Quarterly report pursuant to Section 13 or 15(d)

SEGMENT REPORTING

v3.24.3
SEGMENT REPORTING
 9 Months Ended
Sep. 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 September 30, Nine Months Ended September 30,
2024 2023 2024 2023
Net revenue
playGAMES 71,226  75,857  221,642  229,602 
playAWARDS 3  1  5  4,172 
Reportable segment net revenue 71,229  75,858  221,647  233,774 
AEBITDA
playGAMES 23,233  21,640  68,604  65,842 
playAWARDS (3,991) (4,180) (11,089) (6,517)
Reportable segment AEBITDA 19,242  17,460  57,515  59,325 
Other operating expense
Corporate and other 4,619  3,935  13,440  11,761 
Restructuring expenses 3,231  1,280  5,248  7,112 
Other reconciling items (7) 85  150  149 
Stock-based compensation 4,584  4,344  14,308  14,391 
Depreciation and amortization 11,593  11,537  34,813  33,686 
24,020  21,181  67,959  67,099 
Non-operating income
Change in fair value of warrant liabilities 276  4,216  929  1,381 
Interest income, net 1,127  1,364  3,921  3,521 
Other (expense) income, net (256) (198) (626) 906 
1,147  5,382  4,224  5,808 
(Loss) income before income taxes (3,631) 1,661  (6,220) (1,966)
Income tax benefit (expense) 534  2,139  (55) 2,437 
Net (loss) income $ (3,097) $ 3,800  $ (6,275) $ 471