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PLAYSTUDIOS (MYPS)
NASDAQ:MYPS
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PLAYSTUDIOS
(NASDAQ:MYPS)
59Neutral
Positive Factors
Financial Stability
The company is actively buying back stock and maintains a strong balance sheet with $107M in cash, no debt, and $20M in free cash flow generated.
Monetization Strategy
PLAYSTUDIOS continues to benefit from early traction in direct-to-consumer monetization and disciplined cost execution through its Reinvention plan.
Revenue Growth
Direct-to-consumer revenue surged 93% YoY to $4.7M, continuing the company’s strategic shift towards higher-margin revenue streams.
Negative Factors
Cost Efficiency
Revenue met expectations, but AEBITDA fell short in Q4, reflecting weaker-than-expected cost efficiencies.
Guidance Concerns
FY 2025 guidance was below consensus, particularly on profitability, raising concerns about near-term margin expansion and cash generation.
Market Challenges
Management commentary suggests a cautious outlook as the company navigates a softening social casino market and transitions into new growth verticals such as sweepstakes and the Tetris game launch.
PLAYSTUDIOS (MYPS) vs. S&P 500 (SPY)
Market Cap
$164.40M
Dividend YieldN/A
Average Volume (3M)186.53K
Price to Earnings (P/E)―
Beta (1Y)1.27
Revenue Growth-11.11%
EPS Growth-90.96%
CountryUS
Employees556
SectorCommunication Services
Sector Strength82
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)-0.02
Shares Outstanding109,036,064
10 Day Avg. Volume146,881
30 Day Avg. Volume186,534
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap0.37
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit0.28
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$3.50Price Target Upside125.81% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
PLAYSTUDIOS Business Overview & Revenue Model
Company DescriptionPLAYSTUDIOS, Inc. develops and publishes free-to-play casual games for mobile and social platforms in the United States, North America, and internationally. The company is headquartered in Las Vegas, Nevada.
How the Company Makes MoneyPLAYSTUDIOS makes money primarily through in-app purchases and advertising. The company offers free-to-play games, but generates revenue by selling virtual currency and other in-game items that enhance the gaming experience. Additionally, PLAYSTUDIOS partners with various brands and businesses to provide real-world rewards, which not only attracts users but also creates revenue through marketing partnerships. These partnerships allow PLAYSTUDIOS to monetize user engagement by offering branded rewards in exchange for player loyalty and participation, thus creating a unique value proposition in the gaming market.
PLAYSTUDIOS Financial Statement Overview
Summary
PLAYSTUDIOS shows robust cash flow generation and strong equity position, with low debt reliance. However, the company faces challenges in profitability and declining revenues, despite effective cost management at the production level.Income Statement
The income statement shows a declining revenue trend with a 6.90% decrease from 2023 to 2024. The company has consistently reported net losses, indicating challenges in profitability, alongside negative EBIT margins. Despite this, the gross profit margin remains strong at approximately 74.9% in 2024, suggesting effective cost management at the production level.55
Neutral
Balance Sheet
The balance sheet reflects a solid equity position with an equity ratio of 75.8% in 2024, indicative of low financial leverage. However, the company has a negative return on equity due to continuous net losses. Despite this, the debt-to-equity ratio remains favorable at a low 0.04, showcasing limited reliance on debt financing.60
Neutral
Cash Flow
The cash flow statements provide a positive outlook with significant free cash flow generation in 2024, increasing to $41.76 million from $19.25 million in 2023. The operating cash flow to net income ratio is robust, reflecting effective cash management despite net losses, and indicating strong operational cash generation.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 289.43M | 310.89M | 290.31M | 287.42M | 269.88M | Gross Profit |
| 216.71M | 233.09M | 204.91M | 195.78M | 178.41M | EBIT |
| -32.86M | -10.49M | -3.09M | -137.00K | 31.37M | EBITDA |
| 38.29M | 43.36M | 20.50M | 27.49M | 33.47M | Net Income Common Stockholders |
| -28.69M | -19.39M | -17.78M | 10.74M | 12.81M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 109.18M | 132.89M | 134.00M | 213.50M | 48.93M | Total Assets |
| 322.95M | 366.32M | 352.01M | 334.84M | 134.46M | Total Debt |
| 10.06M | 9.94M | 16.23M | 0.00 | 0.00 | Net Debt |
| -99.11M | -122.95M | -117.77M | -213.50M | -48.93M | Total Liabilities |
| 78.24M | 77.97M | 49.70M | 31.38M | 38.38M | Stockholders Equity |
| 244.72M | 288.35M | 302.31M | 303.47M | 96.08M |
| Cash Flow | Free Cash Flow | |||
| 41.76M | 19.25M | 4.00K | -7.02M | 21.40M | Operating Cash Flow |
| 45.74M | 51.72M | 33.38M | 33.88M | 48.40M | Investing Cash Flow |
| -26.29M | -32.31M | -102.35M | -56.94M | -27.00M | Financing Cash Flow |
| -41.91M | -20.18M | -9.57M | 186.89M | -3.63M |
PLAYSTUDIOS Technical Analysis
Positive
1.55
Price Trends
1.33
Positive
1.58
Negative
1.61
Negative
Market Momentum
0.03
Negative
66.37
Neutral
81.79
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MYPS, the sentiment is Positive. The current price of 1.55 is above the 20-day moving average (MA) of 1.31, above the 50-day MA of 1.33, and below the 200-day MA of 1.61, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 66.37 is Neutral, neither overbought nor oversold. The STOCH value of 81.79 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MYPS.
