DoubleDown Interactive Co Ltd (DDI) 2021 Q3 法說會逐字稿

Good afternoon, and welcome to DoubleDown's Interactive Conference Call for the Third Quarter ended September 30, 2021. My name is Bo In Hye, and I will be your operator this afternoon.

下午好，歡迎參加 DoubleDown 於 2021 年 9 月 30 日結束的第三季互動電話會議。我叫 Bo In Hye，今天下午我將擔任你們的接線生。

Before this call, DoubleDown issued its financial results for the third quarter 2021 in a press release, a copy of which has been furnished in a report on Form 6-K filed with SEC and is available in the Investor Relations section of the company's website at www.doubledowninteractive.com. You can find a link to the Investor Relations section at the top of the homepage.

在本次電話會議之前，DoubleDown 在一份新聞稿中發布了2021 年第三季的財務業績，該新聞稿的副本已在向SEC 提交的6-K 表格報告中提供，可在該公司網站的投資者關係部分查看： www.doubledowninteractive.com。您可以在主頁頂部找到投資者關係部分的連結。

Joining us today's call are DoubleDown's CEO, Mr. In Keuk Kim; CFO, Mr. Joe Sigrist. Following their remarks, we will open the call for questions. Before we begin, Jeff Grampp, the company's outside Investor Relations adviser, will make a brief introductory statement. Mr. Grampp?

加入我們今天電話會議的有 DoubleDown 執行長 In Keuk Kim 先生；財務長喬·西格里斯特先生。在他們發表講話後，我們將開始提問。在我們開始之前，公司外部投資人關係顧問 Jeff Grampp 將會做一個簡短的介紹性演講。格蘭普先生？

Thank you, Bo In Hye. Before management begins their formal remarks, we need to remind everyone that some of management's comments today will be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities Exchange Act of 1934 as amended, and we hereby claim the protection of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

謝謝你，寶仁惠。在管理階層開始正式發言之前，我們需要提醒大家，今天管理階層​​的一些評論將屬於經修訂的 1933 年證券法第 27A 條和經修訂的 1934 年證券交易法第 21E 條含義內的前瞻性陳述。 ，我們特此要求受到1995 年《私人證券訴訟改革法案》的安全港條款的保護。

Forward-looking statements or statements about future events and include expectations and projections, not present of historical facts, and it can be identified by the use of words such as may, might, will, expect, assume, believe, intend, estimate, continue, should, anticipate or other similar terms. Forward-looking statements include and are not limited to those regarding our future plans, mergers and acquisition strategy, strategic and financial objectives, expected performance and financial outlook.

前瞻性陳述或有關未來事件的陳述，包括預期和預測，而不是歷史事實，可以透過使用諸如「可能」、「可能」、「將」、「期望」、「假設」、「相信」、「打算」、「估計」、「繼續」等字眼來辨識、應該、預期或其他類似術語。前瞻性陳述包括但不限於有關我們未來計劃、併購策略、策略和財務目標、預期業績和財務前景的陳述。

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

前瞻性陳述受到許多風險和不確定性的影響，可能導致實際結果與我們的預期有重大和不利的差異。因此，您在解釋和依賴它們時應該小心謹慎。我們建議您參閱 DoubleDown 的 20-F 表格年度報告和其他 SEC 文件，以更詳細地討論這些可能影響未來營運績效和財務狀況的風險。

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

這些前瞻性陳述僅在本次電話會議之日作出。除非法律要求，否則本公司不承擔並明確否認任何更新或更改前瞻性聲明的義務，無論是由於新資訊、未來事件或其他原因。

During the call, management will discuss non-GAAP measures, which are believed to be useful in evaluating the company's operating performance. These measures should not be considered superior to, in isolation, or as a substitute for the financial results prepared in accordance with GAAP. A full reconciliation of these measures to the most directly comparable GAAP measures is available in the earnings release and on Form 6-K filed with the SEC.

在電話會議期間，管理階層將討論非公認會計準則衡量標準，這些衡量標準被認為有助於評估公司的營運績效。這些措施不應被視為優於、孤立或取代根據 GAAP 編制的財務表現。這些指標與最直接可比較的 GAAP 指標的全面調整可在收益報告和向 SEC 提交的 6-K 表格中找到。

I would like to remind everyone that this call is being recorded and will be made available for replay following the instructions in the company's earnings release.

我想提醒大家，這次電話會議正在錄音，並將按照公司財報中的說明進行重播。

Now I would like to turn the call over to DoubleDown's CEO, Mr. In Keuk Kim.

現在我想把電話轉給 DoubleDown 的執行長 In Keuk Kim 先生。

Thank you, Jeff. Good afternoon, everyone. Thank you for joining us on our inaugural earnings call following our successful IPO in the third quarter. I'd also like to welcome our new shareholders. We are appreciative of our -- your support.

