First Quarter Revenue of $62.7 million and Net
loss of $2.9 million
Consolidated AEBITDA of $12.5 million
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, Chairman and Chief Executive Officer of
PLAYSTUDIOS, commented, “We are off to a focused and productive
start in 2025 as we work through a broader transition across our
business and industry. While market conditions remain challenging
putting continued pressure on our operating performance, we made
meaningful progress this quarter on several key initiatives,
including advancing our sweepstakes capabilities, scaling our
direct-to-consumer channel, evolving our playAWARDS ecosystem, and
developing our new casual title, Tetris Block Party. At the same
time, our Reinvention plan is helping drive greater efficiency and
focus.”
First Quarter Financial Highlights
- Revenue was $62.7 million during the first quarter of
2025, compared to $77.8 million during the first quarter of
2024.
- Net loss was $2.9 million during the first quarter of
2025, representing a net loss margin of 4.6%, compared to net loss
of $0.6 million during the first quarter of 2024, representing a
net loss margin of 0.7%.
- Consolidated AEBITDA, a non-GAAP financial measure
defined below, was $12.5 million during the first quarter of 2025,
compared to $15.3 million during the first quarter of 2024.
- Consolidated AEBITDA Margin was 19.9% in the quarter, a
20 basis point increase versus the first quarter of 2024 and a 150
basis point increase versus the previous quarter.
- KPIs playGAMES. During the first quarter of 2025,
PLAYSTUDIOS had Average DAU and Average MAU of 2.6 million and 11.4
million, respectively. ARPDAU was $0.26.
- Direct to Consumer revenue was $5.0 million during the
first quarter of 2025, compared to $2.3 million during the first
quarter of 2024, representing an increase of 113.9%.
- KPIs playAWARDS. During the first quarter of 2025,
players purchased 280,652 rewards with a retail value of $17
million.
- Liquidity. As of March 31, 2025, cash and cash
equivalents on the balance sheet was $107.1 million. PLAYSTUDIOS’
$81 million revolving credit facility remains undrawn.
- Shares outstanding. As of March 31, 2025, the Company
had 125.5 million shares outstanding.
Recent Business Highlights
- Continued development of sweepstakes promotional capabilities,
expected to launch externally in limited release in Q2 2025 and
scale through the back half of the year.
- Expanded direct-to-consumer monetization initiatives,
contributing to margin improvement.
- Progressed development of Tetris Block Party, targeting launch
in Q4 2025.
- Strengthened playAWARDS platform with the addition of new
premium partners and announced the second annual myVIP World
Tournament of Slots in partnership with Atlantis Paradise
Island.
- Reinvention plan progressing toward targeted $25 to $30 million
in annualized cost savings.
- Repurchased an aggregate of 0.9 million shares of our Class A
common stock at an average price of $1.71 per share, in the
quarter.
The Company is maintaining full year 2025 guidance of net
revenue in the range of $250 to $270 million and Consolidated
AEBITDA in the range of $45 to $55 million.
We have not provided the most directly comparable GAAP measure
for our Consolidated AEBITDA outlook because certain items that are
part of the projected non-GAAP financial measure are outside of our
control or cannot be reasonably estimated without unreasonable
effort.
Conference Call Details
PLAYSTUDIOS will host a conference call at 5:00 p.m. Eastern
Time today, which will include a brief discussion of the results
followed by a question and answer session.
The call will be accessible via the Internet through
https://ir.playstudios.com or by calling (866) 405-1203 for
domestic callers and (201) 689-8432 for international callers.
A replay of the call will be archived at
https://ir.playstudios.com.
About PLAYSTUDIOS, Inc.
