PLTK - Earnings call transcript Q1 2024

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

Operator

Good day, and thank you for standing by. Welcome to the Playtika Q1 2024 Earnings Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Tae Lee, SVP, Corporate Finance and Investor Relations. Please go ahead.

Tae Lee

you earnings us Corp. call thank first for and XXXX quarter for everyone, for today joining the Welcome, Playtika Holding

me Craig today CEO call Chief on Antokol, Joining and Co-Founder Financial are Officer. of Playtika's Abrahams, Robert and President and Platika; the

these but accompanying to revenue which including, but contains should measures, and comments also These and limited you our would views operating forward-looking control. future. like no and and website, discussion statements in are slide contain today, Investor company's to call. will prepared statements Relations risks the of subject update undertake the after These remarks posted some We've and deck beyond other guarantee are rely performance, you performance. representing rather this remind I on statements to, of non-GAAP not call. today's we of to the that immediately as may our following uncertainties, an them statements as forward-looking We not future information future apply are our to a anticipated not statements forward-looking and which our on post obligation

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

now With Robert. the turn that, I'll to call

Robert Antokol

in joining Good pleased I'm to I for and our was morning, thank Last and of you, have operating allocation. efficiency. And report that our year, our made today. call optimizing everyone, our said we year sat resource XXXX that

established our of pleased note is to last year year I'm have that Our solid a and foundation, efforts execution. XXXX

with to evolving and phase, to reorganize some We new this team made decided team. our our swiftly, leadership have part aligned and we landscape industry importance of strategic leadership executive the the to goals. and changes As our a recognize better our have act of we

management with our Our with this over leadership priority gaming. position our our is align growing better strategic reorg structure goal to of

the bring leadership eliminating is Revenue and team direct streamline our executive my Officer This to to our decided role have Chief and of Operating studios leadership by flatten We adjustment to oversight. Officer. Chief designed

all structure, directly includes services in our addition, enhances operational reporting and our change our but shared as and In revenue will me, generation effective now involvement hedged HR also are This to possible. teams. talented simplifies both management. my ensures strategic which operations This technology and report we

our Marketing to Chief Recently, our directly who report Korczak, reporting now Nir CRO, previously Officer, to me. will

between We directly closely are by our synergy more pushing marketing to studio enhance integrating and [indiscernible]. our the operations efforts marketing within

way the and campaigns. for tactical We more cohesive are paving

to who build to roles been my The want gratitude has invaluable legacy of industry-leading Playtika departing journey. gaming extend an into having they company. also helped our strong mobile executives, behind heartfelt I critical leave in have and a contribution played our

the excited forward, we As these changes about are [indiscernible]. we move that opportunities

will flatter our of and and our decision-making and create our players to streamlined shareholders. structure plans, community for Our accelerate allowing enhance better serve value

over to business about I you it talk in am more financial look throughout I we Craig taking, our updating results. I direction and to continued forward to the are will now details year. progress the steps the on the and and our confident turn in

Craig Abrahams

Thank of principles, last importance the allocation start which you, like capital we by I'd Robert. our quarter. to introduced emphasizing

for that returns M&A. capital ensure focuses to invested value. Our helps approach dollar capital every strategy shareholder on balancing for maximized and deployment This shareholders is

long-term to share of shareholders. $XXX a our financial I'm our has program Directors our value highlights new This commitment repurchase million. delivering authorized stability ongoing Board our to that pleased to announce and of initiative

systematically our with our key our shareholders. return to the quarterly of Together a to share repurchase component dividend, program is strategy capital

of you update Additionally, on want the recently studios. to our performance I acquired

to I'm replicate we M&A future X past pleased capability of strong demonstrate our to This operations. and games performance. potential success new strategy acquisitions. value our creation they've overall our added continued confidence these quarters, to the reaffirms our in performance that successfully have the to Over report

our to Turning financial results.

X.X% For the revenue, year-over-year. quarter, we sequentially down up and $XXX.X million generated of X.X%

increased an credit EBITDA year-over-year. credit performance million, marketing had on and this we down as X.X% of past impact EBITDA quarter adjusted in adjusted our down sequentially investment Our generated $XXX.X XX.X% margins

Bingo experienced Net led and income June's Solitaire platforms DXC million. World incremental of in DXC the results year-over-year. coming our House in Blitz, and existing of business on from generated revenue strong innings Harvest in quarters. as Slotomania, expect XX.X% across early Fun sequential see was games of and Casino, in X.X% $XXX.X we up contribution We from DXC we the our and Journey, platforms Grand Caesars business was DXC strength Series Poker. $XX saw our to our direct-to-consumer million, The has We're growth sequentially in

