- Benchmark analyst Mike Hickey reiterates PLAYSTUDIOS Inc MYPS with a Buy and a $7 price target.
- MYPS delivered better than anticipated 4Q22 and FY22 financial results, exceeding consensus view and guidance on revenue and profit.
- The impact of Tetris and Brainium integration and related advertising growth led to the beat.
- Users were down in 4Q ex-Brainium, due to a negative economic backdrop impacting consumer behaviors.
- Management reiterated their desire to continue acquiring high-quality mobile game providers.
- MYPS initiated & completed a $10 million share repurchase program, $40 million remains on the authorization.
- MYPS ended the quarter with a strong balance sheet that included $134 million in cash post Brainium acquisition of $70 million, the $23 million in earn-out will not come to fruition.
- Scaling playAWARDS into the casual games business will increase platform exposure and legitimatize MYPS as the only comprehensive loyalty solution in the mobile gaming industry.
- The company announced a meaningful 14% headcount reduction.
- The analyst anticipates the successful integration of their newly acquired casual games will grow AEBITDA margins, as these products monetize through advertising and therefore do not pay a platform fee associated with in-app purchases.
- Price Action: MYPS shares traded higher by 19.2% at $4.14 on the last check Friday.
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