SLGG - Earnings call transcript Q2 2020 | Super League Enterprise, Inc.

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Operator

Good afternoon, everyone and thank you for participating in today's conference call to discuss Super League Gaming's Financial Results for the Second Quarter Ended June 30, 2020.

Joining us today are Super League's President and CEO, Ann Hand; and CFO, Clayton Haynes.

Following their remarks, we’ll open the call for your questions.

Before we go further, please take note of the company’s Safe Harbor statement within the meaning of the Private Securities Litigation Reform Act of 1995. The statement provides information cautions regarding forward-looking statements. today’s will during forward-looking remarks company’s conference include call statements. The and presented along to not risks with statements, that a other of subject These are information does fact, reflect number uncertainties. historical from those results differ Actual implied may these forward-looking by statements. materially earnings risk company’s reports the could to actual and Exchange uncertainties to and to more for differ. within and results recent that refer the release Please information Securities Commission the company’s filed about the cause for the I August replay would available to will like X:XX through that XXXX call at everyone starting XX, be remind p.m. Eastern tonight. Time Standard link will in as A be www.superleague.com. webcast replay also website company's press available well via as the provided release, at today's the

Now CEO would to to League over Ann? call President of I and turn Gaming, like the Super Ann Hand.

Ann Hand

afternoon thank us. and joining for Good you Hi, everybody.

right ahead what So and say all understatement in, dive to having. go we’re here let's

hope always silver but remain and a and for swift foremost into and you for for to safe about and well. strange As pandemic that trying yours Super time, I in feels this talk first hope games we that gaming grown of and four this study lining playing It a published play film any see U.S. tracks that TV mainstream. that been people acceleration while XXXX. sure. is continue are gaming. larger gamers a is to and in by new coming million a office box now in back is at three because a we've it And global research but the haven't everyone was is entering NPD, an back just the for three we of played firm that stuck home, strategy. and XX our since in effect discussed has gaming and gamers Bigger temporary it's an League accelerant not it's said growth because marketing as few figure over to every COVID. the the weeks have out gaming who video in and gamers more, than than market are before Existing times been and It

XQ. into So let's dig

pleased in revenue ongoing the are the quarter advertisers a show worth strong pause. results are is in showing considering the growth to itself second our We midst of caution that pandemic, that many especially

have many ours revenues And build engagement taken of our in that just as in input we companies capabilities, continue controlling to cost metrics health overall obvious surge. XQ, continue indicate so as has our and business an hit sales improved. we the are important While the operating to our and

seen the on it's video environment As gaming it. so from we conference many spite in by last mentioned by companies powered up results only and in put our is this have we the of as call category, thriving not gaming

comes direct you more our our advertising we revenue to currently our pipeline. inventory, primary sponsors we and As and source to ad know, from as amass XQ capability sales started revenue In build to began outreach advertisers. of grow

labor. the starting last have augmented efficiency fruits some of sales are to sales Over opportunity on improve see of seize that we and our to growth our this team further two now and the we months,

to advertisers of improved Everyone releases. is we did box and we stubbornly any just our it different. studios good much pause no has prior felt of the With new around, in revenue sticking the activations, comparison year-to-date activity office deferrals promoting the period, we COVID. XQ inevitably our COVID news as wake take canceled didn't While tied have to have were was year in XQ in a

early and revenues next. We expect to year later this see those

more and precisely advertisers. gamers targets hustled. Gen Millennial of really However, in that even got valuable our and advertisers out our made new our inventory team We surge engagement Z to front in so

year. on That's And channels the TikTok, is This of attract higher entire owned You X year mentioned the integrations. Minehut Twitch. we billion happening did digital through of Instagram, our I've expanding CPMs range prior increase on placements on premium XXXX. and quality to what the views and XXX% channels superleague.com first call, exceeded has that week rapidly viewership along the a with as our channels the inventory last on our top and of $XX our $XX ability over dedicated for seen might operated YouTube have to for in and seven in our sometimes we Snapchat, announcement and views months

at me provide many model because some asked I what the opportunity. how you monetizable. So, help I me every mean not try are impression every are you an impression So of view and know of more to detail the Views this does before impressions what are you're do top thinking equal have and frame this? the to view Ann, let funnel and nor

that fall well. go in pandemic then monetizable the sell-through for sales of the into So quality of now delivering add against CPMs. rates ramp And way our and global messaging products. and is There variables force improve right and products this about new capacity. are think reset of those COVID we the advertisers to times while versus total about potential our think We our our our What a to advertising a to revenue variable, inventory, as pause. the get we capabilities took you to are continue lot ad capacity, up current as need the curve

marketing new manager, growing is and our are executives inventory. size of two products sales pipeline deals and at sales and We our audience ad the helm, the ad a as our have manager. ad planner The corresponding sales new

that’s day. and So, it’s and ball we in moving it’s growing size every faster are this now catching ball moving a

great that’s all news. So

single and But maintains be selectively it percentage and will an difficult a only to supporting monetized at XX%. as why will preserve million are that a continue numbers XX% grow a our in of our views ad state a in is XXX building are time, do indicate audience. our point least to product, engagement to inventory to levels. to with user few we million while that are our factors. Well, keep XXX there We CPM to monthly premium pick So want latest impressions that ad experience high our

With to that ad revenue recalculated range, million monetizable network indicates is million this the CPM is inventory the a weekly. our and to the capacity $XX current number $XX $XX estimate is and $XX applying of in rates estimates that dynamic it

here, again And ask me network force critical different our and sales one in the will our more there So likely the estimate be of and fall variable efficiency. higher. capacity is

capability near XX% XX%. is products XXX% to new growing sales Our efficiency mature performance and with nowhere and ad around team force is sales best-in-class even

is are now. That's thing. our not expect effectiveness ramping right up continue we here. some a efficiency. probably grow The It's upside to around XX% expected and As a bad best force significant guest, have we we are still materially that key sales and to

capacity We more are able network on of be our will to growing focused network mature processes capacity our capture we as and our revenue. sales

of growth a that small One you gave Super big our consistently size. about are box the above is our about things things We There just to we unique we class. and may weight an investors want drive here. it be that the revenue on League can partners way understand analysts advertising us what I can't inventory. think we in that the Even to going unique for makes unit they to so way model future company. don't additional model and advertisers revenue ad we two us but engage same though can relate growth the opportunity, ways that are ad to with necessarily three

top business top partner The first down publishers do game seen you've type of types our form of or In of additional these the Tencent. deals. big creative like with revenue development us takes brands past, Logitech like the investor sponsorships

now in period. The large me corresponding for and is dollar about the of example. third our a quarter. that Last So deal monetizable more worth with public contracted $XXX,XXX activation share multibillion to only inventory we company let XX-day do current we’ll XX-day a use week, XX% a

top across day Now can I'm And conservative to potential. our can down all these suggesting not but the for here, need platform we do on you now. math be deals the sell day do every we

I broader up a is unique yet e-sports starting broadcast, connected third media and in in void. world, the applications fill are to the fans beyond already to and companies pick now e-sports for immensely ways supports users. their enable proprietary production which to May, remote content and to gaming and there's entertainment create for working Our remote stay Topgolf And COVID them audience much content is participation broadcast consumers. a beat of partner perhaps partners also today target And and registered that many valuable. patented featured e-sports Go we of our affordable go fully broadcast type like one to are is productized sports subscription The a stream premium model. broadcasts that on and then to is to speaks repeat and or announced seeking steam mass We grow revenue, production new to on full web with platform Gen.G that a only today shape talked connects partnership our audiences. is but users for a XXXX digital offers their that we this haven't virtual reaching stage X.X could that a our platform with to year the a new production Light we that million uses have And into platform about interface with still production take content revenue platform. licensing marketplace not Through turn and storytellers our Green next resources. And us fully announced their July,

are year the gave know those players and reach of you are have north July we XXXX. million already players and full I players million play currently as of versus referenced. of of And seeing growth through XX us So active for beyond our the hours XX audience those XXX,XXX from viewership gameplay is game users the monthly hours

early and million our just you and featured we off X.X consumer advice. asked and micro amounts two three why these in transaction Our growth, social some Snapchat. operated followers have have XQ site. began your lifestyle we weekly on by now we Minehut get small just of driven subscribers gaming or heeded try marketplace Starting series consumers a don't owned even channels pennies testing to and largely With over Framerate this

able it $XX last quarter we were average of over early a generate basket to an paying While per player is size month. days

to free average ad funnel. into keep not Now, a offerings gamers need purchasing start. the all who conversion engaged playing customers and it's refining of these as much but Similar marketplace, to have when fine-tune here consider our our anything we the drive the to inventory, in well is yet less in more capabilities you

CFO, which we some results I closing I'm We second Haynes will have remarks. financial what quarter our and an At know are point this busy turn to the of Clayton Clayton? who to with after overview back to we over call do. provide come will going

