Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2022 | Apr. 29, 2022 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-39652 | |
Registrant Name | PLAYSTUDIOS, Inc. | |
Entity Incorporation, State Code | DE | |
Entity Tax Identification Number | 88-1802794 | |
Entity Address, Address Line One | 10150 Covington Cross Drive | |
Entity Address, City or Town | Las Vegas | |
Entity Address, State or Province | NV | |
Entity Address, Postal Zip Code | 89144 | |
City Area Code | 725 | |
Local Phone Number | 877-7000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001823878 | |
Current Fiscal Year End Date | --12-31 | |
Class A common stock | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Class A common stock | |
Trading Symbol | MYPS | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 110,339,318 | |
Redeemable warrants exercisable for one Class A common stock at an exercise price of $11.50 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Redeemable warrants exercisable for one Class A common stock at an exercise price of $11.50 | |
Trading Symbol | MYPSW | |
Security Exchange Name | NASDAQ | |
Class B common stock | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 16,130,300 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 219,965 | $ 213,502 |
Receivables | 20,982 | 20,693 |
Prepaid expenses | 3,456 | 5,059 |
Income tax receivable | 1,827 | 2,117 |
Other current assets | 1,188 | 413 |
Total current assets | 247,418 | 241,784 |
Property and equipment, net | 7,115 | 5,289 |
Internal-use software, net | 35,622 | 43,267 |
Goodwill | 5,059 | 5,059 |
Intangibles, net | 17,068 | 18,755 |
Deferred income taxes | 3,803 | 6,282 |
Other long-term assets | 12,481 | 14,408 |
Total non-current assets | 81,148 | 93,060 |
Total assets | 328,566 | 334,844 |
Current liabilities: | ||
Accounts payable | 8,759 | 7,793 |
Warrant liabilities | 9,237 | 6,521 |
Accrued liabilities | 16,769 | 15,599 |
Total current liabilities | 34,765 | 29,913 |
Deferred income taxes | 5,218 | 0 |
Other long-term liabilities | 2,235 | 1,464 |
Total non-current liabilities | 7,453 | 1,464 |
Total liabilities | 42,218 | 31,377 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, $0.0001 par value (100,000 shares authorized, no shares issued and outstanding as of March 31, 2022 and December 31, 2021) | 0 | 0 |
Additional paid-in capital | 276,621 | 268,522 |
Retained earnings | 9,327 | 34,539 |
Accumulated other comprehensive income | 387 | 393 |
Total stockholders’ equity | 286,348 | 303,467 |
Total liabilities and stockholders’ equity | 328,566 | 334,844 |
Class A common stock | ||
Stockholders’ equity: | ||
Common stock | 11 | 11 |
Class B common stock | ||
Stockholders’ equity: | ||
Common stock | $ 2 | $ 2 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (USD per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized (shares) | 100,000,000 | 100,000,000 |
Preferred stock, shares issued (shares) | 0 | 0 |
Preferred stock, shares outstanding (shares) | 0 | 0 |
Class A common stock | ||
Common stock, par value (USD per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (shares) | 2,000,000,000 | 2,000,000,000 |
Common stock, shares issued (shares) | 110,339,000 | 110,066,000 |
Common stock, shares outstanding (shares) | 110,339,000 | 110,066,000 |
Class B common stock | ||
Common stock, par value (USD per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (shares) | 25,000,000 | 25,000,000 |
Common stock, shares issued (shares) | 16,130,000 | 16,130,000 |
Common stock, shares outstanding (shares) | 16,130,000 | 16,130,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
Income Statement [Abstract] | |||
Net revenues | $ 70,451 | $ 74,097 | |
Operating expenses: | |||
Cost of revenue | [1] | 21,033 | 24,488 |
Selling and marketing | 20,540 | 17,000 | |
Research and development | 16,981 | 14,746 | |
General and administrative | 9,691 | 4,223 | |
Depreciation and amortization | 8,394 | 6,034 | |
Restructuring and related | 8,655 | 56 | |
Total operating costs and expenses | 85,294 | 66,547 | |
(Loss) income from operations | (14,843) | 7,550 | |
Other (expense) income, net: | |||
Change in fair value of warrant liabilities | (2,716) | 0 | |
Interest expense, net | (5) | (42) | |
Other income (expense), net | 187 | (242) | |
Total other expense, net | (2,534) | (284) | |
(Loss) income before income taxes | (17,377) | 7,266 | |
Income tax benefit (expense) | (7,835) | (1,348) | |
Net (loss) income | $ (25,212) | $ 5,918 | |
Net (loss) income per share attributable to Class A and Class B common stockholders: | |||
Basic (USD per share) | $ (0.20) | $ 0.06 | |
Diluted (USD per share) | $ (0.20) | $ 0.05 | |
Weighted average shares of common stock outstanding: | |||
Basic (shares) | 126,337 | 93,809 | |
Diluted (shares) | 126,337 | 109,951 | |
[1] | Amounts exclude depreciation and amortization. |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
Statement of Comprehensive Income [Abstract] | |||
Net (loss) income | $ (25,212) | $ 5,918 | |
Other comprehensive (loss) income: | |||
Change in foreign currency translation adjustment | [1] | (6) | (296) |
Total other comprehensive (loss) income | (6) | (296) | |
Comprehensive (loss) income | $ (25,218) | $ 5,622 | |
[1] | These amounts are presented gross of the effect of income taxes. The total change in foreign currency translation adjustment and the corresponding effect of income taxes are immaterial. |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Previously balance | Retroactive application of reverse recapitalization | Class A common stock | Class B common stock | Preferred Stock | Preferred StockPreviously balance | Preferred StockRetroactive application of reverse recapitalization | Common Stock | Common StockPreviously balance | Common StockRetroactive application of reverse recapitalization | Common StockClass A common stock | Common StockClass A common stockPreviously balance | Common StockClass A common stockRetroactive application of reverse recapitalization | Common StockClass B common stock | Common StockClass B common stockPreviously balance | Common StockClass B common stockRetroactive application of reverse recapitalization | Additional Paid-In Capital | Additional Paid-In CapitalPreviously balance | Additional Paid-In CapitalRetroactive application of reverse recapitalization | Accumulated Other Comprehensive Income | Accumulated Other Comprehensive IncomePreviously balance | Accumulated Other Comprehensive IncomeRetroactive application of reverse recapitalization | Retained Earnings | Retained EarningsPreviously balance | Retained EarningsRetroactive application of reverse recapitalization |
Beginning balance (shares) at Dec. 31, 2020 | 0 | 162,596 | (162,596) | 0 | 238,186 | (238,186) | 74,421 | 0 | 74,421 | 18,977 | 0 | 18,977 | ||||||||||||||
Beginning balance at Dec. 31, 2020 | $ 96,079 | $ 96,079 | $ 0 | $ 0 | $ 8 | $ (8) | $ 0 | $ 12 | $ (12) | $ 8 | $ 0 | $ 8 | $ 2 | $ 0 | $ 2 | $ 71,786 | $ 71,776 | $ 10 | $ 481 | $ 481 | $ 0 | $ 23,802 | $ 23,802 | $ 0 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||
Net (loss) income | 5,918 | $ 4,721 | $ 1,197 | 5,918 | ||||||||||||||||||||||
Exercise of stock options (shares) | 737 | |||||||||||||||||||||||||
Exercise of stock options | 808 | 808 | ||||||||||||||||||||||||
Stock-based compensation | 1,109 | 1,109 | ||||||||||||||||||||||||
Other comprehensive (loss) income | (296) | (296) | ||||||||||||||||||||||||
Ending balance (shares) at Mar. 31, 2021 | 0 | 0 | 75,158 | 18,977 | ||||||||||||||||||||||
Ending balance at Mar. 31, 2021 | 103,618 | $ 0 | $ 0 | $ 8 | $ 2 | 73,703 | 185 | 29,720 | ||||||||||||||||||
Beginning balance (shares) at Dec. 31, 2021 | 0 | 0 | 110,066 | 16,130 | ||||||||||||||||||||||
Beginning balance at Dec. 31, 2021 | 303,467 | $ 0 | $ 0 | $ 11 | $ 2 | 268,522 | 393 | 34,539 | ||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||
Net (loss) income | $ (25,212) | $ (21,992) | $ (3,220) | (25,212) | ||||||||||||||||||||||
Exercise of stock options (shares) | 113 | 113 | ||||||||||||||||||||||||
Exercise of stock options | $ 130 | 130 | ||||||||||||||||||||||||
Issuance of vested restricted stock units (in shares) | 160 | |||||||||||||||||||||||||
Stock-based compensation | 7,969 | 7,969 | ||||||||||||||||||||||||
Other comprehensive (loss) income | (6) | (6) | ||||||||||||||||||||||||
Ending balance (shares) at Mar. 31, 2022 | 0 | 0 | 110,339 | 16,130 | ||||||||||||||||||||||
Ending balance at Mar. 31, 2022 | $ 286,348 | $ 0 | $ 0 | $ 11 | $ 2 | $ 276,621 | $ 387 | $ 9,327 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities: | ||
Net (loss) income | $ (25,212,000) | $ 5,918,000 |
Adjustments: | ||
Depreciation and amortization | 8,394,000 | 6,034,000 |
Amortization of loan costs | 34,000 | 20,000 |
Stock-based compensation expense | 6,868,000 | 900,000 |
Change in fair value of warrant liabilities | 2,716,000 | 0 |
Asset impairments | 8,353,000 | 0 |
Deferred income tax expense | 7,945,000 | (110,000) |
Other | (203,000) | 242,000 |
Receivables | (203,000) | (10,311,000) |
Prepaid expenses and other current assets | 871,000 | (164,000) |
Income tax receivable | 366,000 | 1,021,000 |
Accounts payable & accrued liabilities | 1,926,000 | 1,220,000 |
Other | (270,000) | 28,000 |
Net cash provided by operating activities | 11,585,000 | 4,798,000 |
Cash flows from investing activities: | ||
Purchase of property and equipment | (1,936,000) | (197,000) |
Additions to internal-use software | (5,519,000) | (6,710,000) |
Additions to notes receivable and other investments | 0 | (5,034,000) |
Receipts of notes receivable | 2,348,000 | 0 |
Net cash used in investing activities | (5,107,000) | (11,941,000) |
Cash flows from financing activities: | ||
Proceeds from stock option exercises | 130,000 | 808,000 |
Payments for capitalized offering costs | 0 | (2,968,000) |
Net cash provided by (used in) financing activities | 130,000 | (2,160,000) |
Foreign currency translation | (145,000) | (149,000) |
Net change in cash and cash equivalents | 6,463,000 | (9,452,000) |
Cash and cash equivalents at beginning of period | 213,502,000 | 48,927,000 |
Cash and cash equivalents at end of period | 219,965,000 | 39,475,000 |
Supplemental cash flow disclosures: | ||
Interest paid | 35,000 | 27,000 |
Income taxes paid, net of refunds | 244,000 | 487,000 |
Non-cash investing and financing activities: | ||
Capitalization of stock-based compensation | 1,101,000 | 209,000 |
Increase in property and equipment included in accounts payable and other long-term liabilities | 656,000 | 0 |
Capitalization of deferred transaction costs included in accrued liabilities and accounts payable | 0 | 263,000 |
Addition to note receivable included in accrued liabilities | $ 0 | $ 2,500,000 |
BACKGROUND AND BASIS OF PRESENT
BACKGROUND AND BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BACKGROUND AND BASIS OF PRESENTATION | BACKGROUND AND BASIS OF PRESENTATION Organization and Description of Business On June 21, 2021 (the “Closing Date”), Acies Acquisition Corp., a Cayman Islands exempted company (prior to the Closing Date, “Acies”), consummated the previously announced business combination (“Business Combination”) with PlayStudios, Inc., a Delaware corporation (“Old PLAYSTUDIOS”) pursuant to the Agreement and Plan of Merger, dated as of February 1, 2021 (the “Merger Agreement”), by and among Acies, Catalyst Merger Sub I, Inc., a Delaware corporation and a direct wholly owned subsidiary of Acies (“First Merger Sub”), Catalyst Merger Sub II, LLC, a Delaware limited liability company and a direct wholly owned subsidiary of Acies (“Second Merger Sub”), and Old PLAYSTUDIOS. The Business Combination was accounted for as a reverse recapitalization and Acies was treated as the “acquired” company for accounting purposes. The Business Combination was accounted as the equivalent of Old PLAYSTUDIOS issuing stock for the net assets of Acies, accompanied by a recapitalization. PLAYSTUDIOS, Inc., formerly known as Acies Acquisition Corp. (the "Company” or "PLAYSTUDIOS"), was incorporated on August 14, 2020 as a Cayman Islands exempted company, and domesticated into a Delaware corporation on June 21, 2021 (the "Domestication"). The Company's legal name became PLAYSTUDIOS, Inc. following the closing of the Business Combination. The prior period financial information represents the financial results and conditions of Old PLAYSTUDIOS. The Company develops and operates online and mobile social gaming applications (“games” or “game”) each of which incorporate a unique loyalty program offering “real world” rewards provided by a collection of rewards partners. The Company’s games are free-to-play and available via the Apple App Store, Google Play Store, Amazon Appstore, and Facebook (collectively, “platforms” or “platform operators”). The Company creates games based on its own