0001823878FALSE00018238782022-02-232022-02-230001823878us-gaap:CommonClassAMember2022-02-232022-02-230001823878us-gaap:WarrantMember2022-02-232022-02-23

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

February 23, 2022
Date of Report (date of earliest event reported)
PLAYSTUDIOS, Inc.
(Exact name of registrant as specified in its charter)
Delaware
001-39652
98-1606155
(State or other jurisdiction of incorporation or organization)
(Commission File Number)
(I.R.S. Employer Identification No.)
10150 Covington Cross Drive, Las Vegas, Nevada
89144
(Address of Principal Executive Offices)
(Zip Code)
Registrant's telephone number, including area code: (725) 877-7000

Not applicable
(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Class A common stockMYPSThe Nasdaq Stock Market LLC
Redeemable warrants, each whole warrant exercisable for one Class A common stock at an exercise price of $11.50MYPSWThe Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐



Item 2.02.     Results of Operations and Financial Condition.
On February 24, 2022, PLAYSTUDIOS, Inc. (the “Company”) issued a press release, furnished as Exhibit 99.1, announcing the Company’s results of operations for the quarter and year ended December 31, 2021. The Company also posted an investor presentation summarizing its financial results for the quarter and year ended December 31, 2021 (the “Investor Presentation”), furnished as Exhibit 99.2.
The information contained in Exhibit 99.1 and Exhibit 99.2 attached hereto is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, regardless of any general incorporation language in such filing, except as shall be expressly set forth by specific reference in such filing.
Item 5.02.     Departure of Directors or Certain Officers; Election of Directors; Appointments of Certain Officers;     Compensatory Arrangements of Certain Officers.
On February 23, 2022, the Compensation Committee (the “Compensation Committee”) of the Board of the Directors of the Company approved (i) increases to the base salaries of two of the Company’s Named Executive Officers (“NEOs”) effective as of February 23, 2022, (ii) bonuses payable to such NEOs for the year ended December 31, 2021, and (iii) grants of restricted stock units (“RSUs”) to such NEOs pursuant to the Company’s 2021 Equity Incentive Plan. The foregoing description of the RSUs is a summary only and does not describe all terms and conditions applicable to these awards. The description is subject to and qualified in its entirety by the terms of the form of Restricted Stock Unit Award Agreement, a copy of which is filed as Exhibit 10.1 and incorporated herein by reference.
The following table shows the increased base salaries of such NEOs effective as of February 23, 2022, the bonuses payable to such NEOs for the year ended December 31, 2021, and the RSUs granted to such NEOs on February 23, 2022:
Name and Principal PositionSalary ($)2021 Merit Bonus ($)
Number of restricted stock units granted(1)
Grant date fair value of restricted stock units ($)
Scott Peterson, Chief Financial Officer350,000 25,000 450,000 2,290,500 
Joel Agena, General Counsel275,000 25,000 300,000 1,527,000 
(1)The RSUs will vest in three equal annual increments (each annual installment being 33.33% of the grant) with the first annual increment vesting on May 15, 2022, subject in each case to such NEO remaining an employee of the Company through the applicable annual vesting date.

Item 9.01. Financial Statements and Exhibits
(a)None
(b)None
(c)None
(d)Exhibits
Exhibit NumberDescription
10.1^
99.1*
99.2*
104Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document)

*Filed herewith
^Indicates management contract or compensatory plan

SIGNATURES



Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: February 24, 2022
PLAYSTUDIOS, Inc.
By:/s/ Scott Peterson
Name:Scott Peterson
Title:Chief Financial Officer


