Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 25, 2022 | Jun. 30, 2021 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-39652 | ||
Registrant Name | PLAYSTUDIOS, Inc. | ||
Entity Incorporation, State Code | DE | ||
Entity Tax Identification Number | 98-1606155 | ||
Entity Address, Address Line One | 10150 Covington Cross Drive, | ||
Entity Address, City or Town | Las Vegas | ||
Entity Address, State or Province | NV | ||
Entity Address, Postal Zip Code | 89144 | ||
City Area Code | 725 | ||
Local Phone Number | 877-7000 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | false | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 615.5 | ||
Documents Incorporated by Reference | Portions of the Registrant’s definitive Proxy Statement for its 2022 Annual Meeting of Stockholders are incorporated by reference into Part III of this Form 10-K. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001823878 | ||
Class A common stock | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Class A common stock | ||
Trading Symbol | MYPS | ||
Security Exchange Name | NASDAQ | ||
Entity Common Stock, Shares Outstanding | 110,274,064 | ||
Redeemable warrants exercisable for one Class A common stock at an exercise price of $11.50 | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Redeemable warrants exercisable for one Class A common stock at an exercise price of $11.50 | ||
Trading Symbol | MYPSW | ||
Security Exchange Name | NASDAQ | ||
Class B common stock | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 16,130,300 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Auditor Information [Abstract] | |
Auditor Name | Deloitte & Touche LLP |
Auditor Location | Las Vegas, Nevada |
Auditor Firm ID | 34 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 213,502 | $ 48,927 |
Receivables | 20,693 | 16,616 |
Prepaid expenses | 5,059 | 2,429 |
Income tax receivable | 2,117 | 6,959 |
Other current assets | 413 | 2,854 |
Total current assets | 241,784 | 77,785 |
Property and equipment, net | 5,289 | 6,201 |
Internal-use software, net | 43,267 | 38,756 |
Goodwill | 5,059 | 5,059 |
Intangibles, net | 18,755 | 1,624 |
Deferred income taxes | 6,282 | 3,109 |
Other long-term assets | 14,408 | 1,927 |
Total non-current assets | 93,060 | 56,676 |
Total assets | 334,844 | 134,461 |
Current liabilities: | ||
Accounts payable | 7,793 | 4,717 |
Warrant liabilities | 6,521 | 0 |
Accrued liabilities | 15,599 | 29,089 |
Total current liabilities | 29,913 | 33,806 |
Minimum guarantee liability | 0 | 300 |
Deferred income taxes | 0 | 2,970 |
Other long-term liabilities | 1,464 | 1,306 |
Total non-current liabilities | 1,464 | 4,576 |
Total liabilities | 31,377 | 38,382 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, $0.0001 par value (100,000 shares authorized, 0 shares issued and outstanding as of December 31, 2021 and December 31, 2020) | 0 | 0 |
Additional paid-in capital | 268,522 | 71,786 |
Retained earnings | 34,539 | 23,802 |
Accumulated other comprehensive income | 393 | 481 |
Total stockholders’ equity | 303,467 | 96,079 |
Total liabilities and stockholders’ equity | 334,844 | 134,461 |
Class A common stock | ||
Stockholders’ equity: | ||
Common stock | 11 | 8 |
Class B common stock | ||
Stockholders’ equity: | ||
Common stock | $ 2 | $ 2 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (USD per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 100,000,000 | 100,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Class A common stock | ||
Common stock, par value (USD per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 2,000,000,000 | 2,000,000,000 |
Common stock, shares issued | 110,066,000 | 74,421,000 |
Common stock, shares outstanding | 110,066,000 | 74,421,000 |
Class B common stock | ||
Common stock, par value (USD per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 25,000,000 | 25,000,000 |
Common stock, shares issued | 16,130,000 | 18,977,000 |
Common stock, shares outstanding | 16,130,000 | 18,977,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Income Statement [Abstract] | ||||
Net revenue | $ 287,419 | $ 269,882 | $ 239,421 | |
Operating expenses: | ||||
Cost of revenue | [1] | 91,642 | 91,469 | 80,267 |
Selling and marketing | 79,042 | 57,124 | 59,931 | |
Research and development | 61,343 | 51,696 | 38,986 | |
General and administrative | 27,902 | 16,960 | 16,712 | |
Depreciation and amortization | 27,398 | 22,192 | 25,154 | |
Restructuring and related | 3,082 | 20,092 | 1,234 | |
Total operating costs and expenses | 290,409 | 259,533 | 222,284 | |
Income (loss) from operations | (2,990) | 10,349 | 17,137 | |
Other income (expense), net: | ||||
Change in fair value of warrant liabilities | 13,933 | 0 | 0 | |
Interest expense, net | (235) | (142) | (264) | |
Other income (expense), net | (229) | 929 | 716 | |
Total other income, net | 13,469 | 787 | 452 | |
Income before income taxes | 10,479 | 11,136 | 17,589 | |
Income tax benefit (expense) | 258 | 1,671 | (3,975) | |
Net income | $ 10,737 | $ 12,807 | $ 13,614 | |
Net income per share attributable to Class A and Class B common stockholders: | ||||
Basic (USD per share) | $ 0.10 | $ 0.14 | $ 0.15 | |
Diluted (USD per share) | $ 0.09 | $ 0.12 | $ 0.14 | |
Weighted average shares of common stock outstanding: | ||||
Basic (shares) | 111,718 | 92,917 | 92,439 | |
Diluted (shares) | 124,898 | 103,203 | 97,031 | |
[1] | Amounts exclude depreciation and amortization. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 10,737 | $ 12,807 | $ 13,614 | |
Other comprehensive income (loss): | ||||
Change in foreign currency translation adjustment | [1] | (88) | 383 | 179 |
Total other comprehensive (loss) income | (88) | 383 | 179 | |
Comprehensive income | $ 10,649 | $ 13,190 | $ 13,793 | |
[1] | These amounts are presented gross of the effect of income taxes. The total change in foreign currency translation adjustment and the corresponding effect of income taxes are immaterial. |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Previously reported | Retroactive application of reverse recapitalization | Class A common stock | Class B common stock | Preferred Stock | Preferred StockPreviously reported | Preferred StockRetroactive application of reverse recapitalization | Common Stock | Common StockPreviously reported | Common StockRetroactive application of reverse recapitalization | Common StockClass A common stock | Common StockClass A common stockPreviously reported | Common StockClass A common stockRetroactive application of reverse recapitalization | Common StockClass B common stock | Common StockClass B common stockPreviously reported | Common StockClass B common stockRetroactive application of reverse recapitalization | Additional Paid-In Capital | Additional Paid-In CapitalPreviously reported | Additional Paid-In CapitalRetroactive application of reverse recapitalization | Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss)Previously reported | Retained Earnings | Retained EarningsPreviously reported |
Beginning balance (shares) at Dec. 31, 2018 | 0 | 162,596 | (162,596) | 0 | 229,214 | (229,214) | 72,331 | 0 | 72,331 | 18,977 | 0 | 18,977 | ||||||||||||
Beginning balance at Dec. 31, 2018 | $ 65,146 | $ 65,146 | $ 0 | $ 0 | $ 8 | $ (8) | $ 0 | $ 11 | $ (11) | $ 8 | $ 0 | $ 8 | $ 2 | $ 0 | $ 2 | $ 59,120 | $ 59,111 | $ 9 | $ (81) | $ (81) | $ 6,097 | $ 6,097 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||
Net income | 13,614 | $ 10,819 | $ 2,795 | 13,614 | ||||||||||||||||||||
Exercise of stock options (shares) | 1,362 | |||||||||||||||||||||||
Exercise of stock options | 754 | 754 | ||||||||||||||||||||||
Stock-based compensation | 6,796 | 6,796 | ||||||||||||||||||||||
Repurchase and retirement of common stock (shares) | (2,230) | |||||||||||||||||||||||
Repurchase and retirement of common stock | (6,176) | (6,176) | ||||||||||||||||||||||
Other comprehensive (loss) income | 179 | 179 | ||||||||||||||||||||||
Ending balance (shares) at Dec. 31, 2019 | 0 | 162,596 | (162,596) | 0 | 225,490 | (225,490) | 71,463 | 0 | 71,463 | 18,977 | 0 | 18,977 | ||||||||||||
Ending balance at Dec. 31, 2019 | 80,313 | 80,313 | 0 | $ 0 | $ 8 | $ (8) | $ 0 | $ 11 | $ (11) | $ 8 | $ 0 | $ 8 | $ 2 | $ 0 | $ 2 | 66,670 | 66,661 | 9 | 98 | 98 | 13,535 | 13,535 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||
Net income | 12,807 | 10,191 | 2,616 | 12,807 | ||||||||||||||||||||
Exercise of stock options (shares) | 3,801 | |||||||||||||||||||||||
Exercise of stock options | 992 | 992 | ||||||||||||||||||||||
Stock-based compensation | 4,124 | 4,124 | ||||||||||||||||||||||
Repurchase and retirement of common stock (shares) | (843) | |||||||||||||||||||||||
Repurchase and retirement of common stock | (2,540) | (2,540) | ||||||||||||||||||||||
Other comprehensive (loss) income | 383 | 383 | ||||||||||||||||||||||
Ending balance (shares) at Dec. 31, 2020 | 0 | 162,596 | (162,596) | 0 | 238,186 | (238,186) | 74,421 | 0 | 74,421 | 18,977 | 0 | 18,977 | ||||||||||||
Ending balance at Dec. 31, 2020 | 96,079 | $ 96,079 | $ 0 | $ 0 | $ 8 | $ (8) | $ 0 | $ 12 | $ (12) | $ 8 | $ 0 | $ 8 | $ 2 | $ 0 | $ 2 | 71,786 | $ 71,776 | $ 10 | 481 | $ 481 | 23,802 | $ 23,802 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||
Net income | 10,737 | $ 9,182 | $ 1,555 | 10,737 | ||||||||||||||||||||
Business Combination and PIPE Financing (shares) | 32,969 | |||||||||||||||||||||||
Business Combination and PIPE Financing | $ 189,215 | $ 3 | $ (2,847) | 189,212 | ||||||||||||||||||||
Exercise of stock options (shares) | 2,676 | 2,676 | ||||||||||||||||||||||
Exercise of stock options | $ 2,412 | 2,412 | ||||||||||||||||||||||
Stock-based compensation | 5,112 | 5,112 | ||||||||||||||||||||||
Other comprehensive (loss) income | (88) | (88) | ||||||||||||||||||||||
Ending balance (shares) at Dec. 31, 2021 | 0 | 0 | 110,066 | 16,130 | ||||||||||||||||||||
Ending balance at Dec. 31, 2021 | $ 303,467 | $ 0 | $ 0 | $ 11 | $ 2 | $ 268,522 | $ 393 | $ 34,539 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | |||
Net income | $ 10,737 | $ 12,807 | $ 13,614 |
Adjustments: | |||
Depreciation and amortization | 27,398 | 22,192 | 25,154 |
Amortization of loan costs | 368 | 0 | 59 |
Stock-based compensation expense | 4,455 | 3,519 | 5,884 |
Change in fair value of warrant liabilities | (13,933) | 0 | 0 |
Deferred income tax (benefit) expense | (2,286) | (3,568) | 2,456 |
Other | 1,545 | (467) | (315) |
Changes in operating assets and liabilities | |||
Receivables | (3,985) | (2,367) | (517) |
Prepaid expenses and other current assets | 90 | (8) | (202) |
Income tax receivable | 4,842 | (4,902) | (938) |
Accounts payable & accrued liabilities | 3,877 | 21,975 | (1,591) |
Other | 768 | (781) | (7,516) |
Net cash provided by operating activities | 33,876 | 48,400 | 36,088 |
Cash flows from investing activities: | |||
Purchase of property and equipment | (2,010) | (1,847) | (4,296) |
Additions to internal-use software | (25,890) | (25,155) | (20,996) |
Payments to Acquire Intangible Assets | (13,000) | 0 | 0 |
Additions to notes receivable and other investments | (9,536) | 0 | 0 |
Advance payment related to license agreements | (8,000) | 0 | 0 |
Proceeds from notes receivable | 1,500 | 0 | 0 |
Net cash used in investing activities | (56,936) | (27,002) | (25,292) |
Cash flows from financing activities: | |||
Proceeds from stock option exercises | 2,412 | 992 | 754 |
Repurchases of common stock for retirement | 0 | (2,540) | (6,176) |
Net proceeds from Business Combination | 185,170 | 0 | 0 |
Other | (690) | (2,087) | (1,926) |
Net cash provided by (used in) financing activities | 186,892 | (3,635) | (7,348) |
Foreign currency translation | 743 | 142 | (26) |
Net change in cash and cash equivalents | 164,575 | 17,905 | 3,422 |
Cash and cash equivalents at beginning of period | 48,927 | 31,022 | 27,600 |
Cash and cash equivalents at end of period | 213,502 | 48,927 | 31,022 |
Supplemental cash flow disclosures: | |||
Interest paid | 125 | 53 | 233 |
Income taxes paid, net of (refunds) | (4,321) | 7,015 | 2,046 |
Non-cash investing and financing activities: | |||
Capitalization of stock-based compensation | 657 | 605 | 912 |
Noncash additions to intangible assets related to license agreements | 5,000 | 0 | 0 |
Reduction of notes receivable in exchange for internal-use software | 1,754 | 0 | 0 |
Settlement of MGM Profit Share liability through the issuance of shares of Class A common stock | $ 20,000 | $ 0 | $ 0 |
BACKGROUND AND BASIS OF PRESENT
BACKGROUND AND BASIS OF PRESENTATION | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BACKGROUND AND BASIS OF PRESENTATION | BACKGROUND AND BASIS OF PRESENTATION Organization and Description of Business PLAYSTUDIOS, Inc., formerly known as Acies Acquisition Corp. (the "Company" or "PLAYSTUDIOS"), was incorporated on August 14, 2020 as a Cayman Islands exempted company, and domesticated into a Delaware corporation on June 21, 2021 (the "Domestication"). The Company's legal name became PLAYSTUDIOS, Inc. following the closing of the business combination discussed in Note 3— Business Combination . The prior period financial information represents the financial results and conditions of Old PLAYSTUDIOS (as defined in Note 3— Business Combination ). The Company develops and operates online and mobile social gaming applications (“games” or “game”) each of which incorporate a unique loyalty program offering “real world” rewards provided by a collection of awards partners. The Company’s games are free-to-play and available via the Apple App Store, Google Play Store, Amazon Appstore, and Facebook (collectively, “platforms” or “platform operators”). The Company creates games based on its own original content as well as third-party licensed brands. The Company generates revenue through the in-game sale of virtual currency and through advertising. Unless the context indicates otherwise, all references herein to “PLAYSTUDIOS,” the “Company,” “we,” “us,” and “our” are used to refer collectively to PLAYSTUDIOS, Inc. and its subsidiaries. Basis of Presentation and Consolidation The accompanying consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The consolidated financial statements include the accounts of PLAYSTUDIOS, Inc. and its consolidated subsidiaries. In the opinion of management, all adjustments considered necessary for a fair presentation have been recorded within the accompanying financial statements, and all intercompany balances and transactions have been eliminated upon consolidation. Certain reclassifications in these financial statements have been made to comply with U.S. GAAP applicable to public companies and SEC Regulation S-X. Pursuant to the Business Combination as discussed in Note 3— Business Combination , the Business Combination was accounted for as a reverse recapitalization in accordance with U.S. GAAP. Under this method of accounting, Acies was treated as the “acquired” company for financial reporting purposes and the consolidated financial statements represent the accounts of Old PLAYSTUDIOS “as if” Old PLAYSTUDIOS is the predecessor to the Company. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts in the consolidated financial statements and notes thereto. Significant estimates and assumptions reflected in the Company’s consolidated financial statements include the estimated consumption rate of virtual currency that is used in the determination of revenue recognition, useful lives of property and equipment and definite-lived intangible assets, the expensing and capitalization of research and development costs for internal-use software, assumptions used in accounting for income taxes, stock-based compensation, and the evaluation of goodwill and long-lived assets for impairment. The Company believes the accounting estimates are appropriate and reasonably determined. Due to the inherent uncertainties in making these estimates, actual amounts could differ materially. Segments Operating segments are defined as components of an entity for which discrete financial information is available, and that is regularly reviewed by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources to an individual segment and in assessing performance. The CODM, the Company’s Chief Executive Officer, reviews financial information on a consolidated basis for purposes of evaluating performance and allocating resources. As such, the Company has one operating and reportable segment. Emerging Growth Company At December 31, 2021, the Company qualified as an “emerging growth company,” as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), and the Company has taken and may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002, reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved. Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies are required to comply with the new or revised standards. The JOBS Act provides that an emerging growth company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has opted to take advantage of such extended transition period available to emerging growth companies which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company can adopt the new or revised standard at the time private companies adopt the new or revised standard. As a result of the Company's qualification as an emerging growth company, the Company does not expect to adopt any accounting pronouncements currently deferred based on private company standards until a year subsequent to 2022. The Company will reevaluate its eligibility to retain emerging growth company status at the end of its second quarter of 2022, and otherwise as required. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand and highly liquid investments with an original maturity of three months or less from the date of purchase and are stated at the lower of cost or market value. Financial instruments that potentially subject us to concentrations of credit risk consist of cash and cash equivalents and receivables. The Company maintains cash and cash equivalent balances at several banks. Cash accounts located in the U.S. are insured by the Federal Deposit Insurance Corporation (FDIC). Although balances may exceed amounts insured by the FDIC, the Company believes that it is not exposed to any significant credit risk related to its cash or cash equivalents and has not experienced any losses in such accounts. Receivables and Allowance for Doubtful Accounts The Company’s receivables consist primarily of amounts due from social and mobile game platform operators, including Apple, Google, Facebook, and Amazon. Accounts receivable are typically non-interest bearing and are initially recorded at cost. The Company regularly reviews accounts receivable, considers current economic conditions and the financial positions of the Company’s platform operators. Accounts are written off when the Company deems the account to be uncollectible. Recoveries of accounts previously written off are recorded when received. The Company reserves an estimated amount for receivables that may not be collected to reduce receivables to their net carrying amount, which approximates fair value. Methodologies for estimating the allowance for doubtful accounts range from specific reserves to various percentages applied to aged receivables. Historical collection rates are considered in determining reserves. Property and Equipment, net The Company states property and equipment at cost net of accumulated depreciation. The Company capitalizes the costs of improvements that extend the life of the asset, while costs of repairs and maintenance are charged to expense as incurred. Gains or losses on the disposition of property and equipment are included in the determination of income. Computer equipment, furniture, and fixtures are depreciated using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized over the shorter of the estimated useful life of the asset or the related lease term. Estimated Useful Life Computer equipment 3 years Purchased software 3 years Furniture and fixtures 3 - 7 years Leasehold improvements Lesser of 10 years or remaining lease term Property and equipment are reviewed for impairment whenever events and circumstances indicate that the carrying value of an asset may not be recoverable. Recoverability of these assets is measured by a comparison of the carrying amounts to the future undiscounted cash flows the assets are expected to generate. If property and equipment are considered to be impaired, the impairment to be recognized equals the amount by which the carrying value of the asset exceeds its fair market value. If the Company reduces the estimated useful life assumption for any asset, the remaining unamortized balance would be amortized or depreciated over the revised estimated useful life. Internal-Use Software The Company recognizes internal-use software development costs in accordance with Accounting Standards Codification (ASC) 350-40, Internal-Use Software . Capitalized costs include consulting fees, payroll and payroll-related costs, and stock-based compensation for employees who devote time to the Company’s internal-use software projects. Capitalization begins when the preliminary project stage is complete and the Company commits resources to the software project and continues during the application development stage. Capitalization ceases when the software has been tested and is ready for its intended use. Qualified costs incurred during the post-implementation/post-operation stage of the Company’s software applications relating to upgrades and enhancements are capitalized to the extent it is probable that they will result in added functionality. Costs that cannot be separated between maintenance of, and minor upgrades and enhancements to, internal-use software are expensed as incurred. Capitalized internal-use software development costs are amortized on a straight-line basis over a three-year estimated useful life. The Company believes that a straight-line basis for amortization best represents the pattern through which the Company derives value from internal-use software. The Company evaluates the useful lives of these assets and test for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. Goodwill In accordance with Accounting Standards Update (ASU) No. 2014-02, Intangibles—Goodwill and Other (Topic 350): Accounting for Goodwill , goodwill is recorded as the excess of the purchase price over acquisition-date fair value of identifiable tangible and intangible assets and liabilities. Goodwill is tested for impairment annually as of October 1st of each year, or when a triggering event occurs. If a triggering event occurs, qualitative factors are first assessed to determine whether a quantitative impairment test is required. Any impairment would be recognized for the difference between the fair value and the carrying amount limited to the carrying amount of goodwill. Impairment testing for goodwill is performed at the reporting unit level. The Company has identified a single reporting unit based on the Company’s management structure. Intangible Assets Intangible assets are classified into one of the two categories: (1) intangible assets with definite lives subject to amortization and (2) intangible assets with indefinite lives not subject to amortization. For definite-lived intangible assets, amortization is recorded using the straight-line method, which materially approximates the pattern of the assets’ use. The Company continually evaluates whether events and circumstances have occurred that indicate the remaining estimated useful life of