Cover Page
Cover Page | 3 Months Ended |
Mar. 31, 2024 | |
Document Information [Line Items] | |
Document Type | 6-K |
Amendment Flag | false |
Document Period End Date | Mar. 31, 2024 |
Entity Registrant Name | DoubleDown Interactive Co., Ltd. |
Entity Central Index Key | 0001799567 |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income and Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | ||
Income Statement [Abstract] | |||
Revenue | $ 88,143 | $ 77,596 | |
Operating expenses: | |||
Cost of revenue | [1],[2] | 27,373 | 25,719 |
Sales and marketing | [1] | 14,760 | 16,045 |
Research and development | [1] | 3,256 | 5,043 |
General and administrative | [1],[3] | 10,871 | 5,343 |
Depreciation and amortization | 827 | 54 | |
Total operating expenses | 57,087 | 52,204 | |
Operating income | 31,056 | 25,392 | |
Other income (expense): | |||
Interest expense | [4] | (409) | (462) |
Interest income | 3,431 | 3,130 | |
Gain on foreign currency transactions | 717 | 252 | |
Gain on foreign currency remeasurement | 3,589 | 2,166 | |
Gain (loss) on short-term investments | (7) | 0 | |
Other, net | (24) | (47) | |
Total other income (expense), net | 7,297 | 5,039 | |
Income before income tax | 38,353 | 30,431 | |
Income tax (expense) benefit | (7,992) | (6,759) | |
Net income | 30,361 | 23,672 | |
Less: Net income attributable to noncontrolling interests | 53 | 0 | |
Net income attributable to DoubleDown Interactive Co., Ltd. | 30,308 | 23,672 | |
Other comprehensive income (expense): | |||
Pension adjustments, net of tax | 136 | (157) | |
Loss on foreign currency translation | (3,086) | (1,181) | |
Comprehensive income | $ 27,358 | $ 22,334 | |
Earnings per share: | |||
Basic | $ 12.23 | $ 9.55 | |
Diluted | $ 12.23 | $ 9.55 | |
Weighted average shares outstanding: | |||
Basic | 2,477,672 | 2,477,672 | |
Diluted | 2,477,672 | 2,477,672 | |
[1]Excluding depreciation and amortization.[2]Includes related party royalty expense of $619 and $752 for the three months ended March 31, 2024 and 2023, respectively (See Note 12).[3]Includes related party rent and general and administrative expense of $1,459 and $414 for the three months ended March 31, 2024 and 2023, respectively (See Note 12).[4]Includes related party interest expense of $432 and $445 for the three months ended March 31, 2024 and 2023, respectively (See Note 12). |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Income and Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | ||
Interest expense related party | [1] | $ 409 | $ 462 |
Cost of sales [Member] | |||
Royalty expense | 619 | 752 | |
Related Party [Member] | |||
Interest expense related party | 432 | 445 | |
Related Party [Member] | Cost of sales [Member] | |||
Royalty expense | 619 | 752 | |
Related Party [Member] | General and administrative expense [Member] | |||
Rental and general and administrative expenses | $ 1,459 | $ 414 | |
[1]Includes related party interest expense of $432 and $445 for the three months ended March 31, 2024 and 2023, respectively (See Note 12). |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | |
Current assets: | |||
Cash and cash equivalents | $ 209,863 | $ 206,911 | |
Short-term investments | 99,653 | 67,756 | |
Accounts receivable, net | 34,183 | 32,517 | |
Prepaid expenses, and other assets | 10,044 | 8,570 | |
Total current assets | 353,743 | 315,754 | |
Property and equipment, net | 399 | 444 | |
Operating lease right-of-use assets, net | 6,173 | 7,130 | |
Intangible assets, net | 50,430 | 51,571 | |
Goodwill | 396,351 | 396,704 | |
Deferred tax asset | 21,878 | 28,934 | |
Other non-current assets | 2,006 | 2,807 | |
Total assets | 830,980 | 803,344 | |
Current liabilities: | |||
Accounts payable and accrued expenses | [1] | 14,464 | 13,293 |
Short-term operating lease liabilities | [2] | 2,562 | 3,157 |
Income taxes payable | 1,170 | 112 | |
Contract liabilities | 2,409 | 2,520 | |
Current portion of borrowings with related party | [3] | 37,125 | 38,778 |
Other current liabilities | [4] | 10,624 | 10,645 |
Total current liabilities | 68,354 | 68,505 | |
Long-term operating lease liabilities | [5] | 3,975 | 4,420 |
Deferred tax liabilities, net | 567 | 848 | |
Other non-current liabilities | 2,784 | 1,681 | |
Total liabilities | 75,680 | 75,454 | |
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 | 17,095 | 19,982 | |
Retained earnings | 357,580 | 327,273 | |
Total shareholders' equity attributable to shareowners of DoubleDown Interactive Co. Ltd. | 755,153 | 727,733 | |
Equity attributable to noncontrolling interests | 147 | 157 | |
Total equity | 755,300 | 727,890 | |
Total liabilities and shareholders' equity | $ 830,980 | $ 803,344 | |
[1]Includes related party royalty and other payables of $1,274 and $1,618 at March 31, 2024 and December 31, 2023, respectively (see Note 12).[2]Includes related party operating lease liability of $1,251 and $1,298 at March 31, 2024 and December 31, 2023, respectively (see Note 12).[3]Includes related party notes payable of $37,125 and $38,778 at March 31, 2024 and December 31, 2023, respectively (see Note 12).[4]Includes related party interest payable of $9,522 and $9,501 at March 31, 2024 and December 31, 2023, respectively (see Note 12).[5]Includes related party operating lease liability of $3,975 and $4,414 at March 31, 2024 and December 31, 2023, respectively (see Note 12). |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) $ in Thousands | Mar. 31, 2024 USD ($) shares | Mar. 31, 2024 ₩ / shares | Dec. 31, 2023 USD ($) shares | Dec. 31, 2023 ₩ / 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] | $ 2,562 | $ 3,157 | ||
Current portion of borrowing with related party | [2] | 37,125 | 38,778 | ||
Operating lease liability non current | [3] | 3,975 | 4,420 | ||
Related Party [Member] | |||||
Accrued royalties current and non current | 1,274 | 1,618 | |||
Operating lease liability current | 1,251 | 1,298 | |||