imagea.jpg
Exhibit 99.1
PLAYSTUDIOS, INC. ANNOUNCES FOURTH QUARTER AND FULL YEAR RESULTS
Fourth Quarter Revenue of $71.9 Million; up 12.4% year-over-year; Full Year 2021 Revenue of $287.4 Million
Fourth Quarter Reward Purchase Activity up 79% with Retail Dollar Value of Purchases up 137%
Tetris and MGM Slots Live Added to Portfolio of Games
Initiates 2022 Full Year Guidance
Las Vegas, Nevada – February 24, 2022 – PLAYSTUDIOS, Inc. (NASDAQ: MYPS) (“PLAYSTUDIOS” or the “Company”), the developer of the playAWARDS loyalty platform and an award-winning developer of free-to-play mobile and social games, today announced financial results for the three months and year ended December 31, 2021.
Fourth Quarter Financial Highlights
Net revenue was $71.9 million, up 12.4%, compared to $64.0 million during the fourth quarter of 2020. The increase was impacted by the introductions of Tetris® during the quarter and myVEGAS Bingo and MGM Slots Live earlier in 2021, as well as increased advertising revenue.
Net income was $0.6 million, compared to a net loss of $10.8 million during the fourth quarter of 2020.
AEBITDA, a non-GAAP financial measure defined below, was $12.0 million compared to $8.8 million during the fourth quarter of 2020. The increase reflects the impact of the increased revenue, partially offset by costs associated with the ongoing investments and other expenses related to the launch of myVEGAS Bingo earlier in 2021, along with the investments in other game development initiatives.
Full Year Financial Highlights
Net revenue was $287.4 million, up 6.5%, compared to $269.9 million in 2020. The increase was impacted by introductions of new games and increased advertising revenue, partially offset by the lift attributable to the stay-at-home restrictions that were in place during 2020.
Net income was $10.7 million, compared to $12.8 million in 2020.
AEBITDA was $39.5 million, compared to $58.0 million in 2020. The decrease reflects costs associated with the ongoing investments and other expenses related to the launch of new games earlier in 2021, along with the investments in other game development initiatives, partially offset by the flow-through of increased revenue.
Andrew Pascal, Chief Executive Officer of PLAYSTUDIOS, commented, “This past year was transformational for our business. We went public, introduced three new games, advanced our playAWARDS platform, and expanded our family of myVIP rewards partners. In doing so, we strengthened our standing as the leaders in rewarded play and positioned the company for future growth”. He further highlighted, “Everyone is contending with the increasing complexity and costs of acquiring consumers. This brings into focus the importance of holding on to your existing audience which plays to our strengths. The unique challenges of today’s market are intensifying the problem that our loyalty platform model solves. And it’s for this reason that we remain so optimistic about our opportunity, and so committed to our strategy.”
He continued, “As 2022 begins, we plan to focus on further optimizing our franchise products, as we also invest in growing our newest games. Both myVEGAS Bingo and Tetris will enable us to establish a position in popular casual categories, while MGM Slots Live will expand our portfolio of social casino games. And, of course, each will feature our unique and added dimension of real-world benefits, enabling us to connect and convert our players to customers of our expanding collection of reward partners. The impact of our model is supported by the year-over-year increases in program engagement and activity, with nearly half a million rewards purchased during the fourth quarter of 2021 with a retail value of $28.8 million, representing year-over-year growth of 79.2% and 137.3%.”
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He further added, “It’s exciting to see our marketplace expand with the addition of our new games, and the onboarding of new partners. And while we believe that the market continues to undervalue the platform characteristics of our business, it remains central to our strategy. Especially as we capitalize on our model and accelerate our growth by deploying our capital into synergistic opportunities. We believe that balancing our investments in both organic and inorganic growth is the best use of our resources and will translate to long-term sustainable value for our stakeholders.”
Recent Business Highlights
Secured the exclusive rights to the iconic Tetris® franchise for mobile devices globally excluding China, expanding into the casual puzzle game genre. The Company added the Tetris® free-to-play mobile game and the Tetris® Beat Apple Arcade experience to its game portfolio. The Tetris® mobile game has over 25 million downloads since its launch and millions of loyal active players who will become part of our player network. The Company is refining the existing game to incorporate the playAWARDS loyalty platform, and plans to introduce an altogether new version of the game by the fall.
Launched a new social casino app, MGM Slots Live, utilizing the iconic casino brand and the best of the POP! Slots game content.
Exercised right to buy out Boss Fight Entertainment’s co-development rights in myVEGAS bingo, bringing in-house the optimization and operations of the game.
Expanded operations in Hanoi, Vietnam and Belgrade, Serbia, attracting great talent and globally scaling the company’s development capacity.
Expanded the collection of playAWARDS partners and benefits, adding a variety of new rewards including: 18 Grams, Hong Kong’s premier espresso café; Mandolin, a live-streaming platform for the music industry; and 1-800-Flowers, a collection of on-line gifting brands featuring gourmet foods, gift baskets, floral products, personalized keepsake items and more.
Balance Sheet
As of December 31, 2021, the Company had $213.5 million of cash and cash equivalents and no debt outstanding. The Company also maintains a $75 million revolving credit facility with an accordion feature for an additional $75 million, providing total liquidity of up to $363.5 million. On November 10, 2021 the Board of Directors authorized a stock repurchase plan providing for the repurchase of up to $50 million of the Company’s Class A common stock over a period of 12 months. The Company did not repurchase any shares during the quarter ended December 31, 2021.
Outlook
The Company expects its full-year 2022 revenue to be in the range of $305.0 million to $325.0 million. In addition, the Company expects its full-year AEBITDA to be in the range of $40.0 million to $50.0 million.
The Company has not provided the most directly comparable GAAP measure for our AEBITDA outlook because certain items that are part of the projected non-GAAP financial measure are outside of our control or cannot be reasonably estimated without unreasonable effort.
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Conference Call Details
PLAYSTUDIOS will host a conference call at 5:00 p.m. Eastern Time today, which will include a brief discussion of the results followed by a question and answer session. In addition, supplemental slides will be posted prior to the start of the call on PLAYSTUDIOS' Investor Relations website at http://ir.playstudios.com.
The call will be accessible via the Internet through https://ir.playstudios.com or by calling (866) 405-1203 for domestic callers and (201) 689-8432 for international callers.
A replay of the call will be archived at https://ir.playstudios.com.
About PLAYSTUDIOS, Inc.
PLAYSTUDIOS, Inc. (Nasdaq: MYPS) creator of the groundbreaking playAWARDS loyalty platform is a publisher and developer of award-winning mobile games, including the iconic Tetris® mobile app, POP! Slots, myVEGAS Slots, myVEGAS Blackjack, my KONAMI Slots, myVEGAS Bingo, and MGM Slots Live. The playAWARDS loyalty platform enables players to earn real-world rewards from more than 95 iconic hospitality, entertainment, and leisure brands across 17 countries and four continents. playAWARDS partners include MGM Resorts International, Wolfgang Puck, Norwegian Cruise Line, Resorts World, IHG, Bowlero, Gray Line Tours, Hippodrome Casino, and 1-800-Flowers, among others. Founded by a team of veteran gaming, hospitality, and technology entrepreneurs, PLAYSTUDIOS apps combine the best elements of popular casual games with compelling real-world benefits. To learn more about PLAYSTUDIOS, visit playstudios.com.
Performance Indicators
We manage our business by regularly reviewing several key operating metrics to track historical performance, identify trends in player activity, and set strategic goals for the future. Our key performance metrics are impacted by several factors that could cause them to fluctuate on a quarterly basis, such as platform providers’ policies, seasonality, player connectivity, and the addition of new content to games. We believe these measures are useful to investors for the same reasons. The key performance indicators may differ from similarly titled measures presented by other companies. For more information on our key performance indicators, please refer to the definitions below
and the “Supplemental Data—Key Performance Indicators” section of this press release.
Daily Active Users (“DAU”): DAU is defined as the number of individuals who played a game on a particular day. We track DAU by the player ID, which is assigned for each game installed by an individual. As such, an individual who plays two different games on the same day is counted as two DAU while an individual who plays the same game on two different devices is counted as one DAU. Average DAU is calculated as the average of the DAU for each day during the period presented. We use DAU as a measure of audience engagement to help us understand the size of the active player base engaged with our games on a daily basis.
Monthly Active Users (“MAU”): MAU is defined as the number of individuals who played a game in a particular month. As with DAU, an individual who plays two different games in the same month is counted as two MAU while an individual who plays the same game on two different devices is counted as one MAU. Average MAU is calculated as the average of MAU for each calendar month during the period presented. We use MAU as a measure of audience engagement to help us understand the size of the active player base engaged with our games on a monthly basis.
Daily Paying Users (“DPU”): DPU is defined as the number of individuals who made a purchase in a mobile game during a particular day. As with DAU and MAU, we track DPU based on account activity. As such, an individual who makes a purchase on two different games in a particular day is counted as two DPU while an individual who makes purchases in the same game on two different devices is counted as one DPU. Average DPU is calculated as the average of the DPU for each day during the period presented. We use DPU to understand the size of our active
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player base that makes in-game purchases. This focus directs our strategic goals in setting player acquisition and pricing strategy.
Daily Payer Conversion: Daily Payer Conversion is defined as DPU as a percentage of DAU on a particular day. Average Daily Payer Conversion is calculated as the average DPU divided by average DAU for a given period. We use Daily Payer Conversion to understand the monetization of our active players.
Average Daily Revenue Per DAU (“ARPDAU”): ARPDAU is defined for a given period as the average daily revenue per average DAU, and is calculated as game and advertising revenue for the period, divided by the number of days in the period, divided by the average DAU during the period. We use ARPDAU as a measure of overall monetization of our players.
playAWARDS Platform Metrics
Available Rewards: Available Rewards is defined as the monthly average number of unique rewards available in our applications’ rewards stores. A reward appearing in more than one application’s reward store is counted only once. A reward is counted only once irrespective of the inventory available through that reward. For example, one reward for a free night in a hotel room with ten rooms available for such free night is counted as one reward. Available Rewards only include real-world partner rewards and exclude PLAYSTUDIOS digital rewards. We use Available Rewards as a measure of the value and potential impact of the program for an interested player. It is assumed that the greater the variety and breadth of rewards offered, the more likely players will be to ascribe value to the program.
Purchases: Purchases is defined as the total number of rewards purchased for the period identified in which a player exchanges loyalty points for a reward. Purchases are not adjusted for refunds. Purchases only include purchases of real-world partner rewards and exclude any PLAYSTUDIOS digital rewards. The Company does not receive any compensation or revenues from Purchases. We use Purchases as a measure of audience interest and engagement with our playAWARDS platform.
Retail Value of Purchases: Retail Value of Purchases is defined as the cumulative retail value of all rewards listed as Purchases for the period identified. The retail value of each reward listed as Purchases is the retail value as determined by the partner upon creation of the reward. In the case where the retail value of a reward adjusts depending on time of redemption, the average retail value is used. Retail Value of Purchases only include the retail value of real-world partner rewards and exclude the cost of any PLAYSTUDIOS branded merchandise. Real-world Partner rewards are provided at no cost to the Company. We use Retail Value of Purchases to help us understand the real-world value of the rewards that are purchased by our active players.
Non-GAAP Financial Measures
To provide investors with information in addition to results as determined by GAAP, the Company discloses Adjusted Earnings Before Interest Taxes Depreciation and Amortization (“AEBITDA”) as a non-GAAP measure that management believes provides useful information to investors. This measure is not a financial measure calculated in accordance with GAAP and should not be considered as a substitute for revenue, net income or any other operating performance measure calculated in accordance with GAAP.
We define AEBITDA as net income (loss) before interest, income taxes, depreciation and amortization, restructuring and related costs (consisting primarily of severance and other restructuring related costs), stock-based compensation expense, and other income and expense items (including special infrequent items, foreign currency gains and losses, and other non-cash items). We also present AEBITDA margin, a non-GAAP measure, which we calculate as AEBITDA as a percentage of net revenues.
We believe that the presentation of AEBITDA provides useful information to investors regarding the Company’s results of operations because the measure assists both investors and management in analyzing and benchmarking the performance and value of our business. AEBITDA provides an indicator of performance that is not affected by fluctuations in certain costs or other items. Accordingly, management believes that this measure is useful for comparing general operating performance from period to period, and management relies on this measure for planning and forecasting of future periods. Additionally, this measure allows management to compare results with those of other companies that have different financing and capital structures. However, other companies may define
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AEBITDA differently, and as a result, our measure of AEBITDA may not be directly comparable to that of other companies. For further information regarding these non-GAAP measures, including the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures, please refer to the “Reconciliation of Net Income to AEBITDA (Loss)” section of this press release.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our future financial and operating performance, our liquidity and capital resources, the development and release plans of our games, and our mergers and acquisition strategy, all of which involve risks and uncertainties. Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance. Forward-looking statements include all statements that are not historical facts and can be identified by terms such as “may,” “might,” “will,” “should,” “expects,” “plans,” “anticipates,” “intends,” “believes,” “estimates,” “predicts,” “potential” or “continue,” the negative of these terms and other comparable terminology that conveys uncertainty of future events or outcomes. These forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors that may cause actual results to differ materially from statements made in this press release, including our ability to develop and publish our games; risks related to defects, errors, or vulnerabilities in our games and IT infrastructure; our ability to attract new, and retain existing, players of our games; the failure to timely develop and achieve market acceptance of new games and maintain the popularity of our existing games; rapidly evolving technological developments in the gaming market; competition in the industry in which we operate; our financial performance; our ability to execute merger and acquisition transactions; legal and regulatory developments; and general market, political, economic and business conditions. Other potential risks and uncertainties that could cause actual results to differ from the results predicted include, among others, those risks and uncertainties included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our registration statement on Form S-1 filed with the Securities and Exchange Commission (the “SEC”) on July 28, 2021 and in other filings we make with the SEC from time to time, including our Annual Report on Form 10-K for the twelve months ended December 31, 2021, to be filed with the SEC. All information provided in this release is based on information available to us as of the date of this press release and any forward-looking statements contained herein are based on assumptions that we believe are reasonable as of this date. Undue reliance should not be placed on the forward-looking statements in this press release, which are inherently uncertain. We undertake no duty to update this information unless required by law.
SOURCE: PLAYSTUDIOS, Inc.
PLAYSTUDIOS CONTACTS
Investor Relations
IR@playstudios.com
Media Relations
Amy Rossetti
media@playstudios.com
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PLAYSTUDIOS, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited and in thousands, except per share data)

