Playstudios, Inc. · NASDAQ:MYPS
Playstudios — SPAC Merger (February 2021)
50 slides from Playstudios's SPAC merger presentation, Feb 2, 2021
Slide 1: It's More Than a Game
IT’S MORE THAN A GAME.
Slide 2: Disclaimer
DISCLAIMER Disclaimer This presentation is provided for informational purposes only and has been prepared to assist interested parties in making th eir own evaluation with respect to a proposed business combination (the “proposed business combination”) between PLAYSTUDIOS, Inc. (“PLAYSTUDIOS” or the
Slide 3: Disclaimer (continued): Use of Projections
DISCLAIMER (continued) Use of Projections This presentation contains projected financial information with respect to PLAYSTUDIOS, including revenue, cost of sales, use r a cquisition costs, other expenses and Adjusted EBITDA. Such projected financial information constitutes forward - looking informa
Slide 4: Disclaimer (continued): Additional Information
DISCLAIMER (continued) Additional Information In connection with the proposed business combination, Acies intends to file a registration statement on Form S - 4 with the Securities and Exchange Commission (the “SEC”), which will includ e a proxy statement/prospectus, that will be both the proxy stat
Slide 5: Investment Highlights
Robust Pipeline of New Games Founder - led Industry - leading Talent Massive Market Opportunity Compelling Library of Games Proven record of efficient capital allocation Proprietary Loyalty Platform Global Network of Award Partners Dedicated Network of Players $90M ‘22 AEBITDA 4.2M MAU 46% ’19 - ’22
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Slide 7: The Market Is Massive
$0.0B $20.0B $40.0B $60.0B $80.0B $100.0B $120.0B $140.0B $160.0B 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Music Movies Books Gaming THE MARKET IS MASSIVE Gaming has eclipsed music, movies, and books. 2019 TAM (2009 - 2019 CAGR) Music $21.5B 3% Movies $42.2B 4% Books $113.9B 1% Gaming
Slide 8: The Creator's Dilemma
THE CREATOR’S DILEMMA The ‘inevitable’ life - cycle of a great game. Development Launch Growth Maturity Contraction Creative Challenge Discovery Challenge Scale Challenge Engagement Challenge Retention Challenge
Slide 9: The Loyalty Lift
THE LOYALTY LIFT Loyalty mechanics drive lasting engagement. Incremental Impact of Loyalty Program Cross - Promotion Organic Lift Deeper Engagement Development Launch Growth Maturity Contraction
Slide 10: The Composition of Value
THE COMPOSITION OF VALUE Value drivers in a traditional gaming experience. Method of Play Social Media / Community Live Operations Content Updates Feature Breadth Depth of Play
Slide 11: The PLAYSTUDIOS Approach
THE PLAYSTUDIOS APPROACH The added value of playAWARDS – play free games, earn real rewards! Concierge Service Real - World Rewards Real - World Events Real Community Connections myVIP Framework VIP Hosts
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Slide 13: Loyalty Programs Work
More consumer engagement with brands offering loyalty programs. Hotel Grocery Retail Theaters Dining Airline Car Coffee Gas Credit Card LOYALTY PROGRAMS WORK Loyalty programs have been broadly adopted across most consumer industries. 8 % 7
Slide 14: Our Loyalty Program Works
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0 1 2 3 4 5 6 7 8 9 10 11 12 No Store Viewer Store Viewer w/o Purchase Purchase w/o Redemption Redeemer OUR LOYALTY PROGRAM WORKS playAWARDS drives increased retention, engagement and monetization. Engagement Retention 10X Retention lift for Redeemers vs N
Slide 15: Our Loyalty Program Works: Rewards Purchased
$- $100,000,000 $200,000,000 $300,000,000 $400,000,000 $500,000,000 $600,000,000 - 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 2012 2013 2014 2015 2016 2017 2018 2019 2020 Cumulative Rewards Purchased Cumulative Retail Value Purchased OUR LOYALTY PROGRAM WORKS Players have purchase
Slide 16: Our Loyalty Platform Is Robust
OUR LOYALTY PLATFORM IS ROBUST playAWARDS is comprised of key in - game features, partner tools and operating functions. VIP Player Portal Player Mgmt Console Special Events Program Concierge I Host Program In - game myVIP Framework In - game Store SDK Game Developer Console Partner Rewards Console
Slide 17: The Virtuous Cycle
THE VIRTUOUS CYCLE Promote Partners PLAYSTUDIOS offers players in - app awards in exchange for engagement and loyalty. Redeem Real - World Awards PLAYERS consume real - world awards, driving incremental revenue for our partners. Redeem In - App Offers PLAYERS return to the game to collect free point
Slide 18: The Virtuous Cycle: The Business Impact
THE VIRTUOUS CYCLE More people in - game means more people can be reached by our partners. More Players More people in the apps that can be activated on behalf of our partners. More Customers With better reach and the ability to drive more traffic, more partners join the network. More Partners Bette
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Slide 20: An Accomplished Team
AN ACCOMPLISHED TEAM Deep, diverse, and experienced.
