DoubleDown Interactive Co Ltd (DDI) 2023 Q4 法說會逐字稿

Good afternoon, and welcome to DoubleDown Interactive's earnings conference call for the fourth quarter and full year ended December 31, 2023. My name is Josh, and I will be your operator this afternoon.

下午好，歡迎參加 DoubleDown Interactive 截至 2023 年 12 月 31 日的第四季和全年財報電話會議。我叫喬希，今天下午我將擔任您的接線生。

Prior to this call, DoubleDown has issued its financial results for the fourth quarter of 2023 in a press release, a copy of which has been furnished; and a report on Form 6-K filed with the SEC and is available in the Investor Relations section of the company's website at www.doubledowninteractive.com. You can find the link to the Investor Relations section at the top of the homepage.

在此電話會議之前，DoubleDown 在新聞稿中發布了 2023 年第四季度的財務業績，並提供了副本；以及向 SEC 提交的 6-K 表報告，可在公司網站 www.doubledowninteractive.com 的投資者關係部分取得。您可以在主頁頂部找到投資者關係部分的連結。

Joining us on today's call, our DoubleDown CEO, Mr. In Keuk Kim; and its CFO, Mr. Joe Sigrist. Following the remarks, we will open the call for questions. Before we begin, Richard Land, the company's outside Investor Relations adviser, will make a brief introductory statement.

我們的 DoubleDown 執行長 In Keuk Kim 先生參加了今天的電話會議；及其財務長 Joe Sigrist 先生。發言結束後，我們將開始提問。在我們開始之前，公司外部投資者關係顧問理查德·蘭德將做一個簡短的介紹性演講。

Mr. Land?

蘭德先生？

Thank you, Josh. 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 meeting 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，喬許。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​​的一些評論將是根據 1933 年證券法修正案第 27A 條和 1934 年證券交易法第 21E 條在會議上發表的前瞻性陳述。經修訂，我們特此要求受到1995 年《私人證券訴訟改革法案》安全港條款的保護。

Forward-looking statements are statements about future events and include expectations and projections not present or historical facts -- excuse me, and can be identified by the use of words such as: may, might, will, expect, assume, believe, intend, estimate, continue, should, anticipate, or other similar terms. Forward-looking statements include, and are not limited to, those regarding the company's future plans, mergers and acquisitions, strategy, strategic and financial objectives, expected performance, and financial outlook. Forward-looking statements are subject to numerous risks and uncertainties that could cause actual results to differ materially and adversely from what the company expects. Therefore, you should exercise caution in interpreting and relying on them.

前瞻性陳述是關於未來事件的陳述，包括不存在的預期和預測或歷史事實——對不起，可以通過使用以下詞語來識別：可能、可能、將、期望、假設、相信、打算、估計、繼續、應該、預期或其他類似術語。前瞻性陳述包括但不限於有關公司未來計劃、併購、策略、策略和財務目標、預期業績和財務前景的陳述。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公司預期有重大不利差異。因此，您在解釋和依賴它們時應該小心謹慎。

We refer you to DoubleDown's annual report on Form 20-F filed with the SEC on March 31, 2023, and other SEC filings for a more detailed discussion of the risks that could impact future operating results and financial condition. 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.

我們建議您參閱 DoubleDown 於 2023 年 3 月 31 日向 SEC 提交的 20-F 表格年度報告以及其他 SEC 文件，以更詳細地討論可能影響未來營運績效和財務狀況的風險。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 by management 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.

在電話會議期間，管理階層將討論管理階層認為有助於評估公司經營績效的非公認會計準則衡量標準。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。

A full reconciliation of these measures to the most directly comparable GAAP measure is available in the earnings release and on our Form 6-K filed with the SEC prior to this call. I would like to remind everyone that this call is being recorded, and will be made available for replay via a link in the Investor Relations section of DoubleDown's website.

這些指標與最直接可比較的 GAAP 指標的完整調整可在收益報告和本次電話會議之前向 SEC 提交的 6-K 表格中找到。我想提醒大家，這次電話會議正在錄音，並將透過 DoubleDown 網站投資者關係部分的連結進行重播。

With that, it's now my pleasure to turn the call over to DoubleDown CEO, In Keuk Kim. Please go ahead, sir.

