Playstudios FY2024 revenue falls 6.9%, reports net loss of $28.7m
Results were similar during the fourth quarter of 2024, as revenue decreased by 12.1% year-over-year to $67.8m, with PlayStudios reporting a net loss of $22.4m for the period.
Key Points
- Playstudios stated it executed a cost reinvention program, which includes a near 30% reduction in workforce, suspension of sub-scale game development and consolidation of key business functions
- The company expects FY2025 revenue to range between $250-$270m and adjusted EBITDA to fall between $45-$55m
Playstudios has released its financial results for both the fourth quarter of 2024 and full year (FY), including a net loss of $28.7m during FY2024 while revenue decreased by 6.9% year-over-year for a total of $289.4m. The net loss generated throughout FY2024 represents an increase of 47.9% from the prior year period, while adjusted AEBITDA fell by 9.2% year-over-year to $56.5m during the period.
The company executed its cost reinvention program during FY 2024, which includes a roughly 30% reduction in workforce, suspension of sub-scale game development and consolidation of key business functions. Playstudios expects the program to result in normalized annual cost savings of approximately $25-$30m.
The playGames segment of the company generated the most revenue by far throughout FY2024, having reported $289.4m of revenue but decreasing by 5.7% year-over-year, while playAwards revenue was just $62k after reporting nearly $4.2m during Q4 2023.
“2024 closed with revenue and Consolidated AEBITDA in line with guidance despite continued industry pressures. More importantly, we’re entering 2025 with a more structured, cost-efficient business model geared towards growth and shareholder returns,” Playstudios Chairman and CEO Andrew Pascal said.
“The balance sheet will also be a focus in 2025 as we continue to assess the best ways to deploy our sizable cash holdings. Our priority will be maximizing shareholder value through strategic capital allocation, including potential acquisitions, investments in growth-oriented initiatives and exploring other ways of returning value to our shareholders.”
Good to know: Playstudios’ focus throughout 2025 was said to be on growing its two new business initiatives, sweepstakes and a new Tetris title, as part of the financial report
Revenue throughout the fourth quarter of 2024 was reported to be just under $67.8m, representing a decrease of 12.1% year-over-year while Playstudios witnessed a net loss of more than $22.4m during the quarter. The figure is nearly $3m higher than the net loss generated during Q3 2024, with adjusted AEBITDA falling by 15.3% from the prior year period for a total of $12.5m.
The company’s playAwards segment generated $57k of its total revenue reported for FY2024 during the fourth quarter, with no revenue having been reported throughout Q4 2023. The playGames segment managed to report $67.7m of revenue for Q4 2024, falling by 12.2% from the prior year period.
Playstudios stated it expects FY2025 revenue to range between $250-$270m and adjusted EBITDA is expected to range between $45-$55m.
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