original content as well as third-party licensed brands. The Company generates revenue through the in-game sale of virtual currency and through advertising. Unless the context indicates otherwise, all references herein to “PLAYSTUDIOS,” the “Company,” “we,” “us,” and “our” are used to refer collectively to PLAYSTUDIOS, Inc. and its subsidiaries. Basis of Presentation and Consolidation The accompanying condensed consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The consolidated financial statements include the accounts of PLAYSTUDIOS, Inc. and its consolidated subsidiaries. All intercompany balances and transactions have been eliminated upon consolidation. Certain reclassifications in these financial statements have been made to comply with US GAAP applicable to public companies and SEC Regulation S-X. The significant accounting policies referenced in the annual consolidated financial statements of the Company as of December 31, 2021 have been applied consistently in these unaudited interim consolidated financial statements. In the opinion of the Company, the accompanying unaudited financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair presentation of its financial position as of March 31, 2022, and its results of operations for the three months ended March 31, 2022, and 2021, and cash flows for the three months ended March 31, 2022, and 2021. The Consolidated Balance Sheet as of December 31, 2021 was derived from the audited annual financial statements but does not contain all of the footnote disclosures from the annual financial statements. The Company made certain reclassifications to the comparative balances in the condensed consolidated financial statements to conform with current year presentation. Use of Estimates The preparation of condensed consolidated financial statements in conformity with US GAAP requires us to make estimates and assumptions that affect the reported amounts in the consolidated financial statements and notes thereto. Significant estimates and assumptions reflected in the Company’s condensed consolidated financial statements include the estimated consumption rate of virtual goods that is used in the determination of revenue recognition, useful lives of property and equipment and definite-lived intangible assets, the expensing and capitalization of research and development costs for internal-use software, assumptions used in accounting for income taxes, stock-based compensation and the evaluation of goodwill and long-lived assets for impairment. The Company believes the accounting estimates are appropriate and reasonably determined. Due to the inherent uncertainties in making these estimates, actual amounts could differ materially. Segments Operating segments are defined as components of an entity for which discrete financial information is available, and that is regularly reviewed by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources to an individual segment and in assessing performance. The CODM, the Company’s Chief Executive Officer, reviews financial information on a consolidated basis for purposes of evaluating performance and allocating resources. As such, the Company has one operating and reportable segment. Emerging Growth Company At March 31, 2022, the Company qualified as an “emerging growth company,” as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), and the Company has taken and may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002, reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved. Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies are required to comply with the new or revised standards. The JOBS Act provides that an emerging growth company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has opted to take advantage of such extended transition period available to emerging growth companies which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company can adopt the new or revised standard at the time private companies adopt the new or revised standard. The Company did not lose its emerging growth company status on December 31, 2021. As a result, the Company does not expect to adopt any accounting pronouncements currently deferred based on private company standards until a year subsequent to 2022. The Company will reevaluate its eligibility to retain emerging growth company status at the end of its second quarter of 2022, and otherwise as required. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES For a discussion of our significant accounting policies and estimates, please refer to our 2021 Annual Report on Form 10-K filed on March 3, 2022. Share-Based Compensation The Company has a stock-based compensation program which provides for equity awards including time-based stock options and restricted stock units (“RSUs”). Stock-based compensation expense is measured at the grant date, based on the estimated fair value of the award, and is recognized as expense over the requisite service period for the award. The Company records forfeitures as a reduction of stock-based compensation expense as those forfeitures occur. The Company uses the Black-Scholes-Merton option-pricing model to determine the fair value for option awards. In valuing our option awards, the Company makes assumptions about risk-free interest rates, dividend yields, volatility and weighted-average expected lives. The Company accounts for forfeitures as they occur. Risk-free interest rates are derived from United States Treasury securities as of the option award grant date. Expected dividend yield is based on our historical cash dividend payments, which have been zero to date. The expected volatility for shares of the Company's Class A common stock is estimated using our historical volatility. The weighted-average expected life of the option awards is estimated based on our historical exercise data. The Company's dual class structure was created upon the Domestication (as defined in Note 1— Background and Basis of Presentation ). The Class B common stock including Class B common stock underlying vested stock options, held by Mr. Andrew Pascal, the Company's Chairman and Chief Executive Officer, or his affiliates (the "Founder Group") carry a super vote premium. As the Founder Group did not have control of Old PLAYSTUDIOS prior to the Business Combination, and Mr. Pascal is an employee of the Company, the incremental value resulting from the super vote premium is accounted for as incremental compensation costs. The Company utilized the market approach by observing other market participants with (i) dual class structures, (ii) super vote premiums for a single class and (iii) both classes trading on a national exchange. Based on the observed data, management selected a premium for the Class B common stock and the stock options held by members of the Founder Group. The Company uses the estimated fair value of equity and associated per-share value at the time of grant to determine the compensation cost to be recognized associated with RSUs granted. Recently Issued Accounting Pronouncements Not Yet Adopted In February 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016-02, Leases (Topic 842) . The amended guidance is intended to increase transparency and comparability among organizations by recognizing lease assets and liabilities in the Consolidated Balance Sheets and disclosing key information about leasing arrangements. The adoption of this guidance is expected to result in a significant portion of the Company’s operating leases, where the Company is the lessee, to be recognized in the Company’s Consolidated Balance Sheets. The guidance requires lessees and lessors to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. This guidance is effective for the Company for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022, with earlier adoption permitted. The Company intends to first present the application of this guidance in its Annual Report on Form 10-K for the year ending December 31, 2022 with an effective date of January 1, 2022. The Company is currently evaluating the impact of adopting this guidance. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326). The new guidance replaces the incurred loss impairment methodology in current guidance with a current expected credit loss model (“CECL”) that incorporates a broader range of reasonable and supportable information including the forward-looking information. This guidance is effective for the Company for fiscal years beginning after December 15, 2022, including interim periods within that annual reporting period, with early adoption permitted. Application of the amendments is through a cumulative-effect adjustment to retained earnings as of the effective date. The Company is currently evaluating the impact of adopting this guidance. Recently Adopted Accounting Pronouncements In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes . The new guidance removes certain exceptions for recognizing deferred taxes for investments, performing intraperiod allocation and calculating income taxes in interim periods. It also adds guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. The Company adopted this guidance prospectively on January 1, 2022. The adoption resulted in the Company not utilizing the prior exception under ASC 740-270-30-28 to the general methodology of calculating interim income taxes for the period ended March 31, 2022, but did not have a material impact on the Company’s condensed consolidated financial statements. |
RELATED-PARTY TRANSACTIONS
RELATED-PARTY TRANSACTIONS | 3 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
RELATED-PARTY TRANSACTIONS | RELATED-PARTY TRANSACTIONS The following table is a summary of balance sheet assets and liabilities from related parties: March 31, December 31, Financial Statement Line Item Marketing Agreement $ 1,000 $ 1,000 Intangibles, net The Company did not have any revenues recognized from related parties during the three months ended March 31, 2022 and 2021. The Company’s expenses recognized from related parties were immaterial during the three months ended March 31, 2022 and 2021. MGM Resorts International (“MGM”) MGM is a stockholder and MGM's Chief Commercial Officer also serves on the Company’s Board of Directors. MGM owned approximately 16.6 million and 16.6 million shares of the Company's outstanding Class A common stock as of March 31, 2022 and December 31, 2021, respectively. Marketing Agreement In April 2011, the Company entered into a joint marketing agreement with MGM (as amended, the “Marketing Agreement”) in exchange for assistance with marketing campaigns and the exclusive right to utilize MGM’s licensed marks and licensed copyrights for the development of certain of the Company’s social casino games. The initial term was for one year from the go-live date of the first such game in July 2012, with an automatic renewal provision for successive two-year terms based on the games meeting certain performance criteria. If the games do not achieve the specified performance criteria, the term will be automatically renewed for a one-year period and the right to utilize MGM’s licensed marks and copyrights will become non-exclusive. The non-exclusive term will be automatically renewed for successive one-year periods so long as the games meet certain other performance criteria. As consideration for the use of MGM’s intellectual property, the Company issued 19.2 million shares of its common stock representing 10% of its then-outstanding common stock; and in lieu of royalty payments, the Company agreed to pay MGM a profit share of: (i) during the exclusive term, a mid- to high-single digit percentage of cumulative net operating income, as defined in the Marketing Agreement, and (ii) during the non-exclusive term, a low- to mid-single digit percentage of cumulative net operating income. As further described in Note 8— Goodwill and Intangible Assets , the Marketing Agreement was recorded as an indefinite-lived intangible asset. On October 30, 2020, the Company and MGM agreed to amend the Marketing Agreement (the “MGM Amendment”), under which the Company and MGM agreed to terminate the profit share provision. In exchange, the Company agreed to remit to MGM a one-time payment of $20.0 million, payable on the earliest to occur of (i) the PIPE Investment, (ii) the date that the Company waives MGM’s commitment to participate in the PIPE Investment, or (iii) two years from the date of the MGM Amendment. In addition, MGM agreed to reinvest in the Company at a minimum amount of $20.0 million by participating in the PIPE Investment or a private placement of equity offering to third party investors for minimum gross proceeds to the Company of $50.0 million. As a result of the termination, the Company is no longer obligated to make profit share payments, but the other rights and obligations under the Marketing Agreement continue in full force and effect. |
