Small-cap games developer Playside Studios [ASX:PLY] saw original IP revenue slump year-on-year (YoY) in 1QFY23, but its work-for-hire revenue rise as total revenue rose 60% YoY to $6.5 million.
Playside’s shares were modestly down in late Monday trade.
And the company’s shares are down 50% year-to-date.
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Playside’s financials and pipeline
Here are PLY’s highlights for the September quarter:
- Revenue up 60% year-on-year, from $4.0 million to $6.5 million (up 6.5% quarter-on-quarter).
- Original IP revenue down 14% to $2.3 million.
- Work-for-hire revenue up 211% to $4.1 million.
- Cash receipts of $7.2 million, up 105% YoY.
- Net cash position of $34.7 million.
Aside from its financial highlights, the company also drew attention to a few operational updates which included the global launch of its Legally Blonde game on Apple products, and soft launches for Dino Warfare, Idle Recycle, and Dumb Ways to Sleep games.
Playside has also launched its own publishing division, appointing Benn Skender as Chief Strategy Officer.
Playside’s CEO, Gerry Sakkas, mused on the past quarter:
‘We have continued to deliver strong revenue growth on last year, with a significant enhancement of our Work-For-Hire book since that time due to the addition of several AAA clients and an expansion in both the size and scope of the work we do for Meta. It was a busy quarter due to the timing of a number of milestones for our clients, namely, working on the Horizon Worlds experience ahead of the annual Meta Connect event and the launch of the collectible card game on mobile for Shiba Inu.
‘Pleasingly, our back catalogue of Original IP titles remains a consistent performer as we focus our attention towards optimising the performance of Legally Blonde and progressing The Godfather to global launch. We also prioritised work on having a playable version of World Boss available for patrons to play at Australia’s largest gaming festival, PAX, in early October.’
Playside extends work-for-hire agreement with Meta
Last week, PLY announced an extension of a work-for-hire agreement with Meta Platforms — the parent company of Facebook — for a further six months to end of 2023.
‘This is the third extension and expansion of our work-for-hire agreement with Meta since our IPO, which we believe reflects our ability to continue to add value as a trusted development partner in the VR space,” commented Sakkas.
‘With Meta Quest 2 helping to bring VR into the mainstream, and over US$1.5bn spent on games and apps in the Quest Store, we look forward to ongoing collaboration with Meta as it remains at the frontier of this growing consumer trend.’
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For Money Morning