PLAYSTUDIOS (Nasdaq: MYPS), creator of the groundbreaking
playAWARDS loyalty platform is a publisher and developer of
award-winning mobile games, including the iconic Tetris® mobile
app, Pop! Slots, myVEGAS Slots, myVEGAS Blackjack, my KONAMI Slots,
myVEGAS Bingo, MGM Slots Live, Solitaire, Spider Solitaire and
Sudoku. The playAWARDS loyalty platform enables players to earn
real-world rewards from a global collection of hospitality,
entertainment, and leisure brands. playAWARDS partners include MGM
Resorts International, Wolfgang Puck, Norwegian Cruise Line,
Resorts World, IHG, Bowlero, Gray Line Tours, and Hippodrome Casino
among others. Founded by a team of veteran gaming, hospitality, and
technology entrepreneurs, PLAYSTUDIOS apps combine the best
elements of popular casual games with compelling real-world
benefits. To learn more about PLAYSTUDIOS, visit
playstudios.com.
Performance Indicators
We manage our business by regularly reviewing several key
operating metrics to track historical performance, identify trends
in player activity, and set strategic goals for the future. Our key
performance metrics are impacted by several factors that could
cause them to fluctuate on a quarterly basis, such as platform
providers’ policies, seasonality, player connectivity, and the
addition of new content to games. We believe these measures are
useful to investors for the same reasons. The key performance
indicators may differ from similarly titled measures presented by
other companies. For more information on our key performance
indicators, please refer to the definitions below and the
“Supplemental Data—playGAMES Key Performance Indicators” and
“Supplemental Data—playAWARDS Key Performance Indicators” sections
of this press release.
Daily Active Users (“DAU”): DAU is
defined as the number of individuals who played a game on a
particular day. We track DAU by the player ID, which is assigned
for each game installed by an individual. As such, an individual
who plays two different PLAYSTUDIOS games on the same day is
counted as two DAU while an individual who plays the same
PLAYSTUDIOS game on two different devices is counted as one DAU.
Brainium tracks DAU by app instance ID, which is assigned to each
installation of a game on a particular device. As such, an
individual who plays two different Brainium games on the same day
is counted as two DAU while an individual who plays the same game
on two different devices is counted as two DAU. The term “Average
DAU” is defined as the average of the DAU, determined as described
above, for each day during the period presented. We use DAU and
Average DAU as measures of audience engagement to help us
understand the size of the active player base engaged with our
games on a daily basis.
Monthly Active Users (“MAU”): MAU
is defined as the number of individuals who played a game in a
particular month. As with DAU, an individual who plays two
different PLAYSTUDIOS games in the same month is counted as two MAU
while an individual who plays the same game on two different
devices is counted as one MAU, and an individual who plays two
different Brainium games on the same day is counted as two MAU
while an individual who plays the same game on two different
devices is counted as two MAU. The term “Average MAU” is defined as
the average of the MAU, determined as described above, for each
calendar month during the period presented. We use MAU and Average
MAU as measures of audience engagement to help us understand the
size of the active player base engaged with our games on a monthly
basis.
Daily Paying Users (“DPU”): DPU is
defined as the number of individuals who made a purchase in a
mobile game during a particular day. As with DAU and MAU, we track
DPU based on account activity. As such, an individual who makes a
purchase on two different games in a particular day is counted as
two DPU while an individual who makes purchases in the same game on
two different devices is counted as one DPU. The term “Average DPU”
is defined as the average of the DPU, determined as described
above, for each day during the period presented. We use DPU and
Average DPU to help us understand the size of our active player
base that makes in-game purchases. This focus directs our strategic
goals in setting player acquisition and pricing strategy.
Daily Payer Conversion: Daily Payer
Conversion is defined as DPU as a percentage of DAU on a particular
day. Daily Player Conversion is also sometimes referred to as
“Percentage of Paying Users” or “PPU”. The term “Average Daily
Payer Conversion” is defined as the Average DPU divided by the
Average DAU for a given period. We use Daily Payer Conversion and
Average Daily Payer Conversion to help us understand the
monetization of our active players.
