Cover
Cover | 3 Months Ended |
Mar. 31, 2021 | |
Document Information [Line Items] | |
Document Type | POS AM |
Amendment Flag | false |
Entity Registrant Name | DoubleDown Interactive Co., Ltd. |
Entity Central Index Key | 0001799567 |
Entity Small Business | false |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Entity Incorporation, State or Country Code | M5 |
Entity Address, Address Line One | 13F, Gangnam Finance Center |
Entity Address, Address Line Two | 152, Teheran-ro Gangnam-gu |
Entity Address, City or Town | Seoul |
Entity Address Postal Zip Code | 06236 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income and Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Statement of Comprehensive Income [Abstract] | |||||
Revenue | $ 96,667 | $ 76,061 | $ 358,342 | $ 273,610 | |
Operating expenses: | |||||
Cost of revenue | [1] | 33,848 | 26,876 | 126,255 | 99,620 |
Sales and marketing | [1] | 19,728 | 14,506 | 71,225 | 35,827 |
Research and development | [1] | 5,691 | 4,350 | 18,784 | 19,245 |
General and administrative | [1] | 4,304 | 5,028 | 21,721 | 17,198 |
Depreciation and amortization | 7,476 | 7,980 | 31,574 | 33,422 | |
Total operating expenses | 71,047 | 58,740 | 269,559 | 205,312 | |
Operating income | 25,620 | 17,321 | 88,783 | 68,298 | |
Other income (expense): | |||||
Interest expense | (509) | (6,051) | (10,786) | (26,566) | |
Interest income | 51 | 31 | 197 | 524 | |
Gain on foreign currency transactions | 243 | 877 | 2,347 | 4,128 | |
Gain (loss) on foreign currency remeasurement of intercompany item | 45 | 4,234 | (244) | 3,206 | |
Other, net | 657 | 76 | (5,080) | 277 | |
Total other expense, net | 487 | (833) | (13,566) | (18,431) | |
Income before income tax | 26,107 | 16,488 | 75,217 | 49,867 | |
Income tax expense | (6,691) | (3,628) | (21,594) | (13,542) | |
Net income | 19,416 | 12,860 | 53,623 | 36,325 | |
Other comprehensive income (expense): | |||||
Pension adjustments, net of tax | (55) | (26) | (294) | (385) | |
Gain on foreign currency translation | 1,329 | 9,565 | 13,676 | 9,742 | |
Comprehensive income | $ 20,690 | $ 22,399 | $ 67,005 | $ 45,682 | |
Earnings per share: | |||||
Basic | $ 8.77 | $ 10.78 | $ 29.67 | $ 30.46 | |
Diluted | $ 8.77 | $ 7.20 | $ 26.20 | $ 21.87 | |
Weighted average shares outstanding: | |||||
Basic | 2,214,522 | 1,192,725 | 1,807,410 | 1,192,725 | |
Diluted | 2,214,522 | 2,036,851 | 2,149,114 | 1,995,131 | |
[1] | Excluding Depreciation and amortization |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | |||
Cash and cash equivalents | $ 84,436 | $ 63,188 | $ 42,418 |
Accounts receivable | 34,893 | 23,299 | 19,811 |
Prepaid expenses and other assets | 2,315 | 4,020 | 3,635 |
Total current assets | 121,644 | 90,507 | 65,864 |
Property and equipment, net | 356 | 377 | 379 |
Operating lease right-of-use assets | 9,155 | 9,987 | 12,384 |
Intangible assets, net | 63,934 | 71,364 | 102,697 |
Goodwill | 633,965 | 633,965 | 633,965 |
Deferred tax asset | 537 | 560 | |
Other non-current assets | 71 | 71 | 113 |
Total assets | 829,662 | 806,831 | 815,402 |
Current liabilities: | |||
Short-term senior note | 34,548 | ||
Accounts payable and accrued expenses | 15,593 | 16,646 | 10,915 |
Short-term operating lease liabilities | 3,014 | 3,033 | 2,795 |
Income taxes payable | 6,617 | 2,838 | 171 |
Contract liabilities | 1,969 | 2,415 | 1,804 |
Other current liabilities | 957 | 717 | 261 |
Total current liabilities | 28,150 | 25,649 | 50,494 |
Bonds | 256,133 | ||
Long-term borrowings with related party | 44,111 | 45,956 | 86,371 |
Long-term operating lease liabilities | 6,960 | 7,831 | 10,424 |
Deferred tax liabilities, net | 22,079 | 20,154 | 24,008 |
Other non-current liabilities | 8,161 | 7,730 | 7,304 |
Total liabilities | 109,461 | 107,320 | 434,734 |
Shareholders' equity: | |||
Common stock | 18,924 | 18,924 | 10,603 |
Additional paid-in-capital | 588,064 | 588,064 | 344,547 |
Accumulated other comprehensive income | 24,089 | 22,815 | 9,433 |
Retained earnings (deficit) | 89,124 | 69,708 | 16,085 |
Total shareholders' equity | 720,201 | 699,511 | 380,668 |
Total liabilities and shareholders' equity | $ 829,662 | $ 806,831 | $ 815,402 |
Condensed Consolidated Statem_2
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] |
Beginning balance at Dec. 31, 2018 | $ 329,862 | $ 10,603 | $ 339,423 | $ 76 | $ (20,240) |
Beginning balance (in shares) at Dec. 31, 2018 | 1,192,725 | ||||
Pension adjustments, net of tax | (385) | (385) | |||
Gain on foreign currency translation | 9,742 | 9,742 | |||
Net income | 36,325 | 36,325 | |||
Capital investment from parent | 5,124 | 5,124 | |||
Ending balance at Dec. 31, 2019 | 380,668 | $ 10,603 | 344,547 | 9,433 | 16,085 |
Ending balance (in shares) at Dec. 31, 2019 | 1,192,725 | ||||
Pension adjustments, net of tax | (26) | (26) | |||
Gain on foreign currency translation | 9,565 | 9,565 | |||
Net income | 12,860 | 12,860 | |||
Capital investment from parent | 369 | 369 | |||
Ending balance at Mar. 31, 2020 | 403,436 | $ 10,603 | 344,916 | 18,972 | 28,945 |
Ending balance (in shares) at Mar. 31, 2020 | 1,192,725 | ||||
Beginning balance at Dec. 31, 2019 | 380,668 | $ 10,603 | 344,547 | 9,433 | 16,085 |
Beginning balance (in shares) at Dec. 31, 2019 | 1,192,725 | ||||
Pension adjustments, net of tax | (294) | (294) | |||
Gain on foreign currency translation | 13,676 | 13,676 | |||
Net income | 53,623 | 53,623 | |||
Capital investment from parent | 369 | 369 | |||
Exercise of warrants | 64,374 | $ 2,496 | 61,878 | ||
Exercise of warrants (in shares) | 306,539 | ||||
Conversion of convertible bonds | 187,095 | $ 5,825 | 181,270 | ||
Conversion of convertible bonds (in shares) | 715,258 | ||||
Ending balance at Dec. 31, 2020 | 699,511 | $ 18,924 | 588,064 | 22,815 | 69,708 |
Ending balance (in shares) at Dec. 31, 2020 | 2,214,522 | ||||
Pension adjustments, net of tax | (55) | (55) | |||
Gain on foreign currency translation | 1,329 | 1,329 | |||
Net income | 19,416 | 19,416 | |||
Ending balance at Mar. 31, 2021 | $ 720,201 | $ 18,924 | $ 588,064 | $ 24,089 | $ 89,124 |
Ending balance (in shares) at Mar. 31, 2021 | 2,214,522 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flow from operating activities: | ||||
Net income | $ 19,416 | $ 12,860 | $ 53,623 | $ 36,325 |
Adjustments to reconcile net income to net cash from operating activities: | ||||
Depreciation and amortization | 7,476 | 7,980 | 31,574 | 33,422 |
(Gain)/Loss on foreign currency remeasurement of intercompany item | (45) | (4,234) | 244 | (3,206) |
Deferred taxes | 1,925 | 1,483 | 4,422 | 2,706 |
Non-cash interest expense | 3,390 | 5,103 | 12,874 | |
Working capital adjustments: | ||||
Accounts receivable | (11,583) | (6,415) | (4,099) | (3,680) |
Prepaid expenses, other current and non-current assets | 1,694 | (1,395) | (204) | (870) |
Accounts payable, accrued expenses and other payables | (962) | (2,552) | 5,835 | (1,630) |
Contract liabilities | (446) | (164) | 609 | (112) |
Income tax payable | 3,777 | 1,980 | 2,689 | (1,749) |
Other current and non-current liabilities | 780 | 1,157 | 54 | 2,582 |
Net cash flows provided by operating activities | 22,032 | 14,090 | 99,850 | 76,662 |
Cash flow from (used in) investing activities: | ||||
Acquisition of Double8 Games Co., Ltd. | (1,952) | (1,952) | ||
Purchases of property and equipment | (34) | (33) | (217) | (200) |
Acquisition of intangible assets | (6) | |||
Net cash flows from (used in) investing activities | (34) | (1,985) | (2,175) | (200) |
Cash flows from (used in) financing activities: | ||||
Proceeds from capital investment from parent | 5,124 | |||
Proceeds received from short-term borrowings | 68,631 | |||
Proceeds received from long-term borrowings with related parties | 17,158 | |||
Repayments of long-term borrowings with related parties | (42,371) | |||
Repayments of short-term borrowings | (16,756) | (33,897) | (152,704) | |
Net cash flows used in financing activities | (16,756) | (76,268) | (61,791) | |
Net foreign exchange difference on cash and cash equivalents | (750) | (1,255) | (637) | (3,217) |
Net increase (decrease) in cash and cash equivalents | 21,248 | (5,906) | 20,770 | 11,454 |
Cash and cash equivalents at beginning of period | 63,188 | 42,418 | 42,418 | 30,964 |
Cash and cash equivalents at end of period | 84,436 | 36,512 | 63,188 | 42,418 |
Noncash financing activity: | ||||
Conversion of 2.5% Convertible bonds, net of tax | 187,095 | |||
Conversion of 2.5% Non-convertible bonds with warrants, net of tax | 64,374 | |||
Interest | 342 | 5,891 | 9,779 | |
Income taxes | $ 130 | $ 161 | $ 12,546 | $ 10,196 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Parenthetical) | 12 Months Ended |
Dec. 31, 2020 | |
Convertible debt [Member] | |
Debt conversion converted instrument rate | 2.50% |
Non-convertible debt [Member] | |
Debt conversion converted instrument rate | 2.50% |
Description of business
Description of business | 12 Months Ended |
Dec. 31, 2020 | |
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 67.7% of our outstanding shares. The remaining 32.3% of our outstanding shares are held by STIC Special Situation Private Equity Fund (“STIC”). 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 Acquisition of Double8 Games Co., Ltd. (“Double8 Games”) On February 25, 2020, we completed the acquisition of Double8 Games Co., Ltd. (“Double8 Games”) from DoubleU Games in exchange for KRW2.3 billion (US$1.9 million). Double8 Games is based in Seoul, Korea, with the primary business of developing digital gaming content for international markets. The acquisition was considered a business combination among entities under common control and, therefore, the transfer of net assets was recorded at their carrying value with all financial information prior to the acquisition adjusted for comparability. Assets acquired and liabilities assumed primarily consist of working capital items, including a right of use asset and lease obligation. The difference between the cash paid and carrying value of the net assets received was recorded as a capital investment from parent. |
Significant accounting policies
Significant accounting policies | 12 Months Ended |
Dec. 31, 2020 | |
Significant accounting policies | Note 2: Significant accounting policies Basis of preparation and consolidation The accompanying consolidated financial statements are presented in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of DDI and its controlled subsidiaries. All significant intercompany transactions, balances and unrealized gains or losses have been eliminated. The accounting policies were consistently applied to all periods presented, except as indicated under “Recently issued accounting standards — adopted”. Use of estimates The preparation of financial statements in conformity with 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”) 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 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 and accounts receivable. 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 2020 and 2019 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 year ended December 31, 2020 2019 Apple 50.8% 48.1% Facebook 27.3% 31.2% Google 18.9% 17.2% Accounts Receivable Concentration as of December 31, 2020 2019 Apple 54.1% 53.6% Facebook 25.9% 28.0% Google 18.0% 16.8% Fair value measurements Fair value is defined as an exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The three-tiered fair value hierarchy that prioritizes the inputs based on the observability as of the measurement date is as follows: Level 1 – Observable inputs for identical assets or liabilities, such as quoted prices in active markets; Level 2 – Inputs other than quoted prices in active markets that are either directly or indirectly observable; Level 3 – Unobservable inputs in which little or no market data exists, therefore they are developed using estimates and assumptions developed by us, which reflect those that a market participant would use. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the placement of assets and liabilities being measured within the fair value hierarchy. See Note 5: Fair value measurements. Goodwill and indefinite-lived Goodwill consists of the excess of the purchase price over the fair value of identifiable assets acquired and liabilities assumed in a business combination. Our indefinite-lived intangible assets were acquired in a business combination and recorded at fair value. We assess the carrying value of our goodwill and other indefinite-lived assets for potential impairment annually as of October 1, or more frequently if events or changes in circumstances indicate that the carrying value of the asset may not be recoverable. When assessing goodwill for impairment, we may elect to first utilize a qualitative assessment to evaluate if a more detailed quantitative impairment test is necessary. An impairment charge is recorded based on the excess of the reporting unit’s carrying amount over its fair value. In determining fair value of our reporting unit in connection with our annual goodwill impairment test, we perform a blended analysis of the present value of future discounted cash flows and a market valuation approach. The discounted cash flows model indicates the fair value of the reporting unit based on the present value of the cash flows that we expect the reporting unit to generate in the future. The market valuation approach indicates the fair value of the business based on a comparison of the Company to comparable publicly traded firms in similar lines of business. In determining fair value of indefinite-lived intangible assets for purposes of our annual impairment test, we use the relief-from-royalty method. This method assumes that the trade name and trademarks have value to the extent that their owner is relieved of the obligation to pay royalties for the benefits received from them. The amount of impairment of indefinite-lived intangible assets is measured by the amount by which the carrying amount of the asset exceeds the estimated fair value of the asset. We have identified a single reporting unit based on our management structure. There were no impairments of our indefinite-lived intangible assets or goodwill to date. Finite-lived intangible assets Intangible assets acquired separately are measured on initial recognition at cost. The carrying value of intangible assets acquired in a business combination is their fair value at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated amortization and accumulated impairment losses. Finite-lived intangible assets are amortized over their useful economic life and assessed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of these assets is determined by comparing the forecasted undiscounted net cash flows from use and eventual disposition of the asset over its remaining economic life to its carrying value. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are considered to modify the amortization period or method, as appropriate, and are treated as changes in estimates. The amortization expense on intangible assets with finite lives is recognized in the statement of income and comprehensive income in depreciation and amortization. Development costs Development costs for new app development are capitalized and recognized as an intangible asset when the preliminary development stage has been completed, management commits to funding the project, it is probable that the project will be completed, and the software will be used for its intended function. Following initial recognition of the development costs as an asset, the asset is carried at cost less any accumulated amortization and accumulated impairment losses. Amortization of the asset begins when development is complete, and the asset is available for use. It is amortized over the period of expected future benefit. Amortization is recorded in depreciation and amortization. Revenue recognition 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): Years ended December 31, 2020 2019 Mobile $ 257,405 $ 184,755 Web 100,937 88,855 Total revenue $ 358,342 $ 273,610 The following table presents our revenue disaggregated based on the geographical location of our players (in thousands): Years ended December 31, 2020 2019 U.S. (1) $ 309,211 $ 237,712 International 49,131 35,898 Total revenue $ 358,342 $ 273,610 (1) Geographic location is presented as being derived from the U.S. when data is not available Principal-agent 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 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 December 31, 2020 As of December 31, 2019 Contract assets (1) $ 718 $ 541 Contract liabilities $ 2,393 $ 1,804 (1) Contract assets are included within prepaid expenses and other assets in our consolidated balance sheet. Cost of revenue Amounts recorded as cost of revenue relate to direct expenses incurred in order to generate social gaming revenue. Such costs are recorded as incurred, and primarily consist of fees withheld by our platform providers from the player proceeds received by the platform providers on our behalf, hosting fees, and royalties. Depreciation and amortization expense is excluded from cost of revenue and other operating expenses and is separately presented on the consolidated statement of income and comprehensive income. 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 waged-based pension plan, which provides a specified amount of pension benefit based on length of service. The service cost components of the net periodic benefit costs are charged to current operations based on the functional area of the employee. The total benefit obligation of $2.8 million and $1.9 million was included in other non-current The following table summarizes the components of the projected benefit obligation (in thousands): As of December 31, As of December 31, Projected benefit obligation at beginning of year $ 1,882 $ 1,245 Service cost 738 504 Interest cost 30 26 Actuarial (gain)/loss 492 499 Benefits paid (400 ) (159 ) Other (273 ) (190 ) Foreign currency translation adjustment 323 (43 ) Projected benefit obligation at end of year $ 2,792 $ 1,882 Defined contribution plan We sponsor a defined contribution plan for our employees based in Seattle, Washington. We provide a matching contribution of 100% on the first 1% of employee contributions and 50% on the next 5% of employee contributions. Our contribution expense for the years ended December 31, 2020 and 2019 was approximately $467,000 and $394,000 respectively. Deferred offering costs We incurred costs directly attributable to our proposed initial public offering that went effective June 30, 2020 with the Securities and Exchange Commission (SEC) but did not successfully offer securities. The offering costs were previously deferred and recorded as a non-current Deferred offering costs were $1.3 million as of December 31, 2019. Advertising costs The cost of advertising is expensed as incurred and totaled $61.8 million and $28.5 million for the years ended December 31, 2020 and 2019, respectively. Advertising costs primarily consist of marketing and player acquisition and retention costs and are included in sales and marketing expenses. Research and development Research and development costs relate primarily to employee costs associated with in-app internal-use Income taxes Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates in the period in which they reverse. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” standard, no tax benefit is recorded. Statutory withholding tax is recognized in income tax expense as incurred. Segment information Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision maker, our Chief Executive Officer, in making decisions regarding resource allocation and assessing performance. We view our operations and manage our business as one operating segment. Subsequent events We evaluated subsequent events through March 29, 2021, which is the date the financial statements were available to be issued. Recent accounting guidance – adopted Financial instruments — credit losses The FASB issued ASU No. 2016-13, Intangibles-Goodwill and Other The FASB issues ASU No. 2017-04, Fair value measurements In August 2018, the FASB issued ASU No. 2018-13, Income taxes In December 2019, the FASB issued ASU 2019-12, ASU 2017-11 The Financial Accounting Standards Board (“FASB“) issued Accounting Standards Update (“ASU“) No. 2017-11, In May 2017, we issued an aggregate principal amount of KRW210 billion (US $193 million) of 2.5% Convertible Bonds due 2024 and aggregate principal amount of KRW90 billion (US$83 million) of 2.5% Non-convertible The warrants were not considered liabilities within the scope of ASC 480. In addition, they also met both the requirements of (1) being considered indexed to the Company’s own stock and (2) the qualifications for equity classification. Therefore, the warrants were recorded within stockholders’ equity. There are no provisions pursuant to which the Company could be obligated to pay cash or other assets to settle the warrants; settlement is in shares only, and all settlement provisions contemplate payment of an amount based on the difference between the fair value and a fixed exercise price for a fixed number of shares; subject to down-round and standard anti-dilution adjustments. Due to the adoption of ASU 2017-11, Instead, the down-round protection feature of the warrants would be recognized as a dividend and as a reduction of income available to common shareholders, which would result in a reduction to our basic net income per share when triggered. As we apply the treasury stock method for calculated diluted earnings per share, this amount would be added back to income available to common stockholders. The 2.5% Convertible Bonds (and the 2.5% Non-convertible The Company evaluated the terms of the 2.5% Convertible Notes in accordance with ASC Topic No. 815 – 40, “Derivatives and Hedging - Contracts in Entity’s Own Stock” and determined that the underlying common stock is indexed to our common stock. We determined that the embedded conversion and other features did not meet the definition of a liability and therefore did not bifurcate the conversion and other features and account for it as a separate derivative liability. In addition, the 2.5% Convertible Bonds contain a contingent beneficial conversion feature that may be triggered if the conversion price is reduced upon a down-round in the future, subject to accounting under ASC 470-20-25-6. On May 15, 2020, DUG exercised its call option right and simultaneously redeemed the 2.5% Non-convertible |
Goodwill and intangible assets
Goodwill and intangible assets | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Goodwill and intangible assets | Note 3: Goodwill and intangible assets There were no changes to the carrying amount of goodwill in the three months ended March 31, 2021. Changes in the carrying amount of intangible assets were as follows: March 31, 2021 December 31, 2020 Useful Lives (in years) Gross Accum. Net Gross Accum. Net Trademarks indefinite $ 50,000 $ — $ 50,000 $ 50,000 $ — $ 50,000 Customer relationships 4 75,000 (71,875 ) 3,125 75,000 (67,187 ) 7,813 Purchased technology 5 45,423 (35,314 ) 10,109 45,423 (33,149 ) 12,274 Development costs 3 9,486 (8,884 ) 602 9,486 (8,434 ) 1,052 Software 4 2,406 (2,308 ) 98 2,406 (2,181 ) 225 Total $ 182,315 $ (118,381 ) $ 63,934 $ 182,315 $ (110,951 ) $ 71,364 The following reflects amortization expense related to intangible assets included with depreciation and amortization: Three months ended 2021 2020 Amortization expense $ 7.4 million $ 7.9 million | Note 3: Goodwill and intangible assets The majority of our intangible assets consist of assets acquired through the 2017 acquisition of DDI-US. December 31, 2020 December 31, 2019 Useful Gross Amount Accum. Amort Net Amount Gross Amount Accum. Amort Net Amount Trademarks indefinite $ 50,000 $ — $ 50,000 $ 50,000 $ — $ 50,000 Customer relationships 4 years 75,000 (67,187 ) 7,813 75,000 (48,437 ) 26,563 Purchased technology 5 years 45,423 (33,149 ) 12,274 45,423 (24,487 ) 20,936 Development costs 3 years 9,486 (8,434 ) 1,052 9,486 (5,096 ) 4,390 Software 4 years 2,406 (2,181 ) 225 2,400 (1,592 ) 808 Total $ 182,315 $ (110,951 ) $ 71,364 $ 182,309 $ (79,612 ) $ 102,697 On January 1, 2019, we determined, based on a strategic decision to sunset certain games within our game portfolio, to change the useful life of our development costs from 5 years to 3 years. This change in estimate resulted in incremental amortization expense of $2.8 million in 2019. Amortization expense for the years ended December 31, 2020 and 2019 totaled $31.3 million and $33.1 million, respectively. Estimated amortization expense for the years ending December 31, 2021 through 2025 is as follows (in thousands): Year Expense 2021 $ 17,735 2022 3,629 2023 0 2024 0 2025 0 |
Debt
Debt | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Debt | Note 4: Debt The components of debt as of March 31, 2021 and December 31, 2020 are as follows (in thousands): As of March 31, As of December 31, 4.60% Senior Notes due to related party due 2024 44,111 45,956 Total debt $ 44,111 $ 45,956 Less: Short-term debt — — Total Long-term debt $ 44,111 $ 45,956 Joint Investment Agreement In 2017, in connection with the acquisition of DDI-US, Non-convertible Non-convertible Non-convertible These inter-related agreements afforded DUG, STIC, and the Company the following significant obligations, rights and privileges: • DUG has committed to take efforts to file an initial registration statement for an initial public offering (“IPO”) for DDI, provided that the expected IPO price generates at least an 8% internal rate of return (“IRR”) to STIC. If such IRR is not expected, DUG may only file a registration statement if requested by STIC. If STIC requests to sell its shares in the IPO, DUG will have to include at least 50% of such shares in the offering. • DUG has a call option to purchase the equity-linked securities issued to STIC under certain time and price conditions, but which must be exercised by May 26, 2020, or it expires. On May 15, 2020, DUG exercised the right to call. See discussion under debt arrangements below. • STIC has tag-along DDI-US DDI-US. • In all scenarios under which a buy out of the Bonds, warrants or shares could occur, DUG, and not DDI, has the associated rights and obligations, and the Joint Investment Agreement does not provide for the relevant instruments to be extinguished. Instead, they can be assigned to DUG in exchange for the appropriate consideration. DDI is not obligated, nor has the right to make any settlements in connection with these buyout scenarios. • The Joint Investment Agreement further provides that none of DDI, DUD or DDI-US The Joint Investment Agreement may be terminated by each party if (i) DUG has repaid or sold all Bonds to a third party; (ii) STIC no longer holds any shares resulting from the exercise of the warrants or conversion of the 2.5% Convertible Bonds; or (iii) DDI has completed the IPO. Debt arrangements 4.60% Senior Notes due to related party due 2024 The 4.60% Senior Notes due to related party accrue 4.60% interest quarterly on the outstanding principal amount until maturity. Interest and remaining principal are due in full at maturity (May 27, 2024). Bonds 2.5% Convertible Bonds At various dates in May and June 2020, STIC, as holder of the 2.5% Convertible Bonds, exercised its right to convert all outstanding bonds into 715,258 common shares. In connection with these transactions, we paid STIC the accrued coupon interest of $0.9 million and the unpaid yield-to-maturity The conversion of the 2.5% Convertible Bonds was in accordance with the original terms of the instruments and were not subject to an inducement offer to convert as the terms of the conversion were not modified. As a result, the carrying value of the 2.5% Convertible Bonds, plus the forfeited yield-to-maturity paid-in-capital 2.5% Non-convertible On May 15, 2020, DUG exercised its call option right and simultaneously redeemed the 2.5% Non-convertible yield-to-maturity Non-convertible yield-to-maturity paid-in-capital | Note 4: Debt The components of debt at December 31, 2020 and 2019 are as follows (in thousands): As of December 31, 2020 2019 3.50% Senior Note due 2020 $ — $ 34,548 4.60% Senior Notes to related party due 2024 45,956 86,371 2.5% Convertible bonds due 2024; early redemption 2022 including accrued interest — 193,643 2.5% Non-Convertible — 62,490 Total debt $ 45,956 $ 377,052 Less: Short-term debt — (34,548 ) Total Long-term debt $ 45,956 $ 342,504 Joint Investment Agreement In 2017, in connection with the acquisition of DDI-US, Non- Non-convertible Non-convertible These inter-related agreements afforded DUG, STIC, and the Company the following significant obligations, rights and privileges: • DUG has committed to take efforts to file an initial registration statement for an initial public offering (“IPO”) for DDI, provided that the expected IPO price generates at least an 8% internal rate of return (“IRR”) to STIC. If such IRR is not expected, DUG may only file a registration statement if requested by STIC. If STIC requests to sell its shares in the IPO, DUG will have to include at least 50% of such shares in the offering. • DUG has a call option to purchase the equity-linked securities issued to STIC under certain time and price conditions, but which must be exercised by May 26, 2020, or it expires. On May 15, 2020, DUG exercised the right to call. • STIC has tag-along DDI-US DDI-US. • In all scenarios under which a buy out of the Bonds, warrants or shares could occur, DUG, and not DDI, has the associated rights and obligations, and the Joint Investment Agreement does not provide for the relevant instruments to be extinguished. Instead, they can be assigned to DUG in exchange for the appropriate consideration. DDI is not obligated, nor has the right to make any settlements in connection with these buyout scenarios. • The Joint Investment Agreement further provides that none of DDI, DUD or DDI-US The Joint Investment Agreement may be terminated by each party if (i) DUG has repaid or sold all Bonds to a third party; (ii) STIC no longer holds any shares resulting from the exercise of the warrants or conversion of the 2.5% Convertible Bonds; or (iii) DDI has completed the IPO. Debt arrangements Short-term borrowings and long-term borrowings with related parties 3.50% Senior Note due 2020 In May 2019, we refinanced our 4.3% Senior Note with a new credit facility (the 3.5% Senior Note) with two new lenders, with an original aggregate principal amount of KRW80 billion (US$74 million), at a lower interest rate of 3.5%. The proceeds from the 3.5% Senior Note, along with KRW20 billion (USD18 million) in additional borrowing from our 4.6% Senior Notes with related party were used to repay amounts outstanding under the 4.3% Senior Note. The 3.50% Senior Note requires quarterly interest payments at 3.50% of unpaid principal beginning in August 2019. Quarterly principal repayments of KRW20 billion (US$18 million) are required. The 3.5% Senior Note was paid in full in May 2020. 