Current portion of borrowing with related party | 37,125 | 38,778 | |||
Operating lease liability non current | 3,975 | 4,414 | |||
Related Party [Member] | Other current liabilities [Member] | |||||
Interest payable current | $ 9,522 | $ 9,501 | |||
[1]Includes related party operating lease liability of $1,251 and $1,298 at March 31, 2024 and December 31, 2023, respectively (see Note 12).[2]Includes related party notes payable of $37,125 and $38,778 at March 31, 2024 and December 31, 2023, respectively (see Note 12).[3]Includes related party operating lease liability of $3,975 and $4,414 at March 31, 2024 and December 31, 2023, respectively (see Note 12). |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Common stock [Member] | Additional paid-in-capital [Member] | Accumulated other comprehensive income/(loss) [Member] | Retained earnings (Deficit) [Member] | Noncontrolling Interest [Member] |
Beginning balance at Dec. 31, 2022 | $ 626,226 | $ 21,198 | $ 359,280 | $ 19,360 | $ 226,388 | |
Beginning balance (in shares) at Dec. 31, 2022 | 2,477,672 | |||||
Net Income | 23,672 | 23,672 | ||||
Pension adjustments, net of tax | (157) | (157) | ||||
Loss on foreign currency translation, net of tax | (1,181) | (1,181) | ||||
Ending balance at Mar. 31, 2023 | 648,560 | $ 21,198 | 359,280 | 18,022 | 250,060 | $ 0 |
Ending balance (in shares) at Mar. 31, 2023 | 2,477,672 | |||||
Beginning balance at Dec. 31, 2023 | 727,890 | $ 21,198 | 359,280 | 19,982 | 327,273 | 157 |
Beginning balance (in shares) at Dec. 31, 2023 | 2,477,672 | |||||
Net Income | 30,361 | 30,308 | 53 | |||
Pension adjustments, net of tax | 136 | 136 | ||||
Loss on foreign currency translation, net of tax | (3,086) | (3,023) | (62) | |||
Ending balance at Mar. 31, 2024 | $ 755,300 | $ 21,198 | $ 359,280 | $ 17,095 | $ 357,580 | $ 147 |
Ending balance (in shares) at Mar. 31, 2024 | 2,477,672 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flow from (used in) operating activities: | ||
Net Income | $ 30,361 | $ 23,672 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Depreciation and amortization | 827 | 55 |
Gain on foreign currency remeasurement | (3,589) | (2,166) |
Loss on short-term investments | 7 | 0 |
Deferred taxes | 6,756 | 6,063 |
Accounts receivable | (1,808) | (7,707) |
Prepaid expenses, other current and non-current assets | (269) | 274 |
Accounts payable, accrued expenses and other payables | 1,291 | (1,046) |
Contract liabilities | (112) | (208) |
Income tax payable | 158 | 5 |
Other current and non-current liabilities | 1,293 | 284 |
Net cash flows from (used in) operating activities | 34,915 | 19,226 |
Cash flow from (used in) investing activities: | ||
Purchases of intangible assets | 0 | (4) |
Purchases of property and equipment | (14) | (40) |
Purchases of short-term investments | (31,934) | (19,298) |
Sales of short-term investments | 0 | 33,725 |
Net cash flows from (used in) investing activities | (31,948) | 14,383 |
Cash flow from (used in) financing activities: | ||
Net cash flows from (used in) financing activities: | 0 | 0 |
Net foreign exchange difference on cash and cash equivalents | (15) | (22) |
Net decrease in cash and cash equivalents | 2,952 | 33,587 |
Cash and cash equivalents at beginning of period | 206,911 | 217,352 |
Cash and cash equivalents at end of period | 209,863 | 250,939 |
Cash paid during year for: | ||
Interest | 81 | 0 |
Income taxes | $ 93 | $ 82 |
Description of Business
Description of Business | 3 Months Ended |
Mar. 31, 2024 | |
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 32.9% of our outstanding shares are held by STIC Special Situation Private Equity Fund (“STIC”, 20.2%) and the remainder by participants in our IPO (12.7%). In 2017, DDI acquired DoubleDown Interactive, LLC (“DDI-US”) DDI-US, We develop and publish digital gaming content on various mobile and web platforms through our multi-format interactive all-in-one DoubleDown Casino, DoubleDown Classic, and DoubleDown Fort Knox 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. Basis of preparation and consolidation Our unaudited condensed consolidated financial statements (“financial statements”) have been prepared in conformity with generally accepted accounting principles in the United States of America (“GAAP”) and the applicable rules and regulations of the Securities and Exchange Commission regarding interim financial information. Certain information and note disclosures normally included in the consolidated financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Our unaudited condensed consolidated financial statements include all adjustments of a normal, recurring nature necessary for the fair statement of the results for the interim periods presented. The results for the interim period presented are not necessarily indicative of those for the full year. The condensed consolidated financial statements should be read in conjunction with our consolidated financial statements for the year ended December 31, 2023. The condensed consolidated financial statements include the balances and accounts of DDI and our controlled subsidiaries. All significant inter-company transactions, balances and unrealized gains or losses have been eliminated. We view our operations and manage our business as one operating segment. Use of estimates The preparation of financial statements in conformity with Generally Accepted Accounting Principles (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 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 federal 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 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 Three months ended March 31, 2024 2023 Apple 50.3 % 55.1 % Facebook 14.8 % 18.4 % Google 16.2 % 18.7 % Accounts Receivable Concentration As of March 31, As of December 31, 2024 2023 Apple 62.7 % 59.3 % Facebook 10.3 % 9.9 % Google 11.3 % 10.3 % Xsolla 12.9 % 11.3 % |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Note 2: Revenue from Contracts with Customers Our social and mobile apps operate on a free-to-play Once obtained, virtual currency (either free or purchased) cannot be redeemed for cash nor exchanged for anything other than gameplay within our apps. When virtual currency is played on any of our games, the game player could “win” and would be awarded additional virtual currency or could “lose” and lose the future use of that virtual currency. We have concluded that our virtual currency represents consumable goods, because the game player does not receive any additional benefit from the games and is not entitled to any additional rights once the virtual currency is substantially consumed. Control transfers when the virtual currency is consumed for gameplay. We recognize revenue from player purchases of virtual currency based on the consumption of this currency. We determined through a review of play behavior that game players generally do not purchase additional virtual currency until their existing virtual currency balances, regardless of source (e.g., bonus currency, gifted currency through social media channels, daily free chips, etc.), have been substantially consumed. Based on an analysis of customers’ historical play behavior, purchase behavior, and the amount of virtual currency outstanding, we are able to estimate the rate that virtual currency is consumed during gameplay. Accordingly, revenue is recognized using a user-based revenue model with the period between purchases representing the timing difference between virtual currency purchase and consumption. This timing difference is relatively short. We continuously gather and analyze detailed customer play behavior and assess this data in relation to our judgments used for revenue recognition. We generate a small portion of our revenue from subscription services. All monthly subscription fees are prepaid and non-refundable one-month Disaggregation of revenue We believe disaggregation of our revenue based on platform and geographical location are appropriate categories that depict how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. The following table represents our disaggregation of revenue between mobile and web platforms (in thousands): Three months ended March 31, 2024 2023 Mobile $ 60,437 $ 63,330 Web 27,706 14,266 Total $ 88,143 $ 77,596 The following table presents our revenue disaggregated based on the geographical location of our players (in thousands): Three months ended March 31, 2024 2023 U.S. (1) $ 70,193 $ 68,203 International 17,950 9,393 Total $ 88,143 $ 77,596 (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. Contract assets, contract liabilities and other disclosures Customer payments are based on the payment terms established in our contracts. Payments for purchase of virtual currency are required at time of purchase, are non-refundable non-cancellable The following table summarized our opening and closing balances in contract assets and contract liabilities (in thousands): As of March 31, As of December 31, 2024 2023 Contract assets (1) $ 723 $ 756 Contract liabilities 2,409 2,520 (1) Contract assets are included within prepaid expenses and other assets in our consolidated balance sheet. |
Short-term investments
Short-term investments | 3 Months Ended |
Mar. 31, 2024 | |
Short-Term Investments [Abstract] | |
Short-term investments | Note 3: Short-term investments The Company holds investments in marketable securities with the intention of selling these investments within a relatively short period of time (3-6 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and intangible assets | Note 4: Goodwill and intangible assets There were no changes to the carrying amount of goodwill in the three months ended March 31, 2024. We recognized an aggregate $269.9 million impairment of goodwill and intangibles in 2022. Changes in the carrying amount of intangible assets were as follows (in thousands): March 31, 2024 December 31, 2023 Accumulated Accumulated Useful life Gross amount amortization Impairment Net amount Gross amount amortization Impairment Net amount Goodwill indefinite $ 651,244 $ — $ (254,893 ) $ 396,351 $ 651,597 $ — $ (254,893 ) $ 396,704 Trademarks indefinite 50,000 — (15,000 ) 35,000 50,000 — (15,000 ) 35,000 Customer relationships 4 years 84,065 (75,944 ) — 8,121 84,271 (75,387 ) — 8,884 Purchased technology 5-10 years 52,545 (45,720 ) — 6,825 52,707 (45,544 ) — 7,163 Development costs 3 years 9,486 (9,486 ) — — 9,486 (9,486 ) — — Software 4-5 2,954 (2,470 ) — 484 2,968 (2,444 ) — 524 Total $ 850,294 $ (133,620 ) $ (269,893 ) $ 446,781 $ 851,029 $ (132,861 ) $ (269,893 ) $ 448,275 The following reflects amortization expense related to intangible assets included with depreciation and amortization (in millions): Three months ended March 31, 2024 2023 Amortization Expense 0.8 million 0.0 million |
Debt
Debt | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Debt | Note 5: Debt The components of debt at March 31, 2024 and December 31, 2023 are as follows (in thousands): As of March 31, As of December 31, 2024 2023 4.60% Senior Notes due to related party due 2024 $ 37,125 $ 38,778 Total debt 37,125 38,778 Less: Short-term debt 37,125 38,778 Total Long-term debt $ — $ — 4.60% Senior Notes due to related party due 2024 The 4.60% Senior Notes due to related party, which collectively total KRW100 billion 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 | 3 Months Ended |
Mar. 31, 2024 | |
