{ "docId": "019dd923-622c-750b-8b9a-f117836b6142", "docSlug": "990738dd792d", "documentTitle": "Playtika Holding Corp. (PLTK)", "authorId": "62_Grizzly_Research", "authorName": "Grizzly Research", "documentKindSlug": "research-note", "documentKindLabel": "Research note", "sourceTypeSlug": "short_seller", "sourceTypeLabel": "Short seller", "presentationDate": "2022-02-03 00:00:00", "orientation": "portrait", "aspectRatio": 0.60714287, "pageNumber": 16, "pageCount": 30, "prevPage": 15, "nextPage": 17, "slideType": "thesis_headline", "function": "diagnose_problem", "density": "dense", "nDataPoints": 8, "notes": "Includes a bar chart showing quarterly revenue stagnation from Q1 2020 to Q4 2021.", "elementsJson": [ "headline_text", "paragraph", "bar_chart_vertical", "footnote", "callout_box" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b9a-f117836b6142/16", "deckHref": "/decks/019dd923-622c-750b-8b9a-f117836b6142", "deckJsonHref": "/decks/019dd923-622c-750b-8b9a-f117836b6142.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b9a-f117836b6142#slide-16", "components": [ { "bbox": { "h": 0.07, "w": 0.78, "x": 0.11, "y": 0.82 }, "kind": "callout", "text": "Despite Aggressive Monetization And Continuous Acquisitions, PLTK Is Unable To Effectively Grow Its Top Line", "attrs": null, "subkind": "primary", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "9d491941-9cf0-4efa-bbaa-2c0a390ee7cb", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.21, "w": 0.53, "x": 0.23, "y": 0.33 }, "kind": "chart", "text": "Revenues ($Millions)", "attrs": null, "subkind": "bar-vertical", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "bf47c90f-2c95-4247-b4ae-8fa88ddea625", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "metric", "text": "quarterly revenue", "attrs": null, "subkind": "primary", "toolName": "Quantification", "toolSlug": "quantification", "confidence": null, "componentId": "019dd953-70fa-7556-8657-0951b89d62e3", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.85, "x": 0.07, "y": 0.19 }, "kind": "paragraph", "text": "We Also Believe PLTK’s Gaming Business Benefited Largely From The Pandemic, And We Believe Its Business Would Be Greatly Impacted in the “Post-Pandemic”", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "82a18c1b-e55e-40f9-8079-b155a9790ad0", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.85, "x": 0.07, "y": 0.6 }, "kind": "paragraph", "text": "In addition, in PLTK’s Q3 2021 earnings release, it lowered its 2021 full-year revenues and adj. EBITDA guidance and also delayed its first-ever Analyst Day from December 6th, 2021 to early March 2022. This is not something investors would see if PLTK’s business is going as expected. We believe this indicates that the company has seen uncertainties (which they should have) in their business and they want to wait for a few more months to get a better understanding of how things will go.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "8c9e3682-f0d6-4eb4-853d-19a53fb4e1fa", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.85, "x": 0.07, "y": 0.25 }, "kind": "paragraph", "text": "It appears PLTK’s business benefited largely from the pandemic, but we believe the reality is kicking in post-pandemic. Despite all the acquisitions that PLTK made in the past years, and the exponential growth we’ve seen from the newly acquired companies during the one-year period post acquisition, it appears since 2020, PLTK’s quarterly revenues have stagnated. This could only mean one thing, that organic growth is dwindling even faster. PLTK must be struggling to maintain revenues from their legacy games.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "9ea97b70-7dc5-4a7e-935d-5a76eaa888cd", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.53, "x": 0.23, "y": 0.55 }, "kind": "source-note", "text": "Note: Q4 2021 revenues were based on the company's 2021 full-year guidance issued in Q3 2021 earnings.", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "39a61ab9-45e1-45dd-afa5-416996a5e26e", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.06, "w": 0.85, "x": 0.07, "y": 0.12 }, "kind": "title", "text": "PLTK’s Roll Up Strategy Is A Lot Less Attractive Than It Seems On The Surface, Even In Good Times", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "fab5f6d3-30c3-4fd4-8f62-a9b9afaf7dc4", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [ { "to": 19, "from": 4, "beatId": "a91fd635-8a6c-4b3a-9212-fba3e7b568d3", "arcName": "Overcoming the Monster", "arcSlug": "overcoming-monster", "beatName": "Thesis headline", "beatSlug": null, "evidence": "The document presents a clear thesis statement and supporting arguments", "position": 3, "confidence": 0.8, "parentBeatName": null, "parentBeatSlug": null } ], "loops": [ { "to": 30, "from": 1, "name": "Cost Of Inaction", "slug": "27-cost-of-inaction", "bestFor": "Urgent budget requests, compliance, risk mitigation", "matchId": "b8b59e29-daa0-49a3-9dda-94309a5f75f1", "evidence": "The document implies that inaction will lead to significant consequences for PLTK", "position": 0, "objective": "Highlight the risks of not acting on PLTK's regulatory risks and short-termism", "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point", "confidence": 0.7, "description": "Quantify what happens if the audience does nothing" } ], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }