Playtika Holding Corp. (NASDAQ:PLTK) Q1 2024 Earnings Conference Call May 9, 2024 8:30 AM ET Company Participants Tae Lee - SVP, Corporate Finance and IR Robert Antokol - Co-Founder and CEO Craig Abrahams - President and CFO Conference Call Participants Colin Sebastian - Baird Aaron Lee - Macquarie Brian Fitzgerald - Wells Fargo Arthur Chu - Bank of America Operator Good day, and thank you for standing by. Welcome to the Playtika Q1 2024 Earnings Call. [Operator Instructions] Please be advised that today's ...

[PART I. FINANCIAL INFORMATION](index=6&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements (Unaudited)](index=6&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS%20(Unaudited)) Playtika reported Q1 2024 revenues of **$651.2 million**, with net income declining to **$53.0 million** due to increased marketing expenses, while total assets remained stable and operating cash flow increased to **$29.6 million** [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) Total assets slightly increased to **$3,175.0 million** as of March 31, 2024, while total liabilities decreased, leading to an improved stockholders' deficit of **$(180.4) million** Consolidated Balance Sheet Highlights (in millions) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total Assets** | **$3,175.0** | **$3,144.7** | | Cash and cash equivalents | $1,029.7 | $1,015.5 | | Goodwill | $987.2 | $984.9 | | **Total Liabilities** | **$3,325.1** | **$3,396.5** | | Long-term debt | $2,397.2 | $2,399.6 | | **Total Stockholders' Deficit** | **$(180.4)** | **$(221.5)** | [Consolidated Statements of Comprehensive Income](index=7&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Revenues slightly decreased to **$651.2 million** in Q1 2024, while a **32.5%** surge in sales and marketing expenses led to a **37.0%** drop in net income to **$53.0 million** Q1 2024 vs. Q1 2023 Performance (in millions, except per share data) | Metric | Q1 2024 | Q1 2023 | Change (%) | | :--- | :--- | :--- | :--- | | Revenues | $651.2 | $656.2 | -0.8% | | Cost of revenue | $177.0 | $185.7 | -4.7% | | Sales and marketing | $190.4 | $143.7 | +32.5% | | Income from operations | $98.1 | $152.4 | -35.6% | | Net income | $53.0 | $84.1 | -37.0% | | Diluted EPS | $0.14 | $0.23 | -39.1% | - The company recorded a **$7.0 million** impairment charge in Q1 2024, which was not present in the same period last year[19](index=19&type=chunk) [Consolidated Statements of Stockholders' Deficit](index=8&type=section&id=Consolidated%20Statements%20of%20Stockholders'%20Deficit) Stockholders' deficit improved to **$(180.4) million** in Q1 2024, driven by **$53.0 million** net income, partially offset by a **$37.1 million** cash dividend - A cash dividend of **$0.10 per share**, totaling **$37.1 million**, was declared during the quarter[22](index=22&type=chunk)[56](index=56&type=chunk) - Stock-based compensation added **$24.2 million** to additional paid-in capital[22](index=22&type=chunk) [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities increased to **$29.6 million**, but cash used in investing activities more than doubled to **$35.9 million**, resulting in a net cash decrease of **$14.2 million** Cash Flow Summary (in millions) | Cash Flow Activity | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $29.6 | $20.5 | | Net cash used in investing activities | $(35.9) | $(15.4) | | Net cash used in financing activities | $(5.5) | $(6.1) | | **Net change in cash** | **$(14.2)** | **$(1.4)** | [Notes to the Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) Notes detail revenue streams, debt structure, and legal contingencies, highlighting dependence on Apple, Google, and Facebook, **$2.4 billion** in debt, ongoing lawsuits, and **$440.2 million** in US revenue - A significant portion of revenues and accounts receivable are concentrated with Apple, Google, and Facebook platforms. As of March 31, 2024, Apple and Google represented **57%** and **27%** of total accounts