4.60% Senior Notes due to related party due 2024 The 4.60% Senior Notes due to related party, which collectively total KRW100 billion (US$92 million) 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 (US$18 million) and interest of KRW1.2 billion (US$1.0 million) was paid in June 2020 and principal of KRW30 billion (US$28 million) and interest of KRW3.1 billion (US$2.6 million) was paid in September 2020. Bonds 2.5% Convertible Bonds Interest on the 2.5% Convertible Bonds is payable in quarterly cash coupon payments of 0.625% of the outstanding principal. The 2.5% Convertible Bonds have a 5.0% yield-to-maturity, The 2.5% Convertible Bonds are convertible into 715,258 common shares at an initial conversion price of KRW293,600, subject to certain standard adjustments for anti-dilution protection (“conversion price adjustment”). The 2.5% Convertible Bonds also contain a provision commonly referred to as “down-round” protection, whereby, in the event of issuance of new debt with the conversion price below the 2.5% Convertible Bonds’ conversion price, or in the event of the sale of new shares at the price below the conversion price, the conversion price will be adjusted based on the magnitude of the dilution to existing shareholders. We believe the likelihood of triggering a conversion price adjustment is remote due to the control exercised by DUG and STIC and the expected operating performance of the Company. Through the conversion dates, no event triggering a conversion price adjustment or the down-round protection had occurred. At various dates in May and June 2020, STIC, as holder of the 2.5% Convertible Bonds, exercised its right to convert all outstanding bonds into 715,258 common shares. In connection with these transactions, we paid STIC the accrued coupon interest of $0.9 million and the unpaid yield-to-maturity The conversion of the 2.5% Convertible Bonds was in accordance with the original terms of the instruments and were not subject to an inducement offer to convert as the terms of the conversion were not modified. As a result, the carrying value of the 2.5% Convertible Bonds, plus the forfeited yield-to-maturity paid-in-capital 2.5% Non-convertible As discussed further above, in May 2017, we issued aggregate principal amount KRW90 billion (US$83 million) 2.5% Non-convertible Interest on the 2.5% Non-convertible Non-convertible yield-to-maturity, Non-convertible Non-convertible The warrants may be exercised with cash, by surrendering the 2.5% Non-convertible Non-convertible 30-day On May 15, 2020, DUG exercised its call option right and simultaneously redeemed the 2.5% Non-convertible yield-to-maturity Non-convertible yield-to-maturity paid-in-capital As of December 31, 2020, maturities of short and long-term debt for the years ending December 31 are as follows (in thousands): Total 2020 2021 2022 2023 2024 4.60% Senior Notes to related parties due 2024 $ 45,956 — — — — $ 45,956 Total $ 45,956 — — — — $ 45,956 |
Fair value measurement
Fair value measurement | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Fair value measurement | Note 5: Fair value measurement The carrying values of our accounts receivable, prepaid expenses and other current assets, accounts payable, accrued liabilities, and short-term senior notes approximate their recorded values due to the short-term nature of these instruments. Our cash equivalents (Level 1 estimate) consist of money market funds and Korean market government bonds totaling $82.1 million and $61.1 million, as of March 31, 2021 and December 31, 2020, respectively. We rely on credit market data to track interest rates for other entities with similar risk profiles. As of March 31, 2021 and December 31, 2020, we believe the fair value of our senior notes (Level 3 estimate) approximates carrying value due to the nature of the instruments and the lack of meaningful change to our credit profile. | Note 5: Fair value measurement 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 estimate) consist of money market funds and Korean market government bonds totaling $61.1 million and $25.7 million, as of December 31, 2020 and December 31, 2019, respectively. 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 point 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 December 31, 2020, and 2019, we believe the fair value of our senior notes (a Level 3 estimate) approximates carrying value due to the nature of the instruments and the lack of meaningful change to our credit profile. As of December 31, 2019, we estimate the fair value of our 2.5% Convertible Bonds (a Level 3 estimate) to be $325.0 million and we estimate the fair value of our 2.5% Non-convertible Non-convertible Non-convertible |
Income taxes
Income taxes | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Income taxes | Note 6: Income taxes We are subject to federal and state income taxes in Korea and the United States. 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 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, FDII deduction, research and development credits, and a valuation allowance on Korean deferred tax assets. Our effective tax rate could fluctuate significantly from quarter to quarter based on variations in the estimated and actual level of pre-tax non-deductible The effective tax rate for the three months ended March 31, 2020, was 22.0%. The effective tax rate of 25.63% for the three months ended March 31, 2021, is higher than the Korean statutory rate of 20%, primarily due to foreign rate differential, withholding taxes, a valuation allowance on the Korean attributes, offset by the benefit of a FDII deduction and research tax credits. | Note 6: Income taxes Income (loss) before income tax consisted of the following (in thousands): Years Ended December 31, 2020 2019 US $ 89,416 $ 62,706 Korea (14,199 ) (12,839 ) Total income before income taxes $ 75,217 $ 49,867 The following table presents the detail of income tax expense for the periods presented (in thousands): Years Ended December 31, 2020 2019 Current: US $ 15,244 $ 8,469 Korea 1,928 2,367 Total Current Taxes $ 17,172 $ 10,836 Deferred: US $ 5,105 $ 5,278 Korea (683 ) (2,572 ) Total Deferred Taxes $ 4,422 $ 2,706 Total Income Tax Expense $ 21,594 $ 13,542 The following table presents a reconciliation of the statutory rate and our effective tax rate for the periods presented: Years Ended December 31, 2020 2019 Statutory Tax Rate 20.0% 20.0% Foreign Jurisdiction Rate Differential 3.8% 3.4% Non-deductible 1.5% — Withholding Taxes 2.3% 4.6% Tax Credits (3.5)% (7.3)% Valuation Allowance 5.0% 7.6% Other (0.5)% (1.1)% Total Tax Rate 28.6% 27.2% Deferred federal, state, and foreign income taxes reflect the net tax impact of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and such amounts for tax purposes. The following table presents the significant components of our deferred tax assets and liabilities as of the dates presented (in thousands): As of December 31, 2020 2019 Deferred income tax assets: Net Operating Loss Carryforward $ 8,206 $ 6,173 Tax Credit Carryforward 9,529 6,286 Accruals and Reserves 1,762 976 Intangibles 14,158 9,476 Lease liability 2,565 2,736 Deferred tax assets $ 36,220 $ 25,647 Less: valuation allowance (17,936 ) (12,921 ) Net deferred tax assets $ 18,284 $ 12,726 Deferred tax liabilities Goodwill $ (35,096 ) $ (25,015 ) Accrued Interest — (8,531 ) Right-of-use-asset (2,424 ) (2,561 ) Other (359 ) (627 ) Deferred tax liabilities $ (37,879 ) $ (36,734 ) Net deferred tax assets /(liabilities) $ (19,595 ) $ (24,008 ) Realization of deferred tax assets is dependent upon the generation of future taxable income, if any, the timing, and amount of which are uncertain. We have provided a valuation allowance against certain deferred tax assets of Korea as of December 31, 2020, and 2019, because, based on the weight of available evidence, it is more likely than not (a likelihood of more than 50%) that these deferred tax assets will not be realized. As of December 31, 2020, we determined tax attributes expected to be realized prior to their expiration and recognized a deferred tax asset of $560 thousand. As of December 31, 2020, and 2019, we have Korean tax loss carryforwards of approximately $34.4 million and $28.1 million, respectively, which are available to reduce future taxable income. These losses begin to expire in 2026. Additionally, we have Korean tax credit carryforwards of $8.8 million and $6.3 million as of December 31, 2020 and 2019, respectively, which are available to reduce future foreign tax liabilities. The foreign tax credit carryforwards begin to expire in 2022. We have not recorded a liability for income taxes or withholding taxes on undistributed earnings of subsidiaries as of December 31, 2020 and 2019 as we intend to reinvest such earnings outside of Korea for the foreseeable future. Given the Company’s current and anticipated losses in Korea, the method of realizing the cumulative temporary differences related to foreign earnings is difficult to estimate. Therefore, the Company concluded it is not practical to estimate the related deferred tax liability. We are currently not under audit in any tax jurisdiction. We do not have any uncertain tax positions and have not established reserves for tax positions based on estimates of whether, and the extent to which, additional taxes will be due. |
Shareholders' equity
Shareholders' equity | 12 Months Ended |
Dec. 31, 2020 | |
Shareholders' equity | Note 7: Shareholders’ equity Common stock and Convertible Securities We have 200,000,000 total authorized shares at December 31, 2020 and December 31, 2019. The par value per share is KRW10,000. Holders of outstanding shares of common stock are entitled to one vote for each share on all matters submitted to a vote of the holders of common stock. Holders of common stock are entitled to receive dividends that are declared by our board of directors out of legally available funds. In the event of a liquidation, dissolution or winding-up, |
Net Income per share
Net Income per share | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Net Income per share | Note 7: 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 The following table presents the calculation of basic and diluted net income per share (in thousands except share and per share amounts): Three months ended March 31, 2021 2020 Numerator: Net income applicable to common shareholders—basic $ 19,416 $ 12,860 Dilutive effect of assumed conversion of convertible debt — 1,814 Net income applicable to common shareholders—diluted $ 19,416 $ 14,674 Denominator: Weighted average shares outstanding—basic 2,214,522 1,192,725 Dilutive effect of assumed conversion of convertible debt — 715,258 Dilutive effect of assumed conversion of warrants — 128,868 Weighted average shares outstanding—diluted 2,214,522 2,036,851 Basic net income per share $ 8.77 $ 10.78 Diluted net income per share $ 8.77 $ 7.20 | 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 Dilutive common share equivalents are comprised of warrants and shares issuable under our convertible debt arrangement described in Note4: Debt. The following table presents the calculation of basic and diluted net income per share (in thousands except share and per share amounts): Years ended December 31, 2020 2019 Numerator Net income applicable to common stockholders — basic $ 53,623 $ 36,325 Dilutive effect of assumed conversion of convertible debt 2,687 7,311 Net income applicable to common stockholders — diluted $ 56,310 $ 43,636 Denominator Weighted average common shares outstanding — basic 1,807,410 1,192,725 Dilutive effect of assumed conversion of convertible debt 295,028 715,258 Dilutive effect of assumed conversion of warrants 46,676 87,148 Weighted average common shares outstanding — diluted 2,149,114 1,995,131 Net Income per share applicable to common stockholders — basic $ 29.67 $ 30.46 Net Income per share applicable to common stockholders — diluted $ 26.20 $ 21.87 |
Accumulated other comprehensive
Accumulated other comprehensive income | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Accumulated other comprehensive income | Note 9: Accumulated other comprehensive income Changes in accumulated other comprehensive income (“AOCI”) by component for the three months ended March 31, 2021 were as follows (in thousands): Three months ended March 31, 2020 Currency Defined Total Balance as of January 1, 2020 $ 10,131 $ (698 ) $ 9,433 Foreign currency translation gain/(loss) 9,565 9,565 Actuarial gain/(loss), net of tax expense of $8 (26 ) (26 ) Balance as of March 31, 2020 $ 19,696 $ (724 ) $ 18,972 Three months ended March 31, 2021 Currency Defined Total Balance as of January 1, 2021 $ 23,807 $ (992 ) $ 22,815 Foreign currency translation gain/(loss) 1,329 1,329 Actuarial gain/(loss), net of tax expense of $14 (55 ) (55 ) Balance as of March 31, 2021 $ 25,136 $ (1,047 ) $ 24,089 We do not tax effect foreign currency translation gain/(loss) because we have determined such gain (loss) is permanently reinvested. | Note 9: Accumulated other comprehensive income Changes in accumulated other comprehensive income (AOCI) by component for the years ended December 31, 2020 and 2019 were as follows (in thousands): Currency Defined Total Balance at January 1, 2019 $ 389 $ (313 ) $ 76 Foreign currency translation gain/(loss) 9,742 — 9,742 Actuarial gain/(loss), net of tax — (385 ) (385 ) Balance as of December 31, 2019 $ 10,131 $ (698 ) $ 9,433 Foreign currency translation gain/(loss) 13,676 — 13,676 Actuarial gain/(loss), net of tax — (294 ) (294 ) Balance at December 31, 2020 $ 23,807 $ (992 ) $ 22,815 For years ended December 31, 2020 and 2019, we did 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. |
Leases
