Slide 1: An Introduction to PLAYSTUDIOS, Inc.
2023, May 10 Investor Presentation. An Introduction to PLAYSTUDIOS, Inc. Display Version
Slide 2: Disclaimer
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 exp
Slide 3: Investor Relations Contact
Samir Jain Treasury & Investor Relations PLAYSTUDIOS samir.jain@playstudios.com
Slide 4: PLAYSTUDIOS at-a-glance: Key Investment Highlights
PLAYSTUDIOS at-a-glance. Key Investment Highlights Strong Leadership with Aligned Interests Numerous executives and board members are largest shareholders. CEO is 2nd largest shareholder. Rapidly Diversifying Game Portfolio Brainium acquisition and exclusive mobile rights for Tetris expected to cont
Slide 5: Building a "Rewarded Play" ecosystem
Building a “Rewarded Play” ecosystem. MYPS Structure 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 17 Game Titles 10 Casual Gen
Slide 6: Global Development Footprint
SAN FRANCISCO LAS VEGAS BELGRADE TEL AVIV SINGAPORE HANOI 8 STUDIOS 750 PLAYMAKERS PORTLAND Studios are integrated and strategically located to maximize productivity and minimize costs. Global Development Footprint MEXICO CITY
Slide 7: A Diversified Game Library
An expanding mix of casual, puzzle, and social casino games. A Diversified Game Library
Slide 8: Large, captive, and loyal audience of players
13 Million MAU 54% Female 46% Male 47 Average Age $80K Average Income 2.4 Sessions / Day 46 Minutes / Day 2.3 Million Reward Purchasers 15.3 Million Rewards Purchased We have a large, captive, and loyal audience of players. Top 50 Global Game Developer & Publisher *As of 3/31/2023
Slide 9: playAWARDS
0 playawards
Slide 10: Audience Acquisition Becoming More Difficult
The ability to launch and scale games is more challenging than ever. More Competition Growing competition for user attention across all forms of entertainment games, social, streaming - make it more difficult to hold an audience’s engagement. Targeting Less Effective GDPR, Deprecation of IDFA, and i
Slide 11: Retention of existing customers is more important than ever
For apps and brands, retention of existing customers is now more important than ever.
Slide 12: playAWARDS is a comprehensive retention and engagement solution
playAWARDS is a comprehensive retention and engagement solution for brands and mobile apps.
Slide 13: The playAWARDS Platform
The playAWARDS Platform 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 r
Slide 14: Reward Partners
Reward Partners 2.4 Million Reward Purchasers >$730MM Retail Value Reward Portfolio Reward Categories 15 Million Rewards Purchased 6 Continents 105 Countries 105 Partners 224 Brands Dining Hotels Movies Cruises Amusements Retail An unmatched collection of global partners across many diverse industri
Slide 15: Available partners and rewards are increasing
- 50 100 150 200 250 300 - 100 200 300 400 500 600 700 Available Rewards Inventory Reward Partner Outlets COVID COVID 2022 Trend 2022 Trend Available partners and rewards are both increasing, as of 12/31/22. playAWARDS partnerships are growing!
Slide 16: Rewards purchases are robust and growing
$- $100,000,000 $200,000,000 $300,000,000 $400,000,000 $500,000,000 $600,000,000 $700,000,000 $800,000,000 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Cumulative Rewards Purchased COVID Players have purchased more than 15 million rewards with a retail value of over $730 million as of 12/3
Slide 17: playAWARDS is driving real game results
Rewards Engagement : Player Retention No Store View Store View No Purchase Purchase No Redemption Redemption Rewards Engagement : Game Engagement Play Time Minutes RedemptionNo Store View Store View No Purchase Purchase No Redemption Rewards Engagement : Player Monetization In-App Purchases Key metr
Slide 18: The "Loyalty Lift" drives key game metrics
Long-Term Impact Cross-Promotion Organic Lift Deeper Engagement Development Launch Growth Maturity Contraction The “Loyalty Lift” drives key game metrics across the full product lifecycle. playAWARDS is the SOLUTION
Slide 19: The Opportunity
The Opportunity
Slide 20: Strategic Growth Goals for 2023
1. 2. 3. Advance the playAWARDS Platform Attach to external games, grow platform functionality Increase Profitability Expand AEBITDA margins, increase efficiency, add new features and live ops density Expand / Diversify Games Portfolio Scale audiences for Bingo and MGM Slots Live, optimize Tetris Mo
Slide 21: playAWARDS Division Goals
