Playtika Holding Corp. Q3 FY2024 earnings call

• Proposed acquisition of SuperPlay is a key milestone aligning with growth strategy, pending customary closing conditions. M&A is core to Playtika's strategy, with 9 of top 11 titles via M&A. SuperPlay's titles like Dice Dreams and Domino Dreams enhance portfolio.
• Q3 performance: Revenue $620.8M, credit adjusted EBITDA $197.2M. DTC outperformed. Top games: Bingo Blitz up, Solitaire Grand Harvest up, Slotomania down. R&D, Sales & marketing, G&A had respective changes. Operating metrics: DPU up, DAU down, ARPDAU up.
• M&A strategy: M&A has been cornerstone, scaling top-tier gaming studios to build robust portfolio. SuperPlay acquisition fits growth strategy.

For Q3 2024, Playtika generated $620.8 million in revenue, down 1% sequentially and 1.5% year-over-year. Credit adjusted EBITDA was $197.2 million, up 3.2% sequentially and down 4.1% year-over-year. The direct-to-consumer business contributed $174.4 million, up 0.4% sequentially and 8.3% year-over-year. Top three games: Bingo Blitz had revenue of $159.9 million, up 2.7% sequentially and 6.8% year-over-year; Solitaire Grand Harvest was $79 million, up 6.5% sequentially and down 0.2% year-over-year; Slotomania was $128.7 million, down 3.8% sequentially and 9.3% year-over-year. Cost of revenue decreased 3.3% year-over-year, R&D expenses declined 2.9% year-over-year, sales and marketing expenses increased 5% year-over-year but declined 11.5% sequentially, and G&A expenses decreased 3.5% year-over-year. Average DPU increased 1% sequentially and 0.7% year-over-year to $301,000; average DAU decreased 6.2% sequentially and 9.5% year-over-year to $7.6 million; ARPDAU increased 4.7% sequentially and 9.9% year-over-year to $0.89.

• Revenue expected to range from $2.505 billion to $2.52 billion.
• Credit adjusted EBITDA guidance raised to $755 million to $765 million.
• Capital expenditure guidance lowered to $90 million. Guidance does not incorporate SuperPlay acquisition as it's pending.

Risks and uncertainties discussed in filings with the SEC are detailed there, with no specific operational failures explicitly highlighted in the transcript.

Q: Chris Schoell on drivers of 4Q performance and updated M&A plans A: Craig Abrahams on EBITDA overperformance, top line underperformance, and future M&A updates Q: Andrew Crum on DTC mix and casual portfolio decline A: Craig Abrahams on DTC execution and casual portfolio focus Q: Eric Handler on DAU dynamics A: Craig Abrahams on portfolio diversification and DAU trends Q: Matthew Cost on marketing and revenue guide A: Nir Korczak on marketing shifts and Craig Abrahams on revenue drivers Q: Aaron Lee on SuperPlay synergies and game launches A: Robert Antokol on SuperPlay independence and game launch timelines Q: Omar Dessouky on hybrid monetization A: Craig Abrahams on purchase-focused monetization