Fourth Quarter Revenue of $71.9 Million; up
12.4% year-over-year; Full Year 2021 Revenue of $287.4 Million
Fourth Quarter Reward Purchase Activity up 79%
with Retail Dollar Value of Purchases up 137%
Tetris and MGM Slots Live Added to Portfolio of
Games
Initiates 2022 Full Year Guidance
In the “CONSOLIDATED STATEMENT OF OPERATIONS” table, the
“General and administrative” row header should read “Research and
development” and the “Research and development” row header should
read “General and administrative.”
The updated release reads:
PLAYSTUDIOS, INC. ANNOUNCES FOURTH QUARTER
AND FULL YEAR RESULTS
Fourth Quarter Revenue of $71.9 Million; up
12.4% year-over-year; Full Year 2021 Revenue of $287.4 Million
Fourth Quarter Reward Purchase Activity up 79%
with Retail Dollar Value of Purchases up 137%
Tetris and MGM Slots Live Added to Portfolio of
Games
Initiates 2022 Full Year Guidance
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 three months and year
ended December 31, 2021.
Fourth Quarter Financial Highlights
- Net revenue was $71.9 million, up 12.4%, compared to $64.0
million during the fourth quarter of 2020. The increase was
impacted by the introductions of Tetris® during the quarter and
myVEGAS Bingo and MGM Slots Live earlier in 2021, as well as
increased advertising revenue.
- Net income was $0.6 million, compared to a net loss of $10.8
million during the fourth quarter of 2020.
- AEBITDA, a non-GAAP financial measure defined below, was $12.0
million compared to $8.8 million during the fourth quarter of 2020.
The increase reflects the impact of the increased revenue,
partially offset by 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.
Full Year Financial Highlights
- Net revenue was $287.4 million, up 6.5%, compared to $269.9
million in 2020. The increase was impacted by introductions of new
games and increased advertising revenue, partially offset by the
lift attributable to the stay-at-home restrictions that were in
place during 2020.
- Net income was $10.7 million, compared to $12.8 million in
2020.
- AEBITDA was $39.5 million, compared to $58.0 million in 2020.
The decrease reflects costs associated with the ongoing investments
and other expenses related to the launch of new games earlier in
2021, along with the investments in other game development
initiatives, partially offset by the flow-through of increased
revenue.
Andrew Pascal, Chief Executive Officer of PLAYSTUDIOS,
commented, “This past year was transformational for our business.
We went public, introduced three new games, advanced our playAWARDS
platform, and expanded our family of myVIP rewards partners. In
doing so, we strengthened our standing as the leaders in rewarded
play and positioned the company for future growth”. He further
highlighted, “Everyone is contending with the increasing complexity
and costs of acquiring consumers. This brings into focus the
importance of holding on to your existing audience which plays to
our strengths. The unique challenges of today’s market are
intensifying the problem that our loyalty platform model solves.
And it’s for this reason that we remain so optimistic about our
opportunity, and so committed to our strategy.”
He continued, “As 2022 begins, we plan to focus on further
optimizing our franchise products, as we also invest in growing our
newest games. Both myVEGAS Bingo and Tetris will enable us to
establish a position in popular casual categories, while MGM Slots
Live will expand our portfolio of social casino games. And, of
course, each will feature our unique and added dimension of
real-world benefits, enabling us to connect and convert our players
to customers of our expanding collection of reward partners. The
impact of our model is supported by the year-over-year increases in
program engagement and activity, with nearly half a million rewards
purchased during the fourth quarter of 2021 with a retail value of
$28.8 million, representing year-over-year growth of 79.2% and
137.3%.”
He further added, “It’s exciting to see our marketplace expand
with the addition of our new games, and the onboarding of new
partners. And while we believe that the market continues to
undervalue the platform characteristics of our business, it remains
central to our strategy. Especially as we capitalize on our model
and accelerate our growth by deploying our capital into synergistic
opportunities. We believe that balancing our investments in both
organic and inorganic growth is the best use of our resources and
will translate to long-term sustainable value for our
stakeholders.”
Recent Business Highlights
- Secured the exclusive rights to the iconic Tetris® franchise
for mobile devices globally excluding China, expanding into the
casual puzzle game genre. The Company added the Tetris®
free-to-play mobile game and the Tetris® Beat Apple Arcade
experience to its game portfolio. The Tetris® mobile game has over
25 million downloads since its launch and millions of loyal active
players who will become part of our player network. The Company is
refining the existing game to incorporate the playAWARDS loyalty
platform, and plans to introduce an altogether new version of the
game by the fall.
