Earnings call transcript Q4 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning and thank you for standing by. Welcome to the SciPlay Fourth Quarter and Full-Year 2022 Earnings Conference Call. At this time, all participants are in listen-only mode. Please be advised that today's conference is being recorded.

I'd like to hand the conference over to your speaker today, Robert Weiner, Vice President, Investor Relations, SciPlay Corporation. ahead. go Please

Robert Weiner

and operator, everyone. Thank good you, morning,

followed today's full-year XXXX we as are outlook will Josh discuss me and period. performance, CFO. will and quarter our be which XXXX, O'Quinn, fourth Wilson, our for a financial today well question-and-answer With During as call, by Daniel results Interim CEO; operating and

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

For and our our filings to regarding more and SEC. earnings the information these uncertainties, please with yesterday risks release issued refer

in-app and financial most each certain as also We be in the purchases including a will website. release A on non-GAAP section our measures, non-GAAP our GAAP well each comparable description found the reconciliation of to performance in non-GAAP measure earnings on indicators, of measure key can discuss measure only. directly which based Investors are as

As call sciplay.com. webcast Investors is this A of in replay archived be will of conference reminder, our website section this being at recorded. a the

to over to Now, the I'm Josh. turn pleased call

Josh Wilson

very everyone. happy with morning, be I'm Good today. you to

record us and and spark multi-year are KPIs by how journey teams extremely we're outpace going is propelled have of I'm in quarter market providing get SciPlay a we aligned on passion accomplished. our the vision and on the proud resulted to what fourth to most in digital we full-year. guided where entertainment and going This there. the to are know both we our to engaging world's the by play experiences. We

industry to achieve to enabled us dynamics performance XXXX. and adapt in execution successfully ability strong and Our strong have navigate

amazing We are motivated maximize shareholders on extremely value. and win for delivering to innovative, players focused our experiences and and agile,

results. some for Now key

execution, revenue This top-line and focused to talented our remain First, fueled challenging by results, we fourth We product our industry-leading innovate. industry full-year. backdrop roadmap. this the growing the our was and as our achieved XX% data-driven despite continue XX% for the impressive live and in delivered growth quarter, teams ops,

a our the of and revenue performance. payers our monthly of underscoring quality per Second, records, including number earnings payer our we achieved growing average

robust $XXX million for generative generated nature flow the This our cash high we demonstrates Third, full-year. of of the business. cash

shareholders four, February program. And have of as stock we $XX.X through repurchase our to returned million our XX,

We again. the post are to strong outperform confident combined that and strong will with our growth drive market multiple foundation, gains initiatives, us

quarter demonstrated a the Now generated with performance let's at our records multiple results look take evergreen industry-leading by and We franchises our closer record QX. fourth strong leading in delivered QX. we attained revenue way;

including estimated social KPIs grew year-over-year. have games and than achieved our year-over-year, have record casino of declined $X.XX, social grew XX.X% and more while conversion to QX, ARPDAU of casino industry we the In XX% X%, is which by payer XX%

and & XXXX, fastest of Eilers social the on the January that. developers to estimated we XX top report year" cited game casino the tracker in in fourth did Krejcik achieve of "standout performer SciPlay quarter, just growth Based the was game as published of

of now We growth since XX% in have SciPlay's Our was the have payers grown payers our history. QX driven XX% payers by to by performance perspective, longer-term XXXX. and provide most in year-over-year,

invested and to have continue We so. will in our games, do we

our success. roadmaps franchises SciPlay's fueled product go-to-market approach and execute players. best evergreen our differentiated strength deliver our our to to on we As the of The possible entertainment have

social one a and as of the QX capping Jackpot casino was Here Eilers smashed record day year. are is game. game Party Krejcik listed single just ranked revenue U.S. a by handful The a record, record number examples. quarter now our &

games became officially the growing in one in of SciPlay's game revenue portfolio. Slots It the is fastest second Hit Quick million social $XXX casino.

re-imagined player our design, features driving from benefited increased is strategy. Casino innovative are economy, by and new live and content which XX momentum ops engagement. adding features, new Goldfish Fortunes a And gaining

SciPlay result, outperformed a XXXX. social the As entire casino market in

Let me repeat this.