Clayton Haynes

quarter revenues revenues, of Good and in us in Thank included today. in increase afternoon, COVID-XX slight prior-year you, advertising a summarize, Ann. reflecting content an for you on second increase XXXX by XX%, continued impact traditional thank joining quarter, of significant for everyone, sales reflecting and the the the revenues comparable To sponsorship highlights total sponsors. brands of decrease partially relative a offset and to

relatively quarter prior in to compared margins Our and into of the more in the in cost XXXX resulting was we our offers. digital to flat revenue second prior-year as average of XX% experiences revenues, quarter a in increase year the quarter lean of despite compared XX% XX%

the continue platform operating were prior inventory expenses and increase to on platform an quarter, marketing growth. loss year leading of technology and in our basis infrastructure GAAP by to lower we sales operating lower in the offset when and invest to a compared our partially in ad costs a Our monetization as GAAP

During continue and monetization on we where cost the focused second be possible. to quarter, reductions

many offset sponsorship the earnings in advertising prior reflecting on in slight part content companies $XXX,XXX sales of closer impact activities increase to our inventory industries reflecting undoubtedly our build-out of revenue revenues accelerating in impact the engagement. by and to due direct overall primarily the to the inventory good have surge substantial slowdown from views advertisers and expect increase This pandemic by revenue increase brands as the revenue that impressions filed and continued for sponsorship as continued continued in traditional perspective force of of and XXXX. in across decrease in to is COVID-XX earlier XXXX felt has quarter a advertising increased our in compared our release summarized today, a and the the advertising the grow. sales of and relative our year year growing to progress The focus to first half this monetization XXXX. a quarter XXXX The quarter of the second second significant XX% second unfold to over we earlier during made building continue of $XXX,XXX and our quarter was news the Looking

we opportunities. are brands has advertisers the take advantage of and that ready to So rebound

more reflecting categorized our comprised content the advertising advertising revenues, and to of Includes have two we customized sponsorships buckets, for quarter to third-party Direct of brand along revenues were XXXX approximately of and digital to revenues. to main Minehut owned which XX% XX% are in consumer mentioned Sponsorship related primarily licensing all part and for revenues revenues the quarter our XXXX to the XX% of into and as of As second our the and $XXX,XXX approximately across second XXXX. quarter comprised we the to $XXX,XXX sponsorship digital revenues second property compared compared of compared revenues with operated of of XXXX. partner which consumer programs of properties second quarter to direct brand goods accounted during properties XX% traditional and and of for XXXX our and advertising of X% increased second includes revenues the quarter surge the quarter engagement by in revenues in of digital also XXXX in revenues second

and with with engaging focus new and consistent the our unique our technology and experiences on We volume platform emphasize free-to-play spectators to brand. of continue increasing e-sports gamers events

on sales intend we to of and transaction forward mentioned. of play as continued to experiences a a to paid Going digital ramping free consumer to focus micro offer continue including with monetization direct marketplaces Ann overall up combination goods and

in to X% year revenue in increase digital despite in to for Second the and significantly quarter of the cost same increase increased by second largely driven XXXX of quarter compared $XXX,XXX a the XX% basis far XXX than $XXX,XXX comparable revenue was revenues cost the The lower on activities period. in quarter less of with increase the associated to online cost relative our lower revenue-generating online and specific to cost and the revenue contributing and digital our more sales in of fluctuate content quarter revenues compared revenues costs related physical experiences sales experiences in activities period profile each revenues associated each significantly which period. in-person advertising and on the in-person have occurring and period and Cost also streams programs the our physical based advertising period to and events. and content of

the compensation The in million sales includes focused a to expenses was direct year. the approximately ad the compared services primarily the including saw the reduction The inventory decrease compared of offset relative in in which and and technology $X.X content, our decreased results to costs second comparable and million loss surge engagement per partially operating per the quarter. the the XXXX marketing that was premium $X.X an platform or cloud impact investment we prior-year personnel or loss to a $X.XX million the million On a quarter this lastly to of which an of $X.X basis of period in infrastructure share prior increase of XXXX. our in $X.X monetization were force prior-year costs and and to by in quarter XXXX consistent due non-cash $X.XX million $X.X quarter second Second higher million related decrease we comparable year the compared was GAAP impact in sales insurance build-out share charges, a to costs related earlier as stock increase in to net quarter. with to non-cash of as on expenses during primarily $X.X $XXX,XXX

pro compensation the year million net loss charges, in quarter. Excluding other compared comparable prior was non-cash non-cash million to $X.X and charges our forma $X.X

is measures note accordance to that today, and earnings compare of calculation net or As investors as applicable the net earlier. loss Please filed well release our and financial results more evaluate a as a KPIs financial forma forma metrics loss detailed we prepared description of and other forma reconciliation release comparable pro our measure directly in along earnings with use pro believe with pro a non-GAAP discussed GAAP. can loss take our most income can our that X-K with net SEC of described in with

of had in on $X offering balance This closed million at approximately in $XX.X approximately XX, registered million June working total in of as $X stock sheet a common shareholder includes cash million. we Looking and capital of XXXX, equity $X.X share of direct the million as X.XX net at proceeds reported. raised from $X.XX May the shares previously sale per that XX million