Expand playAWARDS Presence Incorporate the myVIP Program into all PLAYSTUDIOS apps, entering the casual and puzzle genres with Tetris and Brainium titles 2023 and Beyond playAWARDS Division Goals Launch playAWARDS LaaS Roll out “Loyalty as a Service” to third-party apps, further scaling the platform
Slide 22: playAWARDS as a cross play driver in our games
With a shared loyalty currency and a presence in our entire games library in 2023, playAWARDS is expected to drive cross play. playAWARDS as a cross play driver in our games
Slide 23: Pathway to higher margins is clear
MYPS 2022 ~13% AEBITDA Margins Peer Group ~28% AEBITDA Margins Leverage Fixed Costs Optimize Profitability of Newest Games Current initiatives to raise margins Pathway to higher margins is clear Improve Profitability of Core Portfolio
Slide 24: Focus on Improving Profitability in 2023: Advertising
Gaming business is being fundamentally reset towards higher profit. Focus on Improving Profitability in 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
Slide 25: Focus on Improving Profitability: Operating Expenses
26.8% 25.4% 19.9% 12.6% 11.2% 4.1% Cost of revenue Selling and marketing Research and development General and administrative Depreciation and amortization Restructuring costs Gaming business is being fundamentally reset towards higher profit. Focus on Improving Profitability in 2023 Higher Margins ●
Slide 26: New Game Mix Targets Larger TAM in 2023
Gaming business is being fundamentally reset towards higher profit. Focus on Improving Profitability in 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 Portf
Slide 27: Diversifying into other, larger, gaming genres
Casino $7.5 Billion Arcade & Action $17.5 Billion Adventure & Sim $17.8 Billion RPG & Strategy $25.2 Billion Brain & Puzzle $23.5 Billion Diversifying into other, larger, gaming genres. Expand reach across broader gaming market *Source: Sensor Tower, Eilers & Krejcik Gaming
Slide 28: Brainium Acquisition
● 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 Accretive acquisition that expands earnings, margins, DAU a
Slide 29: Strong capital position and spending flexibility
Our strong capital position protects us from economic uncertainty and gives us tremendous spending flexibility Strong Capital Position $50M share repurchase authorization ~$127M of cash $208M of Available Liquidity Sources of Cash Opportunities $81M of unused facility $75M accordion feature in facil
Slide 30: Financials
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Slide 31: Financials: Well Capitalized and Growing Fast
Blue chip balance sheet ensures stability and provides for future investments in growth. Financials: Well Capitalized and Growing Fast ● Strong balance sheet with cash holdings of ~$127 million and no borrowings on our revolver ● Cash generative business model ● Initiated a repurchase program in 4Q2
Slide 32: 1Q23 Financial Results
1Q23 Financial Metrics ● Revenues: $80.1 million; 14% y/y growth ● Net loss (GAAP) of $2.6 million ● AEBITDA: $17.8 million; 96% y/y growth ● AEBITDA Margin: 22.2%; +900bps increase vs. 1Q22, +700bps increase vs. 4Q22 ● Cash Balance: $127 million ● No debt ● Continued stock buyback; repurchased $15.
Slide 33: 2023 Financial Guidance
2023 Consolidated Company Guidance ● Revenues of $305 - $325 million ● AEBITDA of $50.0 - $60.0 million ● At midpoint, guidance implies 9% year/year growth in revenues and 44% year/year growth in AEBITDA ● Implied AEBITDA margin of 17.5% at midpoint; 430bps ahead of 2022 figure ● Results include a f
Slide 34: Unique Vision and Model
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 interests are aligned.
Slide 35: 1Q23 AEBITDA Reconciliation
1Q23 AEBITDA Reconciliation Amounts reported during the three months ended March 31, 2023 relate to the internal reorganization including severance-related costs, and fees related to evaluating various merger and acquisition opportunities. Amounts reported during the three months ended March 31, 202
Slide 36: 2022 AEBITDA Reconciliation
2022 2021 2020 Net (loss) income (17,783,000) 10,737,000 12,807,000 Depreciation & amortization 35,562,000 27,398,000 22,192,000 Income tax benefit (5,835,000) (258,000) (1,671,000) Stock-based compensation expense 17,727,260 4,455,000 3,519,000 Change in fair value of warrant liability (1,047,000)
Slide 37: Thank You!
THANK YOU! CY PLAYSTUDIOS Q playstudies Q playawards @ playblocks