PLTK - Earnings call transcript Q2 2021

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Operator

Welcome to the Playtika's Second Quarter 2021 Earnings Call. I would now like to turn the call over to David Niederman, Vice President, Investor Relations and Capital Markets.

David Niederman

Welcome to everyone, and thank you for joining us today for the second quarter 2021 earnings call for Playtika Holding Corp.

Joining me on the call today are Robert Antokol, Co-Founder and CEO of Playtika; and Craig Abrahams, Playtika's President and Chief Financial Officer. I'd like to remind you that today's discussion may contain forward-looking statements including but not limited to the company's anticipated future revenue and operating performance. control. comments are a uncertainties, subject which beyond other performance, of some and are rather but to our statements are guarantee not future of These risks and and These you as forward-looking our the in views as statements of representing should rely on apply not them future. today, this undertake after these no update to We obligation statements call.

For see the with our complete SEC. of risks the discussion more filings a and please uncertainties,

to immediately our post We the investor website have slide posted I also remarks an and the to that, our With deck prepared turn call following accompanying call. will now Robert. relations will over

Robert Antokol

Thank you, David, everyone and joining us thank today. you

excited are to future and update We for our current provide an investors.

remains dedication providing to with our our players ways at Our to Playtika strong, infinite mission play.

players offering personalized best our our with to achieve use We the and and continue are entertainment technology to creativity this. to possible will committed delighting

results quarter very is First, X.X% revenues for second in growth very I very of million of difficult to pleased we $XXX with are incredibly strong we strong this We This the a our grew Playtika and important growth second reasons: year, X.X% our the for COVID two due the performance over QX. lockdowns. and quarter. with This comp, in XX% am of quarter. proud a this to incredible provided year-over-year teams experienced for us sequentially last impressive growth experienced driving

we was achieved want quarter organic. growth I that this the Second, to highlight entirely

this can will a skills and able of launch to many this schedule. technologies our is of a on using future take will one most a commitment of areas. Match on example Playtika we had genre. to well going Switchcraft plan accelerated game to are genres studio. development long-lasting great to and accelerated define global is to after to launch, game new games Switchcraft style would Testing alongside special. we three: adding narrative believe If I excited X this Wooga’s the some us Match popular launch Switchcraft and to by approach a with Our makes XXXX. our that X game fourth ability our global deliver and new of growth across sped success games With to progress apply also franchises we and now create gameplay. new introduce our will this this compelling proprietary innovative the the gaming are word of ‘acceleration’. our of it to sustain allowing Switchcraft of in another these year. is ahead I the proud that we growth. confidence. games story-driven a the our several plan is technology use developed we continue future one mobile our at timing point overall to our have by a affirms we important X Match quarter in Wooga very Switchcraft be pursue offer well, QX of game the drive years We to repeat to highlight in what quarter, to for First, are game This We

through of not is nearly XX% our Second, XXXX. from the that up our we best-in-class XX% platforms of margins. proprietary increase subject business to license to and platform quarter helps through to percentage Playtika flows continue Revenue our over revenues, that the comes platform achieve of in fees, proprietary second

this quarter. games come casual of portfolio our which at has split XX.X% achieving represent around nearly pace the a to our overall accelerated even of we Finally, revenue, revenue

growth in for confidence year second the long-term. successes and our these both ability the drive of also this to in half All our increase of

during of the our spend Now, time will we a few deployed second some features quarter. innovation reviewing I many and

of a Bingo our to Their benefit of portfolio, the from feature Bingo Boost Splash, excellent Leagues, we casual second excellent world There from to all Seasonal their to Dr. activities. Playtika Bingo feature. of the we our see our so hitting X.X Blitz in pioneered, to by journey Collections had for and season song These original to many are far content Detective the our have ways beyond continue first June’s simple game Blitz map second the year-over-year. with of She’s a how Turning growing have Pass a mechanics campaigns high performance. continued features, example the Bingo rooms enjoy quarter room, with and marketing added developed beyond see of teams players. the great benefited released which entertainment. the are continued Blitz games platforms XX% partnership our quarter Bingo enabled Blitz providing also an million new perform. players a added more and Bingo. QX Phil

at q-over-q Harvest XX% phenomenally Grand year-over-year. the Solitaire quarter XXXX growing second grew revenue and XX% in

of a collection mechanic]. season with My we the game, away this second a feature, [given For released item Farm

