Second Quarter Revenue of $70.8 Million
First Half 2021 Revenue of $144.9 Million, up
6.4% year-over-year
Company positioned to execute M&A growth
strategy with enhanced liquidity and the hiring of a corporate
development veteran
PLAYSTUDIOS, Inc. (NASDAQ: MYPS) (“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 second
quarter and six months ended June 30, 2021.
Second Quarter and First Half 2021 Financial
Highlights
- Revenue was $70.8 million during the second quarter of 2021,
compared to $77.9 million during the second quarter of 2020. The
year-over-year change reflects lift attributable to the
stay-at-home restrictions that were in place during the second
quarter of 2020. For the six months ended June 30, 2021, revenue
grew 6.4% to $144.9 million compared to $136.2 million during the
same period in 2020.
- Net loss was $7.0 million during the second quarter of 2021,
compared to net income of $13.0 million during the second quarter
of 2020. Net loss was $1.1 million during the six months ended June
30, 2021, compared to net income of $18.5 million during the same
period in 2020.
- AEBITDA, a non-GAAP financial measure defined below, was $3.4
million during the second quarter of 2021, compared to $22.5
million during the second quarter of 2020. AEBITDA was $17.9
million during the six months ended June 30, 2021, compared to
$36.0 million during the same period in 2020.
Andrew Pascal, Chief Executive Officer of PLAYSTUDIOS,
commented, “The first half of 2021 was quite eventful, and
significant in positioning the Company for future growth. We
completed our public listing, raising $185 million of net primary
capital, launched myVEGAS Bingo to a global audience, expanded our
rewards catalog with new partners and categories, and recruited key
hires in Corporate Development and Talent Management.”
He further added, “On the organic growth front, the initial
quarterly results of myVEGAS Bingo are encouraging. We are seeing
healthy retention, engagement, and monetization trends.
Notwithstanding the current high CPI environment where we are being
disciplined and thoughtful around user acquisition, we remain
confident that myVEGAS Bingo will be a franchise game. On the
external growth front, with the strength of our balance sheet, the
proven impact of our playAWARDS program, and the addition of an
experienced and capable head of corporate development, we’re poised
to execute our M&A plans and more fully realize the power of
our unique model.”
Recent Business Highlights
- Positioned the company to execute its M&A strategy with up
to $380 million of liquidity—$230 million of cash, and an
additional $150 million of revolver capacity (including a $75
million accordion feature).
- Hired Jason Hahn, an accomplished and capable leader into the
role of Head of Corporate and Business Development. Jason enhances
our executive leadership team with his 15+ years of strategic,
corporate development, and banking experience from companies such
as NBC Universal, Activision Blizzard, and J.P. Morgan.
- Expanded the collection of playAWARDS partners, adding new
rewards from Intercontinental Hotel Group, Innovative Music, City
Winery, Singing Hills Golf Resort, Peppermill Resorts, and
additional properties from MGM Resorts International.
- Secured strategic relationships with Anschutz Entertainment
Group (AEG) and Bowlero Bowling and Amusement centers.
- Entered the casual market with the global launch of myVEGAS
Bingo. Amassed an initial audience of engaged and avid players with
strong monetization and retention trends.
- Advanced the development of Kingdom Boss, the Company’s entry
into the fast-growing idle RPG category, which is expected to
launch later this year.
- Continued to add new content and features to its core
collection of social casino franchises – myVEGAS Slots, POP! Slots,
and myKONAMI Slots.
Outlook
The Company expects its full-year 2021 revenue to be in the
range of $290 million to $300 million. In addition, full-year
AEBITDA is expected to be in the range of $35 million to $40
million.
We have not provided the most directly comparable GAAP measure
for our AEBITDA outlook because certain items that are part of the
projected non-GAAP financial measure are outside of our control or
cannot be reasonably estimated without unreasonable effort.
Conference Call Details
PLAYSTUDIOS will host a conference call at 5:00 p.m. Eastern
Time today, which will include a brief discussion of the results
followed by a question and answer session. In addition,
supplemental slides will be posted prior to the start of the call
on PLAYSTUDIOS' Investor Relations website at
http://ir.playstudios.com.
The call will be accessible via the Internet through
https://ir.playstudios.com or by calling (844) 602-0380 for
domestic callers and (862) 298-0970 for international callers.
A replay of the call will be archived at
https://ir.playstudios.com.
About PLAYSTUDIOS, Inc.
PLAYSTUDIOS (Nasdaq: MYPS) 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.
