Playstudios (MYPS) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was $72.6M, down 6.7% year-over-year, with a net loss of $2.6M compared to a $0.8M loss in Q2 2023.

• Social casino portfolio continued to decline, but casual games, especially Tetris and Brainium, showed strong growth.

• Major share repurchase from Microsoft and acquisition of Pixode Games completed, expanding the casual portfolio.

• Daily active users (DAU) for playGAMES averaged 3.2M, down 11.8% year-over-year; ARPDAU rose 8.7% to $0.25.

• Cash and cash equivalents stood at $106.3M as of June 30, 2024, with no debt.

Financial highlights

• Q2 2024 net revenue: $72.6M (down 6.7% YoY); net loss: $2.6M; AEBITDA: $14.1M (margin 19.5%), down from $16.3M (20.9%) in Q2 2023.

• Operating expenses declined 3.9% YoY; net loss margin increased to 3.6% from 1.0% YoY.

• Operating cash flow for six months: $19.5M, down from $23.9M prior year.

• Share repurchases totaled $32.4M in the first half, including $24.6M from Microsoft.

• No debt; $81M revolver fully available.

Outlook and guidance

• 2024 revenue guidance revised to $285M–$295M (prior: $315M–$325M); AEBITDA guidance now $55M–$60M (prior: $65M–$70M).

• Weakness in social casino and delayed scaling of Tetris Block Puzzle cited as main reasons for guidance reduction.

• Management expects continued investment in game development, playAWARDS, and myVIP programs to drive engagement.

• Sufficient liquidity is anticipated for at least the next 12 months, with potential for further investments or acquisitions.