PLAYSTUDIOS, Inc. reported a decline in financial performance for the fiscal year ending December 31, 2024, with net revenue of $289.4 million, a decrease of 6.9% from $310.9 million in 2023. The company's operating loss widened significantly to $32.9 million compared to a loss of $10.5 million in the previous year. The net loss also increased to $28.7 million, up 47.9% from $19.4 million in 2023. The decrease in revenue was primarily attributed to a $19.1 million drop in virtual currency sales, which was partially offset by a 3.4% increase in advertising revenue.
In terms of operational metrics, PLAYSTUDIOS experienced a reduction in its player base, with average daily active users (DAU) falling to 3.1 million from 3.5 million in the prior year. The average monthly active users (MAU) also decreased to 13.1 million from 13.5 million. The average daily payer conversion rate remained stable at 0.8%, while the average daily revenue per DAU (ARPDAU) increased slightly to $0.26 from $0.24. The company’s playAWARDS segment saw a dramatic decline in revenue, dropping 98.5% to $62, primarily due to the non-renewal of a licensing agreement.
Strategically, PLAYSTUDIOS has been active in acquisitions, including the purchase of Pixode Games Limited in July 2024 for $3.5 million, with potential contingent payments of up to $113.5 million based on future performance. The company has also focused on enhancing its loyalty program, playAWARDS, which integrates real-world rewards for players, although the effectiveness of this program has been challenged by the recent decline in player engagement.
As of December 31, 2024, PLAYSTUDIOS had cash and cash equivalents totaling $109.2 million, down from $132.9 million a year earlier. The company has indicated that it expects to continue investing in game development and marketing, which may require additional capital. The company’s credit agreement provides for a revolving credit facility of $75 million, which remains untapped as of the end of the reporting period. Looking ahead, PLAYSTUDIOS aims to optimize its existing game portfolio while exploring new game launches and potential acquisitions to drive growth and enhance player engagement.
About PLAYSTUDIOS, Inc.
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