謝謝你，傑夫。大家下午好。感謝您參加我們第三季成功首次公開募股後的首次財報電話會議。我還要歡迎我們的新股東。我們感謝您的支持。

Before we discuss the results of our third quarter, I would like to first provide some background on DoubleDown for those of you who are newer to our company. We are a leading developer and publisher of digital games or mobile and web-based platforms. We were only pioneer in the social casino gaming segment as one of the initial publishers to launch a social casino game on Facebook in 2010.

在我們討論第三季的業績之前，我想先為剛加入我們公司的人提供一些有關 DoubleDown 的背景資訊。我們是數位遊戲或行動和網路平台的領先開發商和發行商。我們是社群賭場遊戲領域的先驅，也是 2010 年在 Facebook 上推出社群賭場遊戲的首批發行商之一。

Our goal is to become one of the world's leading global gaming companies by delivering differentiated content and playing experiences to our users. Our flagship game, DoubleDown Casino has been among the top 20 grossing mobile games annually on the Apple App Store since 2016 according to [FME]. We believe we have a deep understanding of our users, which allows us to refine our game development, content strategy and game operations.

我們的目標是透過向用戶提供差異化的內容和遊戲體驗，成為世界領先的全球遊戲公司之一。根據 [FME] 統計，自 2016 年以來，我們的旗艦遊戲 DoubleDown Casino 一直位居 Apple App Store 上每年最暢銷的 20 款手機遊戲之列。我們相信我們對用戶有深入的了解，這使我們能夠完善我們的遊戲開發、內容策略和遊戲營運。

We also have unique access to content through our relationship with IGT and our parent, DoubleU Games. We are able to leverage their slot games, many of which are exclusive to DoubleDown, while also developing our own content to provide a wide array of new and exciting casino-style games for players.

透過與 IGT 和我們的母公司 DoubleU Games 的關係，我們也擁有獨特的內容存取權。我們能夠利用他們的老虎機遊戲，其中許多是 DoubleDown 獨有的，同時也開發我們自己的內容，為玩家提供各種新穎且令人興奮的賭場式遊戲。

We have what we call an all-in-one approach with our DoubleDown Casino app. We believe that users prefer fewer apps on their smartphones not more so having an all-in-one solution creates better retention, lower user acquisition costs and higher lifetime value. DoubleDown Casino provides a diverse set of offerings to our players, ranging from authentic land-based slots to more casual slot games as well as other casino side games, such as single and table games.

我們的 DoubleDown Casino 應用程式採用了所謂的一體化方法。我們相信，用戶更喜歡智慧型手機上更少的應用程序，而不是更多的應用程序，因此擁有一體化解決方案可以提高保留率、降低用戶獲取成本並提高生命週期價值。DoubleDown Casino 為我們的玩家提供了多樣化的產品，從正宗的實體老虎機到更休閒的老虎機遊戲以及其他賭場副遊戲，例如單人遊戲和賭桌遊戲。

A key part of our strategy is to augment our revenue streams by launching gaming apps outside of traditional social casino. Our first effort in this regard is Undead World: Hero Survival, which is an RPG that was launched globally at the end of September. While it is very early, we are pleased with initial player retention results and excellent rating scores in the App Store and Play Store.

我們策略的關鍵部分是透過在傳統社交賭場之外推出遊戲應用程式來增加我們的收入流。我們在這方面的第一個努力是《亡靈世界：英雄生存》，這是一款 RPG 遊戲，於 9 月底在全球推出。雖然現在還為時過早，但我們對最初的玩家保留結果以及 App Store 和 Play Store 中出色的評分分數感到滿意。

For the remainder of this quarter, we will focus on further improving player engagement as we continue to acquire new users. And we are continuing to tune the game economics and the operation of its heroes. We expect to release additional nonsocial casino gaming apps like Undead World in 2022.

在本季度剩餘時間內，隨著我們繼續獲取新用戶，我們將專注於進一步提高玩家參與度。我們正在繼續調整遊戲經濟和英雄的操作。我們預計在 2022 年發布更多非社交賭場遊戲應用程序，例如 Undead World。

Our next such game is in the later stages of development and is currently planned to be released in open beta in Q1 of next year. We will also continue to make updates to our core DoubleDown Casino platform to enhance customer engagement and strengthen customer lifetime value.

我們的下一款​​此類遊戲正處於開發後期階段，目前計劃於明年第一季以公開測試版的形式發布。我們也將持續更新我們的核心 DoubleDown Casino 平台，以提高客戶參與度並增強客戶終身價值。

Regarding our financial results, we are pleased with our third quarter performance, our first as a public company. While revenue decreased 6% from Q3 2020 due to the easing of stay-at-home initiatives during the height of COVID-related restrictions last year, adjusted EBITDA increased 4%. We were able to grow adjusted EBITDA despite lower revenue as we focus on optimizing returns from our sales and marketing spending, which our CFO, Joe Sigrist, will discuss in more detail momentarily.