Average Daily Revenue Per DAU
(“ARPDAU”): ARPDAU is defined for a given period as the
average daily revenue per Average DAU, and is calculated as game
and advertising revenue for the period, divided by the number of
days in the period, divided by the Average DAU during the period.
We use ARPDAU as a measure of overall monetization of our active
players.
playAWARDS Platform Metrics
Available Rewards: Available
Rewards is defined as the monthly average number of unique rewards
available in our applications’ rewards stores. A reward appearing
in more than one application’s reward store is counted only once. A
reward is counted only once irrespective of the inventory available
through that reward. For example, one reward for a free night in a
hotel room with ten rooms available for such free night is counted
as one reward. Available Rewards only include real-world partner
rewards and exclude PLAYSTUDIOS digital rewards. We use Available
Rewards as a measure of the value and potential impact of the
program for an interested player. It is assumed that the greater
the variety and breadth of rewards offered, the more likely players
will be to ascribe value to the program.
Purchases: Purchases is defined as
the total number of rewards purchased for the period identified in
which a player exchanges loyalty points for a reward. Purchases are
net of refunds. Purchases only include purchases of real-world
partner rewards and exclude any PLAYSTUDIOS digital rewards.
Purchases are redeemed by the player directly with the rewards
partner within the specified terms and conditions of the reward.
The Company does not receive any compensation or revenue from
Purchases. We use Purchases as a measure of audience interest and
engagement with our playAWARDS platform.
Retail Value of Purchases: Retail
Value of Purchases is defined as the cumulative retail value of all
rewards listed as Purchases for the period identified. The retail
value of each reward listed as Purchases is the retail value as
determined by the partner upon creation of the reward. In the case
where the retail value of a reward adjusts depending on time of
redemption, the average retail value is used. Retail Value of
Purchases only include the retail value of real-world partner
rewards and exclude the cost of any PLAYSTUDIOS branded
merchandise. We use Retail Value of Purchases to help us understand
the real-world value of the rewards that are purchased by our
players.
Retail Value of Daily Rewards
Inventory: Retail Value of Daily Rewards Inventory is
defined as the cumulative retail value of all rewards listed as
available for the period divided by the number days in the period.
For rewards with unlimited inventory, the maximum of number of
rewards used in the calculation is 50. The retail value of each
reward listed as available is the retail value as specified by the
rewards partner upon creation of the reward. Retail Value of Daily
Rewards Inventory only includes the retail value of real-world
partner rewards and excludes the cost of any PLAYSTUDIOS branded
merchandise. We use Retail Value of Daily Rewards Inventory to help
us understand the real-world value of the rewards within our
playAWARDS platform.
Non-GAAP Financial Measures
To provide investors with information in addition to results as
determined by GAAP, the Company discloses Consolidated Adjusted
Earnings Before Interest Taxes Depreciation and Amortization
(“Consolidated AEBITDA”) as a non-GAAP measure that management
believes provides useful information to investors. This measure is
not a financial measure calculated in accordance with GAAP and
should not be considered as a substitute for revenue, net income or
any other operating performance measure calculated in accordance
with GAAP.
We define Consolidated AEBITDA as net income (loss) before
interest, income taxes, depreciation and amortization,
restructuring and related costs (consisting primarily of severance
and other restructuring related costs), stock-based compensation
expense, and other income and expense items (including special
infrequent items, foreign currency gains and losses, and other
non-cash items). We also present Consolidated AEBITDA Margin, a
non-GAAP measure, which we calculate as Consolidated AEBITDA as a
percentage of net revenue.
We believe that the presentation of Consolidated AEBITDA
provides useful information to investors regarding the Company’s
results of operations because the measure assists both investors
and management in analyzing and benchmarking the performance and
value of our business. Consolidated AEBITDA provides an indicator
of performance that is not affected by fluctuations in certain
costs or other items. Accordingly, management believes that this
measure is useful for comparing general operating performance from
period to period, and management relies on this measure for
planning and forecasting of future periods. Additionally, this
measure allows management to compare results with those of other
companies that have different financing and capital structures.
