SCPL - Earnings call transcript Q4 2021

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Operator

0:05 Good day and thank you for standing by. Welcome to the SciPlay Fourth Quarter and Full Year 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today’s conference is being recorded. Instructions]. [Operator now Jim the of Bombassei, would your over Investor to today, speaker Senior like I conference hand to Relations. X:XX Vice President ahead. go Please

James Bombassei

X:XX everyone. Thank good you, and operator morning,

we performance followed O’Quinn. a and call, During are fourth this With by discuss Interim Josh results operating XXXX Wilson question-and-answer quarter and today's and full will me year morning period. our Daniel CFO,

certain XXXX. Private contain and involve call include the during discussed Reform that could will that materially actual risks under statements to Securities today These Act cause of Our statements forward-looking Litigation the differ call. statements those uncertainties results from

financial and more will Investor of sciplay.com. a reference used me a meant website. over recorded. your archived let of review earnings filings X:XX SEC. replay a and call our accompanying will reference as call this most risks Josh? as be results release slides non-GAAP this as following For X:XX facilitate to linked slides to earnings our A reconciliation with to and to Investor description supplemental also Also, our section to website. comparable release of found the the be be GAAP are non-GAAP We of the each the These Relations materials discuss yesterday, webcast refer website Section materials our were to company's on posted measure the turn and these Now our can the regarding document issued posted Investor call measure to call. our is reminder, the directly uncertainties, information non-GAAP this A in of certain our and measure at being measures. please in on our each conference on X:XX As well website be will

Josh Wilson

and Good Jim. for everyone, Thanks, morning, joining today. thanks X:XX

making on game global strategy are become developer. operationally, executing and firmly our progress financially a great strategically, We to diversified

is acceleration and the of quickly the our lay had core I of quarter to capital that we market. ever, engagement. We We posted year the revenue revenue full strong number expansion all business a monetization business fueled a for quarter our foundation and the core $XXX full and record achieved year by X:XX the second grow in further highlight. year to want the firing As an in all-time highest successes million, and Our X% full of We revenue up high year-over-year. cylinders. on

fourth including engagement quarter monthly Project strategic outperforming Our Our the record grew casino metrics, paying key the like revenue market. user and Conversion sequentially, initiatives monetization Payer and X% quarter. record in in resulted year-over-year X:XX X% per average and social All-Star revenue

X%, of flow XXXX. second grew extremely continue generating quarter to portfolio focus games it line is Party Consecutive Goldfish, up cash was in net Record on XX%, operating a ever. was the Importantly, highest the and on million quarter strong Fourth Jackpot sequential well. quarter revenue basis, Our for Hit $XXX Quick bottom performing Xth its of X:XX and making we

Business, further players. Our to contributing are experience the core performance ability Casino improving strong our meaningfully initiatives the strategic monetize in All-Star Social player Project our and to like

We Adventure are Pets yesterday's in Solitaire the of quarter. rapidly launch worldwide announcement expanding of in Alictus and of our the casual fourth acquisition with

driving ad and progress that building go great the let's the a We company diversified core what a our is mobile strategy capability, growing advancing business, into strong are market. making our studio of be operationally entry Now pipeline success. X:XX are to global game games and with we new into

data user live our science continued investments have the Business live service including acquisition. we to made as our Casino in have ops, from We and core we our benefit strategic Social refine capabilities,

return once, a the strategically One that player tailored for better content the driving are Project in and on we features engagement. with and resources, refine the these critical performance. delivering and our reaches drives All-Star add catalyst the the increased By of a been game X:XX What game base segmenting has scale, experience All-Star having our key seeing on resources initiatives game, further we Project investment. our strong their to preferences

are in game time spend task long-term We our like collectibles, engagement increasing managers on features our rail adding and players new media game. to albums, getting player the more the and in

Project and and data catalyst the been a us helping what the play our anticipate analytics next. analyzes exceptional want games. largest deliver of player for behavior, growth X:XX Our All-Star to they capabilities has