現在，我很高興將電話轉給 DoubleDown 執行長 In Keuk Kim。請繼續，先生。

Thank you, Richard, and good afternoon, everyone, and thank you for joining us on our 2023 fourth-quarter earnings call. Total Q4 revenue was $83.1 million, with $78.8 million generated by our social casino/free-to-play games, and $4.3 million coming from the operations of SuprNation in the month of November and December. The Q4 revenue from our social casino/free-to-play games was up nearly 8% on a quarterly sequential basis, and up 3% compared to Q4 2022.

謝謝理查德，大家下午好，謝謝您參加我們 2023 年第四季的財報電話會議。第四季總收入為 8,310 萬美元，其中 7,880 萬美元來自我們的社交賭場/免費遊戲，430 萬美元來自 SuprNation 在 11 月和 12 月的營運。我們的社交賭場/免費遊戲第四季營收季增近 8%，與 2022 年第四季相比成長 3%。

Adjusted EBITDA for the first quarter rose both sequentially and year over year to $36.2 million, while cash flow from operations was $29.7 million.

第一季調整後 EBITDA 環比和年比均成長至 3,620 萬美元，營運現金流為 2,970 萬美元。

Our flagship social casino game, DoubleDown Casino, or DTC, continues to be the driver of our solid results as full-year 2023 adjusted EBITDA reaching nearly $119 million and cash flow from operations for the 2023 full year exceeded $116 billion, excluding the final pension class action settlement payment earlier in the year.

我們的旗艦社交賭場遊戲DoubleDown Casino（簡稱DTC）繼續成為我們穩健業績的推動力，2023 年全年調整後EBITDA 達到近1.19 億美元，2023 年全年營運現金流超過1,160 億美元（不包括最終養老金）今年稍早的集體訴訟和解付款。

We've continued to generate year-over-year increases in some of our most important KPIs, including average monthly revenue per payer and payer conversion rates, which indicates our great ability to offer compelling entertainment value to our core paying players. These results largely reflect the propensity of DTC players to make in-app purchases and the continued increase in the amounts paid by payers. In addition, we released new device-like meta features in the first quarter focused on increasing player retention and engagement, including the lucky orb and [slang power features], which we believe ate overall monetization.

我們的一些最重要的 KPI 繼續實現同比增長，包括每位付費者的平均月收入和付費者轉換率，這表明我們有能力為核心付費玩家提供引人注目的娛樂價值。這些結果很大程度上反映了DTC玩家進行應用程式內購買的傾向以及支付者支付金額的持續增加。此外，我們在第一季發布了新的類似設備的元功能，重點是提高玩家保留率和參與度，包括幸運球和[俚語力量功能]，我們認為這些功能影響了整體貨幣化。

As we've discussed in the past, the DDC revenue largely reflects activity by our long-term base of players who have enjoyed our casino [start] games in many cases for several years. To put this in perspective, in 2023, approximately 94% of our revenue was generated from our 2010 to 2022 player cohorts. In other words, from players acquired in previous years, last October, we have allocated a portion of our strong cash flow from operations to higher SuprNation, a Western European-focused iGaming operator, whose two primary markets are Sweden and the UK for a total cash consideration of approximately $36.5 million.

正如我們過去所討論的，DDC 收入在很大程度上反映了我們的長期玩家群的活動，這些玩家多年來一直喜歡我們的賭場[開始]遊戲。從這個角度來看，到 2023 年，我們約有 94% 的收入來自 2010 年至 2022 年的玩家群。換句話說，從去年10 月收購的玩家中，我們將營運產生的強勁現金流的一部分分配給了更高的SuprNation，這是一家專注於西歐的iGaming 營運商，其兩個主要市場是瑞典和英國，總計現金代價約3,650萬美元。

This position is the first step in our goal to diversify our sources of revenue into new gaming categories that have highly addressable market opportunities and that are complementary to our core social casino business.