Slide 21: A Global Company
A GLOBAL COMPANY BURLINGAME LAS VEGAS AUSTIN BELGRADE TEL AVIV HONG KONG SINGAPORE STUDIOS 6 PLAYMAKERS 385 We’ve built a collection of integrated game studios.
Slide 22: A Family of Top-Ranked Games
A FAMILY OF TOP - RANKED GAMES We’ve developed a portfolio of award - winning games.
Slide 23: A Robust & Scalable Loyalty Platform
A ROBUST & SCALABLE LOYALTY PLATFORM We’ve built the game industry’s only full - featured loyalty platform. ELEGANT IN - GAME INTEGRATION ROBUST SUITE OF TOOLS REFINED OPERATING PRACTICES EXPANSIVE GROUP OF PARTNERS myVIP mechanics are elegantly integrated into the core loop of the game, enriching t
Slide 24: A Global Network of Award Partners
A GLOBAL NETWORK OF AWARD PARTNERS We’ve amassed a diverse collection of leisure partners. CONTINENTS 4 COUNTRIES 17 PARTNERS 84 BRANDS 275 Dining Theaters Airlines Retail Cruises Hotels Amusements
Slide 25: A Valuable & Loyal Audience
A VALUABLE & LOYAL AUDIENCE We’ve amassed a compelling community of players. 55% Female 45% Male Average Income $80K Average Age 42 4.2 Million MAU Minutes/Day 56 1.9 Million Reward Purchasers Sessions/Day 2.4 11+ Million Rewards Purchased
Slide 26: A Proven Model
A PROVEN MODEL We’ve proven our ability to scale, engage, and monetize players. Creative Challenge We have proven talent. Discovery Challenge We have cross promo apps & partners, brand reputation, a loyal player base. Development Launch Growth Maturity Contraction Scale Challenge We have rewards and
Slide 27: A History of Revenue Growth
$- $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 - 500,000 1,000,000 1,500,000 2,000,000 2,500,000 J u l - 1 3 O c t - 1 3 J a n - 1 4 A p r - 1 4 J u l - 1 4 O c t - 1 4 J a n - 1 5 A p r - 1 5 J u l - 1 5 O c t - 1 5 J a n - 1 6 A p r - 1 6 J u l - 1 6 O c t - 1 6 J a n -
Slide 28: A History of Revenue Growth
A HISTORY OF REVENUE GROWTH We’ve countered the later - stage effects of the Creator’s Dilemma. DAU Monthly Revenue $- $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 - 500,000 1,000,000 1,500,000 2,000,000 2,500,000 J u l - 1 3 O c t - 1 3 J a n - 1 4 A p r - 1 4 J u l - 1 4
Slide 29: A Next-Level Opportunity
$5.5 Billion CASINO $30.3 Billion RPG & STRATEGY $8.3 Billion BRAIN & PUZZLE $15.0 Billion ARCADE & ACTION $12.4 Billion ADVENTURE & SIM A NEXT - LEVEL OPPORTUNITY We’re applying our proven model to complementary genres. Casino genre embodies the simplicity and nuance of casual games and the monetiz
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Slide 31: Growth Strategy
GROWTH STRATEGY Apply our proven framework and enhance our commercial model. OPTIMIZE . . . Our existing franchises – continue to run our core products. EXPAND . . . Our portfolio – build, launch, and scale new games across other genres. ACQUIRE . . . Games & expand our network – adding proven apps
Slide 32: Exploit the Bingo Category
EXPLOIT THE BINGO CATEGORY Leverage our brands, player network, playAWARDS and creative execution Competition • Best - in - Class Core Game - Play • Real Las Vegas Branded Bingo Rooms • Casino - Specific Powerups • Club & Group Social Bingo • Collectibles • Vanity Items and Badges • Bonus Slot Games
Slide 33: Exploit the RPG Category
• Among top growth categories • Market – $5.2B • YoY Growth – 47% • ‘20 Downloads – 272M • Limited western - oriented games EXPLOIT THE RPG CATEGORY Leverage playAWARDS , partner integrations and creative execution Competition Idle Kingdom Upgradable Heroes • AAA Western Fantasy • Deep Roster of Her
Slide 34: $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 - 50,000 100,000 150,000 200,000 250,000
$- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 - 50,000 100,000 150,000 200,000 250,000 300,000 350,000 D a y 0 D a y 4 D a y 8 D a y 1 2 D a y 1 6 D a y 2 0 D a y 2 4 D a y 2 8 D a y 3 2 D a y 3 6 D a y 4 0 D a y 4 4 D a y 4 8 D a y 5 2 D a y 5 6 D a y 6 0 D a y 6 4
Slide 35: Acquisition Driven Growth
ACQUISITION DRIVEN GROWTH Leverage playAWARDS to drive synergies, growth and attractive ROIC. Network Effect of Shared Loyalty Performance Optimization Valuation Arbitrage
Slide 36: Summary
SUMMARY Clear and actionable plan to achieve business results. Loyalty Lift 10% Market Growth Network Cross - Marketing Bingo Category 300K DAU $0.40 ARPDAU Idle RPG Category 375K DAU $0.50 ARPDAU $270M $435M 2020E Revenue 2022E Base Forecast M&A New Game Genres Player Networks $45M $45M $60M EXPAND
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Slide 38: Revenue
22% Revenue REVENUE Sustained and projected revenue growth.