We have monetization been player levels. to able continue record to engagement, to leading increase

Jackpot sequentially, record grow Quick key to XXXX, All-Star, from and year revenue quarter levels successfully for and the in increasing released We XXXX. record payer its Hit been to fourth have Fish metrics benefiting revenue Project also Party, which are X:XX was record in X% generating able Gold revenue taking

and diversifying and centralized including where growth meta, as expanding players' $XX and us million, developer that across learn attractive fit US Over latest game, Social our the in This our of further whether significantly games. first engagement casual, in X casual, long-term the Alictus, time, what us Engine each we Alictus portfolio is analytics This our is we productizing X:XX platform Casino. subgenres science, base have the team which next App the lifetime about features play it's core player's engage our that the DAU of initiative, XX more opportunities. entry games global scales and and revenue ad engagement, live and implemented casual. the information data the thread diversifying rapidly and X:XX tools our Engine mobile features, each continues has to as data enhanced events, strength. to preferences player capabilities promotional use casual this social games acquisition with behavior. live can achieved also different acquisition ops, then X user both Across use players' which and player use capability X:XX international we advertising number and that core the and X enabling whether social to across in our preferences. seamlessly whether our fast-growing to behaviors, acquisition common these enhanced events capabilities network, games, cross we We SciPlay Users simple social published the into same this well engagement optimize acquisition, monetization enhanced demographics creating by streams. and as services and engagement a it's billion advancing leverage X:XX opportunity developed that to scales tech game our they in build social driven and games, best throughout Alictus to house as are or which a casual, understand global our our a We games, it's in each users has predictive deliver of earlier our for game, provide drive portfolio This match scale Store. core million, We player of as advance to and With us games, the broadens similar revenue and analytics, expand party began game puzzle monetization player extensive capabilities and across We anticipate year, expanding their the adjacency are profitable by capabilities iOS those allowing our is we in our Top player. further with or by predictive casual and will will that X.X wants SciPlay and game increasing Active a by is retention play. or tier the and player retention be value. player to natural enhancing deeper our the to better chart-topping This features proven casual of growing the Solitaire casino, our game and network. Alictus Free Monthly with our

payment excited the are This universes SciPlay to the incentivizes a to capture opportunity business leverage share the management the value. minimizes enhance of the upfront a and acquisition larger and We casual about targeted the Alictus talented and smart profitably shareholder market. that is to grow player

the a the per rounds day, near is nearly high with new per it are progress – day launch our with XX of December, Pet to Players in made on start which engagement. pets user X very Adventure every about also using with off to great play We make average, increases Solitaire we game's they and features. improvement

focus initiative, casual to tremendous games experience We on with developing we is are X, Finland of in casual fresh And progress great initiative. game our party delivering The the new that Project game the are Project track launch X on for future. half content second studio spearheading will XXXX. this setting up the and first SciPlay has making team also XX:XX casual our with

but simple, We ambitious. is one-of-a-kind player want deliver games. experiences goal building to amazing Our through

casual we financial the expand advance and go results. we and to to in profitability capabilities, that growth it Daniel our for Daniel? I'll With shareholders. drive over our As turn XX:XX value and will our over enhance

Daniel O’Quinn

This another of strong you Thank year. to quarter way be solid A line was exciting top the great XX:XX finishing Josh. It's here. with growth. perfect

reflect sets the strong results for up continued on our and strategy execution XXXX. progress Our in financial well

our of line increase into and in $XX we earlier, company's revenues prior line, we quarterly XX% $XXX margin, initiatives year-over-year. AEBITDA million of In the $XXX success million quarter, in full second year, which a $XXX million, terms key revenues revenue was of like million, in record mentioned XX:XX for the highest of Josh reported AEBITDA of an the guidance. had demonstrating translating of As Project increase the the X% with year All-Star. full-year of with year top is history, the fourth generated This an over