RECEIVABLES
RECEIVABLES | 3 Months Ended |
Mar. 31, 2022 | |
Receivables [Abstract] | |
RECEIVABLES | RECEIVABLES Receivables consist of the following: March 31, December 31, Trade receivables $ 20,731 $ 20,540 Other receivables 251 153 Total receivables $ 20,982 $ 20,693 Trade receivables generally represent amounts due to the Company from social and mobile platform operators, including Apple, Google, Amazon and Facebook. Trade receivables are recorded when the right to consideration becomes unconditional. No allowance for doubtful accounts was considered necessary as of March 31, 2022 and December 31, 2021. Concentration of Credit Risk As of March 31, 2022, Apple, Inc. and Google, Inc. accounted for 41.3% and 33.0% of the Company’s total receivables, respectively, while as of December 31, 2021, Apple, Inc. and Google, Inc. accounted for 43.0% and 34.6% of the Company’s total receivables, respectively. As of March 31, 2022 and December 31, 2021, the Company did not have any additional counterparties that exceeded 10% of the Company’s net accounts receivable. During the year ended December 31, 2021, the Company entered into agreements pursuant to which the Company acquired the rights to develop and operate Tetris®-branded mobile games. As contemplated in the agreements, the Company agreed to an $8.0 million Advance Payment (as defined in Note 14— Commitments and Contingencies ). If the Company and the c ounterparty |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENT | FAIR VALUE MEASUREMENT The carrying values of the Company’s cash and cash equivalents, trade receivables and accounts payable approximate fair value due to their short maturities. The following tables present the financial assets not measured at fair value on a recurring basis as of March 31, 2022 and December 31, 2021: March 31, 2022 Carrying Value Estimated Fair Value Fair Value Hierarchy Financial Statement Line Item Financial assets: Notes receivable - current $ 72 $ 72 Level 3 Receivables Notes receivable - non-current 1,250 1,250 Level 3 Other long-term assets Prepaid expenses - non-current 8,000 8,000 Level 3 Other long-term assets Total financial assets $ 9,322 $ 9,322 December 31, 2021 Carrying Value Estimated Fair Value Fair Value Hierarchy Financial Statement Line Item Financial assets: Notes receivable - current $ 8 $ 8 Level 3 Receivables Notes receivable - non-current $ 3,391 $ 3,391 Level 3 Other long-term assets Prepaid expenses - non-current $ 8,000 $ 8,000 Level 3 Other long-term assets Total financial assets $ 11,399 $ 11,399 The notes receivable are fixed-rate investments, are not traded and do not have observable market inputs, therefore, the fair value is estimated to be equal to the carrying value. The advance payment is not a traded asset and does not have observable market inputs, therefore, the fair value is estimated to be equal to the carrying value. The following tables present the liabilities measured at fair value on a recurring basis, by input level, in the Consolidated Balance Sheets at March 31, 2022 and December 31, 2021: March 31, 2022 Level 1 Level 2 Level 3 Total Financial liabilities: Public Warrants $ 6,027 — — 6,027 Private Warrants — 3,210 — 3,210 Total financial liabilities $ 6,027 $ 3,210 $ — $ 9,237 December 31, 2021 Level 1 Level 2 Level 3 Total Financial liabilities: Public Warrants $ 4,255 — — 4,255 Private Warrants — 2,266 — 2,266 Total financial liabilities $ 4,255 $ 2,266 $ — $ 6,521 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 3 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | PROPERTY AND EQUIPMENT, NET Property and equipment, net consists of the following: March 31, December 31, Computer equipment $ 8,943 8,819 Leasehold improvements 6,496 6,310 Purchased software 2,352 542 Furniture and fixtures $ 2,300 $ 2,125 Construction in progress 911 721 Total property and equipment 21,002 18,517 Less: accumulated depreciation (13,887) (13,228) Total property and equipment, net $ 7,115 $ 5,289 The aggregate depreciation expense for property and equipment, net is reflected in “Depreciation and amortization” in the Consolidated Statements of Operations. During the three months ended March 31, 2022 and 2021, depreciation expense was $0.8 million and $0.7 million, respectively. No impairment charges or material write-offs were recorded for the three months ended March 31, 2022 and 2021. Property and equipment, net by region consists of the following: March 31, December 31, United States $ 3,281 $ 1,672 EMEA (1) 2,916 2,813 All other countries 918 804 Total property and equipment, net $ 7,115 $ 5,289 (1) Europe, Middle East, and Africa (“EMEA”). Amounts primarily represent leasehold improvements of local office space and computer equipment. |
INTERNAL-USE SOFTWARE, NET
INTERNAL-USE SOFTWARE, NET | 3 Months Ended |
Mar. 31, 2022 | |
Research and Development [Abstract] | |
INTERNAL-USE SOFTWARE, NET | INTERNAL-USE SOFTWARE, NET Internal-use software, net consists of the following: March 31, December 31, Internal-use software $ 128,487 $ 130,942 Less: accumulated amortization (92,865) (87,675) Total internal-use software, net $ 35,622 $ 43,267 The aggregate amortization expense for internal-use software, net is reflected in "Depreciation and amortization" in the Consolidated Statements of Operations. During the three months ended March 31, 2022 and 2021, the Company capitalized internal-use software development costs of $6.6 million and $6.9 million. Total amortization expense associated with its capitalized internal-use software development costs for the three months ended March 31, 2022 and 2021 was $5.9 million and $5.2 million. During the three months ended March 31, 2022, the Company adopted a plan to suspend the further development of Kingdom Boss, resulting in a change in the useful life of the assets associated with Kingdom Boss. The Company recorded a $8.4 million non-cash impairment charge during the first quarter of 2022 within "Restructuring and related" in the Consolidated Statement of Operations. There were no write-offs or impairment charges recorded for the three months ended March 31, 2021. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS Goodwill The Company had $5.1 million in goodwill as of March 31, 2022 and December 31, 2021. There were no business combinations during the three months ended March 31, 2022 and 2021. There were no indicators of impairment as of March 31, 2022 and December 31, 2021. Intangible Assets The following table provides the gross carrying value and accumulated amortization for each major class of intangible asset other than goodwill: March 31, 2022 December 31, 2021 Gross Accumulated Net Gross Accumulated Net Amortizable intangible assets: Licenses $ 19,000 $ (2,932) $ 16,068 $ 19,000 $ (1,245) $ 17,755 Trade names 1,240 (1,240) — 1,240 (1,240) — 20,240 (4,172) 16,068 20,240 (2,485) 17,755 Nonamortizable intangible assets: Marketing Agreement with a related party 1,000 — 1,000 1,000 — 1,000 Total intangible assets $ 21,240 $ (4,172) $ 17,068 $ 21,240 $ (2,485) $ 18,755 Intangible assets consist of trade names and long-term license agreements with various third parties. In 2021, the Company entered into agreements with N3TWORK Inc. and The Tetris Company, LLC pursuant to which the Company acquired the rights to develop and operate Tetris ® -branded mobile games for an initial term through August 2024. The Company paid N3TWORK Inc. $13.0 million at closing and agreed to pay up to an additional $34.0 million subject to satisfaction of certain conditions, of which $8.0 million was an Advance Payment (as defined in Note 14— Commitments and Contingencies ) . In addition, the Company will pay royalties to The Tetris Company, LLC, the licensor of the rights. The aggregate amortization expense for amortizable intangible assets is reflected in “Depreciation and amortization” in the Consolidated Statements of Operations. During the three months ended March 31, 2022 and 2021, amortization was $1.7 million and $0.1 million, respectively. There were no impairment charges for intangible assets for the three months ended March 31, 2022 and 2021. As of March 31, 2022, the estimated annual amortization expense for the years ending December 31, 2022 through 2026 is as follows: Year Ending December 31, Projected Amortization Remaining 2022 $ 5,059 2023 6,645 2024 4,364 2025 — 2026 — Total $ 16,068 |
WARRANT LIABILITIES
WARRANT LIABILITIES | 3 Months Ended |
Mar. 31, 2022 | |
Other Liabilities Disclosure [Abstract] | |
WARRANT LIABILITIES | WARRANT LIABILITIES Public Warrants and Private Warrants Upon the closing of the Business Combination, there were approximately 7.2 million publicly-traded redeemable warrants to purchase shares of Class A common stock (the "Public Warrants") and 3.8 million redeemable warrants to purchase shares of Class A common stock initially issued to the Sponsor in a private placement (the "Private Warrants") were issued by Acies prior to the Business Combination. Each whole Public Warrant entitles the registered holder to purchase one whole share of the Company’s Class A common stock at a price of $11.50 in cash per share, subject to adjustment as discussed below, as of October 27, 2021. Pursuant to the Warrant Agreement, a holder of Public Warrants may exercise the Public Warrants only for a whole number of shares of Class A common stock. The Public Warrants will expire 5 years after the completion of the Business Combination, or earlier upon redemption or liquidation. The Private Warrants are identical to the Public Warrants, except that the Private Warrants and the shares of Class A common stock issuable upon exercise of the Private Warrants were not transferable until after the completion of the Business Combination, subject to certain limited exceptions. Additionally, the Private Warrants are non-redeemable so long as they are held by the initial holder or any of its permitted transferees. If the Private Warrants are held by someone other than the initial holder or its permitted transferees, the Private Warrants will be redeemable by the Company and exercisable by such holders on the same basis as the Public Warrants. The Private Warrants may be exercised on a cashless basis so long as held by the Sponsor or certain permitted transferees. The Company may redeem the outstanding Public Warrants in whole, but not in part, at a price of $0.01 per Public Warrant upon a minimum of 30 days’ prior written notice of redemption, if and only if the last sale price of the Company’s common stock equals or exceeds $18.00 per share for any 20-trading days within a 30-trading day period ending three At March 31, 2022, there were approximately 7.2 million Public Warrants and 3.8 million Private Warrants outstanding. Refer to Note 5— Fair Value Measurements for further information. On April 1, 2022, the Company commenced (i) an offer to each holder of its outstanding Public Warrants and Private Warrants (collectively, the “Warrants”), each to purchase shares of its Class A common stock, par value $0.0001 per share, the opportunity to receive $1.00 in cash, without interest, for each outstanding Warrant tendered by the holder pursuant to the offer (the “Offer to Purchase”), and (ii) the solicitation of consents (the “Consent Solicitation”) from holders of the outstanding Warrants to amend the Warrant Agreement, dated as of October 22, 2020, by and between the Company (formerly Acies Acquisition Corp.) and Continental Stock Transfer & Trust Company, which governs all of the Warrants (the “Warrant Amendment”) (collectively the "Tender Offer"). If approved, the Warrant Amendment would permit the Company to redeem each outstanding Warrant for $0.90 in cash, without interest, which is 10% less than the purchase price applicable to the Offer to Purchase. The total amount of cash required to complete the Offer to Purchase, including the payment of any fees, expenses and other related amounts incurred in connection with the Offer to Purchase, will be approximately $11.9 million, all of which the Company will fund from its existing and available cash reserve, with no alternative plans to finance the purchase of the tendered Warrants. |
ACCRUED LIABILITIES
ACCRUED LIABILITIES | 3 Months Ended |
Mar. 31, 2022 | |
Payables and Accruals [Abstract] | |
