UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 10, 2022
Commission File Number: 001-39896
(Exact Name of Registrant as Specified in its Charter)
| (State of other jurisdiction | (I.R.S. Employer | |||||||
| of incorporation or organization) | Identification No.) | |||||||
(Address, including zip code, and telephone number, including area code, of registrant’s principal executive offices)
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):
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
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 May 10, 2022, Playtika Holding Corp. issued a press release announcing its financial results for the quarter ended March 31, 2022. A copy of the press release is furnished herewith as Exhibit 99.1.
In accordance with General Instruction B.2. of Form 8-K, the information in this Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or the Exchange Act, 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, or the Exchange Act, except as expressly set forth by specific reference in such a filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
| 99.1 | ||||||||
| 99.2 | ||||||||
| 104 | Cover page interactive data file (embedded within the Inline XBRL document). | |||||||
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, thereunto duly authorized.
| PLAYTIKA HOLDING CORP. | |||||
| Registrant | |||||
| By: | /s/ Craig Abrahams | ||||
| Craig Abrahams | |||||
| President and Chief Financial Officer | |||||
| Dated as of May 10, 2022 | |||||
Exhibit 99.1
Playtika Holding Corp. Reports First Quarter 2022 Results
First Quarter Revenue Grew to $676.9 million, up 6.0% year-over-year and up 4.3% Sequentially
Average Daily Payer Conversion Increased to 3.2%
Casual Portfolio Revenue Grew 20.7% year-over-year and is now 52.5% of Total Revenue
Herzliya, Israel - May 10, 2022 - Playtika Holding Corp. (NASDAQ: PLTK) today released financial results for its first quarter for the period ending March 31, 2022.
First Quarter 2022 Financial Highlights:
•First quarter revenue was $676.9 million compared to $638.9 million in the prior year period.
•Net income was $83.2 million compared to $35.7 million in the prior year period.
•Adjusted EBITDA, a non-GAAP financial measure defined below, was $220.5 million compared to $258.0 million in the prior year period.
•Our cash and cash equivalents and short-term bank deposits totaled $1,107.9 million as of March 31, 2022 with $600 million in additional borrowing capacity pursuant to our Revolving Credit Facility, resulting in over $1.7 billion of available liquidity.
“We delivered strong revenue growth as a result of our continual efforts to improve and refine our monetization program and increase retention of our players,” said Robert Antokol, Chief Executive Officer of Playtika. “The year began with investment in our product roadmaps and new marketing campaigns to secure our foundation for ongoing growth. I want to thank our employees who have remained resilient through the war in Ukraine. I am forever grateful for their sacrifice and dedication to helping Playtika become a market leader in mobile gaming entertainment.”
“Our differentiated live-ops and direct-to-consumer platforms provided strong sequential revenue growth in the first quarter across both our casual and casino games portfolio, and we are encouraged by strong operating metrics, with increases in average daily payer conversion and ARPDAU,” said Craig Abrahams, President and Chief Financial Officer. “We continue to lay the groundwork for future growth by making investments in the business to support new game development, recent acquisitions, offline marketing campaigns, and investments in our workforce. These investments in marketing are weighted more heavily to the start of the year and will position the company well for sustainable growth.”
Highlights
•Casual portfolio grew revenue 20.7% year-over-year, comprising 52.5% of total revenue
•Average Daily Payer Conversion increased to 3.2%, up from 2.8% in Q1’21
•Direct-to-Consumer channel grew 31.5% year-over-year and is now 22.5% of total revenue
•Solitaire Grand Harvest grew revenue 41.7% year-over-year
•Junes Journey grew revenue 30.4% year-over-year
•Caesars Casino grew revenue 8.2% year-over-year
New Game Developments
•Merge Stories launch planned for Q3’22
◦Built by our Jelly Button studio, creators of Board Kings
•Two additional titles in development slated to soft launch for testing in 2022
Financial Outlook
For the full year 2022 the company anticipates revenue of $2.73 billion and Adjusted EBITDA of $940 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 accessible at investors.playtika.com. 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) 665-0587
•International dial-in number: (661) 407-1603
•Conference ID: 3398904
Summary Operating Results of Playtika Holding Corp.