intangible assets may warrant revision or that the remaining balance may not be recoverable. These factors may include a significant deterioration of operating results, changes in business plans, or changes in anticipated cash flows. The estimated useful lives of the Company’s intangible assets are as follows: Estimated Useful Life Licenses 3 - 5 years Trade names 5 years When factors indicate that a definite-lived intangible asset should be evaluated for possible impairment, the Company reviews intangible assets to assess recoverability from future operations using undiscounted cash flows. If future undiscounted cash flows are less than the carrying value, an impairment is recognized in earnings to the extent that the carrying value exceeds fair value. For indefinite-lived intangible assets, the Company conducts impairment tests annually or more frequently if events or changes in circumstances indicate that it is more likely than not that the fair value of an indefinite-lived asset is less than its carrying value, or when circumstances no longer continue to support an indefinite useful life. If a triggering event occurs, qualitative factors are first assessed to determine whether a quantitative impairment test is required. If a quantitative test is required, the fair value of the intangible is compared to the asset’s carrying amount. Any impairment would be recognized for the difference between the fair value and the carrying amount. The Company performs its annual impairment testing as of October 1 of each year. Warrant Liabilities The Company evaluates all of its financial instruments, including issued warrants, to determine if such instruments are liability classified, pursuant to ASC Topic 480, Distinguishing Liabilities from Equity (“ASC 480”) or derivatives or contain features that qualify as embedded derivatives pursuant to ASC Topic 815, Derivatives and Hedging (“ASC 815”). The classification of instruments, including whether such instruments should be recorded as liabilities or as equity, is re-assessed at the end of each reporting period. Issuance costs incurred with the Business Combination that are attributable to liability classified warrants are expensed as incurred. Fair Value Measurements The carrying amounts of the Company’s financial instruments, including accounts receivable, accounts payable, and accrued liabilities, approximate fair value because of their short-term maturities. According to ASC 820, Fair Value Measurements and Disclosures, fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. The fair value hierarchy establishes three tiers, which prioritize the inputs used in measuring fair value as follows: Level 1 —Observable inputs, such as quoted prices in active markets for identical assets or liabilities; Level 2 —Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and Level 3 —Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. Entities are permitted to choose to measure certain financial instruments and other items at fair value. The Company has not elected the fair value measurement option for any of the Company’s assets or liabilities that meet the criteria for this election. License Agreements & Minimum Guarantees The Company enters into long-term license agreements with third parties in which it is obligated to pay a minimum guaranteed amount of royalties, typically annually over the life of the contract. The Company accounts for the minimum guaranteed obligations within “Accrued liabilities” and “Other long-term liabilities” at the onset of the license arrangement and record a corresponding licensed asset within “Intangibles, net” in the accompanying Consolidated Balance Sheets. The licensed intangible assets related to the minimum guaranteed obligations are amortized over the term of the license agreement with the amortization expense recorded in “Depreciation and amortization” in the accompanying Consolidated Statements of Operations. The Company classifies minimum royalty payment obligations as current liabilities to the extent they are contractually due within the next 12 months. The long-term portion of the liability related to the minimum guaranteed obligations is reduced as royalty payments are made as required under the license agreement. The Company assesses the recoverability of license agreements whenever events arise or circumstances change that indicate the carrying value of the licensed asset may not be recoverable. Recoverability of the licensed asset and the amount of impairment, if any, are determined using the Company’s policy for intangible assets with finite useful lives. Revenue Recognition In May 2014, the Financial Accounting Standards Board (FASB) issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). ASU 2014-09 combined with all subsequent amendments, which is collectively ASC 606, Revenue from Contracts with Customers, provides guidance outlining a single five-step comprehensive revenue model in accounting for revenue from contracts with customers which supersedes all existing revenue recognition guidance, including industry-specific guidance. ASU 2014-09 also required expanded disclosures relating to the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. On January 1, 2019, the Company adopted the new accounting standard and related amendments (collectively, the “new revenue accounting standard”) using the modified retrospective method. The Company determines revenue recognition by: • identifying the contract, or contracts, with a customer; • identifying the performance obligations in each contract; • determining the transaction price; • allocating the transaction price to the performance obligations in each contract; and • recognizing revenue when, or as, the Company satisfies performance obligations by transferring the promised goods or services. Virtual Currency The Company develops and operates free-to-play games which are downloaded and played on social and mobile platforms. Players may collect virtual currency free of charge through the passage of time or through targeted marketing promotions. Additionally, players can send free “gifts” of virtual currency to their friends through interactions with certain social platforms. Players may also purchase additional virtual currency through accepted payment methods offered by the respective platform. Once a purchase is completed, the virtual currency is deposited into the player’s account and are not separately identifiable from previously purchased virtual currency obtained by the player for free. Once obtained, virtual currency (either free or purchased) cannot be redeemed for cash nor exchanged for anything other than gameplay. When virtual currency is consumed in our games, the player could “win” and would be awarded additional virtual currency or could “lose” and lose the future use of that virtual currency. As the player does not receive any additional benefit from our games, nor is the player entitled to any additional rights once the player’s virtual currency is substantially consumed, the Company has concluded that the virtual currency represents consumable goods. Players can earn loyalty points through a variety of activities, including but not limited to playing the Company’s games, engaging with in-game advertising, engaging with marketing emails, and logging into the game. The loyalty points can be redeemed for rewards offered by the Company’s awards partners. There is no obligation for the Company to pay or otherwise compensate the Company’s awards partners for any player redemptions under the Company’s awards partner agreements. In addition, both paying and non-paying players can earn loyalty points. Therefore, the loyalty points earned by players are marketing offers and do not provide players with material rights. Accordingly, the loyalty points do not require any allocation to the transaction price of virtual currency. Additionally, certain of the Company’s games participate in an additional program which ranks players into different tiers based on tier points earned during a given time frame. Tier points can be earned through a variety of player engagement activities, including but not limited to logging into our games, achieving multi-day log-in streaks, collecting hourly bonuses, and purchasing virtual currency bundles. Depending on the tier, players are granted access to special benefits at the Company’s discretion. Similar to loyalty points that are redeemable into real-world rewards, the tier points are not awarded as a result of a contract with a customer since both paying and non-paying players can earn these tier points. As a result, the tier points earned by players do not provide players with material rights and do not require any allocation to the transaction price of virtual currency. The Company has the performance obligation to display and provide access to the virtual currency purchased by the Company’s player within the game whenever the player accesses the game until the virtual currency is consumed. Payment is required at the time of purchase and the transaction price is fixed. The transaction price, which is the amount paid for the virtual currency by the player is allocated entirely to this single performance obligation. As virtual currency represents consumable goods, the Company recognizes revenue as the virtual currency is consumed over the estimated consumption period. Since the Company is unable to distinguish between the consumption of purchased or free virtual currency, the Company must estimate the amount of outstanding purchased virtual currency at each reporting date based on player behavior. The Company has determined through a review of player behavior that players who purchase virtual currency generally are not purchasing additional virtual currency if their existing virtual currency balances have not been substantially consumed. As the Company can track the duration between purchases of virtual currency for individual players, the Company is able to reliably estimate the period over which virtual currency is consumed. Based upon an analysis of players’ historical play behavior, the timing difference between when virtual currency is purchased by a player and when such virtual currency is consumed in gameplay is relatively short, currently one to seven days with an average consumption period of approximately one day. The Company recognizes revenue from in-game purchases of virtual currency over this estimated average period between when the virtual currency is purchased and consumed. If applicable, the Company records the unconsumed virtual currency in “Deferred revenue” and records the prepaid payment processing fees associated with this deferred revenue in “Prepaid expenses”. The Company continues to gather detailed player behavior and assess this data in relation to its revenue recognition policy. To the extent the player behavior changes, the Company reassesses its estimates and assumptions used for revenue recognition prospectively on the basis that such changes are caused by new factors indicating a change in player behavior patterns. Advertising Revenue The Company has contractual relationships with various advertising service providers for advertisements within the Company’s games. Advertisements can be in the form of an impression, click-throughs, banner ads, or offers. Offers are advertisements where the players are rewarded with virtual currency for watching a short video. The Company has determined the advertising service provider to be its customer and displaying the advertisements within its games is identified as the single performance obligation. Revenue from advertisements and offers are recognized at a point in time when the advertisements are displayed, or when the player has completed the offer as the advertising service provider simultaneously receives and consumes the benefits provided from these services. The price can be determined by the applicable evidence of the arrangement, which may include a master contract or a third-party statement of activity. The transaction price is generally the product of the advertising units delivered (e.g. impressions, videos viewed) and the contractually agreed upon price per advertising unit. Further, the price per advertising unit can also be based on revenue share percentages stated in the contract. The number of advertising units delivered is determined at the end of each month so there is no uncertainty about the transaction price. Payment terms are stipulated as a specific number of days subsequent to end of the month, ranging from 45 to 60 days. Principal Agent Considerations The Company’s games are played on various social and mobile third-party platforms for which such third parties collect monies from players and remit net proceeds after deducting payment processing fees. The Company is primarily responsible for providing access to the virtual currency, has control over the content and functionality of games before they are accessed by players, and has the discretion to establish the pricing for the virtual currency. Therefore, the Company concluded that it is the principal and as a result, revenues are reported gross of payment processing fees. Payment processing fees are recorded as a component of “Cost of revenue” in the accompanying Consolidated Statements of Operations. The Company reports its advertising revenue net of amounts retained by advertising service providers. Cost of Revenue Cost of revenue relates to direct expenses incurred to generate revenue from online and mobile games and are recorded as incurred. The Company’s cost of revenue consists primarily of payment processing fees, hosting and data center costs related to operating its games, and royalties for licensed games. Payment processing fees consist of fees paid to third-party social and mobile platform operators. If applicable, other than the deferral of payment processing fees associated with deferred revenues, payment processing fees are expensed as incurred. Research and Development The Company incurs various direct costs in relation to the development of future social and mobile games along with costs to improve current social and mobile games. Research and development costs consist primarily of payroll and related personnel costs, stock-based compensation, and consulting fees. The Company evaluates research and development costs incurred to determine whether the costs relate to the development of software and are, therefore, qualified to be capitalized under ASC 350-40, Internal-Use Software . All other research and development costs are expensed as incurred. Advertising Advertising expense was $70.3 million, $49.3 million and $53.8 million for the years ended December 31, 2021, 2020, and 2019, respectively. Advertising expense is included in “Selling and marketing” expenses in the Consolidated Statements of Operations. Share-Based Compensation The Company measures compensation expense for all share-based awards at fair value on the date of grant and recognizes compensation expense over the service period on a straight-line basis for awards expected to vest. The Company uses the Black-Scholes-Merton option-pricing model to determine the fair value for option awards. In valuing our option awards, the Company makes assumptions about risk-free interest rates, dividend yields, volatility and weighted-average expected lives. The Company accounts for forfeitures as they occur. Risk-free interest rates are derived from U.S. Treasury securities as of the option award grant date. Expected dividend yield is based on our historical cash dividend payments, which have been zero to date. The expected volatility for shares of the Company's Class A common stock is estimated using our historical volatility. The weighted-average expected life of the option awards is estimated based on our historical exercise data. The Company's dual class structure was created upon the Domestication (as defined in Note 3— Business Combination ). The Class B common stock including Class B common stock underlying vested stock options, held by Mr. Andrew Pascal, the Company's Chairman and Chief Executive Officer, or his affiliates (the "Founder Group") carry a super vote premium. As the Founder Group did not have control of Old PLAYSTUDIOS prior to the Business Combination, and Mr. Pascal is an employee of the Company, the incremental value resulting from the super vote premium is accounted for as incremental compensation costs. The Company utilized the market approach by observing other market participants with (i) dual class structures, (ii) super vote premiums for a single class and (iii) both classes trading on a national exchange. Based on the observed data, management selected a premium for the Class B common stock and the stock options held by members of the Founder Group. Foreign Currency Translation and Transactions The functional currency of each of the Company’s wholly owned foreign subsidiaries is the applicable local currency. The translation of foreign currencies into U.S. dollars is performed for assets and liabilities using current foreign currency exchange rates in effect at the consolidated balance sheet date and for revenue and expense accounts using average foreign currency exchange rates during the year. Capital accounts are translated at historical foreign currency exchange rates. Translation gains and losses are included in stockholders’ equity as a component of accumulated other comprehensive income. Adjustments that arise from foreign currency exchange rate changes on transactions, primarily driven by intercompany transactions, denominated in a currency other than the functional currency are included in “Other income (expense), net” in the Consolidated Statements of Operations. Income Taxes The Company accounts for income taxes in accordance with ASC 740, Income Taxes , which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in its consolidated financial statements or tax returns. Under ASC 740, the Company determines deferred tax assets and liabilities based on the temporary difference between the consolidated financial statements and tax bases of assets and liabilities using the enacted tax rates in effect for the year in which it expects the differences to be recovered or settled. The Company establishes valuation allowances when necessary, based on the weight of the available positive and negative evidence, to reduce deferred tax assets to the amount that is more likely than not to be realized. The Company accounts for uncertain tax positions in accordance with ASC 740, which requires companies to adjust their consolidated financial statements to reflect only those tax positions that are more likely than not to be sustained upon examination by taxing authorities based on the technical merits of the issue. ASC 740 prescribes a comprehensive model for the consolidated financial statement recognition, measurement, presentation, and disclosure of uncertain tax positions taken or expected to be taken in income tax returns. The Company recognizes interest and penalties related to unrecognized tax benefits in the provision for income taxes. We have elected to account for the impact of the global intangible low-taxed income (GILTI) inclusion and base erosion anti-avoidance tax (BEAT) based on the period cost method. Net Income Per Share Net income per share (“EPS”) is calculated using the two-class method required for participating securities and multiple classes of common stock. Basic income per share is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding. Net income available to common stockholders represents net income attributable to common stockholders reduced by the allocation of earnings to participating securities. Diluted income per share adjusts basic loss per share for the potentially dilutive impact of stock options, warrants, restricted stock, and contingently issuable earnout shares. The dilutive effect of stock options, warrants, restricted stock, and contingently issuable earnout shares is computed using the treasury stock method. Diluted EPS excludes all dilutive potential shares if their effect is anti-dilutive. EPS calculations for all periods prior to the Business Combination have been retrospectively adjusted for the equivalent number of shares outstanding immediately after the Business Combination to effect the reverse recapitalization. Subsequent to the Business Combination, net income per share was calculated based on the weighted average number of common stock then outstanding . Recently Issued Accounting Pronouncements Not Yet Adopted In February 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016-02, Leases (Topic 842) . The amended guidance is intended to increase transparency and comparability among organizations by recognizing lease assets and liabilities in the Consolidated Balance Sheets and disclosing key information about leasing arrangements. The adoption of this guidance is expected to result in a significant portion of the Company’s operating leases, where the Company is the lessee, to be recognized in the Company’s Consolidated Balance Sheets. The guidance requires lessees and lessors to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. This guidance is effective for the Company for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022, with earlier adoption permitted. The Company is currently evaluating the impact of adopting this guidance. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326). The new guidance replaces the incurred loss impairment methodology in current guidance with a current expected credit loss model (“CECL”) that incorporates a broader range of reasonable and supportable information including the forward-looking information. This guidance is effective for the Company for fiscal years beginning after December 15, 2022, including interim periods within that annual reporting period, with early adoption permitted. Application of the amendments is through a cumulative-effect adjustment to retained earnings as of the effective date. The Company is currently evaluating the impact of adopting this guidance. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes . The new guidance removes certain exceptions for recognizing deferred taxes for investments, performing intra-period allocation and calculating income taxes in interim periods. It also adds guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. This guidance is effective for the Company for fiscal years beginning after December 15, 2021, including interim periods within that annual reporting period, with early adoption permitted with simultaneous adoption of all provisions of the new standard. The Company is currently evaluating the impact of adopting this guidance. Recently Adopted Accounting Pronouncements In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment , which simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. Under the new amendment, the Company is required to perform its annual or interim goodwill impairment test by comparing the fair value of the reporting unit with its carrying amount, and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. The guidance is effective for the Company for fiscal years beginning after December 15, 2022, including interim periods within that annual period, with early adoption permitted. The Company early adopted this guidance prospectively on January 1, 2021, and it did not have any impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, Customer’s Accounting for Implementation costs Incurred in a Cloud Computing Arrangement that is a Service Contract , that requires implementation costs incurred by customers in cloud computing arrangements to be deferred and recognized over the term of the arrangement, if those costs would be capitalized by the customer in a software licensing arrangement under the internal-use software guidance in ASC Topic 350, Intangibles—Goodwill and Other . This guidance is effective for the Company for fiscal years beginning after December 15, 2020, including interim periods within that annual reporting period, with early adoption permitted. The Company early adopted this guidance prospectively on January 1, 2020, and it did not have a material impact on the Company’s consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting . This temporary guidance provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions that reference London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued. ASU 2020-04 is effective as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020 and may be applied prospectively through December 31, 2022. The Company adopted this guidance prospectively on January 1, 2021, and it did not have any impact on the Company’s consolidated financial statements. |