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. For more information on our key performance
indicators, please refer to the definitions below and the
“Supplemental Data—Key Performance Indicators” section of this
press release.
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.
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
AEBITDA margin, a non-GAAP measure, which we calculate as AEBITDA
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. AEBITDA 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 AEBITDA
may not be directly comparable to that of other companies. For
further information regarding these non-GAAP measures, including
the reconciliation of these non-GAAP financial measures to their
most directly comparable GAAP financial measures, please refer to
the “Reconciliation of Net Income (Loss) to AEBITDA” section of
this press release.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995, including statements regarding our future financial and
operating performance, our liquidity and capital resources, the
development and release plans of our games, and our mergers and
acquisition strategy, all of which involve risks and uncertainties.
Actual results may differ materially from the results predicted,
and reported results should not be considered as an indication of
future performance. Forward-looking statements include all
statements that are not historical facts and can be identified by
terms such as “may,” “might,” “will,” “should,” “expects,” “plans,”
“anticipates,” “intends,” “believes,” “estimates,” “predicts,”
“potential” or “continue,” the negative of these terms and other
comparable terminology that conveys uncertainty of future events or
outcomes. These forward-looking statements involve known and
unknown risks, uncertainties, assumptions and other factors that
may cause actual results to differ materially from statements made
in this press release, including our ability to develop and publish
our games; risks related to defects, errors, or vulnerabilities in
our games and IT infrastructure; our ability to attract new, and
retain existing, players of our games; the failure to timely
develop and achieve market acceptance of new games and maintain the
popularity of our existing games; rapidly evolving technological
developments in the gaming market; competition in the industry in
which we operate; our financial performance; our ability to execute
merger and acquisition transactions; legal and regulatory
developments; and general market, political, economic and business
conditions. Other potential risks and uncertainties that could
cause actual results to differ from the results predicted include,
among others, those risks and uncertainties included under the
captions “Risk Factors” and “Management’s Discussion and Analysis
of Financial Condition and Results of Operations” in our
registration statement on Form S-1 filed with the Securities and
Exchange Commission (the “SEC”) on July 28, 2021 and in other
filings we make with the SEC from time to time, including our
Quarterly Report on Form 10-Q for the quarterly period ended June
30, 2021, to be filed with the SEC. All information provided in
this release is based on information available to us as of the date
of this press release and any forward-looking statements contained
herein are based on assumptions that we believe are reasonable as
of this date. Undue reliance should not be placed on the
forward-looking statements in this press release, which are
inherently uncertain. We undertake no duty to update this
information unless required by law.
PLAYSTUDIOS, INC.
CONSOLIDATED STATEMENT OF
OPERATIONS
(Unaudited and in thousands,
except per share data)
Three Months Ended June
30,
Six Months Ended June
30,
2021
2020
2021
2020
Net revenues
$
70,822
$
77,870
$
144,919
$
136,172
Operating expenses:
Cost of revenue(1)
23,032
26,625
47,520
46,359
Selling and marketing
24,187
14,228
41,187
26,154
General and administrative
12,398
3,811
16,677
9,521
Research and development
17,296
11,647
32,042
21,130
Depreciation and amortization
6,898
5,440
12,932
10,828
Total operating costs and expenses
83,811
61,751
150,358
113,992
Income (loss) from operations
(12,989
)
16,119
(5,439
)
22,180
Other (income) expense, net:
Change in fair value of warrant
liabilities
110
—
110
—
Interest income (expense), net
(107
)
(41
)
(149
)
13
Other income (expense), net
113
203
(129
)
15
Total other income (expense), net
116
162
(168
)
28
Income (loss) before income taxes
(12,873
)
16,281
(5,607
)
22,208
Income tax benefit (expense)
5,838
(3,322
)
4,490
(3,757
)
Net income (loss)
$
(7,035
)
$
12,959
$
(1,117
)
$
18,451
Net income (loss) per share attributable
to Class A and Class B common stockholders:
Basic
$
(0.07
)
$
0.14
$
(0.01
)
$
0.20
Diluted
$
(0.07
)
$
0.13
$
(0.01
)
$
0.18
Weighted average shares of common stock
outstanding:
Basic
99,297
93,071
97,251
93,023
Diluted
99,297
101,560
97,251
100,277
(1) Amounts exclude depreciation and
amortization.
PLAYSTUDIOS, INC.
