryforwards of $67.4 million which carryforward indefinitely. We have $28.7 million of U.S. state net operating losses which begin to expire starting in 2033. Additionally, we have Korean tax credit carryforwards of $13.7 million as of December 31, 2023, which are available to reduce future foreign tax liabilities. The foreign tax credit carryforwards begin to expire in 2028. We have not recorded a liability for income taxes or withholding taxes on undistributed earnings of subsidiaries as of December 31, 2023 as we intend to reinvest such earnings outside of Korea for the foreseeable future. Given the Company’s current and anticipated losses in Korea, the method of realizing the cumulative temporary differences related to foreign earnings is difficult to estimate. Therefore, the Company concluded it is not practical to estimate the related deferred tax liability. We are currently not under audit in any tax jurisdiction. We do not have any uncertain tax positions and have not established reserves for tax positions based on estimates of whether, and the extent to which, additional taxes will be due. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Note 8: Shareholders’ equity Common stock We have 200,000,000 total authorized shares at December 31, 2023 and 2022. The par value per share is KRW10,000. Holders of outstanding shares of common stock are entitled to one vote for each share on all matters submitted to a vote of the holders of common stock. Holders of common stock are entitled to receive dividends that are declared by our board of directors out of legally available funds. In the event of a liquidation, dissolution or winding-up, the holders of common stock are entitled to share ratably in the net assets remaining after payment of liabilities. There are no conversion rights, redemption rights or sinking fund provisions, and there are no dividends in arrears or default. All shares of common stock have equal distribution, liquidation and voting rights, and have no preferences or exchange rights. |
Net Income Per Share
Net Income Per Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Note 9: 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. The following table presents the calculation of basic and diluted net income per share (in thousands except share and per share amounts): Year Ended December 31, 2023 2022 2021 Numerator: Net income (loss) applicable to common shareholders - basic $ 100,885 $ (233,978 ) $ 78,108 Dilutive effect of assumed conversion of convertible debt — — — Net income (loss) applicable to common shareholders – diluted $ 100,885 $ (233,978 ) $ 78,108 Denominator: Weighted average shares outstanding - basic 2,477,672 2,477,672 2,303,200 Dilutive effect of assumed conversion of convertible debt — — — Dilutive effect of assumed conversion of warrants — — — Weighted average shares outstanding – diluted 2,477,672 2,477,672 2,303,200 Basic net income (loss) per share $ 40.72 $ (94.43 ) $ 33.91 Diluted net income (loss) per share $ 40.72 $ (94.43 ) $ 33.91 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | Note 10: Leases Our operating leases primarily consist of real estate leases for office space and do not have any non-lease components. 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 and consists of square feet. In , the only option to extend, which was effective October , , was exercised to extend the term for months. The extended lease will expire in . The Gangnam-gu, Seoul, Korea office space is subleased from our parent, DUG and consists of square feet. The subleases originated in and were amended in and with DUG (sublessor). The subleases will expire in . The Swieqi, Malta office lease was assumed as part of the SuprNation acquisition in October 2023 and consists of 4,770 square feet. The lease will expire in October 2024. The weighted average remaining lease terms as of December 31, 2023 and 2022 were 3.8 years and 1.6 years, respectively. The weighted average discount rates for the Company’s leases as of December 31, 2023 and 2022 were 5.8% and 5.2%, respectively. Supplemental balance sheet and statements of operations information related to operating leases is as follows (in thousands): Year Ended December 31, 2023 2022 2021 Operating lease right-of-use asset $ 7,577 $ 4,675 $ 7,764 Accrued rent 447 817 934 Total operating lease right-of-use asset, net $ 7,130 $ 3,858 $ 6,830 Short-term operating lease liabilities 3,157 3,050 3,076 Long-term operating lease liabilities 4,420 1,625 4,688 Total operating lease liabilities $ 7,577 $ 4,675 $ 7,764 Operating lease costs $ 3,201 $ 3,160 $ 3,313 Supplemental cash flow information related to leases was as follows (in thousands): Year Ended December 31, 2023 2022 2021 Cash paid for amounts included in the measurement of operating lease liabilities $ 3,501 $ 3,253 $ 3,262 Right-of-use assets obtained in exchange for new lease obligations $ 7,655 $ — $ — Maturities of lease liabilities are as follows (in thousands): As of December 31, 2023 Seattle Lease Seoul Lease Malta 2024 1,732 1,445 267 2025 — 1,501 — 2026 — 1,534 — 2027 — 1,541 — Thereafter — 971 — Less: Imputed Interest (130 ) (1,281 ) (3 ) Total 1,602 5,711 264 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2023 | |
Statement of Other Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Income | Note 11: Accumulated other comprehensive income Changes in accumulated other comprehensive income (AOCI) by component for the years ended December 31, 2023, 2022 and 2021 were as follows (in thousands): Currency Defined Total Balance at of January 1, 2021 $ 23,807 $ (992 ) $ 22,815 Foreign currency translation gain/(loss) 504 — 504 Actuarial gain/(loss), net of tax — (286 ) (286 ) Balance as of December 31, 2021 $ 24,311 $ (1,278 ) $ 23,033 Foreign currency translation gain/(loss) (3,519 ) — (3,519 ) Actuarial gain/(loss), net of tax — (154 ) (154 ) Balance as of December 31, 2022 $ 20,792 $ (1,432 ) $ 19,360 Foreign currency translation gain/(loss) 1,219 — 1,219 Actuarial gain/(loss), net of tax — (597 ) (597 ) Balance as of December 31, 2023 $ 22,011 $ (2,029 ) $ 19,982 For years ended December 31, 2023, 2022 and 2021, we did not tax effect foreign currency translation gain/(loss) because we have determined such gain/(loss) is permanently reinvested and actuarial gain/(loss) is not tax effected due to a valuation allowance applied to our deferred tax assets. |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Note 12: Commitments and contingencies Legal contingencies On April 12, 2018, a class-action lawsuit was filed against DDI-US demanding a return of unfair benefit under the pretext that the C ompany’s Benson 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. In March 2023, we, through DDI-US, entered into a new Game License Agreement with DoubleU Games with effect from January 1, 2023, which supersedes the prior DoubleU Games License Agreement. Pursuant to the new Game License Agreement, DoubleU Games grants us, through DDI-US, a non-exclusive and worldwide license to service 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 equal to a certain fixed percentage of the net sales of the licensed game titles to DoubleU Games in connection with these rights, with certain customary terms and conditions. As of December 31, 2023, we licensed approximately game titles under the terms of this agreement. In October 2023, we, through DDI-US, entered into a Game Development Services Agreement with DoubleU Games, pursuant to which DDI-US will pay service fees to DoubleU Games for certain game maintenance services and product planning and user analysis services provided by DoubleU Games. We incurred total service fees of $1.4 million for year ended December 31, 2023. International Gaming Technologies (“IGT”) In 2017, we entered into a Game Development, Distribution, and Services Agreement with IGT. 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 paid IGT an initial royalty rate o f % of revenue for their proprietary assets and % of revenue for third-party game asset types. Effective January 1, 2019, we amended the agreement to revise the royalty rate for proprietary game asset types to % of revenue. The initial term of the agreement is ten ( ) years with up to two additional five-year periods. Costs incurred in connection with this agreement for the years ended December 31, 2023, 2022 and 2021 totaled $ million, $ million, and $ million , respectively, and are recognized as a component of cost of revenue. Director and Officers’ Indemnification Agreement The Company’s maximum aggregate liability for all loss and expenses on account of any and all requests for indemnity under the Indemnification Agreement or any similar indemnity agreement with any other indemnitee will be $5,000,000 per every 12-month period. |