| Three months ended March 31, | |||||||||||
| (in millions of dollars, except percentages, Average DPUs, and ARPDAU) | 2022 | 2021 | |||||||||
| Revenues | $ | 676.9 | $ | 638.9 | |||||||
| Total cost and expenses | $ | 556.5 | $ | 508.6 | |||||||
| Operating income | $ | 120.4 | $ | 130.3 | |||||||
| Net income | $ | 83.2 | $ | 35.7 | |||||||
| Adjusted EBITDA | $ | 220.5 | $ | 258.0 | |||||||
| Net income margin | 12.3 | % | 5.6 | % | |||||||
| Adjusted EBITDA margin | 32.6 | % | 40.4 | % | |||||||
| Non-financial performance metrics | |||||||||||
| Average DAUs | 10.1 | 10.4 | |||||||||
| Average DPUs (in thousands) | 323 | 296 | |||||||||
| Average Daily Payer Conversion | 3.2 | % | 2.8 | % | |||||||
| ARPDAU | $ | 0.74 | $ | 0.68 | |||||||
| Average MAUs | 31.7 | 31.4 | |||||||||
About Playtika Holding Corp.
Playtika (NASDAQ: PLTK) is a mobile gaming entertainment and technology market leader with a portfolio of multiple game 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 offices worldwide and employs over 4,000 employees.
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, Ukraine 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)
| March 31, | December 31, | ||||||||||
| 2022 | 2021 | ||||||||||
| (Unaudited) | |||||||||||
| ASSETS | |||||||||||
| Current assets | |||||||||||
| Cash and cash equivalents | $ | 885.8 | $ | 1,017.0 | |||||||
| Short-term bank deposits | 222.1 | 100.1 | |||||||||
| Restricted cash | 2.0 | 2.0 | |||||||||
| Accounts receivable | 139.7 | 143.7 | |||||||||
| Prepaid expenses and other current assets | 97.2 | 72.9 | |||||||||
| Total current assets | 1,346.8 | 1,335.7 | |||||||||
| Property and equipment, net | 105.6 | 103.3 | |||||||||
| Operating lease right-of-use assets | 98.8 | 89.4 | |||||||||
| Intangible assets other than goodwill, net | 419.3 | 417.3 | |||||||||
| Goodwill | 829.3 | 788.1 | |||||||||
| Deferred tax assets, net | 40.6 | 38.3 | |||||||||
| Investments in unconsolidated entities | 17.8 | 17.8 | |||||||||
| Other non-current assets | 30.7 | 13.4 | |||||||||
| Total assets | $ | 2,888.9 | $ | 2,803.3 | |||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | |||||||||||
| Current liabilities | |||||||||||
| Current maturities of long-term debt | $ | 12.2 | $ | 12.2 | |||||||
| Accounts payable | 41.9 | 45.7 | |||||||||
| Operating lease liabilities, current | 20.0 | 17.2 | |||||||||
| Accrued expenses and other current liabilities | 457.4 | 494.6 | |||||||||
| Total current liabilities | 531.5 | 569.7 | |||||||||
| Long-term debt | 2,420.3 | 2,422.9 | |||||||||
| Contingent consideration | 30.0 | 28.7 | |||||||||
| Employee related benefits and other long-term liabilities | 3.1 | 23.7 | |||||||||
| Operating lease liabilities, long-term | 87.9 | 82.3 | |||||||||
| Deferred tax liabilities | 56.1 | 53.7 | |||||||||
| Total liabilities | 3,128.9 | 3,181.0 | |||||||||
| Commitments and contingencies | |||||||||||
| Stockholders' equity (deficit) | |||||||||||
Common stock of $0.01 par value; 1,600.0 shares authorized; 412.2 and 411.1 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively | 4.1 | 4.1 | |||||||||
| Additional paid-in capital | 1,072.0 | 1,032.9 | |||||||||
| Accumulated other comprehensive income | 18.6 | 3.2 | |||||||||
| Accumulated deficit | (1,334.7) | (1,417.9) | |||||||||
| Total stockholders' deficit | (240.0) | (377.7) | |||||||||
| Total liabilities and stockholders’ deficit | $ | 2,888.9 | $ | 2,803.3 | |||||||
PLAYTIKA HOLDING CORP.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In millions, except for per share data)
(Unaudited)
| Three months ended March 31, | |||||||||||
| 2022 | 2021 | ||||||||||
| Revenues | $ | 676.9 | $ | 638.9 | |||||||
| Costs and expenses | |||||||||||
| Cost of revenue | 186.9 | 183.0 | |||||||||
| Research and development | 112.7 | 85.2 | |||||||||
| Sales and marketing | 179.7 | 140.1 | |||||||||
| General and administrative | 77.2 | 100.3 | |||||||||
| Total costs and expenses | 556.5 | 508.6 | |||||||||
| Income from operations | 120.4 | 130.3 | |||||||||
