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)