Delivered Sequential Growth and Second Highest Revenue Quarter
SciPlay Corporation (NASDAQ: SCPL) (“SciPlay” or the “Company”) today reported results for the second quarter ended June 30, 2021.
Josh Wilson, Chief Executive Officer of SciPlay, said, “Our teams continued the strong momentum from the first quarter delivering sequential growth on the top and bottom lines. The core social casino business continues to perform well as we hit another record quarter for Gold Fish and grew key payer metrics. We continue to evolve our business, rapidly expanding in the casual genre with Solitaire Pets Adventure and the acquisition of Koukoi Games. Koukoi will jumpstart our development of Project X with an experienced and proven team. SciPlay is extremely well situated to continue driving sustainable growth.”
Mike Cody, Chief Financial Officer of SciPlay, added “This quarter saw another record for payer conversion at 8.5% in addition to record ARPDAU of $0.72 while our other monetization metrics continue to perform above pre-COVID levels. Importantly, we were able to grow above market in social casino sequentially and deliver our second highest revenue quarter. We are excited to continue enhancing our social casino portfolio and expanding our casual pipeline.”
| SUMMARY RESULTS | |||||||
| Three Months Ended | |||||||
| ($ in millions) | June 30, | ||||||
| 2021 | 2020 | ||||||
| Revenue | $ | 154.0 | $ | 165.6 | |||
| Net income | 37.9 | 48.8 | |||||
| Net income margin | 24.6 | % | 29.5 | % | |||
| Net cash provided by operating activities | 48.7 | 52.0 | |||||
| Capital expenditures | 5.0 | 2.0 | |||||
| Non-GAAP Financial Measures (1) | |||||||
| Adjusted EBITDA (“AEBITDA”) | $ | 47.9 | $ | 59.6 | |||
| AEBITDA margin | 31.1 | % | 36.0 | % | |||
| As of June 30, | As of December 31, | ||||||
| Balance Sheet Measures | 2021 | 2020 | |||||
| Cash and cash equivalents | $ | 300.8 | $ | 268.9 | |||
| Available liquidity(2) | 450.8 | 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 | |||||
| June 30, | Increase / | ||||
| 2021 | 2020 | (Decrease) | |||
| Mobile Penetration | 88% | 87% | 1.0pp | ||
| Average Monthly Active Users | 6.3 | 8.1 | (1.8) | ||
| Average Daily Active Users | 2.3 | 2.7 | (0.4) | ||
| ARPDAU | $0.72 | $0.67 | $0.05 | ||
| Average Monthly Paying Users | 0.5 | 0.5 | — | ||
| AMRPPU | $96.29 | $101.13 | ($4.84) | ||
| Payer Conversion Rate | 8.5% | 6.8% | 1.7pp | ||
| pp = percentage points. |
Second Quarter 2021 Financial Highlights
- Second quarter revenue was $154.0 million, down 7.0% from the prior year period, largely due to the easing of stay-at-home measures compared to the height of COVID prevention measures in the prior year. Revenue grew 1.9% sequentially driven by the continued performance of social casino and continued improvement in key monetization metrics.
- Net income was $37.9 million compared to $48.8 million in the prior year period, as a function of lower revenue related to the easing of stay-at-home measures.
- AEBITDA, a non-GAAP financial measure defined below, was $47.9 million compared to $59.6 million in the prior year period, primarily driven by lower revenue. AEBITDA margin, a non-GAAP financial measure defined below, was 31.1% for the quarter.
- Net cash provided by operating activities was $48.7 million, a $3.3 million decrease over the prior year period reflecting lower earnings, which was offset by an increase in working capital primarily driven by the timing of payments from our platform providers.
- Cash and cash equivalents increased $31.9 million to $300.8 million from the fourth quarter 2020.
Second Quarter Key Performance Highlights
- Payer conversion rate reached an all-time high of 8.5%, validating our continued payer focus and live-ops strategy to drive increased monetization.
- Average Monthly Revenue Per Paying User (AMRPPU) was $96.29, its second highest level ever trailing only the COVID impacted prior year period.
- Average Revenue Per Daily Active User (ARPDAU) reached an all-time high of $0.72, increasing 7.5% from the prior year period.
- Mobile penetration increased 100 basis points from the prior year period to 88%.
