PLAYSTUDIOS, Inc. (NASDAQ:MYPS) Q2 2023 Earnings Call Transcript

David Karnovsky: Hi, thank you. I’m wondering, I mean, I know this will be in your 10-Q, but can you just let us know the relative contribution in the quarter virtual currency versus advertising, and then I want us to see if you could provide some incremental detail on your core social casino portfolio in the quarter. You did highlight in the press release a focus of investment on myKONAMI in myVEGAS, maybe contrast a bit with going on there relative to POP slots, which you didn’t mention and I’m assuming maybe has better performance?

Andrew Pascal: Yes, I mean, we don’t typically, break out or speak to the specific performance of each of the products. So I’ll just, generalize or share that part of what precipitated the changes that we made last quarter and some of the restructuring that we did was to really align the core leadership and talent that we have within our casino genre with those two core franchises to kind of reset them, feel like there’s still unrealized potential with those products. And so we went through and conducted those changes and transitions through the last quarter that we just concluded and they’re still ongoing and we are encouraged and feel like there’s an opportunity for us to unlock that value as we advance through this quarter into the fourth.

So that’s kind of the color or commentary on both myVegas and KONAMI specifically, POP has always been kind of the more of a standout performer within the casino portfolio for us in terms of its scale and its capacity to convert and monetize the audience. And so we look to it and to the teams that have managed it to really help inform how it is that we approach improving the execution of performance of both my myVEGAS and myKONAMI. So those are some of the fundamental reasons why we ended up realigning and moving those products. There’s also obviously a pretty meaningful improvement in just the overall cost structure of those products as we made those changes. As far as, so that’s the casino portfolio, hopefully some additional detail that’s helpful with respect to the composition of revenue and the mix between in-app purchase and advertising.

I’ll leave that to you, Scott.

Scott Peterson: Yes. The virtual currency was just roughly 80%. Advertising was 18% and we had 2% of other revenue.

David Karnovsky: Thank you.

Andrew Pascal: Awesome. Thank you, David.

Operator: [Operator Instructions] Our next question is from David Pang with Stifel. Please proceed with your question.

David Pang: Thanks, guys. I just had a question on playAWARDS . I think you mentioned earlier that you had some early testing with external partners. I was curious to hear what the early feedback has been thus far and how should we think about the potential business model for playAWARDS as a service for external partners?

Andrew Pascal: So we, as I alluded to in the release, we’ve started to engage with and select partners to just share what our intentions are and providing loyalty as a service solutions. They are preliminary conversations. We do it to kind of test the waters, get feedback, see how people react to the overall idea and proposition of incorporating loyalty into some of their core franchise products. I would say overall for the select conversations that we’ve had, people see it as unique and interesting, and they’re curious to learn a lot more. And so the learning of a lot more has to do with what does it mean in terms of the potential impact that it can have on their overall performance? So what can and should they expect in terms of [indiscernible] and some of the key metrics?