Shares fell 24.4% as investors reacted negatively to signs of revenue deceleration, particularly a sequential decline in flagship titles, and a cautious outlook driven by softening consumer demand and a deliberate pullback in marketing spend. Despite margin expansion, investors appeared unconvinced by the sustainability of growth amid lingering headwinds.
- Total revenue declined 1.8% sequentially to $731.1 million but grew 5.0% year-over-year.
- Adjusted EBITDA margin improved significantly to 28.2%, up from 16.8% in Q1, driven by reduced marketing spend.
- Revenue from top title Bingo Blitz decreased 5.6% sequentially and 9.5% year-over-year, reflecting deeper weakness in recently acquired, less engaged players.
- Direct-to-Consumer channel revenues rose 63.1% year-over-year but declined 1.7% sequentially, highlighting mixed traction.
- Management signaled caution, citing softer consumer sentiment and inflation pressures as reasons for a measured view on the second half, indicating risk of continued deceleration.
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