First Quarter Revenue of $74.1 Million, up
27.1% Year-over-Year
Launched myVEGAS Bingo in March, enabling the
company to enter one of the fastest growing casual game
categories
PLAYSTUDIOS, Inc. (“PLAYSTUDIOS” or the “Company”), an
award-winning developer of free-to-play casual games for mobile and
social platforms that offer real-world rewards to loyal players,
today announced financial results for the first quarter ended March
31, 2021.
First Quarter 2021 Financial Highlights
- Revenue was $74.1 million during the first quarter of 2021,
representing an increase of 27.1% year-over-year, compared to $58.3
million during the first quarter of 2020.
- Net income was $5.9 million during the first quarter of 2021,
representing an increase of 7.8% year-over-year, compared to net
income of $5.5 million during the first quarter of 2020.
- AEBITDA, a non-GAAP financial measure defined below, was $14.5
million during the first quarter of 2021, representing an increase
of 7.7% year-over-year, compared to AEBITDA of $13.5 million during
the first quarter of 2020.
Andrew Pascal, Chief Executive Officer of PLAYSTUDIOS commented,
“2021 is off to a strong start. First quarter revenue growth of 27%
has accelerated compared to last year’s levels, driven by the
performance of our core portfolio of games. Looking ahead, we
expect the results for the rest of 2021 will reflect the
combination of the current momentum in our existing portfolio with
new game expansions into two of the fastest growing game categories
— bingo and idle role-playing games, or RPG.
“During March, we launched myVEGAS Bingo, a game that elevates
classic bingo with enhanced social features and the opportunity to
earn real-world rewards. While it remains early, initial results
are going well. We are also on track to launch Kingdom Boss, our
entry into the idle RPG category during the second half of 2021.
The entry into these new and rapidly growing categories should
allow us to leverage our loyalty mechanics and our player network
and enable us to continue to attract, retain, and monetize a
growing player base.
“In addition to our 2021 new game launches, looking ahead to the
closing of the business combination with Acies and the reopening of
the economy, which will reactivate many of the rewards in our
playAWARDS program, we feel we are well-positioned to enjoy
continued organic growth as well as act on key strategic
acquisitions. We are excited by the opportunity to continue to
scale our unique playAWARDS loyalty program for the benefit of our
shareholders.”
Recent Business Highlights
- Started efforts to diversify the portfolio with the launch of
myVEGAS Bingo in March 2021, expanding into one of the fastest
growing game categories using its proven approach.
- Remain on schedule to launch Kingdom Boss, the Company’s entry
into the fast-growing idle RPG category during the second half of
2021. The Company intends to leverage its entry into this category
to attract both new rewards partners and players, expanding the
reward offerings across sports, live entertainment, concerts,
amusement and theme parks and other attractions.
- Expanded strategic partnership with MGM Resorts International
by adding MGM Springfield hotel and casino resorts to the
playAWARDS Loyalty Platform, becoming the 17th MGM Resorts
International property featured in the playAWARDSs catalog.
- Continued to add new and popular content to the myVEGAS Slots
app such as King & Kraken, an innovative new social game
combining traditional virtual slot gaming with social quests and
shared rewards, and SHAQ9, which puts fans next to a virtual
version of NBA Hall-of-Famer Shaquille O’Neal as they spin reel
slots, unlock mini-games, and earn valuable loyalty points.
Business Combination Transaction
On February 1, 2021, PLAYSTUDIOS entered into a business
combination agreement with Acies Acquisition Corp. (Nasdaq: ACAC)
(“Acies”). The business combination is expected to close during the
second or third quarters of 2021. Upon the closing of the
transaction, and assuming none of Acies public stockholders elect
to redeem their shares, the combined company is expected to have
approximately $290 million of cash and no debt. The closing of the
transaction will result in the Company becoming a Nasdaq listed
company under the ticker symbol “MYPS.”
About PLAYSTUDIOS, Inc.