關於我們的財務業績，我們對第三季的業績感到滿意，這是我們作為上市公司的第一個季度業績。儘管由於去年新冠疫情相關限制最嚴重期間居家隔離措施的放鬆，營收較 2020 年第三季下降了 6%，但調整後的 EBITDA 卻成長了 4%。儘管收入較低，但我們仍能夠實現調整後的 EBITDA 成長，因為我們專注於優化銷售和行銷支出的回報，我們的財務長 Joe Sigrist 將立即對此進行更詳細的討論。

Also, during this quarter, we generated $33.7 billion in net operating cash flows and ended the quarter with a cash balance of $223.1 million providing us with a strong financial position. Importantly, our business model should continue to be one that produces significant positive free cash flow each quarter.

此外，本季我們產生了 337 億美元的淨營運現金流，季末現金餘額為 2.231 億美元，為我們提供了強勁的財務狀況。重要的是，我們的商業模式應該繼續是每季產生大量正自由現金流的商業模式。

Now I will turn it over to our CFO, Joe Sigrist, to walk you through our financials before providing my closing remarks. Joe?

現在，我將把它交給我們的財務長 Joe Sigrist，在我發表結束語之前，他將向您介紹我們的財務狀況。喬？

Thank you, I.K., and good afternoon, everyone. As a reminder, DoubleDown Interactive completed its Initial Public Offering on September 2, 2021, issuing approximately 6.31 million American Depository Shares which we will refer to as ADSs on this call, each representing 0.05 of a common share at a price of $18 per ADS. Of this, the company sold 5.26 million ADSs and STIC, Special Situation Diamond Limited sold 1.05 million ADSs. DoubleDown received net proceeds from the offering of $86.5 million after deducting underwriting fees and commissions and certain offering expenses which we plan to use to fund our growth initiatives.

謝謝你，I.K.，大家下午好。謹此提醒，DoubleDown Interactive 於2021 年9 月2 日完成首次公開募股，發行約631 萬股美國存託股票，我們在本次電話會議中稱之為ADS，每股相當於0.05 股普通股，每股ADS 的價格為18 美元。其中，該公司出售了526萬股ADS，STIC、Special Situation Diamond Limited出售了105萬股ADS。在扣除承銷費用和佣金以及我們計劃用於資助我們的成長計劃的某些發行費用後，DoubleDown 從發行中獲得了 8,650 萬美元的淨收益。

Our revenues for the third quarter of 2021 decreased 6% to $87.0 million from the prior year period. As I.K. mentioned, Q3 2020 benefited from the widespread stay-at-home COVID prevention initiatives in place at that time which have significantly abated since then. Despite the revenue decrease, we are encouraged with several key monetization metrics that improved from the comparable period last year.

我們 2021 年第三季的營收較上年同期下降 6%，至 8,700 萬美元。正如 I.K.提到，2020 年第三季受益於當時廣泛實施的居家新冠肺炎預防舉措，但自那以後，該舉措已顯著減弱。儘管收入下降，但我們對幾個關鍵貨幣化指標較去年同期有所改善感到鼓舞。

Average revenue per daily active user, or ARPDAU, increased from $0.86 to $0.96. Payer conversion, which is the percentage of players who pay DoubleDown, increased from 5.4% to 5.7%. And average monthly revenue per payer increased from $196 to $224.

每個每日活躍用戶的平均收入 (ARPDAU) 從 0.86 美元增加到 0.96 美元。付費者轉換率（即支付 DoubleDown 的玩家百分比）從 5.4% 增加到 5.7%。每位付款人的平均月收入從 196 美元增加到 224 美元。

At a high level, we would characterize these trends in our KPIs as indicative of our disciplined focus on growing wallet share of paying players while allowing attrition of nonpaying players. Accordingly, we believe KPIs that are aligned with paying players are more useful in evaluating our progress rather than aggregate user metrics.

在較高的層面上，我們將 KPI 中的這些趨勢描述為表明我們嚴格關注增加付費玩家的錢包份額，同時允許非付費玩家的流失。因此，我們認為與付費玩家一致的 KPI 在評估我們的進度方面比匯總用戶指標更有用。

Total operating expenses for the third quarter of 2021 decreased 17% to $59.2 million from the prior year period. The decrease was primarily due to a combination of lower sales and marketing costs and lower depreciation and amortization expenses. Specifically, sales and marketing expenses declined 18% from the comparable period a year ago to $17.2 million as we continue to optimize our investments to acquire new players in light of Apple's new app tracking transparency framework and changes to IDFA, Apple's identifier for advertisers.

