Playstudios reports $25.2m net loss for Q1
Playstudios has published its first quarter financial results, showing an almost 5% revenue decrease year-on-year.
For Q1 2022, the company generated $70.5m in revenue, a noticeable decline from the same period last year when it recorded just over $74m.
Playstudios attributed this drop to the pandemic, specifically “Covid-related stimulus checks on player engagement monetisation behaviours.” This revenue decrease, alongside “certain non-cash charges,” contributed to the company suffering a net loss of $25.2m, a significant year-on-year decline from Q1 2021 when it produced nearly $6m in net income.
Adjusted EBITDA was likewise down, amounting to $9.1m, a 37% decrease from the prior-year period’s $14.5m. However, consumer engagement was up. On a year-over-year basis, reward purchases rose by 54.2%.
According to Playstudios’ CEO, Andrew Pascal, this represents the “the highest level of engagement we’ve seen since the onset of the Covid pandemic.”
“Entering 2022, our focus was on enhancing the value proposition of our PlayAwards loyalty platform, preparing to offer it as a stand-alone service to select third party developers,” said Pascal.
He added: “We also focused on expanding our capacity by adding some amazing new talent, enhancing the capabilities of our European and Asian studios.
“On the games front, we acquired the full rights to MyVegas Bingo and assumed the ongoing development and operations of the product.”
Playstudios reaffirmed its full-year revenue expectations, anticipating somewhere between $305m and $325m for 2022 as a whole. In conclusion, Pascal said: “Our strategic priorities remain unchanged.
“As traditional leisure and retail businesses become more dependent on digital platforms to reach their audiences, we believe we are well positioned to deliver the scalable, cost-efficient consumer engagement they’re seeking.”
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