PLAYSTUDIOS is the developer and operator of award-winning
free-to-play casual games for mobile and social platforms. The
company’s collection of original and published titles is powered by
its groundbreaking playAWARDS loyalty marketing platform, which
enables players to earn real-world rewards from a portfolio of
global entertainment, retail, technology, travel, leisure, and
gaming brands across 17 countries and four continents. Founded by a
team of veteran gaming, hospitality, and technology entrepreneurs,
PLAYSTUDIOS brings together beautifully designed mobile gaming
content with an innovative loyalty platform in order to provide its
players with an unequaled entertainment experience and its partners
with actionable business insights. To learn more about PLAYSTUDIOS,
visit playstudios.com
About Acies Acquisition Corp.
Acies Acquisition Corp. (Nasdaq: ACAC) is a newly organized
blank check company, formed for the purpose of effecting a merger,
share exchange, asset acquisition, share purchase, reorganization
or similar business combination with one or more businesses. The
Company was established in October 2020 to focus on identifying a
business combination target within the live, location-based and
mobile experiential entertainment industries. To learn more about
Acies, visit https://aciesacq.com
Key Performance Indicators
We manage our business by regularly reviewing several key
operating metrics to track historical performance, identify trends
in player activity, and set strategic goals for the future. Our key
performance metrics are impacted by several factors that could
cause them to fluctuate on a quarterly basis, such as platform
providers’ policies, seasonality, player connectivity, and the
addition of new content to games. We believe these measures are
useful to investors for the same reasons. The key performance
indicators may differ from similarly titled measures presented by
other companies.
Daily Active Users (“DAU”): DAU is
defined as the number of individuals who played a game on a
particular day. We track DAU by the player ID, which is assigned
for each game installed by an individual. As such, an individual
who plays two different games on the same day is counted as two DAU
while an individual who plays the same game on two different
devices is counted as one DAU. Average DAU is calculated as the
average of the DAU for each day during the period presented. We use
DAU as a measure of audience engagement to help us understand the
size of the active player base engaged with our games on a daily
basis.
Monthly Active Users (“MAU”): MAU
is defined as the number of individuals who played a game in a
particular month. As with DAU, an individual who plays two
different games in the same month is counted as two MAU while an
individual who plays the same game on two different devices is
counted as one MAU. Average MAU is calculated as the average of MAU
for each calendar month during the period presented. We use MAU as
a measure of audience engagement to help us understand the size of
the active player base engaged with our games on a monthly
basis.
Daily Paying Users (“DPU”): DPU is
defined as the number of individuals who made a purchase in a
mobile game during a particular day. As with DAU and MAU, we track
DPU based on account activity. As such, an individual who makes a
purchase on two different games in a particular day is counted as
two DPU while an individual who makes purchases in the same game on
two different devices is counted as one DPU. Average DPU is
calculated as the average of the DPU for each day during the period
presented. We use DPU to understand the size of our active player
base that makes in-game purchases. This focus directs our strategic
goals in setting player acquisition and pricing strategy.
Daily Payer Conversion: Daily Payer
Conversion is defined as DPU as a percentage of DAU on a particular
day. Average Daily Payer Conversion is calculated as the average
DPU divided by average DAU for a given period. We use Daily Payer
Conversion to understand the monetization of our active
players.
Average Daily Revenue Per DAU
(“ARPDAU”): ARPDAU is defined for a given period as the
average daily revenue per average DAU, and is calculated as game
and advertising revenue for the period, divided by the number of
days in the period, divided by the average DAU during the period.
We use ARPDAU as a measure of overall monetization of our
players.
Non-GAAP Financial Measures
To provide investors with information in addition to results as
determined by GAAP, the Company discloses AEBITDA as a non-GAAP
measure that management believes provides useful information to
investors. This measure is not a financial measure calculated in
accordance with GAAP and should not be considered as a substitute
for revenue, net income or any other operating performance measure
calculated in accordance with GAAP, and may not be comparable to a
similarly titled measure reported by other companies.
