Slide 1: PLAYSTUDIOS
VY) playstudios
Slide 2: Investor Presentation
Released: 08.03.2023 Investor Presentation
Slide 3: Disclaimer
Confidential: Investor Presentation Released: 08.03.2023 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
Slide 4: Investor Relations contact
Confidential: Investor Presentation Released: 08.03.2023 Samir Jain Treasury & Investor Relations PLAYSTUDIOS samir.jain@playstudios.com
Slide 5: Key Investment Highlights
Confidential: Investor Presentation Released: 08.03.2023 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 a
Slide 6: Building a Rewarded Play ecosystem
Confidential: Investor Presentation Released: 08.03.2023 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 Lin
Slide 7: Global Development Footprint
Confidential: Investor Presentation Released: 08.03.2023 SAN FRANCISCO LAS VEGAS BELGRADE TEL AVIV SINGAPORE HANOI 9 STUDIOS 704 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
Confidential: Investor Presentation Released: 08.03.2023 A DIVERSIFIED GAME LIBRARY An expanding mix of casual, puzzle, and social casino games
Slide 9: Leading Global Game Developer and Publisher
Confidential: Investor Presentation Released: 08.03.2023 13 Million MAU 54% Female 46% Male 49 Average Age $80K Average Income 2.4 Sessions / Day 40 Minutes / Day 2.4 Million Reward Purchasers 15.8 Million Rewards Purchased *As of 6/30/2023 LEADING GLOBAL GAME DEVELOPER AND PUBLISHER We have a large
Slide 10: playAWARDS
0 playawards 0 Playstudios Released: 08.03.2023
Slide 11: Audience Acquisition Becoming More Difficult
Confidential: Investor Presentation Released: 08.03.2023 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
Slide 12: Retention of existing customers is more important than ever
Confidential: Investor Presentation Released: 08.03.2023 For apps and brands, retention of existing customers is now more important than ever.
Slide 13: playAWARDS player loyalty platform
Confidential: Investor Presentation Released: 08.03.2023 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 be
Slide 14: The playAWARDS Platform
Confidential: Investor Presentation Released: 08.03.2023 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 offe
Slide 15: Loyalty Reward Partners
Confidential: Investor Presentation Released: 08.03.2023 Reward Partners 2.4 Million Reward Purchasers >$790MM Retail Value Reward Portfolio Reward Categories 15 Million Rewards Purchased 6 Continents 104 Countries 115 Partners 240 Brands Dining Hotels Movies Cruises Amusements Retail As of 6/30/202
Slide 16: playAWARDS Partnerships Are Growing
Confidential: Investor Presentation Released: 08.03.2023 - 50 100 150 200 250 300 - 100 200 300 400 500 600 700 Available Rewards Inventory Reward Partner Outlets COVID COVID2022 - 2023 Trend 2022 - 2023 Trend playAWARDS PARTNERSHIPS ARE GROWING! Available partners and rewards are both increasing, a
Slide 17: Rewards Purchases Are Robust and Growing
Confidential: Investor Presentation Released: 08.03.2023 Cumulative Rewards Purchased $- $100,000,000 $200,000,000 $300,000,000 $400,000,000 $500,000,000 $600,000,000 $700,000,000 $800,000,000 - 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 16,000,000 2012 2013 2014 2015 2
Slide 18: playAWARDS Is Driving Real Game Results
Confidential: Investor Presentation Released: 08.03.2023 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 P
Slide 19: playAWARDS Is the Solution
Confidential: Investor Presentation Released: 08.03.2023 Long-Term Impact Cross-Promotion Organic Lift Deeper Engagement Development Launch Growth Maturity Contraction playAWARDS IS THE SOLUTION The “Loyalty Lift” drives key game metrics across the full product lifecycle
Slide 20: The Opportunity
Released: 08.03.2023 The Opportunity
Slide 21: Strategic Growth Goals for 2023
Confidential: Investor Presentation Released: 08.03.2023 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. Expa
Slide 22: playAWARDS Division Goals
Confidential: Investor Presentation Released: 08.03.2023 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
Slide 23: playAWARDS as a Cross Play Driver
Confidential: Investor Presentation Released: 08.03.2023 playAWARDS AS A CROSS PLAY DRIVER IN OUR GAMES With a shared loyalty currency and a presence in our entire game library in 2023, playAWARDS is expected to drive cross play
Slide 24: Pathway to Higher Margins Is Clear
Confidential: Investor Presentation Released: 08.03.2023 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
Confidential: Investor Presentation Released: 08.03.2023 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 PROFITAB
Slide 26: Focus on Improving Profitability in 2023: Costs
Confidential: Investor Presentation Released: 08.03.2023 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 Oper
Slide 27: New Game Mix Targets Larger TAM
Confidential: Investor Presentation Released: 08.03.2023 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 Game
Slide 28: Expand Reach Across Broader Gaming Market
Confidential: Investor Presentation Released: 08.03.2023 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 int
Slide 29: Brainium Acquisition
Confidential: Investor Presentation Released: 08.03.2023 ▪ 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 BR
Slide 30: Strong Capital Position
Confidential: Investor Presentation Released: 08.03.2023 $30M share repurchase authorization ~$128M 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 POSITIO
Slide 31: Financials
Released: 08.03.2023 Financials
Slide 32: Financials: Well Capitalized and Growing Fast
Confidential: Investor Presentation Released: 08.03.2023 ▪ Strong balance sheet with cash holdings of ~$128 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 August 3, 2023 ▫ Continue to vie
Slide 33: 2Q23 Financial Results
Confidential: Investor Presentation Released: 08.03.2023 2Q23 Financial Metrics ▪ Revenues: $77.8 million; 14% y/y growth ▪ Net loss (GAAP) of $0.8 million ▪ AEBITDA: $16.3 million; 122% y/y growth ▪ AEBITDA Margin: 20.9%; +1010bps increase vs. 2Q22 ▪ Cash Balance: $128 million ▪ No debt ▪ Continued
Slide 34: 2023 Financial Guidance
Confidential: Investor Presentation Released: 08.03.2023 2023 Consolidated Company Guidance ▪ Revenues of $305 - $325 million ▪ AEBITDA of $55.0 - $60.0 million ▪ At midpoint, guidance implies 9% year/year growth in revenues and 50% year/year growth in AEBITDA ▪ Implied AEBITDA margin of 18.3% at mi
Slide 35: Summary of investment case
Confidential: Investor Presentation Released: 08.03.2023 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 Inter
Slide 36: Non-GAAP reconciliation: three and six months ended June 30
Confidential: Investor Presentation Released: 08.03.2023 (1) Amounts reported during the three and six months ended June 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 six mo
Slide 37: Non-GAAP reconciliation: years ended December 31
Confidential: Investor Presentation Released: 08.03.2023 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
Slide 38: PLAYSTUDIOS
Y) playstudios