2021 年第三季的總營運費用較上年同期下降 17%，至 5,920 萬美元。下降的主要原因是銷售和行銷成本下降以及折舊和攤提費用下降。具體來說，銷售和行銷費用比去年同期下降了 18% 至 1,720 萬美元，因為我們根據 Apple 新的應用程式追蹤透明度框架以及 Apple 廣告商識別碼 IDFA 的變化，繼續優化投資以收購新玩家。

In addition, cost per install or CPI for mobile users trended higher during the summer, which caused us to be more cautious in advertising spend during this period. Overall, we feel confident about our ability to continue to measure and track the efficiency of our new player acquisitions. Optimizing the ROI of our sales and marketing expenses is at the core of our financial framework to diligently manage our P&L.

此外，夏季期間行動用戶的每次安裝成本或 CPI 呈上升趨勢，這導致我們在此期間的廣告支出更加謹慎。總的來說，我們對繼續衡量和追蹤新玩家收購效率的能力充滿信心。優化銷售和行銷費用的投資報酬率是我們勤勉管理損益的財務架構的核心。

Depreciation and amortization expenses declined to $2.4 million in the quarter compared to $8.0 million in Q3 2020 at the useful live schedules from assets acquired as part of DoubleU Games 2017 purchase of DoubleDown Interactive LLC continued to end. Net income for the third quarter of 2021 totaled $22.8 million or $9.91 per diluted share, which was higher than the prior period of $8.3 million or $3.75 per diluted share.

根據 DoubleU Games 2017 年收購 DoubleDown Interactive LLC 所收購資產的有用即時時間表，本季折舊和攤提費用下降至 240 萬美元，而 2020 年第三季為 800 萬美元。2021 年第三季淨利總計 2,280 萬美元，即稀釋後每股收益 9.91 美元，高於上一季的 830 萬美元，即稀釋後每股收益 3.75 美元。

Note that our common share count at the end of the third quarter was approximately 2.5 million shares. As a reminder, each of our American Depositary Shares that trade on NASDAQ represent 0.05 of a common share.

請注意，第三季末我們的普通股數量約為 250 萬股。提醒一下，我們在納斯達克交易的每股美國存託股票相當於 0.05 股普通股。

Adjusted EBITDA for the third quarter of 2021 increased 4% to $30.2 million from the prior year period. Adjusted EBITDA margin of 34.7% represents an approximate 330 basis point improvement from the prior year period. The improvement in adjusted EBITDA and adjusted EBITDA margin is primarily attributable to the lower sales and marketing costs I previously mentioned.

2021 年第三季調整後 EBITDA 較上年同期成長 4%，達到 3,020 萬美元。調整後 EBITDA 利潤率為 34.7%，較上年同期提高約 330 個基點。調整後 EBITDA 和調整後 EBITDA 利潤率的改善主要歸因於我之前提到的銷售和行銷成本降低。

Adjusted EBITDA and adjusted EBITDA margin are non-GAAP measures, which we believe are useful in evaluating our operating performance. A full reconciliation of these measures to the most directly comparable GAAP measure is available in the earnings release.

調整後的 EBITDA 和調整後的 EBITDA 利潤率是非 GAAP 衡量標準，我們認為這有助於評估我們的經營績效。收益報告中提供了這些指標與最直接可比較的 GAAP 指標的全面對帳。

Cash flow from operations for the third quarter of 2021 increased 49% to $33.7 million compared to the prior year period, primarily due to the timing of payments from our platform partners. We did not incur any material capital expenditures during the quarter.

與去年同期相比，2021 年第三季的營運現金流成長了 49%，達到 3,370 萬美元，主要是由於我們的平台合作夥伴的付款時間。本季我們沒有發生任何重大資本支出。

Finally, turning to our balance sheet. At quarter end, we had $223.1 million of cash and cash equivalents. The improvement in our net cash position was due to the aforementioned net cash flows from operations and the proceeds from our Initial Public Offering.

最後，轉向我們的資產負債表。截至季末，我們擁有 2.231 億美元的現金和現金等價物。我們淨現金狀況的改善是由於上述營運淨現金流量以及我們首次公開募股的收益。

That completes my financial summary. Now I will turn it back over to I.K. for closing remarks.

我的財務摘要就這樣完成了。現在我將把它轉回給 I.K.作結束語。

Thank you, Joe. We are excited about our entry into the public market and our pipeline of new games, both within our core DoubleDown Casino franchise and outside of traditional social casino segment.

