• Annual Revenue: $2.549 billion, down 0.7% year-over-year.
• Annual GAAP Net Income: $162.2 million, compared to $235 million in 2023.
• Annual Credit Adjusted EBITDA: $757.7 million, a 9% decline year-over-year.
• Annual Net Income Margin: 6.4%, compared to 9.2% in 2023.
• Annual Credit Adjusted EBITDA Margin: 29.7%, compared to 32.4% in 2023.
• Annual Free Cash Flow: $396.8 million, a 9.1% decline year-over-year.
• Quarterly Revenue (Q4): $650.3 million, up 4.8% sequentially and 1.9% year-over-year.
• Quarterly GAAP Net Income (Q4): Negative $16.7 million, compared to $39.3 million in Q3.
• Quarterly Credit Adjusted EBITDA (Q4): $183.9 million, down 6.7% sequentially and 2.6% year-over-year.
• Quarterly Net Income Margin (Q4): Negative 2.6%, compared to 6.3% in Q3.
• Quarterly Credit Adjusted EBITDA Margin (Q4): 28.3%, compared to 31.8% in Q3.
• Direct-to-Consumer Revenue (Q4): $174.6 million, up 0.1% sequentially and 8% year-over-year.
• Bingo Blitz Revenue (Q4): $159.1 million, down 0.5% sequentially and up 5.8% year-over-year.
• Slotomania Revenue (Q4): $118.4 million, down 7.9% sequentially and 13.5% year-over-year.
• Solitaire Grand Harvest Revenue (Q4): $72.5 million, down 8.1% sequentially and 4.3% year-over-year.
• SuperPlay Revenue (Q4): Approximately $48 million, with minus $10 million in adjusted EBITDA losses.
• Cash and Cash Equivalents: $565.8 million as of December 31.
• Average Daily Paying Users (DPU): Increased 12.6% sequentially and 10.8% year-over-year.
• Average Daily Active Users (DAU): Increased 5.3% sequentially and decreased 7% year-over-year.
• Average Revenue Per Daily Active User (ARP DAU): $0.89, flat sequentially and up 11.3% year-over-year.
• 2025 Revenue Guidance: Between $2.8 billion and $2.85 billion.
• 2025 Adjusted EBITDA Guidance: Between $715 million and $740 million.
• 2025 Capital Expenditures: Expected to be $95 million.
• Effective Tax Rate for 2025: Estimated at 35%.

• Warning! GuruFocus has detected 5 Warning Signs with PLTK.

Release Date: February 27, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Playtika Holding Corp (NASDAQ:PLTK) completed the largest acquisition in its history by acquiring SuperPlay, adding two strong game franchises to its portfolio.
• The company plans to launch three new games, including Disney Solitaire, which has shown promising early metrics.
• Playtika Holding Corp (NASDAQ:PLTK) has initiated a quarterly dividend and authorized a buyback program, demonstrating a commitment to returning capital to shareholders.
• The company's direct-to-consumer platforms generated $174.6 million in revenue, marking an 8% year-over-year increase.
• Playtika Holding Corp (NASDAQ:PLTK) is transitioning its portfolio to focus on growth titles, with expectations for new studios to become positive EBITDA contributors by 2026.

Negative Points

• Playtika Holding Corp (NASDAQ:PLTK) reported a 0.7% decline in annual revenue and a 9% decline in credit adjusted EBITDA year-over-year.
• The company's net income margin decreased to 6.4% from 9.2% in the previous year.
• Slotomania experienced a disappointing quarter with a 13.5% year-over-year revenue decline due to game economy issues.
• Operating expenses increased by 13.7% year-over-year, primarily driven by the acquisition of SuperPlay.
• The company anticipates near-term pressure on EBITDA due to the cost of scaling growth titles and ongoing declines in its slot portfolio.

Q & A Highlights

Q: Craig, can you discuss the organic growth trajectory for 2025, particularly for the existing portfolio and recently acquired titles? A: Craig Abrahams, President, CFO: The portfolio is transitioning as we invest in growth titles. We expect studios like SuperPlay to become positive EBITDA contributors by 2026. New game development will be part of our strategy, adding another growth leg to the company.

Q: What is Playtika's view on in-app advertising versus in-app purchases, and how does it relate to the e-commerce trend? A: Craig Abrahams, President, CFO: We focus on in-app purchases due to better monetization and retention. While some games have in-app advertising, it's not a primary driver for us. We don't have a comment on the e-commerce trend.

Q: What are the key learnings from the DTC strategy in 2024, and how will it evolve in 2025? A: Robert Antokol, CEO: Our DTC strategy is on track, with significant growth in revenues. It's a major growth engine for EBITDA, and we are pleased with the results, having grown 8% year-over-year.

Q: How is Disney Solitaire performing in testing, and what is the expected revenue contribution from new games over the next 12 to 18 months? A: Robert Antokol, CEO: We are excited about Disney Solitaire, expecting it to be a top game within a year. It will be a significant growth engine, though revenue contributions in 2025 are not expected to be material.

Q: What is the outlook for the social casino genre over the next few years? A: Robert Antokol, CEO: The genre has stabilized with major players dominating. While overall growth may not be significant, Playtika sees opportunities to gain market share and is launching a new title to capitalize on this.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.