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PLAYSTUDIOS (MYPS)

The Company is a newly organized blank check company, formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses. While the Company has not selected any potential business combination target, it is focused on identifying a business combination target within the live, location-based and mobile experiential entertainment industries. Specific sectors that the Company will target span live events, family entertainment, casino gaming, destination hospitality, sports, sports betting and iGaming, and social and casual mobile games. The Company plans on pursuing both consumer-facing operators as well as the business-to-business platforms that support them. While predominantly focused on the U.S., the Company’s search may expand to international markets.

Company profile

Ticker
MYPS, MYPSW
Exchange
CEO
Andrew Pascal
Employees
Incorporated
Location
Fiscal year end
Former names
Acies Acquisition Corp.
SEC CIK
Subsidiaries
PLAYSTUDIOS US, LLC • PLAYSTUDIOS Orion US, Inc. • Big Kick Games, LLC • PlayStudios Asia Limited • PlayStudios International Limited • PlayStudios International Israel Limited • PlayStudios Orion Labs Private Limited • PlayStudios International Europe • PlayStudios Vietnam Company Limited ...

MYPS stock data

Analyst ratings and price targets

Last 3 months

Calendar

9 Aug 22
29 Sep 22
31 Dec 22
Quarter (USD) Jun 22 Mar 22 Dec 21 Sep 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Dec 21 Dec 20
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 220.64M 220.64M 220.64M 220.64M 220.64M
Cash burn (monthly) (no burn) 771.92K 2.25M 670.5K 11.5K
Cash used (since last report) n/a 2.31M 6.75M 2.01M 34.45K
Cash remaining n/a 218.33M 213.89M 218.63M 220.6M
Runway (months of cash) n/a 282.8 95.0 326.1 19182.9

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
15 Sep 22 Pascal Andrew S Stock Options Class B Common Stock Option exercise Acquire M No No 0.14 0 0 0
27 Jun 22 Pascal Andrew S Class A Common Stock Buy Acquire P Yes Yes 4.563 13,500 61.6K 406,300
21 Jun 22 Pascal Andrew S Class A Common Stock Buy Acquire P Yes Yes 6.2967 9,600 60.45K 392,800
14 Jun 22 Pascal Andrew S Class A Common Stock Buy Acquire P Yes Yes 5.4483 11,200 61.02K 383,200
8 Jun 22 Hyman Joseph Horowitz Class A Common Stock Grant Acquire A No No 0 25,510 0 25,510
17.4% owned by funds/institutions
13F holders Current Prev Q Change
Total holders 2 2
Opened positions 0 0
Closed positions 0 0
Increased positions 0 0
Reduced positions 0 0
13F shares Current Prev Q Change
Total value 29.5M 29.5M
Total shares 2.9M 2.9M
Total puts 0 0
Total calls 0 0
Total put/call ratio
Largest owners Shares Value Change
Integrated Core Strategies 1.8M $18.54M 0.0%
Linden Capital 1.1M $10.96M 0.0%
Largest transactions Shares Bought/sold Change
Integrated Core Strategies 1.8M 0 0.0%
Linden Capital 1.1M 0 0.0%

