PlayStudios(MYPS) - 2024 Q4 - Annual Results

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]