分组1 - PLAYSTUDIOS reported a quarterly loss of $0.02 per share, better than the Zacks Consensus Estimate of a loss of $0.03, representing an earnings surprise of 33.33% [1] - The company posted revenues of $71.23 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 2.31%, but down from $75.86 million year-over-year [2] - Over the last four quarters, PLAYSTUDIOS has exceeded consensus EPS estimates three times and topped revenue estimates three times as well [2] 分组2 - Since the beginning of the year, PLAYSTUDIOS shares have declined approximately 49.5%, contrasting with the S&P 500's gain of 20.1% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.01 on revenues of $71.99 million, and for the current fiscal year, it is -$0.06 on revenues of $291.99 million [7] - The gaming industry, where PLAYSTUDIOS operates, is currently ranked in the bottom 39% of over 250 Zacks industries, indicating potential challenges ahead [8]

Financial Performance - Third quarter revenue was $71.2 million, a decrease from $75.9 million in the same quarter of 2023[2] - Net loss for the third quarter was $3.1 million, improving from a net loss of $3.8 million in the third quarter of 2023, resulting in a net loss margin of 4.3%[2] - Consolidated AEBITDA was $14.6 million, up from $13.5 million in the third quarter of 2023, with AEBITDA margins increasing to 20.5%[3] - Net revenue for the three months ended September 30, 2024, was $71,229,000, a decrease of 6.9% from $75,858,000 in the same period of 2023[26] - Net loss for the three months ended September 30, 2024, was $(3,097,000), compared to a net income of $3,800,000 in the same period of 2023, resulting in a net loss margin of (4.3%) compared to a margin of 5.0%[26][33] - Total operating costs and expenses for the three months ended September 30, 2024, were $76,007,000, down from $79,579,000 in the same period of 2023, reflecting a decrease of 4.5%[26] - Consolidated AEBITDA for the three months ended September 30, 2024, was $14,623,000, representing a margin of 20.5%, compared to $13,525,000 and a margin of 17.8% in the same period of 2023[33] - Total net loss for the nine months ended September 30, 2024, was $6,275 thousand compared to a net income of $471 thousand for the same period in 2023[36] User Metrics - Average Daily Active Users (DAU) and Monthly Active Users (MAU) were 3.0 million and 12.7 million, respectively, with ARPDAU at $0.26[4] - Average Daily Active Users (DAU) dropped to 2,961 in Q3 2024, down 15.9% from 3,520 in Q3 2023[37] - Average Monthly Active Users (MAU) decreased to 12,658 in Q3 2024, a decline of 7.7% compared to 13,712 in Q3 2023[37] - Average Daily Payer Conversion remained stable at 0.8% in both Q3 2024 and Q3 2023[37] - ARPDAU increased to $0.26 in Q3 2024, reflecting a growth of 13.0% from $0.23 in Q3 2023[37] Cash and Assets - The company has $105.2 million in cash and cash equivalents, with an undrawn revolving credit facility of $81 million[4] - Cash and cash equivalents as of September 30, 2024, were $105,170,000, down from $132,889,000 as of December 31, 2023[29] - Total assets decreased to $330,550,000 as of September 30, 2024, from $366,321,000 as of December 31, 2023[29] - Total liabilities decreased to $65,369,000 as of September 30, 2024, from $77,970,000 as of December 31, 2023[30] Cost Management - The newly launched reinvention program is expected to reduce costs by approximately $25 million to $30 million annually[5] - Research and development expenses for the three months ended September 30, 2024, were $16,654,000, slightly down from $17,367,000 in the same period of 2023[26] - Selling and marketing expenses for the three months ended September 30, 2024, were $15,116,000, a decrease from $18,786,000 in the same period of 2023[26] - Corporate and other operating expenses rose to $4,619 thousand in Q3 2024, compared to $3,935 thousand in Q3 2023, an increase of 17.4%[36] Shareholder Actions - The company has repurchased 13.6 million shares at an average price of $2.15 per share, with $45.5 million remaining under the stock repurchase program[6] Future Outlook - The company maintains its full-year 2024 guidance of net revenue between $285 million and $295 million, and Consolidated AEBITDA between $55 million and $60 million[9] - The integration of Pixode Games Limited is underway, with plans to release a new Tetris title in 2025[7] Rewards Program - Players purchased 451,300 rewards through the playAWARDS platform, with a retail value of $25 million[4] - Available rewards for playAWARDS decreased to 547 units in Q3 2024, down 8.5% from 598 units in Q3 2023[38] - Retail value of purchases for playAWARDS increased to $24,980 thousand in Q3 2024, a rise of 3.4% from $24,165 thousand in Q3 2023[38] Segment Performance - Net revenue for playGAMES decreased to $71,226 thousand in Q3 2024 from $75,857 thousand in Q3 2023, a decline of 7.0%[36] - Reportable segment AEBITDA for playGAMES improved to $23,233 thousand in Q3 2024 from $21,640 thousand in Q3 2023, an increase of 7.4%[36] - The company reported a restructuring expense of $3,231,000 for the three months ended September 30, 2024, compared to $1,280,000 in the same period of 2023[26]