As XXXX. outperformed in casino result, entire market social SciPlay a the

been accomplishments innovation, capabilities have of powered a investments. by and combination Our

platform, have and technology, talent We runway success. both a form for and unparalleled a scalable deep current long-term that

engine analytics us and solution drivers that our In develop of engine expertise best one wide our an of to innovative today. of data aiding team The industry and our became is portfolio. XXXX, in the SciPlay combined led and tech, The in range ad winning knowledge performance success. across science solutions. game UA real-time have our and optimized optimizations main We implemented of it a SciPlay provides

Our of decipher developed behavior. global player complex that team analytics breakdown and deployed algorithms

Our execute industry-leading growth. monetization unsurpassed use Data us with are strategies. to live conversion, driving increased teams retention player analytics ops and and player behaviors, These consistently drive science enable engagement. develop together and

data player revenue strategies. advertising to lifetime noticeable sources, valuable continued several insights maximize technology predictive player generation return. and user learnings predictive made improve tailored employed by analytics, value. that behavioral experiences and by tools players drive our higher ad and SciPlay to capabilities quality. in-game evolve insights data We the driven with that strategies focuses integrated patterns predictive custom We analytics approach. and have on advancements exclusive detecting combining These their improved team modeling player We data-driven that boost multiple tech with implemented on our

to the future. turn Now, let's

As strong multiple has into XXXX, drivers. with growth momentum we SciPlay propel

our We will scale, to continue evolve, and franchises. grow

closing growth to their of and drivers In money gap our spend. payer base, enable innovation, be will the capabilities to engagement the the combination peers. investments our ARPDAU main our increase essence, amount of and Our time, players us our continue with will will

roadmap product evergreen franchises. our evolving are data-driven robust Our

our insights the economies about want, drive solutions them. proprietary Our the and that provide players, features valuable tech they

our accessible we franchises & as new events, continue library. to evolve Wonder's content and We Light features, extensive IP implement from

our every with players create long-term relationship platform, engaging higher our new to monetization which produce to teams margin push deepen launch reduce These and expansion. ops recent for costs, events and players live high us drive results LTVs, Our our day. the direct-to-consumer allows acquisition

and is and XXXX team's together in SciPlay's XXXX. cemented success to win. execution dedication, our our our our passion strong to in continuing consistent ability culture, deliver values Our expertise, by

truly team leveled XXXX. year. had Thank around an the you global world, SciPlayers we Our amazing in up

I'll to close We and our growth. confident by the business execution overall social in SciPlay's outperform plan team's continued model market strong take and strength the in XXXX. I'm saying share of casino and

pleased over I'm to Now, turn the to Daniel. call

Daniel O'Quinn

morning, everyone, Thanks, you today. Josh. us Good and for joining thank

plan for full-year bottom the top SciPlay line. outstanding a achieved results. in and financial We out both presented XXXX of with carried last the beginning our year was our and great for year targets QX

for our capabilities the We we invested and core our in future. reinforced foundation

focused the navigating industry executing have prouder so accomplished. energy achieve be while why agile, able to what are successfully records. dynamics, I roadmaps. our Their of product were unparalleled, innovation many Our all-time we're they're reason and teams and couldn't teams our and

Our success enabled market. us to the make casino outgrowing leap in a significantly social competitive

key highlights. for Now, some

and adapting delivered in while QX marketed full-year our franchises we a to performance environment. strong by financial several First, evergreen all-time team's innovating SciPlay our records, the and propelled challenging and execution. achieved exceptional

earnings sequentially Second, had year, payers, momentum and the of we quarter of grew ARPDAU quality record and underscoring a each performance. our number which the during record we

growth technologies investments Third, including of to and long-term plans. targeted business, in strengthen strategic SciPlay our make segments talent proprietary continued to further key our

XX% in a repurchase February We $XXX million cash continued XXXX, or operating repurchased through roughly our generating to XX. program $XX under flow high Four, be and robust business. delivered SciPlay share million cash of

setting Now, generated million up $XXX let's quarter all-time of million, of fourth XX% sequentially. get strong revenue record. an an the grew record, some and year-over-year into $XXX details. X% We also all-time of revenue XX% Full-year

significantly Our social casino the grew and is the X% full-year. to quarter that in XX% full-year. This both and quarter fourth for games estimated outperformed the in the decline fourth market X%

net margin of for $XXX of million. $XX generated full-year We net income quarter and fourth income million XX%

SciPlay earnings for and to per fourth $X.XX for the was full-year. Diluted quarter share attributable the $X.XX

XX% our XX% grew while fourth moved with marketing was line $XXX margin year, and top-line by $XX to QX. slightly innovation strong in we We our while margin in million a XX% results up quarter was of for EBITDA our of as target. the fueled QX EBITDA the past million, EBITDA our EBITDA spend achieving

value. we faster CAGR and profitability with XX% invested pace, talent, same much a of engine, XX% our at our the to in revenue platform As tech, XXXX, EBITDA grown drive over SciPlay a at CAGR period. Since ad and an long-term the DTC we've

a to let's turn indicators of our grew some records. achieved Now, we the the saw quarter, key and a number in In year. performance fourth year-over-year we record increases quarter to fourth payers throughout for we XX% where the payers

to achieve continue and in $X.XX to XXth close $XX record marks year. content increase our quarter engaging of $XX great with to XX% $XX. all per gap us of revenue consecutive record as QX enabled of consistently approximately paying our average This translated year-over-year, we a above ability the in user and QX, an the monthly near peers. Our This in ARPDAU to deliver

rate and the the full-year, of in also records. We all-time fourth achieved XX.X% a payer quarter X.X% conversion both in

