Slide 1: An Introduction to PLAYSTUDIOS, Inc.
2023, January 10th 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 Lines, AMC Theaters, IHG Hotels 19 Game Titles 11 Casual Ge
Slide 6: Global Development Footprint
SAN FRANCISCO LAS VEGAS AUSTIN BELGRADE TEL AVIV HONG KONG SINGAPORE HANOI 9 STUDIOS 750 PLAYMAKERS PORTLAND Studios are integrated and strategically located to maximize productivity and minimize costs. Global Development Footprint
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
12 Million MAU 55% Female 45% Male 39 Average Age $80K Average Income 2.3 Sessions / Day 45 Minutes / Day 2.3 Million Reward Purchasers 14.9 Million Rewards Purchased We have a large, captive, and loyal audience of players. Top 50 Global Game Developer & Publisher
Slide 9: playAWARDS
0 playawards
Slide 10: Audience Acquisition Becoming More Difficult
The ability to launch and scale games is more challenging than ever. -ATTORNEY CLIENT PRIVILEGED-CONFIDENTIAL 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 E
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 retention and engagement solution
playAWARDS is a comprehensive retention and engagement solution for brands and mobile apps. -ATTORNEY CLIENT PRIVILEGED-CONFIDENTIAL
Slide 13: The playAWARDS Platform
The playAWARDS Platform -ATTORNEY CLIENT PRIVILEGED-CONFIDENTIAL 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
Slide 14: Loyalty Partners
Reward Partners 2.3 Million Reward Purchasers >$400MM Retail Value Reward Portfolio Reward Categories 14.9 Million Rewards Purchased 4 Continents 17 Countries 84 Partners 275 Brands Dining Hotels Movies Cruises Amusements Retail An unmatched collection of global partners across many diverse industri
Slide 15: Available Rewards Inventory
Available Rewards Inventory Reward Partner Outlets COVID COVID 2022 Trend 2022 Trend Available partners and rewards are both increasing. playAWARDS partnerships are growing!
Slide 16: Cumulative Rewards Purchased
Cumulative Rewards Purchased COVID Players have purchased 14.9 million rewards with a retail value of over $400 million. Rewards purchases are robust and growing $400MM $300MM $200MM $100MM 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Slide 17: playAWARDS is driving real game results
Rewards Engagement : Player Retention No Store View Store View No Purchase Purchase No Redemption Redemption Rewards Engagement : Game Engagement Play Time Minutes RedemptionNo Store View Store View No Purchase Purchase No Redemption Rewards Engagement : Player Monetization In-App Purchases Key metr
Slide 18: The Loyalty Lift across the product lifecycle
Long-Term Impact Cross-Promotion Organic Lift Deeper Engagement Development Launch Growth Maturity Contraction The “Loyalty Lift” drives key game metrics across the full product lifecycle. playAWARDS is the SOLUTION
Slide 19: The Opportunity
The Opportunity
Slide 20: Strategic Growth Goals for 2023
1. 2. 3. Advance the playAWARDS Platform Expand partnerships, evolve the tools, optimize the redemption funnel Increase Profitability Execute with discipline, raise operating margins, increase new features and live ops density Expand / Diversify Games Portfolio Scale audiences for Bingo and MGM Slot
Slide 21: playAWARDS Division Goals 2023 and Beyond
Expand playAWARDS Presence Incorporate the myVIP Program into all PLAYSTUDIOS apps, entering the casual and puzzle genres with Tetris and Brainium titles 2023 and Beyond playAWARDS Division Goals Launch playAWARDS LaaS Roll out “Loyalty as a Service” to third-party apps, further scaling the platform
Slide 22: playAWARDS as a cross play driver
With a shared loyalty currency and a presence in our entire games library in 2023, playAWARDS is expected to drive cross play. playAWARDS as a cross play driver in our games
Slide 23: Investments obscure growth temporarily
2021 Investments obscure 10 years of consistent growth. Expect to begin seeing return on investments in 2023. Investments obscure growth…temporarily Revenue and AEBITDA Growth ($M) Expansion of headcount into lower cost regions Investments in growth games such as myVEGAS Bingo, Tetris, and MGM Slots
Slide 24: Pathway to higher margins
MYPS Today ~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 25: Focus on Improving Profitability: Diversified Revenue Stream
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
Slide 26: Focus on Improving Profitability: Higher Margins
Gaming business is being fundamentally reset towards higher profit. Focus on Improving Profitability in 2023 Higher Margins ● Cost of revenues are 27.1% of expenses and are largely platform fees ● MYPS is also building out its direct purchase platform myVIP.co Operating Expenses - 9 mos Ended 09.30.
Slide 27: 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 28: Diversifying into 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 29: 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 Materially accretive acquisition that expands earnings, mar
Slide 30: Strong capital position
Our strong capital position protects us from economic uncertainty and gives us tremendous spending flexibility Strong Capital Position $50M share repurchase authorization ~$142M of cash (post Brainium) +$290M of Available Liquidity Sources of Cash Opportunities $81M of unused facility $75M accordion
Slide 31: Financials
Financials
Slide 32: Well Capitalized and High Growth
Blue chip balance sheet ensures stability and provides for future investments in growth. Financials: Well Capitalized and High Growth ● Strong balance sheet with cash holdings of ~$142 million (post Brainium) and no borrowings on our revolver ● Cash generative business model ● Strong, double digit g
Slide 33: 3Q22 Financial Results
3Q22 Financial Metrics ● Revenues: $72.1 million ● AEBITDA: $9.8 million ● AEBITDA Margin: 13.5% ● Cash Balance: $142 million (Post Brainium) ● No debt Game Metrics (including Brainium) ● Portfolio of 19 Games ● +3 million DAU ● +12 million MAU Reported solid results, ahead of consensus. 3Q22 Financ
Slide 34: 2022 Financial Guidance
2022 Consolidated Company Guidance ● Revenues of $275 - $285 million ● AEBITDA of $32 - $35 million ● Brainium’s expected results were included in PS consolidated guidance for ‘22 Raised guidance in recent 3Q22 earnings release. 2022 Financial Guidance
Slide 35: Summary: vision, portfolio, margin expansion, aligned interests
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 36: Thank You
THANK YOU! C PLAYSTUDIOS Q playstudios Q playawards SB playblocks