PLAYSTUDIOS, Inc. (MYPS) Bundle
A Brief History of H3
The company H3 has undergone significant transformations and milestones throughout its history, particularly leading into 2024. Established with a focus on digital entertainment, H3 has expanded its portfolio and market reach, adapting to changing consumer preferences and technological advancements.
Financial Performance Overview
As of September 30, 2024, H3 reported a net revenue of $71.229 million, down from $75.858 million in the same period in 2023, marking a decrease of 6.1% year-over-year. For the nine months ended September 30, 2024, total net revenue was $221.647 million, compared to $233.774 million in 2023, reflecting a 5.2% decline.
| Financial Metrics | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Net Revenue | $71.229 million | $75.858 million | $(4.629 million) | (6.1%) |
| Net Revenue (Nine Months) | $221.647 million | $233.774 million | $(12.127 million) | (5.2%) |
Segment Revenue Breakdown
The company’s revenue is primarily generated from its playGAMES and playAWARDS segments. For the three months ended September 30, 2024, the breakdown is as follows:
| Segment | Q3 2024 Revenue | Q3 2023 Revenue | Change ($) | Change (%) |
|---|---|---|---|---|
| playGAMES | $71.226 million | $75.857 million | $(4.631 million) | (6.1%) |
| playAWARDS | $3 million | $1 million | $2 million | 200.0% |
Operating Expenses and Losses
Total operating expenses for the three months ended September 30, 2024, were $76.007 million, down from $79.579 million in 2023, yielding a decrease of 4.5%. The operating loss for Q3 2024 was $(4.778 million) compared to $(3.721 million) in Q3 2023, marking an increase in losses of 28.4%.
Cash Flow and Liquidity
As of September 30, 2024, H3 had cash and cash equivalents of $105.2 million and restricted cash of $0.6 million. The company generated $34.124 million from operating activities during the nine months ended September 30, 2024, compared to $36.396 million in 2023.
| Cash Flow Summary | Q3 2024 | Q3 2023 |
|---|---|---|
| Net cash provided by operating activities | $34.124 million | $36.396 million |
| Net cash used in investing activities | $(22.102 million) | $(21.855 million) |
| Net cash used in financing activities | $(38.623 million) | $(17.767 million) |
Stock Performance
As of late 2024, H3's stock has experienced fluctuations, reflective of broader market trends and internal performance metrics. The company's net loss attributable to common stockholders for Q3 2024 was $(3.097 million), translating to a net loss per share of $(0.02).
Future Outlook
H3 aims to leverage its existing resources while exploring new growth opportunities, including potential acquisitions and innovations within its gaming segments. The company remains focused on enhancing user engagement and expanding its market footprint as it navigates a competitive landscape.
A Who Owns PLAYSTUDIOS, Inc. (MYPS)
Major Shareholders
As of September 30, 2024, the ownership structure of PLAYSTUDIOS, Inc. (MYPS) is characterized by significant holdings from institutional and individual investors. Below is a breakdown of the major shareholders:
| Shareholder | Type | Number of Shares Owned | Percentage Ownership |
|---|---|---|---|
| MGM Resorts International | Institutional | 16,600,000 | 16.6% |
| Microsoft Corporation | Institutional | 0 | 0% |
| Other Institutional Investors | Institutional | Approximately 50,000,000 | 50% |
| Public Float | Individual | Approximately 60,000,000 | 60% |
Financial Overview
PLAYSTUDIOS reported a net revenue of $71.2 million for the three months ended September 30, 2024, a decrease of 6.1% compared to $75.9 million for the same period in 2023. For the nine months ended September 30, 2024, net revenue stood at $221.6 million, down 3.5% from $229.6 million in the prior year.
Stock Performance
The stock performance of MYPS has been volatile, with significant trading activity observed in the recent quarters. The share price as of September 30, 2024, was approximately $2.11, following a repurchase of 11.7 million shares held by Microsoft at a total cost of $24.6 million.
Recent Developments
In June 2024, PLAYSTUDIOS repurchased shares from Microsoft, enhancing its ownership structure. The total number of shares outstanding as of September 30, 2024, was approximately 100 million shares, reflecting a decrease in public float due to the share repurchase program.
Operating Metrics
Key performance indicators for PLAYSTUDIOS for the three months ended September 30, 2024, include:
| Metric | Value |
|---|---|
| Average Daily Active Users (DAU) | 2,961 |
| Average Monthly Active Users (MAU) | 12,658 |
| Average Daily Payer Conversion Rate | 0.8% |
| Revenue per Daily Active User (ARPDau) | $0.26 |
Summary of Financial Data
The following table summarizes key financial data for PLAYSTUDIOS as of September 30, 2024:
| Financial Metric | Value (in millions) |
|---|---|
| Net Revenue | $71.2 |
| Operating Loss | $(4.8) |
| Net Loss | $(3.1) |
| Cash and Cash Equivalents | $105.2 |
| Total Assets | $330.6 |
| Total Liabilities | $65.4 |
| Stockholders' Equity | $265.2 |
PLAYSTUDIOS, Inc. (MYPS) Mission Statement
Mission Statement Overview
PLAYSTUDIOS, Inc. aims to create engaging and rewarding experiences for players through its innovative gaming platforms. The mission focuses on delivering high-quality games that incorporate real-world rewards, fostering player loyalty and engagement.
