First Quarter Revenue of $77.8 million and Net
loss of $0.6 million
Consolidated AEBITDA of $15.3 million
PLAYSTUDIOS, Inc. (NASDAQ: MYPS) (“PLAYSTUDIOS” or the
“Company”), an award-winning developer of free-to-play mobile and
social games and the developer of the playAWARDS loyalty platform,
today announced financial results for the first quarter ended March
31, 2024.
First Quarter Financial Highlights
- Revenue was $77.8 million during the first quarter of 2024,
compared to $80.1 million during the first quarter of 2023.
- Net loss was $0.6 million during the first quarter of 2024,
representing a net loss margin of (0.7)%, compared to net loss of
$2.6 million during the first quarter of 2023, representing a net
loss margin of (3.2)%.
- Consolidated AEBITDA, a non-GAAP financial measure defined
below, was $15.3 million during the first quarter of 2024, compared
to $17.8 million during the first quarter of 2023.
Andrew Pascal, Chairman and Chief Executive Officer of
PLAYSTUDIOS, commented, “We started the year well with Revenues and
Consolidated AEBITDA coming in above consensus expectations. We’ve
accomplished this despite persistent industry and economic
headwinds that make operating conditions challenging. More
importantly, we are making progress on our many strategic
initiatives and believe we’ll exit the year as a stronger
company.”
He continued, “Quarterly revenues in our playGAMES division were
flat vs. last year and up roughly 1% from the fourth quarter of
2023. While our social casino titles did see year-over-year
declines, the rate of slowdown improved from last quarter. This is
in part due to structural changes we’re making within the games,
most notably in myVEGAS and myKONAMI. Once fully implemented, we
believe these changes can bring the games’ percent of paying
players inline with industry peers and drive increases in revenues
and profitability. Our casual titles, Tetris and Brainium,
performed strongly this quarter. Tetris benefited from continued
organic momentum and recent media interest in a player completing
the original game. We believe there is significant growth ahead and
expect Tetris to perform strongly into the foreseeable future. In
addition to organic growth, we see numerous opportunities to expand
Tetris beyond its original format and build it into a multi-game
franchise. To this end, we are working on two new versions of
Tetris and expect to release one later this year. Brainium also had
a strong quarter as the effect of new advertising initiatives
continue to take hold. We plan to build on recent momentum and
expect 2024 to be a strong year for the Brainium platform.”
He added, “Consolidated AEBITDA in the quarter was lower than a
year ago, however last year’s figure included the benefit of a
licensing deal that expired in the second quarter of 2023.
Excluding this deal, Consolidated AEBITDA and Consolidated AEBITDA
margins were modestly higher than last year. Additionally, AEBITDA
margins in our playGAMES division were 30.1% in the quarter, a 100
basis point increase from year ago levels. As implied in our full
year guidance, we expect a continued increase in Consolidated
AEBITDA margins by year end and our long term goal remains to reach
margin parity with peers.”
Pascal further noted, “The focus for playAWARDS remains
preparing the platform for external use. Dialogue with other game
publishers and strategic partners continues and we remain
optimistic that formalized deals will be reached. At the same time,
we are also working on integrating the platform into all our own
games. Where playAWARDS is present, we’ve seen a marked increase in
player engagement, retention, and monetization. We also believe a
full integration will allow us to raise our share of direct
business to industry levels. myVEGAS added myVIP.co in the quarter
and we expect all our games to have myVIP.co integrated by year
end.”
He concluded, “I’m happy to share that we resumed the repurchase
of our stock this quarter. As I’ve said before, I believe public
markets are underpricing our shares and they represent tremendous
value. At the same, we continue to search for compelling
acquisitions to bolster the growth of our company. With nearly $130
million of cash on hand and no leverage, we remain well positioned
to pursue both objectives.”
Recent Business Highlights
- Resumed the repurchase of stock in the open market. From
January 1, 2024 through May 6, 2024, we repurchased an aggregate of
1.5 million shares of our Class A common stock at an average price
of $2.60 per share. The remaining availability under our $50
million stock repurchase program was $46.0 million after the most
recent purchases.
- As of March 31, 2023, PLAYSTUDIOS had a cash balance of $127
million and full availability on its $81 million loan
facility.
- The company ended the quarter with 14.8 million MAU, a 13%
increase vs. a year ago.
- At quarter end, playAWARDS had 113 rewards partners with
players making purchases during the quarter of over $40 million in
retail value.
Outlook
The Company is maintaining full year 2024 guidance of net
revenue in the range of $315 to $325 million and Consolidated
AEBITDA in the range of $65 to $70 million.
