Playstudios revenue decreases 6% year-over-year, reports net loss of $3.1m for Q3 2024
The company also announced a new reinvention program in the hopes of lowering cost structure, increasing profitability and better positioning Playstudios for long-term growth.
Key Points
- Revenue decreased by 6% from the prior year period for a total of $71.2m for the third quarter of 2024
- The company’s consolidated AEBITDA managed to increase by just under 8.2% year-over-year for Q3 2024
Playstudios announced the company’s financial results from the third quarter of 2024, reporting a net loss of $3.1m for Q3 2024 and a 6% decrease in net revenue year-over-year for a total of $71.2m during the period. The net loss represented a 181.6% year-over-year decrease from the net income reported for the third quarter of 2023.
“Despite continued industry pressures, revenues and consolidated AEBITDA came in above consensus expectations this quarter. AEBITDA margins increased to 20.5% and we believe further gains are achievable,” Playstudios Chairman and CEO Andrew Pascal said.
“We made progress on our many strategic initiatives this quarter including raising the monetization of our games, expanding the Tetris Brand, a full integration of playAWARDS, furthering our DTC initiative and evaluating new growth opportunities.”
Playstudios’ consolidated AEBITDA managed to increase by just under 8.2% from the prior year period, reported to be $14.6m for the third quarter of 2024.
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The company also launched its new reinvention program that will hope to result in a material reduction in costs and increase in profitability. The program will include a reduction in workforce, suspension of sub-scale game development and consolidation of key business functions, which Playstudios expects to result in normalized annual cost savings of approximately $25-30m.
PlayGames represented the vast majority of the company’s net revenue for the third quarter of 2024, as the PlayAwards segment generated just $3,000 in revenue throughout the quarter.
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