Three Months Ended December 31,Year Ended December 31,
2021202020212020
Net revenue$71,929 $63,999 $287,419 $269,882 
Operating expenses:
Cost of revenue(1)
21,840 21,269 91,642 91,469 
Selling and marketing18,581 15,972 79,042 57,124 
General and administrative14,792 15,710 61,343 51,696 
Research and development5,512 3,132 27,902 16,960 
Depreciation and amortization7,253 5,787 27,398 22,192 
Restructuring expenses703 20,000 3,082 20,092 
Total operating costs and expenses68,681 81,870 290,409 259,533 
Income (loss) from operations3,248 (17,871)(2,990)10,349 
Other income (expense), net:
Change in fair value of warrant liabilities1,947 — 13,933 — 
Interest expense, net(29)(44)(235)(142)
Other income (expense), net13 415 (229)929 
Total other income, net1,931 371 13,469 787 
Income (loss) before income taxes5,179 (17,500)10,479 11,136 
Income tax benefit (expense)(4,561)6,738 258 1,671 
Net income (loss)$618 $(10,762)$10,737 $12,807 
Net income (loss) per share attributable to Class A and Class B common stockholders:
Basic$0.00 $(0.12)$0.10 $0.14 
Diluted$0.00 $(0.12)$0.09 $0.12 
Weighted average shares of common stock outstanding:
Basic126,074 93,028 111,718 92,917 
Diluted138,635 107,183 124,898 103,203 
(1)Amounts exclude depreciation and amortization.
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PLAYSTUDIOS, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited and in thousands, except par value amounts)

