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Playstudios, Inc (MYPS)
:MYPS

PLAYSTUDIOS (MYPS) AI Stock Analysis

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PLAYSTUDIOS

(NASDAQ:MYPS)

Rating:51Neutral
Price Target:
$1.00
▼(-15.97%Downside)
PLAYSTUDIOS faces significant challenges with declining revenue, profitability issues, and bearish technical indicators. Despite a strong balance sheet and some strategic initiatives, the negative valuation metrics and earnings call concerns weigh heavily on the stock's overall score. Improving operational efficiency and stabilizing core business performance are critical for enhancing its outlook.
Positive Factors
Direct-to-consumer strategy
PLAYSTUDIOS continues to benefit from early traction in direct-to-consumer monetization and disciplined cost execution through its Reinvention plan.
Financial Position
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.
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.
Market Conditions
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.
Profitability Concerns
FY 2025 guidance was below consensus, particularly on profitability, raising concerns about near-term margin expansion and cash generation.

PLAYSTUDIOS (MYPS) vs. SPDR S&P 500 ETF (SPY)

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 generates revenue primarily through in-app purchases and advertising within its games. Players can purchase virtual currency, which is used to enhance gameplay or accelerate progress within the games. Additionally, the company's loyalty platform serves as a significant revenue stream, as it partners with various businesses to offer rewards. These partnerships not only enhance the value proposition for players but also create promotional opportunities for partner brands, potentially leading to shared revenue models or marketing fees. The company's focus on creating engaging games with real-world rewards has established a distinctive niche in the gaming market.

PLAYSTUDIOS Earnings Call Summary

Earnings Call Date:May 05, 2025
(Q1-2025)
|
% Change Since: -15.00%|
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 Financial Statement Overview

Summary
The company faces revenue decline and profitability challenges, as evidenced by negative net profit margins and EBIT. Despite a strong balance sheet with low debt and high equity, cash flow issues, particularly the reduction in free cash flow, pose concerns. Improvement in operational efficiency and revenue stabilization is needed.
Income Statement
55
Neutral
The company's revenue has been declining over recent periods, with a TTM revenue of $274.31 million compared to $289.43 million in the previous year. Both gross profit margin and net profit margin have been negative, indicating challenges in converting revenue into profit. Despite a positive EBITDA margin, persistent negative EBIT suggests ongoing operational inefficiencies.
Balance Sheet
70
Positive
The balance sheet shows a healthy equity position with an equity ratio of 77.8%. The company has maintained low levels of debt, resulting in a low debt-to-equity ratio. However, declining total assets and equity year-over-year highlight potential concerns about asset management or investment strategy.
Cash Flow
65
Positive
Operating cash flow remains positive, indicating the company's core operations are generating cash. However, free cash flow has decreased from $41.76 million to $24.41 million in the TTM, suggesting increased capital expenditure or reduced cash generation from operations. The free cash flow to net income ratio is positive, but net income itself is negative, which may obscure the true cash flow health.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue274.31M289.43M310.89M290.31M287.42M269.88M
Gross Profit204.77M216.71M233.09M204.91M195.78M178.41M
EBITDA36.01M38.29M43.36M20.50M27.49M33.47M
Net Income-31.00M-28.69M-19.39M-17.78M10.74M12.81M
Balance Sheet
Total Assets313.77M322.95M366.32M352.01M334.84M134.46M
Cash, Cash Equivalents and Short-Term Investments107.10M109.18M132.89M134.00M213.50M48.93M
Total Debt9.03M10.06M9.94M16.23M0.000.00
Total Liabilities69.69M78.24M77.97M49.70M31.38M38.38M
Stockholders Equity244.08M244.72M288.35M302.31M303.47M96.08M
Cash Flow
Free Cash Flow24.41M41.76M19.25M4.00K-7.02M21.40M
Operating Cash Flow44.04M45.74M51.72M33.38M33.88M48.40M
Investing Cash Flow-23.38M-26.29M-32.31M-102.35M-56.94M-27.00M
Financing Cash Flow-40.11M-41.91M-20.18M-9.57M186.89M-3.63M

PLAYSTUDIOS Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.19
Price Trends
50DMA
1.40
Negative
100DMA
1.40
Negative
200DMA
1.56
Negative
Market Momentum
MACD
-0.05
Positive
RSI
40.51
Neutral
STOCH
17.17
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 1.19 is below the 20-day moving average (MA) of 1.37, below the 50-day MA of 1.40, and below the 200-day MA of 1.56, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 40.51 is Neutral, neither overbought nor oversold. The STOCH value of 17.17 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 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 (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
58
Neutral
C$3.40B8.17-17.94%5.77%-2.70%-16.54%
ZHZH
57
Neutral
$409.83M-0.39%-19.68%99.02%
57
Neutral
$132.36M-21.26%-29.26%57.78%
54
Neutral
$395.66M25.25-1.00%0.82%-102.72%
54
Neutral
$546.73M-51.21%-14.71%66.24%
51
Neutral
$149.82M-11.64%-11.11%-90.96%
51
Neutral
$623.62M-18.77%12.01%35.71%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
MYPS
PLAYSTUDIOS
1.26
-0.71
-36.04%
SKLZ
Skillz
7.21
0.60
9.08%
THRY
Thryv Holdings
13.36
-3.01
-18.39%
SEAT
Vivid Seats
1.84
-3.60
-66.18%
KIND
Nextdoor Holdings
1.72
-1.01
-37.00%
ZH
Zhihu
4.76
1.63
52.08%

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
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jul 08, 2025