謝謝你，喬。我們對進入公開市場和我們的新遊戲管道感到興奮，無論是在我們的核心 DoubleDown Casino 特許經營範圍內還是在傳統的社交賭場領域之外。

Regarding our core DoubleDown Casino franchise, we are continuing to make it an exciting gaming destination for our users by launching new slot content approximately every 1, 2 weeks. We will also be introducing new DoubleDown Casino meta features over the next few months, such as new collection features.

關於我們的核心 DoubleDown Casino 特許經營權，我們將大約每 1、2 週推出新的老虎機內容，繼續將其打造成令用戶興奮的遊戲目的地。我們也將在接下來的幾個月中推出新的 DoubleDown Casino 元功能，例如新的收藏功能。

And finally, we are excited about the (inaudible) Undead World: Hero Survival. We look to increase its player base in Q4 and beyond while continuing to monitor monetization metrics as we plan to acquire new users.

最後，我們對（聽不清楚）《亡靈世界：英雄生存》感到興奮。我們希望在第四季度及以後增加其玩家基礎，同時繼續監控貨幣化指標，因為我們計劃獲取新用戶。

We are now happy to take your questions. Operator?

我們現在很樂意回答您的問題。操作員？

(Operator Instructions) Your first question comes from the line of David Bain of B. Riley.

（操作員說明）您的第一個問題來自 B. Riley 的 David Bain。

Great. I.K., Joe, very nice execution on the quarter. I guess my first question, could you offer any broad commentary surrounding the potential reduction of platform fees from Apple or others? I mean, is that something that you think could positively impact margins next year? Are there certain strategies you're testing internally or planning for at this point?

偉大的。I.K.，喬，本季的執行非常好。我想我的第一個問題是，您能否就蘋果或其他公司可能降低平台費用的情況提供任何廣泛的評論？我的意思是，您認為這會對明年的利潤率產生正面影響嗎？您目前正在內部測試或計劃制定某些策略嗎？

Yes, Dave, thanks so much for the question and your comment. I can start, and then I.K. can comment perhaps.

是的，戴夫，非常感謝您的問題和評論。我可以開始，然後 I.K.也許可以發表評論。

Obviously, the entire gaming and mobile gaming industry is excited about the potential, and I'll stress potential, for the lowering of platform fees based on the court rulings. And we are interested to see not only how Apple reacts to it, but also, and I think more importantly, in the shorter term, to how other gaming companies might be changing their games to execute on how they would implement non-Apple ways of collecting payments. And I think that's going to be the key for us, which is to kind of decide how we implement, which I think is on one level pretty straightforward, these alternative payment processors. But in a way that we believe based on what others in the industry, frankly who are larger than us do, as far as what they think will be acceptable, frankly, to Apple.

顯然，整個遊戲和行動遊戲產業都對根據法院裁決降低平台費用的潛力感到興奮，我將強調潛力。我們不僅有興趣了解蘋果對此有何反應，而且我認為更重要的是，在短期內，其他遊戲公司可能會如何改變他們的遊戲，以執行他們將如何實施非蘋果方式收取款項。我認為這將是我們的關鍵，即決定我們如何實施這些替代支付處理器，我認為在某種程度上非常簡單。但在某種程度上，我們相信，基於行業內其他人（坦白說，比我們規模更大的人）所做的事情，坦白說，他們認為蘋果可以接受的東西。

Yes. To support Joe's comment, from a development standpoint, we're already ready for taking those advantages. But it will depend on other gaming companies' implementation. From December, if we take a look at our other competitors or other mobile gaming companies [in comparison], we will -- right now, we will be ready right now. So hope this helps.

是的。為了支持喬的評論，從開發的角度來看，我們已經準備好利用這些優勢。但這將取決於其他遊戲公司的實施。從 12 月開始，如果我們看看我們的其他競爭對手或其他手機遊戲公司[進行比較]，我們會——現在，我們現在就準備好了。所以希望這會有所幫助。

Okay. Yes. No, absolutely. So my next question would be, and we get this question/topic a lot. So maybe you can -- take me some phone time. Wondering if you could give your broader view on M&A. First, as it relates to several social casino competitors acquired in your space, GSN, [Bowl Game], [Side Play]. I mean, they all seem to obviously highlight your own valuation. But does that indicate any kind of competitive marketing shift under new ownership? Are you seeing or hearing anything?

好的。是的。不，絕對是。所以我的下一個問題是，我們經常聽到這個問題/主題。所以也許你可以——給我一些打電話的時間。想知道您是否可以對併購發表更廣泛的看法。首先，因為它與在您的空間中收購的幾個社交賭場競爭對手有關，GSN、[Bowl Game]、[Side Play]。我的意思是，它們似乎都明顯強調了你自己的估值。但這是否表明新所有權下的競爭性行銷會發生任何變化？你看到或聽到什麼了嗎？

And then as it relates to M&A also, we get this question, if you could discuss your own strategies. And I mean the $220 million plus of cash -- forward cash generation, is there a strong supply out there, acquisition valuations rational?

