Playstudios, Inc. · NASDAQ:MYPS
Playstudios — SPAC Merger (February 2021)
50 slides from Playstudios's SPAC merger presentation, Feb 1, 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 their own evaluation with respect to a proposed business combination (the “proposed business combination”) between PLAYSTUDIOS, Inc. (“PLAYSTUDIOS” or the
Slide 3: Disclaimer (continued)
DISCLAIMER (continued) Use of Projections This presentation contains projected financial information with respect to PLAYSTUDIOS, including revenue, cost of sales, user acquisition costs, other expenses and Adjusted EBITDA. Such projected financial information constitutes forward-looking information
Slide 4: Disclaimer (continued)
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 include a proxy statement/prospectus, that will be both the proxy stateme
Slide 5: Investment Highlights
INVESTMENT HIGHLIGHTS $435M $90M 46% ‘22 REVENUE ‘22 AEBITDA ’19-’22 AEBITDA CAGR +100M 4.2M 56 DOWNLOADS LTD MAU MINUTES PLAY/DAY Massive Market Dedicated Network Opportunity of Players Compelling Library Robust Pipeline of of Games New Games Proprietary Loyalty Global Network of Platform Award Par
Slide 6: Context
Slide 7: The Market Is Massive
THE MARKET IS MASSIVE Gaming has eclipsed music, movies, and books. 2019 TAM Mobile Music Movies Books Gaming Gaming $21.5B $42.2B $113.9B $152.1B $68.5B 3% 4% 1% 10% 38% $160.0B (2009-2019 CAGR) $140.0B $120.0B $100.0B $80.0B $60.0B $40.0B $20.0B $0.0B 2009 2010 2011 2012 2013 2014 2015 2016 2017 2
Slide 8: The Creator's Dilemma
THE CREATOR’S DILEMMA The ‘inevitable’ life-cycle of a great game. Engagement Challenge Scale Challenge Retention Challenge Discovery Challenge Creative Challenge Development Launch Growth Maturity Contraction
Slide 9: The Loyalty Lift
THE LOYALTY LIFT Loyalty mechanics drive lasting engagement. Incremental Impact of Loyalty Program Deeper Engagement Organic Lift Cross-Promotion Development Launch Growth Maturity Contraction
Slide 10: The Composition of Value
THE COMPOSITION OF VALUE Value drivers in a traditional gaming experience. Method of Depth of Play Play Social Media / Feature Community Breadth Live Content Operations Updates
Slide 11: The PLAYSTUDIOS Approach
THE PLAYSTUDIOS APPROACH The added value of playAWARDS – play free games, earn real rewards! myVIP Real-World Framework Rewards Real Community Concierge Connections Service Real-World Events VIP Hosts
Slide 12: Loyalty
Slide 13: Loyalty Programs Work
LOYALTY PROGRAMS WORK Loyalty programs have been broadly adopted across most consumer industries. Dining Coffee Airline Hotel Theaters Car Gas Retail Credit Card Grocery 78 % More consumer engagement with brands offering loyalty programs.
Slide 14: Our Loyalty Program Works
OUR LOYALTY PROGRAM WORKS playAWARDS drives increased retention, engagement and monetization. Retention Engagement Monetization 100% 140 6 $200 $188 90% $180 $171 120 5 80% $160 $143 70% 100 $140 4 Month over Month % Sessions per Day 60% Minutes per Day Annual Spend $120 80 50% 3 $100 40% 60 $80 30%
Slide 15: Our Loyalty Program Works
OUR LOYALTY PROGRAM WORKS Players have purchased over 10,000,000 rewards with a retail value of nearly $500M Reward Purchase Activity 12,000,000 $600,000,000 Retail Value of Rewards Purchased 10,000,000 $500,000,000 Rewards Purchased 8,000,000 $400,000,000 6,000,000 $300,000,000 4,000,000 $200,000,0
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. In-game myVIP Framework VIP Player Portal In-game Store SDK Player Mgmt Console R Partner Rewards Console Concierge I Host Program Game Developer Console Special Events Program
Slide 17: The Virtuous Cycle
THE VIRTUOUS CYCLE The power of reciprocity. Promote Partners PLAYSTUDIOS offers players in- app awards in exchange for engagement and loyalty. Redeem In-App Offers Redeem Real-World Awards PLAYERS return to the game to PLAYERS consume real-world collect free points and earn more awards, driving inc
Slide 18: The Virtuous Cycle