Bingo and our Animals now our X.X% was Revenue and Blitz Blitz, revenue our Harvest Grand X.X% sequentially sequential Turning was and up year-over-year. in to games business grew the X% by X.X% Coins. for down $XXX.X casual games quarter. and results Solitaire across casual growth year-over-year. million, Bingo led The sequentially

in growth this I'm significant a indicator is sequential Bingo the pleased of the in Bingo Blitz franchise. QX of potential report last the and as revenue year, stability of resilience to Following strong growth sequential

in the year-over-year, quarter was against down revenue comparison While slightly highest history. the Bingo's revenue our is

in revenues of to proud happy Bingo In I'm continued their Blitz year-over-year. Bingo DXC double that for grew success report addition, business. our digits Blitz' we growing our are team very DXC

was X.X% $XX.X Harvest year-over-year. sequentially X.X% up revenue and million, down Grand Solitaire

last Grand strong quarters Solitaire year over exceptionally several revenue following an QX. Harvest decreased

However, about map are the signs year. we seeing we of optimistic road positive in momentum this now studio, and our remain

casino casino down and is $XXX.X X.X% Series Governor Poker, landscape sequential for the response The we sequentially social investments. of competitive social year-over-year. declined theme have Caesars increased theme Poker our X.X% performance led in Slotomania, year-over-year. to growth games Our revenue Slotomania and X World X.X% and was by sequentially In grew Casino. marketing X.X% games million,

solidifying in and our increasing engagement installs position a Our market. efforts in are competitive aimed at

prioritize optimistic will about remain an our revenue We making as to this improved our tactical we're stabilize franchise. that In reflect ability and time over grow addition, performance. gradually Slotomania other strategic adjustments and ongoing we and believe efforts

line specific items primarily to driven DXC increased driven for our decreased in P&L X.X% Cost quarter. the first business growth increased of revenue operating and primarily by marketing spending. now our XX%, by performance year-over-year, by Turning expenses in

despite R&D to increased to overall increased contributed by X.X% our year-over-year. R&D decrease Higher headcount. rise were a locations composition in higher-cost These Sales in compensation primarily shift and increases. with expenses by year-over-year. in towards merit-based due factors workforce XX.X% expenses marketing a the combined

more our guided expenses related in the the of Growth We of other earnings the newly in quarter were spend to performance The in in growth majority last marketing call. to our spend result on increase typically quarter. than year-over-year first and performance marketing the marketing studios. that sales any we acquired spend was

coming And in so the in we expect year-over-year the quarters. to taper growth off spending

X.X% expenses slightly G&A year-over-year. by declined

$X As cash had approximately billion cash of we in equivalents. XX, March and

our and increased XXX,XXX. million. X.X% $X.XX. Looking increased and metrics, to X.X% decreased X% to year-over-year Average year-over-year X.X% increased to sequentially DPU at operating decreased $X.X sequentially average DAU sequentially and year-over-year ARPDAU X.X%

million. of the credit range Finally, $X.XX $XXX we to the previously be $XXX EBITDA billion adjusted $X.XX provided to billion of revenue in expect and million range to within

outlook on CapEx Our remains unchanged.

your that, With be happy we'd questions. to take

Operator

of the Sebastian question first of comes Baird. Colin line from Our Instructions] [Operator

Colin Sebastian

-- strategy you marketing couple change strategy evolve on marketing talk leadership A I guess, I how a Can under that that? maybe me. and the questions first your seen structure. have the about the of for off, you've the will new on I leadership legacy more guess, I into And not And why of Slotomania, follow-up. then, more portfolio? today based of spend, what lean across with guess, Robert,

Robert Antokol

very a one. for thanks first, question, the important So

X to put political So was under do working strategy. -- to ago, years market everything its X studio all people. CMO. decided differently than has marketing today. It's years we own X And ago, Its

to them give studios. direction, company, we started I work that today, than X view Now a need And market the bit Bingo each will will do better that X doing and a do walk we we're the more actually, the better It to give teams more them others. them on we're changes us, with another of of X with to independency feel of -- need a as tests. building little Slotomania, differently the and will new to and to

by way, the last we And quarter, I the market critical game, future. bit grow think need differently. we we enough the big do now it's us the in if are little in for I of because hopes the enough. studio, with we independency in -- why not the the have Slotomania, to help always a been feel investing believe in we believe And the things for we is And the not have and studio, business can it to good

