Playtika Holding Corp. (NASDAQ: PLTK) today released financial
results for its fourth quarter and full-year results for the
periods ending December 31, 2020.
Fourth quarter 2020 financial
highlights:
- Fourth quarter revenue was $573.5
million compared to $488.2 million in the prior year period.
- Net income was $76 million compared
to $30 million in the prior year period due primarily to the
flow-through impact of increased revenues
- Adjusted EBITDA, a non-GAAP
financial measure defined below, was $210.4 million compared to
$169.7 million in the prior year period.
- After giving effect to the proceeds
raised in the IPO in January 2021, available liquidity, defined as
our Cash and Cash Equivalents as of December 31, 2020, plus our
undrawn revolving credit facility, is over $1 billion. On January
15, 2021, subsequent to quarter-end, the Company increased the
capacity under its revolving credit facility from $350 million to
$550 million.
2020 financial highlights:
- 2020 revenue of $2,371.5 million
compared to $1,887.6 million in the prior year. Revenue surpassed
$2 billion for the first time in 2020.
- Net income was $92.1 million
compared to $288.9 million in the prior year.
- Adjusted EBITDA was $941.6 million
compared to $712.1 million in the prior year.
“Playtika had an incredible year of growth and
achievement in 2020, culminating in our successful public offering
in January of 2021,” said Robert Antokol, Chief Executive Officer
of Playtika. “Throughout the challenging backdrop of 2020, our
people displayed the necessary commitment and teamwork to allow
Playtika to continue its mission of providing our customers with
infinite ways to play. As evidence of our progress, for the first
time our Casual portfolio recorded over $1 billion in annual
revenues. Our relentless focus on data and expertise in live
operations is the foundation of our success and will continue to
provide a competitive advantage as we look forward with optimism to
2021 and beyond.”
“We executed across our entire organization to
deliver an impressive set of results for both the fourth quarter
and full year 2020,” said Craig Abrahams, President and Chief
Financial Officer. “I was especially pleased with our continued
industry-leading organic revenue growth, all contributed by games
we have operated for many years, which underscores our
understanding of how mobile games work and how to operate them
successfully. This expertise, combined with our efficient marketing
and financial discipline enabled us to generate over $900 million
in adjusted EBITDA in 2020.”
Highlights
- Casual portfolio exceeded $1
billion in revenue for the first time
- Bingo Blitz celebrated its 10-year
anniversary with record revenue of $443 million, up 38% YoY
- Solitaire Grand Harvest achieved
record revenue of $147 million, up 95% YoY
- June’s Journey achieved record
revenue of $168 million, up 90% YoY
Financial OutlookFor the full
year 2021 the company anticipates revenue of $2.44 billion and
Adjusted EBITDA of $920 million.
Conference Call
Playtika management will host a conference call
at 5:30 a.m. Pacific Time (8:30 a.m. Eastern Time) today to discuss
the company’s results. The conference call can be accessed via the
conference numbers below and also via a webcast at the following
link. A replay of the call will be available through the website
one hour following the call and will be archived for one year.
- Toll-free dial-in number: 833)
957-2623
- International dial-in number: (661)
407-1623
- Conference ID: 1443938
Summary Operating Results of Playtika Holding
Corp.