| Interest expense and other, net | 27.5 | 75.7 | |||||||||
| Income before income taxes | 92.9 | 54.6 | |||||||||
| Provision for income taxes | 9.7 | 18.9 | |||||||||
| Net income | 83.2 | 35.7 | |||||||||
| Other comprehensive income (loss) | |||||||||||
| Foreign currency translation | (3.3) | (9.9) | |||||||||
| Change in fair value of derivatives | 18.7 | (0.1) | |||||||||
| Total other comprehensive income (loss) | 15.4 | (10.0) | |||||||||
| Comprehensive income | $ | 98.6 | $ | 25.7 | |||||||
| Net income per share attributable to common stockholders, basic | $ | 0.20 | $ | 0.09 | |||||||
| Net income per share attributable to common stockholders, diluted | $ | 0.20 | $ | 0.09 | |||||||
| Weighted-average shares used in computing net income per share attributable to common stockholders, basic | 412.0 | 406.5 | |||||||||
| Weighted-average shares used in computing net income per share attributable to common stockholders, diluted | 412.5 | 409.5 | |||||||||
PLAYTIKA HOLDING CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
| Three months ended March 31, | |||||||||||
| 2022 | 2021 | ||||||||||
| Cash flows from operating activities | $ | 58.1 | $ | (56.4) | |||||||
| Cash flows from investing activities | |||||||||||
| Purchase of property and equipment | (13.0) | (7.5) | |||||||||
| Capitalization of internal use software costs | (13.5) | (13.3) | |||||||||
| Purchase of intangible assets | (2.4) | (3.3) | |||||||||
| Short-term bank deposits | (122.1) | (50.0) | |||||||||
| Payments for business combination, net of cash acquired | (29.3) | — | |||||||||
| Other investing activities | — | 2.2 | |||||||||
| Net cash used in investing activities | (180.3) | (71.9) | |||||||||
| Cash flows from financing activities | |||||||||||
| Proceeds from bank borrowings, net | — | 880.7 | |||||||||
| Repayments on bank borrowings | (4.8) | (951.0) | |||||||||
| Proceeds from issuance of unsecured notes | — | 176.9 | |||||||||
| Proceeds from issuance of common stock, net | — | 470.4 | |||||||||
| Payment of tax withholdings on stock-based payments | (1.4) | — | |||||||||
| Net cash provided by (used in) financing activities | (6.2) | 577.0 | |||||||||
| Effect of exchange rate changes on cash and cash equivalents | (2.8) | (5.9) | |||||||||
| Net change in cash, cash equivalents and restricted cash | (131.2) | 442.8 | |||||||||
| Cash, cash equivalents and restricted cash at the beginning of the period | 1,019.0 | 523.6 | |||||||||
| Cash, cash equivalents and restricted cash at the end of the period | $ | 887.8 | $ | 966.4 | |||||||
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 Adjusted EBITDA to net income, the closest GAAP financial measure. 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) contingent consideration, (vii) acquisition and related expenses, (viii) expense under our long-term compensation plans, (ix) M&A related retention payments, and (x) 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 these 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 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 TO ADJUSTED EBITDA
(In millions)
| Three months ended March 31, | |||||||||||
| 2022 | 2021 | ||||||||||
| Net income | $ | 83.2 | $ | 35.7 | |||||||
| Provision for income taxes | 9.7 | 18.9 | |||||||||
| Interest expense and other, net | 27.5 | 75.7 | |||||||||
| Depreciation and amortization | 39.5 | 33.2 | |||||||||
| EBITDA | 159.9 | 163.5 | |||||||||
Stock-based compensation(1) | 39.8 | 24.3 | |||||||||
| Contingent consideration | (23.0) | — | |||||||||
Long-term cash compensation(2) | 24.9 | 29.8 | |||||||||
Acquisition and related expenses(3) | 9.0 | 35.7 | |||||||||
M&A related retention payments(4) | (1.9) | 3.1 | |||||||||
Other one-time items(5) | 11.8 | 1.6 | |||||||||
| Adjusted EBITDA | $ | 220.5 | $ | 258.0 | |||||||
| Net income margin | 12.3 | % | 5.6 | % | |||||||
| Adjusted EBITDA margin | 32.6 | % | 40.4 | % | |||||||
_________
(1) Reflects, for the three months ended March 31, 2022 and 2021, stock-based compensation expense related to the issuance of equity awards to certain of our employees.