這個職位是我們將收入來源多元化到新遊戲類別的目標的第一步，這些新遊戲類別具有高度可利用的市場機會，並且與我們的核心社交賭場業務相輔相成。

SuprNation is depreciated by gaming operator, whose primary focus is on engaging the entertainment focused online slot player rather than the more bulletized player. It secures brand offer's compelling features for these players, such as peer-to-peer competition and elimination tournaments, as players play flat games alongside one another. SuprNation exited 2023 with an unaudited revenue run rate of approximately $6.5 million per quarter.

SuprNation 受到遊戲營運商的貶低，他們的主要重點是吸引以娛樂為主的線上老虎機玩家，而不是更多的子彈玩家。它確保了品牌為這些玩家提供的引人注目的功能，例如當玩家彼此並肩玩平面遊戲時，點對點競爭和淘汰賽。SuprNation 到 2023 年結束時的未經審計的收入運行率為每季約 650 萬美元。

Going forward, we believe that as part of DoubleDown, we can help this business scale its top line. DoubleDown's ability to support and grow SuprNation business includes leveraging its expertise in game development, marketing, and player engagement, and monetization to execute on the exciting growth opportunities in iGaming.

展望未來，我們相信，作為 DoubleDown 的一部分，我們可以幫助該業務擴大收入。DoubleDown 支援和發展 SuprNation 業務的能力包括利用其在遊戲開發、行銷、玩家參與以及貨幣化方面的專業知識來抓住 iGaming 領域令人興奮的成長機會。

We are pleased to have this acquisition complete, and to be working closely with the SuprNation leadership team to help bring the business to the next level. We see the iGaming sector as just one of the complementary gaming categories, where we can deploy our resources and expertise to create new value for our shareholders.

我們很高興完成此次收購，並與 SuprNation 領導團隊密切合作，幫助業務邁上新台階。我們將網路博彩產業視為互補的博彩類別之一，我們可以利用我們的資源和專業知識為股東創造新價值。

For example, we are now in the process of launching our first game in the skill-based gaming segment. This game, Cash Me Out Bingo, which was developed by one of our studios in Korea, allows players to compete against each other in a skill-based bingo competition with the opportunity to win a portion of the app-specific currency and/or real cash that is paid by each of the participating players. We began the launch of Cash Me Out Bingo during the latter part of 2023, and we are now ramping marketing investment in the current quarter to hire players as a skill playing activity.

例如，我們現在正在推出基於技能的遊戲領域的第一款遊戲。這款名為 Cash Me Out Bingo 的遊戲由我們在韓國的工作室開發，允許玩家在基於技能的賓果比賽中相互競爭，並有機會贏得一部分應用程式特定貨幣和/或真實貨幣。每個參與玩家支付的現金。我們在 2023 年下半年開始推出 Cash Me Out Bingo，目前我們正在本季加大行銷投資，以僱用玩家作為技能遊戲活動。

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？

So thank you, IK, and good afternoon, everyone. Our revenues for the fourth quarter of 2023 were $83.1 million, and were comprised of $78.8 million in revenues from our social casino/free-to-play games and $4.3 million of revenues from SuprNation for the 61 days when we owned the company, following the October 31 acquisition closed. This compares to revenues of $76.2 million last year.

謝謝你，IK，大家下午好。我們 2023 年第四季的收入為 8,310 萬美元，其中包括我們擁有該公司 61 天內來自社交賭場/免費遊戲的 7,880 萬美元收入和來自 SuprNation 的 430 萬美元收入。10 月 31 日收購結束。相比之下，去年的收入為 7,620 萬美元。

As IK mentioned, Q4 social casino/free-to-play revenue, excluding SuprNation, was up 8% sequentially from the third quarter of 2023, and 3% year over year. In the fourth quarter, several KPI metrics for our social casino business improved compared to the year-ago period, including average revenue per daily active user, or ARPDAU, increased to $1.24 in Q4 2023 from $0.98 in Q4 2022.

正如 IK 所提到的，第四季社交賭場/免費遊戲收入（不包括 SuprNation）較 2023 年第三季較上季成長 8%，較去年同期成長 3%。第四季度，我們社交賭場業務的多項 KPI 指標較去年同期有所改善，包括每日活躍用戶平均收入 (ARPDAU) 從 2022 年第四季的 0.98 美元增至 2023 年第四季的 1.24 美元。

Payer conversion ratio, which is the percentage of players who play within the social casino apps, increased to 6.4% in Q4 2023 compared to 5.4% in Q4 2022. An average monthly revenue per payer increased 23% from $222 and $227 in Q4 2022 to $279 in Q4 of 2023.

