Record Gold Fish® Casino Revenue Including 4th Consecutive Quarter of Growth
SciPlay Corporation (NASDAQ: SCPL) (“SciPlay” or the “Company”) today reported results for the third quarter ended September 30, 2021.
Josh Wilson, Chief Executive Officer of SciPlay, said, “Our team executed a number of operational achievements in the quarter, continuing the strong momentum across key areas of the business. Gold Fish® Casino delivered another exceptional quarter in Q3 and has huge momentum going into Q4. The launch of our newly redesigned Quick Hit is gaining traction, up 30% since June. The quarter was impacted by an event isolated in Jackpot Party® Casino, which we identified and addressed quickly, with the impact limited to the third quarter. With Jackpot Party rebounding, we expect SciPlay to return to both year over year and sequential growth in the fourth quarter. Solitaire Pets® Adventure has now launched world-wide and Project X is tracking ahead of schedule as we continue to expand in casual and diversify our revenue streams.”
Daniel O’Quinn, Interim Chief Financial Officer of SciPlay, added, “We are very pleased as we continued to deliver strong monetization metrics, maintaining an 8.5% payer conversion record following 7 consecutive quarters of growth, in addition to generating ARPDAU of $0.69. Monthly paying users and average monthly revenue per user were well above pre-COVID-19 levels, with average quarterly revenue running approximately 25% higher and AMRPPU approximately $10 higher. There were a number of significant redesigns and game features that drove player engagement and growth in our social casino games and we remain disciplined in managing our cost structure and balance sheet, generating $58 million in operating cash flow in the quarter.”
SUMMARY RESULTS
| Three Months Ended | |||||||
| ($ in millions) | September 30, | ||||||
| 2021 | 2020 | ||||||
| Revenue | $ | 146.6 | $ | 151.2 | |||
| Net income | 37.0 | 35.1 | |||||
| Net income margin | 25.2 | % | 23.2 | % | |||
| Net cash provided by operating activities | 58.0 | 56.4 | |||||
| Capital expenditures | 0.9 | 1.8 | |||||
| Non-GAAP Financial Measures (1) | |||||||
| Adjusted EBITDA (“AEBITDA”) | $ | 44.7 | $ | 49.3 | |||
| AEBITDA margin | 30.5 | % | 32.6 | % | |||
| As of September 30, | As of December 31, | ||||||
| Balance Sheet Measures | 2021 | 2020 | |||||
| Cash and cash equivalents | $ | 330.8 | $ | 268.9 | |||
| Available liquidity(2) | 480.8 | 418.9 | |||||
| (1) The financial measures “AEBITDA” and “AEBITDA margin” are non-GAAP financial measures defined below under “Non-GAAP Financial Measures” and are reconciled to the most directly comparable GAAP measures in the accompanying supplemental tables at the end of this release. | |||||||
| (2) Available liquidity is calculated as cash and cash equivalents plus the undrawn capacity on our revolver. |
Key Performance Indicators
| (in millions, except Average Revenue Per Daily Active Users (“ARPDAU”), Average Monthly Revenue Per Paying User (“AMRPPU”), and percentages) | |||||
| Three Months Ended | |||||
| September 30, | Increase / | ||||
| 2021 | 2020 | (Decrease) | |||
| Mobile Penetration | 89% | 87% | 2.0pp | ||
| Average Monthly Active Users | 6.1 | 7.3 | (1.2) | ||
| Average Daily Active Users | 2.3 | 2.6 | (0.3) | ||
| ARPDAU | $0.69 | $0.63 | $0.06 | ||
| Average Monthly Paying Users | 0.5 | 0.5 | — | ||
| AMRPPU | $93.67 | $94.10 | ($0.43) | ||
| Payer Conversion Rate | 8.5% | 7.3% | 1.2pp | ||
| pp = percentage points. |
Third Quarter 2021 Financial Highlights
- Third quarter revenue was $146.6 million, down 3% from the prior year period, due to an event isolated in Jackpot Party® Casino, partially offset by strong monetization metrics and by record growth at Gold Fish® Casino. We expect SciPlay to return to both year over year and sequential growth in the fourth quarter.
- Net income was $37.0 million compared to $35.1 million in the prior year period due to lower general and administrative expenses, partially offset by higher depreciation and amortization and research and development.
- AEBITDA, a non-GAAP financial measure defined below, was $44.7 million compared to $49.3 million in the prior year period, primarily driven by lower revenue. AEBITDA margin, a non-GAAP financial measure defined below, was 30.5% for the quarter.
- Net cash provided by operating activities was $58.0 million, a $1.6 million increase over the prior year period primarily related to favorable changes in working capital primarily related to the timing of collections which was partially offset by lower earnings.
- Cash and cash equivalents increased $61.9 million to $330.8 million from the fourth quarter 2020.
Third Quarter Key Performance Highlights
- Payer conversion rate remained at record 8.5% validating our continued payer focus and live-ops strategy to drive increased monetization.
- Average Monthly Revenue Per Paying User (AMRPPU) was $93.67, remaining above pre-COVID-19 levels.
- Average Revenue Per Daily Active User (ARPDAU) up 9.5% to $0.69 compared to $0.63 in the prior year period.
- Mobile penetration increased 200 basis points from the prior year period to 89%.
