Quarterly report pursuant to Section 13 or 15(d)

SEGMENT REPORTING

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SEGMENT REPORTING
 3 Months Ended
Mar. 31, 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. 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 March 31,
2024 2023
Net revenue
playGAMES 77,828  77,623 
playAWARDS —  2,500 
Reportable segment net revenue 77,828  80,123 
AEBITDA
playGAMES 23,451  22,592 
playAWARDS (3,622) (631)
Reportable segment AEBITDA 19,829  21,961 
Other operating expense
Corporate and other 4,515  4,196 
Restructuring expenses 638  4,048 
Other reconciling items
 19  38 
Stock-based compensation
 4,794  4,853 
Depreciation and amortization 11,566  11,033 
21,532  24,168 
Non-operating income (expense)
Change in fair value of warrant liabilities (64) (1,058)
Interest income, net 1,420  895 
Other (expense) income, net (106) 60 
1,250  (103)
Loss before income taxes (453) (2,310)
Income tax expense (114) (260)
Net loss $ (567) $ (2,570)