Playstudios, Inc. · NASDAQ:MYPS
Playstudios — Investor Presentation (March 2024)
39 slides from Playstudios's investor presentation, Mar 11, 2024
Slide 1: PLAYSTUDIOS
VY) playstudios
Slide 2: Investor Presentation
fey Jestor Presentation Playstudios
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
Samir Jain 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 playAWARDS 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 19 Game Titles 11 Casual Ge
Slide 7: Global Development Footprint
7 SAN FRANCISCO LAS VEGAS BELGRADE TEL AVIV SINGAPORE HANOI 10 STUDIOS 710 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 13.3 Million MAU 54% Female 46% Male 3.4 Million DAU $80K Average Income 2.4 Sessions / Day 37 Minutes / Day 2.5 Million Reward Purchasers 16.6 Million Rewards Purchased *As of 12/31/2023 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 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: The myVIP Platform Features
16 Progression TiersRewards Marketplace Loyalty Currency Professional Services THE MYVIP PLATFORM FEATURES A collection of curated, real-world rewards presented in a dynamic digital storefront format. The Marketplace Module includes store configuration, inventory management, reward featuring, and fu
Slide 17: Loyalty Reward Partners
17 Reward Partners 2.5 Million Reward Purchasers >$824MM Retail Value Reward Portfolio Reward Categories 16.6 Million Rewards Purchased 6 Continents 104 Countries 113 Partners 236 Brands Dining Hotels Movies Cruises Amusements Retail As of 12/31/2023 LOYALTY REWARD PARTNERS An unmatched collection o
Slide 18: playAWARDS Partnerships Are Growing
18 - 100 200 300 400 500 600 700 - 50 100 150 200 250 300 Available Rewards Inventory Reward Partner Outlets COVID COVID 2022 - 2023 Trend 2022 - 2023 Trend playAWARDS PARTNERSHIPS ARE GROWING! Available partners and rewards are both increasing, as of 12/31/23
Slide 19: Rewards Purchases Are Robust and Growing
19 $- $100,000,000 $200,000,000 $300,000,000 $400,000,000 $500,000,000 $600,000,000 $700,000,000 $800,000,000 $900,000,000 - 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 16,000,000 18,000,000 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Cumulative Rewards P
Slide 20: playAWARDS Is Driving Real Game Results
20 Numbers based on 2022 – 2023 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 Months 0%
Slide 21: playAWARDS Keeps Players Engaged Longer
21 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 22: The Opportunity
The Opportunity Playstudios
Slide 23: Strategic Goals for 2024
23 1. Advance playAWARDS / myVIP Integrate into third-party games, 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 / Diversi
Slide 24: playAWARDS Division Goals
24 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. Launch playAWARDS LaaS Roll out “Loyalty as a Service” to third-party apps, further scaling the plat
Slide 25: playAWARDS as a Cross Play Driver
25 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 26: Strong Margin Gains in 2023 Can Continue
26 MYPS 2023 ~20% AEBITDA Margins Peer Group ~28% 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 +700b
Slide 27: Shift to Casual Games Is Raising Margins
27 Advertising will now be a meaningful portion of total revenues AdMon is higher margin - no platform fees Advertising/Other is now 20% of Total Revenues Scaling AdMon in social casino portfolio Tetris and Brainium are AdMon games SHIFT TO CASUAL GAMES IS RAISING MARGINS Gaming business is being fu
Slide 28: The Casual Gaming Market Is 3x the Size of Social Casino
28 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 $7.5B Total Addressable Market, by Game Genre $23.5B 8 Games 1 Game 8 Games 11 Games Social Casino Casual Games LARGES
Slide 29: Expand Reach Across Broader Gaming Market
29 Casino $7.5 Billion Arcade & Action $17.5 Billion Adventure & Sim $17.8 Billion RPG & Strategy $25.2 Billion Brain & Puzzle $23.5 Billion *Source: Sensor Tower, Eilers & Krejcik Gaming EXPAND REACH ACROSS BROADER GAMING MARKET Diversifying into other, larger, gaming genres
Slide 30: Tetris Opportunity
30 ▪ 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 31: Strong Capital Position
31 $50M available under share repurchase authorization ~$133M of cash Sources of Cash Opportunities $81M of unused facility Positive cash generation Strategic acquisitions in awards, gaming, or both Growth investments in current businesses STRONG CAPITAL POSITION Our strong capital position protects
Slide 32: Financials
Financials Playstudios
Slide 33: Financials: Well Capitalized and Growing
33 ▪ Strong balance sheet with cash holdings of ~$133 million and no borrowings on our revolver ▪ Cash generative business model ▪ Initiated a repurchase program in 4Q22 and have purchased $20.0mm of stock through March 11, 2024 ▪ Strong, double-digit growth over the past 10 years ▫ 2013-2023 Revenu
Slide 34: 4Q23 Financial Results
34 4Q23 Financial Metrics ▪ Revenues: $77.1 million ▪ Net loss (GAAP) of $19.9 million ▪ AEBITDA: $14.7 million; 22% y/y growth ▪ AEBITDA Margin: 19.1%; 390bps increase vs. 4Q22 ▪ Cash Balance: $133 million ▪ No debt Game Metrics ▪ Portfolio of 19 Games ▪ 3.4 million DAU ▪ 13.3 million MAU 4Q23 FINA
Slide 35: 2024 Financial Guidance
35 2024 Consolidated Company Guidance ▪ Revenues of $315 - $325 million ▪ AEBITDA of $65 - $70 million ▪ At midpoint, guidance implies 3% year/year growth in revenues and 9% year/year growth in AEBITDA ▪ Implied AEBITDA margin of 21.1% at midpoint; +110bps ahead of 2023 figure ▪ Increase in playAWAR
Slide 36: Investment summary
36 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, postive cash generation. Aligned Interests Leadership and investor interests are align
Slide 37: 4Q23 AEBITDA Reconciliation
37 (1) Amounts reported include mergers and acquisition related expenses, management restructuring and severance, assets impairments and write-downs, and extraordinary expenses related to the war in Israel and other various nonrecurring expenses. (2) Amounts reported in “Other, net” include interest
Slide 38: Annual AEBITDA Reconciliation
38 For the years ended December 31, 2023 2022 2021 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 liability (2,596) (
Slide 39: PLAYSTUDIOS
Y) playstudios