Golden Nugget Online Gaming Inc
Golden Nugget Online Gaming — Q4 2020 Earnings Presentation
27 slides from Golden Nugget Online Gaming's earnings presentation, Mar 23, 2021
Slide 1: Q4 Earnings Presentation
Q4 Earnings Presentation March 23rd, 2021
Slide 2: Disclaimer: Forward-Looking Statements
Disclaimer 2 Forward - Looking Statements This presentation contains forward - looking statements within the meaning of Section 27A of the Securities Act of 1933, as amende d, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act, about us and
Slide 3: Agenda
Agenda 3 FY 2020 / Q4 2020 Accomplishments iGaming: A Large A nd Rapidly Growing Market Opportunity Financials
Slide 4: GNOG Highlights
1. Business model focused on online casino. 2. Since June 2020. GNOG Highlights 4 Tier 1 iGaming - focused, US casino brand in NJ 1 Successfully transitioned to a public company via SPAC transaction Delivered $91.1M Net Revenue and $28.9M Adj. EBITDA in FY 2020 Market access agreements growing from
Slide 5: 4th Quarter and Full-Year 2020 Highlights
$55.4M $91.1M $4.8M $6.2M $ 17.8M $28.9M $15.6M $23.0M 1 . Adjusted EBITDA is before corporate expenses related to new markets and SPAC transaction. Revenue and adjusted EBITDA are non audited for 2020 . For a reconciliation of EBITDA and Adjusted ABITDA to Revenue, please refer to page 25. 2020 Per
Slide 6: US Online Casino With First-Class Pedigree
US Online Casino With First - Class Pedigree 6 Strong Revenue Growth Coupled with Proven Experience Monetizing Online Casino Players $18.2M $27.8M $42.9M $55.4M $91.1M $1.7M $5.1M $12.0M $17.8M $28.9M 0 10 20 30 40 50 60 70 80 90 100 2016 2017 2018 2019 2020 Revenues Adj. EBITDA Adj. EBITDA 1 s 9 %
Slide 7: Player Acquisition & Retention Expertise
Player Acquisition & Retention Expertise 7 Record player acquisition, with 2020 new active depositors 1 up 67% Year over Year. Strong player retention with 2020 returning active depositors 2 up 28% vs 2019. Payers acquisition and retention combined to 30,000+ Active Depositors 3 in 2020, up 48% vs 2
Slide 8: Increasing Revenue Per User
Increasing Revenue Per User 8 GNOG iGaming Players Are 32% More Valuable On a Monthly Basis Compared to 2016 $566 $ 633 $552 $480 $518 2018 2016 2019 2020 2017 + 32% Casino Net ARPU Avg. Monthly Casino ARPU 1 (NGR) by Year, 2016 to 2020 1. Average Monthly Casino Net ARPU is the Annual Casino Net Gam
Slide 9: High and Steadily Increasing Lifetime Value
1. GGR generated by new active depositors since their first month of activity. Years 2 and beyond represent the percentage o f Y ear 1 revenue generated in the subsequent 12 month period. 2. Factors in average GGR bonus and jackpot of 21.5% leading to NGR. 3. Average CPA of $967 between 2014 – 2020.