[in Solitaire country. also mobile Germany. the continued adjust XX Germany, our our continued users in shares average Casino This now daily top games The XX% reached the game campaign to of local marketing top for beyond and and rankings have the underscores are much and portfolio second U.S. grossing continue the in from how in benefit to from in potential games success to innovate we localizing geographies] the in the quarter. our markets to in take to

am is area of Casual CHASE, enhanced indication our both both we the introduced teams. great game. result control the momentum it progression second closing, a and sustained users, our and the well-positioned journey game. gives innovation for ability next XXXX player monetization better our experience and very of For is adds of believe multi-day the our new Caesars Casino, that CHASE remainder beyond. unique for the continued real-time the our and our Switchcraft. I capabilities the run monetization with with generation any portfolios, Casino accelerated to I also the very to options In launch is that and to which of The capabilities, in in features have Playtika advantage quarter real-time CHASE we in promotions of the integrates player the pleased planner is gives and the and and global

to our Now, call I financial over operations and to will turn discuss results. Craig the

Craig Abrahams

you, highlights. Robert. I review would for Thank I’ll call like everyone us on to the operational thank financial today. and joining some

Following that, we will take questions.

technology really COVID in to speaks grow QX fact height the comp As quarter, XXXX model. sustained of able Playtika’s growth. Robert and organically of momentum to very continuing The second effectiveness mentioned, our Boost that drive challenging our we leveraging at the to we were the innovate against to lockdowns, of the the

Solitaire on this accounting Turning within of represents the I’d include of continue against of comp Again, Bingo the to to and game second year. up growth XX% our the of Individual of quarter of excel, a of to for revenue how Casual growth quarter in Casual now like our through the XX% portfolios, from expansion from second Harvest performance the Grand of categories. Blitz XX%, year-over-year XX%, outsized goal for impressive second as quarter revenue, is new last quarter highlights total re-iterate execute total year-over-year. Kings when XX.X% revenue all basis. game to game base XX%, second revenue Board we our diversifying of portfolio year, growth continues our last with into

confident our just and down stability, feel relative showed the well portfolio that perform basis. We year games to planned. second will X.X% on Casino-themed sequential roadmaps we in half have a based promotions on features Casino-themed the our Our of continue of

the of a performance our owned second second quarters up in quarter quarter net the on for revenue XX.X% last been the the performance, strong last on QX reported platforms of XX.X% of financial combined of of growth year. roadmap improvement two In Blitz nearly percentage Cost driven million platforms to in continued year-over-year. X.X% was This first Bingo to by declined our as GAAP This of re-launch million in to the sold loss Bingo year. XX.X%. successful revenue Turning quarter was the QX, million, income has from $XX.X XX% the second Blitz a up a $XXX.X of in versus in we proprietary revenue, our from with revenue year. of net $XXX.X by goods QX, for driven

adjusted million, quarter of margin compares same the a period in was XX.X% XX.X%, representing last to which First EBITDA $XXX year.

Regarding the sales and year-over-year R&D largely increases operating increases in the in components respectively. marketing by of media and and expenditures, were driven our expenses, headcount

on We are our that also investing quarter’s for call. last talent, by and with engineering this marketing hiring and the discussed we future activities growth

We will our as we growth allocate we new for continue and how in resources channels to be markets evaluate drive games. marketing opportunistic to

future now cash an M&A, have had over $X.X we million in XX, $XXX liquidity and to includes available support June billion of undrawn equivalents $X.X in we around cash As which revolver. of and billion

In XXXX. scale crossed to is continue by acquiring have would grown over like our span, to vigilant X.Xx assets diversifying is our value capabilities evaluate we growth. while ability and X-year target by grow to of Supertreat. for assets categories significantly monetization mandate This pipeline M&A execution our leveraging acquiring have and new Our to game that that enhancing technology we milestone our at I highlight testament staying X-year opportunities QX strong, also shareholder revenues we to into and a create M&A of and platform. and

since performance, us, $X of With Finally, reiterating exciting are stage. we billion, been an our the I’d behind $X.X has our XXXX billion. full-year of The like company and half the XXXX. months to confirm and EBITDA guidance public. display on very comps opportunity we guidance public revenue a first to and drive six entire for our of talent, solid toughest adjusted It’s appreciated vision, of full-year the went XXXX

December will analyst years. event. will please that mark business we’ve providing is deeper as management better members aspects feel believe Analyst City that, follow, calendars. the to even dive I’m pleased we exciting for look to be are our last an some prepared that the investment at happy a had in but the that drivers take announce anticipated into Day More to hold for With opportunity We presentations this, forward meet to team next we details to our and day call strategy of our X convey we your key community questions. timing we York New to the to to on IPO first we your As many going update today, and year. growth our with the than we host would Due on X. right tried

Operator

with [Operator comes of the Instructions] Morgan line question Nowak from Stanley. Your Brian first

Matt Cost

potential of you far is game? And you Hi you update And And define on to guys, for going, Thanks give how question. process anything point then broader pace success seeing, Switchcraft? of the just guess any I would for Switchcraft, learnings? you you to, that would testing sense what so know, how if for sort there the details the for you're outside of and Brian. an the in game the of it’s on Matt taking for any pipeline? a sizing? investors Thanks. And is know get development could that