December 31,
2021
December 31,
2020
ASSETS
Current assets:
Cash and cash equivalents$213,502 $48,927 
Receivables20,693 16,616 
Prepaid expenses5,059 2,429 
Income tax receivable2,117 6,959 
Other current assets413 2,854 
Total current assets241,784 77,785 
Property and equipment, net5,289 6,201 
Internal-use software, net43,267 38,756 
Goodwill5,059 5,059 
Intangibles, net18,755 1,624 
Deferred income taxes6,282 3,109 
Other long-term assets14,408 1,927 
Total non-current assets93,060 56,676 
Total assets$334,844 $134,461 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable7,793 4,717 
Warrant liabilities6,521 — 
Accrued liabilities15,599 29,089 
Total current liabilities29,913 33,806 
Minimum guarantee liability— 300 
Deferred income taxes— 2,970 
Other long-term liabilities1,464 1,306 
Total non-current liabilities1,464 4,576 
Total liabilities$31,377 $38,382 
Commitments and contingencies
Stockholders’ equity:
Common stock, $0.00005 par value (117,918 shares authorized, none and 93,398 shares issued and outstanding as of December 31, 2021 and December 31, 2020, respectively)
— — 
Class A common stock, $0.0001 par value (2,000,000 shares authorized, 110,066 and 74,421 shares issued and outstanding as of December 31, 2021 and December 31, 2020, respectively)
11 
Class B common stock, $0.0001 par value (25,000 shares authorized, 16,130 shares issued and outstanding as of December 31, 2021 and December 31, 2020.
Additional paid-in capital268,522 71,786 
Retained earnings34,539 23,802 
Accumulated other comprehensive income393 481 
Total stockholders’ equity303,467 96,079 
Total liabilities and stockholders’ equity$334,844 $134,461 
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PLAYSTUDIOS, INC.
RECONCILIATION OF NET INCOME (LOSS) TO AEBITDA
(Unaudited and in thousands, except percentages)
The following table sets forth the reconciliation of AEBITDA and AEBITDA margin, which we calculate as AEBITDA as a percentage of net revenues, to net income (loss) and net income (loss) margin, the most directly comparable GAAP measures.

