PLAYSTUDIOS, Inc. (MYPS) came out with a quarterly loss of $0.02 per share in line with the Zacks Consensus Estimate. This compares to break-even earnings per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this company would post a loss of $0.14 per share when it actually produced a loss of $0.05, delivering a surprise of 64.29%.Over the last four quarters, the company has surpassed consensus EPS estimates three times.PLAYSTUDIOS, which belongs to th ...

Playstudios (MYPS) Q1 2025 Earnings Call May 05, 2025 05:00 PM ET Speaker0 and welcome to PlayStudio's First Quarter twenty twenty five Earnings Call. At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. Please note this conference is being recorded. I will now turn the conference over to your host, Jason Hahn, Chief Strategy Officer and Head of Investor Relations. Thank you, sir. You may begin. Speaker1 Thank you, operator. Good aftern ...

Exhibit 99.1 PLAYSTUDIOS, INC. ANNOUNCES FIRST QUARTER RESULTS Conference Call Details First Quarter Revenue of $62.7 million and Net loss of $2.9 million Consolidated AEBITDA of $12.5 million Las Vegas, Nevada – May 5, 2025 – PLAYSTUDIOS, Inc. (NASDAQ: MYPS) ("PLAYSTUDIOS" or the "Company"), an award- winning developer of free-to-play mobile and social games and the developer of the playAWARDS loyalty platform, today announced financial results for the first quarter ended March 31, 2025. Andrew Pascal, Cha ...

Group 1 - The stock of PLAYSTUDIOS, Inc. (MYPS) is experiencing significant attention due to high implied volatility in the options market, particularly the May 16, 2025 $1.00 Call option [1] - Implied volatility indicates the market's expectation of future movement, suggesting that investors anticipate a significant price change or an upcoming event that could lead to a rally or sell-off [2] - Currently, PLAYSTUDIOS holds a Zacks Rank 3 (Hold) in the Gaming industry, which is in the bottom 38% of the Zacks Industry Rank, with no analysts increasing their estimates for the current quarter and one analyst revising estimates downward, leading to a consensus estimate shift from a profit of one cent per share to a loss of three cents [3] Group 2 - The high implied volatility surrounding PLAYSTUDIOS may indicate a developing trading opportunity, as options traders often seek to sell premium on options with high implied volatility to capture decay, hoping the underlying stock does not move as much as expected by expiration [4]

☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) For transition period from to Commission File Number 001-39652 PLAYSTUDIOS, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organizat ...

