PLAYSTUDIOS, Inc. MYPS reported mixed fourth-quarter 2023 results, wherein its earnings missed the Zacks Consensus Estimate but net revenues beat the same. The top and bottom lines declined on a year-over-year basis.

The company’s quarterly results reflect year-over-year soft contributions from its playGAMES line of business and no reportable revenue generation from its playAWARDS business. The number of reward partners under playAWARDS declined sequentially to 113 from more than 120 partners in the reporting quarter. Also, increased depreciation and amortization expenses along with research and development costs ailed the bottom line in the quarter.

Nonetheless, the company is optimistic about the launch of the myVIP loyalty program along with its game development portfolio while entering 2024. Also, its inorganic growth initiatives are encouraging.

Following the announcement, shares of the company moved down 0.9% in the after-hours trading session on Mar 11.

Earnings & Revenue Discussion

In the quarter under review, PLAYSTUDIOS reported an adjusted loss per share of 15 cents, which missed the Zacks Consensus Estimate by 400%. In the year-ago quarter, the company reported an adjusted loss of 2 cents per share.

PLAYSTUDIOS, Inc. Price, Consensus and EPS Surprise

PLAYSTUDIOS, Inc. price-consensus-eps-surprise-chart | PLAYSTUDIOS, Inc. Quote

Net revenues of $77.1 million beat the consensus mark of $75.6 million by 1.5%. However, the metric declined 2.9% on a year-over-year basis.

Operating Highlights

During fourth-quarter 2023, the company reported an operating loss of $2.7 million, down 40% year over year from $4.5 million. Total operating costs and expenses were $79.8 million, down from $83.8 million reported in the year-ago quarter.

On the other hand, adjusted EBITDA in the quarter was $14.7 million, up from $12.1 million reported in the year-ago quarter. Adjusted EBITDA margin was 19.1%, up 390 basis points (bps) year over year.

Sneak Peek at 2023

Net revenues of PLAYSTUDIOS in 2023 amounted to $310.9 million, up from $290.3 million in 2022.

Adjusted EBITDA and adjusted EBITDA margin were up year over year by 62.7% to $62.3 million and 680 bps to 20%, respectively.

In the year, the company reported an adjusted loss per share of 15 cents compared with a loss of 14 cents per share reported in the previous year.

Balance Sheet

As of Dec 31, 2023, MYPS had cash and cash equivalents of $132.9 million, down from $134 million in 2022 end.

On Nov 1, 2023, the board of directors of the company extended the share repurchase authorization through Nov 10, 2024. Also, it increased the remaining amount authorized to $50 million from $30 million remaining under the previous authorization.