付款人轉換率（即在社群賭場應用程式中玩遊戲的玩家百分比）從 2022 年第四季的 5.4% 增至 2023 年第四季的 6.4%。每位付款人的平均月收入從 2022 年第四季的 222 美元和 227 美元增加到 2023 年第四季的 279 美元，成長了 23%。

On a quarterly sequential basis, total operating expenses increased from $43.3 million in the third quarter of 2023 to $47.5 million in the fourth quarter of 2023, reflecting in part the new operating expenses associated with our ownership of SuprNation. Even with these new operating costs, operating expenses for Q4 2023 declined from $51.5 million in Q4 last year, excluding the non-cash goodwill impairment charge of $269.9 million taken in that period. This decrease was primarily due to lower cost of revenue and lower sales and marketing expenses from the year-ago period.

按季度連續計算，總營運費用從 2023 年第三季的 4,330 萬美元增加到 2023 年第四季的 4,750 萬美元，部分反映了與我們擁有 SuprNation 相關的新營運費用。即使考慮到這些新的營運成本，2023 年第四季的營運費用仍較去年第四季的 5,150 萬美元有所下降，不包括該期間採取的 2.699 億美元的非現金商譽減損費用。這一下降主要是由於與去年同期相比收入成本下降以及銷售和行銷費用下降。

Sales and marketing expenses for the fourth quarter of 2023 were $9.9 million, a decline of 41% compared to Q4 2022, and 7% lower on a quarterly sequential basis. Our efforts to acquire new social casino players through advertising, which historically represented the primary cost in the sales and marketing category, continued to reflect our focus on spending to ensure we deliver the best return on this investment. For the first half of 2024, we anticipate that our overall sales and marketing expenses will increase from the Q4 total due to the combination of the expected full effect of the SuprNation acquisition and the launch of the new skill-based game IK described earlier.

2023 年第四季的銷售和行銷費用為 990 萬美元，與 2022 年第四季相比下降 41%，季減 7%。我們透過廣告來吸引新的社交賭場玩家的努力，歷來是銷售和行銷類別中的主要成本，繼續反映了我們對支出的關注，以確保我們為這項投資帶來最佳回報。對於 2024 年上半年，由於 SuprNation 收購的預期全面影響以及前面描述的新技能遊戲 IK 的推出，我們預計我們的整體銷售和行銷費用將較第四季度總額有所增加。

Net income for the fourth quarter of 2023 was $35.5 million (sic - see press release, "$25.5 million") or $10.27 per diluted share, and $0.51 per ADS, compared to a total net loss of $194.4 million or a loss of $78.47 per diluted share, and a loss of $3.92 per ADS in the fourth quarter of 2022. Note that the Q4 2022 results were impacted by the non-cash goodwill impairment charge of $269.9 million I noted earlier.

2023 年第四季的淨利潤為3,550 萬美元（原文如此- 參見新聞稿，「2,550 萬美元」）或稀釋後每股10.27 美元，每股美國存託股0.51 美元，而總淨虧損為1.944 億美元或稀釋後每股虧損78.47 美元股，2022 年第四季每股美國存託股虧損 3.92 美元。請注意，2022 年第四季的業績受到我先前提到的 2.699 億美元非現金商譽減損費用的影響。

Adjusted EBITDA for the fourth quarter of 2023 was $36.2 million compared to $24.7 million for the prior year quarter. Adjusted EBITDA margin was 43.5% for Q4 2023, representing an improvement from 32.4% in Q4 2022 and 40.7% in Q3 2023.

2023 年第四季調整後 EBITDA 為 3,620 萬美元，去年同期為 2,470 萬美元。2023 年第四季調整後 EBITDA 利潤率為 43.5%，較 2022 年第四季的 32.4% 和 2023 年第三季的 40.7% 有所改善。

For the 2023 full-year period, we generated adjusted EBITDA of $118.9 million, up 17%, compared to the 2022 full-year period. And the adjusted EBITDA margin for the 2023 full year -- excuse me, for the 2023 12-month period was 38.5%, an improvement from the 2022 full year of 31.6%.