Three Months Ended December 31,Year Ended December 31,
2021202020212020
Net income (loss)$618 $(10,762)$10,737 $12,807 
Depreciation & amortization7,253 5,787 27,398 22,192 
Income tax (benefit) expense4,561 (6,738)(258)(1,671)
Stock-based compensation expense775 895 4,455 3,519 
Change in fair value of warrant liability(1,947)— (13,933)— 
Special infrequent(1)
— — 7,500 1,427 
Restructuring and related(2)
703 20,000 3,082 20,092 
Other(3)
20 (370)565 (392)
AEBITDA11,983 8,812 39,546 57,974 
GAAP revenue71,929 63,999 287,419 269,882 
Margin as a % of revenue
Net income (loss) margin0.9 %(16.8 %)3.7 %4.7 %
AEBITDA margin16.7 %13.8 %13.8 %21.5 %

(1)Amounts reported (i) for the year ended December 31, 2020 represent charitable donations made by us related to the COVID-19 pandemic, and (ii) for the year ended December 31, 2021, a transaction bonus and a charitable contribution per the terms of the merger agreement related to our business combination with Acies Acquisition Corp. (the “Merger Agreement”).
(2)Amounts reported during the three month and years ended December 31, 2021 and 2020 consist of (i) severance-related costs, (ii) fees related to potential mergers and acquisitions, and (iii) for the three months and year ended December 31, 2020, include $20.0 million resulting from the termination of the profit share provision of the MGM Marketing Agreement.
(3)Amounts reported in “Other” include interest expense, interest income, foreign currency gains/losses, and non-cash gains/losses on the disposal of assets.


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PLAYSTUDIOS, INC.
SUPPLEMENTAL DATA – KEY PERFORMANCE INDICATORS
(Unaudited and in thousands, except percentages and ARPDAU)

Three Months Ended December 31,Year Ended December 31,
20212020Change% Change20212020Change% Change
Average DAU1,292 1,286 0.5 %1,244 1,459 (215)(14.7 %)
Average MAU4,834 3,873 961 24.8 %4,111 4,251 (140)(3.3 %)
Average DPU33 31 6.5 %34 33 3.0 %
Average Daily Payer Conversion2.6 %2.4 %0.2pp8.3 %2.7 %2.3 %0.4pp17.4 %
ARPDAU (in dollars)$0.61 $0.54 $0.07 13.0 %$0.63 $0.51 $0.12 23.5 %
pp = percentage points


PLAYSTUDIOS, INC.
SUPPLEMENTAL DATA – PLAYAWARDS PLATFORM METRICS
(Unaudited and in thousands, except available rewards)

Three Months Ended December 31,Year Ended December 31,
20212020Change% Change20212020Change% Change
Available Rewards (in units)542 344 198 57.6 %477 442 35 7.9 %
Purchases (in units)482 269 213 79.2 %1,970 1,247 723 58.0 %
Retail Value of Purchases (in dollars)28,805 12,137 16,668 137.3 %114,426 58,770 55,656 94.7 %
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IT’S MORE THAN A GAME.


