PlayStudios(MYPS) - 2023 Q4 - Annual Results

Financial Performance - Fourth quarter 2023 revenue was $77.1 million, a decrease from $79.4 million in Q4 2022[2] - Net loss for Q4 2023 was $19.9 million, compared to a net loss of $1.7 million in Q4 2022[2] - Full year 2023 revenue reached $310.9 million, compared to $290.3 million in 2022[2] - Full year 2023 net loss was $19.4 million, slightly higher than the net loss of $17.8 million in 2022[2] - Total revenue for Q4 2023 was $77,112,000, a slight decrease of 2.9% from $79,378,000 in Q4 2022[35] - Net loss for Q4 2023 was $19,864,000, compared to a net loss of $1,703,000 in Q4 2022[35] AEBITDA and Margins - Consolidated AEBITDA for Q4 2023 was $14.7 million, up from $12.1 million in Q4 2022, with AEBITDA margins increasing by 390bps year-over-year[2] - Consolidated AEBITDA for 2023 was $62.3 million, a significant increase from $38.3 million in the prior year, with margins growing nearly 700bps[2] - Consolidated AEBITDA for Q4 2023 was $14,728,000, representing a 22% increase from $12,074,000 in Q4 2022, with a consolidated AEBITDA margin of 19.1%[31] - Segment AEBITDA margin for playGAMES improved to 29.6% in Q4 2023 from 21.8% in Q4 2022[35] - Total segment AEBITDA for playGAMES was $22,834,000 in Q4 2023, up from $16,731,000 in Q4 2022[35] Cash and Assets - As of December 31, 2023, the company had a cash balance of $133 million and full availability on its $81 million loan facility[7] - Cash and cash equivalents as of December 31, 2023, were $132,889,000, slightly down from $134,000,000 in 2022[29] - Total assets increased to $366,321,000 in 2023 from $352,009,000 in 2022, driven by growth in intangible assets and internal-use software[29] - Total liabilities rose significantly to $77,970,000 in 2023 from $49,696,000 in 2022, primarily due to an increase in accrued and other current liabilities[29] User Engagement - Average Daily Active Users (DAU) increased by 6.1% to 3,361 in Q4 2023 from 3,169 in Q4 2022[37] - Average Monthly Active Users (MAU) rose by 15.9% to 13,288 in Q4 2023 compared to 11,463 in Q4 2022[37] - Average Revenue Per Daily Active User (ARPDAU) decreased by 3.8% to $0.25 in Q4 2023 from $0.26 in Q4 2022[37] Future Projections - The company expects full year 2024 net revenue to be in the range of $315 - $325 million[5] - Full-year Consolidated AEBITDA for 2024 is projected to be between $65 - $70 million[5] Operational Insights - Operating expenses for Q4 2023 totaled $79,825,000, down from $83,840,000 in Q4 2022, with a notable reduction in cost of revenue by 10% year-over-year[26] - The company reported a significant increase in research and development expenses, totaling $70,298,000 for the year, up from $63,315,000 in 2022[26] - The number of available rewards units remained stable at 578 in Q4 2023 compared to 574 in Q4 2022[39] - Retail value of purchases in Q4 2023 was $27,702,000, a decrease of 8.3% from $30,212,000 in Q4 2022[39] Challenges - The company anticipates continued challenges in attracting and retaining players, alongside evolving technological developments in the gaming market[23]