- Launched a new social casino app, MGM Slots Live, utilizing the
iconic casino brand and the best of the POP! Slots game
content.
- Exercised right to buy out Boss Fight Entertainment’s
co-development rights in myVEGAS bingo, bringing in-house the
optimization and operations of the game.
- Expanded operations in Hanoi, Vietnam and Belgrade, Serbia,
attracting great talent and globally scaling the company’s
development capacity.
- Expanded the collection of playAWARDS partners and benefits,
adding a variety of new rewards including: 18 Grams, Hong Kong’s
premier espresso café; Mandolin, a live-streaming platform for the
music industry; and 1-800-Flowers, a collection of on-line gifting
brands featuring gourmet foods, gift baskets, floral products,
personalized keepsake items and more.
Balance Sheet
As of December 31, 2021, the Company had $213.5 million of cash
and cash equivalents and no debt outstanding. The Company also
maintains a $75 million revolving credit facility with an accordion
feature for an additional $75 million, providing total liquidity of
up to $363.5 million. On November 10, 2021 the Board of Directors
authorized 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. The Company did not repurchase any shares
during the quarter ended December 31, 2021.
Outlook
The Company expects its full-year 2022 revenue to be in the
range of $305.0 million to $325.0 million. In addition, the Company
expects its full-year AEBITDA to be in the range of $40.0 million
to $50.0 million.
The Company has 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 (866) 405-1203 for
domestic callers and (201) 689-8432 for international callers.
A replay of the call will be archived at
https://ir.playstudios.com.
About PLAYSTUDIOS, Inc.
PLAYSTUDIOS, Inc. (Nasdaq: MYPS) creator of the groundbreaking
playAWARDS loyalty platform is a publisher and developer of
award-winning mobile games, including the iconic Tetris® mobile
app, POP! Slots, myVEGAS Slots, myVEGAS Blackjack, my KONAMI Slots,
myVEGAS Bingo, and MGM Slots Live. The playAWARDS loyalty platform
enables players to earn real-world rewards from more than 95 iconic
hospitality, entertainment, and leisure brands across 17 countries
and four continents. playAWARDS partners include MGM Resorts
International, Wolfgang Puck, Norwegian Cruise Line, Resorts World,
IHG, Bowlero, Gray Line Tours, Hippodrome Casino, and
1-800-Flowers, among others. Founded by a team of veteran gaming,
hospitality, and technology entrepreneurs, PLAYSTUDIOS apps combine
the best elements of popular casual games with compelling
real-world benefits. 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 to AEBITDA (Loss)” 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
Annual Report on Form 10-K for the twelve months ended December 31,
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 December
31,
Year Ended December
31,
2021
2020
2021
2020
Net revenue
$
71,929
$
63,999
$
287,419
$
269,882
Operating expenses:
Cost of revenue(1)
21,840
21,269
91,642
91,469
Selling and marketing
18,581
15,972
79,042
57,124
Research and development
14,792
15,710
61,343
51,696
General and administrative
5,512
3,132
27,902
16,960
Depreciation and amortization
7,253
5,787
27,398
22,192
Restructuring expenses
703
20,000
3,082
20,092
Total operating costs and expenses
68,681
81,870
290,409
259,533
Income (loss) from operations
3,248
(17,871
)
(2,990
)
10,349
Other income (expense), net:
Change in fair value of warrant
liabilities
1,947
—
13,933
—
Interest expense, net
(29
)
(44
)
(235
)
(142
)
Other income (expense), net
13
415
(229
)
929
Total other income, net
1,931
371
13,469
787
Income (loss) before income taxes
5,179
(17,500
)
10,479
11,136
Income tax benefit (expense)
(4,561
)
6,738
258
1,671
Net income (loss)
$
618
$
(10,762
)
$
10,737
$
12,807
Net income (loss) per share attributable
to Class A and Class B common stockholders:
Basic
$
0.00
$
(0.12
)
$
0.10
$
0.14
Diluted
$
0.00
$
(0.12
)
$
0.09
$
0.12
Weighted average shares of common stock
outstanding:
Basic
126,074
93,028
111,718
92,917
Diluted
138,635
107,183
124,898
103,203
(1) Amounts exclude depreciation and amortization.
PLAYSTUDIOS, INC.