Related party transactions
Related party transactions | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related party transactions | Note 13: 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): Year Ended December 31, Statement of Income and Comprehensive Income Line 2023 2022 2021 Royalty expense (see Note 12) $ 2,565 $ 3,374 $ 4,335 Cost of revenue Interest expense (see Note 5) 1,762 1,780 2,010 Interest expense Rent expense (see Note 10) 1,268 1,251 1,397 General and administrative Other expense 1,636 225 206 General and administrative Amounts due to our parent, DoubleU Games, are as follows (in thousands): Year Ended December 31, Statement of Consolidated Balance Sheet Line Item 2023 2022 2021 4.6% Senior notes with related party $ 38,778 $ — $ — Current portion of 4.6% Senior notes with related party — 39,454 42,176 Long-Term borrowing with related party Royalties and other expenses 1,618 315 511 A/P and accrued expenses Short-term lease liability 1,298 1,066 1,309 Short-term operating lease liabilities Accrued interest on 4.6% Senior Notes with related party 9,501 — — Other current liabilities Accrued interest on 4.6% Senior Notes with related party — 7,852 6,454 Other non-current liabilities Long-term lease liability 4,414 — 1,078 Long-term lease liabilities |
Acquisition
Acquisition | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisition | Note 14: Acquisition Business Combination-SuprNation On October 31, 2023, the Company completed its acquisition of SuprNation, a European i-Gaming operator, which is now a direct, wholly-owned subsidiary of DDI-US, for a total cash purchase price of $30.6 million. There was also a payment into escrow of $5.5 million and a deferred payment of up to $6.5 million, relating to a performance-based holdback amount to be calculated based on the 18 months following the transaction close date. The transaction is expected to enable the Company to expand into the i-Gaming market. The Company accounted for the acquisition as a business combination. Transaction costs incurred by the Company in connection with the acquisition, including professional fees, were $2.0 million. The following table summarizes the allocation of the purchase consideration to the acquisition-date fair value of the assets acquired and liabilities assumed (in thousands): Total purchase consideration $ 30,653 Non-controlling interest $ 118 Identifiable Assets $ 13,838 Cash and cash equivalents 3,776 Accounts receivable, net 99 Prepaid expenses, and other assets 612 Intangible assets, net Platform Technology 6,987 Customers 8,893 Gaming Licenses 476 Property and equipment, net 34 Operating lease right-of-use assets, net 200 Other non-current assets 171 Accounts payable and accrued expenses (1,449 ) Income taxes payable (111 ) Short-term operating lease liabilities (191 ) Other current liabilities (3,794 ) Deferred tax liabilities, net (1,630 ) Other non-current liabilities (235 ) Goodwill $ 16,933 The above allocation of the purchase price can be subject to change within the measurement period, but no later than one year from the date of the acquisition close. The income and the cost approach was used for the fair value of Contemporaneously with entering into the definitive agreement, the Company also adopted an eighteen-month performance-based incentive plan for certain key employees of SuprNation, under which the key employees may earn up to a total of $6.5 million in addition to $5.5 million held in escrow, contingent upon the achievement of certain revenue and other performance targets by the acquired business and the continued employment of such key employees between 2023 and 2025. Such plan became effective at the closing of the transaction. The Company’s consolidated statement of operations as of December 31, 2023, includes SuprNation’s revenue of $ million and pre-tax loss of $ million for the period from the acquisition date of October 31, 2023 to December 31, 2023. See Pro forma results of operations below under “Supplemental Pro Forma Information”. Supplemental Pro Forma Information (unaudited) The unaudited supplemental pro forma information below presents the combined historical results of operations of the Company and SuprNation, an acquisition completed in October 2023, as if SuprNation had been acquired as of January 1, 2022 (in thousands): Year ended December 31, 2023 2022 Revenue $ 330,462 $ 346,433 Net income (loss) attributable to DoubleDown Interactive Co., Ltd. $ 93,802 $ (246,585 ) The unaudited supplemental pro forma information above includes the following adjustments to net income (loss) in the appropriate pro forma period (in thousands): Year ended December 31, 2023 2022 An (increase) in amortization expense related to the fair value of acquired identifiable intangible assets, net of the amortization expense already reflected in actual historical results (2,571 ) (3,003 ) A decrease (increase) in expenses related to incentives (2,180 ) (6,464 ) A (increase) decrease in expenses related to operating and marketing expenses per the agreement (3,500 ) (7,000 ) An (increase) decrease in income tax provision 2,643 5,037 The unaudited supplemental pro forma information has been presented for illustrative purposes only and is not necessarily indicative of results of operations that would have been achieved had the acquisitions taken place on the date indicated, or of the Company’s future consolidated results of operations. The supplemental pro forma information presented above has been derived from the Company’s historical consolidated financial statements and from the historical accounting records of SuprNation. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of preparation and consolidation | Basis of preparation and consolidation The accompanying consolidated financial statements are presented in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of DDI and its controlled subsidiaries. All intercompany transactions, balances and unrealized gains or losses have been eliminated. |
Use of estimates | Use of estimates The preparation of financial statements in conformity with GAAP requires estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosures. 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 experienced may differ materially and adversely from these estimates. To the extent there are material differences between the estimates and the actual results, future operating results may be affected. |
Functional currency and translation of financial statements | Functional currency and translation of financial statements Our functional currency is the Korean Won (“KRW”), Euro (“EUR” or “€”), 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 items that are measured at historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions. |
Cash and cash equivalents | Cash and cash equivalents We consider all money market funds and short-term investments with a maturity of three months or less when acquired to be cash and cash equivalents. Cash and cash equivalents are held by high credit quality financial institutions and balances may exceed limits of United States federal deposit insurance. We have not experienced any losses resulting from these excess deposits. |
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, accounts receivable and short-term investments. 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 2023, 2022 and 2021 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. 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 Year ended December 31, 2023 2022 2021 Apple 55.0 % 54.4 % 51.8 % Facebook 16.8 % 24.1 % 25.9 % Google 18.2 % 18.7 % 19.1 % |
Fair value measurements | Fair value measurements Fair value is defined as an exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The three-tiered fair value hierarchy that prioritizes the inputs based on the observability as of the measurement date is as follows: Level 1 – Observable inputs for identical assets or liabilities, such as quoted prices in active markets; Level 2 – Inputs other than quoted prices in active markets that are either directly or indirectly observable; Level 3 – Unobservable inputs in which little or no market data exists, therefore they are developed using estimates and assumptions developed by us, which reflect those that a market participant would use. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the placement of assets and liabilities being measured within the fair value hierarchy. See Note 6: Fair value measurements. |
