Light & Wonder (LNW) Q2 Earnings Top on Solid Revenue Growth

Core Insights - Light & Wonder, Inc. reported strong second-quarter 2024 results, with both revenue and net income exceeding expectations, marking the eighth consecutive quarter of double-digit revenue growth, showcasing the company's robust portfolio and business model [1] Financial Performance - Net income for the quarter was $82 million, or 90 cents per share, a significant improvement from a net loss of $1 million, or a loss of one cent per share, in the same quarter last year, primarily driven by revenue growth [2] - Total revenues increased to $818 million from $731 million year-over-year, surpassing the consensus estimate of $806 million, with services revenues rising to $526 million and product sales reaching $292 million [3] - Gaming revenues were $539 million, reflecting a 14% year-over-year increase, supported by sales growth in gaming machines and strong demand in gaming operations and systems [4] Segment Performance - Revenues from SciPlay grew to $205 million from $190 million year-over-year, an 8% increase driven by the core social casino business, with average revenue per daily active user reaching a record-high of $1.04, up 12% year-over-year [4] - iGaming revenues rose to $74 million, a 6% increase from the previous year, fueled by growth in North America [4] Operational Metrics - Non-GAAP consolidated AEBITDA was $330 million, up from $281 million year-over-year, with an AEBITDA margin increasing to 40% from 38% [5] - For the first half of 2024, the company generated $312 million in cash from operating activities, compared to $219 million in the same period last year, with cash and cash equivalents totaling $321 million as of June 30, 2024 [6]