receivable, respectively[34](index=34&type=chunk)[35](index=35&type=chunk) - Total debt outstanding as of March 31, 2024, was **$2.413 billion**, consisting of a Term Loan and Senior Notes[47](index=47&type=chunk) - The company is defending against several legal proceedings, including a class-action lawsuit (Bar-Asher v. Playtika), a derivative action (Bushansky v. Antokol), and lawsuits in Israel, Tennessee, and Alabama alleging certain games constitute illegal gambling[79](index=79&type=chunk)[80](index=80&type=chunk)[81](index=81&type=chunk)[84](index=84&type=chunk)[85](index=85&type=chunk) Revenue by Platform (in millions) | Platform | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Third-party platforms | $479.7 | $504.7 | | Direct-to-consumer platforms | $171.5 | $151.5 | - Subsequent to the quarter's end, the company is actively monitoring the conflict in Israel, where it employs approximately **1,060 professionals** (**33%** of its global workforce), following attacks in April 2024[100](index=100&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=ITEM%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management attributes revenue decline to underperforming games and increased sales and marketing expenses of **$46.7 million** from acquisitions, leading to a decrease in Credit Adjusted EBITDA to **$185.6 million**, while liquidity remains strong with over **$1 billion** in cash [Results of Operations](index=31&type=section&id=Results%20of%20Operations) Q1 2024 revenues decreased to **$651.2 million** due to game underperformance, while sales and marketing expenses surged by **$46.7 million** from acquisitions, leading to a net income decline to **$53.0 million** - Revenue decline was primarily due to a mix of growth in select casual games and acquisitions being more than offset by declines in other casual titles and certain slot-themed games[124](index=124&type=chunk) - Sales and marketing expenses increased by **$46.7 million**, almost entirely due to increased media buy expenses driven by the acquisitions of InnPlay and Youda[127](index=127&type=chunk) - General and administrative expenses remained flat, as the impact of headcount reductions and lower stock-based compensation was offset by increased severance expense and adjustments to contingent consideration[128](index=128&type=chunk) Key Operating Metrics | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Average DAUs (millions) | 8.8 | 9.1 | | Average DPUs (thousands) | 309 | 326 | | Average Daily Payer Conversion | 3.5% | 3.6% | | ARPDAU | $0.81 | $0.80 | [Reconciliation of Credit Adjusted EBITDA to Net Income](index=33&type=section&id=Reconciliation%20of%20Credit%20Adjusted%20EBITDA%20to%20Net%20Income) Credit Adjusted EBITDA decreased to **$185.6 million** in Q1 2024, with margin falling to **28.5%**, reflecting adjustments for taxes, interest, D&A, stock-based compensation, and impairment charges Credit Adjusted EBITDA Reconciliation (in millions) | Line Item | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net income | $53.0 | $84.1 | | Provision for income taxes | $21.9 | $39.7 | | Interest expense and other, net | $23.2 | $28.6 | | Depreciation and amortization | $39.2 | $39.1 | | Stock-based compensation | $23.7 | $29.2 | | Impairment charges | $7.0 | — | | **Credit Adjusted EBITDA** | **$185.6** | **$222.7** | [Liquidity and Capital Resources](index=35&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with **$1,029.7 million** in cash and equivalents and **$600 million** available under its revolving credit facility, deemed sufficient for the next 12 months - Primary sources of liquidity are cash from operations, available cash and cash equivalents, and borrowings under the Credit Facility and Revolver[140](index=140&type=chunk) - As of March 31, 2024, the company had **$1,029.7 million** in cash and cash equivalents and **$600 million** in additional borrowing capacity under its Revolving Credit