Financial Data and Key Metrics Changes - The company reported a revenue decline of $9.3 million or 12% year-over-year in Q4 2024, with full-year revenues down 7% compared to 2023 [34][41] - Adjusted EBITDA for Q4 was $12.5 million, a 15% decrease from the previous year, resulting in an adjusted EBITDA margin of 18.4%, down 70 basis points year-over-year [36][41] - Daily Active Users (DAU) decreased by 19% to 2.7 million, while Monthly Active Users (MAU) fell by 14% to 11.5 million [37] Business Line Data and Key Metrics Changes - The social casino segment experienced significant revenue declines, attributed to ongoing challenges in maintaining DAU [34] - The casual games segment also saw lower revenues, primarily driven by a decline in DAU for the Tetris franchise [34][36] - ARPDAU (Average Revenue Per Daily Active User) increased by 8% to $0.27, driven by improvements in the social casino portfolio [38] Market Data and Key Metrics Changes - The sweepstakes market has grown from $700 million to a forecasted $4.5 billion, indicating a significant opportunity for the company [59] - The company aims to integrate sweepstakes features into its existing games, which is expected to enhance player engagement and monetization [60][62] Company Strategy and Development Direction - The company has implemented a reinvention plan, reducing its workforce by over 30% and focusing on operational efficiency and cost reduction [9][40] - Strategic initiatives include the development of new games, particularly in the Tetris franchise, and the expansion of the playAWARDS loyalty program [12][26] - The company is committed to pursuing strategic M&A opportunities while maintaining a disciplined approach to capital allocation [30][78] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges in the gaming industry but expressed confidence in returning to growth, particularly with the introduction of new initiatives [7][35] - The company expects to generate positive cash flows and maintain a strong balance sheet with $109 million in cash and no borrowings [41][50] - Guidance for 2025 estimates revenues between $250 million and $270 million, with adjusted EBITDA ranging from $45 million to $55 million [43] Other Important Information - The company repurchased $31 million worth of stock in 2024, representing 13% of total issued common stock [42] - The inaugural World Tournament of Slots event was held, generating significant player engagement and excitement [28] Q&A Session Summary Question: Timing and Integration of Sweepstakes Initiatives - Management indicated that the sweepstakes initiative will initially be a separate offering, with plans for integration into existing games as regulatory clarity improves [62][64] Question: Decline in playAWARDS Retail Value - The decline in retail value of playAWARDS purchases was attributed to a reset of the rewards program and reduced overall play activity [66][68] Question: Balancing Development with Reduced Workforce - The company plans to leverage third-party development resources and transition teams to lower-cost regions to balance development needs with workforce reductions [74][75] Question: M&A Strategy and Market Opportunities - The company remains focused on M&A as a core strategy but is currently prioritizing internal development for sweepstakes capabilities [88] Question: Impact of Sweepstakes on Social Casino Games - Management believes that sweepstakes will not detract from social casino games but rather provide an additional value proposition to the same consumer base [90][92] Question: Consumer Spending and Economic Conditions - Management noted cautious consumer spending but emphasized that the guidance reflects ongoing market dynamics and investment in growth opportunities [98][100] Question: Regulatory Concerns Regarding Sweepstakes - The company plans to approach the sweepstakes market cautiously, ensuring compliance with regulations while leveraging its experience in the gaming industry [106][108] Question: Effectiveness of Loyalty Program - Management believes the loyalty program adds value and is working to enhance its offerings to improve engagement and retention [113][115]