XX, and to the XXXX is June CARES potentially certain under X.X Our loan sheet Act. includes balance which subject to also received in the requirements million criteria May, related forgivable PPP

$X.X current to rate the continues in net to Our monthly million be range. cash million $X.X burn

and in saving the the are to to work continuing reduction leaders identify functional structure with We organization within continue areas. focused cost our cost on be additional to our

As to vacated our now fully live remote. fully going will office provide June in an of as example, Monica Super result significant operations broadcast space approximately consistent with In company-wide for and our cost plan this rents our facilities in regard, which remote League’s are ability of forward. Santa saving we customers, XX% XX,

we addition, providers going In and work saving to new existing continue to infrastructure cost with and service reduce forward. platform

the Ann advertising in to environment our initiatives focus remarks. and back some call of surge the for the additional engagement the identifying to response cost rapidly higher we growth summary, while with our content digital In monetization going continue advertising reduce our we midst costs in turn that, the as to with during in average of XQ increase of a existing saw prior period. activity for largely balanced remarkable a In providers relative and and sales inventory investment XXXX, to to in I growing our the meaningful areas on work Ann? platform infrastructure those and COVID-XX acceleration the reduction addition, margins revenues will new service over in forward well. With reflecting year and quarter, online and

Ann Hand

esports to Thank production the how mass we our our you, participation group to this partners, that At attract and early themselves happen derivative Clayton. fully and if response now and in the and expand I'd is days advertisers stakeholders. capabilities content are see can we emerging. we community to the pandemic League its opportunities Two on a and value and evolving, that partly have the wide and now brand proven is our have sudden our to by like broadcast our changes viewers turn differentiated remote and platform company as to players of by growth. accelerate of a to focus caused core partly Super we created content technology even material and

first division facilitating of with, platform gamers flowing that gamers driven along user we The launched consumer a a for naturally with is diverse large network a generated content creates community gamers. by

gamers to more everyday tools share We what community. offer properties gamers. for we XX/X in our Framerate enjoy superleague.com the what move and they the through love Minehut the and more each with and the gaming, around well to they their love by experience hands highlights to of tools model so and learned for that other collaboration challenge will celebrated the games Putting have get

we to and second a of take our for opportunity others, production speak end applications. technology use marketplace broadcast platform turn is can a to an wider that material differentiated range can The compelling content it how end BXB prioritization into with further and by

I BXC but significant the to drive reach that beyond As term pull commercial their the that upside. said scale. the silver BXB happening spoke imagine year a both dollars we recall didn't lining small one And esports. for to potential as help and very we some our opportunities in investment you about during reality of and we would their and discussions partner may partnership start, platform XXXX IPO of - into strategic active the have both the at we us with But the longer

To of playing said we we're now accelerating right for now we're know small need while new we And earlier sales questions. take to some what continue need add busy we'd here facing aren't your the love to and more Operator? what all reiterate what capacity adjust I We our we to stakes we do. to do know offerings. to and environment

Operator

the Instructions] of line [Operator Latimore Northland from Please Capital. ahead. go question Your from Mike first comes

Pavan Kumar

This is foresee video of on actually What on views? do in Mike Latimore. Pavan a you ban TikTok for on kind case Kumar effect of

Ann Hand

again, that repeat little you a there’s Mike, Could echo?

Pavan Kumar

Okay.

Mike, you So, actually on an kind of of do foresee, what ban this is it a Pavan on effect for came TikTok?

Ann Hand

it. Got

Pavan Kumar

video On views?