BUSINESS COMBINATION
BUSINESS COMBINATION | 12 Months Ended |
Dec. 31, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
BUSINESS COMBINATION | BUSINESS COMBINATION Business Combination On June 21, 2021 (the “Closing Date”), Acies Acquisition Corp., a Cayman Islands exempted company (prior to the Closing Date, “Acies”), consummated the previously announced business combination (“Business Combination”) with PlayStudios, Inc., a Delaware corporation (“Old PLAYSTUDIOS”) pursuant to the Agreement and Plan of Merger, dated as of February 1, 2021 (the “Merger Agreement”), by and among Acies, Catalyst Merger Sub I, Inc., a Delaware corporation and a direct wholly owned subsidiary of Acies (“First Merger Sub”), Catalyst Merger Sub II, LLC, a Delaware limited liability company and a direct wholly owned subsidiary of Acies (“Second Merger Sub”), and Old PLAYSTUDIOS. In connection with the closing of the Business Combination, Acies filed a notice of deregistration with the Cayman Islands Registrar of Companies, together with the necessary accompanying documents, and filed a certificate of incorporation (the “Certificate of Incorporation”) and a certificate of corporate domestication with the Secretary of State of the State of Delaware, under which Acies was domesticated and continues as a Delaware corporation, changing its name to PLAYSTUDIOS, Inc. (the “Domestication”). As a consequence of filing the Certificate of Incorporation, the Company adopted a dual class structure, comprised of the Company’s Class A common stock, which is entitled to one vote per share, and the Company’s Class B common stock, which is entitled to 20 votes per share. See Note 16— Stockholders' Equity for further discussion on the dual class structure. As a result of and upon the effective time of the Domestication, among other things, (1) each of the then-issued and outstanding Class A ordinary shares, par value $0.0001 per share, of Acies (the “Acies Class A ordinary shares”), automatically converted, on a one-for-one basis, into a share of the Class A common stock, par value $0.0001 per share, of the Company (the “Class A common stock”); (2) each then-issued and outstanding redeemable warrant of Acies automatically converted into a redeemable warrant (the "Warrants") to acquire one share of Class A common stock; and (3) each of the then-issued and outstanding units of Acies that had not been previously separated into the underlying Acies Class A ordinary shares and underlying Acies warrants upon the request of the holder thereof were cancelled and entitled the holder thereof to one share of Class A common stock and one-third of one Warrant. Any fractional Warrants for any holder of units were rounded down and canceled for no consideration. Following the Domestication, the following transactions (the “Transactions”) occurred: • First Merger Sub merged with and into Old PLAYSTUDIOS, with Old PLAYSTUDIOS surviving as a wholly owned subsidiary of Acies (the “First Merger”); • immediately following the First Merger, and as part of an integrated transaction with the First Merger, Old PLAYSTUDIOS merged with and into Second Merger Sub, with Second Merger Sub surviving as a wholly owned subsidiary of Acies (the “Second Merger” and, together with the First Merger, the “Mergers”); • as a result of the Mergers, among other things, each outstanding share of common stock of Old PLAYSTUDIOS (“PlayStudios Common Stock”) and each outstanding share of preferred stock of Old PLAYSTUDIOS (“PlayStudios Preferred Stock”) and, together with the "PlayStudios Common Stock," the "Old PLAYSTUDIOS Stock" as of the effective time of the First Merger (the “Effective Time”) were cancelled in exchange for the following: ◦ if the holder of such share made an election to receive cash, $2.33 in cash per share of Old PLAYSTUDIOS Stock subject to such cash election, provided that no holder could elect to receive cash for more than 15% of such holder's shares of Old PLAYSTUDIOS Stock; ◦ if the holder of such share did not make a cash election, the capital stock held by the holder was automatically canceled and converted into the right to receive 0.233 shares of the Company's common stock (the "Exchange Ratio"), rounded down to the nearest whole number of shares; • as a result of the Mergers, each outstanding share of PlayStudios Common Stock and PlayStudios Preferred Stock issued and outstanding immediately prior to the Effective Time as well as any outstanding unexercised vested options to purchase shares of PlayStudios Common Stock received the contingent right to receive the applicable Earnout Pro Rata Portion (as defined in the Merger Agreement) of an aggregate of 15.0 million additional shares of Class A common stock (the “Earnout Shares”), which right shall be contingent upon the closing price of the Class A common stock exceeding $12.50 and $15.00 per share, respectively, for any 20 trading days within any 30-trading day period commencing on or after November 18, 2021 and ending no later than June 21, 2026 (the Earnout Shares will also vest based on the price targets in connection with a sale of the Company) (each of the foregoing vesting events, an “Earnout Triggering Event”); and • as a result of the Mergers, each outstanding and unexercised option to purchase PlayStudios Common Stock, whether or not vested or exercisable, converted into an option to purchase a share of Class A common stock, except for any such option that was held by any member of the Founder Group, which converted into an option to purchase a share of Class B common stock, in each case with the same terms except for the number of shares exercisable thereunder and the exercise price, each of which were adjusted using the Exchange Ratio. In connection with the Business Combination, Acies entered into subscription agreements with certain investors ("PIPE Investors"), whereby it issued 25.0 million shares of Class A common stock at $10.00 per share (the "PIPE Shares") for an aggregate purchase price of $250.0 million (the "PIPE Financing"), which closed simultaneously with the consummation of the Business Combination. $20.0 million of the PIPE Financing was used to terminate the profit share provision of an agreement with MGM Resorts International, one of the PIPE Investors. The following table summarizes the total number of shares of common stock outstanding immediately following the Closing: Shares Acies public stockholders (1) 10,191 Sponsor (1)(2) 3,724 PLAYSTUDIOS stockholders (excluding the Founder Group) (3) 70,708 Founder Group (3) 16,130 PIPE Investors 25,000 Common Stock 125,753 Class A common stock 109,623 Class B common stock 16,130 (1) Excludes the shares of Class A common stock underlying the Warrants. Reflects the redemption of 11.3 million Acies Class A ordinary shares. (2) Includes 0.9 million shares of Class A common stock, held by Acies Acquisition, LLC (the "Sponsor") that are subject to forfeiture if certain earnout conditions are not satisfied, as the shares are issued and outstanding as of the Closing of the Business Combination. The 0.9 million shares do not have voting rights until the Earnout Triggering Events have occurred. (3) Excludes the shares of Class A and Class B common stock underlying stock options and the Earnout Shares, as they do not represent legally outstanding shares of common stock at Closing. In connection with the Business Combination, the Company incurred direct and incremental costs of $32.8 million related to the equity issuance, consisting primarily of investment banking and other professional fees, which were recorded to additional paid-in capital as a reduction of proceeds. The Company incurred approximately $1.4 million of expenses primarily related to advisory, legal, and accounting fees in conjunction with the Business Combination. Of this, $0.1 million and $1.3 million was recorded in general and administrative expenses on the consolidated statements of operations for the years ended December 31, 2021 and December 31, 2020, respectively. The aggregate consideration for the Business Combination was approximately $1,041.0 million, payable in the form of the Company's Class A and Class B common stock and cash. The following table summarizes the merger consideration (in thousands, except per share information): Consideration Cash consideration $ 102,020 Shares transferred at closing (1) 86,838 Value per share $ 10.00 Share consideration $ 868,380 Total consideration $ 970,400 Shares of common stock underlying vested options 7,060 Value per share $ 10.00 Total consideration for vested options 70,600 Aggregate consideration $ 1,041,000 (1) Excludes shares of common stock underlying stock options that are vested but unexercised as of the closing date of the Business Combination. As the shares do not represent legally outstanding shares of common stock at closing, they are excluded from the total consideration amount. The following table reconciles the elements of the Business Combination to the consolidated statements of cash flows for the year ended December 31, 2021: Cash - Acies Trust and cash (net of redemptions) $ 101,965 Cash - PIPE 230,000 Less: Cash consideration (102,020) Less: Transaction costs, net of proceeds received from exercises of Old PLAYSTUDIOS' warrants (44,775) Net Business Combination and PIPE Financing $ 185,170 Reverse Recapitalization The Business Combination was accounted for as a reverse recapitalization and Acies was treated as the “acquired” company for accounting purposes. The Business Combination was accounted as the equivalent of Old PLAYSTUDIOS issuing stock for the net assets of Acies, accompanied by a recapitalization. Accordingly, all historical financial information presented in these consolidated financial statements represents the accounts of Old PLAYSTUDIOS “as if” Old PLAYSTUDIOS is the predecessor to the Company. The common stock and net income per share, prior to the Business Combination, have been adjusted to share amounts reflecting the Exchange Ratio. |
RELATED-PARTY TRANSACTIONS
RELATED-PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
RELATED-PARTY TRANSACTIONS | RELATED-PARTY TRANSACTIONS The following table is a summary of balance sheet assets and liabilities from related parties: December 31, December 31, Financial Statement Line Item Marketing Agreement $ 1,000 $ 1,000 Intangibles, net Marketing Agreement $ — $ 20,000 Accrued liabilities The Company did not have any revenues recognized from related parties during the years ended December 31, 2021, 2020, and 2019. In connection with the Business Combination and in accordance with the Merger Agreement, during the year ended December 31, 2021, the Company paid $2.5 million to myCause Charitable Foundation ("myCause"), a 501(c)(3) foundation established and administered by certain members of management of the Company. The Company’s remaining expenses recognized from related parties were immaterial during the years ended December 31, 2021, 2020, and 2019. MGM Resorts International (“MGM”) MGM is a stockholder and MGM's Chief Commercial Officer also serves on the Company’s Board of Directors. MGM owned approximately 16.6 million and 14.6 million shares of the Company's outstanding Class A common stock as of December 31, 2021 and December 31, 2020, respectively. Marketing Agreement In April 2011, the Company entered into a joint marketing agreement with MGM (as amended, the “Marketing Agreement”) in exchange for assistance with marketing campaigns and the exclusive right to utilize MGM’s licensed marks and licensed copyrights for the development of certain of the Company’s social casino games. The initial term was for one year from the go-live date of the first such game in July 2012, with an automatic renewal provision for successive two-year terms based on our games meeting certain performance criteria. If our games do not achieve the specified performance criteria, the term will be automatically renewed for a one-year period and the right to utilize MGM’s licensed marks and copyrights will become non-exclusive. The non-exclusive term will be automatically renewed for successive one-year periods so long as our games meet certain other performance criteria. As consideration for the use of MGM’s intellectual property, the Company issued 19.2 million shares of its common stock representing 10% of its then-outstanding common stock; and in lieu of royalty payments, the Company agreed to pay MGM a profit share of: (i) during the exclusive term, a mid- to high-single digit percentage of cumulative net operating income, as defined in the Marketing Agreement, and (ii) during the non-exclusive term, a low- to mid-single digit percentage of cumulative net operating income. As further described in Note 9— Goodwill and Intangible Assets , the Marketing Agreement was recorded as an indefinite-lived intangible asset. On October 30, 2020, the Company and MGM agreed to amend the Marketing Agreement (the “MGM Amendment”), under which the Company and MGM agreed to terminate the profit share provision. In exchange, the Company agreed to remit to MGM a one-time payment of $20.0 million, payable on the earliest to occur of (i) the PIPE Financing, (ii) the date that the Company waives MGM’s commitment to participate in the PIPE Financing, or (iii) two years from the date of the MGM Amendment. In addition, MGM agreed to reinvest in the Company at a minimum amount of $20.0 million by participating in the PIPE Financing or a private placement of equity offering to third party investors for minimum gross proceeds to the Company of $50.0 million. As a result of the termination, the Company is no longer obligated to make profit share payments, but the other rights and obligations under the Marketing Agreement continue in full force and effect. The Company recorded zero, $0.3 million, and zero as profit share expense during the years ended December 31, 2021, 2020, and 2019, respectively. |
RECEIVABLES
RECEIVABLES | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
RECEIVABLES | RECEIVABLES Receivables consist of the following: December 31, December 31, Trade receivables $ 20,540 $ 16,616 Other receivables 153 — Total receivables $ 20,693 $ 16,616 Trade receivables represent amounts due to the Company from social and mobile platform operators, including Apple, Google, Amazon, and Facebook. Trade receivables are recorded when the right to consideration becomes unconditional. No allowance for doubtful accounts was considered necessary as of December 31, 2021 and December 31, 2020. Concentration of Credit Risk As of December 31, 2021, Apple, Inc. and Google, Inc. accounted for 43.0% and 34.6% of the Company’s total receivables, respectively, while as of December 31, 2020, Apple, Inc. and Google, Inc. accounted for 49.0% and 43.0% of the Company’s total receivables, respectively. As of December 31, 2021 and December 31, 2020, the Company did not have any additional counterparties that exceeded 10% of the Company’s net accounts receivable. During the year ended December 31, 2021, the Company entered into agreements pursuant to which the Company acquired the rights to develop and operate Tetris®-branded mobile games. As contemplated in the agreements, the Company agreed to a $8.0 million Advance Payment (as defined in Note 15— Commitments and Contingencies ). If the Company and the c ounterparty |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENT | FAIR VALUE MEASUREMENT The carrying values of the Company’s cash and cash equivalents, trade receivables, and accounts payable approximate fair value due to their short maturities. The following tables present the financial assets not measured at fair value on a recurring basis as of December 31, 2021 and December 31, 2020: December 31, 2021 Carrying Value Estimated Fair Value Fair Value Hierarchy Financial Statement Line Item Financial assets: Notes receivable - current $ 8 $ 8 Level 3 Receivables Notes receivable - non-current 3,391 3,391 Level 3 Other long-term assets Advance payment - non-current 8,000 8,000 Level 3 Other long-term assets Total financial assets $ 11,399 $ 11,399 December 31, 2020 Carrying Value Estimated Fair Value Fair Value Hierarchy Financial Statement Line Item Financial assets: Notes receivable - non-current $ 815 $ 815 Level 3 Other long-term assets Total financial assets $ 815 $ 815 The notes receivable are fixed-rate investments, are not traded and do not have observable market inputs, therefore, the fair value is estimated to be equal to the carrying value. The advance payment is a not traded asset and does not have observable market inputs, therefore, the fair value is estimated to be equal to the carrying value. The following table presents the liabilities measured at fair value on a recurring basis, by input level, in the Consolidated Balance Sheet at December 31, 2021: December 31, 2021 Level 1 Level 2 Level 3 Total Financial liabilities: Public Warrants $ 4,255 — — 4,255 Private Warrants — 2,266 — 2,266 Total financial liabilities $ 4,255 $ 2,266 $ — $ 6,521 The Company did not have any liabilities similar to those above requiring fair value measurement at December 31, 2020. |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | PROPERTY AND EQUIPMENT, NET Property and equipment, net consists of the following: December 31, December 31, Computer equipment $ 9,361 $ 8,328 Leasehold improvements 6,310 6,365 Furniture and fixtures 2,125 2,266 Construction in progress 721 90 Total property and equipment 18,517 17,049 Less: accumulated depreciation (13,228) (10,848) Total property and equipment, net $ 5,289 $ 6,201 The aggregate depreciation expense for property and equipment, net is reflected in “Depreciation and amortization” in the Consolidated Statements of Operations. During the years ended December 31, 2021, 2020, and 2019, depreciation expense was $2.8 million, $2.8 million, and $2.6 million, respectively. No impairment charges or material write-offs were recorded for the years ended December 31, 2021, 2020, and 2019. Property and equipment, net by region consists of the following: December 31, December 31, United States $ 1,672 $ 2,098 EMEA (1) 2,813 3,436 All other regions and countries 804 667 Total property and equipment, net $ 5,289 $ 6,201 (1) Europe, Middle East, and Africa (“EMEA”). Amounts primarily represent leasehold improvements of local office space and computer equipment. |
INTERNAL-USE SOFTWARE, NET
INTERNAL-USE SOFTWARE, NET | 12 Months Ended |
Dec. 31, 2021 | |
Research and Development [Abstract] | |
INTERNAL-USE SOFTWARE, NET | INTERNAL-USE SOFTWARE, NET Internal-use software, net consists of the following: December 31, December 31, Internal-use software $ 130,942 $ 103,041 Less: accumulated amortization (87,675) (64,285) Total internal-use software, net $ 43,267 $ 38,756 The aggregate amortization expense for internal-use software, net is reflected in "Depreciation and amortization" in the Consolidated Statements of Operations. During the years ended December 31, 2021, 2020, and 2019, the Company capitalized internal-use software development costs of $28.3 million, $25.8 million, and $21.9 million, respectively. Total amortization expense associated with its capitalized internal-use software development costs for the years ended December 31, 2021, 2020, and 2019 was $23.7 million, $18.7 million, and $21.1 million, respectively. There were no write-offs or impairment charges recorded for the years ended December 31, 2021, 2020, and 2019. Subsequent to December 31, 2021, the Company adopted a plan to suspend the further development of Kingdom Boss during the first quarter of 2022, resulting in a change in the useful life of the assets associated with Kingdom Boss . The Company expects to record a non-cash impairment charge during the first quarter of 2022. As of December 31, 2021, the gross carrying amount of internal-use software associated with Kingdom Boss was $8.7 million and the total accumulated amortization was $0.1 million. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS Goodwill The Company had $5.1 million in goodwill as of December 31, 2021 and December 31, 2020. Other than the Business Combination and reverse recapitalization described in Note 3— Business Combination , there were no business combinations during the years ended December 31, 2021 and 2020. There were no indicators of impairment as of December 31, 2021 and December 31, 2020. Intangible Assets The following table provides the gross carrying value and accumulated amortization for each major class of intangible asset other than goodwill: December 31, 2021 December 31, 2020 Gross Accumulated Net Gross Accumulated Net Amortizable intangible assets: Licenses $ 19,000 $ (1,245) $ 17,755 $ 1,000 $ (500) $ 500 Trade names 1,240 (1,240) — 1,240 (1,116) 124 20,240 (2,485) 17,755 2,240 (1,616) 624 Nonamortizable intangible assets: Marketing Agreement with MGM Resorts International 1,000 — 1,000 1,000 — 1,000 Total intangible assets $ 21,240 $ (2,485) $ 18,755 $ 3,240 $ (1,616) $ 1,624 Intangible assets consist of trade names and long-term license agreements with various third parties. The Company entered into agreements with N3TWORK Inc. and The Tetris Company, LLC pursuant to which the Company acquired the rights to develop and operate Tetris ® -branded mobile games for an initial term through August 2024. The Company paid N3TWORK Inc. $13.0 million at closing and agreed to pay up to an additional $34.0 million subject to satisfaction of certain conditions, of which $8.0 million was an Advance Payment (as defined in Note 15— Commitments and Contingencies ) . In addition, the Company will pay royalties to The Tetris Company, LLC, the licensor of the rights. The aggregate amortization expense for amortizable intangible assets is reflected in “Depreciation and amortization” in the Consolidated Statements of Operations. During the years ended December 31, 2021, 2020, and 2019, amortization was $0.9 million, $0.7 million, and $1.4 million, respectively. There were no impairment charges for intangible assets for the years ended December 31, 2021, 2020, and 2019. As of December 31, 2021, the estimated annual amortization expense for the years ended December 31, 2021 through 2025 is as follows: Year Ending December 31, Projected Amortization 2022 $ 6,745 2023 6,645 2024 4,365 2025 — 2026 — Total $ 17,755 |
