Slide 1: PLAYSTUDIOS
VY) playstudios
Slide 2: Investor Presentation
Released: 11.03.2023 Investor Presentation
Slide 3: Disclaimer
Released: 11.03.2023 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
Slide 4: Investor relations contact
Released: 11.03.2023 Samir Jain Treasury & Investor Relations PLAYSTUDIOS samir.jain@playstudios.com
Slide 5: Key Investment Highlights
Released: 11.03.2023 Rapidly Diversifying Game Portfolio Brainium acquisition and exclusive mobile rights for Tetris expected to contribute to growth in 2023. playAWARDS Loyalty Platform a Key Differentiator Loyalty program drives key metrics for connected games and global brand partners. Preparing
Slide 6: Building a Rewarded Play ecosystem
Released: 11.03.2023 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 18 Game
Slide 7: Global Development Footprint
Released: 11.03.2023 SAN FRANCISCO LAS VEGAS BELGRADE TEL AVIV SINGAPORE HANOI 9 STUDIOS 703 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
Released: 11.03.2023 A DIVERSIFIED GAME LIBRARY An expanding mix of casual, puzzle, and social casino games
Slide 9: Leading Global Game Developer and Publisher
Released: 11.03.2023 13.7 Million MAU 55% Female 45% Male 50 Average Age $80K Average Income 2.4 Sessions / Day 38 Minutes / Day 2.4 Million Reward Purchasers 16.2 Million Rewards Purchased *As of 9/30/2023 LEADING GLOBAL GAME DEVELOPER AND PUBLISHER We have a large, captive, and loyal audience of p
Slide 10: playAWARDS
0 playawards Q playstudios Released: 1.032023,
Slide 11: Audience Acquisition Becoming More Difficult
Released: 11.03.2023 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
Slide 12: Retention of existing customers is more important than ever
Released: 11.03.2023 For apps and brands, retention of existing customers is now more important than ever.
Slide 13: playAWARDS player loyalty platform
Released: 11.03.2023 playAWARDS is a powerful, yet intuitive player loyalty platform designed specifically for the gaming industry. It allows developers to deliver richer in- app experiences by rewarding player engagement with a curated collection of real-world benefits. This helps drive long term r
Slide 14: The playAWARDS Platform
Released: 11.03.2023 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 rew
Slide 15: Loyalty Reward Partners
Released: 11.03.2023 Reward Partners 2.4 Million Reward Purchasers >$796MM Retail Value Reward Portfolio Reward Categories 16.2 Million Rewards Purchased 6 Continents 104 Countries 117 Partners 242 Brands Dining Hotels Movies Cruises Amusements Retail As of 9/30/2023 LOYALTY REWARD PARTNERS An unmat
Slide 16: playAWARDS Partnerships Are Growing
Released: 11.03.2023 - 50 100 150 200 250 300 - 100 200 300 400 500 600 700 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 9/30/23
Slide 17: Rewards Purchases Are Robust and Growing
Released: 11.03.2023 $- $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 Cu
Slide 18: playAWARDS Is Driving Real Game Results
Released: 11.03.2023 Numbers based on 2021 – 2022 installs playAWARDS IS DRIVING REAL GAME RESULTS Key metrics have shown clear improvements with playAWARDS 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 1 2 3 4 5 6 7 8 9 10 11 12 13 No Store Viewer Storeviewer w/o Purchase Purchase w/o Redemption Rede
Slide 19: playAWARDS Keeps Players Engaged Longer
Released: 11.03.2023 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 20: The Opportunity
Released: 11.03.2023 The Opportunity
Slide 21: Strategic Growth Goals for 2023
Released: 11.03.2023 1. Advance the playAWARDS Platform Integrate into third-party, external games, and continue to extend platform functionality 2. Increase Profitability Expand AEBITDA margins, increase efficiency, and add new features + live ops density 3. Expand / Diversify Games Portfolio Scale
Slide 22: playAWARDS Division Goals
Released: 11.03.2023 Expand playAWARDS Presence playAWARDS DIVISION GOALS 2023 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, furthe
Slide 23: playAWARDS as a Cross Play Driver
Released: 11.03.2023 playAWARDS AS A CROSS PLAY DRIVER IN OUR GAMES With a shared loyalty currency and a presence in our entire game library, playAWARDS is expected to drive cross play
Slide 24: Pathway to Higher Margins Is Clear
Released: 11.03.2023 MYPS 2022 ~13% AEBITDA Margins Peer Group ~28% AEBITDA Margins Leverage Fixed Costs Optimize Profitability of Newest Games Improve Profitability of Core Portfolio PATHWAY TO HIGHER MARGINS IS CLEAR Current initiatives to raise margins
Slide 25: Focus on Improving Profitability in 2023: Revenue Mix
Released: 11.03.2023 Advertising will now be a meaningful portion of total revenues AdMon is higher margin - no platform fees Diversified Revenue Stream - 2022 Scaling AdMon in social casino portfolio Tetris and Brainium are AdMon games FOCUS ON IMPROVING PROFITABILITY IN 2023 Gaming business is bei
Slide 26: Focus on Improving Profitability in 2023: Margins
Released: 11.03.2023 Higher Margins ▪ Cost of revenues are 26.8% of expenses and are largely platform fees ▪ MYPS is also building out its direct purchase platform myVIP.co ▪ Restructured workforce will result in lower payroll cost as a percentage of revenues Operating Expenses - 12 mos Ended 12.31.