social the casino from in Net $XX exceeded by Our fourth declined prior the percentage quarter sequential year. XX:XX $XX fourth growth income quarter million points. in the the million six in market

a charge Agreement. state fourth quarter of Washington $XX.X included XXXX results related the Settlement to Our million

the income Our to $XXX by fourth $XX decreased million, full-year million primarily charges quarter. driven incurred we in the net

million compared Our games XX to $XXX a incremental in Our which was results point and AEBITDA $XXX our increase $XX the investments million previous X% pipeline. increase was fourth quarter The AEBITDA basis in in for XX:XX AEBITDA for million, XX%, year. new reflect the talent, SciPlay and margin capabilities Engine year. XXXX are was the to prior over year-over-year new

while initiatives. organic results to in strong achieved have growth We invest continuing

very engagement in resulting are All-Star strong Project like and initiatives monetization. key Our

quarter new increase Our art of year-over-year. in quarter, in fourth increased paying an the monthly the user of significantly revenue $X.XX an record per Likewise, our XX% average a business compared $X $XX, record add fourth to to was quarter, fourth X.X% cash the XXXX. Furthermore, basis points, of in highly increase the rate our our conversion XXX XX:XX year-over-year generated. peer quarter remains reaching fourth a doubts

conversion flow generated operations million cash cash we $XXX of which rate $XXX flow XX%. year full in of into cash the translates from For free and million, free

balance squarely As it excited sheet, Alictus ended a this generating to strong. our for manner are adding portfolio, incentive our $XXX over and management's into million our strategy. ahead, We've We've to value. excited year transaction We efficient, value. Looking prior fits that is million year. of XXXX. cash, minimizing XX:XX the with aligned a $XX capital the incredibly significant about it upfront drive XX:XX remained shareholder increase payment we're also and structured We about in

had Our has we fundamentals, business our a great core business cylinders. all year firing with on amazing

XXXX expect casual to are addition, by all drive and to all will fuel segment. games. games year of Taking Alictus. we're of our this will targeted that This the we across a investment inclusive and Engine new XX%, grow into In of $XXX be million growth into expanding SciPlay revenues consideration, growth

the casino social XXXX. industry outperform in to expect We

This growth well in of compared growing points level the to will our continues we to fourth of above at of revenue the time opportune impact in new ad number is as on to With pre-pandemic return with players approximately the and it increasing have our invest business in the as we the in games from are monetization slight metrics the high. our quarter X basis the casual, believe in be Engine, to an XXX momentum on all-time AEBITDA margin our X spend engagement our months, XXXX. This SciPlay enhance by XXXX. expansion

we improve drive AEBITDA questions. value. Operator. this our in as margins to our with proud of your will in take growth They're XX:XX that, happy expect the With invest we're accomplishments off beginning accelerate we businesses in we to XXXX. strong very of shareholder future, anticipate our However, base core

Operator

XX:XX Thank Instructions]. you. [Operator

comes question first with Craig-Hallum. Ryan from Our Sigdahl

is line Your open.

Ryan Sigdahl

guys. XX:XX acquisition. Congrats Good morning, on the

Josh Wilson

Ryan. lot, a XX:XX Yeah. Thanks

Ryan Sigdahl

acquisition, business? XX:XX year Curious, you mentioned some caught much Alictus I this XX% a versus core -- how I of is including from think the that growth expected acquisition this growth

Josh Wilson

a XX:XX As you Ryan. lot, thanks know,

around And also would in looking -- casual is market, social of space they have been the the subgenres casual, been the which the the casino here through XX% we're in The Alictus, disclosed the about remaining and the year rest great of The remarks, of we overall. is for months come hypercasual expecting we're beat growing XX them. during talked which the a Alictus. As that has know, we're expecting You the And fastest X%. from only great remarks, to the growing a so space. business of is great one remaining we things

Ryan Sigdahl

XX:XX And, Josh, to – be the just clear,

Josh Wilson

Yes. XX:XX

Ryan Sigdahl

XX:XX X%, You with the the core than business expect grow at greater the to difference… industry

Josh Wilson

XX:XX Yes, sir.