WARRANT LIABILITIES
WARRANT LIABILITIES | 12 Months Ended |
Dec. 31, 2021 | |
Other Liabilities Disclosure [Abstract] | |
WARRANT LIABILITIES | WARRANT LIABILITIES Public Warrants and Private Warrants Upon the closing of the Business Combination, there were approximately 7.2 million publicly-traded redeemable warrants to purchase shares of Class A common stock (the "Public Warrants") and 3.8 million redeemable warrants to purchase shares of Class A common stock initially issued to the Sponsor in a private placement (the "Private Warrants") by Acies. Each whole Public Warrant entitles the registered holder to purchase one whole share of the Company’s Class A common stock at a price of $11.50 in cash per share, subject to adjustment as discussed below, as of October 27, 2021. Pursuant to the Warrant Agreement, a holder of Public Warrants may exercise the Public Warrants only for a whole number of shares of Class A common stock. The Public Warrants will expire 5 years after the completion of the Business Combination, or earlier upon redemption or liquidation. The Private Warrants are identical to the Public Warrants, except that the Private Warrants and the shares of Class A common stock issuable upon exercise of the Private Warrants were not transferable until after the completion of the Business Combination, subject to certain limited exceptions. Additionally, the Private Warrants are non-redeemable so long as they are held by the initial holder or any of its permitted transferees. If the Private Warrants are held by someone other than the initial holder or its permitted transferees, the Private Warrants will be redeemable by the Company and exercisable by such holders on the same basis as the Public Warrants. The Private Warrants may be exercised on a cashless basis so long as held by the Sponsor or certain permitted transferees. The Company may redeem the outstanding Public Warrants in whole, but not in part, at a price of $0.01 per Public Warrant upon a minimum of 30 days’ prior written notice of redemption, if and only if the last sale price of the Company’s common stock equals or exceeds $18.00 per share for any 20-trading days within a 30-trading day period ending three At December 31, 2021, there were approximately 7.2 million Public Warrants and 3.8 million Private Warrants outstanding. Refer to Note 6— Fair Value Measurement for further information. |
ACCRUED LIABILITIES
ACCRUED LIABILITIES | 12 Months Ended |
Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |
ACCRUED LIABILITIES | ACCRUED LIABILITIES Accrued liabilities consist of the following: December 31, December 31, MGM profit share buyout $ — $ 20,000 Accrued payroll and vacation 5,696 4,860 Minimum guarantee liability 5,200 — Other accruals 4,703 4,229 Total accrued liabilities $ 15,599 $ 29,089 MGM Profit Share Buyout As further described in Note 4— Related-Party Transactions |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | REVENUE FROM CONTRACTS WITH CUSTOMERS Disaggregation of Revenue The following table summarizes the Company’s revenue disaggregated by type, and by over time or point in time recognition: Years Ended December 31, 2021 2020 2019 Virtual currency (over time) (1) $ 280,087 $ 268,137 $ 231,726 Advertising (point in time) 6,964 1,745 383 Other revenue (point in time) $ 368 $ — $ 7,312 Total net revenue $ 287,419 $ 269,882 $ 239,421 (1) Virtual currency is recognized over the estimated consumption period. The following table summarizes the Company’s revenue disaggregated by geography: Years Ended December 31, 2021 2020 2019 United States $ 250,252 $ 228,568 $ 200,418 All other countries 37,167 41,314 39,003 Total net revenue $ 287,419 $ 269,882 $ 239,421 Contract Balances Contract assets represent the Company’s ability to bill customers for performance obligations completed under a contract. As of December 31, 2021 and December 31, 2020, there were no contract assets recorded in the Company’s consolidated balance sheet. The deferred revenue balance related to the purchase of virtual currency was immaterial as of December 31, 2021 and December 31, 2020. The opening and closing balance of trade receivables is further described in Note 5— Receivables |
LONG-TERM DEBT
LONG-TERM DEBT | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT Credit Agreement On June 24, 2021, in connection with the Closing, the Company terminated and replaced the Revolver (as defined below). The Company, a subsidiary of the Company, JPMorgan Chase Bank, N.A., as administrative agent and JPMorgan Chase Bank, N.A., Silicon Valley Bank and Wells Fargo Securities, LLC, as joint bookrunners and joint lead arrangers entered into a credit agreement (the “Credit Agreement”) which provides for a five-year revolving credit facility in an aggregate principal amount of $75.0 million. Borrowings under the Credit Agreement may be borrowed, repaid and re-borrowed by the Company, and are available for working capital, general corporate purposes, and permitted acquisitions. Commitment fees and interest rates are determined on the basis of either a Eurodollar rate or an Alternate Base Rate plus an applicable margin. The applicable margins are initially 2.50%, in the case of Eurodollar loans, and 1.50%, in the case of Alternate Base Rate loans. The applicable margin is subject to adjustment based upon the Company's Total Net Leverage Ratio (as defined in the Credit Agreement). Eurodollar rates and the Alternate Base Rate are subject to floors of 0.00% and 1.00%, respectively. The Credit Agreement contains various affirmative and negative financial and operational covenants applicable to the Company and its subsidiaries. The Credit Agreement includes customary reporting requirements, conditions precedent to borrowing and affirmative, negative and financial covenants. Specific financial covenants include the following, commencing with the quarter ended September 30, 2021: • Maximum Net Leverage Ratio of 3.50:1.00 (subject to increase to 4.00:1.00 following consummation of certain material acquisitions) • Minimum Fixed Charge Coverage Ratio of 1.25:1.00. At issuance, the Company capitalized $0.7 million in debt issuance costs. As of December 31, 2021, the Company has not made any drawdowns on the Credit Agreement. Private Venture Growth Capital Loan On March 27, 2020, the Company entered into an agreement for a revolving credit facility (the “Revolver”) with Silicon Valley Bank (“SVB”). The Revolver was secured by the assets including intellectual property of the Company and matures on September 27, 2022. Borrowings under the Revolver may be borrowed, repaid and re-borrowed by the Company, and are available for working capital, general corporate purposes and permitted acquisitions. Up to $3.0 million of the Revolver may be used for letters of credit. On June 24, 2021, in connection with the Closing, the Company terminated and replaced the Revolver as described above. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES As of December 31, 2021, unremitted earnings in foreign subsidiaries are indefinitely reinvested. Should these earnings be distributed in the future in the form of dividends or otherwise, the Company would be subject to withholding taxes payable to various jurisdictions. Due to the 2017 Tax Act, there is no U.S. federal tax on cash repatriation from foreign subsidiaries, but it could be subject to foreign withholding tax and U.S. state income taxes. Income before income taxes by tax jurisdiction consists of the following: Years Ended December 31, 2021 2020 2019 United States $ 25,181 $ 8,738 $ 11,164 Foreign (14,702) 2,398 6,425 Total income $ 10,479 $ 11,136 $ 17,589 Provision for current and deferred income taxes consists of the following: Years Ended December 31, 2021 2020 2019 Current tax expense: Federal $ 959 $ 945 $ 241 State 731 297 720 Foreign 396 791 665 Total current tax expense $ 2,086 $ 2,033 $ 1,626 Deferred tax expense: Federal $ 1,443 $ (3,045) $ 1,997 State (404) (748) 55 Foreign (3,383) 89 297 Total deferred tax expense $ (2,344) $ (3,704) $ 2,349 Income tax expense (benefit) $ (258) $ (1,671) $ 3,975 The difference between the actual rate and the federal statutory rate is as follows: Years Ended December 31, 2021 2020 2019 Statutory rate 21.0 % 21.0 % 21.0 % Foreign provision 0.6 (0.3) (6.5) State/province income tax 4.0 0.1 5.6 Stock compensation (1.6) (19.2) 7.5 Unrecognized tax benefits 8.9 — — Other effects of check-the-box election — (6.2) 0.2 Research credit (11.0) (11.5) (5.9) Adjustment to carrying value 1.5 (4.0) (0.3) Foreign tax credit (4.6) (9.1) (0.7) Valuation allowance 3.2 9.0 — Foreign-derived intangible income deduction (FDII) — (2.7) (1.1) Non-deductible expenses-other 3.4 2.4 2.0 Foreign branch income 1.3 4.5 1.0 Fair value adjustment on warrants (27.9) — — Other (1.3) 1.0 (0.2) Effective tax rate (2.5) % (15.0) % 22.6 % Deferred tax assets and liabilities consist of the following: December 31, 2021 2020 Deferred tax assets: Net operating loss carryforwards $ 10,384 $ — Tax credit carryforwards 4,929 6,882 Accrued liabilities 785 5,576 Stock compensation 2,221 1,457 Charitable contribution 697 — Deferred rent 41 74 Other 89 276 Total gross deferred tax assets $ 19,146 $ 14,265 Less: Valuation allowance (1,334) (1,002) Total deferred tax assets $ 17,812 $ 13,263 Deferred tax liabilities: Intangibles 176 185 Property and equipment 10,189 12,457 Prepaid taxes 1,165 482 Total deferred tax liabilities $ 11,530 $ 13,124 Deferred tax assets (liability), net $ 6,282 $ 139 Foreign tax credits can be carried forward to offset future U.S. taxable income subject to certain limitations for a period of 10 years. Foreign tax credits of $1.3 million will begin to expire in 2030. As of December 31, 2021, the Company had a full valuation allowance of $1.3 million on the foreign tax credit carryforward due to the uncertainty of future foreign source taxable income, primarily due to projected tax deductions associated with future exercises of non-qualified stock options. In making such determination, the Company considered all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, projected future foreign source income, tax planning strategies and recent financial operations. These assumptions required significant judgment about the forecasts of future taxable and foreign source income. The following is a tabular reconciliation of the total amounts of deferred tax asset valuation allowance: Years Ended December 31, 2021 2020 Balance at beginning of period $ 1,002 $ — Charged to provision for income taxes 332 1,002 Balance at end of period $ 1,334 $ 1,002 The Company had approximately $40.0 million of accumulated federal net operating loss as of December 31, 2021, which may be carried forward indefinitely to offset taxable income. The Company had approximately $0.6 million of federal research credit carryforwards as of December 31, 2021. The federal research credits are limited to a 20-year carryforward period and will expire starting in 2041. The Company had tax effected state net operating loss carryforwards of approximately $1.9 million as of December 31, 2021, which will expire between 2036 and 2041. The Company had $3.1 million of California research credit carryforwards as of December 31, 2021, which may be carried forward indefinitely. The Company also had $0.6 million of Texas research credit carryforwards as of December 31, 2021, which may be carried forward for 20 years and will expire starting in 2037. The following is a tabular reconciliation of the total amounts of unrecognized tax benefits: Years Ended December 31, 2021 2020 2019 Balance at beginning of period $ — $ — $ — Increases for tax positions of prior years 609 — — Increases for tax positions of current year 148 — — Settlements (120) — — Balance at end of period $ 637 $ — $ — The Company has analyzed filing positions in all of the federal, state, and foreign jurisdictions where it is required to file income tax returns and for all open tax years. As of December 31, 2021, the Company recorded approximately $0.6 million of unrecognized tax benefits, all of which would impact the effective tax rate, if recognized. The Company does not anticipate that its unrecognized tax benefits will materially change within the next 12 months. The Company’s policy for recording interest and penalties associated with audits and unrecognized tax benefits is to record such items as a component of income tax expense. As of December 31, 2021, income tax expense includes an accrual of $0.1 million for the payment of interest and penalties associated with unrecognized tax benefits. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Minimum Guarantee Liability The following are the Company’s total minimum guaranteed obligations: Years Ended December 31, 2021 2020 Minimum guarantee liability-current $ 5,200 $ 100 Minimum guarantee liability-noncurrent — 300 Total minimum guarantee obligations $ 5,200 $ 400 Weighted-average remaining term (in years) 2.6 2.5 The following are the Company’s remaining expected future payments of minimum guarantee obligations as of December 31, 2021: Year Ending December 31, Minimum Guarantee 2022 $ 5,200 2023 — 2024 — 2025 — 2026 — Total $ 5,200 Leases The Company leases both office space and office equipment and classifies these leases as either operating or capital leases for accounting purposes based upon the terms and conditions of the individual lease agreements. As of December 31, 2021, all leases were classified as operating leases and expire at various dates through 2027, with certain leases containing renewal option periods of two The Company’s future minimum rental commitments as of December 31, 2021, are as follows: Year Ending December 31, Minimum Rental 2022 $ 4,200 2023 4,415 2024 4,349 2025 2,598 2026 and Thereafter 3,177 Total $ 18,739 Certain lease agreements have rent escalation provisions over the lives of the leases. The Company recognizes rental expense based on a straight-line basis over the term of the leases. Rental expense was $4.7 million, $4.7 million, and $4.3 million for the years ended December 31, 2021, 2020, and 2019, respectively, which is included within “General and administrative” expenses in the Consolidated Statements of Operations. N3TWORK, Inc. On November 22, 2021, the Company entered into agreements with N3TWORK Inc. and The Tetris Company, LLC pursuant to which the Company acquired the rights to develop and operate Tetris®-branded mobile games for an initial term through August 2024. The Company paid N3TWORK Inc. $13.0 million at closing and agreed to pay up to an additional $34.0 million subject to satisfaction of certain conditions (the "Contingent Payments"). As of December 31, 2021, the Company advanced $8.0 million of the Contingent Payments (the "Advance Payment"). None of the Advance Payment was considered earned as of December 31, 2021, which is included within "Other long-term assets" within the Consolidated Balance Sheets. Other The Company is party to ordinary and routine litigation incidental to its business. On a case-by-case basis, the Company engages inside and outside counsel to assess the probability of potential liability resulting from such litigation. After making such assessments, the Company makes an accrual for the estimated loss only when the loss is reasonably probable and an amount can be reasonably estimated. The Company does not expect the outcome of any pending litigation to have a material effect on the Company’s Consolidated Balance Sheets, Consolidated Statements of Operations, or Consolidated Statements of Cash Flows. In May 2021, the Company became party to a litigation matter brought by TeamSava d.o.o. Beograd (“TeamSava”) and other related parties. The plaintiffs filed a Statement of Claim in May 2021 in Tel Aviv District Court in Israel, alleging claims, among other things, that the Company breached the terms of a commercial contract relating to services provided by TeamSava and related parties in connection with the sourcing and administrative management of personnel in Serbia who provided game development services exclusively for the Company. The pending litigation seeks damages of 27.3 million New Israeli Shekels ("NIS"). The Company believes that the claims are without merit and the Company intends to vigorously defend against them; however, there can be no assurance that the Company will be successful in the defense of this litigation. The Company’s range of possible loss could be up to 27.3 million NIS based on the claim amount of the litigation, but the Company is not able to reasonably estimate the probability or amount of loss and therefore has not made any accruals. |
STOCKHOLDERS_ EQUITY
STOCKHOLDERS’ EQUITY | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
STOCKHOLDERS’ EQUITY | STOCKHOLDERS’ EQUITY The Consolidated Statements of Stockholders’ Equity reflect the reverse recapitalization as discussed in Note 3— Business Combination as of June 21, 2021. As Old PLAYSTUDIOS was deemed the accounting acquirer in the reverse recapitalization with Acies, all periods prior to the consummation date reflect the balances and activity of Old PLAYSTUDIOS. The consolidated balances and the audited consolidated financial statements of Old PLAYSTUDIOS, as of December 31, 2020, and the share activity and per share amounts in these Consolidated Statements of Stockholders' Equity were retroactively adjusted, where applicable, using the recapitalization exchange ratio of 0.233 for Old PLAYSTUDIOS common stock. Old PLAYSTUDIOS Series A Preferred Stock, Old PLAYSTUDIOS Series B Preferred Stock, Old PLAYSTUDIOS Series C-1 Preferred Stock, and Old PLAYSTUDIOS Series C Preferred Stock were deemed converted into shares of Old PLAYSTUDIOS common stock at a share conversion factor of 1.0 as a result of the reverse recapitalization. Old PLAYSTUDIOS warrants to purchase preferred stock were deemed exercised and the underlying shares converted based on the respective preferred stock conversion ratio. See Note 3— Business Combination for further discussion. Common Stock As of December 31, 2021, the Company was authorized to issue 2.0 billion and 25.0 million shares of Class A and Class B common stock, respectively. The Company had 110.1 million and 74.4 million shares of Class A common stock and 16.1 million and 19.0 million shares of Class B common stock issued and outstanding as of December 31, 2021 and December 31, 2020, respectively. Subject to the prior rights of the holders of any preferred stock, the holders of common stock are entitled to receive dividends out of the funds legally available at the times and in the amounts determined by the Company's Board of Directors. Each holder of Class A common stock is entitled to one vote for each share of Class A common stock held and each holder of Class B common stock is entitled to twenty votes for each share of Class B common stock held. After the full preferential amounts due to preferred stockholders have been paid or set aside, the remaining assets of the Company available for distribution to its stockholders, if any, are distributed to the holders of common stock ratably in proportion to the number of shares of common stock then held by each such holder. None of the Company’s common stock is entitled to preemptive rights and neither is subject to redemption. With the exception of the conversion of the Class B common stock into Class A common stock as described below, the Company’s common stock is not convertible into any other shares of the Company’s capital stock. The shares of Class B common stock are subject to a “sunset” provision if any member of the Founder Group transfers shares of Class B common stock outside the Founder Group (except for certain permitted transfers). In the event of such non-permitted transfers, any share transferred will automatically convert into shares of Class A common stock. In addition, the outstanding shares of Class B common stock will be subject to a “sunset” provision by which all outstanding shares of Class B common stock will automatically convert into shares of Class A common stock (i) if holders representing a majority of the Class B common stock vote to convert the Class B common stock into Class A common stock, (ii) if the Founder Group and its permitted transferees collectively no longer beneficially own at least 20% of the number of shares of Class B common stock collectively held by the Founder Group as of the Effective Time, or (iii) on the nine-month anniversary of the Founder’s death or disability, unless such date is extended by a majority of independent directors of the Company. Accumulated Other Comprehensive Income The following tables show a summary of changes in accumulated other comprehensive income: Currency Total Accumulated Balance as of December 31, 2020 $ 481 $ 481 Foreign currency translation (88) (88) Balance as of December 31, 2021 $ 393 $ 393 Currency Total Accumulated Balance as of December 31, 2019 $ 98 $ 98 Foreign currency translation 383 383 Balance as of December 31, 2020 $ 481 $ 481 Stock Repurchase Program |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION 2011 and 2021 Equity Incentive Plans Old PLAYSTUDIOS' 2011 Omnibus Stock and Incentive Plan (the “2011 Plan”) provides for the grant of incentive and non-statutory options, stock appreciation rights, restricted stock awards and restricted stock units to employees, directors and consultants of the Company, collectively referred to as “Awards.” Each Old PLAYSTUDIOS stock option from the 2011 Plan that was outstanding immediately prior to the Mergers and held by current employees or service providers, whether vested or unvested, was converted into an option to purchase 0.233 shares of common stock (each such option, an “Exchanged Option”). Except as specifically provided in the Merger Agreement, following the Mergers, each Exchanged Option continues to be governed by the same terms and conditions (including vesting and exercisability terms) as were applicable to the corresponding former Old PLAYSTUDIOS option immediately prior to the consummation of the Mergers. All equity awards activity was retroactively restated to reflect the Exchanged Options. On June 17, 2021, the Company approved the 2021 Equity Incentive Plan (the “2021 Plan”). The aggregate number of shares of common stock initially reserved for future issuance under the 2021 Plan is 16.7 million. The number of shares of common stock available under the 2021 Plan will increase annually on the first day of each calendar year, beginning with the calendar year ending December 31, 2022, with such annual increase equal to the lesser of (i) 5% of the number of shares of common stock issued and outstanding on the last business day of the immediately preceding fiscal year and (ii) an amount determined by the Company's Board of Directors. As of December 31, 2021, the Company has not issued any awards under the 2021 Plan. The 2021 Plan provides for the grant of non-qualified stock options, incentive stock options, stock appreciation rights, restricted stock, restricted stock units, and other stock awards, and performance awards to employees, officers, non-employee directors and independent contractors of the Company. The 2021 Plan became effective immediately upon the closing of the Merger and replaces the 2011 Plan. Stock-Based Compensation In connection with the Domestication and the Closing of the Business Combination, the Founder Group beneficially owned 16.1 million shares of Class B common stock, resulting in 74.6% of voting power of the Company. In addition, on the Closing Date of the Business Combination, the Founder Group was the beneficial owner of 2.2 million fully vested options underlying shares of Class B common stock, which accounted for all of Mr. Pascal's outstanding options on the Closing Date of the Business Combination. As a result of the Business Combination, the Founder Group has a controlling interest in the Company. As the Founder Group did not have control of Old PLAYSTUDIOS immediately prior to the Business Combination, and as Mr. Pascal is an employee of the Company, the incremental value resulting from the super vote premium is accounted for as incremental compensation costs. During the year ended December 31, 2021, the Company incurred $1.1 million of additional compensation expense related to the Founder Group's beneficial ownership interest in Class B common stock and the underlying vested options as of the Closing Date. The following table summarizes stock-based compensation expense that the Company recorded in income (loss) from operations for the periods shown: Years Ended December 31, 2021 2020 2019 Selling and marketing $ 72 $ 94 $ 85 General and administrative 1,704 1,044 964 Research and development 2,679 2,381 4,835 Stock-based compensation expense $ 4,455 $ 3,519 $ 5,884 Capitalized stock-based compensation $ 657 $ 605 $ 912 Stock Options All of the options granted under the 2011 Plan have time-based vesting periods vesting over a period of three The following is a summary of stock option activity for time-based options for the year ended December 31, 2021 (in thousands, except weighted-average exercise price and remaining term): No. of Weighted-Average Weighted-Average Aggregate Outstanding - December 31, 2020 18,093 $ 0.85 Granted 128 7.85 Exercised (2,676) 0.90 Forfeited (658) 1.90 Expired (138) 1.63 Outstanding - December 31, 2021 14,749 0.85 6.3 $ 46,246 Unvested - December 31, 2021 3,875 0.88 7.5 12,299 Exercisable - December 31, 2021 10,874 0.84 5.8 33,947 The following table presents the weighted-average assumptions used to estimate the fair value of the stock options granted in the Company’s consolidated financial statements: For the Years Ended 2021 2020 2019 Expected term (in years) 5.86 5.96 5.93 Expected volatility 51.24% 59.56% 70.00% Risk-free interest rate range 0.54% – 0.60% 0.24% – 0.51% 1.54% – 2.59% Dividend yield 0% 0% 0% Grant-date fair value $4.01 $0.60 $0.27 As of December 31, 2021, there was approximately $5.9 million of total unrecognized compensation expense related to stock options to employees. As of December 31, 2021, this cost is expected to be recognized over a remaining average period of 1.6. The total intrinsic value of stock options exercised under the provisions of the 2011 Plan during the years ended December 31, 2021, 2020, and 2019, was $17.6 million, $19.6 million, and $1.2 million, respectively. Restricted Stock Units ("RSU(s)") Subsequent to December 31, 2021, the Company granted total awards of 7.6 million RSUs to employees. The RSUs vest over time subject to continued employment and the fair value of RSUs is estimated on the grant date using the underlying share price. Total unrecognized compensation expense related to RSUs was $32.5 million and is expected to be recognized over a remaining average period of 2.7 years. |
