Ryan Sigdahl: Helpful. Congrats on the performance. Good luck, guys.
Operator: Thank you. Next question will be from Omar Dessouky, Bank of America. Please go ahead.
Omar Dessouky: Hi Josh, thanks for taking my question. So thanks for mentioning that, I guess, you guys are sort of assuming that the market will be flat to down in 2023.
Josh Wilson: Yes.
Omar Dessouky: I wanted to know whether that would assume a recession in 2023 or what the macroeconomic assumptions around that are? That’s the first question. And then the second question, as part of the same first question I have is, what is your hypothesis on the average — of how the average spend per payer would trend versus 2022 if your payers average real incomes were to fall in a recessionary scenario. So for example, if payers real incomes were to be down year-on-year. Would you expect that they would be — the average revenue per payer would be down as well in 2023? And then I have a follow-up question on advertising.
Josh Wilson: Okay. Thanks. Thanks, Omar. So yes, let’s start with the market one. So if you look at Eilers & Krejcik, they’ve come out and said that they’re expecting the market to be flat for this year. But the major reason that we’re assuming the market is flat for this year is because we’re assuming IDFA has no fix to it in 2023. I think it’s less to do with the macro environment is live and more to do with the user acquisition is more challenged. Now with that said, things were more challenged last year. We had a lot of games do really well in the larger scale, whether or not it’s either casual or social casino. We had majority of our portfolio performed very well last year. And we expect to see that going into next year.
As we look at the broader economics of people and what happens I think we kind of look at it as twofold. Like one, the average person in our game are making $5 and $10 purchases throughout a course of a week or a month. And it’s not the type of expenditures that I expect to see get pulled out from people. I would imagine that the $10,000 vacation, $5,000 vacation, $20,000 car, those are going to be where they save money. Entertainment costs at this net magnitude normally isn’t the thing that is brought back. But what we are doing as a company and because of we have so much access to not only data but hourly data and since we have so many games in the portfolio, what we’re able to do is we’re able to look at these trends across multiple games at once.
And one thing that we did at the beginning of this year was kick off a kind of like a global macro team inside of SciPlay and our entire role inside of this is to look for things that are happening in multiple games all at once. So if we see multiple games at once, all of a sudden slowing down a number of times people purchase per week or if we see, to your point, average revenue per payer or transaction move, we’re going to get this information in the course of a couple of days, where a lot of people are going to have to wait months and months to understand it. And because we’re going to get this information, we’re going to be able to not only make the business shifts that we need to, but we’re able to — we’re also able to make the game and entertainment shifts that we need to.
So right now, we feel very confident that we’re going to perform very well into 2023 and as I mentioned earlier, February for us, as a run rate was the same as December. And that’s actually something that’s not normal because December has a two weeks’ worth of holidays that sit in it every year.
