Nice to see a 20%-odd jump in the share price today, which takes shares in Playside back to an 18 month high (and double where it was in late Feb last year). Talk about a wild ride.

The catalyst of course was the latest Q2 result (see here), which delivered record revenue across all segments -- about double the previous corresponding quarter, and 33% from the preceding quarter.

Also very nice to see positive EBITDA, which came in at double the Sept quarter read, as well as a operating cash inflow of $11.2m which takes the cash balance to just over $38m (about 15% of the current market cap).

Playside even increased FY revenue guidance from $55-60m to $60-65m; about a 9% lift at the midpoints and will be a 63% improvement on the prior year. EBITDA is expected to be flat in the second half due to a first half skew and increased headcount (needed to support future growth) but is expected to be $11-13m for FY24.

Accounting for today's jump, that puts Playside on a forward EV/EBITDA ratio of ~21x. Doesn't seem excessive given the growth and runway, especially as with a healthy balance sheet and free cash flow generation.

Held.

Playside has struck a multi-game license with Warner Brothers. They'll produce two games based on Warner Brothers IP (I believe they own the rights to DC Universe, Harry Potter, Looney Tunes, Game of thrones, among others) -- we'll find out exactly what brands the games will be based on in the next 6 months or so. (I'm personally gunning for a Batman title!)

Playside will pay a license fee and provide Warner Bros with royalty payments based on the revenue they generate from the titles.

No specific financials mentioned, and the games could be a total flop, but it is encouraging that they are striking deals with such big name counterparties.

ASX announcement here

Held.

Some interesting comments at the AGM today (I wasn't there, just reading the ASX release)

The key point being an upgrade to FY24 revenue guidance, which they lifted from $50-55m to $55-60m. At the midpoint, that's a 50% lift on FY23.

Market not that impressed with Playside's results. They seem ok to me:

• Revenue up 90% (ex NFT sale)
• EBITDA and Cash flow positive in second half
• Well funded, with $32m in cash
• Guiding for (roughly) 37% growth in revenue for FY24

Revenue growth has been pretty strong historically, as they highlight here:

Shares now on a P/S of about 3.5x

Let's see what Gerry says later today when we catch up with him.

This one slipped past me yesterday -- Meta (Facebook parent) has engaged Playside to develop a VR title for its Quest device, based on the Dumb Ways To Die (DWTD) IP.

Playside will get a license fee as well as periodic development payments. They also get a share of net revenues in perpetuity.

They expect launch will take 18 months.

As a reminder, they bought the rights for DWTD for just $2.25m in 2021. They already made $9m just from NFT sales!! (yeah, a terrible "investment" for those that bought them, but it was great for PLY). Anyway, what a great purchase that's turned out to be.

This news has led Playside to guide for FY24 revenue of $50-55m. They recently told investors to expect $35m in revenue for FY23.

The top line growth has really been remarkable:

Also worth noting they have $30m in cash and were cash flow positive in the March quarter.

Yes, shares are on something like 4x sales. But maybe that's not so high given the growth and scalability of the business.

See full announcement here

The presentation today from Playside had a bit of new information. Specifically, the 12 month forward work for hire order book is $28.6m as of today (this compares to $4.3m in WFH revenue in the recent quarter).

They did just over $10m in WFH revenue in FY22, and they expect about $20m in FY23. So great to see some ongoing traction for a segment that generates about half of total revenue.

Also, interesting that they highlight the consolidation of the sector with some of the large deals out there, and strategic stakes in many mid-tier studios. Not sure if that's suggesting they could catch a bid?