Ryan Sigdahl

acquisition. the In XX:XX

Okay.

Josh Wilson

sir. Yes, XX:XX

Ryan Sigdahl

will to will just X million? of the to acquisition, relative the what – of kind of X-year high earnout [indiscernible] the metrics that unusual remaining a are terms XX:XX the What with terms then from such But And drive on that ownership. specific minority earnout? bit a

JoshWilson

XX:XX Yes.

deal very The how years. we're multiple. very able the at about in standard to very, are it's good keeping hit structure very X Turkey. business So the very very, actual deal. to very felt very if how is of We excited a companies the earnout, for were time, a It get getting. rate to they very structured structured. what current much But return the owners engaged market and their the becomes is long market We so towards the very, favorable pointed in us compared a period for very, is like

Ryan Sigdahl

to platform, across to XX:XX core all bring is SciPlay's players the so, about secondly to then opportunity and ad games Got in-app it. then that nonpayers that think their plan as that, if is just And targeted you the to expand today? or

Josh Wilson

Yes. XX:XX

technology It and that of are data-driven you extremely built job out normally, getting amazing they've the high The does eCPMs. say XXX% there very team bring their they So that running. when built is let system -- own first so me has very, is that an impressive.

not very of IAP As not do throughout you -- IAP. go think can we are who the the convert it is do ad rest people games look to would I evaluate [indiscernible] in to way they whether portfolio, the it or about that driven, and the our use

Ryan Sigdahl

luck, XX:XX the Good guys. over will it Helpful. to turn others. I Thanks.

Jim Bombassei

next XX:XX Operator, our question. Thanks, Ryan. we will take

Operator

XX:XX Our question from with comes next Soff Deutsche Bank. Benjamin

line is open. Your

Benjamin Soff

opportunity XX:XX to more Hey move social your question. gave casino see appreciate follow-up expertise for about the the the the space? talk was if bring a to to you And and got bit I casual Thanks. guys, into I've how you acquired wondering plan then in after you thanks the further specifically, on the you today. that leverage portfolio. all Definitely could capabilities casual additional a that. you And color call as

Josh Wilson

Benjamin. Great. Okay. lot, Thanks XX:XX a

So where great the with make to they next game able or the had All-Star, the that of it's basically to critical at a or live itself, simple live SciPlay that it thing ready is. learned it the platform decide all slot XX:XX on like. games making Project behavior news to thing Match tools available our SciPlay of the is, we any the the It game if learnings portfolio those much next events core great in features, care and ready and look So today a care or in of so a not make take ops, does the at resources. we that's look what the then the we're all portfolio. to invested takes -- a investment what X and scale, were our Engine X one day in Engine, The game in We inside is, were and machine and we've centralize our the the And with of these last successes we're years. investment over and puzzle should player able the game. were doesn't

game, them inside as we as we for. we and confident, of ever could noticed engagement are very that are seeing When be the Pets we have through seeing we're engaged Solitaire they So Adventure. hoped the in are very, this have

in it the to in will further casual also being able into a also be will platform by towards to way they'll order We slowly believe that move are, scale hypercasual, and hyper tech which tools ad in UA also. analytics come that we putting model, players into in the utilize as and Alictus, built their a the centralized a plug but engine

Benjamin Soff

those XX:XX Great. Project I the of is currently And strong scale And given but the Thanks. at quarter, guys think games that? then what of the guys plan percentage kind engine. I'm All-Star pretty observed monetization point that at where assume strong just on that other you that to you sort for games, wondering do to ROIs healthy revenue of up overtime, already become monetization are to to you do what bring within is get levels. can this

