-
Fourth Quarter Revenue of $64.0 million and Full Year 2020
Revenue of $269.9 million, representing year-over-year growth of
12.9% and 12.7% respectively
-
Company entered the Casual Bingo market in 1Q2021 with its
myVEGAS Bingo product, bringing real-world rewards and loyalty
benefits to this robust category
PLAYSTUDIOS, Inc. (“PLAYSTUDIOS” or the “Company”), an
award-winning developer of free-to-play casual games for mobile and
social platforms that offer real-world rewards to loyal players,
today announced preliminary financial results for the fourth
quarter and full year ended December 31, 2020. The preliminary
results are subject to completion of the Company’s year-end
financial reporting process as described below.
PLAYSTUDIOS expects revenue for the fourth quarter of 2020 to be
$64.0 million and for the full year 2020 to be $269.9 million,
representing year-over-year growth of 12.9% and 12.7%,
respectively, and expects a net loss of $10.8 million and net
income of $12.8 million for the same periods. The fourth quarter
net income was impacted by a one-time accrual of expenses related
to the restructuring of the company’s commercial arrangement with
MGM Resorts International. In addition, there were significant
development costs in the fourth quarter related to the recently
launched myVEGAS Bingo and the upcoming Kingdom Boss idle RPG game.
As a result of these expenses, PLAYSTUDIOS expects Adjusted EBITDA,
before adjusting for the impact of costs capitalized for
internal-use software projects, for the fourth quarter of 2020 to
be $8.8 million and the full year 2020 to be $58.0 million,
representing a year-over-year change of (16.5%) and 17.1%,
respectively. After adjusting for the impact of costs capitalized
for internal-use software projects, Adjusted EBITDA is expected to
be $1.8 million and $32.8 million for the same periods,
representing a year-over-year change of (66.1%) and 15.1%,
respectively.
Andrew Pascal, Chief Executive Officer of PLAYSTUDIOS, said:
“We’re encouraged by the growth that is reflected in our year-end
results, and the momentum we carried into the first quarter.”
Pascal further said: “We expect our performance in 2021 to be
bolstered by the recent launch of our newest addition to our
portfolio, myVEGAS Bingo. Bingo is among the fastest-growing game
categories, and we believe our combination of real-world rewards,
standard-setting creative execution, and established brands will
make it a stand-out product in the coming months and quarters.”
Additional Recent Business Highlights
- Entered into a merger agreement with Acies Acquisition Corp.
(Nasdaq: ACAC) (“Acies”) which, upon closing, will result in the
Company becoming a Nasdaq listed company under the ticker symbol
“MYPS.”
- Entered one of the fastest growing game categories with the
introduction of myVEGAS Bingo, released on March 15, 2021.
- Recognized as a 2021 Top Publisher Award Winner for second year
in a row by App Annie, the industry standard for app analytics and
performance data.
- Continued to add innovative features and new content to each of
its game franchises, including King & Kraken, an innovative new
social game combining traditional virtual slot mechanics with
social quests and shared rewards, along with the relaunch of SHAQ9,
which puts fans next to a virtual version of NBA Hall-of-Famer
Shaquille O’Neal as they spin reel slots, unlock mini-games and
earn valuable loyalty points.
Cautionary Statement Regarding Preliminary Results
The results for the fourth quarter and full year ended December
31, 2020 are preliminary and subject to completion of our financial
closing procedures, reflect management’s current views and may
change following the completion of our financial closing
procedures. The preliminary results have not been audited or
reviewed by our independent registered public accounting firm, and
should not be viewed as a substitute for full financial statements
prepared in accordance with GAAP. We caution that these preliminary
results are not guarantees of future performance or outcomes and
that actual results may differ materially from those described
above.
About PLAYSTUDIOS, Inc.
PLAYSTUDIOS is the developer and operator of award-winning
free-to-play casual games for mobile and social platforms. Its
collection of original and published titles is powered by the
company’s groundbreaking playAWARDS loyalty marketing platform,
which enables players to earn real-world rewards from a portfolio
of global entertainment, retail, technology, travel, leisure, and
gaming brands across 15 countries and four continents. Founded by a
team of veteran hospitality, technology, and gaming entrepreneurs,
PLAYSTUDIOS brings together the best of mobile gaming with an
innovative loyalty platform in order to provide its players with an
unequaled entertainment experience and its partners with actionable
business insights.
About Acies Acquisition Corp.
Acies Acquisition Corp. is a newly organized blank check
company, formed for the purpose of effecting a merger, share
exchange, asset acquisition, share purchase, reorganization or
similar business combination with one or more businesses. The
Company was established in October 2020 to focus on identifying a
business combination target within the live, location-based and
mobile experiential entertainment industries. To learn more about
Acies, visit https://aciesacq.com.
