Playtika Holding Corp. Q1 FY2026 earnings call

Robert mentioned momentum across the portfolio. Disney Solitaire is scaling fast, outperforming expectations. SuperPlay Studio has done well with world-class IP. Core business is executing with quarter over quarter stability in organic portfolio. DTC is a core driver for unit economics. Casual is 76% of the business. AI is a tailwind for scaled operators. Discussed performance of top titles like Bingo Blitz, Disney Solitaire, June's Journey. Talked about line items in P&L including cost of revenue, R&D, sales and marketing, GNA. Mentioned balance sheet with cash, cash equivalents, short-term investments, and earn-out payment to SuperPlay former shareholders.

Total revenue was $744.7 million, up 9.7% sequentially and 5.5% year over year. Adjusted EBITDA was $125.2 million, margin 16.8%. DTC revenue was $291.8 million, up 16.7% sequentially and 62.8% year-over-year. Bingo Blitz delivered $153.7 million, down 3% sequentially and 5.4% year-over-year. Disney Solitaire generated $123.3 million, up 72.1% sequentially. June's Journey delivered $76.0 million, up 8.7% sequentially and 10.4% year over year. Cost of revenue was $192.2 million, down 2.6% year over year. R&D was $98 million, down 5.6% year over year. Sales and marketing was $360.6 million, up 32.7% year-over-year. GNA was $143.5 million, up 120.1% year-over-year. Average daily paying users reached 387,000, up 8.4% sequentially and down 0.8% year over year. Average daily active users reached 8.6 million, up 8.9% sequentially and down 4.4% year over year. Monthly active users totaled 30.1 million. ARPDAU increased 1.1% sequentially and 8% year-over-year.

Raising revenue outlook for the year from $2.7 to $2.8 billion to $2.75 to $2.85 billion. Raising adjusted EBITDA range from $730 million to $770 million to $750 million to $790 million. Managing performance carefully to preserve option to reinvest in second half while maintaining discipline on margins and cash generation.

Discussed risks and uncertainties in filings with the SEC, including those beyond control that could affect forward-looking statements. Specifically, reminded not to take questions related to Strategic Alternatives Review.

First question from Chris Scholl about sales and marketing spend and capital allocation. Answer from Tay about sales and marketing spend stepping down, revenue outperformance due to returns and cohort performance, and capital allocation focusing on core business and maximizing liquidity. Second question from Aaron Lee about competitive pressure from sweepstakes casinos and D2C. Answer about social casino business stabilizing with 4% growth in Slotomania and D2C being a growth engine. Third question from Colin Sebastian about stability of organic portfolio and UA spend shift. Answer about stabilizing organic portfolio, prioritizing capital allocation, and UA spend shift for Disney Solitaire. Fourth question from Doug Kreutz about why UA spend for Disney Solitaire is loaded in Q1. Answer about front-loading UA spend due to good return profile and cohort paybacks