Leases | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Leases | Note 8: Leases We are lessee for corporate office space in Seattle, Washington and Seoul, Korea. The lessor for our Seoul, Korea leases is our parent, DoubleU Games (see Note 11). Our leases have remaining terms of three to five years. We do not have any finance leases. Our total variable and short-term lease payments are immaterial for all periods presented. The Seattle, Washington lease originated in July 2012 and consists of 49,375 square feet. The lease will expire in October 2024. In February 2019, we executed new subleases with our parent, DUG, for 21,218 square feet of office space in Gangnam-gu, Supplemental balance sheet and cash flow information related to operating leases is as follows (in thousands): As of March 31, As of December 31, Operating lease right-of-use $ 9,974 $ 10,864 Accrued rent 819 877 Total operating lease right-of-use $ 9,155 $ 9,987 Short-term operating lease liabilities $ 3,014 $ 3,033 Long-term operating lease liabilities $ 6,960 $ 7,831 Total operating lease liabilities $ 9,974 $ 10,864 Supplemental cash flow information related to leases was as follows (in thousands): Three months ended Year ended December 31, 2020 Cash paid for amounts included in the measurement of operating lease liabilities $ 871 $ 3,192 | Note 10: Leases On January 1, 2019, we adopted ASC 842 using the modified retrospective method. Our operating leases primarily consist of real estate leases for office space and do not have any non-lease Upon adoption we recognized a right-of-use right-of-use The Seattle, Washington lease originated in July 2012 and consists of 49,375 square feet. In September 2018, the only option to extend, which is effective October 1, 2019, was exercised to extend the term for 61 months. The extended lease will expire in October 2024. The Gangnam-gu, Seoul, Korea office space is subleased from our parent, DUG and consists of 31,636 square feet. The subleases originated in February 2019 and were amended in October 2020 to reflect an overall increase to DUG (sublessor). The subleases will expire in September 2023. A right-of-use right-of-use Supplemental balance sheet and cash flow information related to operating leases is as follows: December 31, December 31, Operating lease right-of-use $ 10,864 $ 13,219 Accrued rent 877 835 Total operating lease right-of-use $ 9,987 $ 12,384 Short-term operating lease liabilities $ 3,033 $ 2,795 Long-term operating lease liabilities 7,831 10,424 Total operating lease liabilities $ 10,864 $ 13,219 Cash paid for amounts included in the measurement of operating lease liabilities $3.2 million $2.5 million Maturities of lease liabilities are as follows (in thousands): As of December 31, 2020 Seattle Seoul 2021 $ 1,938 $ 1,443 2022 1,987 1,471 2023 2,037 1,267 2024 1,732 — 2025 — — Thereafter — — Less: Imputed Interest (683 ) (328 ) Total $ 7,011 $ 3,853 Operating lease costs were $3.2 million and $3.1 million for the years ended December 31, 2020 and December 31, 2019, respectively. |
Commitments and contingencies
Commitments and contingencies | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Commitments and contingencies | Note 10: Commitments and contingencies Legal contingencies On April 12, 2018, a class-action lawsuit was filed against DDI-US In August 2018, we filed a Motion to Compel Arbitration, which was denied and immediately appealed in December 2018. We were granted a Motion to Stay pending appeal in February 2019. In October 2019, a court date was issued and subsequently abated as the Ninth Circuit Appeals court hears the oral arguments and a resolution of appeal is determined in a similar case with one of our competitors. On January 29, 2020, the Ninth Circuit affirmed the District Court’s denial of arbitration, thereby denying our appeal to compel arbitration. The case is now in District Court. On June 17, 2020, we filed a motion in the United States District Court for the Western District of Washington, which, if granted, would certify certain questions of state law to the Washington State Supreme Court for interpretation in accordance with applicable state law. On August 11, 2020, the District Court denied DDI-US’s DDI-US DDI-US DDI-US co-defendant, The case is subject to significant uncertainties and, therefore, determining the likelihood of a loss and/or the measurement of any loss or range of loss cannot be reasonably estimated. We evaluated (1) the facts and circumstances known to us, including information regarding settlements and other relevant events and developments, (2) the advice and analyses of counsel and (3) the assumptions and judgement of management, all of which involve a series of complex judgments about future events. As a result, no amount has been recorded in connection with this lawsuit. On January 8, 2021, a suit alleging patent infringement of certain patents for gaming applications used by DDI was filed. By agreement, the parties will stipulate to an extension to respond. DoubleDown filed a motion to dismiss plaintiffs’ complaint on April 29, 2021, arguing that the asserted patents are not patent-eligible because they are drawn to an abstract idea. Plaintiff opposed the motion, and DoubleDown will file a reply on June 4, 2021. DoubleDown also filed a motion to stay discovery pending resolution of the motion to dismiss. The parties agreed to an interim stay of discovery pending resolution of the motion to stay. On May 28, 2021, Plaintiff made a settlement demand. DoubleDown has not responded. On May 14, 2021, Hanover Insurance Co. filed a declaratory judgment action alleging that its insurance policy does not cover the claims made by NEXRF Corp. in NEXRF Corp. v. DoubleDown Interactive, LLC, DoubleU Games Co., Ltd., and DoubleDown Interactive, Ltd. (W.D. Wash. 2:20-cv-01875). The future outcome of these matters could be material to our operating results and cash flows in a future period. Legal costs associated with our legal proceedings are expensed as incurred. 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. Pursuant to the DoubleU Games License Agreement, DoubleU Games grants us an exclusive license to develop and distribute certain 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 to DoubleU Games in connection with these rights, with certain customary terms and conditions. The agreement remains in effect until either DUG no longer holds an interest, directly or indirectly, in DDI, or DDI no longer holds an interest, directly or indirectly, in 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, 2020 and 2021 totaled $3.0 million and $3.0 million, respectively and are recognized as a component of cost of revenue. | Note 11: Commitments and contingencies Legal contingencies On April 12, 2018, a class-action lawsuit was filed against DDI-US In August 2018, we filed a Motion to Compel Arbitration, which was denied and immediately appealed in December 2018. We were granted a Motion to Stay pending appeal in February 2019. In October 2019, a court date was issued and subsequently abated as the Ninth Circuit Appeals court hears the oral arguments and a resolution of appeal is determined in a similar case with one of our competitors. On January 29, 2020, the Ninth Circuit affirmed the District Court’s denial of arbitration, thereby denying our appeal to compel arbitration. The case is now in District Court. On June 17, 2020, we filed a motion in the United States District Court for the Western District of Washington, which, if granted, would certify certain questions of state law to the Washington State Supreme Court for interpretation in accordance with applicable state law. On August 11, 2020, the District Court denied DDI-US’s DDI-US DDI-US DDI-US The case is subject to significant uncertainties and, therefore, determining the likelihood of a loss and/or the measurement of any loss or range of loss cannot be reasonably estimated. We evaluated (1) the facts and circumstances known to us, including information regarding settlements and other relevant events and developments, (2) the advice and analyses of counsel and (3) the assumptions and judgement of management, all of which involve a series of complex judgments about future events. As a result, no amount has been recorded in connection with this lawsuit. The future outcome of this matter could be material to our operating results and cash flows in a future period. Legal costs associated with our legal proceedings are expensed as incurred. 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. Pursuant to the DoubleU Games License Agreement, DoubleU Games grants us an exclusive license to develop and distribute certain 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 to DoubleU Games in connection with these rights, with certain customary terms and conditions. The agreement remains in effect until either DUG no longer holds an interest, directly or indirectly, in DDI, or DDI no longer holds an interest, directly or indirectly, in DDI-US. International Gaming Technologies (“IGT”) In 2017, we entered into a Game Development, Distribution, and Services Agreement with IGT. Under the terms of the agreement, IGT will deliver game assets so that the 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 paid IGT an initial royalty rate of 10% of revenue for their proprietary assets and 15% of revenue for third-party game asset types. Effective January 1, 2019, we amended the agreement to revise the royalty rate for proprietary game asset types to 7.5% of revenue. 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 years ended December 31, 2020 and 2019 totaled $13.5 million and $11.5 million, respectively, and are recognized as a component of cost of revenue. |
Related party transactions
Related party transactions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Related party transactions | Note 11: Related party transactions Our related party transactions comprise of expenses for use of intellectual property, borrowings, and facilities as 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 parent, DUG (in thousands): Three months ended Financial statement line item 2021 2020 Royalty expense $ 1,134 $ 475 Cost of revenue Interest expense 509 961 Interest expense Rent expense 357 371 General and administrative expense Other expense 35 4 General and administrative expense Amounts due to our parent, DUG, are as follows (in thousands): At March 31, At December 31, Financial statement line item 2021 2020 4.6% Senior Note due related party $ 44,111 $ 45,956 Long-term borrowings with related party Royalties and other 3,590 3,631 Accounts payable and accrued expenses Short-term lease liability 1,347 1,399 Short-term operating lease liabilities Accrued interest on related party note 5,221 4,918 Other non-current Long-term lease liability 2,004 2,454 Long-term operating lease liabilities | 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 parent, DoubleU Games (in thousands): Years ended Statement of Income and Comprehensive Income Line Item 2020 2019 Royalty expense (see Note 11) $ 3,015 $ 4,597 Cost of revenue Interest expense (see Note 4) 3,106 3,778 Interest expense Rent expense (see Note 10) 1,461 1,378 General and administrative expense Other expense 155 131 General and administrative expense Amounts due to our parent, DoubleU Games, are as follows (in thousands): At December 31, Statement of Consolidated Balance Sheet Line Item 2020 2019 4.6% Senior Notes with related party $ 45,956 $ 86,371 Long-term borrowing with related party Royalties and other expenses 3,631 2,691 Accounts payable and accrued expenses Short-term lease liability 1,399 1,288 Short-term operating lease liabilities Accrued interest on 4.6% Senior Note with related party 4,918 5,169 Other non-current Long-term lease liability 2,454 3,413 Long-term lease liabilities |
Basis of presentation and summa
Basis of presentation and summary of significant accounting policies | 3 Months Ended |
Mar. 31, 2021 | |
Basis of presentation and summary of significant accounting policies | Note 1: Basis of presentation and summary of significant accounting policies Description of business 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 67.7% of our outstanding shares. The remaining 32.3% of our outstanding shares are held by STIC Special Situation Private Equity Fund (“STIC”). 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 Acquisition of Double8 Games Co.,Ltd. (“Double8 Games”) On February 25, 2020, we completed the acquisition of Double8 Games Co., Ltd. (“Double8 Games”) from DoubleU Games in exchange for KRW 2.3 billion (US$1.9 million). Double8 Games is based in Seoul, Korea, with the primary business of developing digital gaming content for international markets. The acquisition was considered a business combination among entities under common control and, therefore, the transfer of net assets was recorded at their carrying value with all financial information prior to the acquisition adjusted for comparability. Assets acquired and liabilities assumed primarily consist of working capital items, including a right of use asset and lease obligation. The difference between the cash paid and carrying value of the net assets received was recorded as a capital investment from parent. Basis of presentation Our unaudited condensed consolidated financial statements include all adjustments of a normal, recurring nature necessary for the fair presentation 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 years ended December 31, 2020, 2019 and 2018. 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 accounting principles generally accepted in the United States of America (“GAAP”) requires our management to make estimates and assumptions that affect financial statements and accompanying notes. 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 and outcomes may differ from management’s estimates and assumptions due to risks and uncertainties, including uncertainty in the current economic environment due to the recent outbreak of a novel strain of the coronavirus (“COVID-19”). Functional currency and translation of financial statements Our functional currency is the Korean Won (“KRW”), and the U.S. Dollar (“dollar,” “USD,” “US$,” or “$”), is the functional currency of our United States subsidiaries. The accompanying condensed consolidated financial statements are presented in USD. The condensed consolidated balance sheet has been translated at the exchange rates prevailing at each balance sheet date. The condensed consolidated statements of income and 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 Financial instruments and concentration of credit risk Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. Accounts receivable are recorded and carried at the net invoiced amount, which is net of platform payment processing fees, unsecured, and represent amounts between 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 for the three months ended March 31, 2021 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 revenue and accounts receivable generated via our platform providers in excess of 10% of our total revenue and total accounts receivable: Three months ended March 31, 2021 2020 Apple 51.3% 50.0% Facebook 26.8% 29.1% Google 19.0% 17.9% Accounts receivable concentration As of March 31, As of December, 31 Apple 67.2% 54.1% Facebook 18.0% 25.9% Google 13.6% 18.0% |