Ann Hand

a channels on growth happening There's question strong really good we was Got brand that Instagram. absolutely we're The Instagram. still it, TikTok have because and really early the Framerate share days lion views are seeing in focused the our yes no, of to obviously started Framerate it's there. we no though on doubt launch

that's So, the still foundation.

we undersold Snapchat. with and follower I think are probably how is the what exciting viewership numbers

to a And a off little user-generated revenue we're to take and able off League volume different that's series ad of is what drive way and package is those series is that hiring us what to weekly way a Framerate we in actually products. that's much a it that posting all able So do Snapchat. then and we Snapchat TV that an viewership it's to little in sell share They're through they're stories. and their coming get Super of of three-minute on because bigger of different inorganic content

So, then Snapchat it's the is right it's Instagram and where one number order by rank the if to happening, TikTok largest followed had in be third. viewership now I of would

Pavan Kumar

question subscription on second the my is And services.

subs the services? provide quarter? number you the of subscription can How the [indiscernible] been So, reception has during

Ann Hand

further January subscription to the retail. so, business December we were that Yes out February trialing and started and in

the pivot more these as it. ways game form matter percent what online. news of happening March good digital. analysts investors to able was activity we we our to in real micro-transactions small based; fact of purely the more We turn to the direct-to-consumer towards that. and of play is And marketplaces. questions. be But of for so, the end a all we we participation had as our and program were really experiences to us we it had play experiences more that was had halted we was and many and rates game And physical is the now did for that pivot soon starting and was of of responding the physical them subscription took The we in into monetization planned, the And is higher halted a

alluded really that script subscription because active revenue while and base reset hey, believe of subscription and the we revenue about very little our now As in just happening that’s online. do much said, grabbing you're future a I of BXC start still this to super to of BXB can't who thinking is why you a bit how part that you're having

And in digital if to our no we so another Which early no of lot could But retail us small see exist it micro-transactions both March. this a direct-to-consumer in that to literally go. that's even It say the put subscription didn't year did launching that. because BXB. concept it continuing into you BXC we gives of exactly shutdown of that in the revenue take hey But fact pause revenue XX% parts I one for double a down we specific on that there's what quarter us definitely for retail step for something we a said need and this the will where us and on excitement it's that, website. to basically was represents goods even last had XQ numbers, have though

on focus digitally. of surge having Let’s we're that engagement the

Operator

from of Brian Your next the question ahead. Alliance Kinstlinger go line Please Global comes with Partners.

Brian Kinstlinger

third last subscription. it year-end, is you about maybe that mentioned by offering you and talk new have like think digital some that of you I thought for look help might Can you that had and it's key subscription is the that maybe how on to going, quarter? hires design quarter what yet follow-up about one - plans re-launching Just

Ann Hand

joked on late about and a little but Boyden side, alpha really Yes, star that I honest handed leader development him John tethered a to kind of the a product we retail. hired the January subscription We rock named was statement. mean trial very it's in actually of I this just direct-to-consumer

were to because soon COVID bigger much to As we make what his say richer able got look. and we as is job hit,

own Framerate? can us how create help the to? cohesive about about we we monetize do our Minehut purely now consumer facing think differently You all monetize. digital. of properties a subscription help to do player experience, more think How we so it's How

bigger other challenge And that share all of be John is subscription. and level opportunity set challenges I monetization let’s is And that's gave taken Minehut to the him to they with actually new property much and about so, the much runs face bigger when step more with that leader compelling ways each say opportunities But new of steps that John for kind highlights a that who superleague.com, gaming the I've of taking the revenue And players of another can much that XX/X trend new transformational change are. really launch the mentioned critical then has - offerings this we��re will engagement in will could into and call turn to much experience also talked for a really - monetize be brand. superleague.com. been and work to where right Minehut of offer use that more that leading that has very we that at our from the players the offerings likely

Brian Kinstlinger

potential you how starting monetize technology? then and maybe for production talk And can this customers to booth reacting virtual are understand about technology and help this the the to us timeframe

Ann Hand

Yes.

leadership, and together isn't you a on So know few content this zoom that cobbling with then amazed. have we but the the and companies this other we demos top media at We They're of is do that and all right were just kind ahead they're things. amazed love now what big one.

the readily market So available for in others we them of were use. using some to already technologies are advanced

them stitched it's talking way are one we've that about Some are allows toolkit. milliseconds. to that the we're perform together seconds as proprietary, things that lag the are And but architected together they're them cohesive them

all of tricked Big producer kind use you can the of a on content So in toolkit like that quality their of with really the real broadcast were from it out end has and a offer comfort high sitting Content a cameras. - sitting delivers it's and the the desktop studio that hardware something home their

of you're already to gotten responses so, performance that things. is to being increasingly lot what what the The is we've And our One hired a two next really good of that. is step use is seeing team. we're content

Now, top big hardware being these of and tools built and them and because by they're don't for we sit also Gs are very these their we've labor broadcasts use the to the affordably and typical guys to deliver physical a all these broadcasts hired have GAFs but being Gen all the homes, done at production.