2023 年全年，我們的調整後 EBITDA 為 1.189 億美元，比 2022 年全年成長 17%。2023 年全年調整後的 EBITDA 利潤率－請問，2023 年 12 個月期間為 38.5%，比 2022 年全年的 31.6% 有所改善。

Net cash flows from operation were $29.7 million for the fourth quarter of 2023 compared to cash flow used in operations of $20.9 million in the prior year period, which included the impact of a $50 million payment toward the Benson litigation settlement in Q4 of 2022. Excluding the $95.3 million payment in the 2023 second quarter for the Benson litigation settlement, cash flows provided by operating activities were $116.1 million for the year ended December 31, 2023.

2023 年第四季營運產生的現金流量淨額為 2,970 萬美元，而去年同期營運使用的現金流量為 2,090 萬美元，其中包括 2022 年第四季支付 Benson 訴訟和解費用的 5,000 萬美元的影響。不包括 2023 年第二季 Benson 訴訟和解支付的 9,530 萬美元，截至 2023 年 12 月 31 日止年度，經營活動提供的現金流量為 1.161 億美元。

Finally, turning to our balance sheet. As of December 31, 2023, we had $274.7 million in cash, cash equivalents, and short-term investments. Excluding the loan with our controlling shareholder, we had a net cash position of approximately $235 million at year end or approximately $4.75 per ADS. This completes my financial summary.

最後，轉向我們的資產負債表。截至 2023 年 12 月 31 日，我們擁有 2.747 億美元的現金、現金等價物和短期投資。不包括我們控股股東的貸款，我們年底的淨現金部位約為 2.35 億美元，即每股美國存託憑證約為 4.75 美元。我的財務摘要到此結束。

Now, I will turn the call over to IK for closing remarks.

現在，我將把電話轉給 IK 進行總結發言。

Thank you, Joe. We began 2024 with considerable momentum based on the Q4 results of our core social casino business, the recent close of our first post-IPO acquisition, and the launch of our new internally developed game in the skill-based category.

謝謝你，喬。基於我們核心社交賭場業務第四季度的業績、最近完成的首次 IPO 後收購，以及在技能類遊戲中推出的新的內部開發遊戲，我們在 2024 年伊始就保持了相當大的勢頭。

In our core social casino business, we will continue to focus on enhancing the entertainment value of DoubleDown Casino with a goal of driving more engagement and even greater on applications.

在我們的核心社交賭場業務中，我們將繼續專注於提高 DoubleDown Casino 的娛樂價值，目標是推動更多的參與度，甚至更大的應用程式。

We also are focused on generating more of our social casino purchasing through direct-to-consumer methods, thereby improving margins in the largest part of our company's business.

我們也致力於透過直接面向消費者的方式增加社交賭場的購買量，從而提高我們公司大部分業務的利潤率。

With SuprNation, our goal, our goal is to grow the business from its current revenue rental with a combination of increased marketing investment, and by leveraging those skills and expertise DoubleDown brings to this combination. AAnd we will continue to pursue growth through participation in adjacent categories of gaming through both our organic efforts and as we continue to evaluate M&A opportunities.

SuprNation 是我們的目標，我們的目標是透過增加行銷投資，並利用 DoubleDown 為這種組合帶來的技能和專業知識，從目前的租金收入中發展業務。答：我們將透過我們的有機努力以及繼續評估併購機會，繼續透過參與相鄰的遊戲類別來追求成長。

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) Aaron Lee, Macquarie.

（操作員說明）Aaron Lee，麥格理。

Hey, good afternoon. Thanks for taking my question. It's just a few more months under your belt with SuprNation. Can you just help us with any guidelines to help us think about the growth potential in 2024? And are there any major milestones that we should look out for as you grow that business?