We define AEBITDA as net income before interest, income taxes,
depreciation and amortization, restructuring and related costs
(consisting primarily of severance and other restructuring related
costs), stock-based compensation expense, and other income and
expense items (including special infrequent items, foreign currency
gains and losses, and other non-cash items). We also present
Adjusted EBITDA margin, a non-GAAP measure, which we calculate as
Adjusted EBITDA as a percentage of net revenues.
We believe that the presentation of AEBITDA provides useful
information to investors regarding the Company’s results of
operations because the measure assists both investors and
management in analyzing and benchmarking the performance and value
of our business. Adjusted EBITDA provides an indicator of
performance that is not affected by fluctuations in certain costs
or other items. Accordingly, management believes that this measure
is useful for comparing general operating performance from period
to period, and management relies on this measure for planning and
forecasting of future periods. Additionally, this measure allows
management to compare results with those of other companies that
have different financing and capital structures. However, other
companies may define AEBITDA differently, and as a result, our
measure of Adjusted EBITDA may not be directly comparable to that
of other companies.
Forward-Looking Statements
This press release includes "forward-looking statements" within
the meaning of the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995. The Company's and Acies’
actual results may differ from their expectations, estimates and
projections and consequently, you should not rely on these forward
looking statements as predictions of future events. Words such as
"expect," "estimate," "project," "budget," "forecast,"
"anticipate," "intend," "plan," "may," "will," "could," "should,"
"believes," "predicts," "potential," "continue," and similar
expressions are intended to identify such forward-looking
statements. These forward-looking statements include, without
limitation, the Company's and Acies expectations with respect to
the closing of the business combination transaction between the
Company and Acies; the future performance and anticipated financial
impacts of the proposed business combination, the satisfaction of
the closing conditions to the proposed transaction, the timing of
the completion of the proposed transaction, future financial
condition and performance of PLAYSTUDIOS and expected financial
impacts of the transaction (including future revenue, Adjusted
EBITDA, pro forma equity value and cash balance), the PIPE
transaction, the level of redemptions of Acies’ public stockholders
and the products and markets and expected future performance and
market opportunities of PLAYSTUDIOS. These forward-looking
statements involve significant risks and uncertainties that could
cause the actual results to differ materially from the expected
results. Most of these factors are outside the Company's and Acies’
control and are difficult to predict. Factors that may cause such
differences include, but are not limited to: (1) the risk that the
transaction may not be completed in a timely manner or at all,
which may adversely affect the price of Acies’ securities; (2) the
risk that the transaction may not be completed by Acies’ business
combination deadline and the potential failure to obtain an
extension of the business combination deadline if sought by Acies
(3) the failure to satisfy the conditions to the consummation of
the transaction, including the approval of the merger agreement by
the stockholders of Acies, the satisfaction of the minimum trust
account amount following any redemptions by Acies’ public
stockholders and the receipt of certain governmental and regulatory
approvals; (4) the lack of a third party valuation in determining
whether or not to pursue the proposed transaction; (5) the
inability to complete the PIPE transaction; (6) the effect of the
announcement or pendency of the transaction on the Company’s
business relationships, operating results, and business generally;
(7) the ability to maintain the listing of Acies’ securities on a
national securities exchange; (8) changes in the competitive and
regulated industries in which the Company operates, variations in
operating performance across competitors, changes in laws and
regulations affecting the Company’s business and changes in the
combined capital structure; (9) the ability to implement business
plans, forecasts, and other expectations after the completion of
the proposed transaction, and to identify and realize additional
opportunities; (10) costs related to the transaction and the
failure to realize anticipated benefits of the transaction or to
realize estimated pro forma results and underlying assumptions,
including with respect to estimated shareholder redemptions; or
(11) other risks and uncertainties included in Acies’ or the
Company's other filings with the U.S. Securities and Exchange
Commissions (the “SEC”). The foregoing list of factors is not
exclusive, and readers should also refer to those risks that will
be included under the heading “Risk Factors” in the registration
statement on Form S-4 (File No. 333-253135) containing the proxy
statement/prospectus relating to the proposed business combination
filed by Acies with the SEC and those included under the heading
“Risk Factors” in the final prospectus of Acies related to its
initial public offering and those included in other filings made by
Acies or the Company with the SEC from time to time. Readers are
cautioned not to place undue reliance upon any forward-looking
statements in this press release, which speak only as of the date
made. Acies and the Company do not undertake or accept any
obligation or undertaking to release publicly any updates or
revisions to any forward-looking statements in this press release
to reflect any change in its expectations or any change in events,
conditions or circumstances on which any such statement is
based.