PLAYSTUDIOS Risk Analysis
PLAYSTUDIOS disclosed 65 risk factors in its most recent earnings report. PLAYSTUDIOS reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
PLAYSTUDIOS Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
60 Neutral | $13.50B | 7.33 | -2.74% | 3.80% | 2.09% | -39.49% | |
59 Neutral | $164.40M | ― | -11.64% | ― | -11.11% | -90.96% | |
59 Neutral | $359.76M | 25.25 | -1.00% | ― | 0.82% | -102.72% | |
55 Neutral | $591.34M | ― | -51.21% | ― | -14.71% | 66.24% | |
51 Neutral | $89.55M | ― | -25.25% | ― | -36.40% | 49.91% | |
46 Neutral | $358.99M | ― | -3.92% | ― | -15.62% | 79.81% | |
44 Neutral | $575.13M | ― | -18.77% | ― | 12.01% | 35.71% |
* Communication Services Sector Average
Performance Comparison
MYPS
PLAYSTUDIOS
1.55
-0.74
-32.31%
SKLZ
Skillz
5.58
0.14
2.57%
THRY
Thryv Holdings
13.75
-7.84
-36.31%
SEAT
Vivid Seats
1.79
-3.71
-67.45%
KIND
Nextdoor Holdings
1.36
-0.89
-39.56%
ZH
Zhihu
3.89
0.01
0.26%
PLAYSTUDIOS Earnings Call Summary
Earnings Call Date:May 05, 2025
(Q1-2025)
| % Change Since: 10.71%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant progress in strategic initiatives such as the sweepstakes platform and direct-to-consumer growth, but these were overshadowed by notable declines in revenue, user engagement, and adjusted EBITDA, indicating ongoing challenges in the core business segments.Q1-2025 Updates
Positive Updates
Launch of Sweepstakes Promotional Platform
During the quarter, PLAYSTUDIOS launched the internal alpha of its sweepstakes promotional platform, providing valuable insights and setting the stage for a Q2 launch to select players, with scaling expected in the second half of the year.
Direct-to-Consumer Channel Growth
The direct-to-consumer channel generated approximately $5 million in in-app purchase revenue in Q1, representing 9.8% of total IAP revenue, up from 3.9% in Q1 2024 and 8.6% in Q4 2024, showing a year-over-year growth of 114%.
MyVIP Integration and Reward Partnerships
playAWARDS completed the integration of myVIP across major games, launching new reward partnerships including Foley Entertainment Group, enhancing the diversity and appeal of their loyalty ecosystem.
Strong Financial Position
The company ended the quarter with $107 million in cash and no outstanding debt, maintaining a strong balance sheet.
Negative Updates
Revenue and DAU Decline
First quarter revenue was $63 million, down approximately 19% year-over-year, with DAU at 2.6 million, down 25% versus Q1 2024, impacted by category-wide pressure and lower new player acquisition.
Challenges in Casual Game Portfolio
The casual segment, including Brainium and Tetris Prime, faced performance issues with softer DAU and weaker eCPMs, and user acquisition remained a primary headwind.
Adjusted EBITDA Decline
Adjusted EBITDA for the quarter was $12 million, an 18.5% decline year-over-year, reflecting ongoing challenges in the social casino and casual game portfolios.
Company Guidance
During the PLAYSTUDIOS first quarter 2025 earnings call, key guidance metrics were provided by Andrew Pascal, the CEO, and Scott Peterson, the CFO. The company reaffirmed its full-year 2025 guidance, projecting net revenue between $250 million and $270 million and consolidated adjusted EBITDA between $45 million and $55 million. The guidance excludes expected revenue contributions from the upcoming sweepstakes product and the new Tetris Block Party title, both anticipated to impact later in the year. In Q1, the direct-to-consumer channel showed significant growth, generating approximately $5 million in revenue and representing 9.8% of total in-app purchase revenue, compared to 3.9% a year prior. Despite a 19% year-over-year revenue decline to $63 million and a 25% drop in daily active users to 2.6 million, the adjusted EBITDA margin improved slightly to 20%. The company is on track to realize $25 million to $30 million in annualized cost savings from its reinvention plan, which will be reinvested into strategic priorities.PLAYSTUDIOS Corporate Events
Executive/Board ChangesBusiness Operations and StrategyFinancial Disclosures
James Murren Resigns from PLAYSTUDIOS Board
Neutral
Mar 10, 2025
On March 7, 2025, James Murren resigned from the Board of Directors of PLAYSTUDIOS, Inc., where he served as Chairman of the Audit Committee. The company also adopted a Severance and Change in Control Plan to provide benefits to eligible officers and management employees in case of qualifying terminations. Additionally, the Compensation Committee approved grants of restricted and performance stock units to key executives. PLAYSTUDIOS reported a decrease in revenue and net loss for the fourth quarter of 2024 compared to the previous year, but highlighted its strategic focus on growth initiatives, including new business ventures in sweepstakes and a Tetris title. The company aims to leverage these efforts to enhance its casino portfolio and maximize shareholder value through strategic capital allocation.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.