PLAYSTUDIOS, Inc. reported its financial results for the three and nine months ended September 30, 2024, revealing a decline in revenue and an increase in net losses compared to the previous fiscal period. For the third quarter of 2024, net revenue was $71.2 million, down 6.1% from $75.9 million in Q3 2023. For the nine months ended September 30, 2024, net revenue totaled $221.6 million, a decrease of 5.2% from $233.8 million in the same period last year. The decline in revenue was primarily attributed to a $4.0 million drop in virtual currency revenue, linked to a decrease in Daily Paying Users (DPU).
Operating costs and expenses for the third quarter of 2024 were $76.0 million, down from $79.6 million in Q3 2023. However, the company reported a loss from operations of $4.8 million for the third quarter, compared to a loss of $3.7 million in the same quarter of the previous year. For the nine-month period, the operating loss increased to $10.4 million from $7.8 million in 2023. The net loss for Q3 2024 was $3.1 million, a significant decline from a net income of $3.8 million in Q3 2023. For the nine months, the net loss was $6.3 million, compared to a net income of $471,000 in the prior year.
Total assets decreased to $330.6 million as of September 30, 2024, from $366.3 million at the end of 2023. Cash and cash equivalents also fell to $105.2 million from $132.9 million during the same period. The accumulated deficit worsened to $(8.9 million) from $(2.6 million) at the end of 2023.
In terms of strategic developments, PLAYSTUDIOS acquired assets from Pixode Games Limited for $3.5 million in July 2024, with potential additional payments of up to $113.5 million based on performance milestones. The company also initiated a workforce reduction of approximately 30% as part of an internal reorganization plan aimed at enhancing efficiency and reducing operating expenses, which is expected to incur charges of $14.0 million to $16.0 million.
The company’s reportable segments, playGAMES and playAWARDS, showed mixed results. playGAMES net revenue for Q3 2024 was $71.2 million, down from $75.9 million in Q3 2023, while playAWARDS revenue remained flat at $3, down from $1 in the previous year. The retail value of purchases in playAWARDS increased by 3.4% for the quarter, indicating some growth in player engagement despite the overall revenue decline.
Overall, PLAYSTUDIOS is navigating a challenging market environment, with strategic acquisitions and cost-cutting measures in place to address declining revenues and increasing losses.
About PLAYSTUDIOS, Inc.
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