|
Three months ended December 31, |
|
Year ended December 31, |
(in millions of
dollars, except percentages, Average DPUs, and
ARPDAU) |
2020 |
|
2019 |
|
2020 |
|
2019 |
Revenues |
$ |
573.5 |
|
|
$ |
488.2 |
|
|
$ |
2,371.5 |
|
|
$ |
1,887.6 |
|
Total cost and expenses |
$ |
431.2 |
|
|
$ |
394.8 |
|
|
$ |
1,984.3 |
|
|
$ |
1,390.2 |
|
Operating
income |
$ |
142.3 |
|
|
$ |
93.4 |
|
|
$ |
387.2 |
|
|
$ |
497.4 |
|
Net
income |
$ |
76.0 |
|
|
$ |
30.0 |
|
|
$ |
92.1 |
|
|
$ |
288.9 |
|
Adjusted
EBITDA |
$ |
210.4 |
|
|
$ |
169.7 |
|
|
$ |
941.6 |
|
|
$ |
712.1 |
|
Net income
margin |
13.3 |
% |
|
6.1 |
% |
|
3.9 |
% |
|
15.3 |
% |
Adjusted EBITDA
margin |
36.7 |
% |
|
34.8 |
% |
|
39.7 |
% |
|
37.7 |
% |
|
|
|
|
|
|
|
|
Non-financial
performance metrics |
|
|
|
|
|
|
|
Average DAUs |
10.5 |
|
|
11.1 |
|
|
11.2 |
|
|
10.2 |
|
Average DPUs (in thousands) |
272 |
|
|
247 |
|
|
285 |
|
|
218 |
|
Average Daily Payer Conversion |
2.6 |
% |
|
2.2 |
% |
|
2.6 |
% |
|
2.1 |
% |
ARPDAU |
$ |
0.59 |
|
|
$ |
0.48 |
|
|
$ |
0.58 |
|
|
$ |
0.51 |
|
Average MAUs |
31.2 |
|
|
35.7 |
|
|
34.2 |
|
|
33.3 |
|
About Playtika Holding
Corp.
Playtika Holding Corp. is a leading mobile
gaming company and monetization platform with over 35 million
monthly active users across a portfolio of games titles. Founded in
2010, Playtika was among the first to offer free-to-play social
games on social networks and, shortly after, on mobile platforms.
Headquartered in Herzliya, Israel, and guided by a mission to
entertain the world through infinite ways to play, Playtika has
over 3,700 employees in 19 offices worldwide including Tel-Aviv,
London, Berlin, Vienna, Helsinki, Montreal, Chicago, Las Vegas,
Santa Monica, Newport Beach, Sydney, Kiev, Bucharest, Minsk, Dnepr,
and Vinnytsia.
Forward Looking Information
In this press release, we make “forward-looking
statements” within the meaning of the U.S. Private Securities
Litigation Reform Act of 1995. Forward-looking statements can be
identified by the fact that they do not relate strictly to
historical or current facts. Further, statements that include words
such as "anticipate," "believe," "continue," "could," "estimate,"
"expect," "intend," "may," "might," "present," "preserve,"
"project," "pursue," "will," or "would," or the negative of these
words or other words or expressions of similar meaning may identify
forward-looking statements.
Important factors that could cause actual
results to differ materially from estimates or projections
contained in the forward-looking statements include without
limitation:
- our reliance on third-party
platforms, such as the iOS App Store, Facebook, and Google Play
Store, to distribute our games and collect revenues, and the risk
that such platforms may adversely change their policies;
- our reliance on a limited number of
games to generate the majority of our revenue;
- our reliance on a small percentage
of total users to generate a majority of our revenue;
- our free-to-play business model,
and the value of virtual items sold in our games, is highly
dependent on how we manage the game revenues and pricing
models;
- our inability to complete
acquisitions and integrate any acquired businesses successfully
could limit our growth or disrupt our plans and operations;
- we may be unable to successfully
develop new games;
- our ability to compete in a highly
competitive industry with low barriers to entry;
- we have significant indebtedness
and are subject to the obligations and restrictive covenants under
our debt instruments;
- the impact of the COVID-19 pandemic
on our business and the economy as a whole;
- our controlled company status;
- legal or regulatory restrictions or
proceedings could adversely impact our business and limit the
growth of our operations;
- risks related to our international
operations and ownership, including our significant operations in
Israel and Belarus and the fact that our controlling stockholder is
a Chinese-owned company;
- our reliance on key personnel;
- security breaches or other
disruptions could compromise our information or our players’
information and expose us to liability; and
- our inability to protect our
intellectual property and proprietary information could adversely
impact our business.