(2) 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. For more information, see notes to our consolidated financial statements.
(3) Amount for the three months ended March 31, 2022 primarily relates to expenses incurred by the Company in connection with the evaluation of strategic alternatives for the Company. Amount for the three months ended March 31, 2021 primarily relates to bonus expenses paid as a result of the successful initial public offering of the Company’s stock in January 2021.
(4) Includes retention awards to key individuals associated with acquired companies as an incentive to retain those individuals on a long-term basis. The income amount for the three months ended March 31, 2022 primarily relates to the reduction of contingent consideration payable to employees of the Company that were also selling Shareholders of Reworks. This portion of the contingent consideration is being accounted for as an M&A retention payment to these employees, with changes in the amounts recognized as compensation expense.
(5) Amount for the three months ended March 31, 2022, consists of $8.8 million incurred by the Company for severance and $3.0 million incurred by the Company for relocation and support provided to employees due to the war in Ukraine.
Contacts
| Investor Relations | Press Contact | |||||||
| Playtika | Teneo | |||||||
| David Niederman | Stephen Cohen | |||||||
| davidni@playtika.com | stephen.cohen@teneo.com | |||||||
© 2020 Playtika Ltd. All Rights Reserved. May 10th | 2022 FIRST QUARTER 2022 Earnings Presentation
Presentation Title 2 LEGAL DISCLAIMER Forward-Looking Statements This presentation contains forward-looking statements. All statements contained in this presentation other than statements of historical facts, including statements regarding our business strategy, plans, market growth and our objectives for future operations, are forward-looking statements. The words “may,” “will,” “should,” “expect,” “would,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “contemplate,” “believe,” “estimate,” “predict,” “potential” or “continue” or the negative of these terms and other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these words. Forward-looking statements contained in this presentation include, but are not limited to, future revenues, expenses, and capital requirements; the implementation of our business model and strategic plans and initiatives including increased focus on in-house game development; our ability to improve on our user metrics and our ability among others. We have based these forward-looking statements largely on our current expectations and projections about our business, the industry in which we operate and financial trends that we believe may affect our business, financial condition, results of operations and prospects and these forward-looking statements are not guarantees of future performance or development. These forward-looking statements speak only as of the date of this presentation and are subject to a number of risks, uncertainties and assumptions, including business, regulatory, economic and competitive risks, uncertainties, contingencies and assumptions about us. Because forward-looking statements are inherently subject to risks and uncertainties, including our ability to compete in the market; our future relationship with third-party platforms, such as the iOS App Store and the Google Play Store; our ability to successfully launch new games and enhance our existing games that are commercially successful; continued growth in demand for in-app purchases in mobile games; our ability to acquire and integrate new games and content; the ability of our games to generate revenues; capital expenditures and investments in our infrastructure; our use of working capital in general; retaining existing players, attracting new players and increasing the monetization of our player base; our ability to successfully manage our game economies; maintaining a technology infrastructure that can