Non-GAAP Financial Measures
To provide investors with information in addition to results as
determined by GAAP, the Company discloses Adjusted EBITDA 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, and may not
be comparable to a similarly titled measure reported by other
companies.
We define Adjusted EBITDA as net income 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) and adjusting
for the impact of costs capitalized for internal-use software
projects. We present Adjusted EBITDA both before and after the
impact of costs capitalized for internal-use software projects
because there is substantial diversity in the amount of software
development costs capitalized by other companies in our industry,
which may be driven by differences in such companies’ management’s
judgment or their operational approaches to software development.
We believe that presenting Adjusted EBITDA both before and after
costs capitalized for internal-use software projects, improves the
comparability of our results against other companies in our
industry.
We believe that the presentation of Adjusted EBITDA 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. Adjusted EBITDA provides an indicator of
performance that is not affected by fluctuations in certain costs
or other items. Accordingly, management believes that this
measurement is useful for comparing general operating performance
from period to period, and management relies on this measures 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 Adjusted EBITDA differently,
and as a result, our measure of Adjusted EBITDA may not be directly
comparable to that of other companies.
PLAYSTUDIOS, INC.
RECONCILIATION OF NET INCOME
(LOSS) TO ADJUSTED EBITDA
(in millions)
(unaudited)
3 Months Ended
Year Ended
December 31,
December 31,
2020
2019
2020
2019
Net income / (loss)
(10.8
)
5.4
12.8
13.6
Depreciation & amortization
5.8
5.1
22.2
25.2
Income tax (benefit) expense
(6.8
)
(0.8
)
(1.7
)
4.0
Stock-based compensation expense
0.9
0.9
3.5
5.9
Special infrequent(1)
-
-
1.4
-
Restructuring expense(3)
20.0
-
20.1
1.2
Other(2)
(0.3
)
-
(0.3
)
(0.4
)
AEBITDA before adjustment for the
impact of capitalized software costs
8.8
10.6
58.0
49.5
Impact of capitalized software costs
(7.0
)
(5.4
)
(25.2
)
(21.0
)
AEBITDA
1.8
5.2
32.8
28.5
(1) Amounts reported during the year ended
December 31, 2020 represent charitable donations
made by us related to the COVID-19
pandemic.
(2) Amounts reported in “Other” include
interest expense, interest income, foreign currency
gains/losses, and non-cash gains/losses on
the disposal of assets.
(3) Amounts reported during the year ended
December 31, 2020 primarily consist of a one-time
expense of $20.0 million resulting from
the restructuring of the company's commercial arrangement
with MGM Resorts. Amounts reported during
the year ended December 31, 2019 primarily consist
of severance-related costs.
Forward-Looking Statements
This press release includes “forward-looking statements” within
the meaning of the “safe harbor” provisions of the Private
Securities Litigation Reform Act of 1995. The Company’s and Acies’
actual results may differ from their expectations, estimates and
projections and consequently, you should not rely on these forward
looking statements as predictions of future events. Words such as
“expect,” “estimate,” “project,” “budget,” “forecast,”
“anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,”
“believes,” “predicts,” “potential,” “continue,” and similar
expressions are intended to identify such forward-looking
statements. These forward-looking statements include, without
limitation, the Company’s expectations with respect to its
financial results for the fourth quarter and full year ended
December 31, 2020; the Company’s expectations for entering the
Casual Bingo market with its myVEGAS Bingo product; the closing of
the business combination transaction between the Company and Acies;
the future performance and anticipated financial impacts of the
proposed business combination; the satisfaction of the closing
conditions to the proposed transaction, the timing of the
completion of the proposed transaction, the future financial
condition and performance of PLAYSTUDIOS and expected financial
impacts of the transaction (including future revenue, Adjusted
EBITDA, pro forma equity value and cash balance); and the products,
markets, future performance and market opportunities of
PLAYSTUDIOS. These forward-looking statements involve significant
risks and uncertainties that could cause the actual results to
differ materially from the expected results. Most of these factors
are outside the Company’s and Acies’ control and are difficult to
predict. Factors that may cause such differences include, but are
not limited to: (1) the risk that the transaction may not be
completed in a timely manner or at all, which may adversely affect
the price of Acies’ securities; (2) the risk that the transaction
may not be completed by Acies’ business combination deadline and
the potential failure to obtain an extension of the business
combination deadline if sought by Acies (3) the failure to satisfy
the conditions to the consummation of the transaction, including
the approval of the merger agreement by the stockholders of Acies,
the satisfaction of the minimum trust account amount following any
redemptions by Acies’ public stockholders and the receipt of
certain governmental and regulatory approvals; (4) the lack of a
third party valuation in determining whether or not to pursue the
proposed transaction; (5) the inability to complete the PIPE
transaction; (6) the effect of the announcement or pendency of the