However, other companies may define Consolidated AEBITDA
differently, and as a result, our measure of Consolidated AEBITDA
may not be directly comparable to that of other companies. For
further information regarding these non-GAAP measures, including
the reconciliation of these non-GAAP financial measures to their
most directly comparable GAAP financial measures, please refer to
the “Reconciliation of Net Loss to Consolidated AEBITDA” section of
this press release.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995, including statements regarding our future financial and
operating performance (including statements regarding outlook or
guidance), our liquidity and capital resources, the development and
release plans of our games, the impact of business restructuring
and cost control initiatives including estimated amounts and timing
of anticipated cost reductions, and our mergers and acquisition
strategy, all of which involve risks and uncertainties. Actual
results may differ materially from the results predicted, and
reported results should not be considered as an indication of
future performance. Forward-looking statements include all
statements that are not historical facts and can be identified by
terms such as “may,” “might,” “will,” “should,” “expects,” “plans,”
“projects,” “anticipates,” “intends,” “believes,” “goal,” “work
towards,” “estimates,” “predicts,” “potential” or “continue,” the
negative of these terms and other comparable terminology that
conveys uncertainty of future events or outcomes. These
forward-looking statements involve known and unknown risks,
uncertainties, assumptions and other factors that may cause actual
results to differ materially from statements made in this press
release, including our ability to develop and publish our games;
risks related to defects, errors, or vulnerabilities in our games
and IT infrastructure; our ability to attract new, and retain
existing, players of our games; the failure to timely develop and
achieve market acceptance of new games and maintain the popularity
of our existing games; rapidly evolving technological developments
in the gaming market; competition in the industry in which we
operate; our financial performance; our ability to execute merger
and acquisition transactions; legal and regulatory developments;
risks associated with our international operations; geopolitical
events and conditions; risks associated with business restructuring
efforts, including the potential impact of restructuring activities
on our business operations and financial performance; and general
market, political, economic and business conditions. The
achievement or success of the matters covered by such
forward-looking statements involves significant risks,
uncertainties and assumptions, including, but not limited to, the
risks and uncertainties discussed in our filings with the
Securities and Exchange Commission. All information provided in
this release is based on information available to us as of the date
of this press release and any forward-looking statements contained
herein are based on assumptions that we believe are reasonable as
of this date. Undue reliance should not be placed on the
forward-looking statements in this press release, which are
inherently uncertain. We undertake no duty to update this
information unless required by law.
PLAYSTUDIOS, INC.
CONDENSED CONSOLIDATED
STATEMENT OF OPERATIONS
(Unaudited and in thousands,
except per share data)
Three Months Ended March
31,
2025
2024
Net revenue
$
62,709
$
77,828
Operating expenses:
Cost of revenue(1)
15,779
18,951
Selling and marketing
13,169
18,576
Research and development
13,674
18,021
General and administrative
11,861
11,779
Depreciation and amortization
9,632
11,566
Restructuring and related
1,335
638
Total operating costs and expenses
65,450
79,531
Loss from operations
(2,741
)
(1,703
)
Other income (expense), net:
Change in fair value of warrant
liabilities
101
(64
)
Interest income, net
906
1,420
Other loss, net
(798
)
(106
)
Total other income, net
209
1,250
Loss before income taxes
(2,532
)
(453
)
Income tax expense
(348
)
(114
)
Net loss
$
(2,880
)
$
(567
)
Net loss per share attributable to Class A
and Class B common stockholders:
Basic
$
(0.02
)
$
—
Diluted
$
(0.02
)
$
—
Weighted average shares of common stock
outstanding:
Basic
125,256
135,575
Diluted
125,256
135,575
(1)
Amounts exclude depreciation and
amortization.