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 government bonds totaling $209.9 million, 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 $99.7 million as of March 31, 2024. As of December 31, 2023, our cash equivalents (Level 1 of fair value hierarchy) consisted of money market funds and Korean government bonds totaling $206.9 million, 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. 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 March 31, 2024, the fair value of our senior notes (a Level 3 estimate) was approximately $0.3 million lower than face value. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 7: Income taxes We are subject to federal and state income taxes in Korea, the United States, Malta and Sweden. We account for our provision for income taxes in accordance with ASC 740, Income Taxes, which requires an estimate of the annual effective tax rate for the full year to be applied to the interim period, taking into account year-to-date amounts Our effective tax rate varies from the statutory Korean income tax rate due to the effect of foreign rate differential, withholding taxes, state and local income taxes, notional interest deduction, FDII deduction, and valuation allowances on deferred tax assets in certain jurisdictions. Our effective tax rate could fluctuate significantly from quarter to quarter based on variations in the estimated and actual level of pre-tax income regarding non-deductible expenses The income tax expense of $8.0 million for the three months ended March 31, 2024, reflects an effective tax rate of 20.8% which is lower than the effective tax rate of 22.2% for the three months ended March 31, 2023. The decrease in rate from 2023 to 2024 is primarily due to an increase in the FDII benefit and notional interest deduction. The effective tax rate of 20.8% for the three months ended March 31, 2024, is higher than the Korean statutory rate of 19%, primarily due to foreign rate differential and state taxes. |
Net Income Per Share
Net Income Per Share | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Note 8: Net income per share Basic net income per share is computed by dividing net income by the weighted-average number of common shares outstanding for the period, without consideration for potentially dilutive securities. Diluted net income per share is computed by dividing net income by the weighted-average number of common shares and dilutive common share equivalents outstanding for the period determined using the treasury-stock and if-converted methods. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Leases | Note 9: Leases We are a lessee for corporate office space in Seattle, Washington, Swieqi, Malta and Seoul, Korea. The lessor for our Seoul, Korea leases is our controlling shareholder, DoubleU Games (see Note 12). Our leases have remaining terms of seven The Seattle, Washington lease originated in July 2012 and consists of 49,375 square feet. The lease will expire in October 2024. 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. In September 2023, we executed a new sublease with our controlling shareholder, DUG, for 28,497 square feet of office space in Gangnam-gu, Seoul, Korea. The lease term commences in October 2023, and will expire in September 2028. Supplemental balance sheet and cash flow information related to operating leases is as follows (in thousands): As of March 31, 2024 As of December 31, 2023 Operating lease right-of-use $ 6,538 $ 7,577 Accrued rent 365 447 Total operating lease right-of-use $ 6,173 $ 7,130 Short-term operating lease liabilities 2,562 3,157 Long-term operating lease liabilities 3,975 4,420 Total operating lease liabilities $ 6,538 $ 7,577 Operating lease costs $ 866 $ 3,201 Supplemental cash flow information related to leases was as follows (in thousands): Three months ended Year ended March 31, 2024 December 31, 2023 Cash paid for amounts included in the measurement of operating lease liabilities $ 859 $ 3,501 Right-of-use $ 0 $ 7,655 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 3 Months Ended |
Mar. 31, 2024 | |
Statement of Other Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Income | Note 10: Accumulated other comprehensive income Changes in accumulated other comprehensive income (AOCI) by component for the three months ended March 31, 2024 and 2023 were as follows (in thousands): Three months ended March 31, 2024 Currency Translation Defined Benefit Total Balance at January 1, 2024 $ 22,011 $ (2,029 ) $ 19,982 Foreign currency translation loss, net of tax (3,023 ) — (3,023 ) Actuarial gain/(loss), net of tax — 136 136 Balance as of March 31, 2024 $ 18,988 $ (1,893 ) $ 17,095 Three months ended March 31, 2023 Currency Translation Defined Benefit Total Balance at January 1, 2023 $ 20,792 $ (1,432 ) $ 19,360 Foreign currency translation loss, net of tax (1,181 ) — (1,181 ) Actuarial gain/(loss), net of tax — (157 ) (157 ) Balance as of March 31, 2023 $ 19,611 $ (1,589 ) $ 18,022 We do 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 | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Note 11: Commitments and contingencies Legal contingencies On April 12, 2018, a class-action lawsuit was filed against DDI-US DDI-US Benson DDI-US 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, DDI-US, non-exclusive 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 March 31, 2024, we licensed approximately 49 game titles under the terms of this agreement. In October 2023, we, through DDI-US, DDI-US International Gaming Technologies (“IGT”) In 2017, we entered into a Game Development, Distribution, and Services agreement with IGT, and it was subsequently amended on January 1, 2019. Under the terms of the agreement, IGT will deliver game assets so that we can port (a process of converting the assets into functioning slot games by platform) the technology for inclusion in our gaming apps. The agreement includes game assets that are used to create new games. Under the agreement, we pay IGT a royalty rate of 7.5% of revenue for their proprietary assets and 15% of revenue for third-party game asset types. We also pay a monthly fee for porting. The initial term of the agreement is ten (10) years with up to two additional five-year periods. Costs incurred in connection with this agreement for the three months ended March 31, 2024 and 2023 totaled $1.8 million and $2.0 million, respectively, and are recognized as a component of cost of revenue. |