 
DISCLAIMER Forward Looking Statements This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our future financial and operating performance, our liquidity and capital resources, the development and release plans of our games, and our mergers and acquisition strategy, all of which involve risks and uncertainties. Actual results may differ materially from the results predicted and reported results should not be considered as an indication of future performance. Forward-looking statements include all statements that are not historical facts and can be identified by terms such as “may,” “might,” “will,” “should,” “expects,” “plans,” “anticipates,” “intends,” “believes,” “estimates,” “predicts,” “potential” or “continue,” the negative of these terms and other comparable terminology that conveys uncertainty of future events or outcomes. These forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors that may cause actual results to differ materially from statements made in this press release, including our ability to develop and publish our games; risks related to defects, errors, or vulnerabilities in our games and IT infrastructure; our ability to attract new, and retain existing, players of our games; the failure to timely develop and achieve market acceptance of new games and maintain the popularity of our existing games; rapidly evolving technological developments in the gaming market; competition in the industry in which we operate; our financial performance; our ability to execute merger and acquisition transactions; legal and regulatory developments; and general market, political, economic and business conditions. Other potential risks and uncertainties that could cause actual results to differ from the results predicted include, among others, those risks and uncertainties included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our registration statement on Form S-1 filed with the Securities and Exchange Commission (the “SEC”) on July 28, 2021 and in other filings we make with the SEC from time to time, including our Annual Report on Form 10-K for the year ended December 31, 2021, to be filed with the SEC. All information provided in this presentation is based on information available to us as of the date of this presentation and any forward-looking statements contained herein are based on assumptions that we believe are reasonable as of this date. Undue reliance should not be placed on the forward-looking statements in this presentation, which are inherently uncertain. We undertake no duty to update this information unless required by law. Non-GAAP Financial Measures To provide investors with information in addition to results as determined by GAAP, the Company discloses Adjusted Earnings Before Interest Taxes Depreciation and Amortization (“AEBITDA”) as a non-GAAP measure that management believes provides useful information to investors. This measure is not a financial measure calculated in accordance with GAAP and should not be considered as a substitute for revenue, net income or any other operating performance measure calculated in accordance with GAAP. We define AEBITDA as net income (loss) before interest, income taxes, depreciation and amortization, restructuring and related costs (consisting primarily of severance and other restructuring related costs), stock-based compensation expense, and other income and expense items (including special infrequent items, foreign currency gains and losses, and other non-cash items). We also present AEBITDA margin, a non-GAAP measure, which we calculate as AEBITDA as a percentage of net revenues. We believe that the presentation of AEBITDA provides useful information to investors regarding the Company’s results of operations because the measure assists both investors and management in analyzing and benchmarking the performance and value of our business. AEBITDA provides an indicator of performance that is not affected by fluctuations in certain costs or other items. Accordingly, management believes that this measure is useful for comparing general operating performance from period to period, and management relies on this measure for planning and forecasting of future periods. Additionally, this measure allows management to compare results with those of other companies that have different financing and capital structures. However, other companies may define AEBITDA differently, and as a result, our measure of AEBITDA may not be directly comparable to that of other companies. For further information regarding these non-GAAP measures, including the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures, please refer to the “Reconciliation of Net Income (Loss) to AEBITDA” section of this presentation. Trademarks This presentation contains trademarks, service marks, trade names and copyrights of Acies, PLAYSTUDIOS and other companies, which are the property of their respective owners.