CONSOLIDATED BALANCE
SHEETS
(Unaudited and in thousands,
except par value amounts)
June 30, 2021
December 31,
2020
ASSETS
Current assets:
Cash and cash equivalents
$
229,901
$
48,927
Receivables
25,655
16,616
Prepaid expenses
3,156
2,429
Income tax receivable
10,454
6,959
Other current assets
483
2,854
Total current assets
269,649
77,785
Property and equipment, net
5,254
6,201
Internal-use software, net
42,358
38,756
Goodwill
5,059
5,059
Intangibles, net
1,400
1,624
Deferred income taxes
5,759
3,109
Other long-term assets
4,696
1,927
Total non-current assets
64,526
56,676
Total assets
$
334,175
$
134,461
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable
8,662
4,717
Warrant liabilities
20,344
—
Accrued liabilities
14,651
29,089
Total current liabilities
43,657
33,806
Minimum guarantee liability
200
300
Deferred income taxes
2,556
2,970
Other long-term liabilities
1,739
1,306
Total non-current liabilities
4,495
4,576
Total liabilities
$
48,152
$
38,382
Commitments and contingencies
Stockholders’ equity:
Common stock, $0.00005 par value (117,918
shares authorized, none and 93,399 shares issued and outstanding as
of June 30, 2021 and December 31, 2020, respectively)
—
—
Class A common stock, $0.0001 par value
(2,000,000 shares authorized, 109,623 and 74,422 shares issued and
outstanding as of June 30, 2021 and December 31, 2020,
respectively)
11
8
Class B common stock, $0.0001 par value
(25,000,000 shares authorized, 16,130,300 shares issued and
outstanding as of June 30, 2021 and December 31, 2020.
2
2
Additional paid-in capital
262,931
71,786
Retained earnings
22,685
23,802
Accumulated other comprehensive income
394
481
Total stockholders’ equity
286,023
96,079
Total liabilities and stockholders’
equity
$
334,175
$
134,461
PLAYSTUDIOS, INC.
RECONCILIATION OF NET INCOME
(LOSS) 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 (loss) and
net income (loss) margin, the most directly comparable GAAP
measures.
Three Months Ended June
30,
Six Months Ended June
30,
2021
2020
2021
2020
Net income (loss)
$
(7,035
)
$
12,959
$
(1,117
)
$
18,451
Depreciation & amortization
6,898
5,440
12,932
10,828
Income tax expense
(5,838
)
3,322
(4,490
)
3,757
Stock-based compensation expense
1,946
730
2,846
1,355
Change in fair value of warrant
liability
(110
)
—
(110
)
—
Special infrequent(1)
7,500
27
7,500
1,427
Restructuring and related(2)
20
50
76
78
Other(3)
(5
)
(67
)
279
67
AEBITDA
3,376
22,461
17,916
35,963
GAAP revenue
70,822
77,870
144,919
136,172
Margin as a % of
revenue
Net income (loss) margin
(9.9
)%
16.6
%
(0.8
)%
13.5
%
AEBITDA margin
4.8
%
28.8
%
12.4
%
26.4
%
(1)
Amounts reported during the three and six
months ended June 30, 2021 and 2020 represent (i) charitable
donations made by us related to the COVID-19 pandemic (ii) the
transaction bonus per the terms of the merger agreement related to
our business combination with Acies Acquisition Corp. (the “Merger
Agreement”) and (iii) a charitable donation per the terms of the
Merger Agreement.
(2)
Amounts reported during the three and six
months ended June 30, 2021 and 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 June
30,
Six Months Ended June
30,
2021
2020
Change
% Change
2021
2020
Change
% Change
Average DAU
1,253
1,548
(295
)
(19.1
)%
1,256
1,580
(324
)
(20.5
)%
Average MAU
4,297
4,466
(169
)
(3.8
)%
4,017
4,521
(504
)
(11.1
)%
Average DPU
34
36
(2
)
(5.6
)%
35
34
1
2.9
%
Average Daily Payer Conversion
2.7
%
2.3
%
0.4pp
17.4
%
2.8
%
2.2
%
0.6pp
27.3
%
ARPDAU (in dollars)
$
0.62
$
0.55
$
0.07
12.7
%
$
0.64
$
0.47
$
0.17
36.2
%
pp = percentage points
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210811005827/en/
PLAYSTUDIOS CONTACTS
Investor Relations Jacques Cornet IR@playstudios.com
Media Relations Doug Donsky / Amy Rossetti
media@playstudios.com
PLAYSTUDIOS (NASDAQ:MYPS)
Historical Stock Chart
From Jun 2024 to Jul 2024
PLAYSTUDIOS (NASDAQ:MYPS)
Historical Stock Chart
From Jul 2023 to Jul 2024