Financial report summary

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Risks
  • If we are able to develop new games and features that achieve success, it is possible that these new games and features could divert players of our other existing games without growing our overall player base, which could harm operating results.
  • The COVID-19 pandemic, including variants thereof, and containment efforts across the globe have materially altered how individuals interact with each other and have materially affected how we and our business partners are operating, and the extent to which this situation will impact our future results of operations and overall financial performance remains uncertain.
  • Our industry is very competitive. If players prefer our competitors’ games over our own, our operating results could suffer.
  • We rely on a small portion of our total players for a substantial amount of our revenue and if we fail to grow our player base, or if player engagement declines, our revenue and operating results will be harmed.
  • A substantial portion of our loyalty rewards are obtained from MGM, and any change in that relationship could materially and adversely affect our business and financial results.
  • We rely on third-party platforms such as the Apple App Store, Google Play Store, Amazon Appstore, and Facebook to distribute our games and collect revenues generated on such platforms and rely on third-party payment service providers to collect revenues generated on our own platforms.
  • We rely on third-party hosting and cloud computing providers to operate certain aspects of our business. In particular, a significant portion of our game traffic is hosted by Amazon Web Services, or AWS, and any failure, disruption or significant interruption in our network or hosting and cloud services could adversely impact our operations and harm our business.
  • We have engaged third-party game development companies to develop and operate new mobile games and if they fail to perform as expected, our business may suffer.
  • If we do not successfully invest in, establish and maintain awareness of our brands and games, if we incur excessive expenses promoting and maintaining our brands or our games or if our games contain defects, our business, financial condition, results of operations, or reputation could be harmed.
  • Our ability to acquire and maintain licenses to intellectual property may affect our revenue and profitability. Competition for these licenses may make them more expensive and increase our costs.
  • The perceived value of our virtual currency is highly dependent on how we manage the economies in our games. If we fail to manage our game economies properly, our business may suffer.
  • If the use of mobile devices as game platforms and the proliferation of mobile devices generally do not increase, our business could be adversely affected.
  • We rely on information technology and other systems and platforms, and any failures, errors, defects, or disruptions in our or our vendors’ or other partners’ systems or platforms could diminish our brand and reputation, subject us to liability, disrupt our business, impact our games and related software applications, affect our ability to scale our technical infrastructure, and adversely affect our operating results and growth prospects.
  • While we have achieved profitability in the past, we also have a history of net losses and our revenue and operating margins may decline. We also may incur substantial net losses in the future and may not sustain profitability.
  • We intend to grow our business through strategic acquisitions, investments, and joint ventures that involve numerous risks and uncertainties.
  • Our international operations are, and our strategy to expand internationally will be, subject to increased challenges and risks.
  • Our business is subject to a variety of U.S. and foreign laws, many of which are unsettled and still developing and which could subject us to claims or otherwise harm our business.
  • Failure to obtain, maintain, protect, or enforce our intellectual property rights could harm our business, results of operations, and financial condition.
  • We may be subject to intellectual property disputes, which are costly to defend and could require us to pay significant damages and could limit our ability to use certain technologies in the future.
  • Our games utilize third-party open source software components, which may pose particular risks to our proprietary software, technologies, and games in a manner that could negatively affect our business.
  • We are subject to laws and regulations concerning data privacy, information security, data protection, and consumer protection, and these laws and regulations are continually evolving. Our actual or perceived failure to comply with these laws and regulations could harm our business.
  • Our business depends on our ability to collect and use data to deliver relevant content and marketing materials, and any limitation on the collection and use of this data could cause us to lose revenue.
  • We rely on assumptions and estimates to calculate certain of our key metrics, and real or perceived inaccuracies in such metrics may harm our reputation and negatively affect our business.
  • Companies and governmental agencies may restrict access to platforms, our website, mobile applications, or the Internet generally, which could lead to the loss or slower growth of our player base.
  • Despite our security measures, our information technology and infrastructure may be vulnerable to attacks by hackers or breached due to employee error, malfeasance, or other disruptions. Any such breach could compromise our networks and the information stored there could be accessed, publicly disclosed, lost or stolen. Any such access, disclosure, or other loss of information could result in legal claims or proceedings, liability under laws that protect the privacy of personal information, regulatory penalties, disruption of our operations and the services we provide to players, damage to our reputation, and a loss of confidence in our products and services, which could adversely affect our business.
  • Changes in tax laws or tax rulings could materially affect our effective tax rates, financial position, and results of operations.
  • We could be required to collect additional sales, value-added, or similar taxes or be subject to other tax liabilities that may increase the costs of our players to engage with our games and adversely affect our results of operations.
  • We may have exposure to greater than anticipated tax liabilities.
  • Our ability to utilize our research credit carryforwards and certain other tax attributes may have been limited by “ownership changes” and may be further limited.
  • Economic downturns and political and market conditions beyond our control could adversely affect our business, financial condition, results of operations, or prospects.
  • Our results of operations may fluctuate due to various factors and, therefore, our periodic operating results will not be guarantees of future performance.
  • Our reported financial results may be affected by changes in accounting principles generally accepted in the U.S.
  • Our core values of focusing on our players and their experience within our games and acting for the long-term may conflict with the short-term expectations of analysts.
  • Securities analysts may not publish favorable research or reports about our business or may publish no information at all, which could cause our stock price or trading volume to decline.