ACCRUED LIABILITIES | ACCRUED LIABILITIES Accrued liabilities consist of the following: March 31, December 31, Accrued payroll and vacation 5,626 5,696 Minimum guarantee liability 5,200 5,200 Other accruals 5,943 4,703 Total accrued liabilities $ 16,769 $ 15,599 |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | REVENUE FROM CONTRACTS WITH CUSTOMERS Disaggregation of Revenue The following table summarizes the Company’s revenue disaggregated by type, and by over time or point in time recognition: Three Months Ended 2022 2021 Virtual currency (over time) (1) $ 65,935 $ 73,226 Advertising (point in time) 4,075 871 Other revenue (point in time) 441 — Total net revenue $ 70,451 $ 74,097 (1) Virtual currency is recognized over the estimated consumption period. The following table summarizes the Company’s revenue disaggregated by geography: Three Months Ended 2022 2021 United States $ 62,103 $ 64,074 All other countries 8,348 10,023 Total net revenue $ 70,451 $ 74,097 Contract Balances Contract assets represent the Company’s ability to bill customers for performance obligations completed under a contract. As of March 31, 2022 and December 31, 2021, there were no contract assets recorded in the Company’s consolidated balance sheet. The deferred revenue balance related to the purchase of virtual currency was immaterial as of March 31, 2022 and December 31, 2021. The opening and closing balance of trade receivables is further described in Note 4— Receivables |
LONG-TERM DEBT
LONG-TERM DEBT | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT Credit Agreement On June 24, 2021, in connection with the Closing, the Company terminated and replaced the Revolver (as defined below). The Company, a subsidiary of the Company, JPMorgan Chase Bank, N.A., as administrative agent and JPMorgan Chase Bank, N.A., Silicon Valley Bank and Wells Fargo Securities, LLC, as joint bookrunners and joint lead arrangers entered into a credit agreement (the “Credit Agreement”) which provides for a five-year revolving credit facility in an aggregate principal amount of $75.0 million. Borrowings under the Credit Agreement may be borrowed, repaid and re-borrowed by the Company, and are available for working capital, general corporate purposes and permitted acquisitions. Commitment fees and interest rates are determined on the basis of either a Eurodollar rate or an Alternate Base Rate plus an applicable margin. The applicable margins are initially 2.50%, in the case of Eurodollar loans, and 1.50%, in the case of Alternate Base Rate loans. The applicable margin is subject to adjustment based upon the Company's Total Net Leverage Ratio (as defined in the Credit Agreement). Eurodollar rates and the Alternate Base Rate are subject to floors of 0.00% and 1.00%, respectively. The Credit Agreement contains various affirmative and negative financial and operational covenants applicable to the Company and its subsidiaries. The Credit Agreement includes customary reporting requirements, conditions precedent to borrowing and affirmative, negative and financial covenants. Specific financial covenants include the following, commencing with the quarter ended September 30, 2021: • Maximum Net Leverage Ratio of 3.50:1.00 (subject to increase to 4.00:1.00 following consummation of certain material acquisitions) • Minimum Fixed Charge Coverage Ratio of 1.25:1.00. At issuance, the Company capitalized $0.7 million in debt issuance costs. As of March 31, 2022, the Company has not made any drawdowns on the Credit Agreement. Private Venture Growth Capital Loans |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company recorded an income tax expense of $7.8 million and $1.3 million for the three months ended March 31, 2022 and 2021, respectively. Our effective tax rate was (45.1)% for the three months ended March 31, 2022 compared to 18.5% for the three months ended March 31, 2021. The effective rate of (45.1)% differs from the federal statutory rate of 21% primarily due to the jurisdictional mix of earnings at differing tax rates, research and development tax credits, non-deductible stock compensation, and the effect of a valuation allowance on certain federal deferred tax assets. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Minimum Guarantee Liability The following are the Company’s total minimum guaranteed obligations as of: March 31, December 31, Minimum guarantee liability - current 5,200 5,200 Total minimum guarantee obligations $ 5,200 $ 5,200 Weighted-average remaining contractual term (in years) 2.4 2.6 The following are the Company’s remaining expected future payments of minimum guarantee obligations as of March 31, 2022: Year Ending December 31, Minimum Guarantee Remainder of 2022 $ 5,200 2023 — 2024 — 2025 — 2026 — Total $ 5,200 Leases The Company leases both office space and office equipment and classifies these leases as either operating or capital leases for accounting purposes based upon the terms and conditions of the individual lease agreements. As of March 31, 2022, all leases were classified as operating leases and expire at various dates through 2027, with certain leases containing renewal option periods of two The Company’s future minimum rental commitments as of March 31, 2022, are as follows: Year Ending December 31, Minimum Rental Remaining 2022 $ 3,042 2023 4,415 2024 4,349 2025 2,598 2026 and thereafter 3,485 Total $ 17,889 Certain lease agreements have rent escalation provisions over the lives of the leases. The Company recognizes rental expense based on a straight-line basis over the term of the leases. Rental expense was $1.1 million and $1.2 million for the three months ended March 31, 2022 and 2021, respectively, which is included within “General and administrative” expenses in the Consolidated Statements of Operations. N3TWORK, Inc. On November 22, 2021, the Company entered into agreements with N3TWORK Inc. and The Tetris Company, LLC pursuant to which the Company acquired the rights to develop and operate Tetris®-branded mobile games for an initial term through August 2024. The Company paid N3TWORK Inc. $13.0 million at closing and agreed to pay up to an additional $34.0 million subject to satisfaction of certain conditions (the "Contingent Payments"). As of March 31, 2022, the Company advanced $8.0 million of the Contingent Payments (the "Advance Payment"). None of the Advance Payment was considered earned as of March 31, 2022, which is included within "Other long-term assets" within the Consolidated Balance Sheets. Other The Company is party to ordinary and routine litigation incidental to its business. On a case-by-case basis, the Company engages inside and outside counsel to assess the probability of potential liability resulting from such litigation. After making such assessments, the Company makes an accrual for the estimated loss only when the loss is reasonably probable and an amount can be reasonably estimated. The Company does not expect the outcome of any pending litigation to have a material effect on the Company’s Consolidated Balance Sheets, Consolidated Statements of Operations, or Consolidated Statements of Cash Flows. In May 2021, the Company became party to a litigation matter brought by TeamSava d.o.o. Beograd (“TeamSava”) and other related parties. The plaintiffs filed a Statement of Claim in May 2021 in Tel Aviv District Court in Israel, alleging claims, among other things, that the Company breached the terms of a commercial contract relating to services provided by TeamSava and related parties in connection with the sourcing and administrative management of personnel in Serbia who provided game development services exclusively for the Company. The pending litigation seeks damages of 27.3 million New Israeli Shekels ("NIS"). The Company believes that the claims are without merit and the Company intends to vigorously defend against them; however, there can be no assurance that the Company will be successful in the defense of this litigation. The Company’s range of possible loss could be up to 27.3 million NIS based on the claim amount of the litigation, but the Company is not able to reasonably estimate the probability or amount of loss and therefore has not made any accruals. On April 6, 2022, a class action lawsuit was filed in the United Stated District Court, Northern District of California, by a purported Company shareholder in connection with alleged federal securities violations: Christian A. Felipe et. al. v. PLAYSTUDIOS, Inc. (the “Felipe Complaint”). The Felipe Complaint names the Company and Andrew Pascal, the Company’s Chairman and CEO as defendants. The Felipe Complaint alleges misrepresentations and omissions regarding the state of the Company’s development of the Kingdom Boss game and its financial projections and future prospects in the S-4 Registration Statement filed by Acies that was declared effective on May 25, 2021, the Proxy Statement filed by Acies on May 25, 2021, and other public statements that touted Old PLAYSTUDIOS’ and the Company’s financial performance and operations, including statements made on earnings calls and the Amended S-1 Registration Statement filed by the Company that was declared effective on July 30, 2021. The Felipe Complaint alleges that the misrepresentations and omissions resulted in stock price drops of 13% on August 12, 2021, and 5% on February 25, 2022, following (i) the Company’s release of financial results for the second quarter of 2021, ended on June 30, 2021, and (ii) the filing of the Company’s annual report for 2021 and issuance of a press release summarizing financial results for the fourth quarter and year ended December 31, 2021, respectively. The Felipe Complaint seeks an award of damages for an unspecified amount. The Company believes that the claims are without merit and the Company intends to vigorously defend against them; however, there can be no assurance |
STOCKHOLDERS_ EQUITY
STOCKHOLDERS’ EQUITY | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
STOCKHOLDERS’ EQUITY | STOCKHOLDERS’ EQUITY The condensed consolidated statements of stockholders’ equity reflect the reverse recapitalization as discussed in Note 1— Background and Basis of Presentation as of June 21, 2021. As Old PLAYSTUDIOS was deemed the accounting acquirer in the reverse recapitalization with Acies, all periods prior to the consummation date reflect the balances and activity of Old PLAYSTUDIOS. The consolidated balances and the audited consolidated financial statements of Old PLAYSTUDIOS, as of December 31, 2020, and the share activity and per share amounts in these condensed consolidated statements of equity were retroactively adjusted, where applicable, using the recapitalization exchange ratio of approximately 0.233 for Old PLAYSTUDIOS common stock. Old PLAYSTUDIOS Series A Preferred Stock, Old PLAYSTUDIOS Series B Preferred Stock, Old PLAYSTUDIOS Series C-1 Preferred Stock, and Old PLAYSTUDIOS Series C Preferred Stock were deemed converted into shares of Old PLAYSTUDIOS common stock at a share conversion factor of 1.0 as a result of the reverse recapitalization. Old PLAYSTUDIOS warrants to purchase preferred stock were deemed exercised and the underlying shares converted based on the respective preferred stock conversion ratio. Common Stock As of March 31, 2022, the Company was authorized to issue 2.0 billion and 25.0 million shares of Class A and Class B common stock, respectively. The Company had 110.3 million and 110.1 million shares of Class A common stock and 16.1 million and 16.1 million shares of Class B common stock issued and outstanding as of March 31, 2022 and December 31, 2021, respectively. Subject to the prior rights of the holders of any preferred stock, the holders of common stock are entitled to receive dividends out of the funds legally available at the times and in the amounts determined by the Company's Board of Directors. Each holder of Class A common stock is entitled to one vote for each share of Class A common stock held and each holder of Class B common stock is entitled to twenty votes for each share of Class B common stock held. After the full preferential amounts due to preferred stockholders have been paid or set aside, the remaining assets of the Company available for distribution to its stockholders, if any, are distributed to the holders of common stock ratably in proportion to the number of shares of common stock then held by each such holder. None of the Company’s common stock is entitled to preemptive rights and neither is subject to redemption. The Company’s common stock is not convertible into any other shares of the Company’s capital stock. The shares of Class B common stock are subject to a “sunset” provision if any member of the Founder Group transfers shares of Class B common stock outside the Founder Group (except for certain permitted transfers). In the event of such non-permitted transfers, any share transferred will automatically convert into shares of Class A common stock. In addition, the outstanding shares of Class B common stock will be subject to a “sunset” provision by which all outstanding shares of Class B common stock will automatically convert into shares of Class A common stock (i) if holders representing a majority of the Class B common stock vote to convert the Class B common stock into Class A common stock, (ii) if the Founder Group and its permitted transferees collectively no longer beneficially own at least 20% of the number of shares of Class B common stock collectively held by the Founder Group as of the Effective Time, or (iii) on the nine-month anniversary of the Founder’s death or disability, unless such date is extended by a majority of independent directors. Accumulated Other Comprehensive Income The following tables shows a summary of changes in accumulated other comprehensive income: Currency Total Accumulated Balance as of December 31, 2021 $ 393 $ 393 Foreign currency translation (6) (6) Balance as of March 31, 2022 $ 387 $ 387 Currency Total Accumulated Balance as of December 31, 2020 $ 481 $ 481 Foreign currency translation (296) (296) Balance as of March 31, 2021 $ 185 $ 185 Stock Repurchase Program On November 10, 2021, the Company’s Board of Directors approved a stock repurchase program authorizing the Company to purchase up to $50.0 million of the Company’s Class A common stock over a period of 12 months. Subject to applicable rules and regulations, the shares may be purchased from time to time in the open market or in privately negotiated transactions. Such purchases will be at times and in amounts as the Company deems appropriate, based on factors such as market conditions, legal requirements and other business considerations. As of March 31, 2022, the Company has not repurchased any Class A common stock under the stock repurchase program. