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Playstudios Q1 2025 Earnings Report
Playstudios reported a decrease in revenue and an increase in net loss for the first quarter of 2025, while showing growth in direct-to-consumer revenue and maintaining a strong liquidity position.
Key Takeaways
PLAYSTUDIOS, Inc. announced its first quarter 2025 financial results, reporting a revenue of $62.7 million, a decrease from $77.8 million in the prior year. The company posted a net loss of $2.9 million, compared to a net loss of $0.6 million in Q1 2024. Despite the overall decline, direct-to-consumer revenue saw a significant increase of 113.9%. The company also maintained a strong cash position with $107.1 million in cash and cash equivalents.
Revenue for Q1 2025 was $62.7 million, a decrease from $77.8 million in Q1 2024.
Net loss for Q1 2025 was $2.9 million, compared to a net loss of $0.6 million in Q1 2024.
Consolidated AEBITDA was $12.5 million, with a margin of 19.9%, showing a slight increase in margin compared to the previous year.
Direct to Consumer revenue increased by 113.9% to $5.0 million in Q1 2025 from $2.3 million in Q1 2024.
Playstudios
Playstudios
Playstudios Revenue by Segment
Revenue by Segment
playGAMES Revenue
CapyFin.complayAWARDS Revenue
CapyFin.com Forward Guidance
The company is maintaining its full year 2025 guidance for net revenue in the range of $250 million to $270 million and Consolidated AEBITDA in the range of $45 million to $55 million.
Positive Outlook
- Continued development of sweepstakes promotional capabilities, with limited release expected in Q2 2025 and scaling through the back half of the year.
- Expanded direct-to-consumer monetization initiatives, contributing to margin improvement.
- Progressed development of Tetris Block Party, targeting launch in Q4 2025.
- Strengthened playAWARDS platform with the addition of new premium partners and the announcement of the second annual myVIP World Tournament of Slots.
- Reinvention plan progressing toward targeted $25 million to $30 million in annualized cost savings.
Challenges Ahead
- Market conditions remain challenging, putting continued pressure on operating performance.
- Certain items part of the projected non-GAAP financial measure are outside of control or cannot be reasonably estimated.
- The company did not provide specific guidance on net income or EPS.
- No specific details on potential impacts of macroeconomic factors on future performance.
- The guidance range for both revenue and AEBITDA is broad, indicating potential variability.