THE VIRTUOUS CYCLE The Business Impact. More Awards More Players Better value proposition for More people in-game means the players - more awards more people can be reached by available. our partners. More Partners More Customers With better reach and the ability to More people in the apps that driv
Slide 19: Our Story
Slide 20: An Accomplished Team
AN ACCOMPLISHED TEAM Deep, diverse, and experienced. Andrew Pascal PLAYSTUDIOS, Founder, Chairman & CEO Wynn Resorts, WagerWorks, Silicon Gaming Scott Peterson PLAYSTUDIOS, CFO Wynn Resorts, Mirage Resorts, Coopers & Lybrand Paul Mathews PLAYSTUDIOS, Founder, EVP IGT, WagerWorks, Silicon Gaming Kati
Slide 21: A Global Company
A GLOBAL COMPANY We’ve built a collection of integrated game studios. BELGRADE BURLINGAME HONG KONG 6 STUDIOS LAS VEGAS TEL AVIV AUSTIN 385 PLAYMAKERS SINGAPORE
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 the e
Slide 24: A Global Network of Award Partners
A GLOBAL NETWORK OF AWARD PARTNERS We’ve amassed a diverse collection of leisure partners. 4 CONTINENTS 17 COUNTRIES 84 PARTNERS 275 BRANDS Dining Hotels Theaters Cruises Amusements Retail Airlines
Slide 25: A Valuable & Loyal Audience
A VALUABLE & LOYAL AUDIENCE We’ve amassed a compelling community of players. 4.2 Million Sessions/Day MAU 2.4 55% Female Minutes/Day 45% Male 56 Average Age 1.9 Million 42 Reward Purchasers Average Income 11+ Million $80K Rewards Purchased
Slide 26: A Proven Model
A PROVEN MODEL We’ve proven our ability to scale, engage, and monetize players. Retention Challenge We have a collection of unique Engagement Challenge offerings that alter the end-of-life We have operating discipline and trajectory. proven Loyalty mechanics. Scale Challenge We have rewards and addi
Slide 27: A History of Revenue Growth
A HISTORY OF REVENUE GROWTH We’ve sustained our network and consistently scaled revenues year-over-year. 2,500,000 $30,000,000 $25,000,000 2,000,000 Monthly Revenue $20,000,000 1,500,000 DAU $15,000,000 1,000,000 $10,000,000 500,000 $5,000,000 - $- 3 4 4 5 5 6 6 7 7 8 8 9 9 0 14 15 16 17 18 19 20 3
Slide 28: A History of Revenue Growth
A HISTORY OF REVENUE GROWTH We’ve countered the later-stage effects of the Creator’s Dilemma. 2,500,000 $30,000,000 $25,000,000 2,000,000 Monthly Revenue $20,000,000 1,500,000 DAU $15,000,000 1,000,000 $10,000,000 500,000 $5,000,000 - $- 3 4 4 5 5 6 6 7 7 8 8 9 9 0 14 15 16 17 18 19 20 3 4 5 6 7 8 9
Slide 29: A Next-Level Opportunity
A NEXT-LEVEL OPPORTUNITY We’re applying our proven model to complementary genres. CASINO BRAIN & PUZZLE ADVENTURE & SIM ARCADE & ACTION RPG & STRATEGY $5.5 Billion $8.3 Billion $12.4 Billion $15.0 Billion $30.3 Billion Casino genre embodies the simplicity and nuance of casual games and the monetizat
Slide 30: Growth
Slide 31: Growth Strategy
GROWTH STRATEGY Apply our proven framework and enhance our commercial model. OPTIMIZE . . . EXPAND . . . ACQUIRE . . . DIVERSIFY . . . Our existing franchises Our portfolio – build, Games & expand our Our business model – – continue to run our launch, and scale new network – adding focusing on Ad co
Slide 32: Exploit the Bingo Category
EXPLOIT THE BINGO CATEGORY Leverage our brands, player network, playAWARDS and creative execution Market Opportunity Competition • Sizable overlap with existing PS audience • YoY Growth – 51% • ‘20 Downloads – 51M • Limited Creative Differentiation DAU – 900K REV. - $417M Key Features • Best-in-Clas
Slide 33: Exploit the RPG Category
EXPLOIT THE RPG CATEGORY Leverage playAWARDS, partner integrations and creative execution Competition Market Opportunity • Among top growth categories • Market – $5.2B • YoY Growth – 47% • ‘20 Downloads – 272M • Limited western-oriented games Key Features • AAA Western Fantasy • Deep Roster of Heroe
Slide 34: Apply Our Proven Approach
APPLY OUR PROVEN APPROACH Leverage loyalty mechanics and our player network to seed each new product. myVEGAS Blackjack myKONAMI Slots POP! Slots 300,000 $1,600,000 500,000 $9,000,000 350,000 $7,000,000 450,000 $8,000,000 $1,400,000 250,000 300,000 $6,000,000 400,000 $7,000,000 $1,200,000 350,000 25
Slide 35: Acquisition Driven Growth