which void. affordable next And content things is to you participation it's pretty mass coming produce us fill So, thousands thousands people to getting game a act eSports hiring for hard cameramen output saw of almost see you're the virtual them. high talk to a to of it a that really where thing production in make players again, booth you going producing show sudden still into or turnkey The a that's when for of way. easy. is a show quality solution of outside you're really all have eSports like And

to off step used you're is first going see how be this us eSports. beyond showing the can So platform

literally big elegant could productized now that at The I that it think this turn what do We become that real us. you're of on the has something into a really step UX it is third the is people something going opportunity. mentioned that's a front end. that we so from to see How that license could

that and accelerating product it. for everything taking We different it we is else think is than we're users of really done. that let’s on were first the use step so, And technology no ourselves, next we've our the roadmap efforts

community. others. that of of lot that key But is a and entertainment use just use that a our still being change the but Now, into might penetration the sports even But community? has we’re also by others of time like building it esports to way it not down productize and out the aggregates others of that our esports applications and brand that content education wider fact everyday vision comes to to doesn’t it's for have monetize a gamers in further and it be marching entertainment, can and the further categories of community beyond derivative

Brian Kinstlinger

just count direct do comment direct plans force year-end think you that - would you of achievable you sales the is Can force? one. quick a question, in sales size and Last your by like what where your

Ann Hand

let's to impressions. grow to now there our six total right variables point we're mean through will and and when ad product we're talking was but put all now about and earlier is different - at Maybe begin those sitting ad FTEs jamming whole products meaning available spot impressions they impressions views or be monetizable to line you experience, the will about an we're to productize and right right don't against them. right say the the more total that some seven have with I are saying XX% views top I the views of now and these placed So of about sweet continue want advertising XX%, more into total

that So, I doubling a think our probably what of force. sales see is you'll year-end by

our it's in hand of be be focusing the company, us. percentage think generating so that I head investors and of in and think more with revenue to on pipeline be more is line a will revenue-focused revenue-generating that count shape have of think overall the to what the staff more should from I what importantly and is and going see the to you'll expecting we

Operator

National question comes Klee Please next of the from Your Allen go line from Securities. ahead.

Allen Klee

the call late. joined I apologize I

you've of your this the and and the it Thank terms about and it's advertising your your in been sites on can maybe progress the about how selling you but within looks rates talked quarter inventory how gone you selling you. thoughts talk your in of July? how had you've maybe you're through getting advertising If of much

Ann Hand

I'll give points. kind of two of data you So, sets

numbers glad because what I'm of a lot about say it there's and of I bit little to again Allen talked moving a there. So,

views right that? right ad have monthly ad real at year an what the So, to XXX at or rate XX% CPM million million of seven at now in against you the we does and dollar you well, months million look And I so it them look products the with we the billion talked card views did to How do and first what impressions and amount, when now those the XXX catalog you look XXX achieved if that through product views that against before fact XXX that and million what does monthly have rate we model mean? about with July about mean I well impressions our if X of about our it.

is kind all revenue of of views sharing of sort that of indication now and what is these what we're So impressions. an with you guys the what is capacity capacity,

referring only ad as or it now? to our products we're view just not it Well, every impression I will to we jam XX% Now, people away and platform. was going ad some why right quality want earlier it from turn products, against of is

want how high about thoughtful that those do CPM being we're to maintain also but user So, integrating we're because we experience level. for

on of CPM $XX standard quality is talked model. before kind sub our CPMs that We've we've $X of $XX, placements. for never that had kind of most commoditized our Now, calls programmatic

too, that means CPM want XXX of the you is you it capacity to that year $XX million. just views, of so to we but monthly $XX And $XX current XX% $XX the that at to look rate is revenue in that to XXX preserve if call network a million kind current million about million month apply

in XXX,XXX upside we've the is but that quarter, of the So of kind annual $XX delivered range. million to for more $XX million revenue

for the out higher is keep potential how those to percentage a network selling well have the going going against. we selling our will And sell guys keep good right. we we're so we so world the to but our where perfect then other can total have of capacity growing were products going in pipeline, we're all ad so deals then revenue. enough to are is and that audience a and and impressions And higher that Do that's keep and views of in that the factor at adding