Slide 27: New Game Mix Targets Larger TAM in 2023
Released: 11.03.2023 Games will now be more evenly distributed between casual and social casino; the casual gaming market is 3x the size of social casino gaming. New Game Mix Targets Larger TAM in 2023 2023 Portfolio of Games (post-Brainium) 2022 Portfolio of Games (pre-Brainium) Social Casino Casua
Slide 28: Expand Reach Across Broader Gaming Market
Released: 11.03.2023 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 29: Brainium Acquisition
Released: 11.03.2023 ▪ Broad catalog of casual games ▪ 2mm DAU, 5.5mm MAU ▪ 2022E Revenue of $22mm ▪ 2022E AEBITDA of $8.8mm ▪ 2022E AEBITDA margin of ~40% - High margin ad revenue ▪ Opportunity to drive synergies across product, UA, engagement and monetization BRAINIUM ACQUISITION* Accretive acquis
Slide 30: Strong Capital Position
Released: 11.03.2023 $50M share repurchase authorization ~$130M 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 protec
Slide 31: Financials
Released: 11.03.2023 Financials
Slide 32: Financials: Well Capitalized and Growing
Released: 11.03.2023 ▪ Strong balance sheet with cash holdings of ~$130 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 November 3, 2023 ▪ Strong, double-digit growth over the past 10 year
Slide 33: 3Q23 Financial Results
Released: 11.03.2023 3Q23 Financial Metrics ▪ Revenues: $75.9 million; 5% y/y growth ▪ Net income (GAAP) of $3.8 million ▪ AEBITDA: $13.5 million; 39% y/y growth ▪ AEBITDA Margin: 17.8%; +430bps increase vs. 3Q22 ▪ Cash Balance: $130 million ▪ No debt Game Metrics ▪ Portfolio of 18 Games ▪ 3.5 milli
Slide 34: 2023 Financial Guidance
Released: 11.03.2023 2023 Consolidated Company Guidance ▪ Revenues of $305 - $315 million ▪ AEBITDA of $60.0 million ▪ At midpoint, guidance implies 7% year/year growth in revenues and 57% year/year growth in AEBITDA ▪ Implied AEBITDA margin of 19.4% at midpoint; 620bps ahead of 2022 figure ▪ Result
Slide 35: Investment summary
Released: 11.03.2023 01 02 Unique Vision and Model Games players love, real-world benefits they want. Diversified Portfolio Expanding model provides for future growth. 03 04 Margin Expansion Balancing future growth with near- term margin improvement. Aligned Interests Leadership and investor interes
Slide 36: 3Q23 AEBITDA Reconciliation
Released: 11.03.2023 (1) Amounts reported during the three and nine months ended September 30, 2022 consist of fees related to a tender offer for the warrants and fees related to evaluating various merger and acquisition opportunities. Amounts reported during the three months ended September 30, 202
Slide 37: Annual AEBITDA Reconciliation
Released: 11.03.2023 For the years ended December 31, 2022 2021 2020 Net (loss) income ($17,783) $10,737 $12,807 Depreciation & amortization 35,562 27,398 22,192 Income tax expense (benefit) (5,835) (258) (1,671) Stock-based compensation expense 17,727 4,455 3,519 Change in fair value of warrant lia
Slide 38: PLAYSTUDIOS
VY) playstudios