KPIs initiatives, Our underscoring our capabilities, loyalty. player the best-in-class benefits product of the key throughout and robust our year built live ops roadmap,

at the Jackpot had conversion our higher a profitability over XXXX. a example, the grown rate CAGR last are and downloaded Like growth, an retention who peer CAGR XX% at period. XX% has As engaged same players XXXX over our years, before Party during while five ARPDAU long-term more and grew revenue

value. growth, combined cash faster flow, key Now, cash is AEBITDA, let's of strong to is shareholder efficient strong are believe great The generative. cash thing turn and revenue drivers business flow. our highly We growth with in

included we generated State Matter. for cash in the $XXX which operating $XX.X million flow, Washington For payment XXXX, million

a enabling to free have flow. flow We expenditures convert minimal into percentage operating capital us of high cash cash

shareholder to the had excess cash of strength year total million. ended with million and increasing of capital $XXX flexibility We financial deploy and drive to liquidity $XXX We strong liquidity the value. in

Now, some me allocation. capital take let to discuss time

we ensure see shareholder a an growth monetization and make that our and to consider and hires And opportunities. But an Aqua capabilities. organically financial data-driven in we employ enhance engagement profitable to investments these We We approach to include returns. our we'll well rigor opportunities on small targeted where are with developers as opportunity continue investments these game with eye also best-in-class invest the our see and value. driving business inorganic to as

of We flow the combination also organic shareholder believe value. to enhancing strong cash is generation growth, fundamental

in two-year of months. our authorized To Board or authorization date, XX million XXXX. repurchase program share $XX we've XX% the $XX roughly repurchased million a this Accordingly, in

QX me campaigns XXXX. and in Let about casino in marketing today XXXX comments innovation in deliver seasonality speak our take spin the that campaign O'Connell and happen this to and ran QX. This of We're the first campaign we the January last continue year From call. see innovation The shareholder continue the Quick into successful QX opportunity started for February well-positioned year a discussed value. most my in spin in year. Jerry highly will quarter. will to we close be social share standpoint, impacted in and ahead The Hit will

In than high-level. global executing a team SciPlayers more of XXX summary, our is at

continued We and have and growth determined a we're highly strong motivated. for foundation

passion the win. have to We

you. the the Thank now, And I'll call take operator and your to we'll questions. turn over

Operator

Thank Instructions]. you. Well, session. question-and-answer the begin [Operator I'll

question go Please be Eric ahead. Sachs. will Goldman Sheridan, First from

Eric Sheridan

would for from a you've we Thanks an marketing making of terms ROIs two, you remarks. on about the can competitors the idiosyncratically built, internally, from taking all ability the possibly standpoint. acquisition user of to part of so what some and the of thinking ROI from the the back the in market come I or be you're marketing in about comments to to detail sector. then That and outgrow much should Josh, company broader about thanks thinking platform the in way much a one. build And update repositioning were standpoint? gaming the of and prepared any how the the number what want away outearn quantification and the Both be competitive advantage question for you

last new the You've lot months, months. XX XX and time spent trying of a experimenting avenues in

curious Thanks we update there to an and guys. for out so So beyond? much look as XXXX

Josh Wilson

lot, a It's you to great Yes. Thanks today. Eric. talk to

major a as and about our create into team, profile. team a on data tech it doubled We for entire to we that capabilities. our how could UA our to be on We knew growth down down more not player coming investment needed whole. We us, did We we are that. doubled ad XXXX be proud using

for value chasing mainly that that, on mal. Our and ahead We're returns, do their the continue will outperform because retargeting spending is we everyone of in that others chasing it's way our philosophy two money, believe for dollar. We getting are team with about just up else. us really new really And not We're our the and reasons, UA sustainable every tools leveled that not our installs. to most keeping games. built team

entire been chasing the are it's this thinks And to But We shareholder. just way, side, not these our UA this returns. games it's value get the also able we've team themselves. since for

implementation some in our the engines, look entire focus good XXXX. LTV running just the and significantly increase we continues SciPlay the Our really XXXX. reorganization in on We've games heightened And games. more live it across to really, portfolio through of of our almost the been to did, able

So that last is ROI. to I intend is This we think honestly question Everything hit spot the think do how do. way everything I we an we was of ROI.

wanting at of So how do it whether them we how if anywhere keep every we of how is job. really show or play XXXX we to money, of being into what maximize ecosystem. And doing by look look can results instead playing we think we user the a bring not spend do and we're good what it's to how spend our us we anything, the And go experience entertained to else. can we at time, I

Operator

you. Thank

question be go Next will Please Crum, from ahead. Drew Stifel.