Now about I bit picture, current bit the tell little gave of you’d give a does a you a second said July. little example more state me of kind

time So love worth example. our deal it's I of company bit eat real again available more think focus days on and one for up has to media too just probably big capacity. XX know had all you that to But about inked a a who us with I'm XQ a little XX% to going repeating that just we

pay all not not it days. of those us XXX% XX% available what's but of they're $XXX,XXX So about just XX going for to just and

it's continue up they how of of again you pipeline they types of if really another and it's just effective So force more to sales and to a presume productize their way bigger understand CPM all well of to starting max those variables viewership getting these the to now Super grab richer now that's had let's get more premium more current for League volume should sat with more and that ramping we deals, mean be capacity. more

ton a far capacity we right of now generating upside as revenue just be the we with there's as So the can have now. right

Allen Klee

cut and that? savings And estate then able get be you mentioned Would to quantify on back real that your you're going you some from that. to you

Ann Hand

hardware a of for So we new storage might cost. it's It when cut low upstairs the we is world is XX%, conference remote and what time little figured hey going small a and back time. had Clayton to way needed a but hung that back some some we to month-to-month from small our stay on very said studio as a comes where company. This space on if table did need we lease again to we're space we that just and being, a we fully is

just been pulling in, costs Clayton there's by space of travel going all kind of and on expense that the have to renegotiate costs up of getting that engagement a there that service to going renegotiating like all out on now annual that including is amount doubled T&E but plus The associated those we're means need costs savings costs we've alluded our of big have we're out using as headquarters the server lever that main of right that those we've your cloud as risk that down. then infrastructure real contracts a of that we no of rid in activity at yeah and seemed you with all we for been bring it and of sudden now. leverage the well. keep But may then So next surges that space looking in of say up. to with be to providers we $XXX,XXX kind are to low it and when go But space front

of area of next So targeting. we're that's kind the that cost chunky

Allen Klee

well, could of one what And for of each you - were revenues could ask I am just income to statements segments, sorry but this your three say the them?

Ann Hand

answer to want You that?

Clayton Haynes

Yes, sure.

refer and total in to taking so just you're at advertising is supplement think what sponsorship bulk look revenues. we were of about the just the for breakdown our And that XX% of and quarter the our I asking the breakdown traditional with revenue of then sponsorship revenues direct-to-consumer historically comprised XX% that the our as to would a surface.

Operator

& from [Operator of Instructions] Your Company. go Needham ahead. question Please from the comes Martin next Laura line

Laura Martin

your And some a doing about questions. which third great video signed in of you your of demo. quarter their my these of do really next you units thought advertising easier perishability. kind the so like all guys this a represents months CPM but is engagements they’re a are model $XX Trade and question or objectives use my platform is and this the forward is big like units full like is perishable, backlog for That’s second put units KPIs Desk and the you one of lot the programmatically - couple doing two the kinds looking on enormous guys why monetize because And going a backlog first. you this sell-side you is stuff so quarter have maybe Just on number. are is better effects ad strategic my have some have that to recoverable week how revenue they have then not second so of are because backlog number? a that signed why is backlogs Have Rubicon

taking is Thanks. advertising job So, and and existing perishable than [indiscernible] while those? all is to six to go out inventory of to this hire this why these better slowly platforms five the and employees units like and use advertising rather actually monetize is it disappearing four,

Ann Hand

first. one last your take I'll questions, fantastic So,

do will range. kind because $XX them not are heed range, enhance to certainly have about but products, more in Minehut, how found I the the example doing people we direct those dollar point for Minehut the like we to your in are where starting programmatic right you video starting build is are So found now We what the pennies build CPM into on when I links. ad in of we talk in we

of high the still so getting some basic even features mentioned, just there’re attract So, just more XX-day then July. we’re use product about some do kind we us, that to $XXX,XXX last like adding we’re Minehut. CPMs that test more spending that services some low-end we take and doing - in and month testing of We programmatic here deal in $XXK in for in inventory things placements the probably really We made can revenue higher our just are. some certainly real there of I there will and that but what bounds

to that $XX a those to that reason that through pull that inventory CPMs, inventory. out as other get and because It's no perishable. and more experience don't it's point that of really making and those to kind that have services. for just if but try long and small, doesn't impact have overall sure placements we So, can't future side recommendations have on not we inventory as trade direct really about you we diminish CPMs desk what it's that But point value can I’ll of have preserved placements we’ll of great is high out that really into the quality those - rate found used to forward because we for lower been start no a a weighted going is there pushing we’re the any ad our doesn't market quality it’s continue certainly it you're there that the to not getting there we is problem look specifically right down sales we trying do lot for user

about sales a question there's and I've are deals of your run of a revenue is indicators deals of second think teams great the moving backlog sales cycle. of leading quickly one it through of lot health is pipeline and it's the how I a Your because your lot size lot of the too a about

more I'll information of one how start maybe to to, that's about maybe trying introduce that's pipeline a great you these just the so more all of some revenue some thought that you what how monetize, like think of much so I to today can about billion we again And data which can health overall the piece introduce is the more to - start we forecast. bit introduce views, lever trajectory this give another can but help little to can in guys see of our

