PlayStudios(MYPS) - 2025 Q3 - Quarterly Results

Financial Performance - Third quarter revenue was $57.6 million, down from $71.2 million in the same quarter of 2024, representing a decrease of approximately 19.1%[8] - Net loss for the third quarter was $9.1 million, with a net loss margin of 15.8%, compared to a net loss of $3.1 million and a margin of 4.3% in the prior year[8] - Consolidated AEBITDA for the third quarter was $7.2 million, with a margin of 12.6%, down from $14.6 million and a margin of 20.5% in the same quarter of 2024[8] - Net revenue for Q3 2025 was $57,648,000, a decrease of 19.1% compared to $71,229,000 in Q3 2024[32] - The net loss for Q3 2025 was $9,118,000, compared to a net loss of $3,097,000 in Q3 2024, representing an increase in loss of 194.5%[32] - Consolidated AEBITDA for Q3 2025 was $7,245,000, down 50.5% from $14,623,000 in Q3 2024[39] - The net loss margin for Q3 2025 was 15.8%, significantly higher than 4.3% in Q3 2024[39] - For the three months ended September 30, 2025, total net revenue was $57,648, a decrease of 19.0% compared to $71,229 for the same period in 2024[41] - For the nine months ended September 30, 2025, total net revenue was $179,695, a decrease of 19.0% from $221,647 in the same period in 2024[42] User Engagement - Average Daily Active Users (DAU) and Average Monthly Active Users (MAU) were 2.2 million and 9.5 million, respectively, during the third quarter of 2025[9] - Average Daily Active Users (DAU) decreased by 25.3% to 2,211 in Q3 2025 from 2,961 in Q3 2024[45] - Average Monthly Active Users (MAU) fell by 24.9% to 9,505 in Q3 2025 compared to 12,658 in Q3 2024[45] Revenue Streams - Direct-to-consumer revenue increased by 48% to $7.7 million compared to $5.2 million in the third quarter of 2024[8] - Virtual currency revenue for the three months ended September 30, 2025, was $46,381, down 19.4% from $57,564 in the prior year[43] - Advertising revenue for the three months ended September 30, 2025, was $11,257, down 17.3% from $13,613 in Q3 2024[43] - Direct-to-consumer (DTC) revenue as a percentage of virtual currency revenue increased to 16.6% in Q3 2025 from 9.0% in Q3 2024, representing a growth of 84.4%[43] Cash and Assets - As of September 30, 2025, cash and cash equivalents were $106.3 million, with an undrawn $81 million revolving credit facility[8] - Cash and cash equivalents at the end of Q3 2025 were $106,320,000, slightly down from $109,179,000 at the end of Q4 2024[34] - Total assets decreased to $299,153,000 as of September 30, 2025, from $322,955,000 as of December 31, 2024[34] - Total liabilities decreased to $60,228,000 as of September 30, 2025, down from $78,240,000 as of December 31, 2024[34] - The company reported cash flows from operating activities of $22,601,000 for the nine months ended September 30, 2025, compared to $34,124,000 for the same period in 2024[37] Operational Developments - The company expects full-year results for both net revenue and Consolidated Adjusted EBITDA to fall below the low end of previously provided guidance ranges due to recent softness in player activity and monetization[6] - The soft launch of Tetris Block Party and the beta launch of The Win Zone were significant recent developments[9] - The company is focused on stabilizing the business while building capabilities for future growth, particularly in the direct-to-consumer channel and new initiatives[4] Purchases and Rewards - Players purchased 202,666 rewards with a retail value of $15 million during the third quarter[9] - Available Rewards decreased by 40.6% year-over-year to 325 units in Q3 2025, down from 547 units in Q3 2024[47] - Purchases fell by 55.1% year-over-year to 203 units in Q3 2025, compared to 451 units in Q3 2024[47] - Retail Value of Purchases declined by 41.2% year-over-year to $14.695 million in Q3 2025, down from $24.980 million in Q3 2024[47] - Total Purchases for the nine months ended September 30, 2025, were 683 units, a decrease of 53.6% from 1,472 units in the same period of 2024[47] - Total Retail Value of Purchases for the nine months ended September 30, 2025, was $44.342 million, down 54.3% from $96.977 million in the same period of 2024[47] - Retail Value of Daily Rewards Inventory increased by 9.6% year-over-year to $2.421 million in Q3 2025, up from $2.208 million in Q3 2024[47] - Retail Value of Daily Rewards Inventory for the nine months ended September 30, 2025, increased by 27.2% to $2.495 million, compared to $1.962 million in the same period of 2024[47]