Goodwill and indefinite-lived intangible assets | Goodwill and indefinite-lived intangible assets Goodwill is assigned to our reporting unit that is expected to benefit from the synergies of the business combination as of the acquisition date. We assess goodwill and indefinite-lived intangible assets, neither of which is amortized, for impairment annually as of October 1, or more frequently, if events and circumstances indicate impairment may have occurred. In the evaluation of goodwill for impairment, we typically perform a quantitative assessment and compare the fair value of the reporting unit to the carrying value. An impairment charge is recorded based on the excess of the reporting unit’s carrying amount over its fair value. Periodically, we may choose to perform a qualitative assessment, prior to performing the quantitative analysis, to determine whether the fair value of the goodwill is more likely than not impaired. We generally base our measurement of fair value of our subject reporting unit on a blended analysis of the present value of future discounted cash flows and market valuation approach. The discounted cash flows model indicates the fair value of the reporting unit based on the present value of the cash flows that we expect the reporting unit to generate in the future. Our significant estimates in the discounted cash flows model include: our weighted average cost of capital; long-term rate of growth and profitability of our business; and working capital effects. The market valuation approach indicates the fair value of the business based on a comparison of the Company to comparable publicly traded firms in similar lines of business. Our significant estimates in the market approach model include identifying similar companies with comparable business factors such as size, growth, profitability, risk and return on investment and assessing comparable revenue and operating income multiples in estimating the fair value of the reporting unit. In our evaluation of our indefinite-lived intangible assets, we typically first perform a quantitative assessment and an impairment charge is recorded for the excess of the carrying value of indefinite-lived intangible assets over their fair value, if necessary. We base our measurement of fair value of indefinite-lived intangible assets, which primarily consist of trade name and trademarks, using the relief-from-royalty method. This method assumes that the trade name and trademarks have value to the extent that their owner is relieved of the obligation to pay royalties for the benefits received from them. As with goodwill, periodically, we may choose to perform a qualitative assessment, prior to performing the quantitative analysis, to determine whether the fair value of the indefinite-lived intangible asset is more likely than not impaired. After completing our annual impairment reviews for the reporting unit during the fourth quarter of 2023, 2022 and 2021, we concluded that a $269.9 million impairment of goodwill and intangibles, of which $15.0 million related to our trademarks and $254.9 million related to our goodwill, would be recognized in 2022 and that goodwill and indefinite-lived intangible assets were not impaired in either 2023 or 2021. See Note 4: Goodwill and intangible assets. |
Finite-lived intangible assets | Finite-lived intangible assets Intangible assets acquired separately are measured on initial recognition at cost. The carrying value of intangible assets acquired in a business combination is their fair value at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated amortization and accumulated impairment losses. Finite-lived intangible assets are amortized over their useful economic life and assessed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of these assets is determined by comparing the forecasted undiscounted net cash flows from use and eventual disposition of the asset over its remaining economic life to its carrying value. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are considered to modify the amortization period or method, as appropriate, and are treated as changes in estimates. The amortization expense on intangible assets with finite lives is recognized in the consolidated statements of operations in depreciation and amortization. |
Development costs | Development costs Development costs for new app development are capitalized and recognized as an intangible asset when the preliminary development stage has been completed, management commits to funding the project, it is probable that the project will be completed, and the software will be used for its intended function. Following initial recognition of the development costs as an asset, the asset is carried at cost less any accumulated amortization and accumulated impairment losses. Amortization of the asset begins when development is complete, and the asset is available for use. It is amortized over the period of expected future benefit. Amortization is recorded in depreciation and amortization. |
Revenue recognition | Revenue recognition Our social and mobile apps operate on a free-to-play model, whereby game players may collect virtual currency free of charge through the passage of time or through targeted marketing promotions. If a game player wishes to obtain virtual currency above and beyond the level of free virtual currency available to that player, the player may purchase additional virtual currency. Once a purchase is completed, the virtual currency is deposited into the player’s account and is not separately identifiable from previously purchased virtual currency or virtual currency obtained by the game player for free. 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. We generate a small portion of our revenue from subscription services. All monthly subscription fees are prepaid and non-refundable for a one-month period and auto-renew until the end customer terminates the service with the platform provider the subscription services originated. The subscription revenue is recognized on a daily basis beginning on the original date of purchase and has no impact on a customer purchased virtual currency. 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): Year ended December 31, 2023 2022 2021 Mobile $ 232,485 $ 241,915 $ 264,911 Web 76,379 79,112 98,294 Total $ 308,864 $ 321,027 $ 363,205 The following table presents our revenue disaggregated based on the geographical location of our players (in thousands): Year ended December 31, 2023 2022 2021 U.S. (1) $ 267,721 $ 282,016 $ 317,605 International 41,143 39,011 45,600 Total $ 308,864 $ 321,027 $ 363,205 (1) Geographic location is presented as being derived from the U.S. when data is not available Principal-agent considerations Our revenue contracts are with game players who are our customers. We have exclusive control over all content, pricing, and overall functionality of games accessed by players. Our games are played on various third-party platforms for which the platform providers collect proceeds from our customers and remit us an amount after deducting a fee for processing and other agency services. We record revenue at the gross amount charged to our customers and classify fees paid to platform providers (such as Apple, Facebook, and Google) within cost of revenue. 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 and relate to non-cancellable contracts that specify our performance obligations. All payments are initially recorded as revenue, as the player has no right of return after the purchase, consistent with our standard terms and conditions. Based on our analysis, at each period end, we estimate the number of days to consume virtual currency. This represents the revenue amount where the performance obligation has not been met and is deferred as a contract liability until we satisfy the obligation. The contract asset consists of platform 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): Year ended 2023 2022 Contract assets (1) $ 756 $ 728 Contract liabilities 2,520 2,426 (1) Contract assets are included within prepaid expenses and other assets in our consolidated balance sheet. |
