Playtika (PLTK) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was $620.8 million, down 1.5% year-over-year; net income was $39.3 million, up 3.7% year-over-year.

• Credit Adjusted EBITDA was $197.2 million, up 3.2% sequentially but down 4.1% year-over-year.

• Announced acquisition of SuperPlay for $700 million upfront plus up to $1.25 billion in earnouts, expected to close in Q4 2024.

• Direct-to-Consumer Platforms revenue grew 0.4% sequentially and 8.3% year-over-year.

• Board declared a $0.10 per share dividend, payable January 3, 2025, and authorized a $150 million stock repurchase program.

Financial highlights

• Q3 2024 revenue: $620.8 million; net income: $39.3 million; Credit Adjusted EBITDA margin: 31.8%.

• DTC platforms revenue reached $174.4 million, up 8.3% year-over-year.

• Cash, cash equivalents, and short-term investments totaled $1.2 billion at quarter end.

• Net income margin was 6.3% for Q3 2024, up from 6.0% in Q3 2023.

• Cost of revenue decreased 3.3% year-over-year.

Outlook and guidance

• Full-year 2024 revenue guidance revised to $2.505–$2.52 billion.

• Credit Adjusted EBITDA guidance raised to $755–$765 million.

• Capital expenditure guidance lowered to $90 million.

• Guidance excludes impact of pending SuperPlay acquisition.

• Management expects sufficient liquidity for operations and capital expenditures over the next 12 months.