然後，由於它也與併購有關，我們收到這個問題，您是否可以討論您自己的策略。我的意思是 2.2 億美元以上的現金——遠期現金生成，是否存在強勁的供應，收購估值是否合理？

And then I know it's a multipart question, but if you don't find anything significant, would the Board consider return to capital opportunities over the longer term? So the third part was -- the first one was M&A as it relates to your own core space and then your own strategies.

然後我知道這是一個由多部分組成的問題，但如果你沒有發現任何重要的事情，董事會會考慮長期回報資本機會嗎？所以第三部分是──第一部分是併購，因為它牽涉到你自己的核心空間，然後是你自己的策略。

Great. Thanks for the cliff notes on a long question there. Yes, no, no. I think let's start with M&A. And what -- first of all, what's out there. I think you asked perhaps to comment on some of the more recent activity. I mean, it's not a lot that we can say about what others have done, except maybe to say it's interesting how -- I don't know if I can say social casino is hot again, but it's interesting how there have been some -- you mentioned the GSN deal specifically and others that our social -- the acquisition of social casino companies or companies that are primarily social casino that have been bought for some pretty nice valuations, where I think over the last at least 2 or 3 years, there have been fewer of those types of transactions, at least in social casino.

偉大的。感謝您對一個很長的問題的懸崖註釋。是的，不，不。我想讓我們從併購開始。首先，外面有什麼。我認為您可能會要求對最近的一些活動發表評論。我的意思是，關於其他人所做的事情，我們可以說的不多，除了說這很有趣——我不知道我是否可以說社交賭場再次熱門，但有趣的是，有一些—— - 你特別提到了GSN 交易，還有我們的社交交易——收購社交賭場公司或主要是社交賭場的公司，這些公司的估值相當不錯，我認為在過去至少2 或3 年裡，此類交易較少，至少在社交賭場中是如此。

Now I think there still is a great interest amongst social casino companies to purchase companies outside of social casino to expand. But I just will comment that what you said about social casino companies being purchased is kind of an interesting thing that's happened since the summer.

現在我認為社交賭場公司仍然有很大興趣收購社交賭場以外的公司以進行擴張。但我只想評論說，你所說的關於社交賭場公司被收購的事情是自今年夏天以來發生的一件有趣的事情。

As far as what we're looking for, I mean, and we said this during the road show, we're looking potentially for companies to acquire -- that can really move the needle for us. And so companies that have -- revenue companies that have games in market with players. Obviously, those companies are -- there are fewer of those than perhaps studios that are just developing a game or just launched a game. And there are a number of folks out there who maybe have a game in beta or something that are looking for someone to help them fund the marketing. And there are a number of those out there as well.

就我們正在尋找的東西而言，我的意思是，我們在路演期間說過，我們正在尋找潛在的公司進行收購——這確實可以為我們帶來推動。因此，那些擁有收入的公司在市場上有玩家提供遊戲。顯然，這些公司的數量可能比剛開發遊戲或剛推出遊戲的工作室還要少。還有很多人可能有測試版遊戲或其他東西，正在尋找某人來幫助他們資助行銷。那裡也有很多這樣的人。

But I think for us, and this may mean it takes us a little longer than perhaps if we had been -- if we look at other of those companies. We are looking for companies that can really help us move the needle.

但我認為對我們來說，這可能意味著我們需要比以前更長的時間——如果我們看看其他這些公司的話。我們正在尋找能夠真正幫助我們取得進展的公司。

And then the question about what happens if we don't. Other uses of cash, I think. Certainly, we -- shareholder value and maximization of shareholder value is the most important objective for us. And as a result, given our cash balance, we definitely need to look at all ways and all methods to maximize shareholder value. And so we won't take anything off the table.

然後是如果我們不這樣做會發生什麼的問題。我認為現金的其他用途。當然，股東價值和股東價值最大化是我們最重要的目標。因此，考慮到我們的現金餘額，我們肯定需要尋找一切途徑和方法來最大化股東價值。所以我們不會放棄任何事。

Congratulations again.

再次恭喜。

Yes, sorry. Just first you had comment lately to M&A opportunity. We also look at additional opportunities related to NFP, non-fungible token opportunity and but actually, it will fit a lot to our gaming content. So we look forward to taking those advantages for M&A. I hope this helped.

是的，抱歉。首先您最近對併購機會發表了評論。我們也關注與非農業就業相關的其他機會、不可替代的代幣機會，但實際上，它非常適合我們的遊戲內容。因此，我們期待利用這些優勢進行併購。我希望這有幫助。

(Operator Instructions) Your next question is from Greg Gibas of Northland Securities.