 
DISCLAIMER (continued) Key Performance Indicators We manage our business by regularly reviewing several key operating metrics to track historical performance, identify trends in player activity, and set strategic goals for the future. Our key performance metrics are impacted by several factors that could cause them to fluctuate on a quarterly basis, such as platform providers’ policies, seasonality, player connectivity, and the addition of new content to games. We believe these measures are useful to investors for the same reasons. The key performance indicators may differ from similarly titled measures presented by other companies. For more information on our key performance indicators, please refer to the definitions below and the “Supplemental Data—Key Performance Indicators” in our SEC filings. Daily Active Users (“DAU”): DAU is defined as the number of individuals who played a game on a particular day. We track DAU by the player ID, which is assigned for each game installed by an individual. As such, an individual who plays two different games on the same day is counted as two DAU while an individual who plays the same game on two different devices is counted as one DAU. Average DAU is calculated as the average of the DAU for each day during the period presented. We use DAU as a measure of audience engagement to help us understand the size of the active player base engaged with our games on a daily basis. Monthly Active Users (“MAU”): MAU is defined as the number of individuals who played a game in a particular month. As with DAU, an individual who plays two different games in the same month is counted as two MAU while an individual who plays the same game on two different devices is counted as one MAU. Average MAU is calculated as the average of MAU for each calendar month during the period presented. We use MAU as a measure of audience engagement to help us understand the size of the active player base engaged with our games on a monthly basis. Daily Paying Users (“DPU”): DPU is defined as the number of individuals who made a purchase in a mobile game during a particular day. As with DAU and MAU, we track DPU based on account activity. As such, an individual who makes a purchase on two different games in a particular day is counted as two DPU while an individual who makes purchases in the same game on two different devices is counted as one DPU. Average DPU is calculated as the average of the DPU for each day during the period presented. We use DPU to understand the size of our active player base that makes in-game purchases. This focus directs our strategic goals in setting player acquisition and pricing strategy. Daily Payer Conversion: Daily Payer Conversion is defined as DPU as a percentage of DAU on a particular day. Average Daily Payer Conversion is calculated as the average DPU divided by average DAU for a given period. We use Daily Payer Conversion to understand the monetization of our active players. Average Daily Revenue Per DAU (“ARPDAU”): ARPDAU is defined for a given period as the average daily revenue per average DAU and is calculated as game and advertising revenue for the period, divided by the number of days in the period, divided by the average DAU during the period. We use ARPDAU as a measure of overall monetization of our players. playAWARDS Platform Metrics Available Rewards: Available Rewards is defined as the monthly average number of unique rewards available in our applications’ rewards stores. A reward appearing in more than one application’s reward store is counted only once. A reward is counted only once irrespective of the inventory available through that reward. For example, one reward for a free night in a hotel room with ten rooms available for such free night is counted as one reward. Available Rewards only include real-world partner rewards and exclude PLAYSTUDIOS digital rewards. We use Available Rewards as a measure of the value and potential impact of the program for an interested player. It is assumed that the greater the variety and breadth of rewards offered, the more likely players will be to ascribe value to the program. Purchases: Purchases is defined as the total number of rewards purchased for the period identified in which a player exchanges loyalty points for a reward. Purchases are not adjusted for refunds. Purchases only include purchases of real-world partner rewards and exclude any PLAYSTUDIOS digital rewards. The Company does not receive any compensation or revenues from Purchases. We use Purchases as a measure of audience interest and engagement with our playAWARDS platform. Retail Value of Purchases: Retail Value of Purchases is defined as the cumulative retail value of all rewards listed as Purchases for the period identified. The retail value of each reward listed as Purchases is the retail value as determined by the partner upon creation of the reward. In the case where the retail value of a reward adjusts depending on time of redemption, the average retail value is used. Retail Value of Purchases only include the retail value of real-world partner rewards and exclude the cost of any PLAYSTUDIOS branded merchandise. Real-world Partner rewards are provided at no cost to the Company. We use Retail Value of Purchases to help us understand the real-world value of the rewards that are purchased by our active players.


 
E A R N I N G S U P D A T E ( 4 T H Q u a r t e r & Ye a r - E n d 2 0 2 1 )


 
• Investment Highlights • Vision • Business Overview • Performance • Financials AGENDA


 
Founder-led Industry-leading Talent Loyal, Engaged and Valuable Audience Compelling Library of Games Proven record of efficient capital allocation Leader in Loyalty and Rewarded Play Global Network of Award Partners Dedicated Network of Players $40M ‘21 AEBITDA $114M ‘21 VALUE OF PURCHASES 15.4% 4-Yr Revenue CAGR 4.1M ‘21 AVERAGE MAU $287M ‘21 REVENUE 2.0M ‘21 # OF REWARD PURCHASES INVESTMENT HIGHLIGHTS Proprietary Loyalty Platform


 
V I S I O N


 
Dominate Rewarded Play.


 
PS Chance PS Casual PS Core PS Other Other Apps RPG I Strategy BingoSlots Puzzle I Card R ew ar ds P ar tn er s C on su m er s G am e D ev el op er s Other Games Hybrid All Genres VISION Evolve playAWARDS into a universal “Play-to-Earn” platform . . . PLAYSTUDIOS ‘Published’ Products 3rd Party Developers playAWARDS Marketplace


 
Become a platform company serving all genres . . . Platform Program Niche Portfolio • Multi-Tennancy • 3rd Party Apps • playCASTING • Multi-Genre • playLINK Integration • Casino Expansion • playAWARDS Expansion • Multi-product • Synchronized LP • Single Product with Rewards VISION


 
FOCUS Strategic Priorities Optimize CORE Products • Increase New Feature and LiveOps Density • Execute with Discipline • Improve Operating Margins 1. Expand our PORTFOLIO 2. • Scale Bingo Game • Scale MGM Slots Live • Optimize TETRIS • Execute M&A Strategy Advance playAWARDS Platform 3. • Expand Collection of Rewards Partners • Evolve Platform & Tools • Optimize Redemption Funnel Enhance our Business MODEL 4. • In-app Advertising • E-commerce • Blockchain/NFTs


 
B U S I N E S S O V E R V I E W


 
OVERVIEW 1. Optimize CORE Products 2. Expand our PORTFOLIO 3. Advance playAWARDS Platform 4. Enhance our Business MODEL Q4 Revenues of $71.9 million, up 12.4% YoY, driven by Core products and new games Q4 AEBITDA of $12.0 million Generalized select services into playLINK. Added 9 new partners including 18 Grams, Hong Kong’s premier espresso café, Mandolin, a live-streaming platform for the music industry, and 1-800- Flowers, and expanded relationship with Intercontinental Hotel Group. Expect increases in IAP, Advertising and Direct-Commerce revenues Anticipate 2022E revenue to be between $305 million and $325 million Expect 2022E AEBITDA to be between $40 million and $50 million Added free-to-play Puzzle games ~30 million downloads LTD Entered the casual Bingo category Leverage Exclusive IP Solid Year-on-Year Q4 Revenue and AEBITDA Growth Diversified Game Portfolio and Player Reach Progressed tech & tools Increased Brand Partner Reach Initiated 2022 Revenue and AEBITDA Guidance Advanced our strategic priorities


