PlayStudios(US:MYPS)2022-11-13 09:56Financial Data and Key Metrics Changes - The company reported revenue of $72.1 million for Q3 2022, an increase from $70.6 million in the same quarter last year and $68.4 million in Q2 2022 [42] - Adjusted EBITDA was $9.8 million, compared to $9.6 million a year ago and $7.3 million in Q2 2022 [43] - Daily Active Users (DAU) were 1.5 million, and Monthly Active Users (MAU) were 6.7 million, showing a year-over-year increase of 24.6% and 87.1%, respectively, while remaining flat sequentially [43] Business Line Data and Key Metrics Changes - The core social casino games, including Pop! Slots, myVEGAS Slots, and myKONAMI Slots, showed stable performance, with ARPDAU increasing despite a year-over-year decline of 20% due to the inclusion of Tetris [42][43] - The loyalty program, playAWARDS, expanded to nearly 600 unique rewards, with reward purchases totaling 553,000 units, a 15% increase year-over-year [18][44] Market Data and Key Metrics Changes - The social casino genre faced a year-over-year decline of 2.2% over the past several quarters, but the company believes it is outperforming peers [13] - The user acquisition environment remains challenging, influenced by changes to IDFA on iOS, making it difficult to find and retain profitable players [11][12] Company Strategy and Development Direction - The acquisition of Brainium is viewed as strategically significant, diversifying the company's portfolio and expected to drive value with its casual games [8][36] - The company is focusing on expanding its playAWARDS platform and integrating it into new games, including Tetris and the Brainium suite, to enhance player retention [20][54] - The company is also advancing its regional operating model, expanding teams in Vietnam and Serbia to improve operational efficiency and margins [15][16] Management's Comments on Operating Environment and Future Outlook - The management expressed concerns about the challenging macroeconomic environment, including high inflation and market volatility, which could impact consumer confidence [12] - Despite these challenges, the company remains optimistic about its performance and the potential of its new game initiatives, including Tetris and myVEGAS Bingo, to contribute to future results [53] Other Important Information - The company ended the quarter with a cash balance of approximately $212 million and no debt, maintaining a strong financial position [49] - The Board of Directors reauthorized a $50 million share repurchase plan for another 12 months [40] Q&A Session Summary Question: Diverging industry trends between casual and social casino - Management noted that it is too early to determine if there are structural changes between casual and social casino genres, as the casual portfolio is relatively new [59] Question: Update on direct-to-consumer platform - Management acknowledged ongoing challenges in creating a seamless direct-to-consumer experience but is actively working on enhancing this platform [61][62] Question: Fourth quarter guidance and expected trends - Management confirmed that the guidance includes approximately 2.5 months of Brainium's contribution, but did not provide specific quarterly guidance [71][74] Question: Observations on user acquisition and monetization trends - Management indicated that while the user acquisition environment remains difficult, they have not observed significant deterioration in their performance [85] Question: Fundamental drivers for improvement in user acquisition environment - Management did not identify any specific drivers for improvement but emphasized the importance of retaining existing audiences through strategic acquisitions [90]