Slide 10: Highly Loyal and Valuable Player Base
30% Highly Loyal and Valuable Player Base 10 50%+ of 2020 GGR From Cohorts Acquired Before 2019, Steady Revenue Retention Over Time GNOG GGR by Yearly Cohort, 2013 to 2020 1 % of 2020 GGR Source : GNOG management . Represents GGR a cohort has generated over time. Cohort defined as any player who mad
Slide 11: Agenda
Agenda 11 FY 2020 / Q4 2020 Accomplishments iGaming: A Large A nd Rapidly Growing Market Opportunity Financials
Slide 12: Pandemic Has Accelerated Online Gaming Growth
Source: New Jersey Gaming Commission for 2014 - 2020 actuals, GNOG management estimates of Online Casino and Land - based Casino GGR for 2021 - 2023 . Land - based casino GGR includes tables and slots, excludes sports betting. Pandemic Has Accelerated Online Gaming Growth 12 NJ GGR by Online vs. Ret
Slide 13: iGaming A Larger Vertical Than Online Sportsbetting in NJ
iGaming A Larger Vertical Than Online Sportsbetting in NJ 13 NJ GGR by Online Sportsbetting vs. iGaming, 2018 to 2023F Source: New Jersey Gaming Commission for 2018 - 2020 actuals, GNOG management estimates for Online sports betting and online casino GGR for the period 2021 - 2023. ($ in millions) $
Slide 14: iGaming Versus Sports GGR – Top iGaming Markets
Igaming Versus Sports GGR – Top 3 iGaming Markets 14 Online Casino Generates Much Higher Revenues than Online Sports Betting In All States Where Both Are Available $ 932 M $359M New Jersey FY 2020 Casino Sports $ 712 M $ 241 M Pennsylvania FY 2020 Casino Sports $ 109 M $ 23 M Michigan 2021 YTD Casin
Slide 15: U.S. iGaming Market Potential
U.S. iGaming Market Potential 15 Based on Last Twelve Month NJ Online Casino revenues and adjusted for New Jersey share of total US household income, => U.S. iGaming Market Potential: $30B GGR U.S. iGaming Market expected to be $30B to $37B GGR at maturity Based on Last Twelve Month NJ Online Casino
Slide 16: iGaming Revenue Ramp Up Much Quicker in New Markets
iGaming Revenue Ramp Up Much Quicker in New Markets 16 PA Online Casino vs NJ Online Casino iGaming Market Size (GGR) by Year NJ iGaming vs MI iGaming in Month 1 & 2 $83 $117 $288 $553 - 100 200 300 400 500 600 Year 1 Year 2 Millions New Jersey Pennsylvania Sources: Eilers & Krejcik ‘Pennsylvania On
Slide 17: Market Access
Market Access 1. GNOG currently in application phase of license process. 2. Golden Nugget Danville is a new casino, not yet in operations. iGaming subject to state laws and regulations. 3. New York has not passed legislation to date on iGaming; agreement with Tioga Downs LLC is for a 2 nd skin for i
Slide 18: Market Access Outlook
Market Access Outlook 18 GNOG Taking An Aggressive Approach To Secure Market Access iGaming M arket of $30B - $37B 3 at maturity W A O R M T I D U T W Y C O O K K S N B S D N D M N I A M O T N N C I L O H I N K Y W V NJ MI PA 1 WV IL MS LA NV NY 1 Ongoing discussions to secure access to more states.
Slide 19: Agenda
Agenda 19 FY 2020 / Q4 2020 Accomplishments iGaming: A Large And Rapidly Growing Market Opportunity Financials
Slide 20: Financial Results
Financial Results 20 $23.0M net revenues in Q4 2020 and $91.1M FY 2020 Acquisition transaction completed December 29 th Ended 2020 with $77.9M cash, warrant redemption completed on March 8, 2021 raising an additional $110.2M in proceeds $6.2M Adj. EBITDA in Q4 2020 and $28.9M FY 2020 Q4 2020 Q4 2019
Slide 21: Guidance
Guidance 21 • Increasing FY2021 Revenue Guidance to between $130M and $145M, which at the midpoint represents an increase of 51% over 2020 revenues. • Accelerated investments in 5 new markets expected to yield losses in these markets in the short term and greater returns to the global business over
Slide 22: Michigan Launch
Michigan Launch 22 MI Confirms The Immense Revenue Potential For Online Casino and For GNOG. 1. Initial 8 weeks of GNOG operations ion Michigan are from January 22, 2021 until March 18, 2021. New Jersey month 1 was Nov emb er 2013, New Jersey month 48 was November 2017, Michigan month 1 was January
Slide 23: Positioned for Growth
Positioned for Growth 23 New Jersey revenue and profitability track record demonstrate GNOG winning business model and ability to execute in a competitive environment. PA and MI markets are larger than anticipated and quickly ramping up iGaming revenues validate GNOG choice to focus on online casino
Slide 24: Appendix
Appendix 24
Slide 25: Reconciliation of Non-GAAP Measures
Reconciliation of Non - GAAP Measures 25
Slide 26: Definitions
Definitions 26 Gross Gaming Revenue (GGR): G ross dollar value of all wagers less player wins Net Gaming Revenue (NGR): GGR minus customer financial incentives (including bonuses, freeplay ) minus net jackpot contributions. Gross Average Revenue Per User: Gross Gaming Revenue divided by the number o
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