Drew Crum

Okay. Thanks. morning. good Hey guys,

So for expectations you for question. your That's XXXX. in campaigns What Josh, remarks some first does EBITDA terms paying trend there? maybe for margin where paying in like around your investments and Dan, historically users quarter for to bit sequential That anything metric of then, have the see XQ in timing the XXXX? anticipate translate part little a ticked just XQ should slipped addressed of in And for relative XQ. past marketing early of the prepared And growth the that over typically to ended up we a in seasonal line higher a users XQ, sequential Thanks. versus basis similar you looked noteworthy on XXXX? this it you

Daniel O'Quinn

of lot before We're QX to after when for went make we into a informed we going -- then reason campaign. but guidance have said throughout is standpoint, In we XXXX. we QX, ongoing as from have just we most Yes. innovation. and wanted margins and started that We've XXXX with I campaigns QX will the some to those marketing Thanks yes, kind of O'Connell Jerry scale QX sure the everybody come XXXX, from of give that that's And the question, a the the to throughout that move spin guided down year. our we like kind the Drew. in QX had we learned

Josh Wilson

Thanks, I'm this to Yes. like is, on, going of piggyback we're Daniel. a what back lot into for really And looks seasonality mobile video games.

But years, Daniel in looked couple bit. threw a what said. of kind again. always highest For cost a kind COVID quarter, us the -- off as cost returns the the are is and it little there most effective UA like traditionally really of first

become slightly. QX campaign, little expensive. So a then we're down then And about. bit that just more spending come in also all and in more costs QX a innovation talked UA the would we also which We expect little marketing QX Daniel know to and bit

will point, stepping a Daniel's order the whole we down, where to as will step we for get up margin. to QX end but continue we up to full-year in So

over QX the For would users, been and I them up, but ramp up game to reason year we year. we once we were the it's them always payer, time. to year past, paying able ramp up is interesting ramp continuing consistently keep has consistently in we where maintain a created And because were all we the the in say them able all to them spend them

individual in was didn't we had games because as of that well, the focus the did as able a because happen not really all payers converting have percentage been we at on far reason step-up QX it's run of continuing in were already to year. a is individuals we So as didn't large to wallets The the one such QX thing high build. the

individuals. more so we payers, valuable to but we the at became same a as payers were the the the whole And as payers, time, had grow able

similar payer. year, of the at is very coming to run we're is point, a to users if up per more will I'm come more compared your to revenue the we of payers. valuable look it's the quarter, in down back we increase seasonality, of daily that more of a Now holidays the why very, because that because just This in Normally, which is in that people time the with are that monthly UA. all what there. coming this XXXX. increased rate The see UA, are average February of this we into But is fourth in pleased very December we little the we went are very at actually QX were extremely people Most and game. and yes, ends see

ends is about the a really, half you encouraging really up basically, year the December month because being our being of ends as This of know for up month because seasonality us holidays.

be more proud performing now. how and games our So could not teams of right our are how

Operator

you. Thank

question Matthew be Next Thornton, will Truist. Please ahead. go from

Matthew Thornton

kind focus I've first time UA how widening Thanks that around I questions. environment Hey, dipping when maybe how happen. trending into follow-up. into about of funnel the just from UA, to is a in then you it which and happen, here. from Josh. monetize your -- payer any might for -- about how how any commentary that UA thinking the you conversion DAUs, think And about timing about top again one, back one shift XQ to still touch think widening that got Good perspective, do building MAUs, and green morning, the you widening might toe broader Josh, start the maybe monetization ARPDAU and of of question or good kind XQ, shoots relatedly, for taking guess And the I guess, Daniel. go is off guess prior morning, I

Josh Wilson

good Okay. Excellent. Matthew. talking you. to It's Thanks,

what elevate is UA confident very, has would looks returns about the now way team their better spend it We've because which done just UA growth in those to good normally is But QX than it enabled the right really would've But going is so comp the our think year. throughout see performing very we seen QX, returns, extremely well to QX encouraging to does. compared good we're to to continue to I UA, more but very QX. a QX. that's feel QX

diverse learned to buckets, continue push here us about campaigns more showing really at some that our able IDFA. find used users But on as to again, platform. much order so test in on we it announced QX. great far increase our way not open UA and do continue As are us and innovation Daniel enact anything struggles of to entire been and macro testing with talked of that shift be as different type by going in us with to users a have the of group make they up we has hoping like the now. from where is game the campaign enabled to in. on right also we the tools the have to we were environment everyone able to were innovation strength spend point spoiler, goes, buckets, We've still of innovation last our that this on is We're as year that to to This the these campaign Apple some Apple enabled it building now, different results. that innovation knows, bucket But

and that proud KPIs next for went, the innovated, and -- tell into company. our going team then that's found more dig not to innovated, for earning be how to could our but be found going something I innovated, the of call, meaningful aren't We

spend conversion dollar going company ever ROI. we're being ever think ultimately about to away don't get is payer we from because every I a

we're itself. Like, valuable ARPDAU gap talking times. day. how ecosystem payer we were there, this into that talked turn it's about three-year the in for we other converting to get is at close three-year we're the we you so have that X.X% non-payers that looking And for payers So once company about you how going a we're sorry, we've do us, our many day -- or in just you and a

can ways MAU year through keep or years. I and franchises It'll new through a won't do be still increasing our places there. looking avenues our the core that but throughout of today. think where coming next some likely at the be bring in significantly over we're we retention at potential Most users cheaper it finding price,

get grow, you us the network gives to then where a So SciPlay but we Matthew. said cross follow-up, the promote also I Then ability needed. you total to think had