Core Values
- Innovation: Commitment to developing cutting-edge gaming technology and unique gameplay experiences.
- Community: Building a strong player community through interactive and social gaming experiences.
- Integrity: Maintaining ethical business practices and transparency with stakeholders.
- Player Focus: Prioritizing player satisfaction and engagement in all aspects of game development.
Business Segments
PLAYSTUDIOS operates primarily through two business segments: playGAMES and playAWARDS. Each segment contributes to the overall mission by enhancing player experiences and offering unique rewards.
| Segment | 2024 Q3 AEBITDA ($ millions) | 2023 Q3 AEBITDA ($ millions) | Change ($ millions) | Change (%) |
|---|---|---|---|---|
| playGAMES | 23.2 | 21.6 | 1.6 | 7.4% |
| playAWARDS | (4.0) | (4.2) | 0.2 | 4.5% |
| Consolidated AEBITDA | 14.6 | 13.5 | 1.1 | 8.1% |
Financial Performance
As of September 30, 2024, PLAYSTUDIOS reported a consolidated net revenue of $71.2 million, a decrease of 6.1% from $75.9 million in the prior year. The financial results highlight the company's focus on sustainable growth while adapting to market trends.
| Metric | 2024 Q3 ($ thousands) | 2023 Q3 ($ thousands) | Change ($ thousands) | Change (%) |
|---|---|---|---|---|
| Net Revenue | 71,229 | 75,858 | (4,629) | (6.1%) |
| Operating Loss | (4,778) | (3,721) | (1,057) | 28.4% |
| Net Loss | (3,097) | 3,800 | (6,897) | (181.5%) |
Growth Strategies
PLAYSTUDIOS continues to invest in technology and strategic partnerships to enhance its gaming platforms. The acquisition of Pixode Games for $3.5 million, with potential contingent payments up to $113.5 million, exemplifies the company's strategy to diversify its game offerings and expand its market reach.
Key Performance Indicators (KPIs)
The following KPIs are crucial in assessing the company's performance and alignment with its mission:
| KPI | 2024 Q3 | 2023 Q3 | Change |
|---|---|---|---|
| Average Daily Users (DAU) | 2,961 | 3,520 | (559) |
| Average Monthly Users (MAU) | 12,658 | 13,712 | (1,054) |
| Average Daily Paying Users (DPU) | 23 | 26 | (3) |
How PLAYSTUDIOS, Inc. (MYPS) Works
Company Overview
PLAYSTUDIOS, Inc. operates primarily in the mobile gaming sector, focusing on social casino games. The company is known for its unique loyalty program that allows players to earn real-world rewards through gameplay.
Financial Performance
As of September 30, 2024, PLAYSTUDIOS reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Net Revenue | $71,229,000 | $75,858,000 | $(4,629,000) | (6.1)% |
| Operating Expenses | $76,007,000 | $79,579,000 | $(3,572,000) | (4.5)% |
| Operating Loss | $(4,778,000) | $(3,721,000) | $(1,057,000) | 28.4% |
| Net Loss | $(3,097,000) | $3,800,000 | $(6,897,000) | (181.5)% |
| Net Loss Margin | (4.3)% | 5.0% | (9.3) pp | (186.0)% |
Segment Performance
PLAYSTUDIOS operates primarily through two segments: playGAMES and playAWARDS. The following table summarizes their performance:
| Segment | AEBITDA (Q3 2024) | AEBITDA (Q3 2023) | Change ($) | Change (%) |
|---|---|---|---|---|
| playGAMES | $23,233,000 | $21,640,000 | $1,593,000 | 7.4% |
| playAWARDS | $(3,991,000) | $(4,180,000) | $189,000 | (4.5)% |
| Corporate and Other | $(4,619,000) | $(3,935,000) | $(684,000) | 17.4% |
| Consolidated AEBITDA | $14,623,000 | $13,525,000 | $1,098,000 | 8.1% |
Revenue Breakdown
The company's revenue sources are categorized as follows:
| Source | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Virtual Currency | $57,564,000 | $61,558,000 | $(3,994,000) | (6.5)% |
| Advertising | $13,613,000 | $14,190,000 | $(577,000) | (4.1)% |
| Other Revenue | $49,000 | $109,000 | $(60,000) | (55.0)% |
Cash Flow Analysis
For the nine months ended September 30, 2024, the cash flow summary is as follows:
| Cash Flow Category | 2024 | 2023 |
|---|---|---|
| Net Cash Provided by Operating Activities | $34,124,000 | $36,396,000 |
| Net Cash Used in Investing Activities | $(22,102,000) | $(21,855,000) |
| Net Cash Used in Financing Activities | $(38,623,000) | $(17,767,000) |
| Decrease in Cash and Cash Equivalents | $(27,119,000) | $(4,193,000) |
Balance Sheet Overview
As of September 30, 2024, PLAYSTUDIOS reported the following balance sheet items:
| Item | Amount ($) |
|---|---|
| Cash and Cash Equivalents | $105,170,000 |
| Receivables, Net | $28,775,000 |
| Total Assets | $330,550,000 |
| Total Liabilities | $65,369,000 |
| Total Stockholders' Equity | $265,181,000 |
Recent Acquisitions
On July 1, 2024, PLAYSTUDIOS acquired Pixode Games Limited for a total consideration of $6.755 million, including cash and contingent consideration based on future revenue milestones.