Related party transactions
Related party transactions | 3 Months Ended |
Mar. 31, 2024 | |
Related Party Transactions [Abstract] | |
Related party transactions | Note 12: Related party transactions Our related party transactions comprise of expenses for use of intellectual property, borrowings, and sublease previously described. We may also incur other expenses with related parties in the ordinary course of business, which are included in the consolidated financial statements. The following is a summary of expenses charged by our controlling shareholder, DoubleU Games (in thousands): Three months ended March 31, Statement of 2024 2023 Income and Comprehensive Income Line Item Royalty expense (see Note 11) $ 619 $ 752 Cost of revenue Interest expense (see Note 5) 432 445 Interest expense Rent expense (see Note 9) 334 317 General and administrative expense Other expense 1,125 97 General and administrative expense Amounts due to our controlling shareholder, DUG, are as follows (in thousands): At March 31, At December 31, Statement of Consolidated 2024 2023 Balance Sheet Line Item 4.6% Senior notes with related party $ 37,125 $ 38,778 Current portion of borrowings with related party Royalties and other expenses 1,274 1,618 A/P and accrued expenses Short-term lease liability 1,251 1,298 Short-term operating lease liabilities Accrued interest on 4.6% Senior Notes with related party 9,522 9,501 Other current liabilities Long-term lease liability 3,975 4,414 Long-term lease liabilities |
Defined benefit pension plan
Defined benefit pension plan | 3 Months Ended |
Mar. 31, 2024 | |
Defined Benefit Pension Plan [Abstract] | |
Defined benefit pension plan | Note 13: Defined benefit pension plan We operate a defined benefit pension plan under employment regulations in Korea. The plan services the employees located in Seoul and is a final wage-based pension plan, which provides a specified amount of pension benefit based on length of service. The total benefit obligation of $3.3 million and $4.4 million was included in other non-current |
Acquisition
Acquisition | 3 Months Ended |
Mar. 31, 2024 | |
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, 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 March 31, 2024, includes SuprNation’s revenue of $8.3 million and pre-tax |
Description of Business (Polici
Description of Business (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of preparation and consolidation | Basis of preparation and consolidation Our unaudited condensed consolidated financial statements (“financial statements”) have been prepared in conformity with generally accepted accounting principles in the United States of America (“GAAP”) and the applicable rules and regulations of the Securities and Exchange Commission regarding interim financial information. Certain information and note disclosures normally included in the consolidated financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Our unaudited condensed consolidated financial statements include all adjustments of a normal, recurring nature necessary for the fair statement of the results for the interim periods presented. The results for the interim period presented are not necessarily indicative of those for the full year. The condensed consolidated financial statements should be read in conjunction with our consolidated financial statements for the year ended December 31, 2023. The condensed consolidated financial statements include the balances and accounts of DDI and our controlled subsidiaries. All significant inter-company transactions, balances and unrealized gains or losses have been eliminated. We view our operations and manage our business as one operating segment. |
Use of estimates | Use of estimates The preparation of financial statements in conformity with Generally Accepted Accounting Principles (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 |
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 federal 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 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 Three months ended March 31, 2024 2023 Apple 50.3 % 55.1 % Facebook 14.8 % 18.4 % Google 16.2 % 18.7 % Accounts Receivable Concentration As of March 31, As of December 31, 2024 2023 Apple 62.7 % 59.3 % Facebook 10.3 % 9.9 % Google 11.3 % 10.3 % Xsolla 12.9 % 11.3 % |
Description of Business (Tables
Description of Business (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Summary of percentage of revenues | The following table summarizes the percentage of revenues and accounts receivable generated via our platform providers in excess of 10% of our total revenues and total accounts receivable: Revenue Concentration Three months ended March 31, 2024 2023 Apple 50.3 % 55.1 % Facebook 14.8 % 18.4 % Google 16.2 % 18.7 % Accounts Receivable Concentration As of March 31, As of December 31, 2024 2023 Apple 62.7 % 59.3 % Facebook 10.3 % 9.9 % Google 11.3 % 10.3 % Xsolla 12.9 % 11.3 % |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Disaggregation of Revenue [Abstract] | |
Summary of disaggregation of revenue | The following table represents our disaggregation of revenue between mobile and web platforms (in thousands): Three months ended March 31, 2024 2023 Mobile $ 60,437 $ 63,330 Web 27,706 14,266 Total $ 88,143 $ 77,596 The following table presents our revenue disaggregated based on the geographical location of our players (in thousands): Three months ended March 31, 2024 2023 U.S. (1) $ 70,193 $ 68,203 International 17,950 9,393 Total $ 88,143 $ 77,596 (1) Geographic location is presented as being derived from the U.S. when data is not available. |