Cost of revenue | Cost of revenue Amounts recorded as cost of revenue relate to direct expenses incurred in order to generate social gaming revenue. Such costs are recorded as incurred, and primarily consist of fees withheld by our platform providers from the player proceeds received by the platform providers on our behalf, hosting fees, and royalties. Depreciation and amortization expense is excluded from cost of revenue and other operating expenses and is separately presented on the consolidated statements of operations. |
Defined benefit pension plan | 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 wage-based pension plan, which provides a specified amount of pension benefit based on length of service. The service cost components of the net periodic benefit costs are charged to current operations based on the functional area of the employee. The total benefit obligation of $4.4 million and million, was included in other non-current liabilities as of December 31, 2023 and 2022, respectively, and the change in actuarial gains or losses was included in other comprehensive income. The following table summarizes the components of the projected benefit obligation (in thousands): As of December 31, 2023 2022 2021 Projected benefit obligation at beginning of year $ 4,014 $ 3,351 $ 2,792 Service cost 723 838 759 Interest (74 ) (51 ) 29 Actuarial (gain)/loss 597 157 289 Benefits paid (184 ) (64 ) (543 ) Other (574 ) 0 254 Foreign currency translation adjustment (117 ) (217 ) (229 ) Projected benefit obligation at end of year $ 4,385 $ 4,014 $ 3,351 The plan assets are held in a limited number of marketable and liquid financial instruments and totaled $4.4 million and million at December 31, 2023 and 2022, respectively. Valuation adjustments were not material. |
Defined contribution plan | Defined contribution plan We sponsor a defined contribution plan for our employees based in Seattle, Washington. We provide a matching contribution of 100% on the first 1% of employee contributions and 50% on the next 5% of employee contributions. Our contribution expense for the years ended December 31, 2023, 2022 and 2021 was approximately $242,000, $259,000, and $289,000 respectively. |
Advertising costs | Advertising costs The cost of advertising is expensed as incurred and totaled $45.2 million, $67.9 million and $74.2 million for the years ended December 31, 2023, 2022 and 2021 respectively. Advertising costs primarily consist of marketing and player acquisition and retention costs and are included in sales and marketing expenses. |
Research and development | Research and development Research and development costs relate primarily to employee costs associated with in-app game development, feature design and enhancement, and engagement functionality that does not meet our internal-use software capitalization criteria. These costs are expensed as incurred. |
Income taxes | Income taxes Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates in the period in which they reverse. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” standard, no tax benefit is recorded. Statutory withholding tax is recognized in income tax expense as incurred. |
Segment information | Segment information Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision maker, our Chief Executive Officer, in making decisions regarding resource allocation and assessing performance. We view our operations and manage our business as one operating segment. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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 Year ended December 31, 2023 2022 2021 Apple 55.0 % 54.4 % 51.8 % Facebook 16.8 % 24.1 % 25.9 % Google 18.2 % 18.7 % 19.1 % Accounts Receivable Concentration as of December 31, 2023 2022 2021 Apple 59.3 % 55.8 % 55.6 % Facebook 9.9 % 20.4 % 23.7 % Google 10.3 % 17.7 % 17.5 % Xsolla 11.3 % 0.0 % 0.0 % |
Summary of disaggregation of revenue | The following table represents our disaggregation of revenue between mobile and web platforms (in thousands): Year ended December 31, 2023 2022 2021 Mobile $ 232,485 $ 241,915 $ 264,911 Web 76,379 79,112 98,294 Total $ 308,864 $ 321,027 $ 363,205 The following table presents our revenue disaggregated based on the geographical location of our players (in thousands): Year ended December 31, 2023 2022 2021 U.S. (1) $ 267,721 $ 282,016 $ 317,605 International 41,143 39,011 45,600 Total $ 308,864 $ 321,027 $ 363,205 (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): Year ended 2023 2022 Contract assets (1) $ 756 $ 728 Contract liabilities 2,520 2,426 (1) Contract assets are included within prepaid expenses and other assets in our consolidated balance sheet. |
Summary of projected benefit obligation | The following table summarizes the components of the projected benefit obligation (in thousands): As of December 31, 2023 2022 2021 Projected benefit obligation at beginning of year $ 4,014 $ 3,351 $ 2,792 Service cost 723 838 759 Interest (74 ) (51 ) 29 Actuarial (gain)/loss 597 157 289 Benefits paid (184 ) (64 ) (543 ) Other (574 ) 0 254 Foreign currency translation adjustment (117 ) (217 ) (229 ) Projected benefit obligation at end of year $ 4,385 $ 4,014 $ 3,351 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of intangible assets | The majority of our intangible assets consist of assets acquired through the 2017 acquisition of DDI-US. We recognized no changes to the carrying value of goodwill during 2021, and recognized a $269.9 million impairment of goodwill and intangibles in 2022 (See Note: Significant Accounting Policies). The components of our intangible assets were as follows (in thousands): December 31, 2023 December 31, 2022 Useful life Gross Accumulated Impairment Net Gross Accumulated Impairment Net Goodwill indefinite $ 651,597 $ — $ (254,893 ) $ 396,704 $ 633,965 $ — $ (254,893 ) $ 379,072 Trademarks indefinite 50,000 — (15,000 ) 35,000 50,000 — (15,000 ) 35,000 Customer relationships 4 years 84,271 (75,387 ) — 8,884 75,000 (75,000 ) — — Purchased technology 5-10 years 52,707 (45,544 ) — 7,163 45,423 (45,423 ) — — Development costs 3 years 9,486 (9,486 ) — — 9,486 (9,486 ) — — Software 4-5 years 2,968 (2,444 ) — 524 2,462 (2,411 ) — 51 Total $ 851,029 $ (132,861 ) $ (269,893 ) $ 448,275 $ 816,336 $ (132,320 ) $ (269,893 ) $ 414,123 |
Summary of estimated amortization expense | Estimated annual amortization expense for the years ending December 31, 2024 and thereafter is a follows (in thousands): Year Expense 2024 3,113 2025 3,110 2026 3,107 2027 2,718 2028 and thereafter 4,523 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Summary of long-term debt instruments | The components of debt at December 31, 2023 and 2022 are as follows (in thousands): As of December 31, 2023 2022 4.60% Senior Notes due to related party due 2024 $ 38,778 $ 39,454 Total debt 38,778 39,454 Less: Short-term debt 38,778 — Total Long-term debt $ — $ 39,454 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Summary of Income (Loss) Before Income Tax | Income (loss) before income tax consisted of the following (in thousands): Year ended December 31, 2023 2022 2021 US $ 120,750 $ (310,483 ) $ 97,918 Korea 12,187 5,315 2,696 Other (1,792 ) — — Total income (loss) before income taxes $ 131,145 $ (305,168 ) $ 100,614 |
Summary of the Detail of Income Tax Expense for the Periods | The following table presents the detail of income tax expense for the periods presented (in thousands): Year ended December 31, 2023 2022 2021 Current: US $ 21 $ 11,571 $ 14,481 Korea 597 2,222 2,049 Other 36 — — Total current taxes: $ 654 $ 13,793 $ 16,530 Deferred: US $ 31,316 $ (85,206 ) $ 8,154 Korea (975 ) 223 (2,178 ) Other (778 ) — — Total deferred taxes $ 29,563 $ (84,983 ) $ 5,976 Total income tax expense (benefit) $ 30,217 $ (71,190 ) $ 22,506 |
Summary of Reconciliation of the Statutory Rate and Our Effective Tax Rate for the Periods | The following table presents a reconciliation of the statutory rate and our effective tax rate for the periods presented: Year ended December 31, 2023 2022 2021 Statutory tax rate 19.0 % 20.0 % 20.0 % Foreign jurisdiction rate differential 4.0 % 3.7 % 3.5 % Non-deductible interest 0.0 % 0.0 % 0.0 % Withholding taxes 0.4 % (0.6 )% 2.0 % Tax credits (0.3 )% 1.0 % (4.2 )% Valuation allowance 3.1 % (0.6 )% 1.6 % Other (3.1 )% (0.1 )% (0.6 )% Total tax rate 23.1 % 23.3 % 22.3 % |