No Offer or Solicitation
This press release shall not constitute a solicitation of a
proxy, consent or authorization with respect to any securities or
in respect of the proposed transaction. This press release shall
also not constitute an offer to sell or the solicitation of an
offer to buy any securities, nor shall there be any sale of
securities in any states or jurisdictions in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such jurisdiction.
No offering of securities shall be made except by means of a
prospectus meeting the requirements of Section 10 of the Securities
Act of 1933, as amended.
Additional Information
In connection with the proposed business combination, on
February 16, 2021, Acies filed a preliminary registration statement
on Form S-4 with the Securities and Exchange Commission (the
“SEC”), which includes a preliminary proxy statement/prospectus,
that will be both the proxy statement to be distributed to holders
of Acies’ common stock in connection with its solicitation of
proxies for the vote by Acies’ stockholders with respect to the
proposed business combination and other matters as may be described
in the registration statement, as well as the prospectus relating
to the offer and sale of the securities to be issued in the
business combination. After the registration statement is declared
effective, Acies will mail a definitive proxy statement/prospectus
and other relevant documents to its stockholders. This document
does not contain all the information that should be considered
concerning the proposed business combination and is not intended to
form the basis of any investment decision or any other decision in
respect of the business combination. Acies’ stockholders, the
Company’s stockholders and other interested persons are advised to
read, when available, the preliminary proxy statement/prospectus
included in the registration statement and the amendments thereto
and the definitive proxy statement/prospectus and other documents
filed in connection with the proposed business combination, as
these materials will contain important information about the
Company, Acies and the business combination. When available, the
definitive proxy statement/prospectus and other relevant materials
for the proposed business combination will be mailed to
stockholders of Acies as of a record date to be established for
voting on the proposed business combination. Acies’ stockholders
and the Company’s stockholders will also be able to obtain copies
of the proxy statement / prospectus and other documents filed with
the SEC, without charge, once available, at the SEC’s website at
www.sec.gov, or by directing a request to: Acies Acquisition Corp.,
1219 Morningside Drive, Suite 110, Manhattan Beach, CA 90266.
SOURCE: Acies Acquisition Corp.
PLAYSTUDIOS, INC.
CONSOLIDATED BALANCE
SHEETS
(Unaudited and in thousands,
except par value amounts)
March 31,
December 31,
2021
2020
ASSETS
Current assets:
Cash and cash equivalents
$
39,475
$
48,927
Receivables
31,961
16,616
Prepaid expenses
2,566
2,429
Income tax receivable
5,938
6,959
Other current assets
6,113
2,854
Total current assets
86,053
77,785
Property and equipment, net
5,687
6,201
Internal-use software, net
40,074
38,756
Goodwill
5,059
5,059
Intangibles, net
1,512
1,624
Deferred income taxes
3,109
3,109
Other long-term assets
4,379
1,927
Total non-current assets
59,820
56,676
Total assets
$
145,873
$
134,461
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable
$
5,348
$
4,717
Accrued liabilities
32,612
29,089
Total current liabilities
37,960
33,806
Minimum guarantee liability
250
300
Deferred income taxes
2,860
2,970
Other long-term liabilities
1,185
1,306
Total non-current liabilities
4,295
4,576
Total liabilities
$
42,255
$
38,382
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.00005 par value
(168,638 shares authorized, 162,596 shares issued and outstanding
as of March 31, 2021 and December 31, 2020; aggregate liquidation
preference of $33,750 as of March 31, 2021 and December 31,
2020)
8
8
Common stock, $0.00005 par value (506,000
shares authorized, 241,347 and 238,186 shares issued and
outstanding as of March 31, 2021 and December 31, 2020,
respectively)
12
12
Additional paid-in capital
73,693
71,776
Retained earnings
29,720
23,802
Accumulated other comprehensive income
185
481
Total stockholders’ equity
103,618
96,079
Total liabilities and stockholders’
equity
$
145,873
$
134,461
PLAYSTUDIOS, INC.