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION 2011 and 2021 Equity Incentive Plans The Company has two equity incentive plans: Old PLAYSTUDIOS' 2011 Omnibus Stock and Incentive Plan (the “2011 Plan”) and the 2021 Equity Incentive Plan (the “2021 Plan”). The 2021 Plan provides for the grant of non-qualified stock options, incentive stock options, stock appreciation rights, restricted stock, restricted stock units and other stock awards, and performance awards to employees, officers, non-employee directors and independent service providers of the Company. The 2021 Plan became effective immediately upon the closing of the Business Combination and replaces the 2011 Plan and no additional awards will be available under the 2011 Plan. Each Old PLAYSTUDIOS stock option from the 2011 Plan that was outstanding immediately prior to the Business Combination and held by current employees or service providers, whether vested or unvested, was converted into an option to purchase approximately 0.233 shares of common stock (each such option, an “Exchanged Option”). Except as specifically provided in the Merger Agreement, following the Business Combination, each Exchanged Option continues to be governed by the same terms and conditions (including vesting and exercisability terms) as were applicable to the corresponding former Old PLAYSTUDIOS option immediately prior to the consummation of the Business Combination. All equity awards activity was retroactively restated to reflect the Exchanged Options. The number of shares of common stock available under the 2021 Plan will increase annually on the first day of each calendar year, beginning with the calendar year ending December 31, 2022, with such annual increase equal to the lesser of (i) 5% of the number of shares of common stock issued and outstanding on the last business day of the immediately preceding fiscal year and (ii) an amount determined by the Company's Board of Directors. If any award (or any award under the 2011 Plan) is forfeited, cancelled, expires, terminates or otherwise lapses or is settled in cash, in whole or in part, without the delivery of Class A common stock or Class B common stock, then the shares (including both the Class A common stock and Class B common stock) covered by such forfeited, expired, terminated or lapsed award shall again be available as shares for grant under the 2021 Plan. As of March 31, 2022, the Company has 15.7 million shares of Class A common stock reserved for issuance under the 2021 Plan. Stock-Based Compensation The following table summarizes stock-based compensation expense that the Company recorded in income (loss) from operations for the periods shown: Three Months Ended March 31, 2022 2021 Selling and marketing $ 319 $ 21 General and administrative 3,149 383 Research and development 3,400 496 Stock-based compensation expense $ 6,868 $ 900 Capitalized stock-based compensation $ 1,101 $ 209 Stock Options All of the options granted under the 2011 Plan have time-based vesting periods vesting over a period of three The following is a summary of stock option activity for time-based and performance-based options for the three months ended March 31, 2022 (in thousands, except weighted-average exercise price and remaining term): No. of Weighted-Average Weighted-Average Aggregate Outstanding - December 31, 2021 14,749 $ 0.85 Granted — — Exercised (113) 1.15 Forfeited (85) 2.06 Expired (64) 1.74 Outstanding - March 31, 2022 14,487 0.84 6.0 $ 58,490 Unvested - March 31, 2022 3,141 0.85 7.3 12,803 Exercisable - March 31, 2022 11,346 0.83 5.6 45,687 As of March 31, 2022, there was approximately $4.9 million of total unrecognized compensation expense related to stock options to employees. As of March 31, 2022, this cost is expected to be recognized over a remaining average period of 1.4 years. The total intrinsic value of stock options exercised under the provisions of the 2011 Plan during the three months ended March 31, 2022 and 2021, was $0.4 million and $4.9 million, respectively. Restricted Stock Units ("RSUs") During the three months ended March 31, 2022, the Company approved the issuance of 7.9 million RSUs. Generally, RSUs are granted using a three four During the three months ended March 31, 2022, the Company accelerated the first year vesting for several employees, resulting in 0.2 million RSUs vesting during the same period. The following is a summary of RSU activity for the three months ended March 31, 2022: No. of Outstanding - December 31, 2021 — Granted 7,871 Vested (160) Forfeited (21) Outstanding - March 31, 2022 7,690 |
NET (LOSS) INCOME PER SHARE
NET (LOSS) INCOME PER SHARE | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
NET (LOSS) INCOME PER SHARE | NET (LOSS) INCOME PER SHARE Basic net (loss) income per share is computed by dividing net (loss) income attributable to Class A and Class B common stockholders by the weighted-average number of shares of each respective class of common stock outstanding during the period. Diluted net (loss) income per share is computed by dividing net (loss) income attributable to Class A and Class B common stockholders by the weighted-average number of each respective class of common stock outstanding, including the potential dilutive securities. For the calculation of diluted net (loss) income per share, net (loss) income attributable to Class A and Class B common stockholders is adjusted to reflect the potential effect of dilutive securities. As result of the reverse recapitalization, the Company has retroactively adjusted the weighted average shares outstanding prior to the Business Combination to give effect to the Exchange Ratio used to determine the number of shares of common stock into which they were converted. The following table sets forth the computation of basic and diluted net (loss) income attributable to Class A and Class B common stockholders per share (in thousands except per share data): Three Months Ended March 31, 2022 Three Months Ended March 31, 2021 Class A Class B Class A Class B Numerator Net (loss) income attributable to common stockholders – basic $ (21,992) $ (3,220) $ 4,721 $ 1,197 Potential dilutive effect of stock options — — 72 (72) Net (loss) income attributable to common stockholders – diluted $ (21,992) $ (3,220) $ 4,793 $ 1,125 Denominator Weighted average shares of common stock outstanding - basic 110,207 16,130 74,832 18,977 Potential dilutive effect of stock options — — 14,220 1,922 Weighted average shares of common stock outstanding - diluted 110,207 16,130 89,052 20,899 Net (loss) income attributable to common stockholders per share Basic $ (0.20) $ (0.20) $ 0.06 $ 0.06 Diluted $ (0.20) $ (0.20) $ 0.05 $ 0.05 For the periods presented above, the net (loss) income per share amounts are the same for Class A and Class B common stock because the holders of each class are entitled to equal per share dividends or distributions in liquidation in accordance with the Certificate of Incorporation. The undistributed (losses) earnings for each period are allocated based on the contractual participation rights of the Class A and Class B common stock as if the (losses) earnings for the period had been distributed. As the liquidation and dividend rights are identical, the undistributed (losses) earnings are allocated on a proportionate basis. The following equity awards outstanding at the end of each period presented have been excluded from the computation of diluted net (loss) income per share of common stock for the periods presented due to their anti-dilutive effect: Three Months Ended March 31, 2022 2021 Stock options 14,486 206 RSUs 7,690 — Public Warrants 7,175 — Private Warrants 3,821 — Earnout Shares 15,000 — 48,172 206 |
EMPLOYEE BENEFIT PLAN
EMPLOYEE BENEFIT PLAN | 3 Months Ended |
Mar. 31, 2022 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLAN | EMPLOYEE BENEFIT PLANThe Company offers a 401(k) retirement savings plan to eligible employees. Employee contributions are voluntary and made on a pretax basis subject to Internal Revenue Service limitations. Beginning in the second quarter of 2022, the Company will provide a match a percentage of employee contributions up to certain limits. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation The accompanying condensed consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The consolidated financial statements include the accounts of PLAYSTUDIOS, Inc. and its consolidated subsidiaries. All intercompany balances and transactions have been eliminated upon consolidation. Certain reclassifications in these financial statements have been made to comply with US GAAP applicable to public companies and SEC Regulation S-X. The significant accounting policies referenced in the annual consolidated financial statements of the Company as of December 31, 2021 have been applied consistently in these unaudited interim consolidated financial statements. In the opinion of the Company, the accompanying unaudited financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair presentation of its financial position as of March 31, 2022, and its results of operations for the three months ended March 31, 2022, and 2021, and cash flows for the three months ended March 31, 2022, and 2021. The Consolidated Balance Sheet as of December 31, 2021 was derived from the audited annual financial statements but does not contain all of the footnote disclosures from the annual financial statements. The Company made certain reclassifications to the comparative balances in the condensed consolidated financial statements to conform with current year presentation. |
Use of Estimates | Use of Estimates The preparation of condensed consolidated financial statements in conformity with US GAAP requires us to make estimates and assumptions that affect the reported amounts in the consolidated financial statements and notes thereto. Significant estimates and assumptions reflected in the Company’s condensed consolidated financial statements include the estimated consumption rate of virtual goods that is used in the determination of revenue recognition, useful lives of property and equipment and definite-lived intangible assets, the expensing and capitalization of research and development costs for internal-use software, assumptions used in accounting for income taxes, stock-based compensation and the evaluation of |
Segments | Segments Operating segments are defined as components of an entity for which discrete financial information is available, and that is regularly reviewed by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources to an individual segment and in assessing performance. The CODM, the Company’s Chief Executive Officer, reviews financial information on a consolidated basis for purposes of evaluating performance and allocating resources. As such, the Company has one operating and reportable segment. |