Revenue from contracts with cus
Revenue from contracts with customers | 3 Months Ended |
Mar. 31, 2021 | |
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. Disaggregation of revenue We believe disaggregation of our revenue based on platform and geographical location is appropriate as these are 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 revenue disaggregated based on mobile and web platforms (in thousands): Three months ended March 31, 2021 2020 Mobile $ 70,004 $ 53,159 Web 26,663 22,902 Total $ 96,667 $ 76,061 The following table represents our revenue disaggregated based on the geographical location of our players (in thousands): Three months ended March 31, 2021 2020 U.S. (1) $ 83,661 $ 71,059 International 13,006 5,002 Total $ 96,667 $ 76,061 (1) Geographic location is presented as being derived from the U.S. when data is not available. 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, Contract assets (1) $ 584 $ 718 Contract liabilities 1,948 2,393 (1) Contract assets are included within prepaid expenses and other current assets in our condensed consolidated balance sheets. |
Defined benefit pension plan
Defined benefit pension plan | 3 Months Ended |
Mar. 31, 2021 | |
Defined benefit pension plan | Note 12: Defined benefit pension plan We operate a defined benefit pension plan under the employment regulations in Korea. The plan services the employees located in Seoul and is a final waged-based pension plan, which provides a specified amount of pension benefit based on length of service. The total benefit obligation of $2.9 million and $2.8 million was included in other non-current |
Significant accounting polici_2
Significant accounting policies (Policies) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Basis of preparation and consolidation | Basis of preparation and consolidation The accompanying consolidated financial statements are presented in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of DDI and its controlled subsidiaries. All significant intercompany transactions, balances and unrealized gains or losses have been eliminated. The accounting policies were consistently applied to all periods presented, except as indicated under “Recently issued accounting standards — adopted”. | |
Use of estimates | Use of estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires our management to make estimates and assumptions that affect financial statements and accompanying notes. 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 and outcomes may differ from management’s estimates and assumptions due to risks and uncertainties, including uncertainty in the current economic environment due to the recent outbreak of a novel strain of the coronavirus (“COVID-19”). | Use of estimates The preparation of financial statements in conformity with 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”), and the U.S. Dollar (“dollar,” “USD,” “US$,” or “$”), is the functional currency of our United States subsidiaries. The accompanying condensed consolidated financial statements are presented in USD. The condensed consolidated balance sheet has been translated at the exchange rates prevailing at each balance sheet date. The condensed consolidated statements of income and comprehensive income and statement of cash flows have been translated using the weighted-average exchange rates prevailing during the periods of each statement. The equity capital is denominated in the functional currency, KRW, and is translated at historical exchange rates. All translation adjustments resulting from translating into the reporting currency are accumulated as a separate component of accumulated other comprehensive income in shareholders’ equity. Gains or losses resulting from foreign currency transactions are included in other income (expense). Intercompany monetary items denominated in foreign currencies are translated into the functional currency at the exchange rate at the reporting date with the gain or loss arising on translation recorded to other income (expense). Intercompany non-monetary | Functional currency and translation of financial statements Our functional currency is the Korean Won (“KRW”) and the U.S. Dollar (“dollar,” “USD,” “US$,” 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 |
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 that potentially subject us to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. Accounts receivable are recorded and carried at the net invoiced amount, which is net of platform payment processing fees, unsecured, and represent amounts between 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 for the three months ended March 31, 2021 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 revenue and accounts receivable generated via our platform providers in excess of 10% of our total revenue and total accounts receivable: Three months ended March 31, 2021 2020 Apple 51.3% 50.0% Facebook 26.8% 29.1% Google 19.0% 17.9% Accounts receivable concentration As of March 31, As of December, 31 Apple 67.2% 54.1% Facebook 18.0% 25.9% Google 13.6% 18.0% | 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 and accounts receivable. 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 2020 and 2019 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 year ended December 31, 2020 2019 Apple 50.8% 48.1% Facebook 27.3% 31.2% Google 18.9% 17.2% Accounts Receivable Concentration as of December 31, 2020 2019 Apple 54.1% 53.6% Facebook 25.9% 28.0% Google 18.0% 16.8% |
Fair value measurements | Fair value measurements Fair value is defined as an exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The three-tiered fair value hierarchy that prioritizes the inputs based on the observability as of the measurement date is as follows: Level 1 – Observable inputs for identical assets or liabilities, such as quoted prices in active markets; Level 2 – Inputs other than quoted prices in active markets that are either directly or indirectly observable; Level 3 – Unobservable inputs in which little or no market data exists, therefore they are developed using estimates and assumptions developed by us, which reflect those that a market participant would use. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the placement of assets and liabilities being measured within the fair value hierarchy. See Note 5: Fair value measurements. | |
Goodwill and indefinite-lived intangible assets | Goodwill and indefinite-lived Goodwill consists of the excess of the purchase price over the fair value of identifiable assets acquired and liabilities assumed in a business combination. Our indefinite-lived intangible assets were acquired in a business combination and recorded at fair value. We assess the carrying value of our goodwill and other indefinite-lived assets for potential impairment annually as of October 1, or more frequently if events or changes in circumstances indicate that the carrying value of the asset may not be recoverable. When assessing goodwill for impairment, we may elect to first utilize a qualitative assessment to evaluate if a more detailed quantitative impairment test is necessary. An impairment charge is recorded based on the excess of the reporting unit’s carrying amount over its fair value. In determining fair value of our reporting unit in connection with our annual goodwill impairment test, we perform a blended analysis of the present value of future discounted cash flows and a market valuation approach. The discounted cash flows model indicates the fair value of the reporting unit based on the present value of the cash flows that we expect the reporting unit to generate in the future. The market valuation approach indicates the fair value of the business based on a comparison of the Company to comparable publicly traded firms in similar lines of business. In determining fair value of indefinite-lived intangible assets for purposes of our annual impairment test, we use the relief-from-royalty method. This method assumes that the trade name and trademarks have value to the extent that their owner is relieved of the obligation to pay royalties for the benefits received from them. The amount of impairment of indefinite-lived intangible assets is measured by the amount by which the carrying amount of the asset exceeds the estimated fair value of the asset. We have identified a single reporting unit based on our management structure. There were no impairments of our indefinite-lived intangible assets or goodwill to date. | |
Finite-lived intangible assets | Finite-lived intangible assets Intangible assets acquired separately are measured on initial recognition at cost. The carrying value of intangible assets acquired in a business combination is their fair value at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated amortization and accumulated impairment losses. Finite-lived intangible assets are amortized over their useful economic life and assessed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of these assets is determined by comparing the forecasted undiscounted net cash flows from use and eventual disposition of the asset over its remaining economic life to its carrying value. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are considered to modify the amortization period or method, as appropriate, and are treated as changes in estimates. The amortization expense on intangible assets with finite lives is recognized in the statement of income and comprehensive income in depreciation and amortization. | |
Development costs | Development costs Development costs for new app development are capitalized and recognized as an intangible asset when the preliminary development stage has been completed, management commits to funding the project, it is probable that the project will be completed, and the software will be used for its intended function. Following initial recognition of the development costs as an asset, the asset is carried at cost less any accumulated amortization and accumulated impairment losses. Amortization of the asset begins when development is complete, and the asset is available for use. It is amortized over the period of expected future benefit. Amortization is recorded in depreciation and amortization. | |
Revenue recognition | Revenue recognition 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): Years ended December 31, 2020 2019 Mobile $ 257,405 $ 184,755 Web 100,937 88,855 Total revenue $ 358,342 $ 273,610 The following table presents our revenue disaggregated based on the geographical location of our players (in thousands): Years ended December 31, 2020 2019 U.S. (1) $ 309,211 $ 237,712 International 49,131 35,898 Total revenue $ 358,342 $ 273,610 (1) Geographic location is presented as being derived from the U.S. when data is not available Principal-agent 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 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 December 31, 2020 As of December 31, 2019 Contract assets (1) $ 718 $ 541 Contract liabilities $ 2,393 $ 1,804 (1) Contract assets are included within prepaid expenses and other assets in our consolidated balance sheet. | |
Cost of revenue | Cost of revenue Amounts recorded as cost of revenue relate to direct expenses incurred in order to generate social gaming revenue. Such costs are recorded as incurred, and primarily consist of fees withheld by our platform providers from the player proceeds received by the platform providers on our behalf, hosting fees, and royalties. Depreciation and amortization expense is excluded from cost of revenue and other operating expenses and is separately presented on the consolidated statement of income and comprehensive income. | |
Defined benefit pension plan | 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 waged-based pension plan, which provides a specified amount of pension benefit based on length of service. The service cost components of the net periodic benefit costs are charged to current operations based on the functional area of the employee. The total benefit obligation of $2.8 million and $1.9 million was included in other non-current The following table summarizes the components of the projected benefit obligation (in thousands): As of December 31, As of December 31, Projected benefit obligation at beginning of year $ 1,882 $ 1,245 Service cost 738 504 Interest cost 30 26 Actuarial (gain)/loss 492 499 Benefits paid (400 ) (159 ) Other (273 ) (190 ) Foreign currency translation adjustment 323 (43 ) Projected benefit obligation at end of year $ 2,792 $ 1,882 | |
Defined contribution plan | Defined contribution plan We sponsor a defined contribution plan for our employees based in Seattle, Washington. We provide a matching contribution of 100% on the first 1% of employee contributions and 50% on the next 5% of employee contributions. Our contribution expense for the years ended December 31, 2020 and 2019 was approximately $467,000 and $394,000 respectively. | |
Deferred offering costs | Deferred offering costs We incurred costs directly attributable to our proposed initial public offering that went effective June 30, 2020 with the Securities and Exchange Commission (SEC) but did not successfully offer securities. The offering costs were previously deferred and recorded as a non-current Deferred offering costs were $1.3 million as of December 31, 2019. | |
Advertising costs | Advertising costs The cost of advertising is expensed as incurred and totaled $61.8 million and $28.5 million for the years ended December 31, 2020 and 2019, respectively. Advertising costs primarily consist of marketing and player acquisition and retention costs and are included in sales and marketing expenses. | |
Research and development | Research and development Research and development costs relate primarily to employee costs associated with in-app internal-use | |
Income taxes | Income taxes Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates in the period in which they reverse. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” standard, no tax benefit is recorded. Statutory withholding tax is recognized in income tax expense as incurred. | |
Segment information | Segment information Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision maker, our Chief Executive Officer, in making decisions regarding resource allocation and assessing performance. We view our operations and manage our business as one operating segment. | |
Subsequent events | Subsequent events We evaluated subsequent events through March 29, 2021, which is the date the financial statements were available to be issued. | |
Basis of presentation | Basis of presentation Our unaudited condensed consolidated financial statements include all adjustments of a normal, recurring nature necessary for the fair presentation 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 years ended December 31, 2020, 2019 and 2018. 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. |