 
OPTIMIZE The Las Vegas experience in the palm of your hand! myVEGAS Group play innovation! Pop! Slots An authentic slot app for the casino purist! myKonami The most iconic casino brand and the best of POP! MGM Slots Live Areas of Focus Features – New Shows, Leagues & myVIP Upgrades Content – Innovative Games & Live Ops Monetization – Ads & Player Commerce (VIP Portals) Areas of Focus Features – Collectables, & Clubs Content – Game Cadence & Live Operations Density Monetization – Ads & Player Commerce – VIP Portals Areas of Focus Features – Missions 2.0, Collectables & Clubs Content – Innovative Games & Live Operations Density Monetization – Ads & Direct Commerce – myVEGAS.com Areas of Focus Features – New Shows, Leagues & myVIP Upgrades Content – Innovative Games & Live Ops Monetization – Ads & Player Commerce (VIP Portals) Continue to GROW our CORE products


 
EXPAND Diversify game portfolio – enter new genres. • 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 • playAWARDS Loyalty Integration Product Position & Focus Market Opportunity • Sizable overlap with existing PS audience • Fastest growing casino category • Ripe for creative differentiation • Revamp game economy • Enhance offer strategy • Optimize Ads • Integrate playAWARDS & myVIP • Develop & Launch TETRIS 2.0 • Exploit proven casual game playbook • Enriched Meta-progression features • New LiveOps Framework • Enhanced segmentation Product Position & Focus Market Opportunity • Enter the $23 billion casual/puzzle genre • Establish TETRIS as a distinct sub-genre • Leverage massive organic interest • Create Franchise position that rivals other leading puzzle games myVEGAS Bingo TETRIS Internalize Development & Operations Leverage TETRIS Popularity to Establish a New Sub-Genre


 
Continue to drive playAWARDS adoption and engagement ADVANCE Retail Value of In-Store Rewards $- $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 $70,000,000 COVID Omicron - 50,000 100,000 150,000 200,000 250,000 300,000 COVID Omicron Rewards Purchased


 
P E R F O R M A N C E


 
28.6 37.3 49.5 58.0 39.5 2017 2018 2019 2020 2021 AEBITDA 161.8 195.5 239.4 269.9 287.4 2017 2018 2019 2020 2021 Revenue Revenue and AEBITDA ($MM) FINANCIAL SNAPSHOT 15.4% CAGR Impacted by New Game Development


 
$- $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 - 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 1,800,000 2,000,000 DAU Revenue GROWTH We’ve cultivated our network and consistently scaled revenues. DA U M onthly Revenue COVID Impact


 
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 and their players. DIVERSIFY . . . our business model – focusing on Ad Monetization, Player Commerce, and Loyalty- as-a-Service.


 
Revenue & AEBITDA ($MM) 2022 GUIDANCE 74.1 70.8 70.6 71.9 287.4 325.0305.0 Actual 2021 Guidance 2022 REVENUE ($MM) Guidance RangeQ1 Q2 Q3 Q4 14.5 3.4 9.6 12.0 39.5 50.040.0 Actual 2021 Guidance 2022 AEBITDA ($MM) Guidance RangeQ1 Q2 Q3 Q4 • Initiating ‘22 Revenue guidance equating to 10% expected top-line growth at midpoint • Initiating ‘22 AEBITDA guidance equating to 14% growth at midpoint • Launch of MGM Slots Live as part of the POP! Slots franchise, systems, and tools • Internalizing myVEGAS Bingo in order to realize its full potential • Adding TETRIS to game portfolio


 
F I N A N C I A L S


 
2021 vs. 2020 Quarterly Revenue ($MM) FINANCIAL SNAPSHOT 58.3 77.9 69.7 64.0 74.1 70.8 70.6 71.9 Q1 Q2 Q3 Q4 2020 2021 RE VE N U E ($ M M )


 
13.5 22.5 13.2 8.8 14.5 3.4 9.6 12.0 Q1 Q2 Q3 Q4 2020 2021 2021 vs. 2020 Quarterly AEBITDA ($MM) FINANCIAL SNAPSHOT AE BI TD A ($ M M )


 
FINANCIALS Consolidated Statement of Operations


 
FINANCIALS Reconciliation of Net Income to AEBITDA


 
FINANCIALS Reconciliation of Net Income to AEBITDA (for CY’17 through ‘21)


 
FINANCIALS Reconciliation of Net Income to AEBITDA (Quarterly ’21 vs. ‘20)


 
t h a n k y o u !