PL

PLAYSTUDIOS Financial Model

• Core games: myVEGAS Slots, myKONAMI Slots, POP! Slots, myVEGAS Blackjack, myVEGAS Bingo (launched), Kingdom Boss (idle RPG, launched).
• Loyalty platform: playAWARDS - players earn points through gameplay and redeem for real-world rewards (hotel stays, dining, concerts, cruises, retail). Integrated via myVIP in-game framework.
• Partner network: 84 partners, 275 brands, across 4 continents, 17 countries. Includes hotels, airlines, theaters, cruises, restaurants, retail.
• Differentiator: Loyalty mechanics demonstrably improve retention (10x lift), engagement (3x), and monetization (4x spending) for "Redeemers" vs. non-store viewers.
• Platform components: In-game myVIP framework, VIP Player Portal, In-game Store SDK, Player Management Console, Partner Rewards Console, Concierge/Host Program, Game Developer Console.

• Total gaming TAM (2019): $152.1B, growing at 10% CAGR (2009–2019).
• Mobile gaming TAM (2019): $68.5B, growing at 38% CAGR (2009–2019).
• Gaming has eclipsed music ($21.5B), movies ($42.2B), and books ($113.9B) by market size.
• Adjacent genre markets (App Annie, 2020 worldwide):
• Casino: $5.5B
• Brain & Puzzle: $8.3B
• Adventure & Sim: $12.4B
• Arcade & Action: $15.0B
• RPG & Strategy: $30.3B
• Bingo category YoY growth: 51%; 2020 downloads: 51M.
• RPG/Squad category: $5.2B market, YoY growth 47%, 2020 downloads 272M.

• Primary revenue: In-app purchases of virtual currency (chips/coins) within social casino games. Players are not gambling for real money - games are free-to-play.
• Secondary revenue (growing): Ad monetization and Player Commerce (direct purchase website).
• Future revenue stream: Loyalty-as-a-Service (LaaS) - licensing the playAWARDS platform to third-party game developers.
• Acquisition channels: Cross-promotion across owned game portfolio (organic), partner promotions, paid UA.
• Pricing: Not explicitly stated (virtual currency bundles typical for genre); ARPDAU figures: Bingo targeted at $0.40 ARPDAU, Kingdom Boss at $0.50 ARPDAU.
• Cost structure: Cost of Sales (~30–34% of revenue), User Acquisition (19–29% of revenue), All Other Expenses (26–36% of revenue).

• 2022E Revenue: $435M
• 2022E AEBITDA: $90M (exact: $89.9M)
• 2019–2022E AEBITDA CAGR: 46%
• Lifetime downloads: 100M+
• MAU: 4.2M
• Session minutes per day: 56
• Sessions per day: 2.4
• Reward Purchasers: 1.9M
• Rewards Purchased (cumulative): 11M+
• Cumulative retail value of rewards purchased: ~$500M
• Audience: 55% female / 45% male; average age 42; average income $80K
• Full financials table:

| Year | Revenue | YoY% | CoS | CoS% | UA | UA% | Other Exp | Other% | AEBITDA | Margin% | | ----- | -------- | ------ | ---- | ----- | --- | ---- | ---------- | ------- | -------- | -------- | | 2017A | $161.8M | - | $53.4M | 33.0% | $46.2M | 28.5% | $48.9M | 30.2% | $13.3M | 8.2% | | 2018A | $195.5M | 20.8% | $66.8M | 34.2% | $48.3M | 24.7% | $64.0M | 32.7% | $16.5M | 8.4% | | 2019A | $239.4M | 22.5% | $80.3M | 33.5% | $53.8M | 22.5% | $76.8M | 32.1% | $28.5M | 11.9% | | 2020E | $269.8M | 12.7% | $91.2M | 33.8% | $50.1M | 18.6% | $96.0M | 35.6% | $32.4M | 12.0% | | 2021E | $328.0M | 21.6% | $102.2M | 31.2% | $94.3M | 28.7% | $109.7M | 33.5% | $21.8M | 6.7% | | 2022E | $435.2M | 32.7% | $128.4M | 29.5% | $103.4M | 23.8% | $113.5M | 26.1% | $89.9M | 20.7% |

• Revenue CAGR 2020–2022E: 27% (vs. gaming peers avg 16%)
• AEBITDA CAGR 2020–2022E: 67% (vs. gaming peers avg 19%)
• 2017–2019 revenue CAGR (organic, all organic): 22%
• ARPDAU (as of Q3 2020): $0.54
• Daily player conversion: 2.4%
• Daily Active Monetizers: 14K (2017), 33K (2019)
• Studios: 6; Employees: 385 "Playmakers"
• Each internally developed/launched game achieved 150,000+ sustained DAU within 3 weeks of cross-promotion.

