UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For transition period from to Commission File Number 001-39652 PLAYSTUDIOS, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or orga ...

PLAYSTUDIOS, Inc. (MYPS) came out with a quarterly loss of $0.02 per share in line with the Zacks Consensus Estimate. This compares to break-even earnings per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this company would post a loss of $0.14 per share when it actually produced a loss of $0.05, delivering a surprise of 64.29%.Over the last four quarters, the company has surpassed consensus EPS estimates three times.PLAYSTUDIOS, which belongs to th ...

Playstudios (MYPS) Q1 2025 Earnings Call May 05, 2025 05:00 PM ET Company Participants Jason Hahn - Chief Strategy OfficerAndrew Pascal - Co-Founder, Chairman and CEOScott Peterson - VP and CFO Conference Call Participants Mike Hickey - Equity Research AnalystNone - AnalystAaron Lee - Senior Research AnalystMartin Yang - Senior Analyst Operator and welcome to PlayStudio's First Quarter twenty twenty five Earnings Call. At this time, all participants are in a listen only mode. A question and answer session w ...

Playstudios (MYPS) Q1 2025 Earnings Call May 05, 2025 05:00 PM ET Speaker0 and welcome to PlayStudio's First Quarter twenty twenty five Earnings Call. At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. Please note this conference is being recorded. I will now turn the conference over to your host, Jason Hahn, Chief Strategy Officer and Head of Investor Relations. Thank you, sir. You may begin. Speaker1 Thank you, operator. Good aftern ...

Exhibit 99.1 PLAYSTUDIOS, INC. ANNOUNCES FIRST QUARTER RESULTS Conference Call Details First Quarter Revenue of $62.7 million and Net loss of $2.9 million Consolidated AEBITDA of $12.5 million Las Vegas, Nevada – May 5, 2025 – 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, 2025. Andrew Pascal, Cha ...

Group 1 - The stock of PLAYSTUDIOS, Inc. (MYPS) is experiencing significant attention due to high implied volatility in the options market, particularly the May 16, 2025 $1.00 Call option [1] - Implied volatility indicates the market's expectation of future movement, suggesting that investors anticipate a significant price change or an upcoming event that could lead to a rally or sell-off [2] - Currently, PLAYSTUDIOS holds a Zacks Rank 3 (Hold) in the Gaming industry, which is in the bottom 38% of the Zacks Industry Rank, with no analysts increasing their estimates for the current quarter and one analyst revising estimates downward, leading to a consensus estimate shift from a profit of one cent per share to a loss of three cents [3] Group 2 - The high implied volatility surrounding PLAYSTUDIOS may indicate a developing trading opportunity, as options traders often seek to sell premium on options with high implied volatility to capture decay, hoping the underlying stock does not move as much as expected by expiration [4]