Summary of Deferred Tax Assets and Liabilities as of the Dates | The following table presents the significant components of our deferred tax assets and liabilities as of the dates presented (in thousands): Year ended December 31, 2023 2022 Deferred income tax assets: Net operating loss carryforward $ 22,564 $ 5,934 Tax credit carryforward 13,844 14,171 Accruals and reserves 753 35,589 Accrued interest 1,118 762 Intangibles 18,026 17,632 Lease liability 1,411 1,120 Goodwill — 4,467 Interest carryforward 1,426 — Capitalized R&D costs 1,123 — Deferred tax assets $ 60,265 $ 79,675 Less: Valuation allowance (18,747 ) (18,893 ) Net deferred tax assets $ 41,518 $ 60,782 Deferred tax liabilities Goodwill (5,571 ) — Intangibles (5,210 ) — Right-of-use-assets (1,384 ) (1,038 ) Other (1,267 ) (454 ) Deferred tax liabilities $ (13,432 ) $ (1,492 ) Net deferred tax assets (liabilities) $ 28,086 $ 59,290 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Summary of the Calculation of Basic and Diluted Net Income Per Share | The following table presents the calculation of basic and diluted net income per share (in thousands except share and per share amounts): Year Ended December 31, 2023 2022 2021 Numerator: Net income (loss) applicable to common shareholders - basic $ 100,885 $ (233,978 ) $ 78,108 Dilutive effect of assumed conversion of convertible debt — — — Net income (loss) applicable to common shareholders – diluted $ 100,885 $ (233,978 ) $ 78,108 Denominator: Weighted average shares outstanding - basic 2,477,672 2,477,672 2,303,200 Dilutive effect of assumed conversion of convertible debt — — — Dilutive effect of assumed conversion of warrants — — — Weighted average shares outstanding – diluted 2,477,672 2,477,672 2,303,200 Basic net income (loss) per share $ 40.72 $ (94.43 ) $ 33.91 Diluted net income (loss) per share $ 40.72 $ (94.43 ) $ 33.91 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Summary of Cash Flow Information Related to Operating Leases | Supplemental balance sheet and statements of operations information related to operating leases is as follows (in thousands): Year Ended December 31, 2023 2022 2021 Operating lease right-of-use asset $ 7,577 $ 4,675 $ 7,764 Accrued rent 447 817 934 Total operating lease right-of-use asset, net $ 7,130 $ 3,858 $ 6,830 Short-term operating lease liabilities 3,157 3,050 3,076 Long-term operating lease liabilities 4,420 1,625 4,688 Total operating lease liabilities $ 7,577 $ 4,675 $ 7,764 Operating lease costs $ 3,201 $ 3,160 $ 3,313 Supplemental cash flow information related to leases was as follows (in thousands): Year Ended December 31, 2023 2022 2021 Cash paid for amounts included in the measurement of operating lease liabilities $ 3,501 $ 3,253 $ 3,262 Right-of-use assets obtained in exchange for new lease obligations $ 7,655 $ — $ — |
Summary of Maturities of Lease Liabilities | Maturities of lease liabilities are as follows (in thousands): As of December 31, 2023 Seattle Lease Seoul Lease Malta 2024 1,732 1,445 267 2025 — 1,501 — 2026 — 1,534 — 2027 — 1,541 — Thereafter — 971 — Less: Imputed Interest (130 ) (1,281 ) (3 ) Total 1,602 5,711 264 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Statement of Other Comprehensive Income [Abstract] | |
Summary of Accumulated Other Comprehensive Income (Loss) | Changes in accumulated other comprehensive income (AOCI) by component for the years ended December 31, 2023, 2022 and 2021 were as follows (in thousands): Currency Defined Total Balance at of January 1, 2021 $ 23,807 $ (992 ) $ 22,815 Foreign currency translation gain/(loss) 504 — 504 Actuarial gain/(loss), net of tax — (286 ) (286 ) Balance as of December 31, 2021 $ 24,311 $ (1,278 ) $ 23,033 Foreign currency translation gain/(loss) (3,519 ) — (3,519 ) Actuarial gain/(loss), net of tax — (154 ) (154 ) Balance as of December 31, 2022 $ 20,792 $ (1,432 ) $ 19,360 Foreign currency translation gain/(loss) 1,219 — 1,219 Actuarial gain/(loss), net of tax — (597 ) (597 ) Balance as of December 31, 2023 $ 22,011 $ (2,029 ) $ 19,982 |
Related party transactions (Tab
Related party transactions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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): Year Ended December 31, Statement of Income and Comprehensive Income Line 2023 2022 2021 Royalty expense (see Note 12) $ 2,565 $ 3,374 $ 4,335 Cost of revenue Interest expense (see Note 5) 1,762 1,780 2,010 Interest expense Rent expense (see Note 10) 1,268 1,251 1,397 General and administrative Other expense 1,636 225 206 General and administrative |
Summary of Amounts Due to our Parent | Amounts due to our parent, DoubleU Games, are as follows (in thousands): Year Ended December 31, Statement of Consolidated Balance Sheet Line Item 2023 2022 2021 4.6% Senior notes with related party $ 38,778 $ — $ — Current portion of 4.6% Senior notes with related party — 39,454 42,176 Long-Term borrowing with related party Royalties and other expenses 1,618 315 511 A/P and accrued expenses Short-term lease liability 1,298 1,066 1,309 Short-term operating lease liabilities Accrued interest on 4.6% Senior Notes with related party 9,501 — — Other current liabilities Accrued interest on 4.6% Senior Notes with related party — 7,852 6,454 Other non-current liabilities Long-term lease liability 4,414 — 1,078 Long-term lease liabilities |
Acquisition (Tables)
Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |
Schedule Of Recognized Identified Assets Acquired And Liabilities Assumed | The following table summarizes the allocation of the purchase consideration to the acquisition-date fair value of the assets acquired and liabilities assumed (in thousands): Total purchase consideration $ 30,653 Non-controlling interest $ 118 Identifiable Assets $ 13,838 Cash and cash equivalents 3,776 Accounts receivable, net 99 Prepaid expenses, and other assets 612 Intangible assets, net Platform Technology 6,987 Customers 8,893 Gaming Licenses 476 Property and equipment, net 34 Operating lease right-of-use assets, net 200 Other non-current assets 171 Accounts payable and accrued expenses (1,449 ) Income taxes payable (111 ) Short-term operating lease liabilities (191 ) Other current liabilities (3,794 ) Deferred tax liabilities, net (1,630 ) Other non-current liabilities (235 ) Goodwill $ 16,933 |
Schedule Of Unaudited Supplemental Pro Forma Historical Results Operation Of Company And Suprnation | The unaudited supplemental pro forma information below presents the combined historical results of operations of the Company and SuprNation, an acquisition completed in October 2023, as if SuprNation had been acquired as of January 1, 2022 (in thousands): Year ended December 31, 2023 2022 Revenue $ 330,462 $ 346,433 Net income (loss) attributable to DoubleDown Interactive Co., Ltd. $ 93,802 $ (246,585 ) |
Schedule Of Unaudited Supplemental Pro Forma Adjustment To Net Income Or Loss | The unaudited supplemental pro forma information above includes the following adjustments to net income (loss) in the appropriate pro forma period (in thousands): Year ended December 31, 2023 2022 An (increase) in amortization expense related to the fair value of acquired identifiable intangible assets, net of the amortization expense already reflected in actual historical results (2,571 ) (3,003 ) A decrease (increase) in expenses related to incentives (2,180 ) (6,464 ) A (increase) decrease in expenses related to operating and marketing expenses per the agreement (3,500 ) (7,000 ) An (increase) decrease in income tax provision 2,643 5,037 |
Description of Business - Addit
Description of Business - Additional Information (Details) $ / shares in Units, $ in Thousands, € in Millions | 2 Months Ended | 12 Months Ended | |||||||||||||
Oct. 31, 2023 EUR (€) | Dec. 28, 2022 KRW (₩) | Aug. 30, 2022 KRW (₩) | Sep. 02, 2021 USD ($) | Feb. 25, 2020 KRW (₩) | Dec. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2017 USD ($) | Dec. 31, 2023 KRW (₩) shares | Oct. 27, 2023 | Dec. 31, 2022 KRW (₩) shares | Sep. 02, 2021 KRW (₩) shares | Sep. 02, 2021 $ / shares | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||||
Business combination consideration transferred | $ | $ 825,000 | ||||||||||||||
Common stock, shares Issued | shares | 2,477,672 | 2,477,672 | |||||||||||||
Sale Of American Depositary Shares | shares | 5,263,000 | ||||||||||||||
Proceeds from issuance initial public offering | $ | $ 0 | $ 0 | $ 86,041 | ||||||||||||
Common Stock, Value, Outstanding | ₩ | ₩ 10,000 | ₩ 10,000 | |||||||||||||
Reduction of capital reserve | ₩ 330,000,000,000,000 | ₩ 70,000,000,000,000 | $ 0 | ||||||||||||
Foreign currency exchange rate, translation | 1.064 | ||||||||||||||
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] | |||||||||||||||
Proceeds from issuance initial public offering | $ | $ 86,000 | ||||||||||||||
Payments for underwriting expense | $ | $ 8,700 | ||||||||||||||