Facility[17](index=17&type=chunk)[140](index=140&type=chunk) - Net cash provided by operating activities was **$29.6 million** for the quarter, an increase from **$20.5 million** in the prior year period[142](index=142&type=chunk)[143](index=143&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=37&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) Playtika's primary market risks are interest rate and foreign currency fluctuations, mitigated by **$1.0 billion** in interest rate swaps and hedging **$192.9 million** of future foreign currency expenses - The company uses interest rate swaps with a total notional value of **$1.0 billion** to mitigate risk on its floating-rate Term Loan[112](index=112&type=chunk)[154](index=154&type=chunk)[155](index=155&type=chunk) - A hypothetical **100 basis point** increase or decrease in interest rates would impact annual interest expense by **$8.5 million**[158](index=158&type=chunk) - The company faces foreign currency risk from expenses in EUR, ILS, PLN, and RON. As of March 31, 2024, it had hedged approximately **$192.9 million** of future salary expenses[161](index=161&type=chunk)[164](index=164&type=chunk) [Controls and Procedures](index=38&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded that disclosure controls and procedures were effective as of March 31, 2024, with no material changes to internal control over financial reporting during the quarter - Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of March 31, 2024[166](index=166&type=chunk) - No material changes in internal control over financial reporting were identified during the quarter ended March 31, 2024[167](index=167&type=chunk) [PART II. OTHER INFORMATION](index=39&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=39&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) This section refers to Note 7 of the financial statements for a detailed description of the company's ongoing legal proceedings - For a description of legal proceedings, the report refers to Note 7, Commitments and Contingencies, in Part I, Item 1[169](index=169&type=chunk) [Risk Factors](index=39&type=section&id=ITEM%201A.%20RISK%20FACTORS) The company highlights significant risks from its substantial operations in Israel, heightened by ongoing regional conflict and geopolitical instability, which could adversely affect business and financial results - The company's significant operations, senior management, and many employees are based in Israel, making it vulnerable to political, economic, and military instability in the region[170](index=170&type=chunk) - The ongoing war with Hamas since October 7, 2023, and recent escalations with Iran, pose a material risk to the company's operations and financial condition[171](index=171&type=chunk) - There have been no material changes to the risk factors described in the Annual Report on Form 10-K for the year ended December 31, 2023[173](index=173&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=40&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECU RITIES%20AND%20USE%20OF%20PROCEEDS) The company reported no unregistered sales of equity securities or use of proceeds during the quarter - None reported for the period[174](index=174&type=chunk) [Other Information](index=40&type=section&id=ITEM%205.%20OTHER%20INFORMATION) No officers or directors adopted or terminated any Rule 10b5-1 trading arrangements during the first quarter of 2024 - No officers or directors adopted or terminated any Rule 10b5-1 trading arrangement during the three months ended March 31, 2024[177](index=177&type=chunk) [Exhibits](index=41&type=section&id=ITEM%206.%20EXHIBITS) This section lists all exhibits filed with the Form 10-Q, including CEO and CFO certifications and Inline XBRL financial data files - The filing includes CEO and CFO certifications pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002[179](index=179&type=chunk) - Inline XBRL documents are included as part of the filing[179](index=179&type=chunk)