Matthew Thornton

actually transition follow-up quick One provided good and think a there. you Yes. I

we of titles the how so think curious You those. about pipeline, didn't should in the about talk some I'm

and Solitaire not performed Spinner soft about in how mistaken. think curious then and Spell I was launch to think monetization tests. if kind think was how had I'm that title of I'm those I approaching

queue. how So again, launch there, full those titles, update findings jump then in any early Josh. timing I'll and back think on Thanks, any to about the on

Josh Wilson

yes. yes, Matthew. Thanks, Yes,

So very, core I are the want what company. in what the to these it our the think is what the These new is the are make foundation the now. core this driving reason that right actual you didn't that are to we of is our growth; payers. driving are -- focus hear main itself These is everyone franchises very script them clear

ways monetization Sci round baked at, a which still XX-day because wait sources, of we of new bringing new while games, with, testing. the call Now cohorts. portfolio. get looking is expanding we now It basically until got we what revenue the takes is to to second testing, new marketing are in we

has will challenging, basically it more and bit are marketing little a bit ones you to IAP been QX, I that the we've a that clarity some little ups especially downs with have end, focus. seen until So on to new probably information admit until one, month a wait because games hoping and more in

MVP we test. great a push. we technology really continues feel through, to Spinner We technical did Spell the test. did the We go side, about From did the game.

long-term out and as in March. far launch, have take little we're more which traffic. and a step, to core Now, making that there, what bit will find test based tweaks back the if that we you that we're and sustainable a need going be to marketability something information to going to go sometime loop. also the not we and on go thing build next it has And back Hoping sure simple we'll want to we something a to ability is, in sure be say, game. simple promise loop okay, ready we as or long-term the the is launch doing game to market, then say, we're okay, we player soft taking to The -- we're game is that make core make launch additive I that to that has that's to a the to delivers but just sustainability amazing entire experience. SciPlay portfolio, We

it's It's by it main just still line. -- trying haven't of means. our to finish the any company. the off But we taken we those eye are not over focus So the get

Operator

you. Thank

Karnovsky, Next ahead. will go Please JPMorgan. be from David question

David Karnovsky

you. thank Hi,

in the past, on hyper-casual if that of see had for any commentary reoriented deprecation thinking QX. and and mean And Android you've you're to in kind the scaling the Alictus be context, how to additional first, what that of could GAID games I guess noted pipeline. in Just wanted you then you there's about risk studio

Josh Wilson

sorry, was in super Master on. a David. integrating They to It successful continue which XD, Alictus be going. Photoshop two I'll is our we're more companies. Okay. the very, very -- talented super -- we team Yes. the Thanks, Hold of and that's XD, is here. be released did QX pressed this still with and more more -- more Fade year. them, which and right

the needed order saw also revenue We Google more of as get a made there more to sustainability. changes into a in we've mixed technical the

continue some taken hey, have what do a we At in we studio to of can order time, the do there. out than we backwards cleaning we has up more games? see the step same the little said, to games need out bit hyper-causal find just and small of pure retention Now that more a

in core with are On of kind with -- and a, QX, game are the early very around leadership see it an coming evergreen this some of very, of we're really hoping they're came always that focusing nature really plan it the in to and So top up that there. in XXX, simple we're the they there's studio QX. the them call amazing fruits hyper call loops

So wait can't more information. to share

the that's assets happening, just automate have their tech built We're get highest technology while allows to we that the ad But waterfalls already also it them that acquisition, they've amazing starting from and to purely and that the work together company users, We're new into building users as talking about starting we technology. or integrate new as games. bringing our when companies one to finding start two ecosystem just around eCPMs. great

So been fantastic. the integration has

and Google's as they've growth working be changes for changes, is to able coming. of Google in marketing our our far ahead really As curve Google -- is the in especially are the hand has been Israel, team, located hand been basically that and which team with in Israel hub the one of the

spent very But of Overall, call marketing. Google to them. Google It mainly is is do its we'll it say, privacy; we're worried ability on parties. money through for the is privacy because challenges third not majority not creating deprecating just

expecting Alictus changes impact or okay, major this broader not we're the And at major there. So any not -- we all to SciPlay expect in business XXXX.