嘿，下午好。感謝您提出我的問題。您在 SuprNation 的工作時間只剩下幾個月了。您能否幫助我們提供一些指導方針來幫助我們思考 2024 年的成長潛力？當您發展業務時，我們應該關注哪些重大里程碑？

Yeah, thanks Aaron. Appreciate it. As we've discussed, the most important near-term lever for us is marking investment, and we want to do that in support of the way they have already been marketing and acquiring new players and high ROI new players. And we also are augmenting that with assistance and other ways of find new players through, for instance, performance marketing, that kind of thing.

是的，謝謝亞倫。欣賞它。正如我們所討論的，對我們來說最重要的近期槓桿是標記投資，我們希望這樣做是為了支持他們已經行銷和獲取新玩家和高投資回報率新玩家的方式。我們也透過幫助和其他尋找新玩家的方式來增強這一點，例如透過績效行銷之類的事情。

Relative to growth, as I think we've also discussed, our primary -- again, this is very short-term objective, is to scale the business greater in their existing strong markets, which are Sweden and the UK and only turn to newer markets after we have worked on that for some time.

相對於成長，正如我認為我們也討論過的那樣，我們的首要目標——同樣，這是非常短期的目標，是在現有的強大市場（瑞典和英國）擴大業務規模，並且只會轉向更新的市場在我們對此進行了一段時間的研究後，市場。

So at this point, we aren't giving guidance relative to what we think the business can ultimately do in the shorter term, but I would just say that their market share in both Sweden and the UK is quite low -- I mean single-digit market share. And so there's there's significant opportunity, just it was in those two countries in the short term.

因此，在這一點上，我們並沒有就我們認為該業務最終可以在短期內做什麼提供指導，但我只想說他們在瑞典和英國的市場份額相當低——我的意思是單一——數字市場占有率.因此，短期內這兩個國家存在重大機會。

Got you. Okay. And then a quick follow up, I wanted to dig into your fourth quarter average monthly revenue per payer, which was up really nicely over 20% year over year. Can you just unpack what drove that and what you did differently versus past quarters?

明白你了。好的。然後快速跟進，我想深入了解第四季度每位付款人的平均月收入，比去年同期成長超過 20%。您能否解釋一下推動這一趨勢的因素以及您與過去幾季相比有何不同？

Yeah. I think the most important thing we want to highlight is the fact that we've been investing in the product itself in DDC. And maybe I can talk a little bit about some of our newer monetization and retention features, the meta features that we have especially started to implement Q4, we'll do more this quarter.

是的。我認為我們想要強調的最重要的事情是我們一直在 DDC 的產品本身上進行投資。也許我可以談談我們的一些新的貨幣化和保留功能，我們特別開始實施第四季度的元功能，我們將在本季做得更多。

So IK, you want to talk a little bit about our focus in adding new meta features and how important that is to get payers to want to pay increasing amounts with us?

那麼，我想談談我們在添加新元功能方面的重點，以及讓付款人願意向我們支付越來越多的金額有多重要？

Yeah. Hi, Aaron. I can explain about our new meta features, like your (inaudible) and frame power. Those meta features are getting more reward features as users play more, simply it could raise slot-playing user's retention board.

是的。嗨，亞倫。我可以解釋我們的新元功能，例如您的（聽不清楚）和框架功率。隨著用戶玩得越多，這些元功能就會獲得更多的獎勵功能，簡單地說，它可以提高老虎機用戶的保留率。

So for example, about the feature itself, log yards are awarded on slot means of tiny X or more -- or as the viewers who are dedicated, specifically bingo and daily challenges, those all kind of rings meta features could increase user engagement and retention. So it helps users to play more and more. So that's what I just wanted to highlight our products, our product features.

例如，關於功能本身，日誌碼是在小X或更多的老虎機上獎勵的——或者作為專注的觀眾，特別是賓果遊戲和日常挑戰，這些各種環元功能可以提高用戶參與度和保留率。所以它可以幫助用戶玩得越來越多。這就是我只想強調我們的產品、我們的產品功能。

Okay, great. Got it. Thank you very much. Great quarter.

好的，太好了。知道了。非常感謝。很棒的季度。

Greg Gibas, Northland Securities.