Investment Thesis - Playstudios (NASDAQ:MYPS) shares have declined nearly 30% since June, primarily due to weak performance in the social casino segment and underwhelming results from the new Tetris game launch [2] - Management has lowered revenue and adjusted EBITDA guidance, indicating challenges ahead, while capital allocation strategies will be crucial for shareholder returns [2][7] - The current valuation is appealing, with net cash accounting for over half of the market cap, leading to a downgrade of MYPS shares to a Hold [2][12] Revenue Performance - The social casino segment, particularly POP slots, has experienced continued headwinds, leading to a reduction in revenue guidance from $320 million to $290 million [3][5] - Execution issues have been cited as a significant factor in the underperformance of POP slots, with management expressing optimism for future stability at lower performance levels [3] New Game Launch - The Tetris Block Puzzle game was expected to drive revenue growth but has fallen short of expectations due to high user acquisition costs, despite positive feedback [4] - Management is optimizing user acquisition strategies and plans to release an additional Tetris game later this year or early in 2025 [4] Financial Guidance - Adjusted EBITDA is now expected to be $57.5 million, down from $67.5 million, indicating a year-over-year revenue decline of 9% in H2 2024 [5] - Despite revenue declines, adjusted EBITDA margins are anticipated to remain stable at around 20%, supported by growth in casual games and cost reductions [5] Loyalty Platform Outlook - The company's Loyalty as a Service offering has seen limited traction, leading management to shift focus away from this initiative, resulting in a less optimistic near-term outlook [6] Capital Allocation Strategy - With a significant cash balance relative to market cap, capital allocation is critical for driving shareholder returns through share buybacks and acquisitions [7] - The company has $46 million remaining on its repurchase authorization, which is expected to be utilized actively given the current valuation [7] Valuation Analysis - At a share price of $1.55, Playstudios has a market cap of $193 million and an enterprise value of $87 million, trading at an EV/adjusted EBITDA multiple of 1.5 [8] - The company is expected to convert around 30% of adjusted EBITDA to free cash flow (FCF), projecting FCF for FY24 at approximately $17 million [9] Peer Comparison - Despite weak financials, Playstudios' valuation is considered undemanding, especially compared to peers like Playtika (PLTK), which trades at a Price/FCF multiple of 6 [10]

