Slide 1: PLAYSTUDIOS
VY) playstudios
Slide 2: Investor Presentation August 5, 2024
Investor Presentation August 5, 2024
Slide 3: Disclaimer
3 Disclaimer Forward-Looking Statements This presentation contains forward-looking statements that relate to anticipated future events, including anticipated future operating results, business performance, and financial conditions. The company’s actual results may differ from the company’s current e
Slide 4: Investor Relations contact
Sa m ir J a in Treasury & Investor Relations PLAYSTUDIOS samir.jain@playstudios.com 4
Slide 5: Key Investment Highlights
5 Key Investment Highlights PLAYSTUDIOS at-a-glance Rapidly Diversifying Game Portfolio Brainium and Tetris are diversifying revenue streams to faster growing and higher margin casual gaming segment. playAWARDS Platform a Key Differentiator Proprietary loyalty program creates value for players, publ
Slide 6: Building a Rewarded Play ecosystem
6 MYPS STRUCTURE Building a “Rewarded Play” ecosystem playAW ARDS Loyalty Marketing and Engagement Platform In-game rewards drive player retention and engagement. Rewards provided by marketing partners including: MGM Resorts, Norwegian Cruise Line, AMC Theaters, IHG Hotels 20 Game Titles 12 Casual G
Slide 7: Global Development Footprint
7 SAN FRANCISCO LAS VEGAS BELGRADE TEL AVIV SINGAPORE HANOI 10 STUDIOS 697 PLAYMAKERS PORTLAND MEXICO CITY SANTIAGO GLOBAL DEVELOPMENT FOOTPRINT Studios are integrated and strategically located to maximize productivity and minimize costs
Slide 8: A Diversified Game Library
8 A DIVERSIFIED GAME LIBRARY An expanding mix of casual, puzzle, and social casino games
Slide 9: Leading Global Game Developer and Publisher
9 13.6 Million MAU 55% Female 45% Male 3.2 Million DAU $80K Average Income 2.4 Avg Sessions / Day 37 Avg Minutes / Day 2.6 Million Reward Purchasers 17.6 Million Rewards Purchased *As of 6/30/2024 LEADING GLOBAL GAME DEVELOPER AND PUBLISHER We have a large, captive, and loyal audience of players
Slide 10: playAWARDS
0 playawards Q ploystudios
Slide 11: Audience Acquisition Becoming More Difficult
11 AUDIENCE ACQUISITION BECOMING MORE DIFFICULT The ability to launch and scale games is more challenging than ever Rising Costs Large audience networks and sophisticated AdTech platforms are commanding higher prices in response to demand for top performing ad inventory. Targeting Less Effective GDP
Slide 12: Retention of existing customers is now more important than ever
12 Retention of existing customers is now more important than ever.
Slide 13: The Old Paradigm
13 Community Building Content Releases and LiveOps Player Communications Compelling FTUEsPaid UA THE OLD PARADIGM Developers have relied on a fixed set of approaches to drive growth.
Slide 14: The New Paradigm
14 THE NEW PARADIGM Developers can leverage loyalty mechanics and real rewards to add a new dimension to their growth strategies. Player Communications Community Building Compelling FTUEs Paid UA Loyalty = Retention Content Releases and LiveOps
Slide 15: The playAWARDS Platform
15 Player Progression Tiers Players “chase” an increasingly valuable collection of in-game benefits, including elevated VIP Status. This type of progression mechanic is a proven driver of game engagement and retention. Rewards Marketplace By offering engaged players real- world rewards, they are mor
Slide 16: Loyalty Reward Partners
16 Reward Partners 2.6 Million Reward Purchasers >$896MM Retail Value Reward Portfolio Reward Categories 17.6 Million Rewards Purchased 6 Continents 104 Countries 121 Partners 226 Brands Dining Hotels Movies Cruises Amusements Retail As of 06/30/2024 LOYALTY REWARD PARTNERS An unmatched collection o
Slide 17: playAWARDS Partnerships Are Growing
17 Available Rewards Inventory Reward Partner Outlets - 100 200 300 400 500 600 700 playAWARDS PARTNERSHIPS ARE GROWING! Available partners and rewards are both increasing, as of 6/30/24 COVID 2022 - 2023 Trend - 50 100 150 200 250 300 COVID 2022 - 2023 Trend
Slide 18: Rewards Purchases Are Robust and Growing
18 Cumulative Rewards Purchased COVID As of 6/30/2024 REWARDS PURCHASES ARE ROBUST AND GROWING Players have purchased more than 17 million rewards with a retail value of over $890 million as of June 2024 $- $100,000,000 $200,000,000 $300,000,000 $400,000,000 $500,000,000 $600,000,000 $700,000,000 $8
Slide 19: playAWARDS Is Driving Real Game Results
19 Numbers based on Jan 2022 – June 2024 installs playAWARDS IS DRIVING REAL GAME RESULTS Key metrics have shown clear improvements with playAWARDS Rewards Engagement : Player Retention Rewards Engagement : Game Engagement Play Time Minutes Rewards Engagement : Player Monetization In-App Purchases M
Slide 20: playAWARDS Keeps Players Engaged Longer
20 Long-Term Impact Cross-Promotion Organic Lift Deeper Engagement Development Launch Growth Maturity Contraction playAWARDS KEEPS PLAYERS ENGAGED LONGER The “Loyalty Lift” drives key game metrics across the full product lifecycle
Slide 21: The Opportunity