Herzliya, Israel - May 9, 2024 - Playtika Holding Corp. (NASDAQ: PLTK) today released financial results for its first quarter for the period ending March 31, 2024. Financial Highlights Exhibit 99.1 Playtika Holding Corp. Reports Q1 2024 Financial Results Revenue of $651.2 million and Direct-to-Consumer ("DTC") Revenue of $171.5 million DTC Platforms Revenue Increased 6.1% Sequentially and 13.2% Year Over Year GAAP Net Income of $53.0 million and Credit Adj. EBITDA of $185.6million Announces Inaugural $150 m ...

Playtika Holding Corp. (NASDAQ:PLTK) Q4 2023 Earnings Conference Call February 26, 2024 8:30 AM ET Company Participants Tae Lee - Senior Vice President, Corporate Finance and Investor Relations Robert Antokol - Co-Founder and Chief Executive Officer Craig Abrahams - President and Chief Financial Officer Nir Korczak - Chief Marketing Officer Conference Call Participants Aaron Lee - Macquarie Research Colin Sebastian - Baird Omar Dessouky - Bank of America Brian Fitzgerald - Wells Fargo Drew Crum - Stifel Dou ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal period ended December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ Commission File Number: 001-39896 PLAYTIKA HOLDING CORP. (Exact Name of Registrant as Specified in its Charter) (State of other jurisdiction (I.R.S. ...

Exhibit 99.1 Playtika Holding Corp. Reports Q4 and 2023 Financial Results Announces Capital Allocation Framework and Initiates Quarterly Dividend 2023 Q4 Revenue Increased 1.1% YOY; DTC Platforms Revenue Increased 7.6% YOY Announces Pause to Strategic Alternatives Process Herzliya, Israel – February 26, 2024 - Playtika Holding Corp. (NASDAQ: PLTK) today released financial results for its fourth quarter and fiscal year ended December 31, 2023. Capital Allocation Framework Fourth Quarter 2023 Financial Highli ...

Playtika Holding Corp. (NASDAQ:PLTK) Q3 2023 Results Conference Call November 8, 2023 8:30 AM ET Company Participants Tae Lee - Senior Vice President, Corporate Finance & Investor Relations Robert Antokol - Co-Founder & Chief Executive Officer Craig Abrahams - President & Chief Financial Officer Nir Korczak - Chief Marketing Officer Conference Call Participants Aaron Lee - Macquarie Arthur Chu - Bank of America Eric Sheridan - Goldman Sachs Colin Sebastian - Baird Dave Nwokonko - Morgan Stanley Operator Goo ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ Commission File Number: 001-39896 PLAYTIKA HOLDING CORP. (Exact Name of Registrant as Specified in its Charter) Delaware 81-3634591 (State of ...

Playtika Holding Corp. (NASDAQ:PLTK) Q2 2023 Earnings Conference Call August 8, 2023 8:30 AM ET Company Participants Tae Lee - Senior Vice President, Corporate Finance & Investor Relations Robert Antokol - Co-Founder & Chief Executive Officer Craig Abrahams - President & Chief Financial Officer Nir Korczak - Chief Marketing Officer Conference Call Participants Matt Cost - Morgan Stanley Stephen Ju - Credit Suisse Omar Dessouky - Bank of America Colin Sebastian - Baird Clark Lampen - BTIG Drew Crum - Stifel ...

Financial Performance - Revenue reached $642.8 million[24], showing a decrease of 2.0% sequentially and 2.5% year over year[45] - Net income was $75.7 million[24], a decrease of 10.0% sequentially but an increase of 108.0% year over year[25] - Credit Adjusted EBITDA was $215.0 million[24], down 3.5% sequentially but up 6.7% year over year[46], with a margin of 33.4%[27] Key Metrics - Average Daily Paying Users (DPUs) were 307,000, a decrease of 5.8% sequentially and 1.0% year over year[29] - Average Payer Conversion was 3.6%, flat sequentially and up from 3.2% in the prior year period[30] Revenue Streams - Direct-to-Consumer Platforms revenue increased 9.1% sequentially and 7.6% year over year[26], contributing 23.1% of the revenue mix[72] - Third-Party Platforms accounted for 76.9% of the revenue mix[72] Game Performance - Bingo Blitz generated $156.3 million in revenue, down 1.8% sequentially but up 6.3% year over year[49] - Solitaire Grand Harvest revenue was $81.8 million, down 4.2% sequentially but up 26.2% year over year[61] - Slotomania revenue was $144.7 million, down 1.3% sequentially and 9.9% year over year[34] Fiscal Year 2023 Guidance - The company expects revenue between $2.57 billion and $2.62 billion[35] - Credit Adjusted EBITDA is projected to be between $805 million and $830 million[35], with a margin of 31.3% to 31.7%[35] - Capital expenditures are expected to be between $100 million and $105 million[35]