transaction on the Company’s business relationships, operating
results and business generally; (7) the ability to maintain the
listing of Acies’ securities on a national securities exchange; (8)
changes in the competitive and regulated industries in which the
Company operates, variations in operating performance across
competitors, changes in laws and regulations affecting the
Company’s business and changes in the combined capital structure;
(9) the ability to implement business plans, forecasts, and other
expectations after the completion of the proposed transaction, and
to identify and realize additional opportunities; (10) costs
related to the transaction and the failure to realize anticipated
benefits of the transaction or to realize estimated pro forma
results and underlying assumptions, including with respect to
estimated shareholder redemptions; or (11) other risks and
uncertainties included in Acies’ or the Company’s other filings
with the U.S. Securities and Exchange Commission (the “SEC”). The
foregoing list of factors is not exclusive, and readers should also
refer to those risks included under the heading “Risk Factors” in
the registration statement on Form S-4 (File No. 333-253135)
containing the proxy statement/prospectus relating to the proposed
business combination filed by Acies with the SEC, those included
under the heading “Risk Factors” in the final prospectus of Acies
related to its initial public offering and those included in other
filings made by Acies or the Company with the SEC from time to
time. Readers are cautioned not to place undue reliance upon any
forward-looking statements in this press release, which speak only
as of the date made. Acies and the Company do not undertake or
accept any obligation or undertaking to release publicly any
updates or revisions to any forward-looking statements in this
press release to reflect any change in its expectations or any
change in events, conditions or circumstances on which any such
statement is based.
Important Information About the Proposed Business Combination
and Where to Find It
In connection with the proposed business combination, Acies
filed a registration statement on Form S-4 with the SEC on February
16, 2021, which includes a proxy statement/prospectus, that is both
the proxy statement to be distributed to holders of Acies’ common
stock in connection with its solicitation of proxies for the vote
by Acies’ stockholders with respect to the proposed business
combination and other matters as may be described in the
registration statement, as well as the prospectus relating to the
offer and sale of the securities to be issued in the business
combination. After the registration statement is declared
effective, Acies will mail a definitive proxy statement/prospectus
and other relevant documents to its stockholders. This document
does not contain all the information that should be considered
concerning the proposed business combination and is not intended to
form the basis of any investment decision or any other decision in
respect of the business combination. Acies’ stockholders, the
Company’s stockholders and other interested persons are advised to
read, when available, the preliminary proxy statement/prospectus
included in the registration statement and the amendments thereto
and the definitive proxy statement/prospectus and other documents
filed in connection with the proposed business combination, as
these materials will contain important information about the
Company, Acies and the business combination. When available, the
definitive proxy statement/prospectus and other relevant materials
for the proposed business combination will be mailed to
stockholders of Acies as of a record date to be established for
voting on the proposed business combination. Acies’ stockholders
and the Company’s stockholders will also be able to obtain copies
of the proxy statement / prospectus and other documents filed with
the SEC, without charge, once available, at the SEC’s website at
www.sec.gov, or by directing a request to: Acies Acquisition Corp.,
1219 Morningside Drive, Suite 110, Manhattan Beach, CA 90266.
Participants in the Solicitation
Acies and PLAYSTUDIOS and their respective directors and
officers may be deemed participants in the solicitation of proxies
of Acies’ stockholders in connection with the proposed business
combination. A list of the names of such directors and executive
officers and information regarding their interests in the business
combination are contained in the proxy statement/prospectus. You
may obtain free copies of these documents as described in the
preceding paragraph.
No Offer or Solicitation
This press release shall not constitute a solicitation of a
proxy, consent or authorization with respect to any securities or
in respect of the proposed business combination. This press release
shall also not constitute an offer to sell or the solicitation of
an offer to buy any securities, nor shall there be any sale of
securities in any states or jurisdictions in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such jurisdiction.
No offering of securities shall be made except by means of a
prospectus meeting the requirements of the Securities Act of 1933,
as amended.
SOURCE: Acies Acquisition Corp.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210317005481/en/
Investors Jacques Cornet IR@playstudios.com Media Relations Doug
Donsky / Amy Rossetti media@playstudios.com Acies Acquisition Corp.
info@aciesacq.com
Acri Capital (NASDAQ:ACACW)
Historical Stock Chart
From May 2024 to Jun 2024
Acri Capital (NASDAQ:ACACW)
Historical Stock Chart
From Jun 2023 to Jun 2024