PLAYSTUDIOS, Inc. (NASDAQ:MYPS) Q3 2023 Earnings Conference Call November 2, 2023 5:00 PM ET

Company Participants

Samir Jain - Head of IR and Treasury

Andrew Pascal - Chairman and CEO

Scott Peterson - CFO

Conference Call Participants

Ryan Sigdahl - Craig Hallum

David Pang - Stifel

Greg Gibas - Northland Securities

Operator

Greetings, and welcome to the PLAYSTUDIO's Third Quarter 2023 Earnings Call. [Operator Instructions]. As a reminder, this conference is being recorded.

It is now my pleasure to introduce Samir Jain, Head of Treasury and Investor Relations. Thank you. You may begin.

Samir Jain

Thank you, operator. Good afternoon, and thank you for joining us for PLAYSTUDIO's third quarter 2023 earnings call. Joining me on the call today are Chairman and CEO, Andrew Pascal; and our CFO, Scott Peterson.

Before we begin, let me remind you that during the course of this call, we will make forward-looking statements. These statements are based on our current expectations and beliefs and are subject to risks and uncertainties that could cause actual results to differ materially. Please refer to our SEC filings for a discussion of the risks and uncertainties that may affect our future results.

We will also discuss certain non-GAAP financial measures during this call. These measures should not be considered as a substitute for financial results prepared in accordance with GAAP. Our results are prepared in accordance with GAAP and a reconciliation to comparable GAAP measures will be provided in our third quarter earnings release and in our SEC filings.

With that, I'll pass the call to Andrew.

Andrew Pascal

Thank you, Samir, and welcome, everyone, to our third quarter 2023 earnings call.

Earlier today, we published a press release containing our financial results along with commentary for the recently completed third quarter. As always, our release contains considerable financial disclosures, as well as our thoughts on topics we believe are pertinent to our company. I hope you had a chance to read the release and if not, I'd encourage you to do so. Rather than rehash what's contained there, Scott and I will spend a few minutes highlighting some key developments and save the majority of today's time for your questions.

Adjusted EBITDA, and more importantly, EBITDA margins increased meaningfully versus year ago results. A number of initiatives that contributed to this, including our focus on operating efficiency and a more diversified business model, that now sees nearly 25% of our revenues coming from higher-margin advertising sales. We believe there's still more opportunities to improve our cost structure and optimize productivity, which will further improve margin gains going forward.