PLAYSTUDIOS, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Unaudited and in thousands,
except par value amounts)
March 31,
2025
December 31,
2024
ASSETS
Current assets:
Cash and cash equivalents
$
107,097
$
109,179
Receivables, net
29,583
30,767
Prepaid expenses and other current
assets
8,769
7,156
Total current assets
145,449
147,102
Property and equipment, net
14,908
16,118
Operating lease right-of-use assets
8,737
9,703
Intangibles assets and internal-use
software, net
86,825
90,996
Goodwill
52,222
52,222
Deferred income taxes
3,343
3,399
Other long-term assets
2,291
3,415
Total non-current assets
168,326
175,853
Total assets
$
313,775
$
322,955
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable
3,749
1,518
Operating lease liabilities, current
3,199
3,405
Accrued and other current liabilities
33,437
44,495
Total current liabilities
40,385
49,418
Minimum guarantee liability
18,834
18,000
Contingent consideration
3,665
3,340
Deferred income taxes
531
381
Operating lease liability, non-current
5,828
6,659
Other long-term liabilities
450
442
Total non-current liabilities
29,308
28,822
Total liabilities
$
69,693
$
78,240
Stockholders’ equity:
Preferred stock, $0.0001 par value
(100,000 shares authorized, no shares issued and outstanding as of
March 31, 2025 and December 31, 2024)
—
—
Class A common stock, $0.0001 par value
(2,000,000 shares authorized, 129,407 and 127,734 shares issued,
and 109,048 and 108,287 shares outstanding as of March 31, 2025 and
December 31, 2024, respectively)
11
11
Class B common stock, $0.0001 par value
(25,000 shares authorized, and 16,457 and 16,457 shares issued and
outstanding as of March 31, 2025 and December 31, 2024,
respectively.
2
2
Additional paid-in capital
331,706
327,951
Accumulated deficit
(34,204
)
(31,324
)
Accumulated other comprehensive loss
(586
)
(632
)
Treasury stock, at cost, 20,360 and 19,450
shares at March 31, 2025 and December 31, 2024, respectively
(52,847
)
(51,293
)
Total stockholders’ equity
244,082
244,715
Total liabilities and stockholders’
equity
$
313,775
$
322,955
PLAYSTUDIOS, INC.
RECONCILIATION OF NET LOSS TO
CONSOLIDATED AEBITDA
(Unaudited and in thousands,
except percentages)
The following table sets forth the
reconciliation of net loss and net loss margin to Consolidated
AEBITDA and Consolidated AEBITDA Margin, respectively, which we
calculate as Consolidated AEBITDA as a percentage of net revenue.
Net loss and net loss margin are the most directly comparable GAAP
measures.
Three Months Ended March
31,
2025
2024
Revenue
$
62,709
$
77,828
Net loss
$
(2,880
)
$
(567
)
Net loss margin
(4.6
)%
(0.7
)%
Adjustments:
Depreciation & amortization
9,632
11,566
Income tax expense
348
114
Stock-based compensation expense
4,258
4,794
Change in fair value of warrant
liability
(101
)
64
Change in fair value of contingent
consideration
325
—
Restructuring and related(1)
1,335
638
Other, net(2)
(430
)
(1,295
)
Consolidated AEBITDA
12,487
15,314
Consolidated AEBITDA Margin
19.9
%
19.7
%
(1)
Amounts reported during the three months
ended March 31, 2024 relate to internal reorganization costs,
including severance-related costs, and fees related to evaluating
various merger, acquisition and restructuring opportunities.
Amounts reported during the three months ended March 31, 2025
relate to internal reorganization costs, including
severance-related costs, fees related to evaluating various merger
and acquisition opportunities, and non-recurring legal costs.
(2)
Amounts reported in “Other, net” include
interest expense, interest income, gains/losses from equity
investments, foreign currency gains/losses, and non-cash
gains/losses on the disposal of assets.
PLAYSTUDIOS, INC.
SUPPLEMENTAL DATA - SEGMENT
INFORMATION
(Unaudited and in thousands,
except percentages)
The following table sets forth the
financial data for our reportable segments.