Share-Based Compensation | Share-Based Compensation The Company has a stock-based compensation program which provides for equity awards including time-based stock options and restricted stock units (“RSUs”). Stock-based compensation expense is measured at the grant date, based on the estimated fair value of the award, and is recognized as expense over the requisite service period for the award. The Company records forfeitures as a reduction of stock-based compensation expense as those forfeitures occur. The Company uses the Black-Scholes-Merton option-pricing model to determine the fair value for option awards. In valuing our option awards, the Company makes assumptions about risk-free interest rates, dividend yields, volatility and weighted-average expected lives. The Company accounts for forfeitures as they occur. Risk-free interest rates are derived from United States Treasury securities as of the option award grant date. Expected dividend yield is based on our historical cash dividend payments, which have been zero to date. The expected volatility for shares of the Company's Class A common stock is estimated using our historical volatility. The weighted-average expected life of the option awards is estimated based on our historical exercise data. The Company's dual class structure was created upon the Domestication (as defined in Note 1— Background and Basis of Presentation ). The Class B common stock including Class B common stock underlying vested stock options, held by Mr. Andrew Pascal, the Company's Chairman and Chief Executive Officer, or his affiliates (the "Founder Group") carry a super vote premium. As the Founder Group did not have control of Old PLAYSTUDIOS prior to the Business Combination, and Mr. Pascal is an employee of the Company, the incremental value resulting from the super vote premium is accounted for as incremental compensation costs. The Company utilized the market approach by observing other market participants with (i) dual class structures, (ii) super vote premiums for a single class and (iii) both classes trading on a national exchange. Based on the observed data, management selected a premium for the Class B common stock and the stock options held by members of the Founder Group. The Company uses the estimated fair value of equity and associated per-share value at the time of grant to determine the compensation cost to be recognized associated with RSUs granted. |
Recently Issued Accounting Pronouncements Not Yet Adopted and Recently Adopted Accounting Pronouncements | Recently Issued Accounting Pronouncements Not Yet Adopted In February 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016-02, Leases (Topic 842) . The amended guidance is intended to increase transparency and comparability among organizations by recognizing lease assets and liabilities in the Consolidated Balance Sheets and disclosing key information about leasing arrangements. The adoption of this guidance is expected to result in a significant portion of the Company’s operating leases, where the Company is the lessee, to be recognized in the Company’s Consolidated Balance Sheets. The guidance requires lessees and lessors to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. This guidance is effective for the Company for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022, with earlier adoption permitted. The Company intends to first present the application of this guidance in its Annual Report on Form 10-K for the year ending December 31, 2022 with an effective date of January 1, 2022. The Company is currently evaluating the impact of adopting this guidance. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326). The new guidance replaces the incurred loss impairment methodology in current guidance with a current expected credit loss model (“CECL”) that incorporates a broader range of reasonable and supportable information including the forward-looking information. This guidance is effective for the Company for fiscal years beginning after December 15, 2022, including interim periods within that annual reporting period, with early adoption permitted. Application of the amendments is through a cumulative-effect adjustment to retained earnings as of the effective date. The Company is currently evaluating the impact of adopting this guidance. Recently Adopted Accounting Pronouncements In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes . The new guidance removes certain exceptions for recognizing deferred taxes for investments, performing intraperiod allocation and calculating income taxes in interim periods. It also adds guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. The Company adopted this guidance prospectively on January 1, 2022. The adoption resulted in the Company not utilizing the prior exception under ASC 740-270-30-28 to the general methodology of calculating interim income taxes for the period ended March 31, 2022, but did not have a material impact on the Company’s condensed consolidated financial statements. |
RELATED-PARTY TRANSACTIONS (Tab
RELATED-PARTY TRANSACTIONS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
Summary of Balance Sheet Assets and Liabilities from Related Parties | The following table is a summary of balance sheet assets and liabilities from related parties: March 31, December 31, Financial Statement Line Item Marketing Agreement $ 1,000 $ 1,000 Intangibles, net |
RECEIVABLES (Tables)
RECEIVABLES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Receivables [Abstract] | |
Schedule Receivables | Receivables consist of the following: March 31, December 31, Trade receivables $ 20,731 $ 20,540 Other receivables 251 153 Total receivables $ 20,982 $ 20,693 |
FAIR VALUE MEASUREMENT (Tables)
FAIR VALUE MEASUREMENT (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Financial Assets not Measured at Fair Value on a Recurring Basis | The following tables present the financial assets not measured at fair value on a recurring basis as of March 31, 2022 and December 31, 2021: March 31, 2022 Carrying Value Estimated Fair Value Fair Value Hierarchy Financial Statement Line Item Financial assets: Notes receivable - current $ 72 $ 72 Level 3 Receivables Notes receivable - non-current 1,250 1,250 Level 3 Other long-term assets Prepaid expenses - non-current 8,000 8,000 Level 3 Other long-term assets Total financial assets $ 9,322 $ 9,322 December 31, 2021 Carrying Value Estimated Fair Value Fair Value Hierarchy Financial Statement Line Item Financial assets: Notes receivable - current $ 8 $ 8 Level 3 Receivables Notes receivable - non-current $ 3,391 $ 3,391 Level 3 Other long-term assets Prepaid expenses - non-current $ 8,000 $ 8,000 Level 3 Other long-term assets Total financial assets $ 11,399 $ 11,399 |
Liabilities Measured at Fair Value on a Recurring Basis | The following tables present the liabilities measured at fair value on a recurring basis, by input level, in the Consolidated Balance Sheets at March 31, 2022 and December 31, 2021: March 31, 2022 Level 1 Level 2 Level 3 Total Financial liabilities: Public Warrants $ 6,027 — — 6,027 Private Warrants — 3,210 — 3,210 Total financial liabilities $ 6,027 $ 3,210 $ — $ 9,237 December 31, 2021 Level 1 Level 2 Level 3 Total Financial liabilities: Public Warrants $ 4,255 — — 4,255 Private Warrants — 2,266 — 2,266 Total financial liabilities $ 4,255 $ 2,266 $ — $ 6,521 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, net | Property and equipment, net consists of the following: March 31, December 31, Computer equipment $ 8,943 8,819 Leasehold improvements 6,496 6,310 Purchased software 2,352 542 Furniture and fixtures $ 2,300 $ 2,125 Construction in progress 911 721 Total property and equipment 21,002 18,517 Less: accumulated depreciation (13,887) (13,228) Total property and equipment, net $ 7,115 $ 5,289 |
Property and Equipment, net by Region | Property and equipment, net by region consists of the following: March 31, December 31, United States $ 3,281 $ 1,672 EMEA (1) 2,916 2,813 All other countries 918 804 Total property and equipment, net $ 7,115 $ 5,289 (1) Europe, Middle East, and Africa (“EMEA”). Amounts primarily represent leasehold improvements of local office space and computer equipment. |
INTERNAL-USE SOFTWARE, NET (Tab
INTERNAL-USE SOFTWARE, NET (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Research and Development [Abstract] | |
Schedule of Internal-Use Software | Internal-use software, net consists of the following: March 31, December 31, Internal-use software $ 128,487 $ 130,942 Less: accumulated amortization (92,865) (87,675) Total internal-use software, net $ 35,622 $ 43,267 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | The following table provides the gross carrying value and accumulated amortization for each major class of intangible asset other than goodwill: March 31, 2022 December 31, 2021 Gross Accumulated Net Gross Accumulated Net Amortizable intangible assets: Licenses $ 19,000 $ (2,932) $ 16,068 $ 19,000 $ (1,245) $ 17,755 Trade names 1,240 (1,240) — 1,240 (1,240) — 20,240 (4,172) 16,068 20,240 (2,485) 17,755 Nonamortizable intangible assets: Marketing Agreement with a related party 1,000 — 1,000 1,000 — 1,000 Total intangible assets $ 21,240 $ (4,172) $ 17,068 $ 21,240 $ (2,485) $ 18,755 |
Schedule of Indefinite-Lived Intangible Assets | The following table provides the gross carrying value and accumulated amortization for each major class of intangible asset other than goodwill: March 31, 2022 December 31, 2021 Gross Accumulated Net Gross Accumulated Net Amortizable intangible assets: Licenses $ 19,000 $ (2,932) $ 16,068 $ 19,000 $ (1,245) $ 17,755 Trade names 1,240 (1,240) — 1,240 (1,240) — 20,240 (4,172) 16,068 20,240 (2,485) 17,755 Nonamortizable intangible assets: Marketing Agreement with a related party 1,000 — 1,000 1,000 — 1,000 Total intangible assets $ 21,240 $ (4,172) $ 17,068 $ 21,240 $ (2,485) $ 18,755 |
Schedule of Estimated Annual Amortization Expense | As of March 31, 2022, the estimated annual amortization expense for the years ending December 31, 2022 through 2026 is as follows: Year Ending December 31, Projected Amortization Remaining 2022 $ 5,059 2023 6,645 2024 4,364 2025 — 2026 — Total $ 16,068 |
ACCRUED LIABILITIES (Tables)
ACCRUED LIABILITIES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consist of the following: March 31, December 31, Accrued payroll and vacation 5,626 5,696 Minimum guarantee liability 5,200 5,200 Other accruals 5,943 4,703 Total accrued liabilities $ 16,769 $ 15,599 |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue by Type | The following table summarizes the Company’s revenue disaggregated by type, and by over time or point in time recognition: Three Months Ended 2022 2021 Virtual currency (over time) (1) $ 65,935 $ 73,226 Advertising (point in time) 4,075 871 Other revenue (point in time) 441 — Total net revenue $ 70,451 $ 74,097 (1) Virtual currency is recognized over the estimated consumption period. |
Disaggregation of Revenue by Geography | The following table summarizes the Company’s revenue disaggregated by geography: Three Months Ended 2022 2021 United States $ 62,103 $ 64,074 All other countries 8,348 10,023 Total net revenue $ 70,451 $ 74,097 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Minimum Guaranteed Obligations | The following are the Company’s total minimum guaranteed obligations as of: March 31, December 31, Minimum guarantee liability - current 5,200 5,200 Total minimum guarantee obligations $ 5,200 $ 5,200 Weighted-average remaining contractual term (in years) 2.4 2.6 |
Schedule of Remaining Expected Future Minimum Guarantee Obligations | The following are the Company’s remaining expected future payments of minimum guarantee obligations as of March 31, 2022: Year Ending December 31, Minimum Guarantee Remainder of 2022 $ 5,200 2023 — 2024 — 2025 — 2026 — Total $ 5,200 |
Future Minimum Rental Commitments | The Company’s future minimum rental commitments as of March 31, 2022, are as follows: Year Ending December 31, Minimum Rental Remaining 2022 $ 3,042 2023 4,415 2024 4,349 2025 2,598 2026 and thereafter 3,485 Total $ 17,889 |
STOCKHOLDERS_ EQUITY (Tables)
STOCKHOLDERS’ EQUITY (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Summary of Changes in Accumulated Other Comprehensive Income | The following tables shows a summary of changes in accumulated other comprehensive income: Currency Total Accumulated Balance as of December 31, 2021 $ 393 $ 393 Foreign currency translation (6) (6) Balance as of March 31, 2022 $ 387 $ 387 Currency Total Accumulated Balance as of December 31, 2020 $ 481 $ 481 Foreign currency translation (296) (296) Balance as of March 31, 2021 $ 185 $ 185 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Stock-based Compensation Expense | The following table summarizes stock-based compensation expense that the Company recorded in income (loss) from operations for the periods shown: Three Months Ended March 31, 2022 2021 Selling and marketing $ 319 $ 21 General and administrative 3,149 383 Research and development 3,400 496 Stock-based compensation expense $ 6,868 $ 900 Capitalized stock-based compensation $ 1,101 $ 209 |
