Q2 Earnings Highlights: PlayStudios (NASDAQ:MYPS) Vs The Rest Of The Gaming Solutions Stocks

Wrapping up Q2 earnings, we look at the numbers and key takeaways for the gaming solutions stocks, including PlayStudios (NASDAQ:MYPS) and its peers.

Gaming solution companies operate in a dynamic and evolving market, and the digital transformation of the gaming industry presents significant opportunities for innovation and growth, whether it be immersive slot machine terminals or mobile sports betting. However, the gaming solution industry is not without its challenges. Regulatory compliance is a crucial consideration as companies must navigate a complex and often fragmented regulatory landscape across different jurisdictions. Changes in regulations can impact product offerings, operational practices, and market access, requiring companies to maintain flexibility and adaptability in their business strategies. Additionally, the competitive nature of the industry necessitates continuous investment in research and development to stay ahead of competitors and meet evolving consumer demands.

The 7 gaming solutions stocks we track reported a decent Q2. As a group, revenues beat analysts’ consensus estimates by 2.4%.

Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. This year has been a different story as mixed inflation signals have led to market volatility, and while some gaming solutions stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3.3% since the latest earnings results.

Weakest Q2: PlayStudios (NASDAQ:MYPS)

Founded by a team of former gaming industry executives, PlayStudios (NASDAQ:MYPS) offers free-to-play digital casino games.

PlayStudios reported revenues of $72.59 million, down 6.7% year on year. This print fell short of analysts’ expectations by 2.6%. Overall, it was a weak quarter for the company with full-year revenue guidance missing analysts’ expectations and a miss of analysts’ daily active users estimates.

Andrew Pascal, Chairman and Chief Executive Officer of PLAYSTUDIOS, commented, “We had a busy and productive quarter completing many strategic initiatives that better position our company for future growth. While persistent industry weakness continues to be a challenge for our Social Casino portfolio, I believe we have opportunities in our portfolio that will eventually override this pressure. We have been steadily making progress on these efforts and continued to do so this quarter. Longer term, our focus remains on building a strong and durable business that can produce exceptional returns regardless of industry dynamics.”

PlayStudios delivered the weakest performance against analyst estimates, slowest revenue growth, and weakest full-year guidance update of the whole group. The company reported 13.6 million monthly active users, down 2% year on year. Unsurprisingly, the stock is down 28.2% since reporting and currently trades at $1.40.

Read our full report on PlayStudios here, it’s free.

Best Q2: Rush Street Interactive (NYSE:RSI)

Specializing in online casino gaming and sports betting, Rush Street Interactive (NYSE:RSI) is an operator of digital gaming platforms.

Rush Street Interactive reported revenues of $220.4 million, up 33.5% year on year, outperforming analysts’ expectations by 9.4%. It was an incredible quarter for the company with an impressive beat of analysts’ earnings estimates.

Rush Street Interactive scored the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 8.9% since reporting. It currently trades at $9.10.

Is now the time to buy Rush Street Interactive? Access our full analysis of the earnings results here, it’s free.

Inspired (NASDAQ:INSE)

Specializing in digital casino gaming, Inspired (NASDAQ:INSE) is a provider of gaming hardware, virtual sports platforms, and server-based gaming systems.

Inspired reported revenues of $75.6 million, down 4.8% year on year, exceeding analysts’ expectations by 1.7%. It was a decent quarter for the company with revenue and EPS exceeding earnings estimates.

Interestingly, the stock is up 6.8% since the results and currently trades at $8.44.

Read our full analysis of Inspired’s results here.

DraftKings (NASDAQ:DKNG)

Getting its start in daily fantasy sports, DraftKings (NASDAQ:DKNG) is a digital sports entertainment and gaming company.

DraftKings reported revenues of $1.10 billion, up 26.2% year on year, in line with analysts’ expectations. More broadly, it was an exceptional quarter for the company with an impressive beat of analysts’ earnings estimates.

The stock is down 2.6% since reporting and currently trades at $34.59.

Read our full, actionable report on DraftKings here, it’s free.

Accel Entertainment (NYSE:ACEL)

Established in Illinois, Accel Entertainment (NYSE:ACEL) is a provider of electronic gaming machines and interactive amusement terminals to bars and entertainment venues.

Accel Entertainment reported revenues of $309.4 million, up 5.7% year on year, surpassing analysts’ expectations by 2.7%. Overall, it was a good quarter for the company with a decent beat of analysts’ earnings estimates.

The stock is up 3.7% since reporting and currently trades at $11.49.

Read our full, actionable report on Accel Entertainment here, it’s free.

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