Josh Wilson

the growing do another Party Xth the SciPlay Hit Gold quarter-over-quarter, and Engine, is Yes. in year Yes. quarter-over-quarter, its row We very question. already earlier year revenue Gold to XX:XX record. we any it and growth investment technology are there, build we're in using We've centralize year. the are those X it our Project takes once rates other expect we'll portfolio, now to right time of Jackpot Record games Fish, full Consecutive Fish we're put out it Great it another investment that started does. able in another in this X% out, in like portfolio All-Star. what Quick These in the a similar and be will and to also games. games and Jackpot XX% into and Party, The Hit. full seeing XXX% Quick very, record. believe with by year evident record it we're making full our able on put

growth see ’XX and the work through it would happening to I We expect in year. beyond. on the expect to

Jim Bombassei

question. our will next take Operator, XX:XX we

Operator

XX:XX Our comes question with Karnovsky JPMorgan. from next David

Your open. line is

David Karnovsky

XX:XX thank you. Hi,

bit other or cross-sell games? the hypercasual some see of they ad a in the in on from monetization? Josh, And UA, you from development expand those the what over that Just think can transaction, follow-up growth Alictus. competitors just do to game just maybe may use space to of you then differentiates on the any a studio opportunity core players you terms given your

Josh Wilson

first, it a seen portfolio. million our things also that They Hey, the highest the not them a why They seen. overlap individuals on on going million ever I've so more and X basis extremely to they're than will and monthly almost items, they to $XX say growing as very them as constantly I put SciPlay X, Yeah. which I behave the X as allows start, what fastest-growing create hard share to faster excited could makes the how And last SciPlay culture positive believe is good have the to the move in Alictus. the core but market, platform a excited. to start taking developed we new we be substantially to us which fit know in test already able the should games the this in company -- LTV are they've games first It's David. cost that testing cross be, subgenre game to very way the now which look in years. many I'm market see We are know, They one low And demographic. cross game is thanks, XX:XX with in that market with, there is very less in about does $XX order any a in time then I've where culture day question casual. now. a that to the biggest hits will have process been why to predict is iOS cost development at number culture

David Karnovsky

Or XX:XX of longer-term only the from then, that's before I in wondering mentioned a some that gains. output hypercasual goal? transitioning that's Okay. just you also to something is casual I more And pipeline Josh, was thought of Alictus now? And if

Josh Wilson

XX:XX Yes.

So let's medium to call it long. a

a X. like kind of X, there's So

casual Engine casual. So now of the there's will be and lot Right then how ops will of player casual. hyper SciPlay can fast and the part will towards larger then engagement and that engine. use sub get we the because hypercasual, hyper, our up a there's moving live for genres and of there's are casual that that towards the they come work All running from tools

David Karnovsky

XX:XX Thank you.

Josh Wilson

XX:XX You’re welcome.

James Bombassei

next question. our take will we Operator, XX:XX

Operator

next Aaron XX:XX from Macquarie. question Our with Lee is

open. is line Your

Aaron Lee

good question. morning. taking my XX:XX for Hey, Thanks

and in again So And to the of Alictus I what of the of geographic portfolio? wanted is quickly. seasonality, real on Can the touch share does exposure your you Alictus current mirror it terms demographics currently users?

JoshWilson

XX:XX Yes.

are everywhere. They as our we US overlap Around throughout still over. They also. the the significantly based, and core that hit have what market all rest they of as it, XX world. of so far is around with So XX% pretty the rest but literally geographic, XX% demographics, of the installs the call call

of So hits it the X. kind

this quite because the games a IAP As more the the more rate it far it's the see comes throughout since as same year. worldwide. because seasonality, of not worldwide. The IAP entire US as games, steady it's much They goes it much seasonality a main lot of how is from of