IPO [Member] | American Depositary Shares [Member] | |||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||||
Common stock, shares Issued | shares | 6,316,000 | ||||||||||||||
Sale of Stock, Price Per Share | $ / shares | $ 18 | ||||||||||||||
Double8 Games Co., Ltd.[Member] | |||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||||
Business combination consideration transferred | ₩ | ₩ 2,300,000,000 | ||||||||||||||
SuprNation [Member] | |||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||||
Business combination consideration transferred | € 34.3 | $ 36,500 | |||||||||||||
DoubleU Games Co., Ltd.[Member] | Equity Investee [Member] | |||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||||
Equity interest percentage | 67.10% | ||||||||||||||
STIC Special Situation Private Equity Fund [Member] | |||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||||
Minority interest ownership percentage | 20.20% | ||||||||||||||
Sale Of American Depositary Shares | shares | 1,053,000 | ||||||||||||||
International Gaming Technologies [Member] | IPO [Member] | |||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||||
Minority interest ownership percentage | 12.70% | ||||||||||||||
Stic [Member] | |||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||||
Minority interest ownership percentage | 20.20% |
Significant Accounting Polici_4
Significant Accounting Policies - Summary of Percentage of Revenues (Details) - Customer Concentration Risk [Member] | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue Concentration [Member] | Apple [Member] | |||
Revenue, Major Customer [Line Items] | |||
Concentration Risk, Percentage | 55% | 54.40% | 51.80% |
Revenue Concentration [Member] | Facebook [Member] | |||
Revenue, Major Customer [Line Items] | |||
Concentration Risk, Percentage | 16.80% | 24.10% | 25.90% |
Revenue Concentration [Member] | Google [Member] | |||
Revenue, Major Customer [Line Items] | |||
Concentration Risk, Percentage | 18.20% | 18.70% | 19.10% |
Account Receivable Concentration [Member] | Apple [Member] | |||
Revenue, Major Customer [Line Items] | |||
Concentration Risk, Percentage | 59.30% | 55.80% | 55.60% |
Account Receivable Concentration [Member] | Facebook [Member] | |||
Revenue, Major Customer [Line Items] | |||
Concentration Risk, Percentage | 9.90% | 20.40% | 23.70% |
Account Receivable Concentration [Member] | Google [Member] | |||
Revenue, Major Customer [Line Items] | |||
Concentration Risk, Percentage | 10.30% | 17.70% | 17.50% |
Account Receivable Concentration [Member] | Xsolla [Member] | |||
Revenue, Major Customer [Line Items] | |||
Concentration Risk, Percentage | 11.30% | 0% | 0% |
Significant Accounting Polici_5
Significant Accounting Policies - Summary of Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 308,864 | $ 321,027 | $ 363,205 | |
US [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | [1] | 267,721 | 282,016 | 317,605 |
International [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 41,143 | 39,011 | 45,600 | |
Mobile [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 232,485 | 241,915 | 264,911 | |
Web [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 76,379 | $ 79,112 | $ 98,294 | |
[1]Geographic location is presented as being derived from the U.S. when data is not available |
Significant Accounting Polici_6
Significant Accounting Policies - Summary of Contract Assets and Contract Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | |
Contract With Customer Asset And Liability [Line Items] | |||
Contract liabilities | $ 2,520 | $ 2,426 | |
Prepaid expenses and other assets [Member] | |||
Contract With Customer Asset And Liability [Line Items] | |||
Contract assets | [1] | $ 756 | $ 728 |
[1]Contract assets are included within prepaid expenses and other assets in our consolidated balance sheet. |
Significant Accounting Polici_7
Significant Accounting Policies - Summary of Projected Benefit Obligation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Projected benefit obligation at beginning of year | $ 4,014 | $ 3,351 | $ 2,792 |
Service cost | 723 | 838 | 759 |
Interest cost | (74) | (51) | 29 |
Actuarial (gain)/loss | 597 | 157 | 289 |
Benefits paid | (184) | (64) | (543) |
Other | (574) | 0 | 254 |
Foreign currency translation adjustment | (117) | (217) | (229) |
Projected benefit obligation at end of year | $ 4,385 | $ 4,014 | $ 3,351 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Interest Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Interest Expense |
Significant Accounting Polici_8
Significant Accounting Policies - Additional Information (Details) | 12 Months Ended | |||
Dec. 31, 2023 USD ($) segment | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | ||
Summary Of Significant Accounting Policies [Line Items] | ||||
Impairment of goodwill | $ 0 | $ 0 | ||
Defined contribution expense | 242,000 | $ 259,000 | 289,000 | |
Advertising Expense | $ 45,200,000 | 67,900,000 | 74,200,000 | |
Number of operating segments | segment | 1 | |||
Defined Benefit Plan, Funded (Unfunded) Status of Plan | $ 4,400,000 | 4,000,000 | ||
Impairment of goodwill and intangibles | [1] | 0 | 269,893,000 | $ 0 |
Reprting [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Impairment of goodwill and intangibles | 254,900,000 | |||
Trademarks [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Impairment of goodwill and intangibles | 15,000,000 | |||
Marketable [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Plan assets held | 4,400,000 | 3,500,000 | ||
Liquid Financial Instruments [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Plan assets held | $ 4,400,000 | $ 3,500,000 | ||
Employee contributions percentage one [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Defined contribution plan matching contribution percent | 1% | |||
Employee contributions percentage two [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Defined contribution plan matching contribution percent | 5% | |||
On the one percentage of employee contributions [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Defined contribution plan matching contribution percent of match | 100% | |||
On the next five percentage of employee contributions [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Defined contribution plan matching contribution percent of match | 50% | |||
[1]Excluding depreciation and amortization. |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Summary of Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross amount | $ 851,029 | $ 816,336 |
Accumulated Amortization | (132,861) | (132,320) |
Impairment | (269,893) | (269,893) |
Net Amount | $ 448,275 | 414,123 |
Useful life, Goodwill | indefinite | |
Gross amount, Goodwill | $ 651,597 | 633,965 |
Impairment, Goodwill | (254,893) | (254,893) |
Net Amount, Goodwill | $ 396,704 | 379,072 |
Trademarks [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Useful life | indefinite | |
Gross amount | $ 50,000 | 50,000 |
Impairment | (15,000) | (15,000) |
Net Amount | $ 35,000 | 35,000 |
Customer relationships [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Useful life | 4 years | |
Gross amount | $ 84,271 | 75,000 |
Accumulated Amortization | (75,387) | (75,000) |
Net Amount | 8,884 | |
Purchased technology [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross amount | 52,707 | 45,423 |
Accumulated Amortization | (45,544) | (45,423) |
Net Amount | $ 7,163 | |
Purchased technology [Member] | Maximum [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Useful life | 10 years | |
Purchased technology [Member] | Minimum [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Useful life | 5 years | |
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) |
Software [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross amount | 2,968 | 2,462 |
Accumulated Amortization | (2,444) | (2,411) |
Net Amount | $ 524 | $ 51 |
Software [Member] | Maximum [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Useful life | 5 years | |
Software [Member] | Minimum [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Useful life | 4 years |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Indefinite-lived Intangible Assets [Line Items] | ||||
Amortization of Intangible Assets | $ 500 | $ 3,600 | $ 17,700 | |
Impairment of goodwill and intangibles | [1] | $ 0 | $ 269,893 | $ 0 |
[1]Excluding depreciation and amortization. |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Summary of Estimated Amortization Expense (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2024 | $ 3,113 |