Financial Performance - Fourth quarter 2024 revenue was $67.8 million, a decrease of 12.1% from $77.1 million in the fourth quarter of 2023[5] - Net loss for the fourth quarter 2024 was $22.4 million, compared to a net loss of $19.9 million in the same quarter of 2023[5] - For the full year 2024, revenue was $289.4 million, down from $310.9 million in 2023, with a net loss of $28.7 million compared to a net loss of $19.4 million in the prior year[5] - Net revenue for Q4 2024 was $67,782,000, a decrease of 12.9% from $77,112,000 in Q4 2023[29] - The net loss for Q4 2024 was $22,412,000, compared to a net loss of $19,864,000 in Q4 2023, indicating a 12.8% increase in losses[29] - Total net revenue for the year ended December 31, 2024, was $289,429,000, down 6.9% from $310,886,000 in 2023[38] - Net loss for the year ended December 31, 2024, was $28,687,000, compared to a net loss of $19,393,000 in 2023[38] User Metrics - Average Daily Active Users (DAU) and Monthly Active Users (MAU) were 2.7 million and 11.5 million, respectively, with an Average Revenue Per Daily Active User (ARPDAU) of $0.27[5] - Average Daily Active Users (DAU) declined by 19.0% to 2,723 in Q4 2024 compared to 3,361 in Q4 2023[41] - Average Monthly Active Users (MAU) decreased by 13.7% to 11,472 in Q4 2024 from 13,288 in Q4 2023[41] - Average Daily Payer Conversion remained stable at 0.8% for both Q4 2024 and Q4 2023[41] Cost and Expenses - Total operating costs and expenses increased to $90,202,000 in Q4 2024, up from $79,825,000 in Q4 2023, representing a 12.5% rise[29] - Restructuring and related expenses for Q4 2024 were $20,462,000, a substantial increase from $1,472,000 in Q4 2023[34] - The company executed a cost reinvention program, resulting in an expected annual cost savings of approximately $25 million to $30 million[9] Cash and Assets - As of December 31, 2024, the company had $109.2 million in cash and cash equivalents, with an undrawn $81 million revolving credit facility[5] - Cash and cash equivalents decreased to $109,179,000 as of December 31, 2024, down from $132,889,000 in 2023, a decline of 17.9%[32] - Total assets decreased to $322,955,000 in 2024 from $366,321,000 in 2023, reflecting a reduction of 11.8%[32] - The accumulated deficit increased to $31,324,000 in 2024 from $2,637,000 in 2023, showing a significant rise in losses[32] Revenue Streams - Direct to Consumer revenue increased by 93.0% to $4.7 million in the fourth quarter 2024, compared to $2.4 million in the same quarter of 2023[5] - Virtual currency revenue fell by 9.5% to $54,643,000 in Q4 2024 from $60,365,000 in Q4 2023[39] - Advertising revenue decreased by 21.0% to $13,136,000 in Q4 2024 compared to $16,628,000 in Q4 2023[39] Future Outlook - The company expects full year 2025 Consolidated Net Revenue to range between $250 million and $270 million, with Consolidated Adjusted EBITDA expected to be between $45 million and $55 million[7] - The company has integrated Pixode Games Limited and is working on a new Tetris title, aiming for market release in 2025[9] Profitability Metrics - Consolidated AEBITDA for the fourth quarter 2024 was $12.5 million, down from $14.7 million in the fourth quarter of 2023, with a margin of 18.4%[5] - Consolidated AEBITDA for Q4 2024 was $12,473,000, with a margin of 18.4%, compared to $14,728,000 and a margin of 19.1% in Q4 2023[34] - The company reported a net loss margin of 33.1% for Q4 2024, compared to 25.8% in Q4 2023, indicating worsening profitability[34] - AEBITDA margin for playGAMES was 24.3% in Q4 2024, down from 29.6% in Q4 2023[38] Shareholder Information - The weighted average shares of common stock outstanding decreased to 124,794,000 in Q4 2024 from 134,259,000 in Q4 2023[29]

Group 1 - The core viewpoint of the analysis is a downgrade of Playstudios (NASDAQ: MYPS) from Buy to Hold due to growth concerns and a lack of near-term catalysts, which is further reinforced by its Q3 results [1] - The Q3 results of Playstudios highlight ongoing growth concerns, indicating that the company's performance is not meeting expectations [1] Group 2 - The analyst has a focus on undercovered companies, maintaining a watchlist of over 50 companies across sectors such as technology, software, electronics, and energy transition [1] - The analyst has over 7 years of personal investment experience and a background in Electrical Engineering, currently working in automotive battery R&D [1]