Aaron Lee

we're Great, very comes of about is great not do think a a... like like sort inning helpful. Project think success it And continuous this thing, the improvement XX:XX right this has in? that guys. on it? All-Star, of When you Or this been a what more just And just initiative, get to is to you for way to seems then trying

Josh Wilson

know something, it you could start a game. you don't move because XX:XX you every I question. time That’s that It's inning I amazing funny. with as think mention new forward

investments games success a to centralizing such the we're all by company will now instead allow increase I one taking going and entire Project into at looking be doing with at and making we're we're our games a X once our X portfolio platform, largest time. right what one over small to I game it the going at All-Star of with us sport. everything years creating those how is, we've and new is, by what And them mean learnings that of redefine to last think had be the that to

Aaron Lee

XX:XX Perfect. you. Thank

James Bombassei

will we question. our Operator, next XX:XX take

Operator

question Our Truist from next Securities. is XX:XX Matthew with Thornton

is line open. Your

Matthew Thornton

yours, guys. below taking forward. would XX:XX margins Josh, look an synergies to margin you you couple identified Thanks their forward can Maybe on I I then got of revenue, -- important that then just part assume I've quick EBITDA you've you business my is gross some higher around And focus, Any whether will on color offer stop for Alictus, assume. of margin going rates, then just a given Hey, would ad morning, questions. since it's be Alictus, would one and that finally, maybe maybe there on? offer good the break Well, a growth that out I've going ad follow-up. but I obviously got the and follow-ups. can

Josh Wilson

XX:XX Matthew. Thanks lot, Okay. a

one me not handle at break whether this time. a let So kind – out. We're this how of or evaluating to break to

is. [indiscernible] how another, ad – or ad and IAP we will differentiate Somehow

will they but you are believe rate is We that market, hypercasual. the haven't fastest clarity said growing casual market answer, I is looking I growth there. that and will relatively of for company. Like landed and a inside of It the taking the high inside very on share we XXX% the soon, give hopefully, earlier, hypercasual you're

So exciting side, it very opportunity. from the a growth is

looking invest to speed of decrease expecting their are even But not growing further we're to we our of they are the in because side, significant studio, any margin bringing growth. margin the a and Alictus. up On young

Matthew Thornton

would to get characterize could. Solitaire trying follow-ups couple I just of is maybe in be, as I we its fully to think well. Pets, focus On And kind of it that tail continue guess, Thanks side, not That's web should is yet? there on and as rate? XX:XX to would kind sense fully perhaps and as expect again. stabilize the will of we now then of obviously web quick helpful has the on that thoughts if continue then should been monetization life business turned to helpful. a Or cycle? similarly, to Or I'm any Or does I kind mobile of run here? you just at And be off? know the where a

Josh Wilson

XX:XX Yes.

Okay.

questions. great So

yet. released super Solitaire are cycle game, the its started we game. super, marketing. the We life For early in We

We seeing with every customers, you engagement, get get amazing data. that game you new launch, you are as more more but

And so focused sure the only the right still we tens retention because metrics has in of on We're still – of not to the XX:XX as also millions us. adjusting total make for -- at getting in point, the to tweaking sorry, life game engagement, game, of that say, go we now, order economy X this franchise scale but we're needed the become want dollar week its blanked the [Technical Okay, on on it's it's I question would quick. the still So cycle. I just just started. real to Difficulty]

Sorry about that.

[Indiscernible] So the business.

that card Facebook, away. increase fee obviously. fee, will revenue are own direct-to-customer Do therefore, a SciPlay actually to that will spending That In and based. our So and is web Yes. be believe going and to be the we're seeing on I amount of release revenue that our I significantly we'll web our would a develop or actually platform, credit transactions build going as still the handle where Facebook Engine itself our own, platform. will think our we're But platform overall we platform. of out decline the web not of Apple [indiscernible] it with X part go There'll ways. over Android on time? we platform One is, based, is which the