Operator

Thank you.

next Lee, question be Please go Our ahead. Macquarie. will from Aaron

Aaron Lee

curious, to content? different thanks cross been content my & you on place congrats seeing for guys, anything momentum. Wanted while in now. about are Light Wonder Thanks. or of in outperformance I'm terms platform talk velocity the and the questions taking just strategy has of given content slot the a for the around and that Hey the innovation

Josh Wilson

Aaron. lot, a Thanks Yes.

quality we year. mean, working together June of May, but last been about we've brain has innovation, -- been to since -- the really I caused call we've and it across is together this I has becoming roadmaps improving it caused pulling continue of thought So started comes really the when roadmaps our one machines. to of think all thinking it not only And this social. It's when also

yesterday. ideas about the top just bringing some Wonder's to our them, group is made coming & give to has the the up very, talked that and very investments then from players. content like Matt the And in coming are Light combined some able but talent also we're that amazing output that as leveled

Now we help content continue where every data are much seeing of And being best-in-class best-in-class data helping SciPlay more But that & not two type Light to is passed the the speed content we're only decisions make monetization not providing is day, quite improved between side. the still yet Wonder but at the to only the our us better what are on side, we're of us all companies point the monetization of coming. going is not that users. teams our and this seeing but help

Aaron Lee

want made earlier awesome. three-year able convert non-payers. And That's on I to comment the about Great. to being then maybe touch you

Just of do the more curious predictive able it were Is games talking that? a you function about? were your to analytics or of you how of some

Josh Wilson

Yes.

So I would of everything. it's a say quality

their or maintain one is is If of engagement largest really that that adding to a new ecosystem we're causing order to need it game conversions are purchase And we in willing feature we're over from that them games some behavior. is pay player type they type their play. in. today time. of them ecosystems play is the increase evolve inside to that just new is sits our drives or release in And loop of seeing this where And we're able not eventually, more the come as to when their causes feature increase this that So to time. that because the ecosystem, some

educated each buy inside the individual get need player job in where looking combining And about with tech then and situation monetization on of game is to get, especially side more really game. more ad our in the player our from learnings teams We're now of our live the putting for more through we the to on that team. of are teams behaviors, data and and a doing science let's and fantastic adjusting them call analytics the player we're that, really our is more the getting and it, they that what our ops top our meta behavior fine-tuned order

day, all the of SciPlay are are quality this of of end that people the the it's the working at for happen. making that So

Operator

you. Thank

Stanley. will Cost, question be Please Our from go ahead. Matthew next Morgan

Matthew Cost

have Great. I for taking my questions. Thanks two.

That's spend market, in-app stage On the you a recovery broader in of in the like Are gaming of hangover first this any expect seeing totally And now broadly. early the you Do market are for have the this of are year? the evidence question. and to IDFA money in market the a year. willingness COVID you kind to consumers' the worst mentioned purchases you like of an we what maybe will sort us? mobile market the that of market, the on expectation outgrow terms hangover grow behind that

a next The quarter, was for than expect the which fourth second year? for little spend of marketing just the to should kind run rate we year of similar like is middle lower the be bit to Thank the you.

Josh Wilson

Yes.

Okay.

and of going I'll recovery. I'll but Apple and to really of kind adapted I So between market would of go will change. here with because it dynamics that whatever and different of whole recovery I a to of say It's balance do start XXXX, of a we're market think the different probably everything ahead of does I went these, rates. market I'll start answer a at new it the changed all is to until or and kind started wouldn't -- it's shift interesting kind companies this IDFA. the XXXX, with to norm But back couple us into half say kind the at it

have of us, players. the and on able impact in to have able we new one bring business going So first large that were to impact current we're to large a were that understand on our how was for a IDFA companies

really We to did everything we focus. was said helped back do do? and where we that a And today. This to what players our games main need we and said drive in we to XXXX. step a born, of be lot different. engine our focus our this took have on the payers and this So we SciPlay And the is need needs

to then is growth team, At so our that that to time, need it UA And different. ahead our take money, that investments market continue, we team to the understood think at this but about that, ad something the and in why made same has and used where our we not shifted of And were at this tech market they we team, that, because the how the has point, ASO spending a we the step is redefined look be. that is market redefined able for it is much that to else. okay, everyone we of

companies to did reason. we once multiple for as move do in industry games well way environment this the whole most doing we'll really forward all believe new then through games to adapt multiple continue at like market that have continue just even It a But mobile was and we did. XXXX, well. didn't to will the had Now that the really, I

And did as so see that you Daniel, --? want of do as we far hope goes. to glimmers

Daniel O'Quinn

Yes.

the we really They see what market look they seeing definitely to continuing could have these kind for the we're we of that puts In at we there. market, have throughout flat the like and to of XXXX, terms kind outpace that momentum feel Eilers down. as kind we're year. of estimates out we move believe What of

Josh Wilson

rate from the that expect XXXX. very And of I what be I I are look wouldn't say about spend what thinking would is because is you're lower us for is this total at spend a say spend, the But is marketing I the and challenges similar into XXXX into to would there. year-over-year think normally because QX marketing marketing when run QX QX

Operator

Thank you.