Additional factors that may cause future events
and actual results, financial or otherwise, to differ, potentially
materially, from those discussed in or implied by the
forward-looking statements include the risks and uncertainties
discussed in our filings with the Securities and Exchange
Commission. Although we believe that the expectations reflected in
the forward-looking statements are reasonable, we cannot guarantee
that the future results, levels of activity, performance or events
and circumstances reflected in the forward-looking statements will
be achieved or occur, and reported results should not be considered
as an indication of future performance. Given these risks and
uncertainties, readers are cautioned not to place undue reliance on
such forward-looking statements.
Except as required by law, we undertake no
obligation to update any forward-looking statements for any reason
to conform these statements to actual results or to changes in our
expectations.
PLAYTIKA HOLDING
CORP.CONSOLIDATED BALANCE
SHEETS(In millions, except for per share
data)
|
December 31, |
|
2020 |
|
2019 |
ASSETS |
|
|
|
Current
assets |
|
|
|
Cash and cash equivalents |
$ |
520.1 |
|
|
$ |
266.8 |
|
Restricted cash |
3.5 |
|
|
5.2 |
|
Accounts receivable |
129.3 |
|
|
125.7 |
|
Prepaid expenses and other current assets |
101.6 |
|
|
79.4 |
|
Total current assets |
754.5 |
|
|
477.1 |
|
Property and equipment,
net |
98.5 |
|
|
82.8 |
|
Operating lease right of use
assets |
73.4 |
|
|
58.0 |
|
Intangible assets other than
goodwill, net |
327.7 |
|
|
356.7 |
|
Goodwill |
484.8 |
|
|
474.2 |
|
Deferred tax assets, net |
28.5 |
|
|
28.2 |
|
Other non-current assets |
8.8 |
|
|
3.3 |
|
Total assets |
$ |
1,776.2 |
|
|
$ |
1,480.3 |
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY (DEFICIT) |
|
|
|
Current
liabilities |
|
|
|
Current maturities of long-term debt |
$ |
104.6 |
|
|
$ |
137.6 |
|
Accounts payable |
34.6 |
|
|
54.1 |
|
Operating lease liabilities, current |
16.4 |
|
|
10.5 |
|
Accrued expenses and other current liabilities |
484.8 |
|
|
351.7 |
|
Total current liabilities |
640.4 |
|
|
553.9 |
|
Long-term debt |
2,209.8 |
|
|
2,319.8 |
|
Employee related benefits |
16.1 |
|
|
70.2 |
|
Operating lease liabilities,
long-term |
67.0 |
|
|
52.4 |
|
Deferred tax liabilities,
net |
86.4 |
|
|
99.5 |
|
Total liabilities |
3,019.7 |
|
|
3,095.8 |
|
Commitments and
contingencies |
|
|
|
Stockholders' equity
(deficit) |
|
|
|
Common stock of US $0.01 par value: 400.0 shares authorized; 391.1
and 378.0 shares issued and outstanding as of December 31, 2020 and
2019, respectively |
3.9 |
|
|
3.8 |
|
Additional paid-in capital |
462.3 |
|
|
202.1 |
|
Accumulated other comprehensive loss |
16.7 |
|
|
(2.9 |
) |
Accumulated deficit |
(1,726.4 |
) |
|
(1,818.5 |
) |
Total stockholders' deficit |
(1,243.5 |
) |
|
(1,615.5 |
) |
Total liabilities and
stockholders’ equity (deficit) |
$ |
1,776.2 |
|
|
$ |
1,480.3 |
|
PLAYTIKA HOLDING
CORP.CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME(In millions, except for per share
data)
|
Three months ended December 31, |
|
Year ended December 31, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Revenues |
$ |
573.5 |
|
|
$ |
488.2 |
|
|
$ |
2,371.5 |
|
|
$ |
1,887.6 |
|
Costs and
expenses |
|
|
|
|
|
|
|
Cost of revenue |
173.5 |
|
|
150.6 |
|
|
712.2 |
|
|
566.3 |
|
Research and development expenses |
76.8 |
|
|
60.8 |
|
|
268.9 |
|
|
210.5 |
|
Sales and marketing expenses |
134.2 |
|
|
110.2 |
|
|
502.0 |
|
|
413.7 |
|
General and administrative expenses |
46.7 |
|
|
73.2 |
|
|
501.2 |
|
|
199.7 |
|
Total costs and expenses |
431.2 |
|
|
394.8 |
|
|
1,984.3 |
|
|
1,390.2 |
|
Income from