Company Overview - PLAYSTUDIOS, Inc. has developed a portfolio of free-to-play social casino games, including Tetris®-branded mobile games, and acquired Brainium in late 2022[109]. Revenue Generation - The company generates revenue primarily from in-game virtual currency sales, with a significant portion concentrated in North America[112]. - In-game advertising has been expanded as a revenue source, particularly for Tetris® and Brainium games, which generate most of their revenue through this channel[114]. Key Performance Indicators - Daily Active Users (DAU) and Monthly Active Users (MAU) are key performance indicators, with DAU defined as the number of individuals playing a game on a particular day[123][124]. - Daily Paying Users (DPU) measures the number of individuals making purchases in a game daily, with Average DPU calculated for performance tracking[125]. - Daily Payer Conversion is defined as DPU as a percentage of DAU, providing insight into monetization effectiveness[126]. - Average Daily Revenue Per DAU (ARPDAU) is calculated as game and advertising revenue divided by Average DAU, serving as a monetization measure[127]. Player Engagement and Retention - The playAWARDS program offers real-world rewards at no cost to the company, enhancing player engagement and retention[121]. - The myVIP program is designed to drive player engagement and retention through tiered benefits and personalized experiences[111]. Financial Performance - Net revenue decreased by $4.6 million, or (6.1)%, to $71.2 million for the three months ended September 30, 2024, compared to $75.9 million for the same period in 2023[136]. - Operating expenses totaled $76.0 million for the three months ended September 30, 2024, a decrease of $3.6 million, or (4.5)%, from $79.6 million in the same period of 2023[138]. - The net loss for the three months ended September 30, 2024, was $3.1 million, compared to a net income of $3.8 million for the same period in 2023, representing a change of $(6.9) million or (181.5)%[136]. - Average Daily Active Users (DAU) decreased by 559 to 2,961 for the three months ended September 30, 2024, a decline of (15.9)% compared to 3,520 in the same period of 2023[136]. - Virtual currency revenue decreased by $4.0 million, primarily driven by decreases in Daily Paying Users (DPU) for the three months ended September 30, 2024[136]. - playAWARDS segment net revenue remained flat at $3,000 for the three months ended September 30, 2024, compared to $1,000 in the same period of 2023, reflecting a 200.0% increase[137]. - Total operating loss for the nine months ended September 30, 2024, was $(10.4) million, compared to $(7.8) million for the same period in 2023, an increase of 34.3%[136]. - Advertising revenue increased by 13.1% to $47.1 million for the nine months ended September 30, 2024, compared to $41.6 million in the same period of 2023[136]. - The net revenue for the nine months ended September 30, 2024, decreased by $8.0 million, or (3.5)%, to $221.6 million compared to $229.6 million for the same period in 2023[136]. Operating Expenses - Restructuring expenses increased by 152.4% to $3.2 million for the three months ended September 30, 2024, compared to $1.3 million in the same period of 2023[138]. - Total operating expenses decreased by $9.5 million to $232.1 million for the nine months ended September 30, 2024, compared to $241.5 million for the same period in 2023, representing a 3.9% decrease[139]. - Cost of revenue decreased by $3.4 million to $54.9 million for the nine months ended September 30, 2024, with a percentage of revenue decrease from 24.9% in 2023 to 24.7% in 2024[141]. - Selling and marketing expenses decreased by $4.5 million to $50.8 million for the nine months ended September 30, 2024, with a percentage of revenue decrease from 23.6% in 2023 to 22.9% in 2024[143]. - Research and development expenses decreased by $2.1 million to $51.4 million for the nine months ended September 30, 2024, with a percentage of revenue increase from 22.9% in 2023 to 23.2% in 2024[145]. - General and administrative expenses increased by $1.3 million to $35.0 million for the nine months ended September 30, 2024, with a percentage of revenue increase from 14.4% in 2023 to 15.8% in 2024[147]. EBITDA Performance - Consolidated AEBITDA increased by $1.1 million to $14.6 million for the three months ended September 30, 2024, representing an 8.1% increase compared to the same period in 2023[157]. - AEBITDA for the playGAMES segment increased by $2.8 million to $68.6 million for the nine months ended September 30, 2024, representing a 4.2% increase compared to the same period in 2023[158]. - playGAMES AEBITDA for Q3 2024 was $23.2 million, up from $21.6 million in Q3 2023, representing an increase of 7.4%[159]. - playGAMES AEBITDA margin improved to 32.6% in Q3 2024 from 28.5% in Q3 2023, driven by increased direct-to-consumer sales and reduced user acquisition costs[159]. - For the nine months ended September 30, 2024, playGAMES AEBITDA was $68.6 million, an increase of 4.3% from $65.8 million in the same period of 2023[159]. - playAWARDS AEBITDA for Q3 2024 was $(4.0) million, slightly improved from $(4.2) million in Q3 2023, attributed to decreased employee costs[160]. - playAWARDS AEBITDA for the nine months ended September 30, 2024 was $(11.1) million, worsening from $(6.5) million in the same period of 2023 due to lower net revenue[161]. - Consolidated AEBITDA for Q3 2024 was $14.6 million, up from $13.5 million in Q3 2023, with a margin of 20.5% compared to 17.8% in Q3 2023[166]. Cash Flow and Financial Position - Cash and cash equivalents as of September 30, 2024, totaled $105.2 million, down from $132.9 million at the end of 2023[179]. - Net cash provided by operating activities for the nine months ended September 30, 2024, was $34.1 million, a decrease from $36.4 million in the same period of 2023[171]. - The company used $22.1 million in investing activities during the nine months ended September 30, 2024, compared to $21.9 million in the same period of 2023, influenced by the Pixode Acquisition[172]. - Financing activities used $38.6 million in net cash during the nine months ended September 30, 2024, significantly higher than $17.8 million in the same period of 2023, primarily due to increased share repurchases[173]. Internal Controls and Legal Matters - No changes in internal control over financial reporting were identified during the three months ended September 30, 2024[185]. - The company believes that ongoing litigation will not have a material adverse effect on its business[187].