Robert Antokol

thanks Hey, the for question.

a mentioned QX, So, the excited about before, as huge really we in milestone launching for we Switchcraft are company.

last we the – feeling tests testing Switchcraft are did in We game, it launch changed We few and the regions. things the confident three in about huge of quarters. after the different success game, we We can again. in only

way. a something be not want win. happened And to in to long confident weeks fail. few this It's want or months. Playtika don't it's that to We process; need in we ourselves. We was few So, always a

success, the regarding answer really simple. So, really, is

is a the we launching the can walk we're success measure than launch in a years. And million We our the game in most important This to the this. believe game. game us, is going our better here. after For yes, thing, to XXXX. QX, of do we're is $XXX This another but success way three

about And games we’re our about six in we very here. confident like coming you and so, excited [together] feeling it and months, doubling for our question. success the it's the new really Thank

Operator

the Your Suisse. of next line question comes Stephen from Ju Credit with

Stephen Ju

Okay, thank you.

Switchcraft. So, just follow-up a on

and pandemic should up you about so, part do lined going I know, about we and be have Chinese you through And year-over-year that revenue dollars launch, guess? had against out generating being know mean, market ahead down levels sound comps already you tough that you're publishing process, Slotomania the there otherwise partner a of holding the but thinking large, be might where as have it been a of does like are would you global pretty there, the were, the approval talking it you're happened. I when So, is of seem what still like does not if

just you with of, Okay, in talk Have that you in what reached we're or can seeing holding we So, monetization? terms a new about know, that that thanks. game? you're engagement game level

Robert Antokol

two the one. for not thanks questions, actually, Well, –

we we're first right to the success, on market the the and question, because in market to right experience we focusing do China, we're we understand. going that And areas to regarding that already we're we're in now. [indiscernible] the control. it know Switchcraft not So, when focusing have going that that working any going We're we're a other we're on this. in now. not going do not We're And for to China

again, So, market. about to And be in going is This our the and we it, Slotomania. in Europe regardless launching main excited we're are really U.S.

and is platforms, can have that [some own the only know see guys, everyone, the market stable, in growing. platform result. very I interesting stuff Slotomania stable, but that the the What we even see you You can nobody here, you can is tell parts] our proprietary

are we the Slotomania going this grow and to about we of very future game. excited and So, Slotomania,

make is said [indiscernible] roadshow, at two, plans before it games This years. a not for our have a stay; I beginning, to XX years, is and years; to And and as we're even run here said, three more a in look games. we said other XX going is going they to than platform. we the always big and I in it's okay, As in Slotomania game. many Slotomania game for another our that more the

not So, growing. way. done Thank we any are you. only We're in

Craig Abrahams

and first the Slotomania put down X% quarter quarter context to the second X% quarter just the in in sequentially. over was just fourth for Steven, up was numbers the you.

and know, excited about so, performance you Robert mentioned, as the again, And Slotomania strong we're from continued very there. roadmap

Stephen Ju

you. Thank

Operator

of Your Crum comes from next question the Drew line Stifel. with

Drew Crum

more are or proprietary sourced from Thanks. in that does XX% specifically the are what during portend for in for and XXXX item, assuming to you XXXX And quick expectations guidance Thanks. revenue increase? that gross level you Hey, period, half it a second housekeeping the does guys. little your And for second revenue source the what holds XX% or your just of half? margin the then Switchcraft? from than what platform embedding

Robert Antokol

going months. has more Well, really regarding that already it our of in platform, stability last to the see we're to said the XX%. roadshow than until dramatically We in grown proprietary get this the XX end I XX% year; games during games not our maybe the or and going going add we'll going this any be to new we're year. is go We're The next to X% on platform more after. another the year X%. that add to year

and on So, running comfortable, have your on run almost of feeling important very and rate hold own to the we are right future days, already our and we're it's quarter in like, these to our It's own especially platform. important we very independent. well is revenues be

to want Regarding one? the the second question, second you Craig, take

Craig Abrahams

given be Switchcraft, a top to line On Sure. it’s launch, is not projections. to QX going the material

marketing in guidance target. baked billion of In our the investment terms dollar that's of the into

that. of covered part do, as we that have so, And we

changing excited the nothing we're on there So, about launch. QX and is the guidance,

Drew Crum

Okay, guys. thanks,

Operator

of the Cowen. Your Doug with comes Creutz next from question line

Doug Creutz

you business, impact I don't bit a seen Thanks. importantly, know the what Could acquisition thanks. And The big anything any there? side? user on you'd have you of about but a have impact more comment little then, [IDFA], seen? ad Hey, you you've talk

