Feb. 12 at 1:12 PM
$DDI So, let’s do a recap:
The company holds
$9 in net cash per share (
$455M net cash), and the potential growth engine is SuprNation, which grew 85% YoY, representing 17% of revenue.
The social casino business declined 3% YoY, with a
$9 million decrease. OPEX increased 14% due to higher marketing costs (customer acquisition costs) and administrative costs accounting for 85% of the OPEX increase. On the other hand, revenue increased 5.5%.
However, net income, excluding the
$8M impairment loss related to SuprNation, would still have declined 10%. From what I’m seeing, DDI is a massive cash cow, but management appears somewhat lousy, as the company appears overcapitalized, as repeatedly mentioned in the call.
So, it all comes down to what they are going to do with the cash. If they continue pursuing acquisitions which for now haven't been amazing, they might be able to turn around the business despite its current declining trend. Thoughts @HotBaht ?