Market Position and Strategy
PLAYSTUDIOS continues to focus on enhancing its product offerings and expanding its market reach through strategic partnerships and acquisitions, such as the recent integration of Pixode Games into its portfolio.
How PLAYSTUDIOS, Inc. (MYPS) Makes Money
Revenue Streams
PLAYSTUDIOS, Inc. generates revenue primarily through two segments: playGAMES and playAWARDS.
playGAMES Revenue
The playGAMES division is the largest contributor to revenue, primarily through:
- In-game Virtual Currency: Revenue from virtual currency sales was $57.6 million for the three months ended September 30, 2024, down from $61.6 million in the same period in 2023, reflecting a 6.5% decrease. For the nine months ended September 30, 2024, it generated $174.3 million, a decrease from $187.5 million in 2023, representing a 7.1% decline.
- Advertising Revenue: Advertising generated $13.6 million in Q3 2024, slightly down from $14.2 million in Q3 2023. However, for the nine-month period, it increased to $47.1 million from $41.6 million, an increase of 13.1%.
| Metric | Q3 2024 | Q3 2023 | Change (%) | 9M 2024 | 9M 2023 | Change (%) |
|---|---|---|---|---|---|---|
| Virtual Currency Revenue | $57.6 million | $61.6 million | (6.5) | $174.3 million | $187.5 million | (7.1) |
| Advertising Revenue | $13.6 million | $14.2 million | (4.2) | $47.1 million | $41.6 million | 13.1 |
playAWARDS Revenue
The playAWARDS platform, which focuses on loyalty rewards, saw minimal revenue generation:
- Net Revenue: In Q3 2024, playAWARDS generated $3,000, a significant increase from $1,000 in Q3 2023. For the nine months ended September 30, 2024, the revenue was $5,000, down from $4.2 million in 2023, a decrease of 99.9%.
- Available Rewards: The number of available rewards decreased from 598 units in Q3 2023 to 547 units in Q3 2024, an 8.5% decline.
| Metric | Q3 2024 | Q3 2023 | Change (%) | 9M 2024 | 9M 2023 | Change (%) |
|---|---|---|---|---|---|---|
| Net Revenue | $3,000 | $1,000 | 200.0 | $5,000 | $4.2 million | (99.9) |
| Available Rewards (units) | 547 | 598 | (8.5) | 543 | 578 | (6.1) |
Overall Financial Performance
For the three months ended September 30, 2024, PLAYSTUDIOS reported total net revenue of $71.2 million, a decrease of $4.6 million or 6.1% compared to $75.9 million in the same quarter of 2023. For the nine months ended September 30, 2024, the total net revenue was $221.6 million, down $8 million or 3.5% from $229.6 million in 2023.
Operating Expenses
Operating expenses for Q3 2024 totaled $76 million, a decrease of $3.6 million or 4.5% compared to $79.6 million in Q3 2023. Major components included:
- Cost of Revenue: $17.8 million in Q3 2024 compared to $19.9 million in Q3 2023.
- Selling and Marketing: $15.1 million in Q3 2024 down from $18.8 million in Q3 2023.
- Research and Development: $16.7 million in Q3 2024 compared to $17.4 million in Q3 2023.
- General and Administrative: Increased to $11.6 million in Q3 2024 from $10.7 million in Q3 2023.
| Expense Type | Q3 2024 | Q3 2023 | Change ($ million) |
|---|---|---|---|
| Cost of Revenue | $17.8 million | $19.9 million | ($2.0) |
| Selling and Marketing | $15.1 million | $18.8 million | ($3.7) |
| Research and Development | $16.7 million | $17.4 million | ($0.7) |
| General and Administrative | $11.6 million | $10.7 million | $0.9 |
Net Loss
For Q3 2024, the company reported a net loss of $3.1 million, compared to a net income of $3.8 million in Q3 2023. The net loss for the nine months ended September 30, 2024, was $6.3 million, compared to a net income of $471,000 in the same period in 2023.
Conclusion
Through its dual revenue streams from playGAMES and playAWARDS, PLAYSTUDIOS, Inc. continues to navigate a challenging market while adjusting its operational strategies to enhance profitability and address declining revenues.
PLAYSTUDIOS, Inc. (MYPS) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Updated on 16 Nov 2024
Resources:
- PLAYSTUDIOS, Inc. (MYPS) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of PLAYSTUDIOS, Inc. (MYPS)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View PLAYSTUDIOS, Inc. (MYPS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.