Craig Abrahams

for Perfect. question. the Thanks

our You a know, [IDFA] we confident for positioning couple reasons. of about regarding feel

and business, X% line our are our mentioned, minimally you so ad only As by of is revenues top impacted our this.

the on buying media encouraging. seen we've data the Second, been has side

XX% our absorbed, we an of effective And rate respectively. In CPI’s. and Our impact current has than pre haven't other we seen adoption expected post-IDFA are words, and XX%, stable XX% effective consent and increase the been CPI’s been have in rates periods. in and at higher our

Just an be organic CPI’s effective unattributed include traffic and acquired. clear, to

we of this Third, out. event excellence really our a and And non-performance where buy marketing a become is stands traffic of number offline Playtika’s larger effective in networks. from type We've very campaigns.

more respect So, that we're well. diversified in as

more which stronger In our our at feedback means loop monetization, since faster data we tools with growth, have successful drive addition, users and so to we get we ops, very we're faster. convert is live

allows optimize We AI budget media [indiscernible] to proprietary allocation ROI. and buying use our that sophisticated on based tool us our also and

IDFA to that M&A many operational dramatically, sophistication upside, to not are increased On will think more companies has and of given bar. that succeed the just actually meet the opportunities, needed this in create smaller able we environment level

Doug Creutz

Thanks. very That's helpful.

Craig Abrahams

Thanks.

Operator

Your next Eric question line comes of from MKM the Handler Partners. with

Eric Handler

and morning thanks question. Good for the

of X% ran As we had market, up I'm be your about lot EMEA looked assuming advertising year-over-year, to campaigns a that revenue dissect you by geography, do the to with the what that of this advertising thinking other more you're how geo for and targeted overseas? the doing Blitz does opportunities Bingo just seeing wonder Blitz, games campaigns not maybe these for change I about your for Bingo and

Craig Abrahams

Thanks thanks. the for Sure, question.

us an for area, really localization is we're excited about. So,

and did events into markets we Harvest side, has proof Harvest, allowed we local offline and Germany live language of really truly our influencers sort but recently I is think Solitaire then on these taking successfully. for partnering and other, into with games. not campaign Grand the into both customer for point ops the markets the localization a online, beyond mean, run, to celebrities us Grand I other support, that in only all marketing of penetrate Solitaire and

represents upside of in term. biggest think part the the near I So, Europe

of longer-term well. in think on to we're definitely is upside, about Asia in but as where I have more going results future update probably works the the focus the terms excited to in there and

Eric Handler

you. Thank

Operator

next with on Citi. Jason the question Bazinet comes of Your line

Jason Bazinet

just have two quick I questions.

competitors, have to but go the XX% up Thanks. of is your in you And mix that unattributed second XX%, as stable, you traffic? of of progress your casual? up and the soft direct mix CPI’s goal part good your, said made of a the mentioned question then from a maybe a there pretty you You shift about function terms is CPI’s my casual between the demonstrably, talked there of in is number getting want of others some to industry is that, some moving not stable just other, were organic mix where

Craig Abrahams

Sure.

second take part I’ll So, the first.

So, stable. we CPI’s effective are said the

takes into account organic unattributed CPI effective and So, traffic. traffic

I the traffic we're if but attributed now picture, at are us, CP’'s effective unattributed, think, yes, looking our up, you're just for because you the going have seeing at full that's CPI’s are right traffic, stable. looking

are to things the the all levels And so AI I with our have at the perform to continue models, you campaigns especially know, that doing, we technology, offline think, our enabling of we're that us, and past. really in

of, first your back terms of In terms all casual to is per to go target, market. of there's would the no in developments are what se, say of our new product part question, casual on that, focused I your target

All are excited And efforts about adjacent well. there well. discussions at casual markets the as looking other some and as of and of that our M&A we're we're opportunities around focused

a per there's think se. I So, don't target

you portfolio think rates. that double-digit I to what see the at grower. continues is do casual probably see a grow as We single-digit the business casino

we'll over December, in the know, tuned today, shift see analyst mix but to will meeting specific continue on you we time, that no so, target stay but more And detail. provide

Jason Bazinet

Super helpful. you. Thank

Operator

There remarks. it Robert no to back for appears I'll closing be time. to turn this at questions more over

Robert Antokol

the summarize you. had last call. everyone amazing Thank quarter We for from XXXX. you, said of Thank minutes. COVID what XX the I’ll quarter. numbers an We the the did in we

game a launching new QX. We are on

business. We our are growing

see show now, growing big monetization than skills we more operations, platform plays Playtika is the and Playtika the [indiscernible] of and opportunity proprietary the for XX%, that tools. Our a

so again really, for Thank the I much see for this to year Hope you really in future a us. see us year joining you soon. and after. So, good

Playtika Holding (PLTK) 4 Aug 212021 Q2 Earnings call transcript