NET INCOME PER SHARE
NET INCOME PER SHARE | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
NET INCOME PER SHARE | NET INCOME PER SHARE Basic net income per share is computed by dividing net income attributable to Class A and Class B common stockholders by the weighted-average number of shares of each respective class of common stock outstanding during the period. Diluted net income per share is computed by dividing net income attributable to Class A and Class B common stockholders by the weighted-average number of each respective class of common stock outstanding, including the potential dilutive securities. For the calculation of diluted net income per share, net income attributable to Class A and Class B common stockholders is adjusted to reflect the potential effect of dilutive securities. As result of the reverse recapitalization, the Company has retroactively adjusted the weighted average shares outstanding prior to the Business Combination to give effect to the Exchange Ratio used to determine the number of shares of common stock into which they were converted. The following table sets forth the computation of basic and diluted net income attributable to Class A and Class B common stockholders per share (in thousands except per share data): Years Ended December 31, 2021 2020 2019 Class A Class B Class A Class B Class A Class B Numerator Net income attributable to common stockholders – basic $ 9,182 $ 1,555 $ 10,191 $ 2,616 $ 10,819 $ 2,795 Potential dilutive effect of stock options 4 (4) 79 (79) 37 (37) Net income attributable to common stockholders – diluted $ 9,186 $ 1,551 $ 10,270 $ 2,537 $ 10,856 $ 2,758 Denominator Weighted average shares of common stock outstanding - basic 95,588 16,130 73,940 18,977 73,462 18,977 Potential dilutive effect of stock options 11,229 1,951 8,819 1,467 3,914 678 Weighted average shares of common stock outstanding - dilutive 106,817 18,081 82,759 20,444 77,376 19,655 Net income attributable to common stockholders per share Basic $ 0.10 $ 0.10 $ 0.14 $ 0.14 $ 0.15 $ 0.15 Diluted $ 0.09 $ 0.09 $ 0.12 $ 0.12 $ 0.14 $ 0.14 For the periods presented above, the net income per share amounts are the same for Class A and Class B common stock because the holders of each class are entitled to equal per share dividends or distributions in liquidation in accordance with the Certificate of Incorporation. The undistributed earnings for each period are allocated based on the contractual participation rights of the Class A and Class B common stock as if the earnings for the period had been distributed. As the liquidation and dividend rights are identical, the undistributed earnings are allocated on a proportionate basis. The following equity awards outstanding at the end of each period presented have been excluded from the computation of diluted net income per share of common stock for the periods presented due to their anti-dilutive effect: December 31, 2021 December 31, 2020 December 31, 2019 Stock options — 79 6,478 Public Warrants 7,175 — — Private Warrants 3,821 — — Earnout Shares 15,000 — — 25,996 79 6,478 |
EMPLOYEE BENEFIT PLAN
EMPLOYEE BENEFIT PLAN | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLAN | EMPLOYEE BENEFIT PLANThe Company offers a 401(k) retirement savings plan to eligible employees. Employee contributions are voluntary and made on a pretax basis subject to Internal Revenue Service limitations. The Company does not match any of the contributions made by its employees. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Consolidation | The accompanying consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). |
Consolidation | The consolidated financial statements include the accounts of PLAYSTUDIOS, Inc. and its consolidated subsidiaries. In the opinion of management, all adjustments considered necessary for a fair presentation have been recorded within the accompanying financial statements, and all intercompany balances and transactions have been eliminated upon consolidation. Certain reclassifications in these financial statements have been made to comply with U.S. GAAP applicable to public companies and SEC Regulation S-X. Pursuant to the Business Combination as discussed in Note 3— Business Combination , the Business Combination was accounted for as a reverse recapitalization in accordance with U.S. GAAP. Under this method of accounting, Acies was treated as the “acquired” company for financial reporting purposes and the consolidated financial statements represent the accounts of Old PLAYSTUDIOS “as if” Old PLAYSTUDIOS is the predecessor to the Company. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts in the consolidated financial statements and notes thereto. Significant estimates and assumptions reflected in the Company’s consolidated financial statements include the estimated consumption rate of virtual currency that is used in the determination of revenue recognition, useful lives of property and equipment and definite-lived intangible assets, the expensing and capitalization of research and development costs for internal-use software, assumptions used in accounting for income taxes, stock-based compensation, and the evaluation of goodwill and long-lived assets for impairment. The Company believes the accounting estimates are appropriate and reasonably determined. Due to the inherent uncertainties in making these estimates, actual amounts could differ materially. |
Segments | Segments Operating segments are defined as components of an entity for which discrete financial information is available, and that is regularly reviewed by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources to an individual segment and in assessing performance. The CODM, the Company’s Chief Executive Officer, reviews financial information on a consolidated basis for purposes of evaluating performance and allocating resources. As such, the Company has one operating and reportable segment. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand and highly liquid investments with an original maturity of three months or less from the date of purchase and are stated at the lower of cost or market value. Financial instruments that potentially subject us to concentrations of credit risk consist of cash and cash equivalents and receivables. The Company maintains cash and cash equivalent balances at several banks. Cash accounts located in the U.S. are insured by the Federal Deposit Insurance Corporation (FDIC). Although balances may exceed amounts insured by the FDIC, the Company believes that it is not exposed to any significant credit risk related to its cash or cash equivalents and has not experienced any losses in such accounts. |
Receivables and Allowance for Doubtful Accounts | Receivables and Allowance for Doubtful Accounts The Company’s receivables consist primarily of amounts due from social and mobile game platform operators, including Apple, Google, Facebook, and Amazon. Accounts receivable are typically non-interest bearing and are initially recorded at cost. The Company regularly reviews accounts receivable, considers current economic conditions and the financial positions of the Company’s platform operators. Accounts are written off when the Company deems the account to be uncollectible. Recoveries of accounts previously written off are recorded when received. The Company reserves an estimated amount for receivables that may not be collected to reduce receivables to their net carrying amount, which approximates fair value. Methodologies for estimating the allowance for doubtful accounts range from specific reserves to various percentages applied to aged receivables. Historical collection rates are considered in determining reserves. |
Property and Equipment, net | Property and Equipment, net The Company states property and equipment at cost net of accumulated depreciation. The Company capitalizes the costs of improvements that extend the life of the asset, while costs of repairs and maintenance are charged to expense as incurred. Gains or losses on the disposition of property and equipment are included in the determination of income. Computer equipment, furniture, and fixtures are depreciated using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized over the shorter of the estimated useful life of the asset or the related lease term. Estimated Useful Life Computer equipment 3 years Purchased software 3 years Furniture and fixtures 3 - 7 years Leasehold improvements Lesser of 10 years or remaining lease term Property and equipment are reviewed for impairment whenever events and circumstances indicate that the carrying value of an asset may not be recoverable. Recoverability of these assets is measured by a comparison of the carrying amounts to the future undiscounted cash flows the assets are expected to generate. If property and equipment are considered to be impaired, the impairment to be recognized equals the amount by which the carrying value of the asset exceeds its fair market value. If the Company reduces the estimated useful life assumption for any asset, the remaining unamortized balance would be amortized or depreciated over the revised estimated useful life. |
Internal-Use Software | Internal-Use Software The Company recognizes internal-use software development costs in accordance with Accounting Standards Codification (ASC) 350-40, Internal-Use Software . Capitalized costs include consulting fees, payroll and payroll-related costs, and stock-based compensation for employees who devote time to the Company’s internal-use software projects. Capitalization begins when the preliminary project stage is complete and the Company commits resources to the software project and continues during the application development stage. Capitalization ceases when the software has been tested and is ready for its intended use. Qualified costs incurred during the post-implementation/post-operation stage of the Company’s software applications relating to upgrades and enhancements are capitalized to the extent it is probable that they will result in added functionality. Costs that cannot be separated between maintenance of, and minor upgrades and enhancements to, internal-use software are expensed as incurred. Capitalized internal-use software development costs are amortized on a straight-line basis over a three-year estimated useful life. The Company believes that a straight-line basis for amortization best represents the pattern through which the Company derives value from internal-use software. The Company evaluates the useful lives of these assets and test for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. |
Goodwill | Goodwill In accordance with Accounting Standards Update (ASU) No. 2014-02, Intangibles—Goodwill and Other (Topic 350): Accounting for Goodwill , goodwill is recorded as the excess of the purchase price over acquisition-date fair value of identifiable tangible and intangible assets and liabilities. Goodwill is tested for impairment annually as of October 1st of each year, or when a triggering event occurs. If a triggering event occurs, qualitative factors are first assessed to determine whether a quantitative impairment test is required. Any impairment would be recognized for the difference between the fair value and the carrying amount limited to the carrying amount of goodwill. Impairment testing for goodwill is performed at the reporting unit level. The Company has identified a single reporting unit based on the Company’s management structure. |
Intangible Assets | Intangible Assets Intangible assets are classified into one of the two categories: (1) intangible assets with definite lives subject to amortization and (2) intangible assets with indefinite lives not subject to amortization. For definite-lived intangible assets, amortization is recorded using the straight-line method, which materially approximates the pattern of the assets’ use. The Company continually evaluates whether events and circumstances have occurred that indicate the remaining estimated useful life of intangible assets may warrant revision or that the remaining balance may not be recoverable. These factors may include a significant deterioration of operating results, changes in business plans, or changes in anticipated cash flows. The estimated useful lives of the Company’s intangible assets are as follows: Estimated Useful Life Licenses 3 - 5 years Trade names 5 years When factors indicate that a definite-lived intangible asset should be evaluated for possible impairment, the Company reviews intangible assets to assess recoverability from future operations using undiscounted cash flows. If future undiscounted cash flows are less than the carrying value, an impairment is recognized in earnings to the extent that the carrying value exceeds fair value. For indefinite-lived intangible assets, the Company conducts impairment tests annually or more frequently if events or changes in circumstances indicate that it is more likely than not that the fair value of an indefinite-lived asset is less than its carrying value, or when circumstances no longer continue to support an indefinite useful life. If a triggering event occurs, qualitative factors are first assessed to determine whether a quantitative impairment test is required. If a quantitative test is required, the fair value of the intangible is compared to the asset’s carrying amount. Any impairment would be recognized for the difference between the fair value and the carrying amount. The Company performs its annual impairment testing as of October 1 of each year. |
Warrant Liabilities | Warrant Liabilities The Company evaluates all of its financial instruments, including issued warrants, to determine if such instruments are liability classified, pursuant to ASC Topic 480, Distinguishing Liabilities from Equity (“ASC 480”) or derivatives or contain features that qualify as embedded derivatives pursuant to ASC Topic 815, Derivatives and Hedging (“ASC 815”). The classification of instruments, including whether such instruments should be recorded as liabilities or as equity, is re-assessed at the end of each reporting period. Issuance costs incurred with the Business Combination that are attributable to liability classified warrants are expensed as incurred. |
Fair Value Measurements | Fair Value Measurements The carrying amounts of the Company’s financial instruments, including accounts receivable, accounts payable, and accrued liabilities, approximate fair value because of their short-term maturities. According to ASC 820, Fair Value Measurements and Disclosures, fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. The fair value hierarchy establishes three tiers, which prioritize the inputs used in measuring fair value as follows: Level 1 —Observable inputs, such as quoted prices in active markets for identical assets or liabilities; Level 2 —Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and Level 3 —Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. Entities are permitted to choose to measure certain financial instruments and other items at fair value. The Company has not elected the fair value measurement option for any of the Company’s assets or liabilities that meet the criteria for this election. |
License Agreements & Minimum Guarantees | License Agreements & Minimum Guarantees The Company enters into long-term license agreements with third parties in which it is obligated to pay a minimum guaranteed amount of royalties, typically annually over the life of the contract. The Company accounts for the minimum guaranteed obligations within “Accrued liabilities” and “Other long-term liabilities” at the onset of the license arrangement and record a corresponding licensed asset within “Intangibles, net” in the accompanying Consolidated Balance Sheets. The licensed intangible assets related to the minimum guaranteed obligations are amortized over the term of the license agreement with the amortization expense recorded in “Depreciation and amortization” in the accompanying Consolidated Statements of Operations. The Company classifies minimum royalty payment obligations as current liabilities to the extent they are contractually due within the next 12 months. The long-term portion of the liability related to the minimum guaranteed obligations is reduced as royalty payments are made as required under the license agreement. The Company assesses the recoverability of license agreements whenever events arise or circumstances change that indicate the carrying value of the licensed asset may not be recoverable. Recoverability of the licensed asset and the amount of impairment, if any, are determined using the Company’s policy for intangible assets with finite useful lives. |
Revenue Recognition, Advertising Revenue and Cost of Revenue | Revenue Recognition In May 2014, the Financial Accounting Standards Board (FASB) issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). ASU 2014-09 combined with all subsequent amendments, which is collectively ASC 606, Revenue from Contracts with Customers, provides guidance outlining a single five-step comprehensive revenue model in accounting for revenue from contracts with customers which supersedes all existing revenue recognition guidance, including industry-specific guidance. ASU 2014-09 also required expanded disclosures relating to the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. On January 1, 2019, the Company adopted the new accounting standard and related amendments (collectively, the “new revenue accounting standard”) using the modified retrospective method. The Company determines revenue recognition by: • identifying the contract, or contracts, with a customer; • identifying the performance obligations in each contract; • determining the transaction price; • allocating the transaction price to the performance obligations in each contract; and • recognizing revenue when, or as, the Company satisfies performance obligations by transferring the promised goods or services. Advertising Revenue The Company has contractual relationships with various advertising service providers for advertisements within the Company’s games. Advertisements can be in the form of an impression, click-throughs, banner ads, or offers. Offers are advertisements where the players are rewarded with virtual currency for watching a short video. The Company has determined the advertising service provider to be its customer and displaying the advertisements within its games is identified as the single performance obligation. Revenue from advertisements and offers are recognized at a point in time when the advertisements are displayed, or when the player has completed the offer as the advertising service provider simultaneously receives and consumes the benefits provided from these services. The price can be determined by the applicable evidence of the arrangement, which may include a master contract or a third-party statement of activity. The transaction price is generally the product of the advertising units delivered (e.g. impressions, videos viewed) and the contractually agreed upon price per advertising unit. Further, the price per advertising unit can also be based on revenue share percentages stated in the contract. The number of advertising units delivered is determined at the end of each month so there is no uncertainty about the transaction price. Payment terms are stipulated as a specific number of days subsequent to end of the month, ranging from 45 to 60 days. Principal Agent Considerations The Company’s games are played on various social and mobile third-party platforms for which such third parties collect monies from players and remit net proceeds after deducting payment processing fees. The Company is primarily responsible for providing access to the virtual currency, has control over the content and functionality of games before they are accessed by players, and has the discretion to establish the pricing for the virtual currency. Therefore, the Company concluded that it is the principal and as a result, revenues are reported gross of payment processing fees. Payment processing fees are recorded as a component of “Cost of revenue” in the accompanying Consolidated Statements of Operations. The Company reports its advertising revenue net of amounts retained by advertising service providers. Cost of Revenue Cost of revenue relates to direct expenses incurred to generate revenue from online and mobile games and are recorded as incurred. The Company’s cost of revenue consists primarily of payment processing fees, hosting and data center costs related to operating its games, and royalties for licensed games. Payment processing fees consist of fees paid to third-party social and mobile platform operators. If applicable, other than the deferral of payment processing fees associated with deferred revenues, payment processing fees are expensed as incurred. |
