PLAYSTUDIOS, Inc. reported a net revenue of $62.7 million for the first quarter of 2025, a decline of 19.4% compared to $77.8 million in the same period of 2024. The company's operating expenses also decreased by 17.7% to $65.5 million, resulting in an operating loss of $2.7 million, up from a loss of $1.7 million a year earlier. The net loss for the quarter was $2.9 million, significantly higher than the $567,000 loss reported in the prior year, reflecting a net loss margin of 4.6%.
The decrease in revenue was primarily attributed to a $9.6 million drop in virtual currency sales, which was influenced by a reduction in daily paying users (DPU) and a $5.6 million decline in advertising revenue, driven by lower daily active users (DAU). The company's playGAMES segment, which includes its social casino games, saw a revenue decrease of 19.6%, while the playAWARDS segment generated $154,000 in revenue, marking its first contribution since its inception.
In terms of operational metrics, the average DAU fell by 24.7% to 2,632, and the average monthly active users (MAU) decreased by 22.6% to 11,422. The average DPU also declined by 22.2%, indicating challenges in player engagement and monetization. Despite these declines, the average revenue per daily active user (ARPDAU) increased by 8.3% to $0.26, suggesting improved monetization strategies for the remaining active players.
Strategically, PLAYSTUDIOS has been focusing on enhancing its playAWARDS loyalty program and expanding its game portfolio, including the acquisition of Pixode Games Limited in July 2024, which is expected to diversify its revenue streams. The company has also undergone a significant reorganization, reducing its workforce by approximately 30% to streamline operations and reduce costs. As of March 31, 2025, PLAYSTUDIOS had cash and cash equivalents of $107.1 million, which it believes will be sufficient to fund operations for at least the next twelve months, although it may seek additional financing to support growth initiatives.
About PLAYSTUDIOS, Inc.
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