operations |
142.3 |
|
|
93.4 |
|
|
387.2 |
|
|
497.4 |
|
Interest expense and other, net |
43.7 |
|
|
40.5 |
|
|
192.8 |
|
|
61.1 |
|
Income before income
taxes |
98.6 |
|
|
52.9 |
|
|
194.4 |
|
|
436.3 |
|
Provision for income taxes |
22.6 |
|
|
22.9 |
|
|
102.3 |
|
|
147.4 |
|
Net
income |
76.0 |
|
|
30.0 |
|
|
92.1 |
|
|
288.9 |
|
Other comprehensive
income (loss) |
|
|
|
|
|
|
|
Foreign currency translation |
10.7 |
|
|
3.8 |
|
|
19.6 |
|
|
(3.2 |
) |
Total other comprehensive income (loss) |
10.7 |
|
|
3.8 |
|
|
19.6 |
|
|
(3.2 |
) |
Comprehensive
income |
$ |
86.7 |
|
|
$ |
33.8 |
|
|
$ |
111.7 |
|
|
$ |
285.7 |
|
|
|
|
|
|
|
|
|
Net income per share
attributable to common stockholders, basic |
$ |
0.19 |
|
|
$ |
0.08 |
|
|
$ |
0.24 |
|
|
$ |
0.76 |
|
Net income per share
attributable to common stockholders, diluted |
$ |
0.19 |
|
|
$ |
0.08 |
|
|
$ |
0.24 |
|
|
$ |
0.76 |
|
Weighted-average
shares used in computing net income per share attributable to
common stockholders, basic |
391.1 |
|
|
378.0 |
|
|
384.7 |
|
|
378.0 |
|
Weighted-average
shares used in computing net income per share attributable to
common stockholders, diluted |
392.0 |
|
|
378.0 |
|
|
384.7 |
|
|
378.0 |
|
Non-GAAP Financial Measures
Adjusted EBITDA is a non-GAAP financial measure
and should not be construed as an alternative to net income as an
indicator of operating performance, nor as an alternative to cash
flow provided by operating activities as a measure of liquidity, or
any other performance measure in each case as determined in
accordance with GAAP.
Below is a reconciliation of net income, the
closest GAAP financial measure, to Adjusted EBITDA. We define
Adjusted EBITDA as net income before (i) interest expense, (ii)
interest income, (iii) provision for income taxes, (iv)
depreciation and amortization expense, (v) stock-based
compensation, (vi) legal settlements, (vii) contingent
consideration, (viii) acquisition and related expenses, (ix)
long-term compensation plan, (x) M&A related retention
payments, and (xi) certain other items, including impairments. We
calculate Adjusted EBITDA Margin as Adjusted EBITDA divided by
revenues.
We supplementally present Adjusted EBITDA and
Adjusted EBITDA Margin because they are key operating measures used
by our management to assess our financial performance. Adjusted
EBITDA adjusts for items that we believe do not reflect the ongoing
operating performance of our business, such as certain noncash
items, unusual or infrequent items or items that change from period
to period without any material relevance to our operating
performance. Management believes Adjusted EBITDA and Adjusted
EBITDA Margin are useful to investors and analysts in highlighting
trends in our operating performance, while other measures can
differ significantly depending on long-term strategic decisions
regarding capital structure, the tax jurisdictions in which we
operate and capital investments. Management uses Adjusted EBITDA
and Adjusted EBITDA Margin to supplement GAAP measures of
performance in the evaluation of the effectiveness of our business
strategies, to make budgeting decisions, and to compare our
performance against other peer companies using similar measures. We
evaluate Adjusted EBITDA and Adjusted EBITDA Margin in conjunction
with our results according to GAAP because we believe they provide
investors and analysts a more complete understanding of factors and
trends affecting our business than GAAP measures alone. Adjusted
EBITDA and Adjusted EBITDA Margin should not be considered as
alternatives to net income as a measure of financial performance,
or any other performance measure derived in accordance with
GAAP.