ACQUISITION DRIVEN GROWTH Leverage playAWARDS to drive synergies, growth and attractive ROIC. TARGET REVENUE TARGET OPERATING INCOME At Acquisition 2Y After Acquistion At Acquisition 2Y After Acquistion Base Natural Growth Playawards Loyalty Program-Net Direct Purchase Website Playstudios UA Savings
Slide 36: Summary
SUMMARY Clear and actionable plan to achieve business results. LAAS $435M M&A $15M New Genres $60M $45M $45M $270M myVIP Loyalty Lift Bingo Category Idle RPG Category Other M&A LAAS 2020E 2022E 10% Market Growth 300K DAU 375K DAU Ad Monetization New Game Genres Loyalty-as-a-Service Revenue Network C
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Slide 38: Revenue
REVENUE Sustained and projected revenue growth. 500 M 450 M 400 M 33% 350 M 300 M 22% Revenue 250 M 13% 22% 200 M 21% 150 M 100 M 50 M M 2017A 2018A 2019A 2020E 2021E 2022E
Slide 39: AEBITDA
AEBITDA Proven profitability with clear path to margin growth. 30% Forecasted Margin 2025 $100 M 25.0% $90 M 2020 - 2022 AEBITDA and Margins Impacted by $80 M extraordinary development 20.0% and User Acquisition expenses related to new $70 M game launches. $60 M 15.0% $50 M $40 M 10.0% $30 M $20 M 5
Slide 40: Margin
MARGIN Clear path to margin growth. 30% Forecasted Margin 2025 30% 25% 2.5%-3.0% 25%-26% 2.0%-2.5% 20% 20.7% 3.2% 1.5% 2.6% 1.8% 15% 2.6% 12.0% 10% 5% 0% CY20 Margin Core Bus Op Ex E Comm erce Ad Mon Corp Expenses New Games Post CY22 Margin UA Efficiency Op Ex Efficiency CY23 Margin Launch
Slide 41: Margin
MARGIN Significant opportunity to expand Adjusted EBITDA (AEBITDA) Margin 30% Forecasted Margin 2025 LTM EBITDA Margin % as of September 30, 2020 1 36% 35% 32% 32% 30% Median: 32% (Excl. PLAYSTUDIOS) 25% 25% 21% PLAYSTUDIOS PLAYSTUDIOS PLAYSTUDIOS Playtika 2 Double Down 2, 3 Aristocrat 4 SciPlay 2 Z
Slide 42: AEBITDA
AEBITDA Clear path to AEBITDA growth. 30% Forecasted Margin 2025 $120 M&A New $100 Genres Normalized $19 $7 Margins $90 $80 Loyalty Lift Live Operations Cross-Marketing $12 Market Growth (Millions) $60 $22 $40 $44 (1) $20 $- 2020E Core Games Ad Monetization Bingo & Kingdom Boss Public Company Costs
Slide 43: Financials
FINANCIALS Sustained and projected top and bottom-line growth. 30% Forecasted Margin 2025 2017A 2018A 2019A 2020E 2021E 2022E Revenue $161.8 M $195.5 M $239.4 M $269.8 M $328.0 M $435.2 M YOY% 20.8% 22.5% 12.7% 21.6% 32.7% Cost of Sales 53.4 M 66.8 M 80.3 M 91.2 M 102.2 M 128.4 M % of Revenue 33.0%
Slide 44: The Deal
Slide 45: Transaction Overview
TRANSACTION OVERVIEW • Acies Acquisition Corp. (“ACAC”) is a publicly listed special Illustrative Sources & Uses ($ Millions) purpose acquisition company with $215 million cash held in trust Sources Uses • ACAC has agreed to combine with PLAYSTUDIOS in a transaction Acies Cash in Trust $215 Equity C
Slide 46: Compelling Growth
COMPELLING GROWTH Powerful growth trajectory 2020–2022E Revenue CAGR 2020–2022E AEBITDA CAGR 27% 67% 16% 15% 37% 11% 7% 19% 16% 3% 4% 4% PlayStudios Gaming Zynga Glu Playtika SciPlay PlayStudios Glu Zynga Gaming 1 Playtika SciPlay Peers Avg. Peers Avg.
Slide 47: Performance Snapshot
PERFORMANCE SNAPSHOT PLAYSTUDIOS and Playtika $0.61 PLAYSTUDIOS (2019A Revenue = $239M) Playtika (2019A Revenue = $1,888M) $0.54 46% 43% 35% 29% 28% Total All organic 22% 11% Inorganic 18% Organic 2.4% 2.6% 1 2 Revenue Growth (%) Adjusted EBITDA Growth (%) Daily Paying User Growth (%) ARPDAU Daily P
Slide 48: Compelling Valuation
COMPELLING VALUATION PLAYSTUDIOS multiples Implied based on EV of $1,102M EV/2022E Revenue EV/2022E AEBITDA EV/2022E AEBITDA (Growth Adjusted) 5.8x 5.7x 3.8x 16.7x 16.4x 15.2x 4.2x 12.3x 11.2x 2.4x 3.3x 9.9x 9.8x 2.5x 2.2x 1.5x 0.9x 0.3x 0.2x Gaming Peers Playtika Zynga SciPlay PlayStudios Glu Playt
Slide 49: Investment Highlights
INVESTMENT HIGHLIGHTS Massive Market Opportunity Attractive long-term growth prospects Compelling Library of Games Resilient franchises, with robust pipeline of new products Proprietary Loyalty Platform Proven features that drive retention, engagement & monetization Global Network of Award Partners
Slide 50: PLAYSTUDIOS
PLAYSTUDIOS