Summary of contract assets and contract liabilities | The following table summarized our opening and closing balances in contract assets and contract liabilities (in thousands): As of March 31, As of December 31, 2024 2023 Contract assets (1) $ 723 $ 756 Contract liabilities 2,409 2,520 (1) Contract assets are included within prepaid expenses and other assets in our consolidated balance sheet. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of intangible assets | There were no changes to the carrying amount of goodwill in the three months ended March 31, 2024. We recognized an aggregate $269.9 million impairment of goodwill and intangibles in 2022. Changes in the carrying amount of intangible assets were as follows (in thousands): March 31, 2024 December 31, 2023 Accumulated Accumulated Useful life Gross amount amortization Impairment Net amount Gross amount amortization Impairment Net amount Goodwill indefinite $ 651,244 $ — $ (254,893 ) $ 396,351 $ 651,597 $ — $ (254,893 ) $ 396,704 Trademarks indefinite 50,000 — (15,000 ) 35,000 50,000 — (15,000 ) 35,000 Customer relationships 4 years 84,065 (75,944 ) — 8,121 84,271 (75,387 ) — 8,884 Purchased technology 5-10 years 52,545 (45,720 ) — 6,825 52,707 (45,544 ) — 7,163 Development costs 3 years 9,486 (9,486 ) — — 9,486 (9,486 ) — — Software 4-5 2,954 (2,470 ) — 484 2,968 (2,444 ) — 524 Total $ 850,294 $ (133,620 ) $ (269,893 ) $ 446,781 $ 851,029 $ (132,861 ) $ (269,893 ) $ 448,275 |
Summary of estimated amortization expense | The following reflects amortization expense related to intangible assets included with depreciation and amortization (in millions): Three months ended March 31, 2024 2023 Amortization Expense 0.8 million 0.0 million |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Summary of long-term debt instruments | The components of debt at March 31, 2024 and December 31, 2023 are as follows (in thousands): As of March 31, As of December 31, 2024 2023 4.60% Senior Notes due to related party due 2024 $ 37,125 $ 38,778 Total debt 37,125 38,778 Less: Short-term debt 37,125 38,778 Total Long-term debt $ — $ — |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Summary of Cash Flow Information Related to Operating Leases | Supplemental balance sheet and cash flow information related to operating leases is as follows (in thousands): As of March 31, 2024 As of December 31, 2023 Operating lease right-of-use $ 6,538 $ 7,577 Accrued rent 365 447 Total operating lease right-of-use $ 6,173 $ 7,130 Short-term operating lease liabilities 2,562 3,157 Long-term operating lease liabilities 3,975 4,420 Total operating lease liabilities $ 6,538 $ 7,577 Operating lease costs $ 866 $ 3,201 Supplemental cash flow information related to leases was as follows (in thousands): Three months ended Year ended March 31, 2024 December 31, 2023 Cash paid for amounts included in the measurement of operating lease liabilities $ 859 $ 3,501 Right-of-use $ 0 $ 7,655 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Statement of Other Comprehensive Income [Abstract] | |
Summary of Accumulated Other Comprehensive Income (Loss) | Changes in accumulated other comprehensive income (AOCI) by component for the three months ended March 31, 2024 and 2023 were as follows (in thousands): Three months ended March 31, 2024 Currency Translation Defined Benefit Total Balance at January 1, 2024 $ 22,011 $ (2,029 ) $ 19,982 Foreign currency translation loss, net of tax (3,023 ) — (3,023 ) Actuarial gain/(loss), net of tax — 136 136 Balance as of March 31, 2024 $ 18,988 $ (1,893 ) $ 17,095 Three months ended March 31, 2023 Currency Translation Defined Benefit Total Balance at January 1, 2023 $ 20,792 $ (1,432 ) $ 19,360 Foreign currency translation loss, net of tax (1,181 ) — (1,181 ) Actuarial gain/(loss), net of tax — (157 ) (157 ) Balance as of March 31, 2023 $ 19,611 $ (1,589 ) $ 18,022 |
Related party transactions (Tab
Related party transactions (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Related Party Transactions [Abstract] | |
Summary of Expenses Charged by Our Controlling Shareholder | The following is a summary of expenses charged by our controlling shareholder, DoubleU Games (in thousands): Three months ended March 31, Statement of 2024 2023 Income and Comprehensive Income Line Item Royalty expense (see Note 11) $ 619 $ 752 Cost of revenue Interest expense (see Note 5) 432 445 Interest expense Rent expense (see Note 9) 334 317 General and administrative expense Other expense 1,125 97 General and administrative expense |
Summary of Amounts Due to our Controlling Shareholder | Amounts due to our controlling shareholder, DUG, are as follows (in thousands): At March 31, At December 31, Statement of Consolidated 2024 2023 Balance Sheet Line Item 4.6% Senior notes with related party $ 37,125 $ 38,778 Current portion of borrowings with related party Royalties and other expenses 1,274 1,618 A/P and accrued expenses Short-term lease liability 1,251 1,298 Short-term operating lease liabilities Accrued interest on 4.6% Senior Notes with related party 9,522 9,501 Other current liabilities Long-term lease liability 3,975 4,414 Long-term lease liabilities |
Description of Business - Addit
Description of Business - Additional Information (Details) € in Millions, $ in Millions | 5 Months Ended | 12 Months Ended | ||
Oct. 31, 2023 EUR (€) | Mar. 31, 2024 USD ($) | Dec. 31, 2017 USD ($) | Oct. 27, 2023 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Foreign currency exchange rate, translation | 1.064 | |||
SuprNation [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Business combination consideration transferred | € 34.3 | $ 36.5 | ||
DoubleU Games Co., Ltd.[Member] | Equity Investee [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Equity interest percentage | 67.10% | |||
Non-DoubleU Games, Co., Ltd.[Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Minority interest ownership percentage | 32.90% | |||
STIC Special Situation Private Equity Fund [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Minority interest ownership percentage | 20.20% | |||