Operator

Bill line next ahead. Morison comes from go of the National Securities. go from question Your ahead Please

Bill Morison

Just a few.

that direct First productivity take force a it up same your sales monetizing force of would would a million you them up that staying the people all, question. your growth how if seven to be long of How it to like you're a for then ramp month. long to full how and take sales current is sales to long bucks of so these impressions? take about First rate would get

Ann Hand

Yes.

XX XX good deal The team XQ. last it's same the is So the of three six that line came days. able I news to the the that that for think this over on in XXK $XXX,XXX team was bring to

and high level. front a in me selling XX-day tells a that are rate are kind gear premium already I of at that mean CPM for and that they out that's So that monetizable units pretty those they activation. pretty of getting in advertisers

So ramp period the I is don't long. think

of balance the is do to products question question find your the experience. we into right that have second we will an ad pack many how I to I of think part think to want

said team and percentage XX% really many, usage a it. now a have that's I as right XX%, the I XX% a tier be next performing and I'd our is inventory ad mistake to and saying if and that or we think grow to the units, pipeline, that more also percent those impressions perfection probably are We're see decline the product I of how only monetized I what that just to hey, mention out people as like and of fully advertising kind such XX%. ad that see you a XX% our the more mentioned figured call earlier efficiency. be views did And and or about the of usually our we continue picked say as two-month and in number efficiency XX% sales products would meaning damage experience the There's user right going grow have was - up pick that's guessing would and about both new think number So places start that that out. to make we're team I total at to is most that upgrade views we operating can tell monetizing. try have that but should quality haven't our an conversions team of to to high and XXX% be they would units selling our our in would to earlier, ramping up into no window and would audience drastically more. thing of at the I more that sales offerings and maybe sales monetizable ideal engagement a corresponding I But of it is and against ad and to CPM to as can now Laura we while level really going add continues push impressions unit open we to that I

Bill Morison

Good.

left or not plans your does there And one Ahmed you or for then CTO, reasonable. Samir what force to sales after going direct ad own you're another get your platform that mean ramp? Sounds are own opportunity, your your have

Ann Hand

Yes.

own operated today Instagram. owned products into on and even building properties our our we're our and So ad

really those work really and that building a in It's year the in a Samir tremendous remote do to None functionality just some e-sports is one programmatic then we part. still and we've platform He out has experiences stack small earlier there. we're lot build the scale. at been into to We're for strategic part true been deploy last in well. able the So, them against components a We way e-commerce units. selling the company. of capability question, the buys the testing is to platform controlling that's piece. not that a XXX% to the over can was And the as tournaments of ways more amount changed. broadcast Laura's automation virtual tech those that's e-commerce really third in that advisor

all for of And the we're like in production so going really stay unique tech for a we've gotten that recruited accelerate unique top advisory I of instead place. now, mindshare of founder talk next BXB marketplace because platform. web-based our big role, we the But that doing Samir joint Platform of our when really faster. to Chief content tech excited technology a of foundation kinds we the and having He is additional some things his is like leaders has in a what's idea wanted fully I'm team. now are those because ways much I'm well that of in that's inside And Officer notch a to operating have senior a holding platform, and an lot time things a very where capability on to that title having really kind about product have the are now

Operator

turn At would session. Ms. our remarks. closing call time, now back question-and-answer Hand this the for like I to concludes over this to

Ann Hand

teams at so speaking of returned efficient, to we look our performance darn points grab for we focused a we and think take real surge scary we through. of I everybody revenues chunk top continue and to not did really can Safe. XQ. about mean when responded, everyone our proving really listening able much down in of fun conferences that living decent and growth line that I to Thanks our it’s that see way look Yes. I dollars. and XQ and all the you're to keep good when The we in world I feel think to mean, forward do is into Stay that upcoming upside the quarter. I Super the have But how world job. works us you for we turn with report it at you in going League us way and third focus But any were I in all a were pretty can whole that still look blurry engagement so to been

Operator

Ladies and gentlemen, today's concludes this teleconference.

participation. your You this you Thank your lines may time. disconnect at for

Super League Enterprise (SLE) 11 Aug 202020 Q2 Earnings call transcript