Skip to main content

DoubleDown is going public: Why isn’t its IPO worth more?

Agora isn’t the only company headquartered outside the United States aiming to go public domestically this quarter. After catching up on Agora’s F-1 filing, the China-and-U.S.-based, API-powered tech company that went public last week, today we’re parsing DoubleDown Interactive’s IPO document.


The Exchange is a daily look at startups and the private markets for Extra Crunch subscribers; use code EXCHANGE to get full access and take 25% off your subscription.


The mobile gaming company is targeting the NASDAQ and wants to trade under the ticker symbol “DDI.”

As with Agora, DoubleDown filed an F-1, instead of an S-1. That’s because it’s based in South Korea, but it’s slightly more complicated than that. DoubleDown was founded in Seattle, according to Crunchbase, before selling itself to DoubleU Games, which is based in South Korea. So, yes, the company is filing an F-1 and will remain majority-held by its South Korean parent company post-IPO, but this offering is more a local affair than it might at first seem.

Even more, with a $17 to $19 per-share IPO price range, the company could be worth up to nearly $1 billion when it debuts. Does that pricing make sense? We want to find out.

So let’s quickly explore the company this morning. We’ll see what this mobile, social gaming company looks like under the hood in an effort to understand why it is being sent to the public markets right now. Let’s go!

Fundamentals

Any gaming company has to have its fun-damentals in place so that it can have solid financial results, right? Right? [Editor’s note: A

Anyway, DoubleDown is a nicely profitable company. In 2019 its revenue only grew a hair to $273.6 million from $266.9 million the year before (a mere 2.5% gain), but the company’s net income rose from $25.1 million to $36.3 million, and its adjusted EBITDA rose from $85.1 million to $101.7 million over the same period.



from Mobile – TechCrunch https://ift.tt/2NAE2TA

Comments

Popular posts from this blog

TalentLMS

 

The best cheap PS4 bundles, deals and prices in the November sales

Black Friday sales are coming thick and fast and with the weekend's excellent PS4 bundle deals still in stock you'll be happy to find some amazing prices on the Slim and Pro models this week - and we've rounded them up in our Black Friday PS4 deals page for you too. If you're looking for a cheap PS4 bundle deal, this week is a fantastic time to buy, with prices as low as £239 on the Slim and £290 on the Pro.  You're in for a great time too, as so many of the best PS4 games are super cheap nowadays. You've got plenty of great titles to enjoy for far less than they originally sat on store shelves for, and over the Black Friday sales you'll have more than enough opportunity to take advantage of even lower game prices.  Naturally, lots of the below PS4 bundles come with the hottest games. And yes, we've tracked down the new Limited Edition Days of Play PS4 for you too.  We're on the hunt for the lowest PS4 prices all year round, so we aren't ea...