Virtual Currency | Virtual Currency The Company develops and operates free-to-play games which are downloaded and played on social and mobile platforms. Players may collect virtual currency free of charge through the passage of time or through targeted marketing promotions. Additionally, players can send free “gifts” of virtual currency to their friends through interactions with certain social platforms. Players may also purchase additional virtual currency through accepted payment methods offered by the respective platform. Once a purchase is completed, the virtual currency is deposited into the player’s account and are not separately identifiable from previously purchased virtual currency obtained by the player for free. Once obtained, virtual currency (either free or purchased) cannot be redeemed for cash nor exchanged for anything other than gameplay. When virtual currency is consumed in our games, the player could “win” and would be awarded additional virtual currency or could “lose” and lose the future use of that virtual currency. As the player does not receive any additional benefit from our games, nor is the player entitled to any additional rights once the player’s virtual currency is substantially consumed, the Company has concluded that the virtual currency represents consumable goods. Players can earn loyalty points through a variety of activities, including but not limited to playing the Company’s games, engaging with in-game advertising, engaging with marketing emails, and logging into the game. The loyalty points can be redeemed for rewards offered by the Company’s awards partners. There is no obligation for the Company to pay or otherwise compensate the Company’s awards partners for any player redemptions under the Company’s awards partner agreements. In addition, both paying and non-paying players can earn loyalty points. Therefore, the loyalty points earned by players are marketing offers and do not provide players with material rights. Accordingly, the loyalty points do not require any allocation to the transaction price of virtual currency. Additionally, certain of the Company’s games participate in an additional program which ranks players into different tiers based on tier points earned during a given time frame. Tier points can be earned through a variety of player engagement activities, including but not limited to logging into our games, achieving multi-day log-in streaks, collecting hourly bonuses, and purchasing virtual currency bundles. Depending on the tier, players are granted access to special benefits at the Company’s discretion. Similar to loyalty points that are redeemable into real-world rewards, the tier points are not awarded as a result of a contract with a customer since both paying and non-paying players can earn these tier points. As a result, the tier points earned by players do not provide players with material rights and do not require any allocation to the transaction price of virtual currency. The Company has the performance obligation to display and provide access to the virtual currency purchased by the Company’s player within the game whenever the player accesses the game until the virtual currency is consumed. Payment is required at the time of purchase and the transaction price is fixed. The transaction price, which is the amount paid for the virtual currency by the player is allocated entirely to this single performance obligation. As virtual currency represents consumable goods, the Company recognizes revenue as the virtual currency is consumed over the estimated consumption period. Since the Company is unable to distinguish between the consumption of purchased or free virtual currency, the Company must estimate the amount of outstanding purchased virtual currency at each reporting date based on player behavior. The Company has determined through a review of player behavior that players who purchase virtual currency generally are not purchasing additional virtual currency if their existing virtual currency balances have not been substantially consumed. As the Company can track the duration between purchases of virtual currency for individual players, the Company is able to reliably estimate the period over which virtual currency is consumed. Based upon an analysis of players’ historical play behavior, the timing difference between when virtual currency is purchased by a player and when such virtual currency is consumed in gameplay is relatively short, currently one to seven days with an average consumption period of approximately one day. The Company recognizes revenue from in-game purchases of virtual currency over this estimated average period between when the virtual currency is purchased and consumed. If applicable, the Company records the unconsumed virtual currency in “Deferred revenue” and records the prepaid payment processing fees associated with this deferred revenue in “Prepaid expenses”. The Company continues to gather detailed player behavior and assess this data in relation to its revenue recognition policy. To the extent the player behavior changes, the Company reassesses its estimates and assumptions used for revenue recognition prospectively on the basis that such changes are caused by new factors indicating a change in player behavior patterns. |
Research and Development | Research and Development The Company incurs various direct costs in relation to the development of future social and mobile games along with costs to improve current social and mobile games. Research and development costs consist primarily of payroll and related personnel costs, stock-based compensation, and consulting fees. The Company evaluates research and development costs incurred to determine whether the costs relate to the development of software and are, therefore, qualified to be capitalized under ASC 350-40, Internal-Use Software . All other research and development costs are expensed as incurred. |
Advertising | Advertising expense is included in “Selling and marketing” expenses in the Consolidated Statements of Operations. |
Share-Based Compensation | Share-Based Compensation The Company measures compensation expense for all share-based awards at fair value on the date of grant and recognizes compensation expense over the service period on a straight-line basis for awards expected to vest. The Company uses the Black-Scholes-Merton option-pricing model to determine the fair value for option awards. In valuing our option awards, the Company makes assumptions about risk-free interest rates, dividend yields, volatility and weighted-average expected lives. The Company accounts for forfeitures as they occur. Risk-free interest rates are derived from U.S. Treasury securities as of the option award grant date. Expected dividend yield is based on our historical cash dividend payments, which have been zero to date. The expected volatility for shares of the Company's Class A common stock is estimated using our historical volatility. The weighted-average expected life of the option awards is estimated based on our historical exercise data. The Company's dual class structure was created upon the Domestication (as defined in Note 3— Business Combination ). The Class B common stock including Class B common stock underlying vested stock options, held by Mr. Andrew Pascal, the Company's Chairman and Chief Executive Officer, or his affiliates (the "Founder Group") carry a super vote premium. As the Founder Group did not have control of Old PLAYSTUDIOS prior to the Business Combination, and Mr. Pascal is an employee of the Company, the incremental value resulting from the super vote premium is accounted for as incremental compensation costs. The Company utilized the market approach by observing other market participants with (i) dual class structures, (ii) super vote premiums for a single class and (iii) both classes trading on a national exchange. Based on the observed data, management selected a premium for the Class B common stock and the stock options held by members of the Founder Group. |
Foreign Currency Translation and Transactions | Foreign Currency Translation and Transactions The functional currency of each of the Company’s wholly owned foreign subsidiaries is the applicable local currency. The translation of foreign currencies into U.S. dollars is performed for assets and liabilities using current foreign currency exchange rates in effect at the consolidated balance sheet date and for revenue and expense accounts using average foreign currency exchange rates during the year. Capital accounts are translated at historical foreign currency exchange rates. Translation gains and losses are included in stockholders’ equity as a component of accumulated other comprehensive income. Adjustments that arise from foreign currency exchange rate changes on transactions, primarily driven by intercompany transactions, denominated in a currency other than the functional currency are included in “Other income (expense), net” in the Consolidated Statements of Operations. |
Income Taxes | Income Taxes The Company accounts for income taxes in accordance with ASC 740, Income Taxes , which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in its consolidated financial statements or tax returns. Under ASC 740, the Company determines deferred tax assets and liabilities based on the temporary difference between the consolidated financial statements and tax bases of assets and liabilities using the enacted tax rates in effect for the year in which it expects the differences to be recovered or settled. The Company establishes valuation allowances when necessary, based on the weight of the available positive and negative evidence, to reduce deferred tax assets to the amount that is more likely than not to be realized. The Company accounts for uncertain tax positions in accordance with ASC 740, which requires companies to adjust their consolidated financial statements to reflect only those tax positions that are more likely than not to be sustained upon examination by taxing authorities based on the technical merits of the issue. ASC 740 prescribes a comprehensive model for the consolidated financial statement recognition, measurement, presentation, and disclosure of uncertain tax positions taken or expected to be taken in income tax returns. The Company recognizes interest and penalties related to unrecognized tax benefits in the provision for income taxes. |
Net Income Per Share | Net Income Per Share Net income per share (“EPS”) is calculated using the two-class method required for participating securities and multiple classes of common stock. Basic income per share is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding. Net income available to common stockholders represents net income attributable to common stockholders reduced by the allocation of earnings to participating securities. Diluted income per share adjusts basic loss per share for the potentially dilutive impact of stock options, warrants, restricted stock, and contingently issuable earnout shares. The dilutive effect of stock options, warrants, restricted stock, and contingently issuable earnout shares is computed using the treasury stock method. Diluted EPS excludes all dilutive potential shares if their effect is anti-dilutive. EPS calculations for all periods prior to the Business Combination have been retrospectively adjusted for the equivalent number of shares outstanding immediately after the Business Combination to effect the reverse recapitalization. Subsequent to the Business Combination, net income per share was calculated based on the weighted average number of common stock then outstanding . |
Recently Issued Accounting Pronouncements Not Yet Adopted and Recently Adopted Accounting Pronouncements | Recently Issued Accounting Pronouncements Not Yet Adopted In February 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016-02, Leases (Topic 842) . The amended guidance is intended to increase transparency and comparability among organizations by recognizing lease assets and liabilities in the Consolidated Balance Sheets and disclosing key information about leasing arrangements. The adoption of this guidance is expected to result in a significant portion of the Company’s operating leases, where the Company is the lessee, to be recognized in the Company’s Consolidated Balance Sheets. The guidance requires lessees and lessors to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. This guidance is effective for the Company for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022, with earlier adoption permitted. The Company is currently evaluating the impact of adopting this guidance. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326). The new guidance replaces the incurred loss impairment methodology in current guidance with a current expected credit loss model (“CECL”) that incorporates a broader range of reasonable and supportable information including the forward-looking information. This guidance is effective for the Company for fiscal years beginning after December 15, 2022, including interim periods within that annual reporting period, with early adoption permitted. Application of the amendments is through a cumulative-effect adjustment to retained earnings as of the effective date. The Company is currently evaluating the impact of adopting this guidance. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes . The new guidance removes certain exceptions for recognizing deferred taxes for investments, performing intra-period allocation and calculating income taxes in interim periods. It also adds guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. This guidance is effective for the Company for fiscal years beginning after December 15, 2021, including interim periods within that annual reporting period, with early adoption permitted with simultaneous adoption of all provisions of the new standard. The Company is currently evaluating the impact of adopting this guidance. Recently Adopted Accounting Pronouncements In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment , which simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. Under the new amendment, the Company is required to perform its annual or interim goodwill impairment test by comparing the fair value of the reporting unit with its carrying amount, and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. The guidance is effective for the Company for fiscal years beginning after December 15, 2022, including interim periods within that annual period, with early adoption permitted. The Company early adopted this guidance prospectively on January 1, 2021, and it did not have any impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, Customer’s Accounting for Implementation costs Incurred in a Cloud Computing Arrangement that is a Service Contract , that requires implementation costs incurred by customers in cloud computing arrangements to be deferred and recognized over the term of the arrangement, if those costs would be capitalized by the customer in a software licensing arrangement under the internal-use software guidance in ASC Topic 350, Intangibles—Goodwill and Other . This guidance is effective for the Company for fiscal years beginning after December 15, 2020, including interim periods within that annual reporting period, with early adoption permitted. The Company early adopted this guidance prospectively on January 1, 2020, and it did not have a material impact on the Company’s consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting . This temporary guidance provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions that reference London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued. ASU 2020-04 is effective as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020 and may be applied prospectively through December 31, 2022. The Company adopted this guidance prospectively on January 1, 2021, and it did not have any impact on the Company’s consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Property, and Equipment, net | Leasehold improvements are amortized over the shorter of the estimated useful life of the asset or the related lease term. Estimated Useful Life Computer equipment 3 years Purchased software 3 years Furniture and fixtures 3 - 7 years Leasehold improvements Lesser of 10 years or remaining lease term Property and equipment, net consists of the following: December 31, December 31, Computer equipment $ 9,361 $ 8,328 Leasehold improvements 6,310 6,365 Furniture and fixtures 2,125 2,266 Construction in progress 721 90 Total property and equipment 18,517 17,049 Less: accumulated depreciation (13,228) (10,848) Total property and equipment, net $ 5,289 $ 6,201 |
Schedule of Finite-Lived Intangible Assets | The estimated useful lives of the Company’s intangible assets are as follows: Estimated Useful Life Licenses 3 - 5 years Trade names 5 years The following table provides the gross carrying value and accumulated amortization for each major class of intangible asset other than goodwill: December 31, 2021 December 31, 2020 Gross Accumulated Net Gross Accumulated Net Amortizable intangible assets: Licenses $ 19,000 $ (1,245) $ 17,755 $ 1,000 $ (500) $ 500 Trade names 1,240 (1,240) — 1,240 (1,116) 124 20,240 (2,485) 17,755 2,240 (1,616) 624 Nonamortizable intangible assets: Marketing Agreement with MGM Resorts International 1,000 — 1,000 1,000 — 1,000 Total intangible assets $ 21,240 $ (2,485) $ 18,755 $ 3,240 $ (1,616) $ 1,624 |
BUSINESS COMBINATION (Tables)
BUSINESS COMBINATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule Of Reverse Recapitalization | The following table summarizes the total number of shares of common stock outstanding immediately following the Closing: Shares Acies public stockholders (1) 10,191 Sponsor (1)(2) 3,724 PLAYSTUDIOS stockholders (excluding the Founder Group) (3) 70,708 Founder Group (3) 16,130 PIPE Investors 25,000 Common Stock 125,753 Class A common stock 109,623 Class B common stock 16,130 (1) Excludes the shares of Class A common stock underlying the Warrants. Reflects the redemption of 11.3 million Acies Class A ordinary shares. (2) Includes 0.9 million shares of Class A common stock, held by Acies Acquisition, LLC (the "Sponsor") that are subject to forfeiture if certain earnout conditions are not satisfied, as the shares are issued and outstanding as of the Closing of the Business Combination. The 0.9 million shares do not have voting rights until the Earnout Triggering Events have occurred. (3) Excludes the shares of Class A and Class B common stock underlying stock options and the Earnout Shares, as they do not represent legally outstanding shares of common stock at Closing. The aggregate consideration for the Business Combination was approximately $1,041.0 million, payable in the form of the Company's Class A and Class B common stock and cash. The following table summarizes the merger consideration (in thousands, except per share information): Consideration Cash consideration $ 102,020 Shares transferred at closing (1) 86,838 Value per share $ 10.00 Share consideration $ 868,380 Total consideration $ 970,400 Shares of common stock underlying vested options 7,060 Value per share $ 10.00 Total consideration for vested options 70,600 Aggregate consideration $ 1,041,000 (1) Excludes shares of common stock underlying stock options that are vested but unexercised as of the closing date of the Business Combination. As the shares do not represent legally outstanding shares of common stock at closing, they are excluded from the total consideration amount. The following table reconciles the elements of the Business Combination to the consolidated statements of cash flows for the year ended December 31, 2021: Cash - Acies Trust and cash (net of redemptions) $ 101,965 Cash - PIPE 230,000 Less: Cash consideration (102,020) Less: Transaction costs, net of proceeds received from exercises of Old PLAYSTUDIOS' warrants (44,775) Net Business Combination and PIPE Financing $ 185,170 |
RELATED-PARTY TRANSACTIONS (Tab
RELATED-PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Summary of Balance Sheet Assets and Liabilities from Related Parties | The following table is a summary of balance sheet assets and liabilities from related parties: December 31, December 31, Financial Statement Line Item Marketing Agreement $ 1,000 $ 1,000 Intangibles, net Marketing Agreement $ — $ 20,000 Accrued liabilities |
RECEIVABLES (Tables)
RECEIVABLES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Schedule Receivables | Receivables consist of the following: December 31, December 31, Trade receivables $ 20,540 $ 16,616 Other receivables 153 — Total receivables $ 20,693 $ 16,616 |
FAIR VALUE MEASUREMENT (Tables)
FAIR VALUE MEASUREMENT (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Financial Assets not Measured at Fair Value on a Recurring Basis | The following tables present the financial assets not measured at fair value on a recurring basis as of December 31, 2021 and December 31, 2020: December 31, 2021 Carrying Value Estimated Fair Value Fair Value Hierarchy Financial Statement Line Item Financial assets: Notes receivable - current $ 8 $ 8 Level 3 Receivables Notes receivable - non-current 3,391 3,391 Level 3 Other long-term assets Advance payment - non-current 8,000 8,000 Level 3 Other long-term assets Total financial assets $ 11,399 $ 11,399 December 31, 2020 Carrying Value Estimated Fair Value Fair Value Hierarchy Financial Statement Line Item Financial assets: Notes receivable - non-current $ 815 $ 815 Level 3 Other long-term assets Total financial assets $ 815 $ 815 |
Liabilities Measured at Fair Value on a Recurring Basis | The following table presents the liabilities measured at fair value on a recurring basis, by input level, in the Consolidated Balance Sheet at December 31, 2021: December 31, 2021 Level 1 Level 2 Level 3 Total Financial liabilities: Public Warrants $ 4,255 — — 4,255 Private Warrants — 2,266 — 2,266 Total financial liabilities $ 4,255 $ 2,266 $ — $ 6,521 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, and Equipment, net | Leasehold improvements are amortized over the shorter of the estimated useful life of the asset or the related lease term. Estimated Useful Life Computer equipment 3 years Purchased software 3 years Furniture and fixtures 3 - 7 years Leasehold improvements Lesser of 10 years or remaining lease term Property and equipment, net consists of the following: December 31, December 31, Computer equipment $ 9,361 $ 8,328 Leasehold improvements 6,310 6,365 Furniture and fixtures 2,125 2,266 Construction in progress 721 90 Total property and equipment 18,517 17,049 Less: accumulated depreciation (13,228) (10,848) Total property and equipment, net $ 5,289 $ 6,201 |