Game Portfolio and Revenue Generation - PLAYSTUDIOS has developed a portfolio of free-to-play social casino games, including Tetris®-branded mobile games and the acquisition of Brainium in late 2022[303]. - Revenue is primarily generated from in-game virtual currency sales, with a significant concentration in North America, and in-game advertising has been expanded since 2021[306][307]. - The company invests significantly in user acquisition and game development to maintain player engagement and drive revenue growth[308]. Key Performance Indicators - Daily Active Users (DAU) and Monthly Active Users (MAU) are key performance indicators, with DAU defined as the number of individuals playing a game on a particular day[312][313]. - Daily Paying Users (DPU) measures the number of individuals making purchases in a game daily, with Average DPU calculated for performance tracking[314]. - Average Daily Revenue Per DAU (ARPDAU) is used to assess overall monetization, calculated as game and advertising revenue divided by Average DAU[316]. Player Engagement and Rewards - The playAWARDS program offers real-world rewards, with the number of Available Rewards being a measure of program value and player engagement[317]. - Purchases of rewards through the playAWARDS platform are tracked, with the total number of rewards purchased indicating audience interest[318]. - The Retail Value of Purchases reflects the cumulative retail value of rewards redeemed, providing insight into the real-world value of rewards for players[319]. - The myVIP program enhances player engagement and retention through tiered benefits and personalized experiences[305]. Financial Performance - Net revenue decreased by $21.5 million, or 6.9%, to $289.4 million for the year ended December 31, 2024, compared to $310.9 million in 2023[320]. - Operating loss increased by $22.4 million, or 213.4%, to $32.9 million in 2024 from $10.5 million in 2023[320]. - Net loss rose by $9.3 million, or 47.9%, to $28.7 million in 2024 compared to $19.4 million in 2023[320]. - playGAMES revenue was $289.4 million in 2024, down $17.3 million, or 5.7%, from $306.7 million in 2023, primarily due to a $19.1 million decrease in virtual currency revenue[324][325]. - playAWARDS revenue plummeted by $4.1 million, or 98.5%, to $62, attributed to the non-renewal of a licensing arrangement[326]. - Average Daily Active Users (DAU) for playGAMES decreased by 424, or 12.0%, to 3,100 in 2024 from 3,524 in 2023[324]. - Total operating expenses increased slightly by $0.9 million, or 0.3%, to $322.3 million in 2024 compared to $321.4 million in 2023[327]. - Restructuring expenses surged by $17.1 million, or 199.5%, to $25.7 million in 2024, driven by non-cash impairments and management restructurings[333]. - Consolidated AEBITDA decreased by $5.7 million, or 9.2%, to $56.5 million in 2024 from $62.3 million in 2023[338]. - playGAMES AEBITDA for the year ended December 31, 2024, was $85.1 million, a decrease of 4.1% from $88.7 million in 2023, with an AEBITDA margin of 29.4% compared to 28.9% in 2023[339]. - playAWARDS AEBITDA was $(13.7) million for the year ended December 31, 2024, compared to $(10.4) million in 2023, attributed to the non-renewal of a licensing arrangement[340]. - Consolidated AEBITDA for the year ended December 31, 2024, was $56.5 million, down from $62.3 million in 2023, with a Consolidated AEBITDA margin of 19.5% compared to 20.0% in 2023[343]. - Net revenue decreased to $289.4 million in 2024 from $310.9 million in 2023, resulting in a net loss of $(28.7) million, with a net loss margin of (9.9)% compared to (6.2)% in 2023[343]. Cash Flow and Liquidity - Cash and cash equivalents as of December 31, 2024, were $109.2 million, with restricted cash of $1.2 million, indicating sufficient liquidity for operations and capital expenditures for at least the next 12 months[345]. - Net cash provided by operating activities was $45.7 million in 2024, down from $51.7 million in 2023, primarily due to lower net revenue[356]. - Net cash used in investing activities was $26.3 million in 2024, a decrease from $32.3 million in 2023, mainly due to reduced cash used for purchasing intangible assets and property[357]. - Financing activities used $41.9 million of net cash in 2024, compared to $20.2 million in 2023, driven by increased share repurchases and minimum guarantee payments[358]. - The company had a Total Net Leverage Ratio of 3.50:1.00 as of December 31, 2024, with a Fixed Charge Coverage Ratio of not less than 1.25:1.00[354]. - The company may require additional funds for business growth, including developing new games and enhancing existing ones, which may lead to equity or debt financings[345]. - The company had cash and cash equivalents totaling $109.2 million as of December 31, 2024, down from $132.9 million as of December 31, 2023, indicating a decrease of approximately 17.8%[382]. Revenue Recognition and Risks - The average consumption period for virtual currency is approximately one day, with a timing difference between purchase and consumption ranging from one to seven days[370]. - The company recognizes revenue from in-game purchases of virtual currency over the estimated average period between purchase and consumption[370]. - The company has entered into derivative contracts to purchase certain foreign currencies, with a notional value of approximately $2.5 million, expected to mature within the upcoming 12 months[386]. - The company does not have any borrowings outstanding under its Credit Agreement as of December 31, 2024, and December 31, 2023[380]. - The company’s advertising revenue is recognized at the point in time when advertisements are displayed or offers are completed, with payment terms ranging from 45 to 60 days after the end of the month[372][373]. - The company has determined that it is the principal in its revenue reporting, leading to revenues being reported gross of payment processing fees[374]. - A hypothetical 100 basis point change in interest rates would have an immaterial impact on the company's interest income due to the short-term nature of its investments[382]. - The company is exposed to foreign currency risks, particularly from transactions in currencies other than the U.S. Dollar, which could materially impact future operating results[383][385]. - The company continues to gather detailed player behavior data to assess its revenue recognition policy and make necessary adjustments based on changes in player behavior patterns[371].

