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PLAYSTUDIOS (MYPS)
NASDAQ:MYPS
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PLAYSTUDIOS
(NASDAQ:MYPS)
61Neutral
Positive Factors
Financial Flexibility
The company’s $81M revolving credit facility remains undrawn, providing additional financial flexibility.
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
Profitability Concerns
FY 2025 guidance was below consensus, particularly on profitability, raising concerns about near-term margin expansion and cash generation.
PLAYSTUDIOS (MYPS) vs. S&P 500 (SPY)
Market Cap
$164.58M
Dividend YieldN/A
Average Volume (3M)133.47K
Price to Earnings (P/E)―
Beta (1Y)1.26
Revenue Growth-4.60%
EPS Growth-1926.80%
CountryUS
Employees710
SectorCommunication Services
Sector Strength82
IndustryInteractive Multi-Media
Share Statistics
EPS (TTM)-0.23
Shares Outstanding108,226,660
10 Day Avg. Volume175,495
30 Day Avg. Volume133,474
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.55
Price to Cash Flow (P/CF)2.80
P/FCF Ratio4.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$3.50Price Target Upside191.67% Upside
Rating ConsensusHold
Number of Analyst Covering5
PLAYSTUDIOS Business Overview & Revenue Model
Company DescriptionAcies Acquisition Corp is a blank check company.
How the Company Makes MoneyPLAYSTUDIOS generates revenue primarily through in-app purchases and advertising within its games. The company offers virtual currency and other digital goods that players can purchase to enhance their gaming experience. Additionally, PLAYSTUDIOS leverages its unique loyalty rewards program, allowing players to earn points that can be redeemed for real-world rewards from a network of partners, including hotels, restaurants, and entertainment venues. This program not only drives user engagement but also attracts partnerships with businesses seeking to reach the company's user base. Advertising revenue is another key stream, with brands paying to promote their products within PLAYSTUDIOS' games. The company's revenue is thus a blend of microtransactions, advertising, and partnership-driven incentives.
PLAYSTUDIOS Financial Statement Overview
Summary
PLAYSTUDIOS demonstrates strengths in cash flow and balance sheet management, with low leverage and stable cash generation. However, persistent challenges in achieving profitability and declining revenue growth impact the income statement, suggesting a need for strategic adjustments to enhance operational efficiency and revenue growth.Income Statement
The company shows a decline in revenue with a negative revenue growth rate from the annual report to the TTM. Gross profit margins remain healthy but declining, indicating some pressure on cost management. Net profit margins are negative due to consistent losses, highlighting challenges in achieving profitability. The EBIT and EBITDA margins also show a negative trend, reflecting operational inefficiencies.55
Neutral
Balance Sheet
The balance sheet reflects a strong equity position with a high equity ratio, indicating financial stability. The debt-to-equity ratio is low, suggesting prudent leverage management. However, declining stockholders' equity and total assets over time may pose risks if the trend continues. The return on equity (ROE) is negative due to net losses, indicating inefficiencies in generating returns from equity.65
Positive
Cash Flow
Operating cash flow remains positive and covers net income losses, demonstrating strong cash generation capabilities. The free cash flow shows growth in the TTM period, indicating improved cash management. However, the free cash flow to net income ratio remains a concern due to consistent net losses.70
Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 298.76M | 310.89M | 290.31M | 287.42M | 269.88M | 239.42M | Gross Profit |
| 189.59M | 233.09M | 204.91M | 195.78M | 178.41M | 159.15M | EBIT |
| -9.67M | -10.49M | -3.09M | -137.00K | 31.37M | 17.14M | EBITDA |
| 39.95M | 43.36M | 20.50M | 27.49M | 33.47M | 43.01M | Net Income Common Stockholders |
| -26.14M | -19.39M | -17.78M | 10.74M | 12.81M | 13.61M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 31.02M | 132.89M | 134.00M | 213.50M | 48.93M | 31.02M | Total Assets |
| 99.27M | 366.32M | 352.01M | 334.84M | 134.46M | 99.27M | Total Debt |
| 0.00 | 9.94M | 16.23M | 0.00 | 0.00 | 0.00 | Net Debt |
| -31.02M | -122.95M | -117.77M | -213.50M | -48.93M | -31.02M | Total Liabilities |
| 11.87M | 77.97M | 49.70M | 31.38M | 38.38M | 11.87M | Stockholders Equity |
| 80.31M | 288.35M | 302.31M | 303.47M | 96.08M | 80.31M |
| Cash Flow | Free Cash Flow | ||||
| 20.20M | 19.25M | 4.00K | -7.02M | 21.40M | 10.80M | Operating Cash Flow |
| 49.45M | 51.72M | 33.38M | 33.88M | 48.40M | 36.09M | Investing Cash Flow |
| -32.55M | -32.31M | -102.35M | -56.94M | -27.00M | -25.29M | Financing Cash Flow |
| -41.04M | -20.18M | -9.57M | 186.89M | -3.63M | -7.35M |
PLAYSTUDIOS Technical Analysis
Negative
1.20
Price Trends
1.73
Negative
1.74
Negative
1.79
Negative
Market Momentum
-0.11
Positive
24.10
Positive
1.96
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MYPS, the sentiment is Negative. The current price of 1.2 is below the 20-day moving average (MA) of 1.62, below the 50-day MA of 1.73, and below the 200-day MA of 1.79, indicating a bearish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 24.10 is Positive, neither overbought nor oversold. The STOCH value of 1.96 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MYPS.