Summary of Stock Option Activity | The following is a summary of stock option activity for time-based and performance-based options for the three months ended March 31, 2022 (in thousands, except weighted-average exercise price and remaining term): No. of Weighted-Average Weighted-Average Aggregate Outstanding - December 31, 2021 14,749 $ 0.85 Granted — — Exercised (113) 1.15 Forfeited (85) 2.06 Expired (64) 1.74 Outstanding - March 31, 2022 14,487 0.84 6.0 $ 58,490 Unvested - March 31, 2022 3,141 0.85 7.3 12,803 Exercisable - March 31, 2022 11,346 0.83 5.6 45,687 |
Summary of Restricted Stock Units Activity | The following is a summary of RSU activity for the three months ended March 31, 2022: No. of Outstanding - December 31, 2021 — Granted 7,871 Vested (160) Forfeited (21) Outstanding - March 31, 2022 7,690 |
NET (LOSS) INCOME PER SHARE (Ta
NET (LOSS) INCOME PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule Basic and Diluted Net Income Attributable to Common Stockholders | The following table sets forth the computation of basic and diluted net (loss) income attributable to Class A and Class B common stockholders per share (in thousands except per share data): Three Months Ended March 31, 2022 Three Months Ended March 31, 2021 Class A Class B Class A Class B Numerator Net (loss) income attributable to common stockholders – basic $ (21,992) $ (3,220) $ 4,721 $ 1,197 Potential dilutive effect of stock options — — 72 (72) Net (loss) income attributable to common stockholders – diluted $ (21,992) $ (3,220) $ 4,793 $ 1,125 Denominator Weighted average shares of common stock outstanding - basic 110,207 16,130 74,832 18,977 Potential dilutive effect of stock options — — 14,220 1,922 Weighted average shares of common stock outstanding - diluted 110,207 16,130 89,052 20,899 Net (loss) income attributable to common stockholders per share Basic $ (0.20) $ (0.20) $ 0.06 $ 0.06 Diluted $ (0.20) $ (0.20) $ 0.05 $ 0.05 |
Schedule of Excluded Securities from Computation of Diluted Net Income Per Share | The following equity awards outstanding at the end of each period presented have been excluded from the computation of diluted net (loss) income per share of common stock for the periods presented due to their anti-dilutive effect: Three Months Ended March 31, 2022 2021 Stock options 14,486 206 RSUs 7,690 — Public Warrants 7,175 — Private Warrants 3,821 — Earnout Shares 15,000 — 48,172 206 |
BACKGROUND AND BASIS OF PRESE_2
BACKGROUND AND BASIS OF PRESENTATION (Details) | 3 Months Ended |
Mar. 31, 2022segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Operating segments | 1 |
Reportable segments | 1 |
RELATED-PARTY TRANSACTIONS - Su
RELATED-PARTY TRANSACTIONS - Summary of Balance Sheet Assets and Liabilities from Related Parties (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Related Party Transaction [Line Items] | ||
Intangibles, net | $ 17,068 | $ 18,755 |
MGM | Marketing Agreement | ||
Related Party Transaction [Line Items] | ||
Intangibles, net | $ 1,000 | $ 1,000 |
RELATED-PARTY TRANSACTIONS - Na
RELATED-PARTY TRANSACTIONS - Narrative (Details) - USD ($) shares in Millions | Oct. 30, 2020 | Jul. 31, 2012 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 |
Related Party Transaction [Line Items] | |||||
Revenues recognized from related parties | $ 0 | $ 0 | |||
MGM | MGM | |||||
Related Party Transaction [Line Items] | |||||
Common stock, shares outstanding (shares) | 16.6 | 16.6 | |||
MGM | MGM | Marketing Agreement | |||||
Related Party Transaction [Line Items] | |||||
Initial term | 1 year | ||||
Renewal term | 2 years | ||||
Automatic nonperformance renewal term | 1 year | ||||
Automatic nonperformance, non-exclusive renewal term | 1 year | ||||
Shares issued (shares) | 19.2 | ||||
Percent of common stock issued | 10.00% | ||||
Related parties liabilities | $ 20,000,000 | $ 0 | |||
MGM | MGM | MGM Amendment | |||||
Related Party Transaction [Line Items] | |||||
Payment term | 2 years | ||||
Reinvestment | $ 20,000,000 | ||||
Agreed private placement | 50,000,000 | ||||
Equity contribution in settlement of liability | $ 20,000,000 |
RECEIVABLES - Schedule Receivab
RECEIVABLES - Schedule Receivables (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Receivables [Abstract] | ||
Trade receivables | $ 20,731 | $ 20,540 |
Other receivables | 251 | 153 |
Total receivables | $ 20,982 | $ 20,693 |
RECEIVABLES - Narrative (Detail
RECEIVABLES - Narrative (Details) - USD ($) | Nov. 22, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 |
Receivables [Abstract] | ||||
Allowance for doubtful accounts | $ 0 | $ 0 | ||
Licenses | ||||
Concentration Risk [Line Items] | ||||
Payment on conditions | $ 13,000,000 | 13,000,000 | ||
Licenses | Subject to Satisfaction of Certain Conditions | ||||
Concentration Risk [Line Items] | ||||
Payment on conditions | $ 8,000,000 | 8,000,000 | ||
Notes Receivable | ||||
Concentration Risk [Line Items] | ||||
Maximum amount of loss | $ 9,300,000 | |||
Customer concentration | Total receivables | Apple, Inc. | ||||
Concentration Risk [Line Items] | ||||
Concentration percentage | 41.30% | 43.00% | ||
Customer concentration | Total receivables | Google, Inc. | ||||
Concentration Risk [Line Items] | ||||
Concentration percentage | 33.00% | 34.60% |
FAIR VALUE MEASUREMENT - Financ
FAIR VALUE MEASUREMENT - Financial Assets not Measured at Fair Value on a Recurring Basis (Details) - Nonrecurring - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | $ 9,322 | $ 11,399 |
Carrying Value | Level 3 | Receivables | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes receivable | 72 | 8 |
Carrying Value | Level 3 | Other long-term assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes receivable | 1,250 | 3,391 |
Prepaid expenses - non-current | 8,000 | 8,000 |
Estimated Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 9,322 | 11,399 |
Estimated Fair Value | Level 3 | Receivables | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes receivable | 72 | 8 |
Estimated Fair Value | Level 3 | Other long-term assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes receivable | 1,250 | 3,391 |
Prepaid expenses - non-current | $ 8,000 | $ 8,000 |
FAIR VALUE MEASUREMENT - Liabil
FAIR VALUE MEASUREMENT - Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial liabilities | $ 9,237 | $ 6,521 |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial liabilities | 9,237 | 6,521 |
Recurring | Public Warrants | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Warrants | 6,027 | 4,255 |
Recurring | Private Warrants | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Warrants | 3,210 | 2,266 |
Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial liabilities | 6,027 | 4,255 |
Recurring | Level 1 | Public Warrants | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Warrants | 6,027 | 4,255 |
Recurring | Level 1 | Private Warrants | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Warrants | 0 | 0 |
Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial liabilities | 3,210 | 2,266 |
Recurring | Level 2 | Public Warrants | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Warrants | 0 | 0 |
Recurring | Level 2 | Private Warrants | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Warrants | 3,210 | 2,266 |
Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial liabilities | 0 | 0 |
Recurring | Level 3 | Public Warrants | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Warrants | 0 | 0 |
Recurring | Level 3 | Private Warrants | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Warrants | $ 0 | $ 0 |
PROPERTY AND EQUIPMENT, NET - P
PROPERTY AND EQUIPMENT, NET - Property, and Equipment, net (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 21,002 | $ 18,517 |
Less: accumulated depreciation | (13,887) | (13,228) |
Total property and equipment, net | 7,115 | 5,289 |
Computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 8,943 | 8,819 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 6,496 | 6,310 |
Purchased software | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 2,352 | 542 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 2,300 | 2,125 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 911 | $ 721 |
PROPERTY AND EQUIPMENT, NET - N
PROPERTY AND EQUIPMENT, NET - Narrative (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 800,000 | $ 700,000 |
Impairment charges or write-offs | $ 0 | $ 0 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, net | $ 7,115 | $ 5,289 |
United States | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, net | 3,281 | 1,672 |
EMEA | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, net | 2,916 | 2,813 |
All other countries | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, net | $ 918 | $ 804 |
INTERNAL-USE SOFTWARE, NET - In
INTERNAL-USE SOFTWARE, NET - Internal-use Software, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Research and Development [Abstract] | ||
Internal-use software | $ 128,487 | $ 130,942 |
Less: accumulated amortization | (92,865) | (87,675) |
Total internal-use software, net | $ 35,622 | $ 43,267 |
INTERNAL-USE SOFTWARE, NET - Na
INTERNAL-USE SOFTWARE, NET - Narrative (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Research and Development [Abstract] | ||
Capitalized internal-use software development costs | $ 6,600,000 | $ 6,900,000 |
Amortization expense | 5,900,000 | 5,200,000 |
Asset impairments | $ 8,353,000 | $ 0 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Narrative (Details) - USD ($) | Nov. 22, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Goodwill | $ 5,059,000 | $ 5,059,000 | ||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization | 1,700,000 | $ 100,000 | ||
Impairment charges | $ 0 | 0 | ||
Licenses | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Payment on conditions | $ 13,000,000 | 13,000,000 | ||
Licenses | Subject to Satisfaction of Certain Conditions | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Payment on conditions | $ 8,000,000 | 8,000,000 | ||
Additional payment (up to) | $ 34,000,000 | $ 34,000,000 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangible assets, Gross Carrying Amount | $ 20,240 | $ 20,240 |
Amortizable intangible assets, Accumulated Amortization | (4,172) | (2,485) |
Amortizable intangible assets, Net Carrying Amount | 16,068 | 17,755 |
Indefinite-lived Intangible Assets [Line Items] | ||
Total intangible assets, Gross Carrying Amount | 21,240 | 21,240 |
Total intangible assets, Net Carrying Amount | 17,068 | 18,755 |
Marketing Agreement with a related party | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Nonamortizable intangible assets | 1,000 | 1,000 |
Licenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangible assets, Gross Carrying Amount | 19,000 | 19,000 |
Amortizable intangible assets, Accumulated Amortization | (2,932) | (1,245) |
Amortizable intangible assets, Net Carrying Amount | 16,068 | 17,755 |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangible assets, Gross Carrying Amount | 1,240 | 1,240 |
Amortizable intangible assets, Accumulated Amortization | (1,240) | (1,240) |
Amortizable intangible assets, Net Carrying Amount | $ 0 | $ 0 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS - Schedule of Estimated Annual Amortization Expense (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remaining 2022 | $ 5,059 | |
2023 | 6,645 | |
2024 | 4,364 | |
2025 | 0 | |
2026 | 0 | |
Amortizable intangible assets, Net Carrying Amount | $ 16,068 | $ 17,755 |
WARRANT LIABILITIES (Details)
WARRANT LIABILITIES (Details) - USD ($) $ / shares in Units, $ in Millions | Apr. 01, 2022 | Jun. 21, 2021 | Mar. 31, 2022 |
Public Warrants | |||
Class of Warrant or Right [Line Items] | |||
Warrants outstanding (shares) | 7,200,000 | 7,200,000 | |
Warrant to share conversion (shares) | 1 | ||
Redemption price (USD per share) | $ 11.50 | ||
Warrants expiration term | 5 years | ||
Redemption price (USD per share) | $ 0.01 | ||
Minimum days notice to redeem | 30 days | ||
Threshold stock price for warrant redemption (USD per share) | $ 18 | ||
Threshold trading days | 20 days | ||
Threshold consecutive trading days | 30 days | ||
Days before redemption notice | 3 days | ||
Private Warrants | |||
Class of Warrant or Right [Line Items] | |||
Warrants outstanding (shares) | 3,800,000 | 3,800,000 | |
Subsequent Event | |||
Class of Warrant or Right [Line Items] | |||
Common stock, par value (USD per share) | $ 0.0001 | ||
Subsequent Event | Private Warrants | |||
Class of Warrant or Right [Line Items] | |||
Redemption price (USD per share) | 0.90 | ||
Subsequent Event | Offer to Purchase | Public Warrants | |||
Class of Warrant or Right [Line Items] | |||
Redemption price (USD per share) | 1 | ||
Subsequent Event | Offer to Purchase | Private Warrants | |||
Class of Warrant or Right [Line Items] | |||
Redemption price (USD per share) | 1 | ||
Subsequent Event | Tender Offer | Public Warrants | |||
Class of Warrant or Right [Line Items] | |||
Redemption price (USD per share) | $ 0.90 | ||
Subsequent Event | Scenario, Plan | |||
Class of Warrant or Right [Line Items] | |||