吉巴斯 (Greg Gibas)，北國證券。

Hey IK and Joe, thanks for taking the questions and congrats on the nice results. I wanted to just maybe dive in a little bit more, like maybe what you attribute that, I think, 8% sequential sequential growth in the core casino -- or social casino and then 3% year over year. What you kind of attribute that to? And then also what's driving that lower cost of revenue year over year?

嘿，IK 和 Joe，感謝您提出問題，並祝賀取得了良好的結果。我想再深入一點，就像你所認為的那樣，核心賭場或社交賭場連續成長 8%，然後比去年同期成長 3%。你認為這歸因於什麼？那麼是什麼推動了收入成本逐年下降呢？

Yeah. I'm sorry, what was the second part of that, Greg, you were a little light on the volume there for me, sorry?

是的。抱歉，第二部分是什麼，格雷格，你對我來說音量有點輕，抱歉？

Sorry about that. Yeah, I think you spoke to lower cost of revenue year over year. I'm just curious what's kind of driving that?

對於那個很抱歉。是的，我認為您談到了收入成本逐年下降。我只是好奇是什麼驅動了它？

Yeah. So let me start with that one, and maybe IK and I can both talk about what we've done better and what we see as it relates to the core social casino business to drive revenue growth. Relative to cost of revenue, as we have done over the course of the year, we, in Q4, own spent less on marketing, specifically acquiring new users as we continue to see a somewhat challenging environment to get the right ROI for the acquisition of new users.

是的。因此，讓我從這一點開始，也許 IK 和我都可以談談我們做得更好的方面以及我們所看到的與核心社交賭場業務相關的內容，以推動收入成長。相對於收入成本，正如我們在這一年中所做的那樣，我們在第四季度的營銷支出有所減少，特別是獲取新用戶，因為我們繼續看到一個具有一定挑戰性的環境，以獲取正確的投資報酬率新用戶。

And as a result, we have continued to curtail our spend to acquire new users; again, it's very, I'll say, fact based. It's very much based on our evaluation of the [37] 21-day payback for newly acquired cohorts and that had us continue to curtail marketing to acquire new players. I mean, that was the primary driver of the reduction in cost of revenue for this quarter.

因此，我們繼續削減獲取新用戶的支出；再說一次，我想說，這是基於事實的。這在很大程度上是基於我們對新獲得的群體的 [37] 21 天回報的評估，這讓我們繼續削減行銷來獲得新玩家。我的意思是，這是本季收入成本下降的主要驅動力。

But relative to the top line, I mean, again, I think -- and IK, chime in if you have any other things to comment on, I really do think the product features have really helped create excitement for players again, as IK said, to return to play, to want to be playing more and longer. And also, it gives us marketing opportunities.

但相對於頂線，我的意思是，我認為 - IK，如果您還有其他要評論的事情，請插話，我確實認為產品功能確實有助於再次為玩家帶來興奮，正如 IK 所說，返回比賽，想要比賽更多、更長時間。而且，它也為我們提供了行銷機會。

So we can use of features in our content; in the content, the ads themselves, that we go out through our various partners in order to acquire new players, to try to reactivate lapsed players, or even lapsed payers who may still be playing but haven't paid for a while. Those new features are really exciting things for us to use to get players to reengage or to engage more.

所以我們可以在我們的內容中使用特徵；在內容、廣告本身中，我們透過各個合作夥伴推出，以獲取新玩家，嘗試重新啟動流失的玩家，甚至是可能仍在玩但有一段時間沒有付費的流失付費者。這些新功能對我們來說確實是令人興奮的事情，可以用來讓玩家重新參與或更多參與。

Great. Very helpful. And I know you're not officially guiding, but wanted to get just maybe your high-level thoughts on financial expectations for next year? Like, you just spoke to the product features driving player excitement, that return to growth. When I think about the core social casino business, should we think about this 3% growth year over year as being fair assuming no other changes? Just kind of wondering how you're thinking about the top line in 2024?

偉大的。很有幫助。我知道您並不是正式提供指導，但只是想了解您對明年財務預期的高層想法？就像，您剛剛談到了推動玩家興奮、恢復成長的產品功能。當我思考核心社交賭場業務時，假設沒有其他變化，我們是否應該認為 3% 的年成長是公平的？只是想知道您如何看待 2024 年的營收？

Yeah. No, I appreciate the question. And the reality is as we all know, and especially if we look at the industry analyst reports, the social casino category is a very mature category and estimates for the entire market, suggests a flattish market going forward from 2023 to 2024 and even beyond for the next couple of years after that.