Group. Next Please Capital ahead. go question be from Ryan will Craig-Hallum Sigdahl,

Ryan Sigdahl

needed kind the morning, guys. the taking then year how throughout investment guess, Good on I for, in potentially year for the think how you our of throughout about Curious the ramps on there DTC, Thanks that fundamentals? expectations questions. and

Josh Wilson

worked the work everything, actually or it are Yes. kind starting first; for to some excited. call that way we're step throughput continues make of sure should, we see through let's so it couple thought a overall back, DTC, testing We well. into And last that get our to everything market back now the sure exactly it. take testing to going we We reanalyze, go weeks. the make are of the over did player experience game sub of they once

thought I mainly think would right be we line, because we now a I right say said, we little get we're took we do I are a actual would that processor than but that the thought it than over have into little that I bit is DTC, -- now our And to originally bit testing. longer would payment all with done. market further like now

a of very, to to assuming time but spending little we're of going are, we're what we're both probably here, from the Then behaving start, going about crawling. that of Since those expect bit then test going we're they good, say to spending somewhere really kind mid-March-ish. I going we're to So are second lose analyzing I'd spend right our them healthy would run major a again, now, people games them. our in then it's I'd and talking where who are rather very have evaluate

to So slowly start we're going moving people.

we're very it's way So we about to originally be going going say see is three on I movement where the because some it but planned small being. behind to you're months would XXXX, in probably

Ryan Sigdahl

into that's kind year a those move from in this set the Then that just QX? you secondly, to there QX that have do of year? if And learnings plan if QX be that add throughout any marketing only of the more potential ROIC to any then curious spend of or at the you and innovation or Great. campaign, this point made or the will is decision on user metrics

Josh Wilson

last mean year, yes. You

having the since very to our So we're is do is now And when cost to it. at looking and the the QX, fight we it major very, through tell happy at so next its media to it, able did. do we lowest when let right and innovation, is in overspend were were we me get still reason -- going it's innovation, back Apple without to

are as as we the at performing. well, is where we've cost. of it, well some the evaluating right look we this have getting at Yes, it's And -- it of in is right about kind now users as as especially our points performing UA

right opportunities, more will where ROI we have we're given don't And on a invest the now, continue any it any is to we set as but so that day. if dynamic anything have in it. change can business We is,

evaluate we So as just we go.

year, you reaction campaigns, things. campaign; the three one the taught Last America's I'd and seeing one. us campaign; the taught NASCAR NASCAR of Got different start ran, the Williams us that major we of ran right Each event, we Wendy Talent immediacy then in an away. call us

super on brand that customers AGT action, Wendy engagement really learned from us day but large is also your everyday at what communication with it. then You great to not their know the get may does you not our X:XX and the Williams, returns, being branding make as difference, and but we you branding work a a market having having get And for downside. taught changes that every tailored but well. p.m. everyday an their a players changes affinity learned the is

went that And team entire Noga, into we So changes bring become our how growth do Tomer, why the those entire took what of all that reason learnings, and into plan. our Yaron, a will all put is the believe we together I team staple customers is Jerry this new of this new large these O'Connell a and gaming. it

Ryan Sigdahl

guys. the Helpful. Good luck, Congrats on performance.

Operator

Thank you.

will be Omar of Dessouky, Next ahead. from Please Bank America. question go

Omar Dessouky

Josh, Hi taking thanks for my question.

that, guys XXXX. So the of in to market I are assuming sort thanks be guess, that flat mentioning you for will down

Josh Wilson

Yes.

Omar Dessouky

recession would your would versus on to in same of as the -- assumptions wanted incomes assume I question are? the whether I That's recessionary that what that And if question, the the is payer were second the XXXX XXXX around fall or to then of the how real a spend hypothesis know first is, your a average what payers trend first average average have scenario. per in macroeconomic part question.

down would example, have be well per question in that expect payer Would So then for as if revenue the follow-up average real be And advertising. down year-on-year. I be a would incomes to on were you they payers XXXX? --

Josh Wilson

Okay. Thanks. Thanks, Omar.

So yes, let's one. the with start market

assuming we're they're that for if because be market year. in But you Krejcik, Eilers fix the has XXXX. is expecting at out this said this it to year reason the market major they've flat assuming come So look is no for the & and we're flat IDFA to that

the challenged. I is live with environment less think to do with the macro more to do is more it's user acquisition and

things to see whether challenged had not said, a year. in scale, performed going that were into the year. last We or portfolio very well it's we casino. last majority We do that larger year. casual games had expect or more of really with social well And our either of Now lot next

and a twofold. what and think out Like we of a look I economics average of $XX And or at from at making a course in expect people. not happens purchases expenditures As are one, month. game the that person the week it's type $X pulled the our as look throughout of get people broader it we see kind of to I