Property and Equipment, net by Region | Property and equipment, net by region consists of the following: December 31, December 31, United States $ 1,672 $ 2,098 EMEA (1) 2,813 3,436 All other regions and countries 804 667 Total property and equipment, net $ 5,289 $ 6,201 (1) Europe, Middle East, and Africa (“EMEA”). Amounts primarily represent leasehold improvements of local office space and computer equipment. |
INTERNAL-USE SOFTWARE, NET (Tab
INTERNAL-USE SOFTWARE, NET (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Research and Development [Abstract] | |
Schedule of Internal-Use Software | Internal-use software, net consists of the following: December 31, December 31, Internal-use software $ 130,942 $ 103,041 Less: accumulated amortization (87,675) (64,285) Total internal-use software, net $ 43,267 $ 38,756 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | The estimated useful lives of the Company’s intangible assets are as follows: Estimated Useful Life Licenses 3 - 5 years Trade names 5 years The following table provides the gross carrying value and accumulated amortization for each major class of intangible asset other than goodwill: December 31, 2021 December 31, 2020 Gross Accumulated Net Gross Accumulated Net Amortizable intangible assets: Licenses $ 19,000 $ (1,245) $ 17,755 $ 1,000 $ (500) $ 500 Trade names 1,240 (1,240) — 1,240 (1,116) 124 20,240 (2,485) 17,755 2,240 (1,616) 624 Nonamortizable intangible assets: Marketing Agreement with MGM Resorts International 1,000 — 1,000 1,000 — 1,000 Total intangible assets $ 21,240 $ (2,485) $ 18,755 $ 3,240 $ (1,616) $ 1,624 |
Schedule of Indefinite-Lived Intangible Assets | The following table provides the gross carrying value and accumulated amortization for each major class of intangible asset other than goodwill: December 31, 2021 December 31, 2020 Gross Accumulated Net Gross Accumulated Net Amortizable intangible assets: Licenses $ 19,000 $ (1,245) $ 17,755 $ 1,000 $ (500) $ 500 Trade names 1,240 (1,240) — 1,240 (1,116) 124 20,240 (2,485) 17,755 2,240 (1,616) 624 Nonamortizable intangible assets: Marketing Agreement with MGM Resorts International 1,000 — 1,000 1,000 — 1,000 Total intangible assets $ 21,240 $ (2,485) $ 18,755 $ 3,240 $ (1,616) $ 1,624 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | As of December 31, 2021, the estimated annual amortization expense for the years ended December 31, 2021 through 2025 is as follows: Year Ending December 31, Projected Amortization 2022 $ 6,745 2023 6,645 2024 4,365 2025 — 2026 — Total $ 17,755 |
ACCRUED LIABILITIES (Tables)
ACCRUED LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consist of the following: December 31, December 31, MGM profit share buyout $ — $ 20,000 Accrued payroll and vacation 5,696 4,860 Minimum guarantee liability 5,200 — Other accruals 4,703 4,229 Total accrued liabilities $ 15,599 $ 29,089 |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue by Type | The following table summarizes the Company’s revenue disaggregated by type, and by over time or point in time recognition: Years Ended December 31, 2021 2020 2019 Virtual currency (over time) (1) $ 280,087 $ 268,137 $ 231,726 Advertising (point in time) 6,964 1,745 383 Other revenue (point in time) $ 368 $ — $ 7,312 Total net revenue $ 287,419 $ 269,882 $ 239,421 (1) Virtual currency is recognized over the estimated consumption period. |
Disaggregation of Revenue by Geography | The following table summarizes the Company’s revenue disaggregated by geography: Years Ended December 31, 2021 2020 2019 United States $ 250,252 $ 228,568 $ 200,418 All other countries 37,167 41,314 39,003 Total net revenue $ 287,419 $ 269,882 $ 239,421 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | Income before income taxes by tax jurisdiction consists of the following: Years Ended December 31, 2021 2020 2019 United States $ 25,181 $ 8,738 $ 11,164 Foreign (14,702) 2,398 6,425 Total income $ 10,479 $ 11,136 $ 17,589 |
Schedule of Components of Income Tax Expense (Benefit) | Provision for current and deferred income taxes consists of the following: Years Ended December 31, 2021 2020 2019 Current tax expense: Federal $ 959 $ 945 $ 241 State 731 297 720 Foreign 396 791 665 Total current tax expense $ 2,086 $ 2,033 $ 1,626 Deferred tax expense: Federal $ 1,443 $ (3,045) $ 1,997 State (404) (748) 55 Foreign (3,383) 89 297 Total deferred tax expense $ (2,344) $ (3,704) $ 2,349 Income tax expense (benefit) $ (258) $ (1,671) $ 3,975 |
Schedule of Effective Income Tax Rate Reconciliation | The difference between the actual rate and the federal statutory rate is as follows: Years Ended December 31, 2021 2020 2019 Statutory rate 21.0 % 21.0 % 21.0 % Foreign provision 0.6 (0.3) (6.5) State/province income tax 4.0 0.1 5.6 Stock compensation (1.6) (19.2) 7.5 Unrecognized tax benefits 8.9 — — Other effects of check-the-box election — (6.2) 0.2 Research credit (11.0) (11.5) (5.9) Adjustment to carrying value 1.5 (4.0) (0.3) Foreign tax credit (4.6) (9.1) (0.7) Valuation allowance 3.2 9.0 — Foreign-derived intangible income deduction (FDII) — (2.7) (1.1) Non-deductible expenses-other 3.4 2.4 2.0 Foreign branch income 1.3 4.5 1.0 Fair value adjustment on warrants (27.9) — — Other (1.3) 1.0 (0.2) Effective tax rate (2.5) % (15.0) % 22.6 % |
Schedule of Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities consist of the following: December 31, 2021 2020 Deferred tax assets: Net operating loss carryforwards $ 10,384 $ — Tax credit carryforwards 4,929 6,882 Accrued liabilities 785 5,576 Stock compensation 2,221 1,457 Charitable contribution 697 — Deferred rent 41 74 Other 89 276 Total gross deferred tax assets $ 19,146 $ 14,265 Less: Valuation allowance (1,334) (1,002) Total deferred tax assets $ 17,812 $ 13,263 Deferred tax liabilities: Intangibles 176 185 Property and equipment 10,189 12,457 Prepaid taxes 1,165 482 Total deferred tax liabilities $ 11,530 $ 13,124 Deferred tax assets (liability), net $ 6,282 $ 139 |
Schedule of Deferred Tax Asset Valuation Allowances | The following is a tabular reconciliation of the total amounts of deferred tax asset valuation allowance: Years Ended December 31, 2021 2020 Balance at beginning of period $ 1,002 $ — Charged to provision for income taxes 332 1,002 Balance at end of period $ 1,334 $ 1,002 |
Schedule of Unrecognized Tax Benefits Roll Forward | The following is a tabular reconciliation of the total amounts of unrecognized tax benefits: Years Ended December 31, 2021 2020 2019 Balance at beginning of period $ — $ — $ — Increases for tax positions of prior years 609 — — Increases for tax positions of current year 148 — — Settlements (120) — — Balance at end of period $ 637 $ — $ — |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Minimum Guaranteed Obligations | The following are the Company’s total minimum guaranteed obligations: Years Ended December 31, 2021 2020 Minimum guarantee liability-current $ 5,200 $ 100 Minimum guarantee liability-noncurrent — 300 Total minimum guarantee obligations $ 5,200 $ 400 Weighted-average remaining term (in years) 2.6 2.5 |
Schedule of Remaining Expected Future Minimum Guarantee Obligations | The following are the Company’s remaining expected future payments of minimum guarantee obligations as of December 31, 2021: Year Ending December 31, Minimum Guarantee 2022 $ 5,200 2023 — 2024 — 2025 — 2026 — Total $ 5,200 |
Future Minimum Rental Commitments | The Company’s future minimum rental commitments as of December 31, 2021, are as follows: Year Ending December 31, Minimum Rental 2022 $ 4,200 2023 4,415 2024 4,349 2025 2,598 2026 and Thereafter 3,177 Total $ 18,739 |
STOCKHOLDERS_ EQUITY (Tables)
STOCKHOLDERS’ EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Summary of Changes in Accumulated Other Comprehensive Income | The following tables show a summary of changes in accumulated other comprehensive income: Currency Total Accumulated Balance as of December 31, 2020 $ 481 $ 481 Foreign currency translation (88) (88) Balance as of December 31, 2021 $ 393 $ 393 Currency Total Accumulated Balance as of December 31, 2019 $ 98 $ 98 Foreign currency translation 383 383 Balance as of December 31, 2020 $ 481 $ 481 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Stock-based Compensation Expense | The following table summarizes stock-based compensation expense that the Company recorded in income (loss) from operations for the periods shown: Years Ended December 31, 2021 2020 2019 Selling and marketing $ 72 $ 94 $ 85 General and administrative 1,704 1,044 964 Research and development 2,679 2,381 4,835 Stock-based compensation expense $ 4,455 $ 3,519 $ 5,884 Capitalized stock-based compensation $ 657 $ 605 $ 912 |
Summary of Stock Option Activity | The following is a summary of stock option activity for time-based options for the year ended December 31, 2021 (in thousands, except weighted-average exercise price and remaining term): No. of Weighted-Average Weighted-Average Aggregate Outstanding - December 31, 2020 18,093 $ 0.85 Granted 128 7.85 Exercised (2,676) 0.90 Forfeited (658) 1.90 Expired (138) 1.63 Outstanding - December 31, 2021 14,749 0.85 6.3 $ 46,246 Unvested - December 31, 2021 3,875 0.88 7.5 12,299 Exercisable - December 31, 2021 10,874 0.84 5.8 33,947 |
Schedule of Weighted-average Assumptions | The following table presents the weighted-average assumptions used to estimate the fair value of the stock options granted in the Company’s consolidated financial statements: For the Years Ended 2021 2020 2019 Expected term (in years) 5.86 5.96 5.93 Expected volatility 51.24% 59.56% 70.00% Risk-free interest rate range 0.54% – 0.60% 0.24% – 0.51% 1.54% – 2.59% Dividend yield 0% 0% 0% Grant-date fair value $4.01 $0.60 $0.27 |
NET INCOME PER SHARE (Tables)
NET INCOME PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule Basic and Diluted Net Income Attributable to Common Stockholders | The following table sets forth the computation of basic and diluted net income attributable to Class A and Class B common stockholders per share (in thousands except per share data): Years Ended December 31, 2021 2020 2019 Class A Class B Class A Class B Class A Class B Numerator Net income attributable to common stockholders – basic $ 9,182 $ 1,555 $ 10,191 $ 2,616 $ 10,819 $ 2,795 Potential dilutive effect of stock options 4 (4) 79 (79) 37 (37) Net income attributable to common stockholders – diluted $ 9,186 $ 1,551 $ 10,270 $ 2,537 $ 10,856 $ 2,758 Denominator Weighted average shares of common stock outstanding - basic 95,588 16,130 73,940 18,977 73,462 18,977 Potential dilutive effect of stock options 11,229 1,951 8,819 1,467 3,914 678 Weighted average shares of common stock outstanding - dilutive 106,817 18,081 82,759 20,444 77,376 19,655 Net income attributable to common stockholders per share Basic $ 0.10 $ 0.10 $ 0.14 $ 0.14 $ 0.15 $ 0.15 Diluted $ 0.09 $ 0.09 $ 0.12 $ 0.12 $ 0.14 $ 0.14 |
Schedule of Excluded Securities from Computation of Diluted Net Income Per Share | The following equity awards outstanding at the end of each period presented have been excluded from the computation of diluted net income per share of common stock for the periods presented due to their anti-dilutive effect: December 31, 2021 December 31, 2020 December 31, 2019 Stock options — 79 6,478 Public Warrants 7,175 — — Private Warrants 3,821 — — Earnout Shares 15,000 — — 25,996 79 6,478 |
BACKGROUND AND BASIS OF PRESE_2
BACKGROUND AND BASIS OF PRESENTATION - Narrative (Details) | 12 Months Ended |
Dec. 31, 2021subsidiary | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Operating segments | 1 |
Reportable segments | 1 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property And Equipment (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Computer equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 3 years |
Purchased software | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 3 years |
Furniture and fixtures | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 3 years |
Furniture and fixtures | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 7 years |
Leasehold improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 10 years |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Intangible Assets (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Internal-Use Software | |
Indefinite-lived Intangible Assets [Line Items] | |
Estimated Useful Life | 3 years |
Licenses | Minimum | |
Indefinite-lived Intangible Assets [Line Items] | |
Estimated Useful Life | 3 years |
Licenses | Maximum | |
Indefinite-lived Intangible Assets [Line Items] | |
Estimated Useful Life | 5 years |
Trade names | |
Indefinite-lived Intangible Assets [Line Items] | |
Estimated Useful Life | 5 years |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Advertising (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounting Policies [Abstract] | |||
Payment terms | Payment terms are stipulated as a specific number of days subsequent to end of the month, ranging from 45 to 60 days. | ||
Advertising expense | $ 70.3 | $ 49.3 | $ 53.8 |
BUSINESS COMBINATION - Narrativ
BUSINESS COMBINATION - Narrative (Details) $ / shares in Units, $ in Thousands, shares in Millions | Jun. 21, 2021USD ($)voted$ / sharesshares | Dec. 31, 2020$ / shares | Dec. 31, 2021USD ($)vote$ / shares | Dec. 31, 2020USD ($)$ / shares | Dec. 31, 2021USD ($)vote$ / shares |
Schedule of Reverse Recapitalization [Line Items] | |||||
Recapitalization exchange ratio | 0.233 | ||||
Maximum aggregate cash electing shares available percent | 15.00% | ||||
Threshold trading days | d | 20 | ||||
Threshold consecutive trading days | d | 30 | ||||
Value per share (USD per share) | $ 10 | ||||
Aggregate purchase price | $ | $ 868,380 | ||||
Equity issuance costs | $ | 32,800 | ||||
Expenses primarily related to advisory, legal, and accounting fees | $ | $ 100 | $ 1,300 | $ 1,400 | ||
Aggregate consideration | $ | 1,041,000 | ||||
MGM | MGM | Marketing Agreement | |||||
Schedule of Reverse Recapitalization [Line Items] | |||||
Payment to terminate profit share provision | $ | $ 20,000 | ||||
Earnout tranche one | |||||
Schedule of Reverse Recapitalization [Line Items] | |||||
Stock closing price trigger (USD per share) | $ 12.50 | ||||
Earnout tranche two | |||||
Schedule of Reverse Recapitalization [Line Items] | |||||
Stock closing price trigger (USD per share) | $ 15 | ||||
Acies | |||||
Schedule of Reverse Recapitalization [Line Items] | |||||
Issued shares (shares) | shares | 25 | ||||
Value per share (USD per share) | $ 10 | ||||
Aggregate purchase price | $ | $ 250,000 | ||||
Acies | Redeemable warrant | |||||
Schedule of Reverse Recapitalization [Line Items] | |||||
Recapitalization exchange ratio | 0.33333 | ||||
Class A common stock | |||||
Schedule of Reverse Recapitalization [Line Items] | |||||
Votes per share | vote | 1 | 1 | 1 | ||
Common stock, par value (USD per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 |
Recapitalization exchange ratio | 1 | ||||
Class A common stock | Acies | |||||
Schedule of Reverse Recapitalization [Line Items] | |||||
Common stock, par value (USD per share) | $ 0.0001 | ||||
Recapitalization exchange ratio | 1 | ||||
Class B common stock | |||||
Schedule of Reverse Recapitalization [Line Items] | |||||
Votes per share | vote | 20 | 20 | 20 | ||
Common stock, par value (USD per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | |
Old PLAYSTUDIOS Stock | |||||
Schedule of Reverse Recapitalization [Line Items] | |||||
Cash exchange ratio (USD per share) | $ 2.33 | ||||
Recapitalization exchange ratio | 0.233 | ||||
Earnout Shares | |||||
Schedule of Reverse Recapitalization [Line Items] | |||||
Additional "Earn out" shares (shares) | shares | 15 |
BUSINESS COMBINATION - Schedule
BUSINESS COMBINATION - Schedule Total Number of Common Shares Outstanding After Closing (Details) - shares shares in Thousands | Jun. 21, 2021 | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule of Reverse Recapitalization [Line Items] | |||
Common stock outstanding (shares) | 125,753 | ||
Class A common stock | |||
Schedule of Reverse Recapitalization [Line Items] | |||
Common stock outstanding (shares) | 109,623 | 110,066 | 74,421 |
Class A common stock | Acies | |||
Schedule of Reverse Recapitalization [Line Items] | |||
Redemption (shares) | 11,300 | ||
Class B common stock | |||
Schedule of Reverse Recapitalization [Line Items] | |||
Common stock outstanding (shares) | 16,130 | 16,130 | 18,977 |
Acies | |||
Schedule of Reverse Recapitalization [Line Items] | |||
Common stock outstanding (shares) | 10,191 | ||
Sponsor | |||
Schedule of Reverse Recapitalization [Line Items] | |||
Common stock outstanding (shares) | 3,724 | ||
Sponsor | Class A common stock | |||
Schedule of Reverse Recapitalization [Line Items] | |||
Common stock outstanding (shares) | 900 | ||
PLAYSTUDIOS Stockholders excluding Founders Group | |||
Schedule of Reverse Recapitalization [Line Items] | |||
Common stock outstanding (shares) | 70,708 | ||
Founder Group | Class B common stock | Founder Group | |||
Schedule of Reverse Recapitalization [Line Items] | |||
Common stock outstanding (shares) | 16,130 | ||
PIPE Investment Shareholders | |||
Schedule of Reverse Recapitalization [Line Items] | |||
Common stock outstanding (shares) | 25,000 |
BUSINESS COMBINATION - Schedu_2
BUSINESS COMBINATION - Schedule Aggregate Consideration (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | Jun. 21, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Business Combination and Asset Acquisition [Abstract] | ||||
Cash consideration | $ 102,020 | |||
Shares transferred at closing | 86,838 | |||
Value per share (USD per share) | $ 10 | |||
Share consideration | $ 868,380 | |||
Total consideration | $ 970,400 | $ 185,170 | $ 0 | $ 0 |
Shares of common stock underlying vested options (shares) | 7,060 | |||
Total consideration for vested options | $ 70,600 | |||
Aggregate consideration | $ 1,041,000 |
BUSINESS COMBINATION - Reconcil
BUSINESS COMBINATION - Reconciliation to Condensed Consolidated Statements of Cash Flows (Details) $ in Thousands | Jun. 21, 2021USD ($) |
Business Combination and Asset Acquisition [Abstract] | |
Cash - Acies Trust and cash (net of redemptions) | $ 101,965 |
Cash - PIPE | 230,000 |
Less: Cash consideration | (102,020) |
Less: Transaction costs, net of proceeds received from exercises of Old PLAYSTUDIOS' warrants | (44,775) |
Net Business Combination and PIPE Financing | $ 185,170 |
RELATED-PARTY TRANSACTIONS - Su
RELATED-PARTY TRANSACTIONS - Summary of Balance Sheet Assets and Liabilities from Related Parties (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Related Party Transaction [Line Items] | ||
Intangibles, net | $ 18,755 | $ 1,624 |
MGM | Marketing Agreement | ||
Related Party Transaction [Line Items] | ||
Intangibles, net | $ 1,000 | 1,000 |
Accrued liabilities | $ 20,000 |
RELATED-PARTY TRANSACTIONS - Na
RELATED-PARTY TRANSACTIONS - Narrative (Details) - USD ($) shares in Thousands | Jul. 21, 2021 | Jun. 21, 2021 | Oct. 30, 2020 | Jul. 31, 2012 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Related Party Transaction [Line Items] | |||||||
Revenues recognized from related parties | $ 0 | $ 0 | |||||
Charitable contribution paid | $ 2,500,000 | ||||||
Common stock, shares outstanding | 125,753 | ||||||
MGM | Marketing Agreement | |||||||
Related Party Transaction [Line Items] | |||||||
Related parties liabilities | $ 20,000,000 | ||||||
MGM | MGM | |||||||
Related Party Transaction [Line Items] | |||||||
Common stock, shares outstanding | 16,600 | 14,600 | |||||
MGM | MGM | Marketing Agreement | |||||||
Related Party Transaction [Line Items] | |||||||
Initial term | 1 year | ||||||
Renewal term | 2 years | ||||||
Automatic nonperformance renewal term | 1 year | ||||||
Automatic renewal term | 1 year | ||||||
Shares issued (shares) | 19,200 | ||||||
Percent of common stock issued | 10.00% | ||||||
Related parties liabilities | $ 20,000,000 | ||||||
Payment term | 2 years | ||||||
Reinvestment | $ 20,000,000 | ||||||
Agreed private placement | 50,000,000 | ||||||
Equity contribution in settlement of liability | $ 20,000,000 | ||||||
MGM | MGM | MGM Amendment | |||||||
Related Party Transaction [Line Items] | |||||||
Related parties liabilities | $ 20,000,000 | $ 0 | |||||
Payment term | 2 years | ||||||
Reinvestment | $ 20,000,000 | ||||||
Profit share expense | $ 0 | $ 300,000 | $ 0 |
RECEIVABLES - Schedule Receivab
RECEIVABLES - Schedule Receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Receivables [Abstract] | ||
Trade receivables | $ 20,540 | $ 16,616 |
Other receivables | 153 | 0 |
Total receivables | $ 20,693 | $ 16,616 |
RECEIVABLES - Narrative (Detail
RECEIVABLES - Narrative (Details) - USD ($) | Nov. 22, 2021 | Dec. 31, 2021 | Dec. 31, 2020 |
Receivables [Abstract] | |||
Allowance for doubtful accounts | $ 0 | $ 0 | |
Licenses | |||
Concentration Risk [Line Items] | |||
Payment on conditions | $ 13,000,000 | 13,000,000 | |
Subject to satisfaction of certain conditions | Maximum | |||
Concentration Risk [Line Items] | |||
Maximum amount of loss | 9,700,000 | ||
Subject to satisfaction of certain conditions | Licenses | |||
Concentration Risk [Line Items] | |||
Payment on conditions | $ 8,000,000 | $ 8,000,000 | |
Customer concentration | Accounts Receivable | Apple, Inc. | |||
Concentration Risk [Line Items] | |||
Concentration percentage | 43.00% | 49.00% | |
Customer concentration | Accounts Receivable | Google, Inc. | |||
Concentration Risk [Line Items] | |||
Concentration percentage | 34.60% | 43.00% |
FAIR VALUE MEASUREMENT - Financ
FAIR VALUE MEASUREMENT - Financial Assets not Measured at Fair Value on a Recurring Basis (Details) - Nonrecurring - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | $ 11,399 | $ 815 |
Carrying Value | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes receivable | 815 | |
Carrying Value | Level 3 | Notes receivable - current | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes receivable | 8 | |
Carrying Value | Level 3 | Notes receivable - non-current | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes receivable | 3,391 | |
Advance payment - non-current | 8,000 | |
Estimated Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 11,399 | 815 |
Estimated Fair Value | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes receivable | $ 815 | |
Estimated Fair Value | Level 3 | Notes receivable - current | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes receivable | 8 | |
Estimated Fair Value | Level 3 | Notes receivable - non-current | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes receivable | 3,391 | |
Advance payment - non-current | $ 8,000 |
FAIR VALUE MEASUREMENT - Liabil
FAIR VALUE MEASUREMENT - Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Warrant liabilities | $ 6,521 | $ 0 |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Warrant liabilities | 6,521 | |
Recurring | Public Warrants | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Warrant liabilities | 4,255 | |
Recurring | Private Warrants | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Warrant liabilities | 2,266 | |
Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Warrant liabilities | 4,255 | |
Recurring | Level 1 | Public Warrants | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Warrant liabilities | 4,255 | |
Recurring | Level 1 | Private Warrants | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Warrant liabilities | 0 | |
Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Warrant liabilities | 2,266 | |
Recurring | Level 2 | Public Warrants | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Warrant liabilities | 0 | |
