PlayStudios(MYPS) - 2024 Q3 - Quarterly Results

Financial Performance - Third quarter revenue was $71.2 million, a decrease from $75.9 million in the same quarter of 2023[2] - Net loss for the third quarter was $3.1 million, improving from a net loss of $3.8 million in the third quarter of 2023, resulting in a net loss margin of 4.3%[2] - Consolidated AEBITDA was $14.6 million, up from $13.5 million in the third quarter of 2023, with AEBITDA margins increasing to 20.5%[3] - Net revenue for the three months ended September 30, 2024, was $71,229,000, a decrease of 6.9% from $75,858,000 in the same period of 2023[26] - Net loss for the three months ended September 30, 2024, was $(3,097,000), compared to a net income of $3,800,000 in the same period of 2023, resulting in a net loss margin of (4.3%) compared to a margin of 5.0%[26][33] - Total operating costs and expenses for the three months ended September 30, 2024, were $76,007,000, down from $79,579,000 in the same period of 2023, reflecting a decrease of 4.5%[26] - Consolidated AEBITDA for the three months ended September 30, 2024, was $14,623,000, representing a margin of 20.5%, compared to $13,525,000 and a margin of 17.8% in the same period of 2023[33] - Total net loss for the nine months ended September 30, 2024, was $6,275 thousand compared to a net income of $471 thousand for the same period in 2023[36] User Metrics - Average Daily Active Users (DAU) and Monthly Active Users (MAU) were 3.0 million and 12.7 million, respectively, with ARPDAU at $0.26[4] - Average Daily Active Users (DAU) dropped to 2,961 in Q3 2024, down 15.9% from 3,520 in Q3 2023[37] - Average Monthly Active Users (MAU) decreased to 12,658 in Q3 2024, a decline of 7.7% compared to 13,712 in Q3 2023[37] - Average Daily Payer Conversion remained stable at 0.8% in both Q3 2024 and Q3 2023[37] - ARPDAU increased to $0.26 in Q3 2024, reflecting a growth of 13.0% from $0.23 in Q3 2023[37] Cash and Assets - The company has $105.2 million in cash and cash equivalents, with an undrawn revolving credit facility of $81 million[4] - Cash and cash equivalents as of September 30, 2024, were $105,170,000, down from $132,889,000 as of December 31, 2023[29] - Total assets decreased to $330,550,000 as of September 30, 2024, from $366,321,000 as of December 31, 2023[29] - Total liabilities decreased to $65,369,000 as of September 30, 2024, from $77,970,000 as of December 31, 2023[30] Cost Management - The newly launched reinvention program is expected to reduce costs by approximately $25 million to $30 million annually[5] - Research and development expenses for the three months ended September 30, 2024, were $16,654,000, slightly down from $17,367,000 in the same period of 2023[26] - Selling and marketing expenses for the three months ended September 30, 2024, were $15,116,000, a decrease from $18,786,000 in the same period of 2023[26] - Corporate and other operating expenses rose to $4,619 thousand in Q3 2024, compared to $3,935 thousand in Q3 2023, an increase of 17.4%[36] Shareholder Actions - The company has repurchased 13.6 million shares at an average price of $2.15 per share, with $45.5 million remaining under the stock repurchase program[6] Future Outlook - The company maintains its full-year 2024 guidance of net revenue between $285 million and $295 million, and Consolidated AEBITDA between $55 million and $60 million[9] - The integration of Pixode Games Limited is underway, with plans to release a new Tetris title in 2025[7] Rewards Program - Players purchased 451,300 rewards through the playAWARDS platform, with a retail value of $25 million[4] - Available rewards for playAWARDS decreased to 547 units in Q3 2024, down 8.5% from 598 units in Q3 2023[38] - Retail value of purchases for playAWARDS increased to $24,980 thousand in Q3 2024, a rise of 3.4% from $24,165 thousand in Q3 2023[38] Segment Performance - Net revenue for playGAMES decreased to $71,226 thousand in Q3 2024 from $75,857 thousand in Q3 2023, a decline of 7.0%[36] - Reportable segment AEBITDA for playGAMES improved to $23,233 thousand in Q3 2024 from $21,640 thousand in Q3 2023, an increase of 7.4%[36] - The company reported a restructuring expense of $3,231,000 for the three months ended September 30, 2024, compared to $1,280,000 in the same period of 2023[26]