Participants in IPO [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Minority interest ownership percentage | 12.70% | |||
International Gaming Technologies [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Business combination consideration transferred | $ 825 |
Description of business - Summa
Description of business - Summary of Percentage of Revenues (Details) - Customer Concentration Risk [Member] | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Revenue Concentration [Member] | Apple [Member] | |||
Revenue, Major Customer [Line Items] | |||
Concentration Risk, Percentage | 50.30% | 55.10% | |
Revenue Concentration [Member] | Facebook [Member] | |||
Revenue, Major Customer [Line Items] | |||
Concentration Risk, Percentage | 14.80% | 18.40% | |
Revenue Concentration [Member] | Google [Member] | |||
Revenue, Major Customer [Line Items] | |||
Concentration Risk, Percentage | 16.20% | 18.70% | |
Account Receivable Concentration [Member] | Apple [Member] | |||
Revenue, Major Customer [Line Items] | |||
Concentration Risk, Percentage | 62.70% | 59.30% | |
Account Receivable Concentration [Member] | Facebook [Member] | |||
Revenue, Major Customer [Line Items] | |||
Concentration Risk, Percentage | 10.30% | 9.90% | |
Account Receivable Concentration [Member] | Google [Member] | |||
Revenue, Major Customer [Line Items] | |||
Concentration Risk, Percentage | 11.30% | 10.30% | |
Account Receivable Concentration [Member] | Xsolla [Member] | |||
Revenue, Major Customer [Line Items] | |||
Concentration Risk, Percentage | 12.90% | 11.30% |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Summary of Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | ||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 88,143 | $ 77,596 | |
US [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | [1] | 70,193 | 68,203 |
International [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 17,950 | 9,393 | |
Mobile [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 60,437 | 63,330 | |
Web [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 27,706 | $ 14,266 | |
[1]Geographic location is presented as being derived from the U.S. when data is not available. |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Summary of Contract Assets and Contract Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | |
Contract With Customer Asset And Liability [Line Items] | |||
Contract liabilities | $ 2,409 | $ 2,520 | |
Prepaid expenses and other assets [Member] | |||
Contract With Customer Asset And Liability [Line Items] | |||
Contract assets | [1] | $ 723 | $ 756 |
[1]Contract assets are included within prepaid expenses and other assets in our consolidated balance sheet. |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Summary of Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross amount | $ 850,294 | $ 851,029 |
Accumulated Amortization | (133,620) | (132,861) |
Impairment | (269,893) | (269,893) |
Net Amount | $ 446,781 | 448,275 |
Useful life, Goodwill | indefinite | |
Gross amount, Goodwill | $ 651,244 | 651,597 |
Impairment, Goodwill | (254,893) | (254,893) |
Net Amount, Goodwill | $ 396,351 | 396,704 |
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 | $ 84,065 | 84,271 |
Accumulated Amortization | (75,944) | (75,387) |
Net Amount | 8,121 | 8,884 |
Purchased technology [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross amount | 52,545 | 52,707 |
Accumulated Amortization | (45,720) | (45,544) |
Net Amount | $ 6,825 | 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 | 2,954 | 2,968 |
Accumulated Amortization | (2,470) | (2,444) |
Net Amount | $ 484 | $ 524 |
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 | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2022 | |
Indefinite-lived Intangible Assets [Line Items] | ||
Impairment of goodwill and intangibles | $ 0 | $ 269,900 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Summary of Estimated Amortization Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | ||
Amortization Expense | $ 0.8 | $ 0 |
Debt - Summary of Debt (Details
Debt - Summary of Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 37,125 | $ 38,778 |
Less: Short-term debt | 37,125 | 38,778 |
Total Long-term debt | 0 | 0 |
4.6% senior notes due to related parties in 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 37,125 | $ 38,778 |
Debt - Additional Information (
Debt - Additional Information (Details) - 4.6% senior notes due to related parties in 2024 [Member] - KRW (₩) ₩ in Billions | 1 Months Ended | 3 Months Ended | |
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2024 | |
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 | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
Short-Term Investments | $ 99,653 | $ 67,756 |
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 | $ 300 | |
Money market funds [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Short-Term Investments | 99,700 | 67,800 |
Money market funds and Korean market government bonds [Member] | ||
Cash Equivalents, at Carrying Value | $ 209,900 | $ 206,900 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income tax (expense) benefit | $ 7,992 | $ 6,759 |
Effective income tax rate reconciliation percentage | 20.80% | 22.20% |
Effective income tax rate reconciliation at federal statutory income tax rate | 19% |
Net Income Per Share - Addition
Net Income Per Share - Additional Information (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Earnings Per Share [Abstract] | |
Dilutive securities | $ 0 |
Leases - Additional Information
Leases - Additional Information (Details) - ft² ft² in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Sep. 30, 2023 | Jul. 01, 2012 | |
Maximum [Member] | |||
Lessee, operating lease, remaining lease term | 53 months | ||
Minimum [Member] | |||
Lessee, operating lease, remaining lease term | 7 months | ||