  • We may require additional capital to support our growth plans, and such capital may not be available on terms acceptable to us, if at all. This could hamper our growth and adversely affect our business.
  • Our investment portfolio may become impaired by deterioration of the financial markets.
  • Our management has limited experience in operating a public company. The requirements of being a public company may strain our resources and divert management’s attention, and the increases in legal, accounting and compliance expenses may be greater than we anticipate.
  • As a private company, we were not required to document and test our internal controls over financial reporting, our management was not required to certify the effectiveness of our internal controls and our auditors were not required to opine on the effectiveness of our internal controls over financial reporting. Failure to maintain adequate financial, information technology and management processes and controls could result in material weaknesses which could lead to errors in our financial reporting, which could adversely affect our business.
  • We are currently an “emerging growth company” within the meaning of the Securities Act, and have taken advantage of certain exemptions from disclosure requirements available to emerging growth companies, which could make our securities less attractive to investors and may make it more difficult to compare our performance to the performance of other public companies.
  • Our workforce and operations have grown substantially since our inception and we expect that they will continue to do so. If we are unable to effectively manage that growth, our financial performance and future prospects will be adversely affected.
  • Continued growth and success will depend on the performance of our current and future employees, including certain key employees. Recruitment and retention of these individuals is vital to growing our business and meeting our business plans. The loss of any of our key executives or other key employees could harm our business.
  • Any restructuring actions and cost reduction initiatives that we undertake may not deliver the expected results and these actions may adversely affect our business.
  • We have a game studio located in Burlingame, California, just south of San Francisco. The occurrence of an earthquake or other natural disaster or other significant business interruption at or near our game studio in Burlingame, California,
  • or any of our other game studios or facilities, could cause damage to our facilities and equipment and interfere with our operations.
  • Our insurance may not provide adequate levels of coverage against claims.
  • Because we are a “controlled company” within the meaning of the Nasdaq rules, our stockholders may not have certain corporate governance protections that are available to stockholders of companies that are not controlled companies.
  • The dual class structure of our common stock has the effect of concentrating voting power with Andrew Pascal, our Chairman and Chief Executive Officer, which limits an investor’s ability to influence the outcome of important transactions, including a change in control.
  • We cannot predict the impact our dual class structure may have on the stock price of our Class A common stock.
  • We may issue additional common stock or preferred stock, including under the 2021 Plan and 2021 ESPP. Any such issuances would dilute the interest of our stockholders and likely present other risks.
  • The historical financial results of Old PLAYSTUDIOS included elsewhere in this Quarterly Report on Form 10-Q may not be fully comparable to our future results as a result of the Business Combination.
  • Legal proceedings in connection with the Business Combination, the outcomes of which are uncertain, could divert management’s attention and adversely affect our daily operations.
  • Warrants may be exercised for our Class A common stock and Earnout Shares and Sponsor Shares may become issuable or vest, each of which would increase the number of shares eligible for future resale in the public market and result in dilution to our stockholders.
  • Regulatory and licensing requirements may limit the ability of third parties seeking to make investments in us or acquire us.
  • Our warrants are accounted for as liabilities and changes in the value of our warrants could have a material effect on our financial results.
  • The price of our Class A common stock and Warrants may be volatile.
  • We do not intend to pay cash dividends for the foreseeable future.
  • We will have broad discretion over the use of proceeds from the exercise of the Public Warrants and options, and we may invest or spend the proceeds in ways with which investors do not agree and in ways that may not yield a return.
  • We may be subject to securities litigation, which is expensive and could divert management attention.
  • Future resales of common stock may cause the market price of our securities to drop significantly, even if our business is doing well.
  • The Public Warrants may never be in the money, and they may expire worthless and the terms of the Public Warrants may be amended in a manner adverse to a holder if holders of at least 65% of the then outstanding Public Warrants approve of such amendment.
  • Delaware law and our organizational documents contain certain provisions, including anti-takeover provisions, that limit the ability of stockholders to take certain actions and could delay or discourage takeover attempts that stockholders may consider favorable.
  • The provisions of the Certificate of Incorporation requiring exclusive forum in the Court of Chancery of the State of Delaware for certain types of lawsuits may have the effect of discouraging lawsuits against our directors and officers.
Management Discussion
  • Item 2.        Management’s Discussion and Analysis of Financial Condition and Results of Operations
  • Our actual results and the timing of certain events may differ significantly from the results discussed in the forward-looking statements. Factors that might cause such a discrepancy include, but are not limited to, those discussed elsewhere in this Quarterly Report on Form 10-Q, particularly in the section titled “Risk Factors” set forth in Part II, Item 1A of this Quarterly Report on Form 10-Q. All forward-looking statements in this report are based on information available to us as of the date hereof, and we assume no obligation to update any such forward-looking statements to reflect future events or circumstances, except as required by law.
  • We are a developer and publisher of free-to-play casual games for mobile and social platforms each of which incorporate our unique playAWARDS loyalty program. Over our ten-year history, we developed a portfolio of free-to-play social casino games that are considered to be among the most innovative and unique in the genre. They include the award-winning POP! Slots, myVEGAS Slots, my KONAMI Slots, myVEGAS Blackjack, myVEGAS Bingo and MGM Slots Live. Our games are based on original content, real-world slot game content, as well as third-party licensed brands and are downloadable and playable for free on multiple social and mobile-based platforms, including the Apple App Store, Google Play Store, Amazon Appstore, and Facebook.

Content analysis

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Positive
Negative
Uncertain
Constraining
Legalese
Litigous
Readability
H.S. senior Avg
New words: blockchain, Broadridge, Covington, depositary, Division, Eastern, Ethereum, Issuer, lock, macro, midnight, preliminary, puzzle, SOFR, Southern, validly
Removed: guaranteed, intending, lockup, match, pretax, retirement