James Bombassei

next will take we question. XX:XX Operator, our

Operator

Morgan Cost Matthew comes question XX:XX Stanley. Our from next with

Your open. line is

Matthew Cost

for here. guess taking Great. question. XX:XX I I X Thanks have the

X-month out target kind the X for call for that you So just payback guys, understand whole it, going made your period the payback history back public been a months, as the to from of to about a comment I as pushing you company. X period has certainly on

net drove So months? is to or Thank like you X that's I wider efficacy from problem in the to problem measurability there behind like impact you. the the kind was it follow-up. out? a an a quantifying cast for to need. the users guess you're pushing that push you that in volume caused macro order bringing have I period thinking of you to that X from What ad that sure make then perspective, you but profitability, were a basically factors a what of And out on Thank helpful, like

Josh Wilson

Yes. XX:XX

would it way. So I about this think actually

So confident able of All-Star, -- Not also long of the the this the months time, increase move to time. we aspect to the increase that over term return Project it. as the still X made and but more periods in good we or we X very be increased to more and were our only us value on a it months long from get invested And in revenue lifetime significantly users. tail of and would able

our cohorts did that we we it's If you the that – spent the you with XXXX. that in us deck, cohort deck brought see more that in Jackpot year, go we put money put see they slide you XXXX, the XXXX increased. in to and in, than Party in Each it's

very, little at years, to very okay, more So favorable a we to to starting these people at to expecting us giving willing people X X months a that for because maintain as, return. bit I'm bring XX in are look long-term we're for

Matthew Cost

just operations. then XX:XX That's your on And Got it. helpful. international

did your recent most Kiev it in of as out, in some had new say, there's and one a XX-K coming obviously, you think I Ukraine. operations

Josh Wilson

XX:XX Yes.

Matthew Cost

to there? elsewhere? the was they outsource I'm wondering, are what you operations -- XX:XX them been And Have disrupted? just impact able

Josh Wilson

question. the Thank XX:XX you Yes. for

first in mean, XX-some yes, foremost, people have and I we Kiev. around So

to Our there. hearts what is happening out go

make the we terrible safe, that up step. priority one this, normal go to things making our to happening we'll first we as materially make in able doing place are I to everything and then hopefully our but business to situation getting ending but just is before sure ensure sure concern it there. is the is life. just that We they're studio did would will for through, were there that they impact safety larger to nothing leading that this Really that can and major Our put be back soon a their

Matthew Cost

Thank Great. you. XX:XX

James Bombassei

XX:XX question please. Operator, next

Operator

Crum Stifel. Our Drew XX:XX question with is next from

open. Your line is

Andrew Crum

Any revenue. than this more managed well here less XXXX user discuss XQ, addressed the a notable And and you're core a And comments, XX:XX investments approaching I business? Thanks spend of then out? can your have morning. you Okay. for acquisition call in Good maybe follow-up. in of how around little again. trends during detail you'd kind but to Sales in you seem marketing at be XX%

Josh Wilson

midyear XX:XX marketing as to knows, the UA that happened Okay. side, digital the IDFA everyone From caused kind of all hiccup.

But way the better, far to all QX, like In quarter each itself, the continuing better. the it exactly as went progressed, of we iOS. are quarter as things better, improve each we had As cylinders. way were on year we new market felt to got firing as learn Things the quarter, inside we planned.

pillars. The see X as So I organic major as year, disruptions going talked no we continue at about, QX this of there. expect scale investment, of to to into kind looking

games see a increase The of X our and all Engine of have its we'll centralizing And player first that we running, our all producing next up portfolio entire then year. Once we're use games is SciPlay new to pushing the it, in is metrics. be to the games. X it expecting to able so of across and that

we this, building looking organic And be for As the an studios X out we would investment the games. at actually are in XXXX. there's the period major building investments start of these

Andrew Crum

year Daniel, target And but down had your big this given XX:XX EBITDA Very then year. helpful. the it. Thanks, the a suggested in goal follow-up improvement margin, all still mid-XXs adjusted the the is range. suggested and spend Previously, with Got company next Curious that's my Josh. more you the a step investment longer-term if acquisition. picture.