The Oeooiunity playstudios
Slide 22: Strategic Goals for MYPS
22 1. Advance playAWARDS / myVIP Form new strategic partnerships and continue to extend platform functionality 2. Increase Profitability Expanded AEBITDA from operating leverage, new games, greater efficiency, and new features + live ops density 3. Expand / Diversify Games Portfolio Scale audiences
Slide 23: playAWARDS Division Goals
23 Expand playAWARDS Presence playAWARDS DIVISION GOALS 2024 and beyond Incorporate the myVIP Program into all PLAYSTUDIOS apps, entering the casual and puzzle genres with Tetris and Brainium titles. playAWARDS LaaS Roll out “Loyalty as a Service” to further scale the platform’s audience network. En
Slide 24: playAWARDS as a Cross Play Driver
24 playAWARDS AS A CROSS PLAY DRIVER IN OUR GAMES With a shared loyalty currency and a presence in our entire library, playAWARDS is expected to drive cross play
Slide 25: Strong Margin Gains in 2023 Can Continue
25 MYPS 2023 ~20% AEBITDA Margins Peer Group ~32% AEBITDA Margins* Leverage Fixed Costs Optimize Profitability of Newest Games Improve Profitability of Core Portfolio STRONG MARGINS GAINS IN 2023 CAN CONTINUE Our current initiatives support continued margin growth MYPS 2022 ~13% AEBITDA Margins +700
Slide 26: Shift to Casual Games Is Raising Margins
26 Advertising is a meaningful portion of total revenues Advertising is higher margin - no platform fees Advertising/Other is now 20% of Total Revenues Scaling Advertising in social casino portfolio Tetris and Brainium are Advertising driven games SHIFT TO CASUAL GAMES IS RAISING MARGINS Gaming busi
Slide 27: Casual Gaming Market Is 3X the Size of Social Casino
27 THE CASUAL GAMING MARKET IS 3X THE SIZE OF SOCIAL CASINO New Game Mix Targets Larger TAM 2024 Portfolio of Games 2022 Portfolio of Games (pre-Brainium) Social Casino Casual Games $7.3B Total Addressable Market, by Game Genre $22.3B 1 Game 8 Games 12 Games Social Casino Casual Games LARGEST CATEGO
Slide 28: Expand Reach Across Broader Gaming Market
28 Casino $7.3 Billion Arcade & Action $15.2 Billion Adventure & Sim $14.3 Billion RPG & Strategy $31.3.2 Billion Casual $22.3 Billion *Source: Newzoo, Eilers & Krejcik Gaming (2023) EXPAND REACH ACROSS BROADER GAMING MARKET Diversifying into other, larger, gaming genres
Slide 29: Tetris Opportunity
29 Tetris is one of the most recognized titles in gaming Tetris Mobile grew strongly in 2023 and we believe there is considerable potential remaining PLAYSTUDIOS recently extended the mobile license for Tetris 5-year extension with an additional 3-year option We believe there are numerous
Slide 30: Strong Capital Position
30 $46M available under share repurchase authorization* ~$106M of cash Sources of Cash Opportunities $81M of unused credit facility AEBITDA Generative Strategic acquisitions in awards, gaming, or both Growth investments in current businesses STRONG CAPITAL POSITION Our strong capital position protec
Slide 31: Financials
Financials playstudios
Slide 32: Financials: Well Capitalized and Growing
32 Strong balance sheet with cash holdings of ~$106 million and no borrowings on our revolver AEBITDA generative business model Initiated a repurchase program in 4Q22 and have purchased ~15% of Class A shares through August 6, 2024 Strong, double-digit growth over the past 10 years ▫ 2013-20
Slide 33: 2Q24 Financial Results
33 2Q24 Financial Metrics Revenues: $72.6 million Net loss (GAAP) of $2.6 million AEBITDA: $14.1 million AEBITDA Margin: 19.5% Cash Balance: $106 million No outstanding borrowings under Credit Facility Game Metrics Portfolio of 20 Games 3.2 million Average DAU 13.6 million Average
Slide 34: 2024 Financial Guidance
34 2024 Consolidated Company Guidance Revenues of $285 - $295 million AEBITDA of $55 - $60 million Implied AEBITDA margin of 19.8% at midpoint Launch of World Tournament of Slots in October 2024 Continued development of new Tetris titles 2024 FINANCIAL GUIDANCE Revenue and AEBITDA growth p
Slide 35: Summary: Unique Vision and Model
35 01 02 Unique Vision and Model Games players love, real-world benefits they want. Diversified Portfolio Expanding model provides for future growth. 03 04 Strong Capital Position Large cash holdings, no leverage. Aligned Interests Leadership and investor interests are aligned.
Slide 36: 2Q24 AEBITDA Reconciliation
36 (1) Amounts reported during the three and six months ended June 30, 2023 relate to non-cash impairment charges related to certain investments and fees related to evaluating various merger, acquisition and restructuring opportunities. Amounts reported during the three and six months ended June 30,
Slide 37: Annual AEBITDA Reconciliation
37 Fo r t h e ye a rs e n d e d De c e m b e r 31, 20 23 20 22 20 21 Net (loss) income ($19,393) ($17,783) $10,737 Depreciation & amortization 45,259 35,562 27,398 Income tax expense (benefit) 16,873 (5,835) (258) Stock-based compensation expense 18,722 17,727 4,455 Change in fair value of warrant l
Slide 38: PLAYSTUDIOS
Y) playstudios