Seattle [Member] | |||
Area of Land | 49,375 | ||
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 | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | ||
Leases [Abstract] | |||
Operating lease right-of-use asset | $ 6,538 | $ 7,577 | |
Accrued rent | 365 | 447 | |
Total operating lease right-of-use asset, net | 6,173 | 7,130 | |
Short-term operating lease liabilities | [1] | 2,562 | 3,157 |
Long-term operating lease liabilities | [2] | 3,975 | 4,420 |
Total operating lease liabilities | 6,538 | 7,577 | |
Operating lease costs | 866 | 3,201 | |
Cash paid for amounts included in the measurement of operating lease liabilities | 859 | 3,501 | |
Right-of-use assets obtained in exchange for new lease obligations | $ 0 | $ 7,655 | |
[1]Includes related party operating lease liability of $1,251 and $1,298 at March 31, 2024 and December 31, 2023, respectively (see Note 12).[2]Includes related party operating lease liability of $3,975 and $4,414 at March 31, 2024 and December 31, 2023, respectively (see Note 12). |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income - Summary of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | $ 19,982 | $ 19,360 |
Foreign currency translation loss, net of tax | (3,023) | (1,181) |
Actuarial gain/(loss), net of tax | 136 | (157) |
Ending balance | 17,095 | 18,022 |
Currency Translation Adjustments [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | 22,011 | 20,792 |
Foreign currency translation loss, net of tax | (3,023) | (1,181) |
Ending balance | 18,988 | 19,611 |
Defined Benefit Pension Plan [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | (2,029) | (1,432) |
Actuarial gain/(loss), net of tax | 136 | (157) |
Ending balance | $ (1,893) | $ (1,589) |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Aug. 29, 2022 USD ($) | Mar. 31, 2024 USD ($) titles | Jun. 30, 2023 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2018 | Dec. 31, 2017 | |
Loss contingency accrual, payments | $ 95,250 | ||||||
International Gaming Technologies [Member] | |||||||
Percentage of royalty on revenue | 7.50% | 7.50% | |||||
Long-term purchase commitment, period | 10 years | ||||||
Cost of revenue | $ 1,800 | $ 2,000 | |||||
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 | $ 1,100 | ||||||
Maximum [Member] | |||||||
Litigation settlement, amount awarded to other party | $ 145,250 | ||||||
Loss contingency accrual, payments | $ 95,250 | $ 95,250 | |||||
Maximum [Member] | International Gaming Technologies [Member] | |||||||
Percentage of royalty on revenue | 15% |
Related Party Transactions - Su
Related Party Transactions - Summary of Expenses Charged by Our Controlling Shareholder (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | ||
Related Party Transaction [Line Items] | |||
Interest expense | [1] | $ 409 | $ 462 |
Cost of revenue [Member] | |||
Related Party Transaction [Line Items] | |||
Royalty expense | 619 | 752 | |
Interest expense [Member] | |||
Related Party Transaction [Line Items] | |||
Interest expense | 432 | 445 | |
General and administrative expense [Member] | |||
Related Party Transaction [Line Items] | |||
Rent expense | 334 | 317 | |
Other expenses | $ 1,125 | $ 97 | |
[1]Includes related party interest expense of $432 and $445 for the three months ended March 31, 2024 and 2023, respectively (See Note 12). |
Related Party Transactions - _2
Related Party Transactions - Summary of Amounts Due to our Controlling Shareholder (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | |
Schedule of related Party transactions due to our parent [Line Items] | |||
Short-term lease liability | [1] | $ 2,562 | $ 3,157 |
Long-term lease liability | [2] | $ 3,975 | 4,420 |
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 | $ 1,251 | 1,298 | |
Long-term lease liabilities [Member] | |||
Schedule of related Party transactions due to our parent [Line Items] | |||
Long-term lease liability | 3,975 | 4,414 | |
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 | 37,125 | 38,778 | |
A/P and accrued expenses [Member] | |||
Schedule of related Party transactions due to our parent [Line Items] | |||
Royalties and other expenses | 1,274 | 1,618 | |
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 | $ 9,522 | $ 9,501 | |
[1]Includes related party operating lease liability of $1,251 and $1,298 at March 31, 2024 and December 31, 2023, respectively (see Note 12).[2]Includes related party operating lease liability of $3,975 and $4,414 at March 31, 2024 and December 31, 2023, respectively (see Note 12). |
Defined Benefit Pension Plan -
Defined Benefit Pension Plan - Additional Information (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Defined Benefit Pension Plan [Abstract] | ||
Defined Benefit Plan, Funded (Unfunded) Status of Plan | $ 3.3 | $ 4.4 |
Acquisition - Additional Inform
Acquisition - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Oct. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Business Acquisition [Line Items] | |||
Revenues | $ 88,143 | $ 77,596 | |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 38,353 | $ 30,431 | |
SuprNation [Member] | |||
Business Acquisition [Line Items] | |||
Cash incentive/compensation plan, key employee may earn | $ 6,500 | ||
Cash incentive/compensation plan, key employee may earn after the period | 18 months | ||
Revenues | $ 8,300 | ||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 1,600 | ||
SuprNation [Member] | Escrow [Member] | |||
Business Acquisition [Line Items] | |||
Cash incentive/compensation plan, key employee may earn | $ 5,500 | ||
European Union [Member] | SuprNation [Member] | |||
Business Acquisition [Line Items] | |||
Total cash purchase price | $ 30,600 | ||
Deferred Payment | 6,500 | ||
Transaction costs | 2,000 | ||
European Union [Member] | SuprNation [Member] | Escrow [Member] | |||
Business Acquisition [Line Items] | |||
Payment into escrow | $ 5,500 |