Q3 2024 PLAYSTUDIOS Inc Earnings Call Transcript
Key Points
- Revenues and adjusted EBITDA exceeded consensus estimates, with adjusted EBITDA increasing by 8% year-over-year.
- The company launched a reinvention plan expected to save $25 million to $30 million annually.
- Adjusted EBITDA margins improved by 270 basis points year-over-year, driven by efficiencies and reduced user acquisition costs.
- The direct-to-consumer business grew to 7.2% of total revenues, up from 4.5% last quarter.
- The integration of the recent acquisition, Pixel, is progressing smoothly, with plans to leverage the Tetris brand.
- Year-over-year revenues decreased by 6%, primarily due to continued weakness in the social games category.
- The company announced a significant workforce reduction of over 30%, which may impact future operations.
- The Tetris brand's 40th anniversary had a more muted effect on revenues than anticipated.
- Daily Active Users (DAU) and Monthly Active Users (MAU) declined by 16% and 8% respectively, year-over-year.
- The company is facing challenges in the social casino segment, particularly with the Pop Slots game.
Greetings and welcome to the Play Studios third quarter, 2024 earnings call and webcast. (Operator Instructions) As a reminder, this conference is being recorded.
It's now my pleasure to turn the call over to Sameer Jain, head of Treasury and Investor Relations.Sameer, please go ahead.
Thank you operator. Good afternoon and thank you for joining us for PLAYSTUDIOS's third quarter, 2024 earnings call. Joining me on the call today are Chairman and CEO Andrew Pascal and our CFO Scott Peterson. Before we begin, let me remind you that during the course of this call, we'll make forward-looking statements. These statements are based on our current expectations and beliefs and are subject to risks and uncertainties that could cause actual results to differ materially, please refer to our CC filings for discussion of the risks and uncertainties that may affect our future results. I'd like to remind everyone that we will discuss certain nongaap financial measures during this call, these measures should not be considered as a
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