Third Quarter Revenue of $70.6 Million;
Nine-month Revenue of $215.5 Million, up 4.7% year-over-year
Advancing long-term positioning through growth
of playAWARDS performance and expansion of development capacity
PLAYSTUDIOS, Inc. (NASDAQ: MYPS) (“PLAYSTUDIOS” or the
“Company”), the developer of the playAWARDS loyalty platform and an
award-winning developer of free-to-play mobile and social games,
today announced financial results for the third quarter ended
September 30, 2021.
Third Quarter Financial Highlights
- Revenue was $70.6 million during the third quarter of 2021,
compared to $69.7 million during the third quarter of 2020. This
year’s results were driven by increases in daily payer conversion
and spending per player partially offset by the lift attributable
to the stay-at-home restrictions that were in place during the
third quarter of 2020. For the nine months ended September 30,
2021, revenue grew 4.7% to $215.5 million compared to $205.9
million during the same period in 2020.
- Net income was $11.2 million during the third quarter of 2021,
compared to net income of $5.1 million during the third quarter of
2020. Net income was $10.1 million during the nine months ended
September 30, 2021, compared to net income of $23.6 million during
the same period in 2020.
- AEBITDA, a non-GAAP financial measure defined below, was $9.6
million during the third quarter of 2021, compared to $13.3 million
during the third quarter of 2020. AEBITDA was $27.6 million during
the nine months ended September 30, 2021, compared to $49.3 million
during the same period in 2020. The change for both the third
quarter and the nine months ended September 30, 2021 reflects costs
associated with the ongoing investments and other expenses related
to the launch of myVEGAS Bingo earlier in 2021, along with the
investments in other game development initiatives.
Andrew Pascal, Chief Executive Officer of PLAYSTUDIOS,
commented, “Third quarter results reflect our continuing efforts to
seed our growth for the long term. Our investments in our
playAWARDS platform, the growth of our myVIP loyalty program, and
the expansion of our game portfolio will continue to position us as
the leaders in Rewarded Play. As the economy continues to emerge
from the pandemic, we remain encouraged by our loyalty program
engagement and activity. During the quarter, the number of rewards
purchased increased 169% year-over-year and 27% sequentially, while
the retail value of the purchases for the quarter was over $37
million, approaching pre-pandemic levels.”
He further added, “We continue to believe in our growth
strategy, and remain focused on servicing our existing players,
expanding our game portfolio, and evolving our playAWARDS platform.
Our conviction is rooted in the response we receive every time we
introduce new features, live operations content, and playAWARDS
partners. For this reason we remain intensely focused on expanding
our development capacity along with introducing new games, both of
which will enable us to enhance our performance and further
demonstrate the playAWARDS “Loyalty Lift.”
The Company also reinforced its focus on Corporate Development
and expanding its game portfolio through acquisitions. In support
of these efforts, the company has qualified and is actively
pursuing a number of strategic opportunities. In addition, and
given the Company’s current trading price, the Board approved a
stock repurchase plan providing for the repurchase of up to $50
million of the Company’s Class A common stock over a period of 12
months. Pascal noted, “We still believe that the best use of our
capital is to advance our M&A efforts. However, we also believe
our current price in no way reflects the value or future potential
of our business and we will continue to assess the benefits of
purchasing our own equity should we deem it appropriate.”
Recent Business Highlights
- Following the expansion of our rewards platform with Bowlero
Bowling and Amusement Centers, the Company launched Bowl-A-Palooza,
a series of festival-like bowling parties. The event included stops
in Los Angeles, Dallas, Chicago, and Scottsdale. Tickets to
Bowl-A-Palooza were available using myVIP loyalty points earned on
the PLAYSTUDIOS family of apps, including POP! Slots, myVEGAS
Slots, myVEGAS Blackjack, my KONAMI Slots, and myVEGAS Bingo.
- Upon entering the casual gaming market with the global launch
of myVEGAS Bingo, the Company enlisted the award winning Hollywood
actress Jane Lynch. Lynch served as myVEGAS Bingo’s first
“Celebrity Caller” for a limited run, bringing an exciting new
dimension to the new game. Players heard Lynch call bingo numbers,
celebrate big wins, and inject her signature dry wit into the
energetic action. Players could exchange loyalty points for
exclusive Jane Lynch merchandise. Additionally, players were able
to use loyalty points to direct charitable contributions to Direct
Relief, one of the organizations that Lynch supports that provides
emergency medical assistance and disaster relief in the United
States and internationally.