We have not provided the most directly comparable GAAP measure
for our Consolidated AEBITDA outlook because certain items that are
part of the projected non-GAAP financial measure are outside of our
control or cannot be reasonably estimated without unreasonable
effort.
Conference Call Details
PLAYSTUDIOS will host a conference call at 5:00 p.m. Eastern
Time today, which will include a brief discussion of the results
followed by a question and answer session.
The call will be accessible via the Internet through
https://ir.playstudios.com or by calling (866) 405-1203 for
domestic callers and (201) 689-8432 for international callers.
A replay of the call will be archived at
https://ir.playstudios.com.
About PLAYSTUDIOS, Inc.
PLAYSTUDIOS (Nasdaq: MYPS) creator of the groundbreaking
playAWARDS loyalty platform is a publisher and developer of
award-winning mobile games, including the iconic Tetris® mobile
app, Pop! Slots, myVEGAS Slots, myVEGAS Blackjack, myKONAMI Slots,
myVEGAS Bingo, MGM Slots Live, Solitaire, Spider Solitaire and
Sudoku. The playAWARDS loyalty platform enables players to earn
real-world rewards from a global collection of iconic hospitality,
entertainment, and leisure brands. playAWARDS partners include MGM
Resorts International, Wolfgang Puck, Norwegian Cruise Line,
Resorts World, IHG, Bowlero, Gray Line Tours, and Hippodrome Casino
among others. Founded by a team of veteran gaming, hospitality, and
technology entrepreneurs, PLAYSTUDIOS apps combine the best
elements of popular casual games with compelling real-world
benefits. To learn more about PLAYSTUDIOS, visit
playstudios.com.
Performance Indicators
We manage our business by regularly reviewing several key
operating metrics to track historical performance, identify trends
in player activity, and set strategic goals for the future. Our key
performance metrics are impacted by several factors that could
cause them to fluctuate on a quarterly basis, such as platform
providers’ policies, seasonality, player connectivity, and the
addition of new content to games. We believe these measures are
useful to investors for the same reasons. The key performance
indicators may differ from similarly titled measures presented by
other companies. For more information on our key performance
indicators, please refer to the definitions below and the
“Supplemental Data—Key Performance Indicators” section of this
press release.
Daily Active Users (“DAU”): DAU is
defined as the number of individuals who played a game on a
particular day. We track DAU by the player ID, which is assigned
for each game installed by an individual. As such, an individual
who plays two different PLAYSTUDIOS games on the same day is
counted as two DAU while an individual who plays the same
PLAYSTUDIOS game on two different devices is counted as one DAU.
Brainium tracks DAU by app instance ID, which is assigned to each
installation of a game on a particular device. As such, an
individual who plays two different Brainium games on the same day
is counted as two DAU while an individual who plays the same game
on two different devices is counted as two DAU. The term “Average
DAU” is defined as the average of the DAU, determined as described
above, for each day during the period presented. We use DAU and
Average DAU as measures of audience engagement to help us
understand the size of the active player base engaged with our
games on a daily basis.
Monthly Active Users (“MAU”): MAU
is defined as the number of individuals who played a game in a
particular month. As with DAU, an individual who plays two
different PLAYSTUDIOS games in the same month is counted as two MAU
while an individual who plays the same game on two different
devices is counted as one MAU, and an individual who plays two
different Brainium games on the same day is counted as two MAU
while an individual who plays the same game on two different
devices is counted as two MAU. The term “Average MAU” is defined as
the average of the MAU, determined as described above, for each
calendar month during the period presented. We use MAU and Average
MAU as measures of audience engagement to help us understand the
size of the active player base engaged with our games on a monthly
basis.
Daily Paying Users (“DPU”): DPU is
defined as the number of individuals who made a purchase in a
mobile game during a particular day. As with DAU and MAU, we track
DPU based on account activity. As such, an individual who makes a
purchase on two different games in a particular day is counted as
two DPU while an individual who makes purchases in the same game on
two different devices is counted as one DPU. The term “Average DPU”
is defined as the average of the DPU, determined as described
above, for each day during the period presented. We use DPU and
Average DPU to help us understand the size of our active player
base that makes in-game purchases. This focus directs our strategic
goals in setting player acquisition and pricing strategy.
Daily Payer Conversion: Daily Payer
Conversion is defined as DPU as a percentage of DAU on a particular
day. Daily Player Conversion is also sometimes referred to as
“Percentage of Paying Users” or “PPU”. The term “Average Daily
Payer Conversion” is defined as the Average DPU divided by the
Average DAU for a given period. We use Daily Payer Conversion and
Average Daily Payer Conversion to help us understand the
monetization of our active players.