Three Months Ended March 31,
2025
Three Months Ended March 31,
2024
playGAMES
playAWARDS
Total
playGAMES
playAWARDS
Total
Net revenue
Virtual currency
$
50,692
$
148
$
50,840
$
60,247
$
—
$
60,247
Advertising
11,863
—
11,863
17,442
—
17,442
Other
—
6
6
139
—
139
62,555
154
62,709
77,828
—
77,828
Segment expenses
Cost of sales
15,763
16
15,779
18,951
—
18,951
Payroll & related
9,175
1,567
10,742
10,123
3,051
13,174
User acquisition
10,157
—
10,157
14,754
—
14,754
Other
9,151
860
10,011
10,549
571
11,120
44,246
2,443
46,689
54,377
3,622
57,999
Reportable segment AEBITDA
18,309
(2,289
)
16,020
23,451
(3,622
)
19,829
Other operating expense
Corporate and other
3,533
4,515
Restructuring expenses
1,335
638
Other reconciling items
3
19
Stock based compensation
4,258
$
4,794
Depreciation and amortization
9,632
11,566
18,761
21,532
Non-operating income (expense)
Change in fair value of warrant
liabilities
101
(64
)
Interest income, net
906
1,420
Other expense
$
(798
)
$
(106
)
209
1,250
Loss before income taxes
(2,532
)
(453
)
Income tax expense
$
(348
)
$
(114
)
Net loss
$
(2,880
)
$
(567
)
PLAYSTUDIOS, INC.
SUPPLEMENTAL DATA - NET
REVENUE
(Unaudited and in thousands,
except percentages)
The following tables summarizes the
Company’s virtual currency revenue disaggregated by type and by
platform:
Three Months Ended March
31,
2025
2024
Change
% Change
Net revenue
Virtual currency
50,840
60,247
(9,407
)
(15.6
%)
Advertising
11,863
17,442
(5,579
)
(32.0
%)
Other revenue
6
139
(133
)
(95.7
%)
Total net revenue
62,709
77,828
Virtual currency revenue
Third party platforms
45,870
57,923
(12,053
)
(20.8
%)
Direct-to-consumer (DTC) platforms
4,970
2,324
2,646
113.9
%
Total virtual currency revenue
50,840
60,247
DTC revenue as a percentage of virtual
currency revenue
9.8
%
3.9
%
5.9
%
151.3
%
PLAYSTUDIOS, INC.
SUPPLEMENTAL DATA – PLAYGAMES
KEY PERFORMANCE INDICATORS
(Unaudited and in thousands,
except percentages and ARPDAU)
Three Months Ended March
31,
2025
2024
Change
% Change
Average DAU
2,632
3,495
(863
)
(24.7
)%
Average MAU
11,422
14,752
(3,330
)
(22.6
)%
Average DPU
21
27
(6
)
(22.2
)%
Average Daily Payer Conversion
0.8
%
0.8
%
— pp
—
%
ARPDAU (in dollars)
$
0.26
$
0.24
$
0.02
8.3
%
pp = percentage points
PLAYSTUDIOS, INC.
SUPPLEMENTAL DATA – PLAYAWARDS
KEY PERFORMANCE INDICATORS
(Unaudited and in thousands,
except for available rewards)
Three Months Ended March
31,
2025
2024
Change
% Change
Available Rewards (in units)
367
521
(154
)
(29.6
%)
Purchases (in units)
281
501
(220
)
(44.0
%)
Retail Value of Purchases
$
16,984
$
40,591
$
(23,607
)
(58.2
%)
Retail Value of Daily Rewards
Inventory
$
2,005
$
1,901
$
104
5.5
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250505266747/en/
PLAYSTUDIOS CONTACTS
Investor Relations Jason Hahn
jason.hahn@playstudios.com
Media Relations BerlinRosen media@playstudios.com
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