- Expanded the collection of playAWARDS partners and benefits,
adding new rewards from Bowlero, Royal Caribbean Cruises, Resorts
World at Sea, City Winery, Gateway casinos, the collection of
re-opened Cirque du Soleil shows, along with a variety of Food
& Beverage outlets across the MGM portfolio.
- Continued to expand our teams and resources in Belgrade and
Vietnam, adding much needed development support for our core
franchise products
Outlook
The Company expects its full-year 2021 revenue to be in the
range of $282.5 million to $287.5 million. In addition, the
full-year AEBITDA expectation remains 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 (888) 437-3179 for domestic callers and (862) 298-0702 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.
playAWARDS Platform Metrics
Available Rewards: Available
Rewards is defined as the monthly average number of unique rewards
available in our applications’ rewards stores. A reward appearing
in more than one application’s reward store is counted only once. A
reward is counted only once irrespective of the inventory available
through that reward. For example, one reward for a free night in a
hotel room with ten rooms available for such free night is counted
as one reward. Available Rewards only include real-world partner
rewards and exclude PLAYSTUDIOS digital rewards. We use Available
Rewards as a measure of the value and potential impact of the
program for an interested player. It is assumed that the greater
the variety and breadth of rewards offered, the more likely players
will be to ascribe value to the program.
Purchases: Purchases is defined as
the total number of rewards purchased for the period identified in
which a player exchanges loyalty points for a reward. Purchases are
not adjusted for refunds. Purchases only include purchases of
real-world partner rewards and exclude any PLAYSTUDIOS digital
rewards. The Company does not receive any compensation or revenues
from Purchases. We use Purchases as a measure of audience interest
and engagement with our playAWARDS platform.
Retail Value of Purchases: Retail
Value of Purchases is defined as the cumulative retail value of all
rewards listed as Purchases for the period identified. The retail
value of each reward listed as Purchases is the retail value as
determined by the partner upon creation of the reward. In the case
where the retail value of a reward adjusts depending on time of
redemption, the average retail value is used. Retail Value of
Purchases only include the retail value of real-world partner
rewards and exclude the cost of any PLAYSTUDIOS branded
merchandise. Real-world Partner rewards are provided at no cost to
the Company. We use Retail Value of Purchases to help us understand
the real-world value of the rewards that are purchased by our
active players.
Non-GAAP Financial Measures
To provide investors with information in addition to results as
determined by GAAP, the Company discloses Adjusted Earnings Before
Interest Taxes Depreciation and Amortization (“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 (loss) 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
September 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 September
30,
Nine Months Ended September
30,
2021
2020
2021
2020
Net revenues
$
70,571
$
69,711
$
215,490
$
205,883
Operating expenses:
Cost of revenue(1)
22,282
23,840
69,802
70,199
Selling and marketing
19,274
15,078
60,461
41,232
General and administrative
8,092
4,362
24,769
13,883
Research and development
14,509
14,812
46,551
35,942
Depreciation and amortization
7,213
5,577
20,145
16,405
Total operating costs and expenses
71,370
63,669
221,728
177,661
Income (loss) from operations
(799
)
6,042
(6,238
)
28,222
Other income (expense), net:
Change in fair value of warrant
liabilities
11,876
—
11,986
—
Interest expense, net
(57
)
(107
)
(206
)
(94
)
Other income (expense), net
(113
)
494
(242
)
509
Total other income (expense), net
11,706
387
11,538
415
Income before income taxes
10,907
6,429
5,300
28,637
Income tax benefit (expense)
329
(1,309
)
4,819
(5,066
)
Net income
$
11,236
$
5,120
$
10,119
$
23,571
Net income per share attributable to Class
A and Class B common stockholders:
Basic
$
0.09
$
0.06
$
0.09
$
0.25
Diluted
$
0.08
$
0.05
$
0.08
$
0.23
Weighted average shares of common stock
outstanding:
Basic
125,823
92,596
106,880
92,879
Diluted
138,795
105,078
120,516
101,876
(1) Amounts exclude depreciation and amortization.
PLAYSTUDIOS, INC.