Game Development and Offerings - The company has developed a portfolio of free-to-play social casino games, including award-winning titles like POP! Slots and myVEGAS Slots, and has expanded its offerings with the acquisition of Brainium in late 2022[88]. - The company invests significantly in game development and enhancements to maintain player interest and achieve revenue growth, with expenditures occurring prior to new content releases[97]. - The playAWARDS and myVIP programs are designed to drive player engagement and retention, with ongoing investments to enhance these loyalty programs[98]. - The company offers real-world rewards at no cost to itself, which are provided by rewards partners, and plans to expand and diversify its rewards loyalty program[99]. Revenue Generation - Revenue is primarily generated from the sale of in-game virtual currency, with a significant concentration in North America, and the company has introduced in-game advertising as a revenue stream, particularly for Tetris® and Brainium games[91][93]. - The company incurs platform fees of approximately 30% on in-game purchases processed by third-party platforms like the Apple App Store and Google Play Store, which can impact overall revenue[94]. - Advertising revenue increased by $1.7 million, or 11.7%, to $16.0 million in Q2 2024 compared to $14.3 million in Q2 2023[113]. User Engagement Metrics - 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, and MAU defined as the number of individuals playing a game in a particular month[101][102]. - Daily Paying Users (DPU) is tracked to understand the size of the active player base making in-game purchases, with Average DPU calculated for each day during the reporting period[103]. - Average Daily Active Users (DAU) decreased by 431, or 11.8%, to 3,220 in Q2 2024 compared to 3,651 in Q2 2023[113]. - Average Monthly Active Users (MAU) decreased by 281, or 2.0%, to 13,597 in Q2 2024 compared to 13,878 in Q2 2023[113]. Financial Performance - Net revenue for Q2 2024 decreased by $5.2 million, or 6.7%, to $72.6 million compared to $77.8 million in Q2 2023[109]. - Operating loss for Q2 2024 was $4.0 million, a significant increase of 114.7% from a loss of $1.8 million in Q2 2023[109]. - Net loss for Q2 2024 increased to $2.6 million, up 244.0% from a loss of $0.8 million in Q2 2023[109]. - playAWARDS segment net revenue dropped by $1.7 million, or 99.9%, to $2,000 in Q2 2024 due to the non-renewal of a licensing arrangement[114]. - Total operating expenses for Q2 2024 were $76.6 million, a decrease of $3.1 million, or 3.9%, from $79.6 million in Q2 2023[115]. - Consolidated AEBITDA decreased by $4.6 million to $29.5 million for the six months ended June 30, 2024, compared to $34.0 million for the same period in 2023, representing a 13.5% decrease[131]. - Consolidated AEBITDA margin for the first half of 2024 was 19.6%, compared to 21.6% in the first half of 2023[136]. Cost Management - Total operating expenses decreased by $5.9 million to $156.1 million for the six months ended June 30, 2024, compared to $161.9 million for the same period in 2023, representing a 3.6% decrease[116]. - Cost of revenue decreased by $1.4 million to $37.0 million for the six months ended June 30, 2024, with the cost as a percentage of revenue increasing from 24.3% in 2023 to 24.6% in 2024[117]. - Selling and marketing expenses decreased by $0.9 million to $35.6 million for the six months ended June 30, 2024, with the percentage of revenue increasing from 23.1% in 2023 to 23.7% in 2024[119]. - Research and development expenses decreased by $1.4 million to $34.8 million for the six months ended June 30, 2024, primarily due to a decrease in stock compensation and employee costs[120]. - General and administrative expenses increased by $0.5 million to $23.4 million for the six months ended June 30, 2024, driven by higher employee costs and IT applications[121]. - Depreciation and amortization expenses increased by $1.1 million to $23.2 million for the six months ended June 30, 2024, primarily due to license renewals[122]. - Restructuring expenses decreased by $3.8 million to $2.0 million for the six months ended June 30, 2024, mainly due to reductions in management restructurings and severance[124]. Cash Flow and Financial Position - Cash and cash equivalents as of June 30, 2024, totaled $106.3 million, down from $132.9 million at the end of 2023[137][147]. - Net cash provided by operating activities for the first half of 2024 was $19.5 million, a decrease from $23.9 million in the same period of 2023[141]. - Net cash used in financing activities increased to $32.4 million in the first half of 2024, compared to $15.6 million in the same period of 2023, primarily due to share repurchases[143]. - The company may require additional funds for business growth, including developing new games and enhancing existing ones[138]. - As of June 30, 2024, the company held derivative contracts to purchase foreign currencies with a notional value of approximately $17.5 million[150].