Average Daily Revenue Per DAU
(“ARPDAU”): ARPDAU is defined for a given period as the
average daily revenue per Average DAU, and is calculated as game
and advertising revenue for the period, divided by the number of
days in the period, divided by the Average DAU during the period.
We use ARPDAU as a measure of overall monetization of our active
players.
playAWARDS Platform Metrics
Available Rewards: Available
Rewards is defined as the monthly average number of unique rewards
available in our applications’ rewards stores. A reward appearing
in more than one application’s reward store is counted only once. A
reward is counted only once irrespective of the inventory available
through that reward. For example, one reward for a free night in a
hotel room with ten rooms available for such free night is counted
as one reward. Available Rewards only include real-world partner
rewards and exclude PLAYSTUDIOS digital rewards. We use Available
Rewards as a measure of the value and potential impact of the
program for an interested player. It is assumed that the greater
the variety and breadth of rewards offered, the more likely players
will be to ascribe value to the program.
Purchases: Purchases is defined as
the total number of rewards purchased for the period identified in
which a player exchanges loyalty points for a reward. Purchases are
net of refunds. Purchases only include purchases of real-world
partner rewards and exclude any PLAYSTUDIOS digital rewards.
Purchases are redeemed by the player directly with the rewards
partner within the specified terms and conditions of the reward.
The Company does not receive any compensation or revenue from
Purchases. We use Purchases as a measure of audience interest and
engagement with our playAWARDS platform.
Retail Value of Purchases: Retail
Value of Purchases is defined as the cumulative retail value of all
rewards listed as Purchases for the period identified. The retail
value of each reward listed as Purchases is the retail value as
determined by the partner upon creation of the reward. In the case
where the retail value of a reward adjusts depending on time of
redemption, the average retail value is used. Retail Value of
Purchases only include the retail value of real-world partner
rewards and exclude the cost of any PLAYSTUDIOS branded
merchandise. We use Retail Value of Purchases to help us understand
the real-world value of the rewards that are purchased by our
players.
Non-GAAP Financial Measures
To provide investors with information in addition to results as
determined by GAAP, the Company discloses Consolidated Adjusted
Earnings Before Interest Taxes Depreciation and Amortization
(“AEBITDA”) as a non-GAAP measure that management believes provides
useful information to investors. This measure is not a financial
measure calculated in accordance with GAAP and should not be
considered as a substitute for revenue, net income or any other
operating performance measure calculated in accordance with
GAAP.
We define Consolidated AEBITDA as net income (loss) before
interest, income taxes, depreciation and amortization,
restructuring and related costs (consisting primarily of severance
and other restructuring related costs), stock-based compensation
expense, and other income and expense items (including special
infrequent items, foreign currency gains and losses, and other
non-cash items). We also present Consolidated AEBITDA margin, a
non-GAAP measure, which we calculate as Consolidated AEBITDA as a
percentage of net revenue.
We believe that the presentation of Consolidated AEBITDA
provides useful information to investors regarding the Company’s
results of operations because the measure assists both investors
and management in analyzing and benchmarking the performance and
value of our business. Consolidated AEBITDA provides an indicator
of performance that is not affected by fluctuations in certain
costs or other items. Accordingly, management believes that this
measure is useful for comparing general operating performance from
period to period, and management relies on this measure for
planning and forecasting of future periods. Additionally, this
measure allows management to compare results with those of other
companies that have different financing and capital structures.
However, other companies may define Consolidated AEBITDA
differently, and as a result, our measure of Consolidated AEBITDA
may not be directly comparable to that of other companies. For
further information regarding these non-GAAP measures, including
the reconciliation of these non-GAAP financial measures to their
most directly comparable GAAP financial measures, please refer to
the “Reconciliation of Net Loss to Consolidated AEBITDA” section of
this press release.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995, including statements regarding our future financial and
operating performance (including statements regarding outlook or
guidance), our liquidity and capital resources, the development and
release plans of our games, our plans to commercialize the
playAWARDS platform as a stand-alone service for use by third
parties, our increased capacity and use of personnel in European
and Asian studios, and our mergers and acquisition strategy, all of
which involve risks and uncertainties. Actual results may differ
materially from the results predicted, and reported results should
not be considered as an indication of future performance.