efficiently and reliably handle increased player usage, fast load times and the deployment of new features and products; attracting and retaining qualified employees and key personnel; the impact of geopolitical events, including relating to Ukraine; maintaining, protecting and enhancing our intellectual property; protecting our players’ information and adequately addressing privacy concerns; our ability to expand into new markets and distribution platforms; and successfully acquiring and integrating companies and assets. Because some of these risks and uncertainties cannot be predicted or quantified and some of which are beyond our control, you should not rely on these forward-looking statements as predictions of future events. The events and circumstances reflected in our forward-looking statements may not be achieved or occur and actual results could differ materially from those projected in the forward-looking statements. 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 applicable law, we undertake no obligation to publicly update or revise any forward-looking statements contained herein, whether as a result of any new information, future events, changed circumstances or otherwise. This presentation also contains estimates and other statistical data made by independent parties and by Playtika relating to market size and growth and other data about Playtika’s industry. This data involves a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates. Non-GAAP Financial Measures This presentation contains certain non-GAAP financial measures of us, including Adjusted EBITDA. A "non-GAAP financial measure" is defined as a numerical measure of a company's financial performance that excludes or includes amounts so as to be different than the most directly comparable measure calculated and presented in accordance with GAAP in the statements of income, balance sheets or statements of cash flow of the company. You should not consider these non-GAAP financial measures in isolation, or as a substitute for analysis of results as reported under GAAP. For information regarding the non-GAAP financial measures used by us, and for a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures, see the Appendix to this presentation. 2
Presentation Title 3 FIRST QUARTER 2022 HIGHLIGHTS Delivered revenue growth of 6.0% year-over-year Daily Payer Conversion increased to 3.2%, up from 2.8% in Q1’21 Solitaire Grand Harvest and June’s Journey grew revenues 41.7% and 30.4% year-over- year, respectively Casual games represented 52.5% of overall revenues, compared to 45.8% in Q1’21 Casual games grew revenue 20.7% year-over-year Direct-to-Consumer revenue grew to 22.5% of overall revenues, up from 18.1% in Q1’21 Direct-to-Consumer revenue grew 31.5% year-over-year Acquired JustPlay.LOL, expanding into the Action and Battle Royale genres. Their notable title, 1v1.LOL, features a large and engaged audience with 50M+ downloads and a 4.7/5 star rating in the Apple App Store. (1) Proprietary Platforms is now referred to as “Direct-to-Consumer platforms” Strong growth in casual contributes to year-over-year revenue growth Core Organic Growth DTC Platforms1 Expanding our Reach 3
Q1'21 Q1'22 $639 Q1'21 Q1'22 +6.0% -14.5% REVENUE AEBITDA* Note: U.S. dollars in millions AEBITDA: 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) expense under our long-term compensation plans, (x) M&A-related retention payments, and (xi) certain other items, including impairments. GAAP net income/loss for the 3 months ended 3/31/22 and 3/31/21 were $83.2m and $35.7m, respectively. Adj EBITDA is a non-gaap measure, see reconciliation on slide 12. Year-over-year revenue growth Q1 2022 REVENUE, AEBITDA AND NET INCOME 4 $677 $221 $258 ($) MILLIONS Net Income $36 $83 Q1'21 Q1'22 +133.1%