Recurring | Level 2 | Private Warrants | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Warrant liabilities | 2,266 | |
Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Warrant liabilities | 0 | |
Recurring | Level 3 | Public Warrants | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Warrant liabilities | 0 | |
Recurring | Level 3 | Private Warrants | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Warrant liabilities | $ 0 |
PROPERTY AND EQUIPMENT, NET - P
PROPERTY AND EQUIPMENT, NET - Property, and Equipment, net (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 18,517 | $ 17,049 |
Less: accumulated depreciation | (13,228) | (10,848) |
Total property and equipment, net | 5,289 | 6,201 |
Computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 9,361 | 8,328 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 6,310 | 6,365 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 2,125 | 2,266 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 721 | $ 90 |
PROPERTY AND EQUIPMENT, NET - N
PROPERTY AND EQUIPMENT, NET - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 2,800,000 | $ 2,800,000 | $ 2,600,000 |
Impairment charges or write-offs | $ 0 | $ 0 | $ 0 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, net | $ 5,289 | $ 6,201 |
United States | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, net | 1,672 | 2,098 |
EMEA | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, net | 2,813 | 3,436 |
All other regions and countries | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, net | $ 804 | $ 667 |
INTERNAL-USE SOFTWARE, NET (Det
INTERNAL-USE SOFTWARE, NET (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Research and Development [Abstract] | ||
Internal-use software | $ 130,942 | $ 103,041 |
Less: accumulated amortization | (87,675) | (64,285) |
Total internal-use software, net | $ 43,267 | $ 38,756 |
INTERNAL-USE SOFTWARE, NET - NA
INTERNAL-USE SOFTWARE, NET - NARRATIVE (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Research and Development [Abstract] | |||
Capitalized internal-use software development costs | $ 28,300,000 | $ 25,800,000 | $ 21,900,000 |
Amortization expense | 23,700,000 | 18,700,000 | 21,100,000 |
Finite-Lived Intangible Assets [Line Items] | |||
Impairment charges | 0 | 0 | $ 0 |
Internal-use software | 130,942,000 | 103,041,000 | |
Accumulated amortization | 87,675,000 | $ 64,285,000 | |
Kingdom Boss | |||
Finite-Lived Intangible Assets [Line Items] | |||
Internal-use software | 8,700,000 | ||
Accumulated amortization | $ 100,000 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - NARRATIVE (Details) - USD ($) | Nov. 22, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Goodwill | $ 5,059,000 | $ 5,059,000 | ||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization | 900,000 | 700,000 | $ 1,400,000 | |
Impairment charges | 0 | $ 0 | ||
Licenses | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Payment on conditions | $ 13,000,000 | 13,000,000 | ||
Licenses | Subject to satisfaction of certain conditions | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Payment on conditions | 8,000,000 | 8,000,000 | ||
Additional payment (up to) | $ 34,000,000 | $ 34,000,000 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - INTANGIBLE ASSETS, OTHER THAN GOODWILL (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangible assets, Gross Carrying Amount | $ 20,240 | $ 2,240 |
Amortizable intangible assets, Accumulated Amortization | (2,485) | (1,616) |
Total | 17,755 | 624 |
Indefinite-lived Intangible Assets [Line Items] | ||
Total intangible assets, Gross Carrying Amount | 21,240 | 3,240 |
Total intangible assets, Net Carrying Amount | 18,755 | 1,624 |
Marketing Agreement with MGM Resorts International | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Nonamortizable intangible assets | 1,000 | 1,000 |
Licenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangible assets, Gross Carrying Amount | 19,000 | 1,000 |
Amortizable intangible assets, Accumulated Amortization | (1,245) | (500) |
Total | 17,755 | 500 |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangible assets, Gross Carrying Amount | 1,240 | 1,240 |
Amortizable intangible assets, Accumulated Amortization | (1,240) | (1,116) |
Total | $ 0 | $ 124 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS - PROJECTED AMORTIZATION EXPENSE (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2022 | $ 6,745 | |
2023 | 6,645 | |
2024 | 4,365 | |
2025 | 0 | |
2026 | 0 | |
Total | $ 17,755 | $ 624 |
WARRANT LIABILITIES (Details)
WARRANT LIABILITIES (Details) - $ / shares | Jun. 21, 2021 | Dec. 31, 2021 |
Public Warrants | ||
Class of Warrant or Right [Line Items] | ||
Warrants outstanding (shares) | 7,200,000 | 7,200,000 |
Redemption price (USD per share) | $ 11.50 | |
Warrants expiration term | 5 years | |
Redemption price (USD per share) | $ 0.01 | |
Minimum days notice to redeem | 30 days | |
Threshold stock price for warrant redemption (USD per share) | $ 18 | |
Days before redemption notice | 3 days | |
Threshold trading days | 20 days | |
Threshold consecutive trading days | 30 days | |
Private Warrants | ||
Class of Warrant or Right [Line Items] | ||
Warrants outstanding (shares) | 3,800,000 | 3,800,000 |
Warrant to share conversion (shares) | 1 |
ACCRUED LIABILITIES - Schedule
ACCRUED LIABILITIES - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Payables and Accruals [Abstract] | ||
MGM profit share buyout | $ 0 | $ 20,000 |
Accrued payroll and vacation | 5,696 | 4,860 |
Minimum guarantee liability | 5,200 | 0 |
Other accruals | 4,703 | 4,229 |
Accrued liabilities | $ 15,599 | $ 29,089 |
ACCRUED LIABILITIES - Narrative
ACCRUED LIABILITIES - Narrative (Details) - MGM - MGM Amendment - MGM - USD ($) $ in Thousands | Oct. 30, 2020 | Dec. 31, 2021 |
Related Party Transaction [Line Items] | ||
Related parties liabilities | $ 20,000 | $ 0 |
Payment term | 2 years |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |||
Net revenue | $ 287,419,000 | $ 269,882,000 | $ 239,421,000 |
Contract assets | 0 | 0 | |
United States | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | 250,252,000 | 228,568,000 | 200,418,000 |
All other countries | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | 37,167,000 | 41,314,000 | 39,003,000 |
Over time | Virtual currency (over time) | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | 280,087,000 | 268,137,000 | 231,726,000 |
Point in time | Advertising (point in time) | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | 6,964,000 | 1,745,000 | 383,000 |
Point in time | Other revenue (point in time) | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | $ 368,000 | $ 0 | $ 7,312,000 |
LONG-TERM DEBT (Details)
LONG-TERM DEBT (Details) | Jun. 24, 2021USD ($) | Dec. 31, 2021USD ($) | Mar. 27, 2020USD ($) |
Line of Credit Facility [Line Items] | |||
Write off of debt issuance costs capitalized | $ 100,000 | ||
Revolver | Credit Agreement | |||
Line of Credit Facility [Line Items] | |||
Expiration period | 5 years | ||
Maximum borrowing amount | $ 75,000,000 | ||
Maximum Net Leverage Ratio | 3.50 | ||
Maximum Net Leverage Ratio for material acquisitions | 4 | ||
Minimum Fixed Charge Coverage Ratio | 1.25 | ||
Debt issuance costs capitalized | $ 700,000 | ||
Revolver | Credit Agreement | Eurodollar | |||
Line of Credit Facility [Line Items] | |||
Applicable margin | 2.50% | ||
Applicable floor margin | 0.00% | ||
Revolver | Credit Agreement | Alternate Base Rate | |||
Line of Credit Facility [Line Items] | |||
Applicable margin | 1.50% | ||
Applicable floor margin | 1.00% | ||
Letters of credit | SVB | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing amount | $ 3,000,000 |
INCOME TAXES - Income Before In
INCOME TAXES - Income Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 25,181 | $ 8,738 | $ 11,164 |
Foreign | (14,702) | 2,398 | 6,425 |
Income before income taxes | $ 10,479 | $ 11,136 | $ 17,589 |
INCOME TAXES - Provision For Cu
INCOME TAXES - Provision For Current And Deferred Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current tax expense: | |||
Federal | $ 959 | $ 945 | $ 241 |
State | 731 | 297 | 720 |
Foreign | 396 | 791 | 665 |
Total current tax expense | 2,086 | 2,033 | 1,626 |
Deferred tax expense: | |||
Federal | 1,443 | (3,045) | 1,997 |
State | (404) | (748) | 55 |
Foreign | (3,383) | 89 | 297 |
Deferred income tax (benefit) expense | (2,344) | (3,704) | 2,349 |
Income tax expense (benefit) | $ (258) | $ (1,671) | $ 3,975 |
INCOME TAXES - Difference Betwe
INCOME TAXES - Difference Between The Actual Rate And The Federal Statutory Rate (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Statutory rate | 21.00% | 21.00% | 21.00% |
Foreign provision | 0.60% | (0.30%) | (6.50%) |
State/province income tax | 4.00% | 0.10% | 5.60% |
Stock compensation | (1.60%) | (19.20%) | 7.50% |
Unrecognized tax benefits | 8.90% | 0.00% | 0.00% |
Other effects of check-the-box election | 0.00% | (6.20%) | 0.20% |
Research credit | (11.00%) | (11.50%) | (5.90%) |
Adjustment to carrying value | 1.50% | (4.00%) | (0.30%) |
Foreign tax credit | (4.60%) | (9.10%) | (0.70%) |
Valuation allowance | 3.20% | 9.00% | 0.00% |
Effective Income Tax Rate Reconciliation, Foreign-derived intangible income deduction (FDII) | 0.00% | (2.70%) | (1.10%) |
Non-deductible expenses-other | 3.40% | 2.40% | 2.00% |
Foreign branch income | 1.30% | 4.50% | 1.00% |
Fair value adjustment on warrants | (27.90%) | ||
Other | (1.30%) | 1.00% | (0.20%) |
Effective tax rate | (2.50%) | (15.00%) | 22.60% |
INCOME TAXES - Deferred Tax Ass
INCOME TAXES - Deferred Tax Assets And Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 10,384 | $ 0 |
Tax credit carryforwards | 4,929 | 6,882 |
Accrued liabilities | 785 | 5,576 |
Stock compensation | 2,221 | 1,457 |
Charitable contribution | 697 | 0 |
Deferred rent | 41 | 74 |
Other | 89 | 276 |
Total gross deferred tax assets | 19,146 | 14,265 |
Less: Valuation allowance | (1,334) | (1,002) |
Total deferred tax assets | 17,812 | 13,263 |
Deferred tax liabilities: | ||
Intangibles | 176 | 185 |
Property and equipment | 10,189 | 12,457 |
Prepaid taxes | 1,165 | 482 |
Total deferred tax liabilities | 11,530 | 13,124 |
Deferred tax assets (liability), net | $ 6,282 | $ 139 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Loss Carryforwards [Line Items] | ||
Foreign tax credit subject to expiration | $ 1,300 | |
Valuation allowance | 1,334 | $ 1,002 |
Tax effected federal research credit carryforwards | 600 | |
Tax effected state net operating loss carryforwards | 1,900 | |
Unrecognized tax benefits that impact the effective tax rate, if recognized | 600 | |
Tax interest and penalties accrued | 100 | |
Audit adjustment | 100 | |
Federal | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 40,000 | |
State | California | ||
Operating Loss Carryforwards [Line Items] | ||
Tax effected federal research credit carryforwards | 3,100 | |
State | Texas | ||
Operating Loss Carryforwards [Line Items] | ||
Tax effected federal research credit carryforwards | 600 | |
Foreign tax credit and other foreign deferred tax assets | ||
Operating Loss Carryforwards [Line Items] | ||
Valuation allowance | $ 1,300 |
INCOME TAXES - Deferred Tax A_2
INCOME TAXES - Deferred Tax Asset Valuation Allowance (Details) - Deferred tax asset valuation allowance - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Balance at beginning of period | $ 1,002 | $ 0 |
Charged to provision for income taxes | 332 | 1,002 |
Balance at end of period | $ 1,334 | $ 1,002 |
INCOME TAXES - Total Amounts Of
INCOME TAXES - Total Amounts Of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of period | $ 0 | $ 0 | $ 0 |
Increases for tax positions of prior years | 609 | 0 | 0 |
Increases for tax positions of current year | 148 | 0 | 0 |
Settlements | (120) | 0 | 0 |
Balance at end of period | $ 637 | $ 0 | $ 0 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Schedule of Minimum Guaranteed Obligations (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Commitments and Contingencies Disclosure [Abstract] | ||
Minimum guarantee liability-current | $ 5,200 | $ 100 |
Minimum guarantee liability-noncurrent | 0 | 300 |
Total minimum guarantee obligations | $ 5,200 | $ 400 |
Weighted-average remaining term (in years) | 2 years 7 months 6 days | 2 years 6 months |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Schedule of Remaining Expected Future Minimum Guarantee Obligations (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Commitments and Contingencies Disclosure [Abstract] | ||
2022 | $ 5,200 | |
2023 | 0 | |
2024 | 0 | |
2025 | 0 | |
2026 | 0 | |
Total minimum guarantee obligations | $ 5,200 | $ 400 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES - Narrative (Details) ₪ in Millions, $ in Millions | Nov. 22, 2021USD ($) | May 31, 2021ILS (₪) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Lessee, Lease, Description [Line Items] | |||||
Rental expense | $ 4.7 | $ 4.7 | $ 4.3 | ||
Licenses | |||||
Lessee, Lease, Description [Line Items] | |||||
Payment on conditions | $ 13 | 13 | |||
Licenses | Subject to satisfaction of certain conditions | |||||
Lessee, Lease, Description [Line Items] | |||||
Additional payment (up to) | 34 | 34 | |||
Payment on conditions | $ 8 | $ 8 | |||
TeamSava and other related parties | Pending litigation | |||||
Lessee, Lease, Description [Line Items] | |||||
Damages sought | ₪ | ₪ 27.3 | ||||
Minimum | |||||
Lessee, Lease, Description [Line Items] | |||||
Lease renewal option periods | 2 years | ||||
Maximum | |||||
Lessee, Lease, Description [Line Items] | |||||
Lease renewal option periods | 5 years |
COMMITMENTS AND CONTINGENCIES_4
COMMITMENTS AND CONTINGENCIES - Future Minimum Rental Commitments (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2022 | $ 4,200 |
2023 | 4,415 |
2024 | 4,349 |
2025 | 2,598 |
2026 and Thereafter | 3,177 |
Total | $ 18,739 |
STOCKHOLDERS_ EQUITY - Narrativ
STOCKHOLDERS’ EQUITY - Narrative (Details) $ in Millions | Nov. 10, 2021USD ($) | Jun. 21, 2021voteshares | Dec. 31, 2020shares | Dec. 31, 2021voteshares |
Class of Stock [Line Items] | ||||
Recapitalization exchange ratio | 0.233 | |||
Share conversion factor | 1 | |||
Common stock outstanding (shares) | 125,753,000 | |||
Ownership conversion trigger percent | 20.00% | |||
Founder's death anniversary trigger | 9 months | |||
Stock repurchase program (up to) | $ | $ 50 | |||
Stock Repurchase Program period | 12 months | |||
Class A common stock | ||||
Class of Stock [Line Items] | ||||
Recapitalization exchange ratio | 1 | |||
Common stock, shares authorized | 2,000,000,000 | 2,000,000,000 | ||
Common stock, shares issued | 74,421,000 | 110,066,000 | ||
Common stock outstanding (shares) | 109,623,000 | 74,421,000 | 110,066,000 | |
Votes per share | vote | 1 | 1 | ||
Class B common stock | ||||
Class of Stock [Line Items] | ||||
Common stock, shares authorized | 25,000,000 | 25,000,000 | ||
Common stock, shares issued | 18,977,000 | 16,130,000 | ||
Common stock outstanding (shares) | 16,130,000 | 18,977,000 | 16,130,000 | |
Votes per share | vote | 20 | 20 |
STOCKHOLDERS_ EQUITY - Summary
STOCKHOLDERS’ EQUITY - Summary of Changes in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | $ 96,079 | $ 80,313 | $ 65,146 |
Foreign currency translation | (88) | 383 | 179 |
Ending balance | 303,467 | 96,079 | 80,313 |
Currency Translation Adjustment | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | 481 | 98 | |
Foreign currency translation | (88) | 383 | |
Ending balance | 393 | 481 | 98 |
Total Accumulated Other Comprehensive Income | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | 481 | 98 | (81) |
Foreign currency translation | (88) | 383 | 179 |
Ending balance | $ 393 | $ 481 | $ 98 |
STOCK-BASED COMPENSATION - Narr
STOCK-BASED COMPENSATION - Narrative (Details) $ in Thousands | Jun. 21, 2021shares | Jun. 17, 2021shares | Dec. 31, 2020shares | Mar. 03, 2022USD ($)shares | Dec. 31, 2021USD ($)shares | Dec. 31, 2020USD ($)shares | Dec. 31, 2019USD ($) |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||||
Recapitalization exchange ratio | 0.233 | ||||||
Common stock outstanding (shares) | 125,753,000 | ||||||
Options outstanding (shares) | 18,093,000 | 14,749,000 | 18,093,000 | ||||
Stock-based compensation expense | $ | $ 4,455 | $ 3,519 | $ 5,884 | ||||
Total unrecognized compensation expense, option | $ | 5,900 | ||||||
The total intrinsic value of stock options exercised | $ | $ 17,600 | $ 19,600 | $ 1,200 | ||||
Class B common stock | |||||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||||
Common stock outstanding (shares) | 16,130,000 | 18,977,000 | 16,130,000 | 18,977,000 | |||
2011 Plan | |||||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||||
Aggregate number of authorized shares | 16,700,000 | ||||||
Maximum annual increase in number of shares of common stock issued and outstanding | 5.00% | ||||||
Cash Electing Share | |||||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||||
Recapitalization exchange ratio | 0.233 | ||||||
Stock options | |||||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||||
Remaining average period cost expected to be recognized over | 1 year 7 months 6 days | ||||||
Stock options | 2011 Plan | |||||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||||
Maximum term | 10 years | ||||||
Stock options | 2011 Plan | Minimum | |||||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||||
Vesting period | 3 years | ||||||
Stock options | 2011 Plan | Maximum | |||||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||||
Vesting period | 4 years | ||||||
RSUs | Subsequent Event | |||||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||||
Total unrecognized compensation expense, option | $ | $ 32,500 | ||||||
Remaining average period cost expected to be recognized over | 2 years 8 months 12 days | ||||||
Granted (shares) | 7,600,000 | ||||||
Mr. Pascal | |||||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||||
Stock-based compensation expense | $ | $ 1,100 | ||||||
Founder Group | Founder Group | Class B common stock | |||||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||||
Common stock outstanding (shares) | 16,100,000 | ||||||
Voting percent | 74.60% | ||||||
Options outstanding (shares) | 2,200,000 |
STOCK-BASED COMPENSATION - Summ
STOCK-BASED COMPENSATION - Summary of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation expense | $ 4,455 | $ 3,519 | $ 5,884 |
Capitalized stock-based compensation | 657 | 605 | 912 |
Selling and marketing | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation expense | 72 | 94 | 85 |
General and administrative | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation expense | 1,704 | 1,044 | 964 |
Research and development | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation expense | $ 2,679 | $ 2,381 | $ 4,835 |
STOCK-BASED COMPENSATION - Su_2
STOCK-BASED COMPENSATION - Summary of Stock Option Activity (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($)$ / sharesshares | |
No. of Options | |
Beginning balance outstanding (shares) | shares | 18,093 |
Granted (shares) | shares | 128 |
Exercised (shares) | shares | (2,676) |
Forfeited (shares) | shares | (658) |
Expired (shares) | shares | (138) |
Ending balance outstanding (shares) | shares | 14,749 |
Unvested (shares) | shares | 3,875 |
Exercisable (shares) | shares | 10,874 |
Weighted-Average Exercise Price | |
Beginning balance outstanding (USD per share) | $ / shares | $ 0.85 |
Granted (USD per share) | $ / shares | 7.85 |
Exercised (USD per share) | $ / shares | 0.90 |
Forfeited (USD per share) | $ / shares | 1.90 |
Expired (USD per share) | $ / shares | 1.63 |
Ending balance outstanding (USD per share) | $ / shares | 0.85 |
Unvested (USD per share) | $ / shares | 0.88 |
Exercisable (USD per share) | $ / shares | $ 0.84 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |
Outstanding - Weighted-Average Remaining Term (in Years) | 6 years 3 months 18 days |
Unvested - Weighted-Average Remaining Term (in Years) | 7 years 6 months |
Exercisable - Weighted-Average Remaining Term (in Years) | 5 years 9 months 18 days |
Outstanding - Aggregate Intrinsic Value | $ | $ 46,246 |
Unvested - Aggregate Intrinsic Value | $ | 12,299 |
Exercisable - Aggregate Intrinsic Value | $ | $ 33,947 |
STOCK-BASED COMPENSATION - Sche
STOCK-BASED COMPENSATION - Schedule of Weighted-average Assumptions (Details) - Options - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 5 years 10 months 9 days | 5 years 11 months 15 days | 5 years 11 months 4 days |
Expected volatility | 51.24% | 59.56% | 70.00% |
Risk-free interest rate range, minimum | 0.54% | 0.24% | 1.54% |
Risk-free interest rate range, maximum | 0.60% | 0.51% | 2.59% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Grant-date fair value (USD per share) | $ 4.01 | $ 0.60 | $ 0.27 |
NET INCOME PER SHARE - Schedule
NET INCOME PER SHARE - Schedule Basic and Diluted Net Income Attributable to Common Stockholders (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Numerator | |||
Net income | $ 10,737 | $ 12,807 | $ 13,614 |
Denominator | |||
Weighted average shares of common stock outstanding - basic (shares) | 111,718 | 92,917 | 92,439 |
Weighted average shares of common stock outstanding - diluted (shares) | 124,898 | 103,203 | 97,031 |
Net income attributable to common stockholders per share | |||
Basic (USD per share) | $ 0.10 | $ 0.14 | $ 0.15 |
Diluted (USD per share) | $ 0.09 | $ 0.12 | $ 0.14 |
Class A common stock | |||
Numerator | |||
Net income | $ 9,182 | $ 10,191 | $ 10,819 |
Potential dilutive effect of stock options | 4 | 79 | 37 |
Net income attributable to common stockholders – diluted | $ 9,186 | $ 10,270 | $ 10,856 |
Denominator | |||
Weighted average shares of common stock outstanding - basic (shares) | 95,588 | 73,940 | 73,462 |
Potential dilutive effect of stock options and RSUs (shares) | 11,229 | 8,819 | 3,914 |
Weighted average shares of common stock outstanding - diluted (shares) | 106,817 | 82,759 | 77,376 |
Net income attributable to common stockholders per share | |||
Basic (USD per share) | $ 0.10 | $ 0.14 | $ 0.15 |
Diluted (USD per share) | $ 0.09 | $ 0.12 | $ 0.14 |
Class B common stock | |||
Numerator | |||
Net income | $ 1,555 | $ 2,616 | $ 2,795 |
Potential dilutive effect of stock options | (4) | (79) | (37) |
Net income attributable to common stockholders – diluted | $ 1,551 | $ 2,537 | $ 2,758 |
Denominator | |||
Weighted average shares of common stock outstanding - basic (shares) | 16,130 | 18,977 | 18,977 |
Potential dilutive effect of stock options and RSUs (shares) | 1,951 | 1,467 | 678 |
Weighted average shares of common stock outstanding - diluted (shares) | 18,081 | 20,444 | 19,655 |
Net income attributable to common stockholders per share | |||
Basic (USD per share) | $ 0.10 | $ 0.14 | $ 0.15 |
Diluted (USD per share) | $ 0.09 | $ 0.12 | $ 0.14 |
NET INCOME PER SHARE - Schedu_2
NET INCOME PER SHARE - Schedule of Excluded Securities from Computation of Diluted Net Income Per Share (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive securities | 25,996 | 79 | 6,478 |
Stock options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive securities | 0 | 79 | 6,478 |
Public Warrants | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive securities | 7,175 | 0 | 0 |
Private Warrants | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive securities | 3,821 | 0 | 0 |
Earnout Shares | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive securities | 15,000 | 0 | 0 |