Adjusted EBITDA and Adjusted EBITDA Margin as
calculated herein may not be comparable to similarly titled
measures reported by other companies within the industry and are
not determined in accordance with GAAP. Our presentation of
Adjusted EBITDA and Adjusted EBITDA Margin should not be construed
as an inference that our future results will be unaffected by
unusual or unexpected items.
RECONCILIATION OF NET INCOME AT ADJUSTED
EBITDA
|
Three months ended December 31, |
|
Year ended December 31, |
(In
millions) |
2020 |
|
2019 |
|
2020 |
|
2019 |
Net income |
$ |
76.0 |
|
|
$ |
30.0 |
|
|
$ |
92.1 |
|
|
$ |
288.9 |
|
Provision for income taxes |
22.6 |
|
|
22.9 |
|
|
102.3 |
|
|
147.4 |
|
Interest expense and other, net |
43.7 |
|
|
40.5 |
|
|
192.8 |
|
|
61.1 |
|
Depreciation and amortization |
34.2 |
|
|
22.8 |
|
|
119.2 |
|
|
73.0 |
|
EBITDA |
176.5 |
|
|
116.2 |
|
|
506.4 |
|
|
570.4 |
|
Share-based compensation(1) |
11.2 |
|
|
— |
|
|
276.0 |
|
|
— |
|
Legal settlement(2) |
— |
|
|
— |
|
|
37.6 |
|
|
— |
|
Acquisition and related expenses(3) |
1.4 |
|
|
33.2 |
|
|
31.4 |
|
|
57.1 |
|
One-time items, including impairment(4) |
4.0 |
|
|
— |
|
|
7.5 |
|
|
(6.5 |
) |
Long-term cash compensation(5) |
16.3 |
|
|
17.1 |
|
|
67.6 |
|
|
72.7 |
|
M&A related retention payments(6) |
1.0 |
|
|
3.2 |
|
|
15.1 |
|
|
18.4 |
|
Adjusted
EBITDA |
$ |
210.4 |
|
|
$ |
169.7 |
|
|
$ |
941.6 |
|
|
$ |
712.1 |
|
Net income
margin |
13.3 |
% |
|
6.1 |
% |
|
3.9 |
% |
|
15.3 |
% |
Adjusted EBITDA
margin |
36.7 |
% |
|
34.8 |
% |
|
39.7 |
% |
|
37.7 |
% |
_________
(1) |
Reflects, for the three months and year ended December 31,
2020, stock-based compensation expense related to the issuance of
certain equity awards to members of management. |
(2) |
Reflects a legal settlement expense of $37.6 million for the year
ended December 31, 2020. |
(3) |
Includes (i) contingent consideration payments with respect to our
acquisitions of Seriously Holding Corp. and Supertreat GmbH in
2019, and (ii) third-party fees for actual or planned acquisitions,
including related legal, consulting and other expenditures. |
(4) |
Primarily reflects business optimization expenses for the three
months and year ended December 31, 2020, and income from an early
termination of a license agreement during the year ended December
31, 2019. |
(5) |
Includes expenses recognized for grants of annual cash awards to
employees pursuant to our Retention Plans, which awards are
incremental to salary and bonus payments, and which plans expire in
2024. |
(6) |
Includes retention awards to key individuals associated with
acquired companies as an incentive to retain those individuals on a
long-term basis. |
Contacts
Investor
Relations |
|
Press
Contact |
Playtika |
|
The OutCast Agency |
David Niederman |
|
Angela Allison |
davidni@playtika.com |
|
playtika@theoutcastagency.com |
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