Basis of presentation and sum_2
Basis of presentation and summary of significant accounting policies (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Summary of percentage of revenues | The following table summarizes the percentage of revenue and accounts receivable generated via our platform providers in excess of 10% of our total revenue and total accounts receivable: Three months ended March 31, 2021 2020 Apple 51.3% 50.0% Facebook 26.8% 29.1% Google 19.0% 17.9% Accounts receivable concentration As of March 31, As of December, 31 Apple 67.2% 54.1% Facebook 18.0% 25.9% Google 13.6% 18.0% | 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 year ended December 31, 2020 2019 Apple 50.8% 48.1% Facebook 27.3% 31.2% Google 18.9% 17.2% Accounts Receivable Concentration as of December 31, 2020 2019 Apple 54.1% 53.6% Facebook 25.9% 28.0% Google 18.0% 16.8% |
Revenue from contracts with c_2
Revenue from contracts with customers (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Summary of disaggregation of revenue | The following table represents our revenue disaggregated based on mobile and web platforms (in thousands): Three months ended March 31, 2021 2020 Mobile $ 70,004 $ 53,159 Web 26,663 22,902 Total $ 96,667 $ 76,061 The following table represents our revenue disaggregated based on the geographical location of our players (in thousands): Three months ended March 31, 2021 2020 U.S. (1) $ 83,661 $ 71,059 International 13,006 5,002 Total $ 96,667 $ 76,061 (1) Geographic location is presented as being derived from the U.S. when data is not available. | The following table represents our disaggregation of revenue between mobile and web platforms (in thousands): Years ended December 31, 2020 2019 Mobile $ 257,405 $ 184,755 Web 100,937 88,855 Total revenue $ 358,342 $ 273,610 The following table presents our revenue disaggregated based on the geographical location of our players (in thousands): Years ended December 31, 2020 2019 U.S. (1) $ 309,211 $ 237,712 International 49,131 35,898 Total revenue $ 358,342 $ 273,610 (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, Contract assets (1) $ 584 $ 718 Contract liabilities 1,948 2,393 (1) Contract assets are included within prepaid expenses and other current assets in our condensed consolidated balance sheets. | The following table summarized our opening and closing balances in contract assets and contract liabilities (in thousands): As of December 31, 2020 As of December 31, 2019 Contract assets (1) $ 718 $ 541 Contract liabilities $ 2,393 $ 1,804 (1) Contract assets are included within prepaid expenses and other assets in our consolidated balance sheet. |
Significant accounting polici_3
Significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Summary of projected benefit obligation | The following table summarizes the components of the projected benefit obligation (in thousands): As of December 31, As of December 31, Projected benefit obligation at beginning of year $ 1,882 $ 1,245 Service cost 738 504 Interest cost 30 26 Actuarial (gain)/loss 492 499 Benefits paid (400 ) (159 ) Other (273 ) (190 ) Foreign currency translation adjustment 323 (43 ) Projected benefit obligation at end of year $ 2,792 $ 1,882 |
Recent accounting guidance - adopted | Recent accounting guidance – adopted Financial instruments — credit losses The FASB issued ASU No. 2016-13, Intangibles-Goodwill and Other The FASB issues ASU No. 2017-04, Fair value measurements In August 2018, the FASB issued ASU No. 2018-13, Income taxes In December 2019, the FASB issued ASU 2019-12, ASU 2017-11 The Financial Accounting Standards Board (“FASB“) issued Accounting Standards Update (“ASU“) No. 2017-11, In May 2017, we issued an aggregate principal amount of KRW210 billion (US $193 million) of 2.5% Convertible Bonds due 2024 and aggregate principal amount of KRW90 billion (US$83 million) of 2.5% Non-convertible The warrants were not considered liabilities within the scope of ASC 480. In addition, they also met both the requirements of (1) being considered indexed to the Company’s own stock and (2) the qualifications for equity classification. Therefore, the warrants were recorded within stockholders’ equity. There are no provisions pursuant to which the Company could be obligated to pay cash or other assets to settle the warrants; settlement is in shares only, and all settlement provisions contemplate payment of an amount based on the difference between the fair value and a fixed exercise price for a fixed number of shares; subject to down-round and standard anti-dilution adjustments. Due to the adoption of ASU 2017-11, Instead, the down-round protection feature of the warrants would be recognized as a dividend and as a reduction of income available to common shareholders, which would result in a reduction to our basic net income per share when triggered. As we apply the treasury stock method for calculated diluted earnings per share, this amount would be added back to income available to common stockholders. The 2.5% Convertible Bonds (and the 2.5% Non-convertible The Company evaluated the terms of the 2.5% Convertible Notes in accordance with ASC Topic No. 815 – 40, “Derivatives and Hedging - Contracts in Entity’s Own Stock” and determined that the underlying common stock is indexed to our common stock. We determined that the embedded conversion and other features did not meet the definition of a liability and therefore did not bifurcate the conversion and other features and account for it as a separate derivative liability. In addition, the 2.5% Convertible Bonds contain a contingent beneficial conversion feature that may be triggered if the conversion price is reduced upon a down-round in the future, subject to accounting under ASC 470-20-25-6. On May 15, 2020, DUG exercised its call option right and simultaneously redeemed the 2.5% Non-convertible |
Goodwill and intangible assets
Goodwill and intangible assets (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Summary of intangible assets | Changes in the carrying amount of intangible assets were as follows: March 31, 2021 December 31, 2020 Useful Lives (in years) Gross Accum. Net Gross Accum. Net Trademarks indefinite $ 50,000 $ — $ 50,000 $ 50,000 $ — $ 50,000 Customer relationships 4 75,000 (71,875 ) 3,125 75,000 (67,187 ) 7,813 Purchased technology 5 45,423 (35,314 ) 10,109 45,423 (33,149 ) 12,274 Development costs 3 9,486 (8,884 ) 602 9,486 (8,434 ) 1,052 Software 4 2,406 (2,308 ) 98 2,406 (2,181 ) 225 Total $ 182,315 $ (118,381 ) $ 63,934 $ 182,315 $ (110,951 ) $ 71,364 | The components of our other intangible assets were as follows (in thousands): December 31, 2020 December 31, 2019 Useful Gross Amount Accum. Amort Net Amount Gross Amount Accum. Amort Net Amount Trademarks indefinite $ 50,000 $ — $ 50,000 $ 50,000 $ — $ 50,000 Customer relationships 4 years 75,000 (67,187 ) 7,813 75,000 (48,437 ) 26,563 Purchased technology 5 years 45,423 (33,149 ) 12,274 45,423 (24,487 ) 20,936 Development costs 3 years 9,486 (8,434 ) 1,052 9,486 (5,096 ) 4,390 Software 4 years 2,406 (2,181 ) 225 2,400 (1,592 ) 808 Total $ 182,315 $ (110,951 ) $ 71,364 $ 182,309 $ (79,612 ) $ 102,697 |
Summary of estimated amortization expense | Estimated amortization expense for the years ending December 31, 2021 through 2025 is as follows (in thousands): Year Expense 2021 $ 17,735 2022 3,629 2023 0 2024 0 2025 0 | |
Summary of amortization expense | The following reflects amortization expense related to intangible assets included with depreciation and amortization: Three months ended 2021 2020 Amortization expense $ 7.4 million $ 7.9 million |
Debt (Tables)
Debt (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Summary of long-term debt instruments | The components of debt as of March 31, 2021 and December 31, 2020 are as follows (in thousands): As of March 31, As of December 31, 4.60% Senior Notes due to related party due 2024 44,111 45,956 Total debt $ 44,111 $ 45,956 Less: Short-term debt — — Total Long-term debt $ 44,111 $ 45,956 | The components of debt at December 31, 2020 and 2019 are as follows (in thousands): As of December 31, 2020 2019 3.50% Senior Note due 2020 $ — $ 34,548 4.60% Senior Notes to related party due 2024 45,956 86,371 2.5% Convertible bonds due 2024; early redemption 2022 including accrued interest — 193,643 2.5% Non-Convertible — 62,490 Total debt $ 45,956 $ 377,052 Less: Short-term debt — (34,548 ) Total Long-term debt $ 45,956 $ 342,504 |
Summary of maturities of long-term debt | As of December 31, 2020, maturities of short and long-term debt for the years ending December 31 are as follows (in thousands): Total 2020 2021 2022 2023 2024 4.60% Senior Notes to related parties due 2024 $ 45,956 — — — — $ 45,956 Total $ 45,956 — — — — $ 45,956 |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Summary of Income (Loss) Before Income Tax | Income (loss) before income tax consisted of the following (in thousands): Years Ended December 31, 2020 2019 US $ 89,416 $ 62,706 Korea (14,199 ) (12,839 ) Total income before income taxes $ 75,217 $ 49,867 |
Summary of the Detail of Income Tax Expense for the Periods | The following table presents the detail of income tax expense for the periods presented (in thousands): Years Ended December 31, 2020 2019 Current: US $ 15,244 $ 8,469 Korea 1,928 2,367 Total Current Taxes $ 17,172 $ 10,836 Deferred: US $ 5,105 $ 5,278 Korea (683 ) (2,572 ) Total Deferred Taxes $ 4,422 $ 2,706 Total Income Tax Expense $ 21,594 $ 13,542 |
Summary of Reconciliation of the Statutory Rate and Our Effective Tax Rate for the Periods | The following table presents a reconciliation of the statutory rate and our effective tax rate for the periods presented: Years Ended December 31, 2020 2019 Statutory Tax Rate 20.0% 20.0% Foreign Jurisdiction Rate Differential 3.8% 3.4% Non-deductible 1.5% — Withholding Taxes 2.3% 4.6% Tax Credits (3.5)% (7.3)% Valuation Allowance 5.0% 7.6% Other (0.5)% (1.1)% Total Tax Rate 28.6% 27.2% |
Summary of Deferred Tax Assets and Liabilities as of the Dates | The following table presents the significant components of our deferred tax assets and liabilities as of the dates presented (in thousands): As of December 31, 2020 2019 Deferred income tax assets: Net Operating Loss Carryforward $ 8,206 $ 6,173 Tax Credit Carryforward 9,529 6,286 Accruals and Reserves 1,762 976 Intangibles 14,158 9,476 Lease liability 2,565 2,736 Deferred tax assets $ 36,220 $ 25,647 Less: valuation allowance (17,936 ) (12,921 ) Net deferred tax assets $ 18,284 $ 12,726 Deferred tax liabilities Goodwill $ (35,096 ) $ (25,015 ) Accrued Interest — (8,531 ) Right-of-use-asset (2,424 ) (2,561 ) Other (359 ) (627 ) Deferred tax liabilities $ (37,879 ) $ (36,734 ) Net deferred tax assets /(liabilities) $ (19,595 ) $ (24,008 ) |
Net Income per share (Tables)
Net Income per share (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Summary of the Calculation of Basic and Diluted Net Income Per Share | The following table presents the calculation of basic and diluted net income per share (in thousands except share and per share amounts): Three months ended March 31, 2021 2020 Numerator: Net income applicable to common shareholders—basic $ 19,416 $ 12,860 Dilutive effect of assumed conversion of convertible debt — 1,814 Net income applicable to common shareholders—diluted $ 19,416 $ 14,674 Denominator: Weighted average shares outstanding—basic 2,214,522 1,192,725 Dilutive effect of assumed conversion of convertible debt — 715,258 Dilutive effect of assumed conversion of warrants — 128,868 Weighted average shares outstanding—diluted 2,214,522 2,036,851 Basic net income per share $ 8.77 $ 10.78 Diluted net income per share $ 8.77 $ 7.20 | The following table presents the calculation of basic and diluted net income per share (in thousands except share and per share amounts): Years ended December 31, 2020 2019 Numerator Net income applicable to common stockholders — basic $ 53,623 $ 36,325 Dilutive effect of assumed conversion of convertible debt 2,687 7,311 Net income applicable to common stockholders — diluted $ 56,310 $ 43,636 Denominator Weighted average common shares outstanding — basic 1,807,410 1,192,725 Dilutive effect of assumed conversion of convertible debt 295,028 715,258 Dilutive effect of assumed conversion of warrants 46,676 87,148 Weighted average common shares outstanding — diluted 2,149,114 1,995,131 Net Income per share applicable to common stockholders — basic $ 29.67 $ 30.46 Net Income per share applicable to common stockholders — diluted $ 26.20 $ 21.87 |
Accumulated other comprehensi_2
Accumulated other comprehensive income (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Summary of Accumulated Other Comprehensive Income (Loss) | Changes in accumulated other comprehensive income (“AOCI”) by component for the three months ended March 31, 2021 were as follows (in thousands): Three months ended March 31, 2020 Currency Defined Total Balance as of January 1, 2020 $ 10,131 $ (698 ) $ 9,433 Foreign currency translation gain/(loss) 9,565 9,565 Actuarial gain/(loss), net of tax expense of $8 (26 ) (26 ) Balance as of March 31, 2020 $ 19,696 $ (724 ) $ 18,972 Three months ended March 31, 2021 Currency Defined Total Balance as of January 1, 2021 $ 23,807 $ (992 ) $ 22,815 Foreign currency translation gain/(loss) 1,329 1,329 Actuarial gain/(loss), net of tax expense of $14 (55 ) (55 ) Balance as of March 31, 2021 $ 25,136 $ (1,047 ) $ 24,089 | Changes in accumulated other comprehensive income (AOCI) by component for the years ended December 31, 2020 and 2019 were as follows (in thousands): Currency Defined Total Balance at January 1, 2019 $ 389 $ (313 ) $ 76 Foreign currency translation gain/(loss) 9,742 — 9,742 Actuarial gain/(loss), net of tax — (385 ) (385 ) Balance as of December 31, 2019 $ 10,131 $ (698 ) $ 9,433 Foreign currency translation gain/(loss) 13,676 — 13,676 Actuarial gain/(loss), net of tax — (294 ) (294 ) Balance at December 31, 2020 $ 23,807 $ (992 ) $ 22,815 |
Leases (Tables)
Leases (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
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, As of December 31, Operating lease right-of-use $ 9,974 $ 10,864 Accrued rent 819 877 Total operating lease right-of-use $ 9,155 $ 9,987 Short-term operating lease liabilities $ 3,014 $ 3,033 Long-term operating lease liabilities $ 6,960 $ 7,831 Total operating lease liabilities $ 9,974 $ 10,864 Supplemental cash flow information related to leases was as follows (in thousands): Three months ended Year ended December 31, 2020 Cash paid for amounts included in the measurement of operating lease liabilities $ 871 $ 3,192 | Supplemental balance sheet and cash flow information related to operating leases is as follows: December 31, December 31, Operating lease right-of-use $ 10,864 $ 13,219 Accrued rent 877 835 Total operating lease right-of-use $ 9,987 $ 12,384 Short-term operating lease liabilities $ 3,033 $ 2,795 Long-term operating lease liabilities 7,831 10,424 Total operating lease liabilities $ 10,864 $ 13,219 Cash paid for amounts included in the measurement of operating lease liabilities $3.2 million $2.5 million |
