The following is a summary of the PLAYSTUDIOS, Inc. (MYPS) Q3 2024 Earnings Call Transcript:

Financial Performance:

• PLAYSTUDIOS reported a year-over-year decrease in revenues by 6% but saw an 8% increase in adjusted EBITDA.

• Adjusted EBITDA margins increased to 20.5%, reflecting gains from efficiencies, lower cost of sales, and reduced user acquisition spend, and are expected to save $25 million to $30 million annually from recent restructuring.

• Net revenues for the quarter were $71.2 million, down 6% from the previous year.

Business Progress:

• Focused on stabilizing the social casino portfolio for growth, with plans for integrating sweepstake capabilities to leverage existing games.

• Scaling and enhancing the growth game portfolio, including ongoing improvements in games such as Branium and Tetris.

• Conducting a significant restructuring to streamline operations, reducing workforce by over 30%, and cancelling or suspending sub-scale games.

Opportunities:

• Leveraging new technological strategies and consolidation of functions to enhance operational efficiency and reduce costs.

• Expanding market presence through acquisitions, like the recent one with Pixode, to enhance the gaming portfolio and drive innovation.

• Strengthening direct-to-consumer pathways and viewing sweepstakes promotional models as a means to revitalize the social casino portfolio.

Risks:

• Anticipated challenges from reducing workforce and potential short-term impacts on revenue stability and growth from restructuring actions.

• Market pressures within the social casino sector, particularly for their largest game Pop! Slots, continue to pose challenges to revenue.

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