2025 | 3,110 |
2026 | 3,107 |
2027 | 2,718 |
2028 and thereafter | $ 4,523 |
Debt - Summary of Debt (Details
Debt - Summary of Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 38,778 | $ 39,454 |
Less: Short-term debt | 38,778 | |
Total Long-term debt | 0 | 39,454 |
4.6% senior notes due to related parties in 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 38,778 | $ 39,454 |
Debt - Additional Information (
Debt - Additional Information (Details) - 4.6% senior notes due to related parties in 2024 [Member] - KRW (₩) ₩ in Billions | 1 Months Ended | 12 Months Ended | |
Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2023 | |
Debt Instrument [Line Items] | |||
Related party transaction rate of interest | 4.60% | ||
Long term debt instrument maturity date | May 27, 2024 | ||
Principal [Member] | |||
Debt Instrument [Line Items] | |||
Repayment of related party debt | ₩ 30 | ₩ 20 | |
Interest [Member] | |||
Debt Instrument [Line Items] | |||
Repayment of related party debt | ₩ 3.1 | ₩ 1.2 | |
Stic [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument face amount | ₩ 100 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Short-Term Investments | $ 67,756 | $ 67,891 |
Fixed time or certificates of deposit maturity | 90 days | |
Fair value, inputs, level 3 [Member] | Senior Notes [Member] | ||
Amount by which the fair value of debt exceeds the carrying value | $ 700 | |
Money market funds [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Short-Term Investments | 67,800 | 67,900 |
Money market funds and Korean market government bonds [Member] | ||
Cash Equivalents, at Carrying Value | $ 206,900 | $ 217,400 |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income (Loss) Before Income Tax (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Income loss before income tax [Line Items] | |||
US | $ 120,750 | $ (310,483) | $ 97,918 |
Korea | 12,187 | 5,315 | 2,696 |
Other | (1,792) | 0 | 0 |
Income (loss) before income tax | $ 131,145 | $ (305,168) | $ 100,614 |
Income Taxes - Summary of the D
Income Taxes - Summary of the Detail of Income Tax Expense for the Periods (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current: | |||
US | $ 21 | $ 11,571 | $ 14,481 |
Korea | 597 | 2,222 | 2,049 |
Other | 36 | 0 | 0 |
Total current taxes: | 654 | 13,793 | 16,530 |
Deferred: | |||
US | 31,316 | (85,206) | 8,154 |
Korea | (975) | 223 | (2,178) |
Other | (778) | 0 | 0 |
Total deferred taxes | 29,563 | (84,983) | 5,976 |
Total income tax expense (benefit) | $ 30,217 | $ (71,190) | $ 22,506 |
Income Taxes - Summary of Recon
Income Taxes - Summary of Reconciliation of the Statutory Rate and Our Effective Tax Rate for the Periods (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Statutory tax rate | 19% | 20% | 20% |
Foreign jurisdiction rate differential | 4% | 3.70% | 3.50% |
Non-deductible interest | 0% | 0% | 0% |
Withholding taxes | 0.40% | (0.60%) | 2% |
Tax credits | (0.30%) | 1% | (4.20%) |
Valuation allowance | 3.10% | (0.60%) | 1.60% |
Other | (3.10%) | (0.10%) | (0.60%) |
Total tax rate | 23.10% | 23.30% | 22.30% |
Income Taxes - Summary of Defer
Income Taxes - Summary of Deferred Tax Assets and Liabilities as of the Dates (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred income tax assets: | ||
Net operating loss carryforward | $ 22,564 | $ 5,934 |
Tax credit carryforward | 13,844 | 14,171 |
Accruals and reserves | 753 | 35,589 |
Accrued interest | 1,118 | 762 |
Intangibles | 18,026 | 17,632 |
Lease liability | 1,411 | 1,120 |
Goodwill | 4,467 | |
Interest carryforward | 1,426 | |
Capitalized R&D costs | 1,123 | |
Deferred tax assets | 60,265 | 79,675 |
Less: Valuation allowance | (18,747) | (18,893) |
Net deferred tax assets | 41,518 | 60,782 |
Deferred tax liabilities | ||
Goodwill | (5,571) | |
Intangibles | (5,210) | |
Right-of-use-assets | (1,384) | (1,038) |
Other | (1,267) | (454) |
Deferred tax liabilities | (13,432) | (1,492) |
Net deferred tax assets (liabilities) | $ 28,086 | $ 59,290 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Tax credit carryforward, amount | $ 17.3 |
Tax credit carryforward expiration period | 2027 |
Operating loss expiration period | 2033 |
U.S. Federal [Member] | |
Operating loss carryforward, amount | $ 67.4 |
Foreign tax authority [Member] | |
Tax credit carryforward, amount | $ 13.7 |
Tax credit carryforward expiration period | 2028 |
U.S. State [Member] | |
Operating loss carryforward, amount | $ 28.7 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Details) - KRW (₩) | Dec. 31, 2023 | Dec. 31, 2022 |
Stockholders' Equity Note [Abstract] | ||
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common Stock, Value, Outstanding | ₩ 10,000 | ₩ 10,000 |
Net Income Per Share - Summary
Net Income Per Share - Summary of the Calculation of Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Numerator: | |||
Net income (loss) applicable to common shareholders – basic | $ 100,885 | $ (233,978) | $ 78,108 |
Dilutive effect of assumed conversion of convertible debt | 0 | 0 | 0 |
Net income (loss) applicable to common shareholders – diluted | $ 100,885 | $ (233,978) | $ 78,108 |
Denominator: | |||
Weighted average shares outstanding - basic | 2,477,672 | 2,477,672 | 2,303,200 |
Dilutive effect of assumed conversion of convertible debt | 0 | 0 | 0 |
Dilutive effect of assumed conversion of warrants | 0 | 0 | 0 |
Weighted average shares outstanding – diluted | 2,477,672 | 2,477,672 | 2,303,200 |
Basic net income (loss) per share | $ 40.72 | $ (94.43) | $ 33.91 |
Diluted net income (loss) per share | $ 40.72 | $ (94.43) | $ 33.91 |
Leases - Additional Information
Leases - Additional Information (Details) - ft² ft² in Thousands | 12 Months Ended | |||
Oct. 01, 2019 | Dec. 31, 2023 | Dec. 31, 2022 | Jul. 01, 2012 | |
Operating lease weighted average remaining lease term | 3 years 9 months 18 days | 1 year 7 months 6 days | ||
Operating lease weighted average discount rate | 5.80% | 5.20% | ||
Seattle [Member] | ||||
Area of Land | 49,375 | |||
Lessee, Operating Lease, Renewal Term | 61 months | |||
Lessee Operating Lease Expired Term | 2024-10 | |||
Gangnamgu [Member] | ||||
Area of Land | 28,497 | |||
Lessee Operating Sub Lease Expired Term | 2028-09 | |||
Malta [Member] | ||||
Area of Land | 4,770 | |||
Lessee Operating Lease Expired Term | 2024-10 |
Leases - Summary of Cash Flow I
Leases - Summary of Cash Flow Information Related to Operating Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |||
Leases [Abstract] | |||||
Operating lease right-of-use asset | $ 7,577 | $ 4,675 | $ 7,764 | ||
Accrued rent | 447 | 817 | 934 | ||
Total operating lease right-of-use asset, net | 7,130 | 3,858 | 6,830 | ||
Short-term operating lease liabilities | 3,157 | [1] | 3,050 | [1] | 3,076 |
Long-term operating lease liabilities | 4,420 | [2] | 1,625 | [2] | 4,688 |
Total operating lease liabilities | 7,577 | 4,675 | 7,764 | ||
Operating lease costs | 3,201 | 3,160 | 3,313 | ||
Cash paid for amounts included in the measurement of operating lease liabilities | 3,501 | 3,253 | 3,262 | ||
Right-of-use assets obtained in exchange for new lease obligations | $ 7,655 | $ 0 | $ 0 | ||
[1]Includes related party operating lease liability of $1,298 and $1,066 at December 31, 2023 and 2022, respectively (see Note 13).[2]Includes related party operating lease liability of $4,414 and $0 at December 31, 2023 and 2022, respectively (see Note 13). |
Leases - Summary of Maturities
Leases - Summary of Maturities of Lease Liabilities (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Malta [Member] | |
2024 | $ 267 |
2025 | 0 |
2026 | 0 |
2027 | 0 |
Thereafter | 0 |
Less:Imputed Intrest | (3) |
Total | 264 |
Seattle Lease [Member] | |
2024 | 1,732 |
2025 | 0 |
2026 | 0 |
2027 | 0 |
Thereafter | 0 |
Less:Imputed Intrest | (130) |
Total | 1,602 |
Seoul Lease [Member] | |
2024 | 1,445 |
2025 | 1,501 |
2026 | 1,534 |
2027 | 1,541 |
Thereafter | 971 |
Less:Imputed Intrest | (1,281) |
Total | $ 5,711 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income - Summary of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | $ 19,360 | $ 23,033 | $ 22,815 |
Foreign currency translation gain/(loss) | 1,219 | (3,519) | 504 |
Actuarial gain/(loss), net of tax | (597) | (154) | (286) |
Ending balance | 19,982 | 19,360 | 23,033 |
Currency Translation Adjustments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | 20,792 | 24,311 | 23,807 |
Foreign currency translation gain/(loss) | 1,219 | (3,519) | 504 |
Ending balance | 22,011 | 20,792 | 24,311 |