Financial Data and Key Metrics Changes - The company reported a revenue decline of $9.3 million or 12% year-over-year in Q4 2024, with full-year revenues down 7% compared to 2023 [34][41] - Adjusted EBITDA for Q4 was $12.5 million, a 15% decrease from the previous year, resulting in an adjusted EBITDA margin of 18.4%, down 70 basis points year-over-year [36][41] - Daily Active Users (DAU) decreased by 19% to 2.7 million, while Monthly Active Users (MAU) fell by 14% to 11.5 million [37] Business Line Data and Key Metrics Changes - The social casino segment experienced significant revenue declines, attributed to ongoing challenges in maintaining DAU [34] - The casual games segment also saw lower revenues, primarily driven by a decline in DAU for the Tetris franchise [34][36] - ARPDAU (Average Revenue Per Daily Active User) increased by 8% to $0.27, driven by improvements in the social casino portfolio [38] Market Data and Key Metrics Changes - The sweepstakes market has grown from $700 million to a forecasted $4.5 billion, indicating a significant opportunity for the company [59] - The company aims to integrate sweepstakes features into its existing games, which is expected to enhance player engagement and monetization [60][62] Company Strategy and Development Direction - The company has implemented a reinvention plan, reducing its workforce by over 30% and focusing on operational efficiency and cost reduction [9][40] - Strategic initiatives include the development of new games, particularly in the Tetris franchise, and the expansion of the playAWARDS loyalty program [12][26] - The company is committed to pursuing strategic M&A opportunities while maintaining a disciplined approach to capital allocation [30][78] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges in the gaming industry but expressed confidence in returning to growth, particularly with the introduction of new initiatives [7][35] - The company expects to generate positive cash flows and maintain a strong balance sheet with $109 million in cash and no borrowings [41][50] - Guidance for 2025 estimates revenues between $250 million and $270 million, with adjusted EBITDA ranging from $45 million to $55 million [43] Other Important Information - The company repurchased $31 million worth of stock in 2024, representing 13% of total issued common stock [42] - The inaugural World Tournament of Slots event was held, generating significant player engagement and excitement [28] Q&A Session Summary Question: Timing and Integration of Sweepstakes Initiatives - Management indicated that the sweepstakes initiative will initially be a separate offering, with plans for integration into existing games as regulatory clarity improves [62][64] Question: Decline in playAWARDS Retail Value - The decline in retail value of playAWARDS purchases was attributed to a reset of the rewards program and reduced overall play activity [66][68] Question: Balancing Development with Reduced Workforce - The company plans to leverage third-party development resources and transition teams to lower-cost regions to balance development needs with workforce reductions [74][75] Question: M&A Strategy and Market Opportunities - The company remains focused on M&A as a core strategy but is currently prioritizing internal development for sweepstakes capabilities [88] Question: Impact of Sweepstakes on Social Casino Games - Management believes that sweepstakes will not detract from social casino games but rather provide an additional value proposition to the same consumer base [90][92] Question: Consumer Spending and Economic Conditions - Management noted cautious consumer spending but emphasized that the guidance reflects ongoing market dynamics and investment in growth opportunities [98][100] Question: Regulatory Concerns Regarding Sweepstakes - The company plans to approach the sweepstakes market cautiously, ensuring compliance with regulations while leveraging its experience in the gaming industry [106][108] Question: Effectiveness of Loyalty Program - Management believes the loyalty program adds value and is working to enhance its offerings to improve engagement and retention [113][115]