Summary of Maturities of Lease Liabilities | Maturities of lease liabilities are as follows (in thousands): As of December 31, 2020 Seattle Seoul 2021 $ 1,938 $ 1,443 2022 1,987 1,471 2023 2,037 1,267 2024 1,732 — 2025 — — Thereafter — — Less: Imputed Interest (683 ) (328 ) Total $ 7,011 $ 3,853 |
Related party transactions (Tab
Related party transactions (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Summary of Expenses Charged by Our Parent | The following is a summary of expenses charged by our parent, DUG (in thousands): Three months ended Financial statement line item 2021 2020 Royalty expense $ 1,134 $ 475 Cost of revenue Interest expense 509 961 Interest expense Rent expense 357 371 General and administrative expense Other expense 35 4 General and administrative expense | The following is a summary of expenses charged by our parent, DoubleU Games (in thousands): Years ended Statement of Income and Comprehensive Income Line Item 2020 2019 Royalty expense (see Note 11) $ 3,015 $ 4,597 Cost of revenue Interest expense (see Note 4) 3,106 3,778 Interest expense Rent expense (see Note 10) 1,461 1,378 General and administrative expense Other expense 155 131 General and administrative expense |
Summary of Amounts Due to our Parent | Amounts due to our parent, DUG, are as follows (in thousands): At March 31, At December 31, Financial statement line item 2021 2020 4.6% Senior Note due related party $ 44,111 $ 45,956 Long-term borrowings with related party Royalties and other 3,590 3,631 Accounts payable and accrued expenses Short-term lease liability 1,347 1,399 Short-term operating lease liabilities Accrued interest on related party note 5,221 4,918 Other non-current Long-term lease liability 2,004 2,454 Long-term operating lease liabilities | Amounts due to our parent, DoubleU Games, are as follows (in thousands): At December 31, Statement of Consolidated Balance Sheet Line Item 2020 2019 4.6% Senior Notes with related party $ 45,956 $ 86,371 Long-term borrowing with related party Royalties and other expenses 3,631 2,691 Accounts payable and accrued expenses Short-term lease liability 1,399 1,288 Short-term operating lease liabilities Accrued interest on 4.6% Senior Note with related party 4,918 5,169 Other non-current Long-term lease liability 2,454 3,413 Long-term lease liabilities |
Description of Business, Basis
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Detail) $ in Millions, ₩ in Billions | Feb. 25, 2020USD ($) | Feb. 25, 2020KRW (₩) | Mar. 31, 2021Segment | Dec. 31, 2020Segment | Dec. 31, 2017USD ($) |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Business combination consideration transferred | $ | $ 825 | ||||
Number of operating segments | Segment | 1 | 1 | |||
Double8 Games Co., Ltd.[Member] | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Business combination consideration transferred | $ 1.9 | ₩ 2.3 | |||
DoubleU Games Co., Ltd.[Member] | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Equity interest percentage | 67.70% | 67.70% | |||
STIC Special Situation Private Equity Fund [Member] | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Minority interest ownership percentage | 32.30% | 32.30% |
Basis of presentation and Sum_3
Basis of presentation and Summary of Significant accounting Policies - Summary of Percentage of Revenues (Detail) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue Concentration | Apple | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration Risk, Percentage | 51.30% | 50.00% | 50.80% | 48.10% |
Revenue Concentration | Facebook | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration Risk, Percentage | 26.80% | 29.10% | 27.30% | 31.20% |
Revenue Concentration | Google | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration Risk, Percentage | 19.00% | 17.90% | 18.90% | 17.20% |
Accounts Receivable Concentration | Apple | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration Risk, Percentage | 67.20% | 54.10% | 54.10% | 53.60% |
Accounts Receivable Concentration | Facebook | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration Risk, Percentage | 18.00% | 25.90% | 25.90% | 28.00% |
Accounts Receivable Concentration | Google | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration Risk, Percentage | 13.60% | 18.00% | 18.00% | 16.80% |
Significant Accounting Polici_4
Significant Accounting Policies - Additional Information (Detail) ₩ / shares in Units, $ / shares in Units, ₩ in Billions | May 15, 2020shares | May 31, 2017USD ($)$ / sharesshares | Mar. 31, 2021Segment | Dec. 31, 2020USD ($)Segment | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | May 31, 2017KRW (₩)₩ / shares |
Summary Of Significant Accounting Policies [Line Items] | |||||||
Impairment of indefinite-lived intangible assets | $ 0 | ||||||
Impairment of goodwill | 0 | ||||||
Defined benefit plan, benefit obligation | 2,792,000 | $ 1,882,000 | $ 1,245,000 | ||||
Defined contribution expense | 467,000 | 394,000 | |||||
Deferred offering costs | 1,300,000 | ||||||
Advertising Expense | $ 61,800,000 | 28,500,000 | |||||
Number of operating segments | Segment | 1 | 1 | |||||
2.5% Convertible bonds due 2024 [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Debt instrument face amount | $ 193,000,000 | ₩ 210 | |||||
Debt instrument, interest rate, stated percentage | 2.50% | 2.50% | |||||
Debt conversion shares issued | shares | 715,258 | ||||||
2.5% Non convertible bonds due 2024 [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Debt instrument face amount | $ 83,000,000 | ₩ 90 | |||||
Debt instrument, interest rate, stated percentage | 2.50% | 2.50% | |||||
Debt conversion shares issued | shares | 306,539 | 306,540 | |||||
Debt conversion shares issued price per share | (per share) | $ 270 | ₩ 293,600 | |||||
Other net [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Deferred offering costs | $ 5,400,000 | ||||||
Employee contributions percentage one [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Defined contribution plan matching contribution percent | 1.00% | ||||||
Employee contributions percentage two [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Defined contribution plan matching contribution percent | 5.00% | ||||||
On the one percentage of employee contributions [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Defined contribution plan matching contribution percent of match | 100.00% | ||||||
On the next five percentage of employee contributions [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Defined contribution plan matching contribution percent of match | 50.00% | ||||||
Other non-current liabilities [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Defined benefit plan, benefit obligation | $ 2,800,000 | $ 1,900,000 |
Revenue from Contract with Cust
Revenue from Contract with Customers - Summary of disaggregation of revenue (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenue | $ 96,667 | $ 76,061 | $ 358,342 | $ 273,610 | ||||
US | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenue | 83,661 | [1] | 71,059 | [1] | 309,211 | [2] | 237,712 | [2] |
International | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenue | 13,006 | 5,002 | 49,131 | 35,898 | ||||
Mobile | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenue | 70,004 | 53,159 | 257,405 | 184,755 | ||||
Web | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenue | $ 26,663 | $ 22,902 | $ 100,937 | $ 88,855 | ||||
[1] | Geographic location is presented as being derived from the U.S. when data is not available. | |||||||
[2] | Geographic location is presented as being derived from the U.S. when data is not available |
Revenue from Contract With Cu_2
Revenue from Contract With Customers - Summary of Contract Assets and Contract Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||
Contract With Customer Asset And Liability [Line Items] | ||||||
Contract liabilities | $ 1,948 | $ 2,393 | $ 1,804 | |||
Prepaid expenses and other assets | ||||||
Contract With Customer Asset And Liability [Line Items] | ||||||
Contract assets | $ 584 | [1] | $ 718 | [1],[2] | $ 541 | [2] |
[1] | Contract assets are included within prepaid expenses and other current assets in our condensed consolidated balance sheets. | |||||
[2] | Contract assets are included within prepaid expenses and other assets in our consolidated balance sheet. |
Significant Accounting Polici_5
Significant Accounting Policies - Summary of Projected Benefit Obligation (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation at beginning of year | $ 1,882 | $ 1,245 |
Service cost | 738 | 504 |
Interest cost | 30 | 26 |
Actuarial (gain)/loss | 492 | 499 |
Benefits paid | (400) | (159) |
Other | (273) | (190) |
Foreign currency translation adjustment | 323 | (43) |
Projected benefit obligation at end of year | $ 2,792 | $ 1,882 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Summary of Intangible Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Amount | $ 182,315 | $ 182,315 | $ 182,309 |
Accumulated Amortization | (118,381) | (110,951) | (79,612) |
Net Amount | $ 63,934 | $ 71,364 | 102,697 |
Trademarks [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Useful Lives | indefinite | indefinite | |
Gross Amount | $ 50,000 | $ 50,000 | 50,000 |
Net Amount | $ 50,000 | $ 50,000 | 50,000 |
Customer relationships [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Useful Lives | 4 years | 4 years | |
Gross Amount | $ 75,000 | $ 75,000 | 75,000 |
Accumulated Amortization | (71,875) | (67,187) | (48,437) |
Net Amount | $ 3,125 | $ 7,813 | 26,563 |
Purchased technology [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Useful Lives | 5 years | 5 years | |
Gross Amount | $ 45,423 | $ 45,423 | 45,423 |
Accumulated Amortization | (35,314) | (33,149) | (24,487) |
Net Amount | $ 10,109 | $ 12,274 | 20,936 |
Development costs [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Useful Lives | 3 years | 3 years | |
Gross Amount | $ 9,486 | $ 9,486 | 9,486 |
Accumulated Amortization | (8,884) | (8,434) | (5,096) |
Net Amount | $ 602 | $ 1,052 | 4,390 |
Software [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Useful Lives | 4 years | 4 years | |
Gross Amount | $ 2,406 | $ 2,406 | 2,400 |
Accumulated Amortization | (2,308) | (2,181) | (1,592) |
Net Amount | $ 98 | $ 225 | $ 808 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | Jan. 01, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
Indefinite-lived Intangible Assets [Line Items] | |||||
Amortization of Intangible Assets | $ 7.4 | $ 7.9 | $ 31.3 | $ 33.1 | |
Maximum [Member] | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 5 years | ||||
Amortization of Intangible Assets | $ 2.8 | ||||
Minimum [Member] | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 3 years |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Summary of Estimated Amortization Expense (Detail) $ in Thousands | Dec. 31, 2020USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2021 | $ 17,735 |
2022 | 3,629 |
2023 | 0 |
2024 | 0 |
2025 | $ 0 |
Debt - Summary of Debt (Detail)
Debt - Summary of Debt (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | |||
Long-term debt | $ 44,111 | $ 45,956 | $ 377,052 |
Less: Short-term debt | (34,548) | ||
Total Long-term debt | 44,111 | 45,956 | 342,504 |
3.5% senior notes due in 2020 [Member] | |||
Debt Instrument [Line Items] | |||
Short Term Debt | 34,548 | ||
4.6% senior notes due to related parties in 2024 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 44,111 | $ 45,956 | 86,371 |
2.5% Convertible bonds due 2024 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | 193,643 | ||
2.5% Non convertible bonds due 2024 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 62,490 |
Debt - Additional Information (
Debt - Additional Information (Detail) ₩ / shares in Units, $ / shares in Units, $ in Thousands, ₩ in Billions | May 15, 2020USD ($)shares | May 15, 2020KRW (₩)shares | Aug. 01, 2019 | Sep. 30, 2020USD ($) | Sep. 30, 2020KRW (₩) | Jun. 30, 2020USD ($) | Jun. 30, 2020KRW (₩) | Aug. 31, 2019USD ($) | Aug. 31, 2019KRW (₩) | May 31, 2019USD ($) | May 31, 2019KRW (₩) | Jun. 30, 2020USD ($)shares | Mar. 31, 2021 | Dec. 31, 2020USD ($) | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2020₩ / shares | Jan. 01, 2020USD ($) | Jan. 01, 2020KRW (₩) | May 31, 2019KRW (₩) | Dec. 31, 2017KRW (₩)₩ / sharesshares | May 31, 2017USD ($)shares | May 31, 2017KRW (₩)₩ / sharesshares |
Debt Instrument [Line Items] | ||||||||||||||||||||||
Repayment of related party debt | $ 42,371 | |||||||||||||||||||||
Debt instrument converted into equity amount stock value | $ 187,095 | |||||||||||||||||||||
Stic [Member] | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Internal rate of return percentage | 8.00% | |||||||||||||||||||||
Percentage of shares issuable in initial public offer | 50.00% | 50.00% | ||||||||||||||||||||
2.5% Convertible bonds due 2024 [Member] | Stic [Member] | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Debt instrument face amount | $ 185,000 | ₩ 210 | ||||||||||||||||||||
Convertible bonds long term rate of interest | 2.50% | 2.50% | ||||||||||||||||||||
Debt instrument year of maturity | 2024 | |||||||||||||||||||||
Debt instrument conversion price per share | ₩ / shares | ₩ 293,600 | ₩ 293,600 | ||||||||||||||||||||
Debt instrument number of shares issuable on conversion | 715,258 | |||||||||||||||||||||
Debt instrument shares issued on conversion | shares | 715,258 | |||||||||||||||||||||
Coupon interest payable | $ 900 | $ 900 | ||||||||||||||||||||
Coupon yield to maturity return | 4,500 | $ 4,500 | ||||||||||||||||||||
Debt instrument converted into equity amount | $ 187,100 | ₩ 229.7 | ||||||||||||||||||||
Debt instrument converted into equity amount stock value | 5,800 | 7.2 | ||||||||||||||||||||
Debt instrument converted into equity amount recorded in additional paid in capital | 181,300 | 222.5 | ||||||||||||||||||||
2.5% Convertible bonds due 2024 [Member] | Stic [Member] | Previously Reported [Member] | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Debt instrument face amount | $ 193,000 | |||||||||||||||||||||
2.5% Non convertible bonds due 2024 [Member] | Stic [Member] | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Debt instrument face amount | $ 79,000 | ₩ 90 | $ 83,000 | ₩ 90 | ||||||||||||||||||
Convertible bonds long term rate of interest | 2.50% | 2.50% | ||||||||||||||||||||
Debt instrument year of maturity | 2024 | |||||||||||||||||||||
Class of warrants or rights number of shares covered by the warrants or rights | shares | 306,540 | 306,540 | 306,539 | 306,539 | ||||||||||||||||||
Class of warrants or rights conversion price per share | (per share) | $ 270 | ₩ 293,600 | ₩ 293,600 | |||||||||||||||||||
Long term debt instrument maturity date | May 26, 2024 | May 26, 2024 | ||||||||||||||||||||
Coupon interest payable quarterly percentage | 5.00% | 0.625% | ||||||||||||||||||||
Coupon yield to maturity return percentage | 5.00% | |||||||||||||||||||||