Financial Data and Key Metrics Changes - Net revenues for Q2 2024 were $72.6 million, a 7% decrease compared to the previous year, primarily due to softness in the social casino portfolio [10] - Consolidated adjusted EBITDA was $14.1 million, down from $16.3 million a year ago, reflecting a decline in operating margins [11] - Daily Active Users (DAU) decreased to 3.2 million, a 12% decline year-over-year, while Monthly Active Users (MAU) were 13.6 million, down 2% [11] Business Line Data and Key Metrics Changes - The playGAMES division expanded its portfolio from four social casino apps to 20 games, including the Tetris franchise, which saw a 230% increase in DAU from 1.5 million to 3.4 million [3][4] - AdMon games now account for approximately 19% of total revenues, while direct off-platform purchases represent nearly 4% [4] - The myVEGAS and myKONAMI games showed increases in Average Revenue Per Daily Active User (ARPDAU) and the percentage of paying users, indicating improved monetization [7] Market Data and Key Metrics Changes - The social casino category continues to face challenges, attributed to the rise of sweepstakes products, which have grown significantly and are impacting traditional social casino engagement [36] - The casual gaming portfolio, particularly Brainium, is performing strongly, contributing positively to overall revenue despite the challenges in social casino [10] Company Strategy and Development Direction - The company aims to strengthen its game portfolio, improve monetization trends, and expand its direct off-platform business [7] - A key strategic initiative includes the launch of the myVIP World Tournament of Slots, aimed at increasing player engagement and brand awareness [8] - The company is actively pursuing M&A opportunities, focusing on both large transformative acquisitions and smaller tuck-in acquisitions [9] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the business despite challenges in the social casino sector, highlighting significant growth in casual revenues and adjusted EBITDA margins [13] - The company revised its 2024 revenue guidance to between $285 million and $295 million, down from previous estimates, due to ongoing softness in the social casino category [12] Other Important Information - The company repurchased nearly 15% of its Class A common stock, maintaining a strong balance sheet with over $106 million in cash and no debt [4][12] - The myVIP program has expanded to include 131 rewards partners, offering over $160 million in retail rewards [8] Q&A Session Summary Question: Guidance and Industry Challenges - Management indicated that the revised guidance is primarily due to ongoing challenges in the social casino category and delays in scaling the Tetris Block Puzzle product [15][16] Question: playAWARDS Pipeline - Management noted that while there are opportunities in the B2B space for playAWARDS, the current focus is on stabilizing the core casino portfolio [17] Question: Cost Structure and Marketing Investments - Management acknowledged that the cost structure needs improvement and confirmed plans to increase marketing investments for myVEGAS due to its positive performance [25][35] Question: Tetris Engagement and Retention - Early retention metrics for the new Tetris product are strong, but the company is cautious about scaling marketing until user acquisition costs are more favorable [24] Question: Social Casino Category Weakness - Management attributed the weakness in the social casino category to the rise of sweepstakes products rather than iGaming [36] Question: M&A Activity - The company remains active in pursuing both transformative and tuck-in acquisitions, with a focus on the growing sweepstakes market [38]

Exhibit 99.1 PLAYSTUDIOS, INC. ANNOUNCES SECOND QUARTER RESULTS Second Quarter Revenue of $72.6 million and Net loss of $2.6 million Consolidated AEBITDA of $14.1 million Las Vegas, Nevada – August 5, 2024 – PLAYSTUDIOS, Inc. (NASDAQ: MYPS) ("PLAYSTUDIOS" or the "Company"), an awardwinning developer of free-to-play mobile and social games and the developer of the playAWARDS loyalty platform , today announced financial results for the second quarter ended June 30, 2024. Second Quarter Financial Highlights • ...

Investment thesis Company Overview notable progress in all these fronts, and I believe we're on our way to exiting the year at an improved run rate. Playstudios Revenue and Adjusted EBITDA $80 $60 $40 $20 $0 22Q1 23Q1 23Q2 23Q4 22Q2 22Q3 22Q4 23Q3 24Q1 Throughout 2023 management had shifted its focus away from revenue growth, towards driving higher profit margins. As shown above, this has led to revenue stagnating in recent quarters, while Adjusted EBITDA has significantly increased. In its latest quarter, ...

PLAYSTUDIOS, Inc. (MYPS) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change. A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years. Since a changing ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 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 orga ...

PLAYSTUDIOS, Inc. (NASDAQ:MYPS) Q1 2024 Earnings Conference Call May 6, 2024 5:00 PM ET Company Participants Samir Jain - Head of Investor Relations and Treasury Andrew Pascal - Chief Executive Officer Scott Peterson - Chief Financial Officer Jason Hahn - Head of Corporate and Business Development Katie Bolich - Head of Player Experience Conference Call Participants Ryan Sigdahl - Craig-Hallum Capital Group LLC Aaron Lee - Macquarie Group Limited David Pang - Stifel Financial Corp. Greg Gibas - Northland Se ...