Financial Data and Key Metrics Changes - Revenues for Q3 2024 were $71.2 million, a 6% decrease year-over-year, while adjusted EBITDA increased by 8% to $14.6 million, with adjusted EBITDA margins expanding by 270 basis points to 20.5% [21][23][10] - The company expects normalized annual cost savings of approximately $25 million to $30 million from its restructuring plan [9][27] Business Line Data and Key Metrics Changes - The social games portfolio accounted for the majority of the revenue decline, with mixed results in casual games, particularly a slowdown in Tetris and continued strength in Branium [21][22][24] - The direct-to-consumer business represented 7.2% of total revenues, up from 4.5% in the previous quarter, with a goal to exceed 20% in the future [13] Market Data and Key Metrics Changes - Daily Active Users (DAU) decreased by 16% to 3 million, while Monthly Active Users (MAU) fell by 8% to 12.7 million [24] - Average Revenue Per Daily Active User (ARPDAU) increased by 13% to $0.26, with double-digit year-over-year gains in myVEGAS, myKONAMI, and Branium [24][25] Company Strategy and Development Direction - The company launched a reinvention plan focusing on stabilizing revenue and increasing profitability, which includes a workforce reduction of over 30% and the suspension of select sub-scale games [9][8] - The integration of the recent acquisition, Pixode, is progressing, with plans to leverage the Tetris brand for a new game expected in 2025 [16][32] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing industry pressures affecting sales but expressed optimism about the potential for improved performance through recent restructuring efforts [31][50] - The company remains committed to pursuing strategic and accretive M&A transactions while maintaining a strong cash position of approximately $105 million [20][28] Other Important Information - The company restarted its share repurchase program, having repurchased nearly 10% of its total issued stock this year [20][28] - A charge of $14 million to $16 million is expected in Q4 related to the restructuring, with half attributed to severance and contract termination payments [27][75] Q&A Session Summary Question: What drove the double-digit ARPDAU increases for myVEGAS and Branium? - The growth was driven by new ad units incorporated into the games and improvements in conversion rates and spending among users [34][35] Question: Can you provide more details on the sweepstakes initiatives? - The company is building its own systems to leverage sweepstakes as a promotional mechanic, aiming to enhance engagement and monetization [36][38] Question: How has Pop! Slots performed in Q4? - There have been mixed results, but recent performance improvements are encouraging, and the company is optimistic about future growth [40][42] Question: What is the status of the playAWARDS program? - The company is moderating investments in playAWARDS as a service to focus on core franchises, but sees long-term potential in the program [44][46] Question: How will the restructuring impact revenue growth in 2025? - While there may be near-term instability, the restructuring is expected to enable better focus on key products and initiatives, ultimately leading to improved performance [49][50] Question: What is the timeline for the new Tetris title? - The new Tetris game is expected to be ready for market testing in the first half of 2025, with a focus on optimizing the product [76][78] Question: How will the sweepstakes product coexist with playAWARDS? - The sweepstakes will be integrated into existing apps, enhancing engagement and providing additional value to players [66][68]