• AEBITDA margin: 8.2% (2017A) → 12.0% (2020E) → 20.7% (2022E) → 30% (2025E forecast)
• Loyalty program impact on unit economics:
• 10x retention lift (Redeemers vs. No-Store Viewers)
• 3x engagement lift
• 4x spending lift
• Margin bridge CY20→CY22: +2.6% Core Bus OpEx, +1.8% E-Commerce, +2.6% Ad Mon, -1.5% Corp Expenses, -3.2% New Games Post-Launch → CY22 Margin 20.7%
• CY22→CY23 margin expansion: +2.0–2.5% UA Efficiency, +2.5–3.0% OpEx Efficiency → CY23 margin 25–26%
• UA spend as % of revenue: 28.5% (2017) → 18.6% (2020E) → 23.8% (2022E, elevated due to new game launches)
• CAC: Not explicitly stated. Organic cross-promotion is primary UA mechanism.
• ARPDAU: $0.54 (company) vs. $0.61 (Playtika)

• Competitive set: Playtika, DoubleDown Interactive, Aristocrat Digital, SciPlay, Zynga, Glu.
• Playtika 2019A Revenue: $1,888M (vs. PLAYSTUDIOS $239M - significant scale gap).
• Bingo competitors (DAU / Rev): BingoBlitz ~$417M, ~$57M player, ~$46M player, ~$42M player.
• RPG competitor AFK Arena: 1.4M DAU, $757M revenue.
• Moats:
• Proprietary playAWARDS platform - described as "the game industry's only full-featured loyalty platform."
• Partner network (84 partners, 275 brands) - difficult to replicate quickly.
• Cross-promotional player network: organic seeding of new games to existing 4.2M MAU base.
• Real-world rewards create switching costs and differentiated value proposition.
• Award-winning track record: multiple EGR/EKG awards.
• Valuation vs. peers (EV $1,102M): EV/2022E Revenue 2.5x vs. gaming peers avg 5.8x; EV/2022E AEBITDA 12.3x vs. Playtika 16.7x/Zynga 16.4x.

• Team: Founder-led; Andrew Pascal (Founder, Chairman & CEO) - prior Wynn Resorts, WagerWorks, Silicon Gaming. Voting shares granted (20 votes per share).
• CFO: Scott Peterson (prior Wynn Resorts, Mirage Resorts, Coopers & Lybrand).
• Other founders: Paul Mathews (EVP), Katie Bolich (EVP Product), Yonatan Maor (PS Israel CEO), Yossi Sadoun (PS Israel CPO), John Lin (PS Asia GM).
• Transaction structure (SPAC):
• SPAC: Acies Acquisition Corp., $215M cash in trust
• Equity valuation of PLAYSTUDIOS: $1.041B
• PIPE: $250M at $10/share (investors: BlackRock, ClearBridge, Neuberger Berman, MGM Resorts)
• Sources: ACAC trust $215M + PIPE $250M + Company Rollover $891M + Company Cash $33M = $1,389M
• Uses: Equity consideration $891M + Cash to company stockholders $150M + Cash to balance sheet $291M + Transaction expenses $58M = $1,389M
• Post-close cash: ~$290M
• Post-transaction ownership: 64% Company Rollover, 18% PIPE, 15% Acies Stockholders, 3% Acies Sponsor
• 12-month lockup on existing PLAYSTUDIOS + Acies Sponsor shares
• Use of funds: Balance sheet cash (~$291M) to "accelerate growth" - M&A, new game genres, player network expansion, LaaS buildout.

• Archetype + why: SPAC/de-SPAC model (not a standalone operating forecast). This is a business combination between PLAYSTUDIOS and Acies Acquisition Corp. The deck is an investor presentation for the proposed merger. The appropriate model has two components:

1. Operating forecast model - the company provides 2017A–2022E P&L with explicit line items; an operating model extending through 2025E is appropriate to test the 30% AEBITDA margin target.
2. SPAC transaction/pro forma model - sources & uses, post-close cap table, share count build (including earnout shares, warrants, options), and pro forma EV/AEBITDA bridge.

• Forecast horizon & granularity:
• Historical: 2017A–2019A (annual)
• Near-term forecast: 2020E–2022E (annual; matches deck)
• Long-range: 2023E–2025E (annual; needed to show 30% margin path)
• No monthly/quarterly granularity provided or needed for this model.

• Key drivers & assumptions:

• Scenarios (Base / Bull / Bear - which variables flex):
• Base: Deck projections - 2022E $435M revenue, $90M AEBITDA (20.7% margin). New games (Bingo + Kingdom Boss) hit DAU targets; margin expands to 30% by 2025.
• Bull: M&A adds $50–100M incremental revenue post-2022; LaaS platform launched and gains external developers; loyalty network exceeds 100 partners. Revenue CAGR sustains >20% to 2025.
• Bear: New games (Bingo, Kingdom Boss) underperform DAU/ARPDAU targets; UA spend elevated longer than forecast; margin stays sub-15% through 2023; M&A delayed. Revenue growth slows to high single digits.
• Flex variables: DAU per new game title, ARPDAU per title, UA % of revenue, new game development spend timing, M&A contribution, LaaS revenue ramp, public company cost burden.

• Required sheets / outputs:

1. Transaction Summary - sources & uses, pro forma ownership cap table, share count build (base + earnout + warrants + options), implied EV at various share prices.
2. P&L Forecast - annual 2017A–2025E: Revenue, CoS, UA, Other OpEx, AEBITDA, AEBITDA margin. Match deck line-item structure exactly.
3. Revenue Bridge / Waterfall - 2020E→2022E waterfall by growth driver (Loyalty Lift, Bingo, Kingdom Boss, Other).
4. AEBITDA Bridge - 2020E→2022E waterfall by driver (Core Games, Ad Mon, Bingo+Kingdom Boss, Public Co Costs).
5. Margin Walk - CY20→CY22→CY23→CY25 margin expansion waterfall.
6. Comps / Valuation - EV/Revenue and EV/AEBITDA multiples vs. Playtika, Zynga, SciPlay, Glu, Gaming Peers Avg. at various EV scenarios.
7. Assumptions - clearly tagged vs. per driver.