PlayStudios(MYPS) - 2025 Q1 - Quarterly Results

First Quarter 2025 Earnings Release PLAYSTUDIOS reported first-quarter 2025 revenue of $62.7 million and a net loss of $2.9 million, reflecting continued challenging market conditions First Quarter 2025 Overview and Highlights PLAYSTUDIOS reported first-quarter 2025 revenue of $62.7 million and a net loss of $2.9 million, reflecting continued challenging market conditions - CEO Andrew Pascal noted a focused start to 2025 amidst a business and industry transition, with progress in sweepstakes capabilities, direct-to-consumer channels, playAWARDS ecosystem, and 'Tetris Block Party' development[3] Financial Metric Comparison (Q1 2025 vs. Q1 2024) | Financial Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenue | $62.7 million | $77.8 million | | Net Loss | $2.9 million | $0.6 million | | Consolidated AEBITDA | $12.5 million | $15.3 million | | AEBITDA Margin | 19.9% | 19.7% | | Direct to Consumer Revenue | $5.0 million | $2.3 million | - Recent business developments include progress on the Reinvention plan targeting $25-$30 million in annualized cost savings, 'Tetris Block Party' on track for Q4 2025 launch, and repurchase of 0.9 million shares at an average price of $1.71 per share[10] Full Year 2025 Guidance PLAYSTUDIOS has maintained its full-year 2025 financial guidance, signaling confidence in its operational strategy and cost-saving initiatives despite the challenging first quarter Full Year 2025 Guidance Range | Guidance Metric | Full Year 2025 Range | | :--- | :--- | | Net Revenue | $250 to $270 million | | Consolidated AEBITDA | $45 to $55 million | Financial Statements This section presents the company's condensed consolidated financial statements, including the statement of operations and balance sheets Condensed Consolidated Statement of Operations For the first quarter of 2025, the company's net revenue decreased to $62.7 million from $77.8 million, resulting in a wider loss from operations and a net loss of $2.9 million Condensed Consolidated Statement of Operations (In thousands) | (In thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net revenue | $62,709 | $77,828 | | Total operating costs and expenses | $65,450 | $79,531 | | Loss from operations | $(2,741) | $(1,703) | | Net loss | $(2,880) | $(567) | | Net loss per share, diluted | $(0.02) | $— | Condensed Consolidated Balance Sheets As of March 31, 2025, PLAYSTUDIOS reported a solid liquidity position with $107.1 million in cash and cash equivalents and an undrawn $81 million revolving credit facility Condensed Consolidated Balance Sheets (In thousands) | (In thousands) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $107,097 | $109,179 | | Total current assets | $145,449 | $147,102 | | Total assets | $313,775 | $322,955 | | Total current liabilities | $40,385 | $49,418 | | Total liabilities | $69,693 | $78,240 | | Total stockholders' equity | $244,082 | $244,715 | - As of March 31, 2025, the company's $81 million revolving credit facility remains undrawn, indicating strong liquidity[4] Non-GAAP Measures and Supplemental Data This section provides reconciliations of non-GAAP financial measures and detailed supplemental data on segment performance and key performance indicators Reconciliation of Net Loss to Consolidated AEBITDA Consolidated AEBITDA for Q1 2025 was $12.5 million, down from $15.3 million in Q1 2024, with a slight margin improvement to 19.9% due to lower operating costs Reconciliation of Net Loss to Consolidated AEBITDA (In thousands) | (In thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net loss | $(2,880) | $(567) | | Depreciation & amortization | $9,632 | $11,566 | | Stock-based compensation expense | $4,258 | $4,794 | | Restructuring and related | $1,335 | $638 | | Consolidated AEBITDA | $12,487 | $15,314 | | Consolidated AEBITDA Margin | 19.9% | 19.7% | Segment Information The playGAMES segment remains the primary revenue driver, generating $62.6 million in revenue and $18.3 million in segment AEBITDA for Q1 2025, despite a decline from the prior year Segment Information (In thousands) | (In thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | playGAMES Net Revenue | $62,555 | $77,828 | | playGAMES Segment AEBITDA | $18,309 | $23,451 | | playAWARDS Net Revenue | $154 | $— | | playAWARDS Segment AEBITDA | $(2,289) | $(3,622) | Net Revenue Breakdown Total net revenue declined in Q1 2025, with virtual currency and advertising revenue falling, but direct-to-consumer platform revenue grew significantly by 113.9% Net Revenue Breakdown (In thousands) | Revenue Type (In thousands) | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Virtual currency | $50,840 | $60,247 | (15.6%) | | Advertising | $11,863 | $17,442 | (32.0%) | | Total net revenue | $62,709 | $77,828 | (19.4%) | - Direct-to-consumer (DTC) revenue increased by 113.9% to $4.97 million from $2.32 million in the prior year quarter[36] Key Performance Indicators (KPIs) In Q1 2025, playGAMES user engagement metrics declined, but monetization efficiency improved with an 8.3% increase in ARPDAU, while playAWARDS platform activity significantly contracted playGAMES Key Performance Indicators | playGAMES KPIs | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Average DAU (in thousands) | 2,632 | 3,495 | (24.7%) | | Average MAU (in thousands) | 11,422 | 14,752 | (22.6%) | | ARPDAU (in dollars) | $0.26 | $0.24 | 8.3% | playAWARDS Key Performance Indicators | playAWARDS KPIs | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Purchases (in thousands of units) | 281 | 501 | (44.0%) | | Retail Value of Purchases (in thousands) | $16,984 | $40,591 | (58.2%) | Definitions and Disclosures This section outlines the definitions of key performance indicators, non-GAAP financial measures, and important disclosures regarding forward-looking statements Performance Indicators Definitions The company uses several key performance indicators (KPIs) to manage its business, including audience and monetization metrics for playGAMES and engagement metrics for playAWARDS - playGAMES metrics measure audience size and engagement (DAU, MAU) and monetization (DPU, ARPDAU)[11][12][15] - playAWARDS metrics measure the value and engagement of the loyalty program, tracking the variety of rewards (Available Rewards), player redemptions (Purchases), and the real-world value provided to players (Retail Value of Purchases)[16][17][18] Non-GAAP Financial Measures PLAYSTUDIOS discloses Consolidated Adjusted EBITDA (AEBITDA) and Consolidated AEBITDA Margin as non-GAAP financial measures, used by management to analyze and benchmark business performance - Consolidated AEBITDA is defined as net income (loss) adjusted for interest, taxes, depreciation, amortization, stock-based compensation expense, restructuring costs, and other infrequent or non-cash items[22] - Management uses Consolidated AEBITDA to compare operating performance across periods and against other companies, as it removes the impact of different financing and capital structures[23] Forward-Looking Statements This press release includes forward-looking statements concerning future financial performance, game development plans, and the impact of restructuring, which are subject to significant risks and uncertainties - The report contains forward-looking statements regarding future financial and operating performance, game release plans, and anticipated cost reductions from restructuring[24] - These statements are subject to risks including competition, technological changes, ability to retain players, and general economic conditions, with no obligation for the company to update them[25]