Forward-looking statements include all statements that are not
historical facts and can be identified by terms such as “may,”
“might,” “will,” “should,” “expects,” “plans,” “anticipates,”
“intends,” “believes,” “goal,” “work towards,” “estimates,”
“predicts,” “potential” or “continue,” the negative of these terms
and other comparable terminology that conveys uncertainty of future
events or outcomes. These forward-looking statements involve known
and unknown risks, uncertainties, assumptions and other factors
that may cause actual results to differ materially from statements
made in this press release, including our ability to develop and
publish our games; risks related to defects, errors, or
vulnerabilities in our games and IT infrastructure; our ability to
attract new, and retain existing, players of our games; the failure
to timely develop and achieve market acceptance of new games and
maintain the popularity of our existing games; rapidly evolving
technological developments in the gaming market; competition in the
industry in which we operate; our financial performance; our
ability to execute merger and acquisition transactions; legal and
regulatory developments; and general market, political, economic
and business conditions. Other potential risks and uncertainties
that could cause actual results to differ from the results
predicted include, among others, those risks and uncertainties
included under the captions “Risk Factors” and “Management’s
Discussion and Analysis of Financial Condition and Results of
Operations” in our Annual Report on Form 10-K for the fiscal year
ended December 31, 2023 filed with the Securities and Exchange
Commission (the “SEC”) on March 12, 2024, and in other filings we
make with the SEC from time to time. All information provided in
this release is based on information available to us as of the date
of this press release and any forward-looking statements contained
herein are based on assumptions that we believe are reasonable as
of this date. Undue reliance should not be placed on the
forward-looking statements in this press release, which are
inherently uncertain. We undertake no duty to update this
information unless required by law.
PLAYSTUDIOS, INC.
CONDENSED CONSOLIDATED
STATEMENT OF OPERATIONS
(Unaudited and in thousands,
except per share data)
Three Months Ended March
31,
2024
2023
Net revenue
$
77,828
$
80,123
Operating expenses:
Cost of revenue(1)
18,951
19,527
Selling and marketing
18,576
18,066
Research and development
18,021
17,755
General and administrative
11,779
11,901
Depreciation and amortization
11,566
11,033
Restructuring and related
638
4,048
Total operating costs and expenses
79,531
82,330
Loss from operations
(1,703
)
(2,207
)
Other income (expense), net:
Change in fair value of warrant
liabilities
(64
)
(1,058
)
Interest income, net
1,420
895
Other (loss) income, net
(106
)
60
Total other income (loss), net
1,250
(103
)
Loss before income taxes
(453
)
(2,310
)
Income tax expense
(114
)
(260
)
Net loss
$
(567
)
$
(2,570
)
Net loss per share attributable to Class A
and Class B common stockholders:
Basic
$
0.00
$
(0.02
)
Diluted
$
0.00
$
(0.02
)
Weighted average shares of common stock
outstanding:
Basic
135,575
132,131
Diluted
135,575
132,131
(1)
Amounts exclude depreciation and
amortization.
PLAYSTUDIOS, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Unaudited and in thousands,
except par value amounts)
March 31, 2024
December 31,
2023
ASSETS
Current assets:
Cash and cash equivalents
$
126,980
$
132,889
Receivables
31,944
30,465
Prepaid expenses and other current
assets
10,730
11,529
Total current assets
169,654
174,883
Property and equipment, net
17,905
17,549
Operating lease right-of-use assets
8,461
9,369
Intangibles assets and internal-use
software, net
108,386
110,933
Goodwill
47,133
47,133
Deferred income taxes
2,711
2,764
Other long-term assets
3,224
3,690
Total non-current assets
187,820
191,438
Total assets
$
357,474
$
366,321
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable
3,817
1,907
Warrant liabilities
1,151
1,086
Operating lease liabilities, current
3,461
4,236
Accrued and other current liabilities
29,029
38,796
Total current liabilities
37,458
46,025
Minimum guarantee liability
24,000
24,000
Deferred income taxes
1,001
1,198
Operating lease liability, noncurrent
5,532
5,699
Other long-term liabilities
1,061
1,048
Total non-current liabilities
31,594
31,945
Total liabilities
$
69,052
$
77,970
Stockholders’ equity:
Preferred stock, $0.0001 par value
(100,000 shares authorized, no shares issued and outstanding as of
March 31, 2024 and December 31, 2023)
—
—
Class A common stock, $0.0001 par value
(2,000,000 shares authorized, 124,551 and 122,923 shares issued,
and 118,705 and 118,200 shares outstanding as of March 31, 2024 and
December 31, 2023, respectively)
12
12
Class B common stock, $0.0001 par value
(25,000 shares authorized, and 16,457 and 16,457 shares issued and
outstanding as of March 31, 2024 and December 31, 2023,
respectively.