Long term debt default rate of interest | 9.00% | |||||||||||||||||||||
Debt instrument converted into equity amount | 64,400 | 79 | ||||||||||||||||||||
Debt instrument converted into equity amount stock value | 2,500 | 3.1 | ||||||||||||||||||||
Debt instrument converted into equity amount recorded in additional paid in capital | $ 61,900 | ₩ 75.9 | ||||||||||||||||||||
Class of warrants of rights the date from which the rights are excercisable | May 25, 2018 | |||||||||||||||||||||
Class of warrants or rights maturity date | Apr. 26, 2024 | |||||||||||||||||||||
Stock shares issued during the period warrant excercises | shares | 306,539 | 306,539 | ||||||||||||||||||||
Payment of accrued coupon interest | $ 300 | |||||||||||||||||||||
Forefeiture of unpaid yield to maturity interest | $ 1,900 | |||||||||||||||||||||
2.5% Non convertible bonds due 2024 [Member] | Stic [Member] | Possible Premature Redemption [Member] | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Long term debt instrument maturity date | May 26, 2022 | May 26, 2022 | ||||||||||||||||||||
2.5% Non convertible bonds due 2024 [Member] | Stic [Member] | Previously Reported [Member] | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Debt instrument face amount | $ 83,000 | |||||||||||||||||||||
Class of warrants or rights number of shares covered by the warrants or rights | shares | 306,539 | 306,539 | ||||||||||||||||||||
3.5% senior notes due in 2020 [Member] | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Debt instrument face amount | $ 74,000 | ₩ 80 | ||||||||||||||||||||
Convertible bonds long term rate of interest | 3.50% | 3.50% | ||||||||||||||||||||
Debt instrument year of maturity | 2020 | |||||||||||||||||||||
Debt instrument periodic payment principal | $ 18,000 | ₩ 20 | ||||||||||||||||||||
Debt instrument terms of interest payment | Quarterly interest | |||||||||||||||||||||
4.3% senior note [Member] | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Convertible bonds long term rate of interest | 4.30% | 4.30% | ||||||||||||||||||||
Proceeds from senior notes | $ 18,000 | ₩ 20 | ||||||||||||||||||||
4.6% senior notes due to related parties in 2024 [Member] | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Debt instrument face amount | $ 92,000 | ₩ 100 | ||||||||||||||||||||
Related party transaction rate of interest | 4.60% | 4.60% | ||||||||||||||||||||
Long term debt instrument maturity date | May 27, 2024 | May 27, 2024 | ||||||||||||||||||||
4.6% senior notes due to related parties in 2024 [Member] | Principal [Member] | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Repayment of related party debt | $ 18,000 | ₩ 20 | 28,000 | ₩ 30 | ||||||||||||||||||
4.6% senior notes due to related parties in 2024 [Member] | Interest [Member] | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Repayment of related party debt | $ 1,000 | ₩ 1.2 | $ 2,600 | ₩ 3.1 |
Debt - Summary of Maturities of
Debt - Summary of Maturities of Short and Long-term Debt (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | |||
Total | $ 44,111 | $ 45,956 | $ 377,052 |
2024 | 45,956 | ||
4.6% senior notes due to related parties in 2024 [Member] | |||
Debt Instrument [Line Items] | |||
Total | $ 44,111 | 45,956 | $ 86,371 |
2024 | $ 45,956 |
Fair Value Measurement - Additi
Fair Value Measurement - Additional Information (Detail) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Convertible debt [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt instrument, interest rate, stated percentage | 2.50% | ||
Convertible debt [Member] | Convertibles and bonds with warrants attached [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt instrument, interest rate, stated percentage | 2.50% | ||
Non-convertible debt [Member] | Convertibles and bonds with warrants attached [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt instrument, interest rate, stated percentage | 2.50% | ||
Fair value, inputs, level 1 [Member] | Money market funds [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash Equivalents, at Carrying Value | $ 82.1 | $ 61.1 | |
Fair value, inputs, level 1 [Member] | Korean market government bonds [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash Equivalents, at Carrying Value | $ 61.1 | $ 25.7 | |
Fair value, inputs, level 3 [Member] | Convertible debt [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt instrument, interest rate, stated percentage | 2.50% | ||
Convertible Debt, Fair Value Disclosures | $ 325 | ||
Fair value, inputs, level 3 [Member] | Non-convertible debt [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt instrument, interest rate, stated percentage | 2.50% | ||
Convertible Debt, Fair Value Disclosures | $ 133.5 |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income (Loss) Before Income Tax (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule Of Income loss Before Income Tax [Line Items] | ||||
US | $ 89,416 | $ 62,706 | ||
Korea | (14,199) | (12,839) | ||
Income before income tax | $ 26,107 | $ 16,488 | $ 75,217 | $ 49,867 |
Income Taxes - Summary of the D
Income Taxes - Summary of the Detail of Income Tax Expense for the Periods (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current: | ||||
US | $ 15,244 | $ 8,469 | ||
Korea | 1,928 | 2,367 | ||
Total Current Taxes | 17,172 | 10,836 | ||
Deferred: | ||||
US | 5,105 | 5,278 | ||
Korea | (683) | (2,572) | ||
Total Deferred Taxes | $ 1,925 | $ 1,483 | 4,422 | 2,706 |
Total Income Tax Expense | $ 6,691 | $ 3,628 | $ 21,594 | $ 13,542 |
Income Taxes - Summary of Recon
Income Taxes - Summary of Reconciliation of the Statutory Rate and Our Effective Tax Rate for the Periods (Detail) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ||
Statutory Tax Rate | 20.00% | 20.00% |
Foreign Jurisdiction Rate Differential | 3.80% | 3.40% |
Non-deductible interest | 1.50% | |
Withholding Taxes | 2.30% | 4.60% |
Tax Credits | (3.50%) | (7.30%) |
Valuation Allowance | 5.00% | 7.60% |
Other | (0.50%) | (1.10%) |
Total Tax Rate | 28.60% | 27.20% |
Income Taxes - Summary of Defer
Income Taxes - Summary of Deferred Tax Assets and Liabilities as of the Dates (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred income tax assets: | ||
Net Operating Loss Carryforward | $ 8,206 | $ 6,173 |
Tax Credit Carryforward | 9,529 | 6,286 |
Accruals and Reserves | 1,762 | 976 |
Intangibles | 14,158 | 9,476 |
Lease liability | 2,565 | 2,736 |
Deferred tax assets | 36,220 | 25,647 |
Less: valuation allowance | (17,936) | (12,921) |
Net deferred tax assets | 18,284 | 12,726 |
Deferred tax liabilities | ||
Goodwill | (35,096) | (25,015) |
Accrued Interest | (8,531) | |
Right-of-use-asset | (2,424) | (2,561) |
Other | (359) | (627) |
Deferred tax liabilities | (37,879) | (36,734) |
Net deferred tax assets /(liabilities) | $ (19,595) | $ (24,008) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Deferred income tax assets net | $ 537 | $ 560 | ||
Tax credit carryforward, amount | $ 34,400 | $ 28,100 | ||
Tax credit carryforward expiration period | 2026 years | |||
Effective tax rate | 28.60% | 27.20% | ||
Foreign tax authority [Member] | ||||
Tax credit carryforward, amount | $ 8,800 | $ 6,300 | ||
Tax credit carryforward expiration period | 2022 years | |||
Effective tax rate | 20.00% | |||
Domestic tax authority [Member] | ||||
Effective tax rate | 22.00% | 25.63% | ||
Maximum [Member] | ||||
Percentage of valuation allowance against deferred tax asset | 50.00% | 50.00% |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - ₩ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, par or stated value per share | ₩ 10,000 | ₩ 10,000 |
Net Income Per Share - Summary
Net Income Per Share - Summary of the Calculation of Basic and Diluted Net Income Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Numerator | ||||
Net income applicable to common shareholders-basic | $ 19,416 | $ 12,860 | $ 53,623 | $ 36,325 |
Dilutive effect of assumed conversion of convertible debt | 1,814 | 2,687 | 7,311 | |
Net income applicable to common shareholders-diluted | $ 19,416 | $ 14,674 | $ 56,310 | $ 43,636 |
Denominator | ||||
Weighted average common shares outstanding - basic | 2,214,522 | 1,192,725 | 1,807,410 | 1,192,725 |
Dilutive effect of assumed conversion of convertible debt | 715,258 | 295,028 | 715,258 | |
Dilutive effect of assumed conversion of warrants | 128,868 | 46,676 | 87,148 | |
Weighted average common shares outstanding - diluted | 2,214,522 | 2,036,851 | 2,149,114 | 1,995,131 |
Basic net income per share | $ 8.77 | $ 10.78 | $ 29.67 | $ 30.46 |
Diluted net income per share | $ 8.77 | $ 7.20 | $ 26.20 | $ 21.87 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income - Summary of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | $ 22,815 | $ 9,433 | $ 9,433 | $ 76 |
Foreign currency translation gain/(loss) | 1,329 | 9,565 | 13,676 | 9,742 |
Actuarial gain/(loss), net of tax | (55) | (26) | (294) | (385) |
Ending balance | 24,089 | 18,972 | 22,815 | 9,433 |
Currency Translation Adjustments [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | 23,807 | 10,131 | 10,131 | 389 |
Foreign currency translation gain/(loss) | 1,329 | 9,565 | 13,676 | 9,742 |
Ending balance | 25,136 | 19,696 | 23,807 | 10,131 |
Defined Benefit Pension Plan [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (992) | (698) | (698) | (313) |
Actuarial gain/(loss), net of tax | (55) | (26) | (294) | (385) |
Ending balance | $ (1,047) | $ (724) | $ (992) | $ (698) |
Leases - Additional Information
Leases - Additional Information (Detail) ft² in Thousands, $ in Thousands | Oct. 01, 2019 | Jul. 01, 2012ft² | Mar. 31, 2021USD ($)ft² | Dec. 31, 2020USD ($)ft² | Dec. 31, 2019USD ($) | Jan. 01, 2019USD ($) |
Operating Lease, Right-of-Use Asset | $ 9,155 | $ 9,987 | $ 12,384 | |||
Operating Lease, Liability | $ 9,974 | 10,864 | 13,219 | |||
Area of Land | ft² | 49,375 | |||||
Operating lease costs | 3,200 | $ 3,100 | ||||
Minimum [Member] | ||||||
Operating lease, remaining lease term | 3 years | |||||
Maximum [Member] | ||||||
Operating lease, remaining lease term | 5 years | |||||
Seattle [Member] | ||||||
Operating Lease, Right-of-Use Asset | $ 9,200 | |||||
Operating Lease, Liability | $ 9,400 | |||||
Debt instrument, interest rate, stated percentage | 4.97% | |||||
Lessee, Operating Lease, Renewal Term | 61 months | |||||
Lessee Operating Lease Expired Term | 2024-10 | 2024-10 | ||||
Gangnamgu [Member] | ||||||
Operating Lease, Right-of-Use Asset | 5,600 | |||||
Operating Lease, Liability | $ 5,600 | |||||
Debt instrument, interest rate, stated percentage | 6.07% | |||||
Area of Land | ft² | 21,218 | 31,636 | ||||
Lessee Operating Sub Lease Expired Term | 2023-09 | 2023-09 |
Leases - Summary of Cash Flow I
Leases - Summary of Cash Flow Information Related to Operating Leases (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating lease right-of-use asset | $ 9,974 | $ 10,864 | $ 13,219 |
Accrued rent | 819 | 877 | 835 |
Total operating lease right-of-use asset, net | 9,155 | 9,987 | 12,384 |
Short-term operating lease liabilities | 3,014 | 3,033 | 2,795 |
Long-term operating lease liabilities | 6,960 | 7,831 | 10,424 |
Total operating lease liabilities | 9,974 | 10,864 | 13,219 |
Cash paid for amounts included in the measurement of operating lease liabilities | $ 871 | $ 3,192 | $ 2,500 |
Leases - Summary of Maturities
Leases - Summary of Maturities of Lease Liabilities (Detail) $ in Thousands | Dec. 31, 2020USD ($) |
Seattle Lease [Member] | |
2021 | $ 1,938 |
2022 | 1,987 |
2023 | 2,037 |
2024 | 1,732 |
2025 | 0 |
Thereafter | 0 |
Less: Imputed Interest | (683) |
Total | 7,011 |
Seoul Lease [Member] | |
2021 | 1,443 |
2022 | 1,471 |
2023 | 1,267 |
2025 | 0 |
Thereafter | 0 |
Less: Imputed Interest | (328) |
Total | $ 3,853 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2021USD ($)Title | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($)Title | Dec. 31, 2019USD ($) | Dec. 31, 2018 | |
International Gaming Technologies [Member] | |||||
Percentage of royalty on revenue | 10.00% | ||||
Long-term purchase commitment, period | 10 years | 10 years | |||
Cost of revenue | $ | $ 3 | $ 3 | $ 13.5 | $ 11.5 | |
DoubleU Games License Agreement [Member] | |||||
Number of titled games | Title | 38 | 32 | |||
Maximum [Member] | International Gaming Technologies [Member] | |||||
Percentage of royalty on revenue | 15.00% | 15.00% | |||
Minimum [Member] | International Gaming Technologies [Member] | |||||
Percentage of royalty on revenue | 7.50% | 7.50% |
Related Party Transactions - Su
Related Party Transactions - Summary of Expenses Charged by Our Parent (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | ||||
Interest expense | $ 509 | $ 6,051 | $ 10,786 | $ 26,566 |
Cost of sales [Member] | ||||
Related Party Transaction [Line Items] | ||||
Royalty expense | 1,134 | 475 | 3,015 | 4,597 |
Interest expense [Member] | ||||
Related Party Transaction [Line Items] | ||||
Interest expense | 509 | 961 | 3,106 | 3,778 |
General and administrative expense [Member] | ||||
Related Party Transaction [Line Items] | ||||
Rent expense | 357 | 371 | 1,461 | 1,378 |
Other expense | $ 35 | $ 4 | $ 155 | $ 131 |
Related Party Transactions - _2
Related Party Transactions - Summary of Amounts Due to our Parent (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of related Party transactions due to our parent [Line Items] | |||
Short-term lease liability | $ 3,014 | $ 3,033 | $ 2,795 |
Long-term lease liability | 6,960 | 7,831 | 10,424 |
Long-term borrowing with related party [Member] | |||
Schedule of related Party transactions due to our parent [Line Items] | |||
4.6% Senior Note due related party | 44,111 | 45,956 | 86,371 |
Accounts payable and accrued expenses [Member] | |||
Schedule of related Party transactions due to our parent [Line Items] | |||
Royalties and other expenses | 3,590 | 3,631 | 2,691 |
Short-term operating lease liabilities [Member] | |||
Schedule of related Party transactions due to our parent [Line Items] | |||
Short-term lease liability | 1,347 | 1,399 | 1,288 |
Other non-current liabilities [Member] | |||
Schedule of related Party transactions due to our parent [Line Items] | |||
Accrued interest on 4.6% Senior Note with related party | 5,221 | 4,918 | 5,169 |
Long-term lease liabilities [Member] | |||
Schedule of related Party transactions due to our parent [Line Items] | |||
Long-term lease liability | $ 2,004 | $ 2,454 | $ 3,413 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Summary of Amortization Expense (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense | $ 7.4 | $ 7.9 | $ 31.3 | $ 33.1 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income - Summary of Accumulated Other Comprehensive Income (Loss) (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Tax expense | $ 14 | $ 8 |
Defined benefit pension plan -
Defined benefit pension plan - Additional Information (Detail) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Schedule Of Defined Benefit Plans Disclosures [Line Items] | ||
Total benefit obligation | $ 2.9 | $ 2.8 |