（操作員指示）您的下一個問題來自 Northland Securities 的 Greg Gibas。

Congrats on the nice EBITDA improvement. I wanted to ask, I guess, on kind of new developments, how the rollout of Undead World is maybe going so far relative to your expectations initially? Kind of how you're marketing it differently relative to DoubleDown Casino? And then just wanted to kind of gauge you on timing and kind of general cadence of new launches and kind of how development is going for the space-related game, Spinning In Space, I believe it's called.

祝賀 EBITDA 取得良好改善。我想問一下，關於新的進展，《不死世界》的推出與您最初的預期相比進展如何？相對於 DoubleDown Casino，你們的行銷方式有什麼不同嗎？然後我只是想向您介紹一下新遊戲發布的時機和整體節奏，以及太空相關遊戲《Spinning In Space》的開發進展情況，我相信它被稱為「Spinning In Space」。

Yes. I'll just quickly describe how we believe the game is going in the market. And then I'm going to ask I.K. to talk about the marketing of the game, which I think is interesting.

是的。我將快速描述一下我們對這款遊戲在市場上的看法。然後我要問 I.K.談談遊戲的行銷，我覺得很有趣。

Relative to results, I mean it is early days. We just launched about 5 weeks ago, global launch. And consistent with what we saw during the open beta period, we're really pleased with player retention which means repeat play once we acquire a user. And ultimately, that's the first step in getting players to convert and then ultimately to continue to monetize over time and maximize LTV.

相對於結果，我的意思是現在還為時過早。我們大約 5 週前剛推出，全球推出。與我們在公開測試期間看到的情況一致，我們對玩家保留率非常滿意，這意味著一旦我們獲得用戶就會重複玩遊戲。最終，這是讓玩家轉化的第一步，然後最終隨著時間的推移繼續貨幣化並最大化生命週期價值。

So right now, we're continuing, as I believe I.K. said in his comments, to not only acquire players, but also to continue to enhance the game, tweak the game from a monetization standpoint, so we can continue to drive up monetization which is important. But I think for us, it's very encouraging to see player retention at this early stage in the release of the game.

所以現在，我們正在繼續，我相信 I.K.他在評論中表示，不僅要吸引玩家，還要繼續增強遊戲，從貨幣化的角度調整遊戲，這樣我們就可以繼續推動貨幣化，這一點很重要。但我認為對我們來說，在遊戲發布的早期階段看到玩家的保留是非常令人鼓舞的。

Yes, related to marketing difference of Undead World. Fundamentally, performance marketing uses similar targeting (inaudible). However, each channel's inventory is totally different, and it will take time to get meaningful volume based on different genres. To that end, test larger volume, we are testing influencer marketing for Undead World. It is one of the different inventory compared to social casino app.

是的，與《亡靈世界》的行銷差異有關。從根本上來說，效果行銷使用類似的定位（聽不清楚）。然而，每個頻道的庫存完全不同，根據不同類型獲得有意義的銷售需要時間。為此，測試更大的容量，我們正在測試《Undead World》的影響者行銷。與社交賭場應用程式相比，它是不同的庫存之一。

And related to user player retention, actually, we now see above 20 to 25 for the user retention, which is a huge number compared to other competitors. So we will focus on how to utilize those retention to net highs going forward. Hope this helped.

與用戶玩家保留率相關，實際上，我們現在看到用戶保留率在 20 到 25 以上，與其他競爭對手相比，這是一個巨大的數字。因此，我們將重點放在如何利用這些保留來實現未來的淨高點。希望有幫助。

Yes. I think, Greg, you also asked about the final part of that. The next game, the next game in the expand beyond social casino category, that we have. And that's the space game that I think you referenced, which we had said in our comments here that we're planning open beta to be in the first quarter of 2022.

是的。我想，格雷格，你也問了最後一部分。下一個遊戲，我們擁有的超越社交賭場類別的下一個遊戲。我想您提到的就是這款太空遊戲，我們在評論中曾說過，我們計劃在 2022 年第一季進行公開測試。

Okay. Great. Yes. Nice to hear that it's on track. And yes, I think you previously said first half of next year. So good to hear, and I appreciate the additional color there.

好的。偉大的。是的。很高興聽到它步入正軌。是的，我想你之前說過明年上半年。很高興聽到，我很欣賞那裡的額外顏色。

I'm just wondering, too, as we kind of think about the fourth quarter, how kind of seasonality impacts the business? And how you're thinking about kind of the holiday season and maybe year-over-year impacts because I know you said kind of Q3 was impacted by more stay-at-home a year ago. So how you're thinking about that?