2
2
Additional paid-in capital
315,526
310,944
Retained earnings
(3,204
)
(2,637
)
Accumulated other comprehensive income
(984
)
124
Treasury stock, at cost, 5,845 and 4,723
shares at March 31, 2024 and December 31, 2023, respectively
(22,930
)
(20,094
)
Total stockholders’ equity
288,422
288,351
Total liabilities and stockholders’
equity
$
357,474
$
366,321
PLAYSTUDIOS, INC. RECONCILIATION OF
NET LOSS TO CONSOLIDATED AEBITDA (Unaudited and in thousands,
except percentages)
The following table sets forth the reconciliation of net loss
and net loss margin to Consolidated AEBITDA and Consolidated
AEBITDA margin, respectively, which we calculate as Consolidated
AEBITDA as a percentage of net revenue. Net loss and net loss
margin are the most directly comparable GAAP measures.
Three Months Ended March
31,
2024
2023
Revenue
$
77,828
$
80,123
Net loss
$
(567
)
$
(2,570
)
Net loss margin
(0.7
)%
(3.2
)%
Adjustments:
Depreciation & amortization
11,566
11,033
Income tax expense
114
260
Stock-based compensation expense
4,794
4,853
Change in fair value of warrant
liability
64
1,058
Change in fair value of contingent
consideration
—
(53
)
Restructuring and related(1)
638
4,048
Other, net(2)
(1,295
)
(864
)
Consolidated AEBITDA
15,314
17,765
Consolidated AEBITDA Margin
19.7
%
22.2
%
(1)
Amounts reported during the three months
ended March 31, 2024 and 2023 relate to internal reorganization
costs, including severance-related costs, and fees related to
evaluating various merger and acquisition opportunities.
(2)
Amounts reported in “Other, net” include
interest expense, interest income, gains/losses from equity
investments, foreign currency gains/losses, and non-cash
gains/losses on the disposal of assets.
PLAYSTUDIOS, INC.
SUPPLEMENTAL DATA - SEGMENT
INFORMATION
(Unaudited and in thousands,
except percentages)
The following table sets forth the
financial data for our reportable segments.
Three Months Ended March
31,
2024
2023
Revenue:
playGAMES
$
77,828
$
77,623
playAWARDS
—
2,500
Total revenue
77,828
80,123
Segment AEBITDA
playGAMES
23,451
22,592
playAWARDS
(3,622
)
(631
)
Total segment AEBITDA
19,829
21,961
Corporate and other
(4,515
)
(4,196
)
Consolidated AEBITDA
15,314
17,765
Depreciation & amortization
(11,566
)
(11,033
)
Income tax (expense) benefit
(114
)
(260
)
Stock-based compensation expense
(4,794
)
(4,853
)
Change in fair value of warrant
liability
(64
)
(1,058
)
Restructuring and related
(638
)
(4,048
)
Other, net
1,295
917
Net loss
$
(567
)
$
(2,570
)
Segment AEBITDA margin:
playGAMES
30.1
%
29.1
%
playAWARDS
nm
(25.2
)%
nm - not meaningful
PLAYSTUDIOS, INC.
SUPPLEMENTAL DATA – PLAYGAMES
KEY PERFORMANCE INDICATORS
(Unaudited and in thousands,
except percentages and ARPDAU)
Three Months Ended March
31,
2024
2023
Change
% Change
Average DAU
3,495
3,565
(70
)
(2.0
)%
Average MAU
14,752
13,082
1,670
12.8
%
Average DPU
27
28
(1
)
(3.6
)%
Average Daily Payer Conversion
0.8
%
0.8
%
—
pp
—
%
ARPDAU (in dollars)
$
0.24
$
0.24
$
—
—
%
pp = percentage points
PLAYSTUDIOS, INC.
SUPPLEMENTAL DATA – PLAYAWARDS
KEY PERFORMANCE INDICATORS
(Unaudited and in thousands,
except for available rewards)
Three Months Ended March
31,
2024
2023
Change
% Change
Available Rewards (in units)
521
534
(13
)
(2.4
%)
Purchases (in units)
501
440
61
13.9
%
Retail Value of Purchases (in dollars)
$
40,591
$
27,340
$
13,251
48.5
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240506321839/en/
PLAYSTUDIOS CONTACTS
Investor Relations Samir Jain, CFA
samir.jain@playstudios.com (917) 224-1058
Media Relations BerlinRosen media@playstudios.com
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