PlayStudios (MYPS) Reports Earnings Tomorrow. What To Expect

Adam Hejl /
2023/05/08 5:06 am EDT
Add to Watchlist

Digital casino game platform PlayStudios (NASDAQ:MYPS) will be reporting results tomorrow afternoon. Here's what you need to know.

Last quarter PlayStudios reported revenues of $79.4 million, up 10.4% year on year, beating analyst revenue expectations by 13.2%. It was an very strong quarter for the company, with an impressive beat of analyst estimates and growing number of users. The company reported 11.5 million monthly active users, up 137% year on year.

Is PlayStudios buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting PlayStudios's revenue to grow 4.23% year on year to $73.4 million, improving on the 4.92% year-over-year decline in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.09 per share.

PlayStudios Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates four times over the last two years.

Looking at PlayStudios's peers in the consumer internet segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. Skillz's revenues decreased 59.3% year on year, missing analyst estimates by 12.4% and Coursera reported revenues up 22.6% year on year, exceeding estimates by 6.39%. Skillz traded down 4.06% on the results, Coursera was flat on the results. Read our full analysis of Skillz's results here and Coursera's results here.

There is still much uncertainty in the markets. The Federal Reserve's hawkish stance on rates, meant to tame inflation, remains a key market narrative. There is an added wrinkle now with troubles in the banking sector, triggered by Silicon Valley Bank's fairly sudden and surprising collapse. Given these, the question is whether higher rates (which dampen economic activity) and potentially less lending from the overall banking sector will trigger a recession. While some tech stocks have recovered year-to-date, most are still well off their 52-week highs. PlayStudios is up 9.69% over the last month, and is heading into the earnings with analyst price target of $5.4, compared to share price of $4.3.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.