我也想知道，當我們思考第四季時，季節性對業務有何影響？您如何看待假期季節以及同比影響，因為我知道您說過第三季度受到一年前更多留在家裡的影響。那麼你對此有何看法？

Yes. I mean there's several or a couple, I guess, important seasonal factors in the fourth quarter. Certainly, one is the fact that there are more people at home -- separate from COVID, of course, there are more people home during the holidays. And generally, the holiday period is good for mobile gaming. And we've seen that, especially compared to, again, the seasonality that we've seen in past years in the third quarter, which includes the summer which has kind of people not at home. And as a result, not playing as much. Again, this is all ex-COVID. So I think that's one positive factor.

是的。我的意思是，我想第四季有幾個或幾個重要的季節性因素。當然，一個事實是，家裡的人更多了——除了新冠疫情之外，當然，假期期間回家的人也更多了。一般來說，假期對於手機遊戲來說是有利的。我們已經看到了這一點，特別是與過去幾年第三季的季節性相比，其中包括人們不在家的夏季。結果，玩得不多了。再說一遍，這都是前新冠疫情。所以我認為這是一個積極因素。

The other seasonal factor in the fourth quarter is CPIs, which tend to go up. And so I had mentioned that CPIs in the -- especially the latter part of the third quarter, we had seen increase. Now in October, we -- late September, October, we had actually seen -- had seen CPIs, both for Android and for iOS users decrease somewhat, which was good. But we certainly anticipate essentially starting now, if history is any guide, that as we get into the holidays, that CPIs will increase. And so that's something we have to be mindful of as we are always acquiring new players. But we certainly don't want to overspend. And as you know, ROI of acquired users is our most important -- one of our most important metrics that we follow.

第四季的另一個季節性因素是CPI，其趨於上漲。所以我提到消費者物價指數在——特別是第三季後半段——我們看到了成長。現在在 10 月份，我們——九月底、十月份，我們實際上已經看到——Android 和 iOS 用戶的 CPI 有所下降，這是好事。但我們當然預計從現在開始，如果歷史有任何指導的話，隨著假期的到來，消費者物價指數將會上漲。所以這是我們必須注意的事情，因為我們總是在招募新球員。但我們當然不想超支。如您所知，獲取用戶的投資報酬率是我們最重要的—我們遵循的最重要的指標之一。

Okay. Great. I was going to ask on M&A, but I think you covered that pretty well. I guess the last one for me, just relating to kind of OpEx trends going forward. I know you said you pulled back your spend a little bit, just seeing the trends on player acquisition costs. Any thoughts on that, I guess, going forward?

好的。偉大的。我本來想問有關併購的問題，但我認為你已經很好地回答了這個問題。我想最後一個對我來說只是與未來的營運支出趨勢有關。我知道你說過你稍微減少了支出，只是看到了玩家獲取成本的趨勢。我想，未來對此有什麼想法嗎？

Yes. I mean I think just actually following on to what I said a minute ago, I mean, we do have the seasonal increase second half of the quarter that we have to be mindful of in CPIs that would cause us maybe to pull back a bit. At the same time, we -- we'll have this quarter the first kind of -- and it's a full quarter impact of the launch of Undead World. And so we definitely will see investments in that area as we want to make sure we launch the game strongly. And so I would expect that would mean that overall, we would be spending more this quarter.

是的。我的意思是，我認為實際上按照我一分鐘前所說的，我的意思是，我們確實有本季度下半年的季節性增長，我們必須注意消費物價指數，這可能會導致我們略有回落。同時，我們——我們將在本季度迎來第一種——這是《不死世界》的推出對整個季度的影響。因此，我們肯定會看到該領域的投資，因為我們希望確保大力推出遊戲。因此，我預計這意味著總體而言，我們本季的支出將會更多。

(Operator Instructions) At this time, this concludes our question-and-answer session. I would now like to turn the call back to Mr. Sigrist.

（操作員說明） 至此，我們的問答環節就結束了。我現在想把電話轉回給西格里斯特先生。

Great, Bo In Hye. Thanks again. Thank you, guys, all for joining us on our call today and for your interest in DoubleDown. We look forward to sharing future updates with you as we continue to innovate and grow the business and take advantage of a truly exciting global digital gaming industry. Thanks again. Have a great rest of your day.

太棒了，寶仁惠。再次感謝。謝謝大家今天參加我們的電話會議以及對 DoubleDown 的興趣。隨著我們不斷創新和發展業務並充分利用真正令人興奮的全球數位遊戲產業，我們期待與您分享未來的最新動態。再次感謝。祝您有個愉快的一天。

Thank you for joining us today for DoubleDown's earnings call. You may now disconnect.

感謝您今天參加 DoubleDown 的財報電話會議。您現在可以斷開連線。