Financial PerformanceAdjusted EBITDA of $167MM (-10% y/y) missed our estimate of $178MM and consensus of $173MM due to higher marketing expense.
Market ChallengesAnalyst downgrades the stock to Neutral due to headwinds in mobile gaming and concerning trends within core franchises.
Revenue DeclineSocial casino revenue was down -14% y/y and -4% q/q, with Slotomania declining -17% y/y and -6% q/q as management indicated that title performance was disappointing, and that softness would likely persist for at least the next few quarters.