Josh Wilson

take this I'll and Drew. XX:XX go one, Yes. ahead

So for shareholders. that believe the best a cash-generative at our great growth they're We've we We're company. investments goal we're highly looking because – these had rates. investments our

bring we will So which in in the margin the said bring will we the believe down invest the we the slightly will, time, call, as forward return the revenue going growth and But future. over margin. up

those speed company our to that for growth see we're is at the time. most and look investment company, target revenue the to the any always become long-term them. Our super of But super efficient over can we ROI time evaluate we can going we

Andrew Crum

Thanks, it. Got Josh. XX:XX

James Bombassei

Thanks, question. Andrew. have time one Okay. we XX:XX for Operator, more

Operator

Our question with D.A. XX:XX Davidson. from comes Granda last Franco

open. line is Your

Franco Granda

perhaps development? new talked Will cash Alictus about with going with to game how morning, require the you talk flow Good me that you with it about that? existing would something offers? is in Can to incorporate Thanks Yes. do squeezing Or here. you're Alictus. on you everyone. difficulties Yes, XX:XX games the this model can come for

Josh Wilson

XX:XX Yes.

because had what the we're to was again, short-term once next So Alictus, some started their it's meta, and them core space, out. in They When the and they're our already creating amazing all planned simple live SciPlay Engine, the out. game putting centralize new the on games, able game future. coming working some at ops then But over in player out about understanding which hypercasual into hyper-casual years of years be question. to, to the all them we years I the simple to take time have to they'll in some hope that get build able forward order live events gotten your answer segmentation will will it and games. do the it to -- step in meta get learnings the and needed not

Franco Granda

guess Yes, I Thanks that I hoping better then that Will you Yes. one has. in-house. and these in-house solutions a someone something it advertising lot. And Were selling else more. use to the bit they be does. to developed Alictus little XX:XX solutions then guess…? to I was a understand

Josh Wilson

XX:XX Yes.

Franco Granda

talk XX:XX Can please? that, you just about

Josh Wilson

XX:XX Yes.

allowing the is data amazing. first-party very tailor is their own individual. everything proprietary to that seriously create So take each have much they that solution. networks to able all going and own They're data, to is them their built ad It from

will companies all during that the spend the will can stronger, one the of do is both make X between absolutely level find of the where integration, that bring things very companies things One technology capabilities. and is up this ad our first of will to out that we Alictus SciPlay the synergies

Franco Granda

to solutions? XX:XX Do And your the you'll scale How to that. quick size? a are scalable then follow-up you be able think into

Josh Wilson

It's technology. absolutely. all Yes, XX:XX

very hold millions way users. that built the platform they of is that a they've built would this hundreds of confident out were out, So

side not scale So about like worry have the is it no we the scale of of it.

Franco Granda

XX:XX All right. Great. Thanks.

James Bombassei

it XX:XX back final some over to Great. Thanks, Franco. comments. for Josh I'll turn

Josh Wilson

could that been progress. we're and more in momentum XXXX has about our our set, Now, thrilled baseline new not a be we excited about very, seeing that we are to proved business. the very XX:XX us

in businesses. of quarter results demonstrated strong our fourth strong momentum all the Our across

of XX% business. since the and per revenue average is engaging on result us our This Our monetizing core of increased day XXXX our a at CAGR players.

the We future. – are new now adding another new the acquisition our leg with of about the growth be launch Alictus. more Thank and We games excited you. of could not of launch with

James Bombassei

back joining everyone, operator. over the turn for I'll you, call. to the Thank Great. it XX:XX

Operator

XX:XX conference Thank concludes call. This you you. Thank today's for participating.

now may disconnect. You

SciPlay (SCPL) 2 Mar 222021 Q4 Earnings call transcript