Slide 39: AEBITDA
2020 - 2022 AEBITDA and Margins Impacted by extraordinary development and User Acquisition expenses related to new game launches. AEBITDA Proven profitability with clear path to margin growth. Forecasted Margin 2025 30% Normalized Normalized
Slide 40: Margin
MARGIN Clear path to margin growth. 12.0% 20.7% 2.6% 1.8% 2.6% 1.5% 3.2% 0% 5% 10% 15% 20% 25% 30% CY20 Margin Core Bus Op Ex E Commerce Ad Mon Corp Expenses New Games Post Launch CY22 Margin UA Efficiency Op Ex Efficiency CY23 Margin 2.0% - 2.5% 2.5% - 3.0% 25% - 26% Forecasted Margin 2025 30%
Slide 41: Margin
MARGIN 21% 25% 30% 36% 35% 32% 32% 25% LTM EBITDA Margin % as of September 30, 2020 1 Median: 32% (Excl. PLAYSTUDIOS) Playtika 4 2, 3 2025E Forecasted 2 2 2, 5 PLAYSTUDIOS PLAYSTUDIOS Double Down Interactive Aristocrat SciPlay Zynga 2022E Forecast PLAYSTUDIOS 2023E Forecast Significant opportunity t
Slide 42: AEBITDA
AEBITDA Clear path to AEBITDA growth. Forecasted Margin 2025 30% (1) Loyalty Lift Live Operations Cross - Marketing Market Growth (Millions) $44 $90 $22 $12 $19 $7 $- $20 $40 $60 $80 $100 $120 2020E Core Games Ad Monetization Bingo & Kingdom Boss Public Company Costs 2022E Margin Expansion M&A Norma
Slide 43: Financials
FINANCIALS Sustained and projected top and bottom - line growth. Forecasted Margin 2025 30%
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Slide 45: Transaction Overview
TRANSACTION OVERVIEW Illustrative Sources & Uses ($ Millions) Post - Transaction Ownership [1] • Acies Acquisition Corp. (“ACAC”) is a publicly listed special purpose acquisition company with $215 million cash held in trust • ACAC has agreed to combine with PLAYSTUDIOS in a transaction that values t
Slide 46: Compelling Growth
67% 37% 19% 16% 4% 4% PlayStudios Glu Zynga Gaming Peers Avg. Playtika SciPlay 2020 – 2022E Revenue CAGR 2020 – 2022E AEBITDA CAGR 1 27% 16% 15% 11% 7% 3% PlayStudios Gaming Peers Avg. Zynga Glu Playtika SciPlay COMPELLING GROWTH Powerful growth trajectory
Slide 47: Performance Snapshot: PLAYSTUDIOS and Playtika
22% 46% 43% $0.54 2.4% 29% 35% $0.61 2.6% Revenue Growth (%) Adjusted EBITDA Growth (%) Daily Paying User Growth (%) ARPDAU Daily Player Conversion (%) PLAYSTUDIOS Playtika 28% 11% 2017 - 2019 CAGR 2 As of Q3’20 (9/30/20) 1 Organic Total Inorganic (2019A Revenue = $239M) All organic 18% PERFORMANCE
Slide 48: Compelling Valuation
3.8x 2.4x 1.5x 0.9x 0.3x 0.2x Playtika SciPlay Gaming Peers Avg. Zynga Glu PlayStudios COMPELLING VALUATION (’23 Margin Stabilized) PLAYSTUDIOS multiples Implied based on EV of $1,102M EV/2022E Revenue EV/2022E AEBITDA EV/2022E AEBITDA (Growth Adjusted) 5.8x 5.7x 4.2x 3.3x 2.5x 2.2x Gaming Peers Avg
Slide 49: Investment Highlights
Massive Market Opportunity Attractive long - term growth prospects Proven Record of Efficient Capital Allocation Disciplined approach to qualifying and investing in opportunities Compelling Library of Games Resilient franchises, with robust pipeline of new products Unique Approach to User Acquisitio
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