Quarterly report pursuant to Section 13 or 15(d)

SEGMENT REPORTING

v3.24.2.u1
SEGMENT REPORTING
 6 Months Ended
Jun. 30, 2024
Segment Reporting [Abstract]  
SEGMENT REPORTING
NOTE 3—SEGMENT REPORTING
The Company has aggregated its operating segments into the following reportable segments: playGAMES and playAWARDS, which represent our different products and services. A detailed discussion regarding the products and services from which each reportable segment derives its revenue is included in our Annual Report on Form 10-K for the year ended December 31, 2023.

Adjusted EBITDA ("AEBITDA") is the Company’s reportable segment GAAP measure, which management utilizes as the primary profit measure for its reportable segments and underlying operating segments. AEBITDA is a measure defined as net income (loss) before interest, income taxes, depreciation and amortization, restructuring and related costs (consisting primarily of severance and other restructuring related costs), stock-based compensation expense, and other income and expense items (including special infrequent items, foreign currency gains and losses, and other non-cash items).
Expenses include indirect costs that are allocated to operating segments based on a reasonable allocation methodology, which are generally related to sales and marketing activities, general and administrative overhead, and costs associated with administering the playAWARDS myVIP program in the playGAMES applications. Net revenue excludes
transactions between the Company's operating segments. Certain expenses incurred by playAWARDS have been allocated to playGAMES at cost. The chief operating decision maker does not evaluate operating segments using asset information.
The following table presents the Company’s segment information:
Three months ended June 30, Six Months Ended June 30,
2024 2023 2024 2023
Net revenue
playGAMES 72,588  76,122  150,416  153,745 
playAWARDS 2  1,671  2  4,171 
Reportable segment net revenue 72,590  77,793  150,418  157,916 
AEBITDA
playGAMES 21,920  21,610  45,371  44,202 
playAWARDS (3,476) (1,706) (7,098) (2,337)
Reportable segment AEBITDA 18,444  19,904  38,273  41,865 
Other operating expense
Corporate and other 4,306  3,630  8,821  7,825 
Restructuring expenses 1,379  1,784  2,017  5,832 
Other reconciling items 138  26  157  65 
Stock-based compensation 4,930  5,194  9,724  10,047 
Depreciation and amortization 11,654  11,116  23,220  22,149 
22,407  21,750  43,939  45,918 
Non-operating income (expense)
Change in fair value of warrant liabilities 717  (1,777) 653  (2,835)
Interest income, net 1,374  1,262  2,794  2,157 
Other (expense) income, net (264) 1,044  (370) 1,104 
1,827  529  3,077  426 
Loss before income taxes (2,136) (1,317) (2,589) (3,627)
Income tax (expense) benefit (475) 558  (589) 298 
Net loss $ (2,611) $ (759) $ (3,178) $ (3,329)