Colin Sebastian

you expect we And that up think to XX% now the DXC couple June's on the on of of Journey, guess, and up I DXC. how XX%, see would and And over overall, Okay. Solitaire quickly can next to Where then years? through DXC? ramp I your revenues move platform those

Robert Antokol

is So we as our said, XX%. target, always

changing we our X of to on We to going that are not X platform, very during the that's them still said, XX not as months. XX we're the actually, targets. as I'm excited you And said, are add running I games and another

And us cross always that the independency is think it's I the changing right better biggest will We direction one -- felt the company. I one We cash target. this XX%, a changing think margin, doing that better Playtika the us always advantage flow. not not DXC. I'm as but we give were first of the any of gives

Operator

of comes from Aaron Lee Our Macquarie. line next the question of

Aaron Lee

regard those? about great back versus this you've investments hear that In the from you It's in are acquisitions? of going confidence And I few in M&A that, a your takeaways reaffirmed think you've I past, how strategy. guess, is With you studios consider something Any those. to? done thinking the would full to to

Craig Abrahams

for the Thanks question. Sure.

of the ecosystem. So be on think diligence to M&A close important variety I to doing as it's part of, a and entire

variety of toolkit So is relationships investments an a of develop studios. as to make having we the with important part the ability

priority important where help our having done in a make where a good that But business investment developing But is it better as grow. to, M&A. capability well we our that capabilities is business. that path or Obviously, leverage we think some that clearly toolkit is longer-term businesses just Obviously, with acquiring it's investments. well. preference -- I is a ops make as live our and with investment relationship these some hopefully, our can to hopefully examples and We've acquisitions

Aaron Lee

latest union makes with makes R&D kind efforts curious tech it ad That of to a to the And sense. sense and whether tools marketing bit of your your then and there? to budget hear just Understood. flex the regard state accelerate any to

Craig Abrahams

Yes.

use think at each look changing. to and third-party it's use So tools. ad what think be always some best need we're finding built tech doesn't is examples, internal it opportunity in-house. the in I examples, to rapidly necessarily And And ecosystem tools is and individually some that I in

we I AI attribution marketing. think to to us are helping it's as way look tools, tools, us what's that to party in-house or budget optimize help third whether either new at are for look to best-in-class And or continue we'll continue the there. there certain allocation,

big have environment. constantly games make portfolio And I think, over changes is we time. overall, allows a budget our the we best reallocate where advantage marketing a and to large navigate shifting that and we see kind of of the can us in that returns

also games us as television and iconic think as into offline able on customer we're to helps the I well the in advertising, the celebrities with campaigns fact do that well engagement. as leverage

execute. market So to we and continue the navigate

Operator

of comes from question Fargo. the Brian Fitzgerald Next of line Wells

Brian Fitzgerald

running a the newly Are us of of your acquired on kind a whole Maybe Can marketing portfolio general games? train you studios? of give solutions. permeated are follow-on against you AI-based them? idea thought they across they these deploying of the Are to last

these last secondly, the is maybe was seeing question time hey, streamline solutions, you now that in is success there then you that AI-based the the the And just having terms leverage with you're to right leadership of, part the impactful marketing of the And are marketing want? is team?

Craig Abrahams

of to decisions. We've solve would difficult throughout better I been variety aid years problems AI the places in not and company decisions. using in making help tools kind employees them a for X our of correlate So the

that going to decision. employees that's I developed And tools been terms further of able their third-party for on make been provide so how there's it's in have these the marketplace to And aid is well, they think in what's really years. the as that changed been great

there, think of quo, over status been I time. better things are getting just So it's kind

a was it Rob In terms as the earlier. of referenced reorganization, separate decision,

Operator

The line Omar of next Dessouky Bank of question of America. comes from the

Unknown Analyst

be the you're This spending probably Arthur newly any or versus helpful. terms Omar. is some any acquired there a of much statistic period for games percentage to a metric user on It you all would in ROS? that are could Is anything games be of in or of how at acquisitions help I payback quantify think more share or like mature? us difference booking super

Craig Abrahams

No.

at for growth. I portion our acquired think spend if investing there of you that was year-over-year, the dedicated newly good we're look a titles towards incremental as

I and as increased past, think investing we've well called Blitz Slotomania as the good We're out also marketing in budgets. Bingo results at seeing there. having

nothing call franchises So quantitatively, I going bring there's quarter to we the general, more opportunities. growth called we're specific decision help invest to in think but to out out certain last

Operator

your showing am This you Thank the program. time. the right. does conference. no further in question-and-answer All this session at questions I for conclude and participation today's

You now may disconnect.

Playtika Holding (PLTK) 9 May 242024 Q1 Earnings call transcript