Financial Performance - Fourth quarter 2024 revenue was $67.8 million, a decrease of 12.1% from $77.1 million in the fourth quarter of 2023[5] - Net loss for the fourth quarter 2024 was $22.4 million, compared to a net loss of $19.9 million in the same quarter of 2023[5] - For the full year 2024, revenue was $289.4 million, down from $310.9 million in 2023, with a net loss of $28.7 million compared to a net loss of $19.4 million in the prior year[5] - Net revenue for Q4 2024 was $67,782,000, a decrease of 12.9% from $77,112,000 in Q4 2023[29] - The net loss for Q4 2024 was $22,412,000, compared to a net loss of $19,864,000 in Q4 2023, indicating a 12.8% increase in losses[29] - Total net revenue for the year ended December 31, 2024, was $289,429,000, down 6.9% from $310,886,000 in 2023[38] - Net loss for the year ended December 31, 2024, was $28,687,000, compared to a net loss of $19,393,000 in 2023[38] User Metrics - Average Daily Active Users (DAU) and Monthly Active Users (MAU) were 2.7 million and 11.5 million, respectively, with an Average Revenue Per Daily Active User (ARPDAU) of $0.27[5] - Average Daily Active Users (DAU) declined by 19.0% to 2,723 in Q4 2024 compared to 3,361 in Q4 2023[41] - Average Monthly Active Users (MAU) decreased by 13.7% to 11,472 in Q4 2024 from 13,288 in Q4 2023[41] - Average Daily Payer Conversion remained stable at 0.8% for both Q4 2024 and Q4 2023[41] Cost and Expenses - Total operating costs and expenses increased to $90,202,000 in Q4 2024, up from $79,825,000 in Q4 2023, representing a 12.5% rise[29] - Restructuring and related expenses for Q4 2024 were $20,462,000, a substantial increase from $1,472,000 in Q4 2023[34] - The company executed a cost reinvention program, resulting in an expected annual cost savings of approximately $25 million to $30 million[9] Cash and Assets - As of December 31, 2024, the company had $109.2 million in cash and cash equivalents, with an undrawn $81 million revolving credit facility[5] - Cash and cash equivalents decreased to $109,179,000 as of December 31, 2024, down from $132,889,000 in 2023, a decline of 17.9%[32] - Total assets decreased to $322,955,000 in 2024 from $366,321,000 in 2023, reflecting a reduction of 11.8%[32] - The accumulated deficit increased to $31,324,000 in 2024 from $2,637,000 in 2023, showing a significant rise in losses[32] Revenue Streams - Direct to Consumer revenue increased by 93.0% to $4.7 million in the fourth quarter 2024, compared to $2.4 million in the same quarter of 2023[5] - Virtual currency revenue fell by 9.5% to $54,643,000 in Q4 2024 from $60,365,000 in Q4 2023[39] - Advertising revenue decreased by 21.0% to $13,136,000 in Q4 2024 compared to $16,628,000 in Q4 2023[39] Future Outlook - The company expects full year 2025 Consolidated Net Revenue to range between $250 million and $270 million, with Consolidated Adjusted EBITDA expected to be between $45 million and $55 million[7] - The company has integrated Pixode Games Limited and is working on a new Tetris title, aiming for market release in 2025[9] Profitability Metrics - Consolidated AEBITDA for the fourth quarter 2024 was $12.5 million, down from $14.7 million in the fourth quarter of 2023, with a margin of 18.4%[5] - Consolidated AEBITDA for Q4 2024 was $12,473,000, with a margin of 18.4%, compared to $14,728,000 and a margin of 19.1% in Q4 2023[34] - The company reported a net loss margin of 33.1% for Q4 2024, compared to 25.8% in Q4 2023, indicating worsening profitability[34] - AEBITDA margin for playGAMES was 24.3% in Q4 2024, down from 29.6% in Q4 2023[38] Shareholder Information - The weighted average shares of common stock outstanding decreased to 124,794,000 in Q4 2024 from 134,259,000 in Q4 2023[29]

Group 1 - The core viewpoint of the analysis is a downgrade of Playstudios (NASDAQ: MYPS) from Buy to Hold due to growth concerns and a lack of near-term catalysts, which is further reinforced by its Q3 results [1] - The Q3 results of Playstudios highlight ongoing growth concerns, indicating that the company's performance is not meeting expectations [1] Group 2 - The analyst has a focus on undercovered companies, maintaining a watchlist of over 50 companies across sectors such as technology, software, electronics, and energy transition [1] - The analyst has over 7 years of personal investment experience and a background in Electrical Engineering, currently working in automotive battery R&D [1]