Playstudios misses Q3 revenue estimates on softness in casino business

Reuters11-04
Playstudios misses Q3 revenue estimates on softness in casino business 

Overview

  • Playstudios Q3 revenue of $57.6 mln missed analyst expectations

  • Net loss for Q3 widened to $9.1 mln from $3.1 mln last year

  • Direct-to-consumer revenue increased by 48% yr/yr in Q3

Outlook

  • Company expects full-year revenue and AEBITDA below previous guidance due to player activity softness

  • Company focuses on direct-to-consumer growth and new initiatives like Tetris Block Party

Result Drivers

  • DIRECT-TO-CONSUMER GROWTH - Direct-to-consumer revenue rose 48% yr/yr, indicating traction in this channel

  • MARKET HEADWINDS - Core social casino business faced significant market challenges, per CEO Andrew Pascal

  • STRATEGIC INITIATIVES - Progress in sweepstakes and Tetris Block Party seen as promising, per CEO Andrew Pascal

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Miss

$57.65 mln

$58.77 mln (5 Analysts)

Q3 EPS

-$0.07

Q3 Net Income

-$9.12 mln

Q3 Adjusted EBITDA Margin

12.6%

Q3 Pretax Profit

-$8.82 mln

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"

  • The average consensus recommendation for the software peer group is "buy"

  • Wall Street's median 12-month price target for PLAYSTUDIOS Inc is $2.00, about 53.5% above its October 31 closing price of $0.93

Press Release: ID:nBw8wwzVha

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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