Payment of any fees, expenses and other related amounts incurred | $ 11.9 | ||
Subsequent Event | Scenario, Plan | Tender Offer | |||
Class of Warrant or Right [Line Items] | |||
Purchase price, percentage | 10.00% |
ACCRUED LIABILITIES - Schedule
ACCRUED LIABILITIES - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Payables and Accruals [Abstract] | ||
Accrued payroll and vacation | $ 5,626 | $ 5,696 |
Minimum guarantee liability | 5,200 | 5,200 |
Other accruals | 5,943 | 4,703 |
Accrued liabilities | $ 16,769 | $ 15,599 |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Net revenues | $ 70,451,000 | $ 74,097,000 | |
Contract assets | 0 | $ 0 | |
United States | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 62,103,000 | 64,074,000 | |
All other countries | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 8,348,000 | 10,023,000 | |
Virtual currency (over time) | Over time | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 65,935,000 | 73,226,000 | |
Advertising (point in time) | Point in time | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 4,075,000 | 871,000 | |
Other revenue (point in time) | Point in time | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | $ 441,000 | $ 0 |
LONG-TERM DEBT (Details)
LONG-TERM DEBT (Details) | Jun. 24, 2021USD ($) | Mar. 27, 2020USD ($) |
Revolver | Credit Agreement | ||
Line of Credit Facility [Line Items] | ||
Expiration period | 5 years | |
Maximum borrowing amount | $ 75,000,000 | |
Maximum net leverage ratio | 3.50 | |
Maximum net leverage ratio for material acquisitions | 4 | |
Minimum fixed charge coverage ratio | 1.25 | |
Debt issuance costs capitalized | $ 700,000 | |
Revolver | Credit Agreement | Eurodollar | ||
Line of Credit Facility [Line Items] | ||
Applicable margin | 2.50% | |
Applicable floor margin | 0.00% | |
Revolver | Credit Agreement | Alternate Base Rate | ||
Line of Credit Facility [Line Items] | ||
Applicable margin | 1.50% | |
Applicable floor margin | 1.00% | |
Letters of credit | SVB | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing amount | $ 3,000,000 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense (benefit) | $ (7,835) | $ (1,348) |
Effective tax rate | (45.10%) | 18.50% |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Schedule of Minimum Guaranteed Obligations (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Commitments and Contingencies Disclosure [Abstract] | ||
Minimum guarantee liability - current | $ 5,200 | $ 5,200 |
Total minimum guarantee obligations | $ 5,200 | $ 5,200 |
Weighted-average remaining contractual term (in years) | 2 years 4 months 24 days | 2 years 7 months 6 days |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Schedule of Remaining Expected Future Minimum Guarantee Obligations (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Commitments and Contingencies Disclosure [Abstract] | ||
Remainder of 2022 | $ 5,200 | |
2023 | 0 | |
2024 | 0 | |
2025 | 0 | |
2026 | 0 | |
Total minimum guarantee obligations | $ 5,200 | $ 5,200 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES - Narrative (Details) ₪ in Millions, $ in Millions | Nov. 22, 2021USD ($) | May 31, 2021ILS (₪) | Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($) | Feb. 25, 2022 | Aug. 12, 2021 |
Lessee, Lease, Description [Line Items] | |||||||
Rental expense | $ 1.1 | $ 1.2 | |||||
Licenses | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Payment on conditions | $ 13 | $ 13 | |||||
Licenses | Subject to Satisfaction of Certain Conditions | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Payment on conditions | $ 8 | 8 | |||||
Additional contingent payment | $ 34 | $ 34 | |||||
Contingent consideration payment | $ 8 | ||||||
TeamSava and other related parties | Pending litigation | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Damages sought | ₪ | ₪ 27.3 | ||||||
Shareholder Class Action | Pending litigation | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Share price decrease percentage | 5.00% | 13.00% | |||||
Minimum | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Lease renewal option periods | 2 years | ||||||
Maximum | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Lease renewal option periods | 5 years |
COMMITMENTS AND CONTINGENCIES_4
COMMITMENTS AND CONTINGENCIES - Future Minimum Rental Commitments (Details) $ in Thousands | Mar. 31, 2022USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Remaining 2022 | $ 3,042 |
2023 | 4,415 |
2024 | 4,349 |
2025 | 2,598 |
2026 and thereafter | 3,485 |
Total | $ 17,889 |
STOCKHOLDERS_ EQUITY - Narrativ
STOCKHOLDERS’ EQUITY - Narrative (Details) $ in Millions | Nov. 10, 2021USD ($) | Jun. 21, 2021 | Mar. 31, 2022voteshares | Dec. 31, 2021shares |
Class of Stock [Line Items] | ||||
Recapitalization exchange ratio | 0.233 | |||
Share conversion factor | 1 | |||
Ownership conversion trigger percent | 20.00% | |||
Founder's death anniversary trigger | 9 months | |||
Stock repurchase program (up to) | $ | $ 50 | |||
Stock repurchase program period | 12 months | |||
Class A common stock | ||||
Class of Stock [Line Items] | ||||
Common stock, shares authorized (shares) | 2,000,000,000 | 2,000,000,000 | ||
Common stock, shares issued (shares) | 110,339,000 | 110,066,000 | ||
Common stock, shares outstanding (shares) | 110,339,000 | 110,066,000 | ||
Votes per share | vote | 1 | |||
Class B common stock | ||||
Class of Stock [Line Items] | ||||
Common stock, shares authorized (shares) | 25,000,000 | 25,000,000 | ||
Common stock, shares issued (shares) | 16,130,000 | 16,130,000 | ||
Common stock, shares outstanding (shares) | 16,130,000 | 16,130,000 | ||
Votes per share | vote | 20 |
STOCKHOLDERS_ EQUITY - Summary
STOCKHOLDERS’ EQUITY - Summary of Changes in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | $ 303,467 | $ 96,079 |
Foreign currency translation | (6) | (296) |
Ending balance | 286,348 | 103,618 |
Currency Translation Adjustment | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 393 | 481 |
Foreign currency translation | (6) | (296) |
Ending balance | 387 | 185 |
Total Accumulated Other Comprehensive Income | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 393 | 481 |
Foreign currency translation | (6) | (296) |
Ending balance | $ 387 | $ 185 |
STOCK-BASED COMPENSATION - Narr
STOCK-BASED COMPENSATION - Narrative (Details) shares in Thousands, $ in Millions | Jun. 21, 2021 | Mar. 31, 2022USD ($)subsidiaryshares | Mar. 31, 2021USD ($) |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Number of plans | subsidiary | 2 | ||
Recapitalization exchange ratio | 0.233 | ||
Stock options | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total unrecognized compensation expense, option | $ | $ 4.9 | ||
Remaining average period cost expected to be recognized over | 1 year 4 months 24 days | ||
The total intrinsic value of stock options exercised | $ | $ 0.4 | $ 4.9 | |
RSUs | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total unrecognized compensation expense, option | $ | $ 26 | ||
Remaining average period cost expected to be recognized over | 2 years 7 months 6 days | ||
Granted (shares) | shares | 7,871 | ||
Vested (shares) | shares | (160) | ||
RSUs | Minimum | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Vesting period | 3 years | ||
RSUs | Maximum | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Vesting period | 4 years | ||
2021 Plan | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Maximum annual increase | 5.00% | ||
Stock reserved for issuance (shares) | shares | 15,700 | ||
2021 Plan | Stock options | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Maximum term | 10 years | ||
2021 Plan | Stock options | Minimum | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Vesting period | 3 years | ||
2021 Plan | Stock options | Maximum | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Vesting period | 4 years |
STOCK-BASED COMPENSATION - Summ
STOCK-BASED COMPENSATION - Summary of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | $ 6,868 | $ 900 |
Capitalized stock-based compensation | 1,101 | 209 |
Selling and marketing | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | 319 | 21 |
General and administrative | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | 3,149 | 383 |
Research and development | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | $ 3,400 | $ 496 |
STOCK-BASED COMPENSATION - Su_2
STOCK-BASED COMPENSATION - Summary of Stock Option Activity (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended |
Mar. 31, 2022USD ($)$ / sharesshares | |
No. of Options | |
Beginning balance outstanding (shares) | shares | 14,749 |
Granted (shares) | shares | 0 |
Exercised (shares) | shares | (113) |
Forfeited (shares) | shares | (85) |
Expired (shares) | shares | (64) |
Ending balance outstanding (shares) | shares | 14,487 |
Unvested (shares) | shares | 3,141 |
Exercisable (shares) | shares | 11,346 |
Weighted-Average Exercise Price | |
Beginning balance outstanding (USD per share) | $ / shares | $ 0.85 |
Granted (USD per share) | $ / shares | 0 |
Exercised (USD per share) | $ / shares | 1.15 |
Forfeited (USD per share) | $ / shares | 2.06 |
Expired (USD per share) | $ / shares | 1.74 |
Ending balance outstanding (USD per share) | $ / shares | 0.84 |
Unvested (USD per share) | $ / shares | 0.85 |
Exercisable (USD per share) | $ / shares | $ 0.83 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |
Outstanding - Weighted-Average Remaining Term (in Years) | 6 years |
Unvested - Weighted-Average Remaining Term (in Years) | 7 years 3 months 18 days |
Exercisable - Weighted-Average Remaining Term (in Years) | 5 years 7 months 6 days |
Outstanding - Aggregate Intrinsic Value | $ | $ 58,490 |
Unvested - Aggregate Intrinsic Value | $ | 12,803 |
Exercisable - Aggregate Intrinsic Value | $ | $ 45,687 |
STOCK-BASED COMPENSATION - Su_3
STOCK-BASED COMPENSATION - Summary of Restricted Stock Units Activity (Details) - RSUs shares in Thousands | 3 Months Ended |
Mar. 31, 2022shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Beginning balance outstanding (shares) | 0 |
Granted (shares) | 7,871 |
Vested (shares) | (160) |
Forfeiture (shares) | (21) |
Ending balance outstanding (shares) | 7,690 |
NET (LOSS) INCOME PER SHARE - S
NET (LOSS) INCOME PER SHARE - Schedule Basic and Diluted Net Income Attributable to Common Stockholders (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Numerator | ||
Net (loss) income attributable to common stockholders – basic | $ (25,212) | $ 5,918 |
Denominator | ||
Weighted average shares of common stock outstanding - basic (shares) | 126,337 | 93,809 |
Weighted average shares of common stock outstanding - diluted (shares) | 126,337 | 109,951 |
Net (loss) income attributable to common stockholders per share | ||
Basic (USD per share) | $ (0.20) | $ 0.06 |
Diluted (USD per share) | $ (0.20) | $ 0.05 |
Class A common stock | ||
Numerator | ||
Net (loss) income attributable to common stockholders – basic | $ (21,992) | $ 4,721 |
Potential dilutive effect of stock options | 0 | 72 |
Net (loss) income attributable to common stockholders – diluted | $ (21,992) | $ 4,793 |
Denominator | ||
Weighted average shares of common stock outstanding - basic (shares) | 110,207 | 74,832 |
Potential dilutive effect of stock options (shares) | 0 | 14,220 |
Weighted average shares of common stock outstanding - diluted (shares) | 110,207 | 89,052 |
Net (loss) income attributable to common stockholders per share | ||
Basic (USD per share) | $ (0.20) | $ 0.06 |
Diluted (USD per share) | $ (0.20) | $ 0.05 |
Class B common stock | ||
Numerator | ||
Net (loss) income attributable to common stockholders – basic | $ (3,220) | $ 1,197 |
Potential dilutive effect of stock options | 0 | (72) |
Net (loss) income attributable to common stockholders – diluted | $ (3,220) | $ 1,125 |
Denominator | ||
Weighted average shares of common stock outstanding - basic (shares) | 16,130 | 18,977 |
Potential dilutive effect of stock options (shares) | 0 | 1,922 |
Weighted average shares of common stock outstanding - diluted (shares) | 16,130 | 20,899 |
Net (loss) income attributable to common stockholders per share | ||
Basic (USD per share) | $ (0.20) | $ 0.06 |
Diluted (USD per share) | $ (0.20) | $ 0.05 |
NET (LOSS) INCOME PER SHARE -_2
NET (LOSS) INCOME PER SHARE - Schedule of Excluded Securities from Computation of Diluted Net Income Per Share (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities | 48,172 | 206 |
Stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities | 14,486 | 206 |
RSUs | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities | 7,690 | 0 |
Public Warrants | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities | 7,175 | 0 |
Private Warrants | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities | 3,821 | 0 |
Earnout Shares | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities | 15,000 | 0 |