CONSOLIDATED STATEMENT OF
OPERATIONS
(Unaudited and in thousands,
except per share data)
Three Months Ended March
31,
2021
2020
Net revenues
$
74,097
$
58,302
Operating expenses:
Cost of revenue (1)
24,488
19,734
Selling and marketing
17,000
11,926
General and administrative
4,279
5,710
Research and development
14,746
9,483
Depreciation and amortization
6,034
5,388
Total operating costs and expenses
66,547
52,241
Income from operations
7,550
6,061
Other income (expense), net:
Interest income (expense), net
(42)
54
Other expense, net
(242)
(188)
Total other expense, net
(284)
(134)
Income before income taxes
7,266
5,927
Provision for income taxes
(1,348)
(435)
Net income
$
5,918
$
5,492
Net income attributable to common
stockholders:
Basic
$
1,918
$
1,654
Diluted
$
2,099
$
1,729
Net income attributable to common
stockholders per share:
Basic
$
0.01
$
0.01
Diluted
$
0.01
$
0.01
(1) Amounts exclude depreciation and
amortization.
PLAYSTUDIOS, INC. RECONCILIATION OF NET
INCOME TO AEBITDA (Unaudited and in thousands, except
percentages)
The following table sets forth the reconciliation of AEBITDA and
AEBITDA margin, which we calculate as AEBITDA as a percentage of
net revenues, to net income and net income margin, the most
directly comparable GAAP measures (in thousands, except
percentages).
Three Months Ended March
31,
2021
2020
Net income
$
5,918
$
5,492
Depreciation & amortization
6,034
5,388
Income tax (benefit) expense
1,348
435
Stock-based compensation expense
900
625
Special infrequent(1)
-
1,400
Restructuring expense(2)
56
28
Other(3)
284
134
AEBITDA
14,540
13,502
Net revenues
74,097
58,302
Margin as a % of net
revenue
Net income margin
8.0%
9.4%
AEBITDA margin
19.6%
23.2%
(1)
Amounts reported during the three months ended March 31, 2020
represent charitable donations made by us related to the COVID-19
pandemic.
(2)
Amounts reported during the three months ended March 31, 2021
and March 31, 2020 consist of severance-related costs.
(3)
Amounts reported in “Other” include interest expense, interest
income, foreign currency gains/losses, and non-cash gains/losses on
the disposal of assets.
PLAYSTUDIOS, INC.
SUPPLEMENTAL DATA – KEY
PERFORMANCE INDICATORS
(Unaudited and in thousands,
except percentages and ARPDAU)
Three Months Ended March
31,
2021
2020
$ Change
% Change
Average DAU
1,259
1,612
(353)
(21.9)%
Average MAU
3,733
4,577
(844)
(18.4)%
Average DPU
36
33
3
9.1%
Average Daily Payer Conversion
2.9%
2.0%
0.9pp
45.0%
ARPDAU (in dollars)
$
0.65
$
0.40
$
0.25
62.5%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210511006250/en/
Investor Relations Jacques Cornet IR@playstudios.com Media
Relations Doug Donsky / Amy Rossetti media@playstudios.com Acies
Acquisition Corp. info@aciesacq.com
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