0.68 0.74 +8.8% ARPDAU* ($) 2.8% 3.2% +35 bps Daily Payer Conversion* (%) 296 323 +9.2% Average Daily Paying Users* (Thousands) LIVEOPS CONTINUE TO DRIVE PLAYER METRICS Q1 2022Q1 2021 Note: Percentages are rounded to the nearest tenth. Average Daily Paying Users: the number of individuals who purchased, with real world currency, virtual currency or items in any of our games on a particular day. Daily Payer Conversion: (i) the total number of DPUs, (ii) divided by the number of DAUs on a particular day. Average Daily Payer Conversion for a particular period is the average of the Daily Payer Conversion rates for each day during that period. ARPDAU: Average Revenue per Daily Active User (i) the total revenue in a given period, (ii) divided by the number of days in that period, (iii) divided by the average DAUs during the period. 5
Q1‘22 CASE STUDIES 2nd Largest Game by Revenue in Portfolio Q1’22 Revenue +30.4% Y/Y Sweep the Board event and LiveOps optimization driving increases in ARPDAU Memoirs / Collectibles album continues to drive revenue growth 6 Q1’22 Revenue +8.2% Y/Y New players content packages to celebrate the studio’s 10th year anniversary Successful new features including “Pet Corgi” and “Double Disher” enhancing engagement trends Successful offline campaign driving new installs and revenue Q1’22 Revenue +41.7% Y/Y Continued success of MyFarm feature Release of new collections and ‘My Trail’ premium pass driving ARPDAU increases Successful U.S marketing campaign driving new installs and revenue
REVENUE MIX SHIFT TO CASUAL INCREASING Casual Themed 45.8% Casino Themed 54.2% Q1 2021 Q1 2022 Casual Themed 52.5% Casino Themed 47.5% Casual Themed games includes: Bingo Blitz, Solitaire Grand Harvest, June’s Journey, Best Fiends, Board Kings, Pirate Kings, Pearls Peril, Best Fiends Stars, Redecor and Other. Casino Themed games includes: Slotomania, House of Fun, Caesars Slots, World Series of Poker, and Other. 7
DIRECT TO CONSUMER PLATFORM GROWTH CONTINUES 8 Direct-to-Consumer revenue grew 31.5% year-over-year Note: U.S. dollars in millions. 1) Includes iOS, Android, Facebook, Amazon, Windows and other third-party platforms Q1 2022 Gross Revenue by Platforms 3rd Party Platforms (1) Direct-to- Consumer Platforms 22.5% 77.5% Direct-to-Consumer revenue grew to 22.5% of overall revenues compared to 18.1% in Q1’21 +31.5%
REVENUE BY GEOGRAPHY USA EMEA APAC OTHER Q1 2021 Q1 2022 9 71% 70% 14% 15% 8% 8% 7% 7%
FY2022 Adjusted EBITDA guidance of $940m GUIDANCE1 Revenue guidance of $2.73 billion $2.73 billion $940 million 10
© 2020 Playtika Ltd. All Rights Reserved. APPENDIX 11
RECONCILIATION 1) Amount for the three months ended March 31, 2022, consists of $8.8 million incurred by the Company for severance and $3.0 million incurred by the Company for relocation and support provided to employees due to the war in Ukraine. Adjusted EBITDA is a non-GAAP financial measures 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, in each case as determined in accordance with GAAP. Below is a reconciliation of Adjusted EBITDA to net income, the closest GAAP financial measure. 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, and (ix) certain other items, including impairments. We supplementally present Adjusted EBITDA because it is a key operating measure 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 is 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 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 in conjunction with our results according to GAAP because we believe it provides investors and analysts a more complete understanding of factors and trends affecting our business than GAAP measures alone. Adjusted EBITDA should not be considered as an alternative to net income (loss) as a measure of financial performance, or any other performance measure derived in accordance with GAAP 12 2022 2021 (in millions) Net income $ 83.2 $ 35.7 Provision for income taxes 9.7 18.9 Interest expense and other, net 27.5 75.7 Depreciation and amortization 39.5 33.2 EBITDA 159.9 163.5 Stock-based compensation 39.8 24.3 Contingent Consideration (23.0) - Long-term cash compensation 24.9 29.8 Acquisition and related expenses 9.0 35.7 M&A related retention payments (1.9) 3.1 Other one-time items1 11.8 1.6 Adjusted EBITDA $ 220.5 $ 258.0 Three months ended March 31, Unaudited