PLAYSTUDIOS Risk Analysis
PLAYSTUDIOS disclosed 66 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 (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $35.93B | 35.73 | 14.04% | 0.55% | -2.99% | -0.46% | |
63 Neutral | $10.17B | ― | -5.37% | ― | 18.03% | 82.15% | |
62 Neutral | $35.97B | ― | -51.45% | ― | 1.00% | -148.89% | |
61 Neutral | $164.58M | ― | -10.76% | ― | -4.60% | -1926.80% | |
59 Neutral | $29.20B | 0.14 | -12.92% | 4.06% | 2.18% | -51.74% | |
52 Neutral | $92.40M | ― | -19.96% | ― | -37.90% | 80.16% |
* Communication Services Sector Average
Performance Comparison
MYPS
PLAYSTUDIOS
1.20
-0.95
-44.19%
EA
Electronic Arts
136.12
-0.11
-0.08%
TTWO
Take-Two
205.33
60.44
41.71%
ROKU
Roku
70.96
6.49
10.07%
SKLZ
Skillz
5.39
-1.73
-24.30%
PLAYSTUDIOS Earnings Call Summary
Earnings Call Date: Mar 10, 2025 | % Change Since: -20.00% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Neutral
PLAYSTUDIOS achieved its full year revenue and EBITDA guidance, managed to optimize its cost structure, and launched new promotional efforts successfully. However, the company faced challenges in declining revenue, particularly in its Tetris franchise and social casino user base.Highlights
Achievement of Full Year Guidance
Despite industry pressures, PLAYSTUDIOS achieved its full year guidance for revenue and adjusted EBITDA in 2024.
Cost Structure Optimization
The company restructured its business, reducing the workforce by over 30% and suspending select sub-scale games to enhance efficiency and economies of scale.
Launch of World Tournament of Slots
The new promotional effort, World Tournament of Slots, was launched successfully and well-received by players, with a $1 million prize and 500 participants.
Strong Cash Position
PLAYSTUDIOS ended the year with $109 million in cash and full availability of their $81 million revolving credit facility.
Direct-to-Consumer Sales Growth
Direct-to-consumer sales grew to $4.5 million this quarter, representing 8% of total in-app purchase revenues, up from 4% year-over-year.
Lowlights
Decline in Quarterly Revenue
Revenues in the fourth quarter declined by $9.3 million or 12% compared to the previous year, with both social casino and casual games showing declines.
Challenges in Tetris Franchise
Tetris franchise faced a decline in DAU, leading to lower advertising revenues, with recent product changes not having the anticipated positive effect.
Social Casino User Challenges
DAU and MAU were down 19% and 14% respectively from the same period last year, driven largely by declines in Tetris and Brainium.
Company Guidance
During the PLAYSTUDIOS Fourth Quarter and Year-End 2024 Earnings Call, guidance for 2025 was detailed, projecting revenues between $250 million and $270 million and consolidated adjusted EBITDA ranging from $45 million to $55 million. The guidance did not account for any acquisitions or divestitures, and the company chose to exclude potential revenues from new sweepstakes and Tetris initiatives, which could contribute an additional $15 million to $30 million, mainly in Q4. The company's reinvention plan, aimed at cost savings of $25 million to $30 million annually, was offset by strategic investments in new initiatives. The 2025 focus includes improving core casino game productivity, expanding the casual portfolio, and advancing new developments, with the company ending 2024 with $109 million in cash and a fully undrawn $81 million revolver.PLAYSTUDIOS Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
PLAYSTUDIOS Appoints Robert Oseland as New COO
Positive
Jan 29, 2025
On January 23, 2025, PLAYSTUDIOS appointed Robert L. Oseland as Chief Operating Officer, effective immediately. Oseland, who has been with the company since 2019, has extensive experience in the gaming and hospitality industries, previously holding executive roles at Paragon Gaming and Wynn Resorts. His new compensation includes an increased salary, a discretionary bonus, and stock units contingent on continued employment and the company’s financial performance. This strategic move could enhance PLAYSTUDIOS’ operational leadership and strengthen its market position.
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.