CONSOLIDATED BALANCE
SHEETS
(Unaudited and in thousands,
except par value amounts)
December 31,
2021
December 31,
2020
ASSETS
Current assets:
Cash and cash equivalents
$
213,502
$
48,927
Receivables
20,693
16,616
Prepaid expenses
5,059
2,429
Income tax receivable
2,117
6,959
Other current assets
413
2,854
Total current assets
241,784
77,785
Property and equipment, net
5,289
6,201
Internal-use software, net
43,267
38,756
Goodwill
5,059
5,059
Intangibles, net
18,755
1,624
Deferred income taxes
6,282
3,109
Other long-term assets
14,408
1,927
Total non-current assets
93,060
56,676
Total assets
$
334,844
$
134,461
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable
7,793
4,717
Warrant liabilities
6,521
—
Accrued liabilities
15,599
29,089
Total current liabilities
29,913
33,806
Minimum guarantee liability
—
300
Deferred income taxes
—
2,970
Other long-term liabilities
1,464
1,306
Total non-current liabilities
1,464
4,576
Total liabilities
$
31,377
$
38,382
Commitments and contingencies
Stockholders’ equity:
Common stock, $0.00005 par value (117,918
shares authorized, none and 93,398 shares issued and outstanding as
of December 31, 2021 and December 31, 2020, respectively)
—
—
Class A common stock, $0.0001 par value
(2,000,000 shares authorized, 110,066 and 74,421 shares issued and
outstanding as of December 31, 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 December 31, 2021 and December 31, 2020.
2
2
Additional paid-in capital
268,522
71,786
Retained earnings
34,539
23,802
Accumulated other comprehensive income
393
481
Total stockholders’ equity
303,467
96,079
Total liabilities and stockholders’
equity
$
334,844
$
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 December
31,
Year Ended December
31,
2021
2020
2021
2020
Net income (loss)
$
618
$
(10,762
)
$
10,737
$
12,807
Depreciation & amortization
7,253
5,787
27,398
22,192
Income tax (benefit) expense
4,561
(6,738
)
(258
)
(1,671
)
Stock-based compensation expense
775
895
4,455
3,519
Change in fair value of warrant
liability
(1,947
)
—
(13,933
)
—
Special infrequent(1)
—
—
7,500
1,427
Restructuring and related(2)
703
20,000
3,082
20,092
Other(3)
20
(370
)
565
(392
)
AEBITDA
11,983
8,812
39,546
57,974
GAAP revenue
71,929
63,999
287,419
269,882
Margin as a % of
revenue
Net income (loss) margin
0.9
%
(16.8
%)
3.7
%
4.7
%
AEBITDA margin
16.7
%
13.8
%
13.8
%
21.5
%
(1)
Amounts reported (i) for the year ended December 31, 2020 represent
charitable donations made by us related to the COVID-19 pandemic,
and (ii) for the year ended December 31, 2021, a transaction bonus
and a charitable contribution per the terms of the merger agreement
related to our business combination with Acies Acquisition Corp.
(the “Merger Agreement”).
(2)
Amounts reported during the three month and years ended December
31, 2021 and 2020 consist of (i) severance-related costs, (ii) fees
related to potential mergers and acquisitions, and (iii) for the
three months and year ended December 31, 2020, include $20.0
million resulting from the termination of the profit share
provision of the MGM Marketing Agreement.
(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 December
31,
Year Ended December
31,
2021
2020
Change
% Change
2021
2020
Change
% Change
Average DAU
1,292
1,286
6
0.5
%
1,244
1,459
(215
)
(14.7
%)
Average MAU
4,834
3,873
961
24.8
%
4,111
4,251
(140
)
(3.3
%)
Average DPU
33
31
2
6.5
%
34
33
1
3.0
%
Average Daily Payer Conversion
2.6
%
2.4
%
0.2pp
8.3
%
2.7
%
2.3
%
0.4pp
17.4
%
ARPDAU (in dollars)
$
0.61
$
0.54
$
0.07
13.0
%
$
0.63
$
0.51
$
0.12
23.5
%
pp = percentage points
PLAYSTUDIOS, INC.
SUPPLEMENTAL DATA – PLAYAWARDS
PLATFORM METRICS
(Unaudited and in thousands,
except available rewards)
Three Months Ended December
31,
Year Ended December
31,
2021
2020
Change
% Change
2021
2020
Change
% Change
Available Rewards (in units)
542
344
198
57.6%
477
442
35
7.9%
Purchases (in units)
482
269
213
79.2%
1,970
1,247
723
58.0%
Retail Value of Purchases (in dollars)
28,805
12,137
16,668
137.3%
114,426
58,770
55,656
94.7%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220224005870/en/
PLAYSTUDIOS Investor
Relations IR@playstudios.com
Media Relations Amy Rossetti media@playstudios.com
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