是的。不，我很欣賞這個問題。眾所周知，現實情況是，尤其是如果我們查看行業分析師報告，社交賭場類別是一個非常成熟的類別，對整個市場的估計表明，從 2023 年到 2024 年，甚至更久，市場將持平。之後的幾年。

So I think the core market is flat. The question is, can we -- as we did in Q4 frankly, can we take share based on the things that we uniquely and in a differentiated way do with DoubleDown Casino? And we were successfully able to do that in Q4, and we strive to do that every quarter.

所以我認為核心市場持平。問題是，我們能否像第四季度所做的那樣，坦率地說，我們能否根據我們在 DoubleDown Casino 中獨特且差異化的方式來獲得份額？我們在第四季度成功做到了這一點，我們努力每個季度都做到這一點。

That's our -- frankly, that's our objective, that's our goal, that's our challenge. And that is something that we've we've been very focused on doing, but recognize that it's in the context of essentially a flat -- very profitable, very cash generative category of gaming, but essentially a flat category.

這就是我們——坦白說，這就是我們的目標，這就是我們的目標，這就是我們的挑戰。這是我們一直非常專注於做的事情，但要認識到，它本質上是一個平坦的背景——非常有利可圖、非常能產生現金的遊戲類別，但本質上是一個平坦的類別。

Got it. That's fair. I think lastly for me, just wanted to follow up on SuprNation, since closing it being at the end of October, how is it performed relative to your expectations? And I know it's just given it's been a couple of months here, you spoke to the initiatives that you implemented. I guess, the focus early is Sweden and the UK, when do you foresee looking at new markets for that business?

知道了。這還算公平。我想最後對我來說，只是想跟進 SuprNation，因為它已於 10 月底關閉，相對於您的期望，它的表現如何？我知道，鑑於您在這裡已經幾個月了，您談到了您實施的舉措。我想，早期的重點是瑞典和英國，您預計什麼時候會為該業務尋找新市場？

Thanks, Greg, this is IK. The most important thing for us about SuprNation is to find scalability to get a bigger market share. Although a traditional iGaming casino business could only provide just playing casino contents and experienced so far, now we want to seek additional differentiated opportunities by offering compelling features for these players, such as peer-to-peer competition as I talked earlier.

謝謝，格雷格，這是 IK。對我們來說，SuprNation 最重要的是找到可擴展性以獲得更大的市場份額。雖然傳統的 iGaming 賭場業務只能提供目前為止所玩的賭場內容和經驗，但現在我們希望透過為這些玩家提供引人注目的功能來尋求額外的差異化機會，例如我之前談到的點對點競爭。

So far, November, December, we have a bit good results so far. So we've packed our ongoing development and improvement. If everything goes well, then we will increase our marketing capabilities to scale up quickly.

到目前為止，11 月、12 月，我們取得了一些不錯的成績。因此，我們已經完成了持續的開發和改進。如果一切順利的話，我們將增強我們的行銷能力，以迅速擴大規模。

Got it. Thank you.

知道了。謝謝。

Thanks, Greg.

謝謝，格雷格。

(Operator Instructions) One moment for questions.

（操作員說明）請稍等一下提問。

And I'm not showing any more questions at this time. I would now like to turn the call back over to Joe Sigrist for any closing remarks.

目前我不會再提出任何問題。我現在想將電話轉回給喬·西格里斯特，請他發表結束語。

Great. Thanks, Josh. Appreciate it. Thanks, everyone, for your time today. And we look forward to talking to you again soon, and have a great evening and a great Wednesday tomorrow. Bye-bye.

偉大的。謝謝，喬許。欣賞它。謝謝大家今天抽出時間。我們期待很快再次與您交談，並祝您度過一個愉快的夜晚和明天愉快的星期三。再見。

Thank you for your participation. You may now disconnect.

感謝您的參與。您現在可以斷開連線。