CONSOLIDATED BALANCE
SHEETS
(Unaudited and in thousands,
except par value amounts)
September 30,
2021
December 31,
2020
ASSETS
Current assets:
Cash and cash equivalents
$
225,975
$
48,927
Receivables
18,462
16,616
Prepaid expenses
6,440
2,429
Income tax receivable
10,471
6,959
Other current assets
416
2,854
Total current assets
261,764
77,785
Property and equipment, net
5,222
6,201
Internal-use software, net
42,731
38,756
Goodwill
5,059
5,059
Intangibles, net
1,350
1,624
Deferred income taxes
6,562
3,109
Other long-term assets
7,849
1,927
Total non-current assets
68,773
56,676
Total assets
$
330,537
$
134,461
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable
8,832
4,717
Warrant liabilities
8,468
—
Accrued liabilities
10,596
29,089
Total current liabilities
27,896
33,806
Minimum guarantee liability
—
300
Deferred income taxes
2,579
2,970
Other long-term liabilities
1,672
1,306
Total non-current liabilities
4,251
4,576
Total liabilities
$
32,147
$
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 September 30, 2021 and December 31, 2020, respectively)
—
—
Class A common stock, $0.0001 par value
(2,000,000 shares authorized, 109,830 and 74,422 shares issued and
outstanding as of September 30, 2021 and December 31, 2020,
respectively)
11
8
Class B common stock, $0.0001 par value
(25,000 shares authorized, 16,130 shares issued and outstanding as
of September 30, 2021 and December 31, 2020.
2
2
Additional paid-in capital
264,067
71,786
Retained earnings
33,921
23,802
Accumulated other comprehensive income
389
481
Total stockholders’ equity
298,390
96,079
Total liabilities and stockholders’
equity
$
330,537
$
134,461
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 (loss) and net income margin, the most
directly comparable GAAP measures.
Three Months Ended September
30,
Nine Months Ended September
30,
2021
2020
2021
2020
Net income
$
11,236
$
5,120
$
10,119
$
23,571
Depreciation & amortization
7,213
5,577
20,145
16,405
Income tax (benefit) expense
(329
)
1,309
(4,819
)
5,066
Stock-based compensation expense
833
1,268
3,680
2,623
Change in fair value of warrant
liability
(11,876
)
—
(11,986
)
—
Special infrequent(1)
—
95
7,500
1,522
Restructuring and related(2)
2,303
14
2,379
92
Other(3)
267
(89
)
546
(22
)
AEBITDA
9,647
13,294
27,564
49,257
GAAP revenue
70,571
69,711
215,490
205,883
Margin as a % of
revenue
Net income margin
15.9
%
7.3
%
4.7
%
11.4
%
AEBITDA margin
13.7
%
19.1
%
12.8
%
23.9
%
(1)
Amounts reported during the three and nine
months ended September 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 nine
months ended September 30, 2021 and 2020 consist of (i)
severance-related costs and (ii) fees related to potential mergers
and acquisitions.
(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 September
30,
Nine Months Ended September
30,
2021
2020
Change
% Change
2021
2020
Change
% Change
Average DAU
1,173
1,391
(218
)
(15.7
)%
1,228
1,517
(289
)
(19.1
)%
Average MAU
3,571
4,092
(521
)
(12.7
)%
3,867
4,377
(510
)
(11.7
)%
Average DPU
33
33
—
—
%
34
34
—
—
%
Average Daily Payer Conversion
2.8
%
2.4
%
0.4pp
16.7
%
2.8
%
2.2
%
0.6pp
27.3
%
ARPDAU (in dollars)
$
0.65
$
0.54
$
0.11
20.4
%
$
0.64
$
0.50
$
0.14
28.0
%
pp = percentage points
PLAYSTUDIOS, INC.
SUPPLEMENTAL DATA – PLAYAWARDS
PLATFORM METRICS
(Unaudited and in thousands,
except available rewards)
Three Months Ended September
30,
Nine Months Ended September
30,
2021
2020
Change
% Change
2021
2020
Change
% Change
Available Rewards (in units)
518
379
139
36.7
%
457
475
(18
)
(3.8
%)
Purchases (in units)
570
288
282
97.9
%
1,488
977
511
52.3
%
Retail Value of Purchases (in dollars)
$
37,389
$
13,890
$
23,499
169.2
%
$
85,622
$
46,633
$
38,989
83.6
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211111006072/en/
PLAYSTUDIOS CONTACTS
Investor Relations IR@playstudios.com Media Relations
Amy Rosetti 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