PlayAGS, Inc. (NYSE:AGS) Q3 2023 Earnings Call Transcript

Chad Beynon: Okay, thanks. And then secondly, I wanted to ask about just EGM sales within your guide. On the fourth quarter, you talked about Q4 sales higher than Q3. So that would effectively put you over the 5,000 shipped share number 423, which is up over 25% year-over-year, and it’s I believe, the highest in your history. Is this kind of a new baseline foundation in terms of sales, given your market share gaming story, and how should we think about the seasonality if what we’re seeing in ‘23, should be kind of how we should think about seasonality going forward? Thanks.

David Lopez: Yes, I mean, I have to dive in specifically on the seasonality that we’re seeing. I think it always can move a little bit there, Chad. But I think that we’ve got a sort of lean a little bit back on the prepared remarks, that with what we showed it at G2E, with the things that we didn’t show physically, but we gave previews of pre-G2E, and the content that we’ve been rolling out that we have the kind of momentum that we know, we can look forward to sort of continued better days as far as not just our installed base game ops RPD, et cetera. But as far as game sales goes, and our ability to sell into, let’s say, those additional swim lanes, so we’re feeling good about where we’re at. And yes, some of your calculations are right there. And as we move into 2024, again, we’re very confident with the lineup that we showed at G2E and the stuff that we’re going to roll out in the back half of the year. Do you have anything to add to that?

Kimo Akiona: Yes, Chad. The only thing I would say to add is that, from a seasonality perspective, we’ve grown our EGM unit sales sequentially for 10 of the last 11 quarters, I think it really speaks to the momentum that we see behind the product. It’s truly resonating with customers. I think a telltale sign of that is if you look at G2E, each week since G2E, the amount of inbound interest and our demand for our product is picked up each successive week. I think it’s important to remember that we’re in the market today with the first of our Spectra family of cabinets, which implies there’s more to come, 49 is launching here in Q4. And we’ll gain momentum in Q1, where we’ll have two distinct products in the market at the same time, which really is a first for our company. And so I think we feel really good about the momentum that we have there with some of the additional new products and swim lane entrances to come in the back half of ‘24.

Chad Beynon: Thank you both. We’re getting a little greedy here looking for ‘24 commentary. Appreciate it.

Operator: There are no further questions on today’s call. So I’d like to close the call here and thank you all very much for your participation. You may now disconnect your lines.