we look to able brought we're have I are data these of to we is multiple the are team And that hourly only have much across and to able we $X,XXX as and macro multiple one isn't access our did those the portfolio, what this to a trends the doing vacation, a Entertainment where money. going entire of things But happening of are but thing games back. games a in at like do at inside at was many not would company in because global imagine for games we so so vacation, role once. since all that we're they data to car, SciPlay normally off save of year this once. beginning look $XX,XXX what of at inside is this is kind and be magnitude costs thing kick the that that $XX,XXX net at

a So your slowing if people to days, week to sudden have number transaction payer see, where a times a course average information revenue are to games see a per once, move, get in wait or of months or of months we're we point, people it. per going going multiple couple of to to understand the purchase at lot down this all of of and if we

to. able that and to -- get make only to, we but going we're the to to business to shifts we're going we're because be make we're shifts game information, the entertainment not And to we able this able that need need also

very as not worth we that's it earlier, very for right something as So And two every that's a run that mentioned December. a we're that perform I us, into as the same normal actually going December weeks' feel rate February now, year. and to holidays confident in because XXXX of was well has sit

Omar Dessouky

you for Thank response. comprehensive that. a Okay. It's

curve. So is advertising, which second you buy maybe question LTV my in the of against, terms extended window on you the have

if like days I or XXX LTV curve as part your example, XXX-day the let's for has months? that. something user to, spending target. LTV which XX-day say, don't know, know, let's to How So of against or you I a don't were Have thinking say, or six the years two against, and last ago, over buy you you shifted acquisition, buying moved out changed

Josh Wilson

Yes.

-- if over we were made We that because don't And we months, I moving we held and to announce from our months of paybacks our that get did to six it. through months. year. LTV, change. stronger the of increased continue all nine the honestly, window from year, of last stronger remember LTVs, we've no at six last the you last So beginning

actually game did it We that XXXX. in portfolio, measure sorry, and they Party, people game payers our the spent back brought our than by money this all in more which or people XXXX games the games our really in Jackpot and our -- and in our years. in install XXXX XXXX

a of true lifetime. we as LTV the really think true, So

continue X do be The to of months bet market getting. great to case to we is months. But the but that type there's sense going we today. movement any makes we not whether or also we're where We're the constantly currently of far any I'm more there our we that or as we're expecting in returns confident right And evaluate hedge now happens. we honest, that not movement today We're type we're sure platform see payback, months. to feel from are happens that outperform nine to that it go about as XX concerned very, to going very making

Operator

[Operator you. Instructions]. Thank

Deutsche Please Bank. Our next from be Ben question ahead. Soff, will go

Ben Soff

per you two taking the up When Thanks. at was a revenue it this into levers similar was how then Hey I'm drivers thanks of the users think year, curious quite social growth more heading in if And be look paying -- And XXXX. paying I monthly or the for just will the were flat. and it about user think between casino those guys, question. of you two? bit, balance

Josh Wilson

Yes.

MPU, Why a diversifying per preference my honest, the I and portfolio into chance adding always monthly be more by is into I'm Because flat. more and by sustained revenue user payers MPU average that? rather the would grow adding being I'm growing revenue I'll is better if giving payers leave of ourselves portfolio my risk longer. So paying I'm

payers say first foremost. is definitely So and I

you If the payers your actually, of portfolio time. the spending. over that more our staying looked at But much looks it flat how out. because averages side, -- flat scale in higher-end increase from is average the so it to We're payers actually continue very many new bringing the very just

Ben Soff

on That’s that mean your it's are and for longer-term? it. then business early, still what might what alternative takes And the app but your Got stores helpful. potential just for curious

Josh Wilson

Yes.

store, and the communication with provider an but where first the just up being So payment one it, at to. number our the mean, them. end we're the is own thing looking we platform be that us, it the get DTC a the deeper it's foremost, day the know own player, I gives app also call relationship with and quite to get which I us ends for of to we'll not

store last. new I've would a don't evaluating want constantly you be are you every to new to I We learnings don't over world, had today's be app first it's -- that -- app say to in the but comes want is store out. time

basis team get gaining over in soon we're that see them to and we on, then pivot development as start the any So possibly on a order we can. we as anyone evaluating on weekly early momentum there

Google or But this like point. Apple new just share been from really big either not have being app are hasn't at we about. just, a talked you to stores know, taking There any new that

evaluating of watching it's being more So but just ready. and

Operator

back This session. over the I'd like for conference question-and-answer you. turn Josh to concludes Wilson to our closing Mr. remarks. Thank

Josh Wilson

thank Hey you.

We the passion believe and our to to our one are XXXX and performance commitments our play; our priority. reinforce spark world’s beyond our players plans number

on can to we we an digital look in amazing days. everyone, most XX to them laser-focused like to Have get forward experience with talk you you we the day, them, We that and will reporting and engaging are just soon.

Operator

Thank attending you. concluded. for Thank conference The today's presentation. you now has

disconnect. now may You

SciPlay (SCPL) 2 Mar 232022 Q4 Earnings call transcript