Defined Benefit Pension Plan [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (1,432) | (1,278) | (992) |
Actuarial gain/(loss), net of tax | (597) | (154) | (286) |
Ending balance | $ (2,029) | $ (1,432) | $ (1,278) |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Aug. 29, 2022 USD ($) | Dec. 31, 2023 USD ($) | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) titles | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2018 | Dec. 31, 2017 | |
Reasonably possible loss contingency | $ 5,000,000 | $ 5,000,000 | ||||||
Loss contingency accrual, payments | $ 95,250,000 | |||||||
International Gaming Technologies [Member] | ||||||||
Percentage of royalty on revenue | 10% | 10% | ||||||
Long-term purchase commitment, period | 10 years | |||||||
Cost of revenue | $ 5,300,000 | $ 7,000,000 | $ 11,100,000 | |||||
DoubleU Games License Agreement [Member] | ||||||||
Number of titled games | titles | 49 | |||||||
Game Development And Services Agreement With Double U Games [Member] | ||||||||
Services fees for game maintanance and product planning | $ 1,400,000 | |||||||
Maximum [Member] | ||||||||
Litigation settlement, amount awarded to other party | $ 145,250,000 | |||||||
Loss contingency accrual, payments | $ 95,250,000 | |||||||
Maximum [Member] | International Gaming Technologies [Member] | ||||||||
Percentage of royalty on revenue | 15% | 15% | ||||||
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 | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Related Party Transaction [Line Items] | ||||
Interest expense | [1] | $ 1,798 | $ 1,831 | $ 2,011 |
Cost of revenue [Member] | ||||
Related Party Transaction [Line Items] | ||||
Royalty expense | 2,565 | 3,374 | 4,335 | |
Interest expense [Member] | ||||
Related Party Transaction [Line Items] | ||||
Interest expense | 1,762 | 1,780 | 2,010 | |
General and administrative expense [Member] | ||||
Related Party Transaction [Line Items] | ||||
Rent expense | 1,268 | 1,251 | 1,397 | |
Other expenses | $ 1,636 | $ 225 | $ 206 | |
[1]Includes related party interest expense of $1,762, $1,780, and $2,010 for the years ended December 31, 2023, 2022 and 2021, respectively (see Note 13). |
Related Party Transactions - _2
Related Party Transactions - Summary of Amounts Due to our Parent (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Schedule of related Party transactions due to our parent [Line Items] | |||||
Short-term lease liability | $ 3,157 | [1] | $ 3,050 | [1] | $ 3,076 |
Long-term lease liability | $ 4,420 | [2] | 1,625 | [2] | 4,688 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Short-term lease liability | ||||
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Long-term lease liability | ||||
Short-term operating lease liabilities [Member] | |||||
Schedule of related Party transactions due to our parent [Line Items] | |||||
Short-term lease liability | $ 1,298 | 1,066 | 1,309 | ||
Long-term lease liabilities [Member] | |||||
Schedule of related Party transactions due to our parent [Line Items] | |||||
Long-term lease liability | 4,414 | 0 | 1,078 | ||
Current Portion Of Borrowing With Related Party [Member] | Related Party [Member] | |||||
Schedule of related Party transactions due to our parent [Line Items] | |||||
4.6% Senior Notes with related party | 38,778 | 0 | 0 | ||
Long-Term borrowing with related party [Member] | Related Party [Member] | |||||
Schedule of related Party transactions due to our parent [Line Items] | |||||
4.6% Senior Notes with related party | 0 | 39,454 | 42,176 | ||
A/P and accrued expenses [Member] | |||||
Schedule of related Party transactions due to our parent [Line Items] | |||||
Royalties and other expenses | 1,618 | 315 | 511 | ||
Other current liabilities [Member] | |||||
Schedule of related Party transactions due to our parent [Line Items] | |||||
Accrued interest on 4.6% Senior Notes with related party | 9,501 | 0 | 0 | ||
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 | $ 0 | $ 7,852 | $ 6,454 | ||
[1]Includes related party operating lease liability of $1,298 and $1,066 at December 31, 2023 and 2022, respectively (see Note 13).[2]Includes related party operating lease liability of $4,414 and $0 at December 31, 2023 and 2022, respectively (see Note 13). |
Acquisition - Additional Inform
Acquisition - Additional Information (Details) - USD ($) $ in Thousands | 2 Months Ended | 12 Months Ended | |||
Oct. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Business Acquisition [Line Items] | |||||
Revenues | $ 308,864 | $ 321,027 | $ 363,205 | ||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | $ 131,145 | (305,168) | $ 100,614 | ||
SuprNation [Member] | |||||
Business Acquisition [Line Items] | |||||
Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life | 6 years 7 months 6 days | ||||
Cash incentive/compensation plan, key employee may earn | $ 6,500 | ||||
Cash incentive/compensation plan, key employee may earn after the period | 18 months | ||||
Revenues | $ 4,300 | $ 330,462 | $ 346,433 | ||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | $ 1,800 | ||||
SuprNation [Member] | Escrow [Member] | |||||
Business Acquisition [Line Items] | |||||
Cash incentive/compensation plan, key employee may earn | $ 5,500 | ||||
SuprNation [Member] | Patented Technology [Member] | |||||
Business Acquisition [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 10 years | 10 years | |||
SuprNation [Member] | Customer Lists [Member] | |||||
Business Acquisition [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 4 years | 4 years | |||
SuprNation [Member] | Licensing Agreements [Member] | |||||
Business Acquisition [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 5 years | 5 years | |||
European Union [Member] | SuprNation [Member] | |||||
Business Acquisition [Line Items] | |||||
Total cash purchase price | $ 30,600 | ||||
Deferred Payment | 6,500 | ||||
Professional Fees | 2,000 | ||||
European Union [Member] | SuprNation [Member] | Escrow [Member] | |||||
Business Acquisition [Line Items] | |||||
Payment into escrow | $ 5,500 |
Acquisition - Schedule Of Recog
Acquisition - Schedule Of Recognized Identified Assets Acquired And Liabilities Assumed (Details) - USD ($) $ in Thousands | Oct. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 |
Business Acquisition [Line Items] | |||
Non-controlling interest | $ (157) | $ 0 | |
Goodwill | $ 396,704 | $ 379,072 | |
SuprNation [Member] | |||
Business Acquisition [Line Items] | |||
Total purchase consideration | $ 30,653 | ||
Non-controlling interest | 118 | ||
Identifiable Assets | 13,838 | ||
Cash and cash equivalents | 3,776 | ||
Accounts receivable, net | 99 | ||
Prepaid expenses, and other assets | 612 | ||
Platform Technology | 6,987 | ||
Customers | 8,893 | ||
Gaming Licenses | 476 | ||
Property and equipment, net | 34 | ||
Operating lease right-of-use assets, net | 200 | ||
Other non-current assets | 171 | ||
Accounts payable and accrued expenses | (1,449) | ||
Income taxes payable | (111) | ||
Short-term operating lease liabilities | (191) | ||
Other current liabilities | (3,794) | ||
Deferred tax liabilities, net | (1,630) | ||
Other non-current liabilities | (235) | ||
Goodwill | $ 16,933 |
Acquisition - Schedule Of Unaud
Acquisition - Schedule Of Unaudited Supplemental Pro Forma Historical Results Operation Of Company And Suprnation (Details) - USD ($) $ in Thousands | 2 Months Ended | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Business Acquisition [Line Items] | ||||
Revenue | $ 308,864 | $ 321,027 | $ 363,205 | |
Net income (loss) attributable to DoubleDown Interactive Co., Ltd. | 100,885 | (233,978) | $ 78,108 | |
SuprNation [Member] | ||||
Business Acquisition [Line Items] | ||||
Revenue | $ 4,300 | 330,462 | 346,433 | |
Net income (loss) attributable to DoubleDown Interactive Co., Ltd. | $ 93,802 | $ (246,585) |
Acquisition - Schedule Of Una_2
Acquisition - Schedule Of Unaudited Supplemental Pro Forma Adjustment To Net Income Or Loss (Details) - SuprNation [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Business Acquisition [Line Items] | ||
An (increase) in amortization expense related to the fair value of acquired identifiable intangible assets, net of the amortization expense already reflected in actual historical results | $ (2,571) | $ (3,003) |
A decrease (increase) in expenses related to incentives | (2,180) | (6,464) |
A (increase) decrease in expenses related to operating and marketing expenses per the agreement | (3,500) | (7,000) |
An (increase) decrease in income tax provision | $ 2,643 | $ 5,037 |