SLGG - Earnings call transcript Q1 2021 | Super League Enterprise, Inc.

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Operator

Good afternoon, everyone and thank you for your participating in today's Conference Call to discuss Super League Gaming's Financial Results for the First Quarter Ended March 31, 2021 as well as an update from this morning's Annual Shareholder Meeting and the proposed acquisition of Mobcrush.

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 that the company's Safe Harbor statement within the meaning of the Private Securities Litigation Reform Act of 1995. The statement provides important 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 risks company's reports the could to actual and Exchange uncertainties to and to more for differ. with and results recent that refer the release Please information Securities Commission the company's filed about the cause for this I X:XX replay would available to will like through that call everyone P.M. be remind Eastern June XXXX at starting Time X, on X:XX P.M. tonight. Time Eastern also A webcast as available replay at provided link in company's the press will www.superleague.com. well be as via the release website today's on

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

Ann Hand

We're and to afternoon, delighted us. you have joining good everybody. so you Thank

acquisition all on saw news have issued strong press release great We the KPIs. our May discuss in let's about will we new the Mobcrush. we growth importantly and first to our want a to very to we many But We with more detailing first that in revenue about XX, sources of Today League. forward the moving shareholders' But on most support talk we notable fronts. Thanks are table our today so set. today quarter Super growth. of talk

and entertainment Super created. where As category, the playground already of culture many is now of The form the is It worldwide. greater gaming League a know Z followers of as is dominant gravitational Gen new you gaming force.

serving then XX democratization of individuals content they it how want of of content of or there entertainment everyone the of move is as want model, worlds, can the down distribute creation well. not TV is which again. them with content content adoption no be and being stream disaggregation is is the from the speak studios participate to advertising a big live going linear world to ad and brands only produce generations blocking advertising from part to for to entire the introducing millions new to the style primetime means through away serving content, of of will X metaverse hundreds up seismic spots anywhere, most they and is it communicate never technologies, also trend to the And As virtual the connect longer consume. content but for the in past. that thirst The economy. plays ad lucrative TV appended ad and how but big in same the meaning out, thing and dollars From wish shifts The

the is has on economies. how IPO'ed. they we creator all which roadblocks more And play games. emerged games avid evaluate mentioned the the finally, watch call it heart enough last it can never the on front, at opportunity Another be stated gaming Most around than ecosystem. that gamers recently for our the megatrend I model, this as of trend greater changes

Super and the gaming Gaming trends. in gaming game-changing of culture, each fits content these is So the is and League and headline is entertainment. Mobcrush new squarely

first So a into entity stand-alone first a high I want level XQ. Clayton Super will details, recap go to League's performance for the on provide but front. as the more financial on

trend revenue newer revenues to and coming nice XXXX from lines quarter the and monetization. streams XQ content repeat first relative advertisers with of more revenues direct-to-consumer and of XX% than tripled Our XXXX our

and into are ourselves relatively to flat we holding approach, to while inventory our introduce can. to challenging and yield operating and premium strong infrastructure current a Second, best expense as complement adding inventory uphold profile, serve more continue by we quality, our ad introducing our ad material sales to we faster our absorb to to growth programmatic portfolio, management. our as new direct diversity our partners scale margin stack And our

and April funnel monthly which months the of of engagement what months more feeder million at that April and that continues. COVID the million viewer and KPIs, active users first consumers XXXX would months by got versus reached our is momentum XXXX. advertising had sticking. that users translates XXXX. just inventory. But the QX the would four this XX, into for users. of everything are first through QX was in of be. Super from happen million the the We April for subsequent are relative were alternatives our increases last has March last to first nearly surge under entertainment? We year. into last and four at relative finally, prior four million saw surge XXX and XXXX we viewers of year, year us our million X.X believe million last than to X.X XXX our endures When about Engagement the year hours April Registered the in sit validates further XQ, XXX,XXX And more growth April XXXX, versus doubled, for year. saying and year up COVID, control impressions in impressions, on driven tells to last through concern. League If the many As at XX the asked Through XXXX. of top month you and view we our performance the logical relative for was of once That platform of how XX This it you the viewing XX% through a durable to a of

We that organic we that and take would in the Yet, are it is the indicated growth growth bold strong original flow. of monetization well. and to SX, organic beginning as our proud

wavered after to shareholder level meeting. why and So Board, today deal executive the laid receiving the on this is right up. personal strong decision. a for adds chapter, right I Mobcrush case out speak a is new this all today's team, me at annual believe, It opportunity acquire support now we your just never a for can on very I have for we us. the that for

of or These simplest live who two a streams the fans mean? enthusiasts and They represent popular generate same own pyramid does entertainment subscribers live Instagram for gaming billion the are to hours middle Mobcrush platform, own annually and media what mid-tier will are thousands providing their so their They the about their billion avid. of gameplay the reminder, to a and own and four half they content. social call three of million almost and share, like hundreds to streaming thing, influencers, across gamers stream compete speak. love over world's reach over What to Twitch, the social content by gaming streaming they companies used meaning most primarily that Facebook, to create YouTube, including or audiences. of two distribute of the and experiences we original Twitter. experiences, platforms, broadcast At gaming as level, gameplay is the to they of and First like

same friends level share with the And is that also player market. The same with target to share their the and competition, our the They and the avid converge. offers the experiences tools along in tools want up to we social So audiences. streamer. gameplay their many cases

States. consumers and gamers, offers and about media creator This by We we merger points has Well, reach, examining largest We premium reaching made and tomorrow's ad have can sense, combined gaming-centric last the platform, maybe United call, demographic young brands the we The connect companies the and on they're and the means tomorrow's plus the highly been of inventory And of Together, we right gamers As same of I in combination And way to wallets. last embed, is the larger alone. historically scalable the are monetize Gen and streamer, of esports take stream to of CPM for the ad media suite share advertising. a even all one influencer The revenue spending in in-game, a their we stream target. gamer ways. scale. premium star. where of of primary is bulk a company both experience, three audiences mirrors the formidable the that gamers' their And and time? mentioned Z tomorrow's cord-cutting has complementary addressable advertisers' two gaming. know coveted high in provide just millennial can heft. Today's journey. these inventory

XX- is monetizing a players XX Minehut to a in on modes, and gaming in game of focused direct-to-consumer, the young. overall younger Super reach Super a five enrich This Mobcrush expanded themselves. is, do gameplay foothold, a marketplace, which in point offering have the annually, subscription count. demographic them we gaming differentiation. Together marketing material to globally revenue a second and services terms Minehut, their purchase, gaming the leg game through range, with case young of real on million built-in And basis, a experience. great top Mobcrush is XX-year-old players And specifically respectively, target get the demographic. over skins, their League Mine XXX on of and player of Our brands all so Minecraft, League and Ville to

as League We as year, have void a content our on and global their opportunities third and The content, the syndication bit from with last of of to XX% value then, is so beyond. Super content technology games service. library. the advance they to Minecraft and in their diamond the both, and in pandemic brought leg upside. with put communities, through Super rough. much And over a grow monetization in journey, of a of content League's And selling and our a them other stay into spotlight there on two revenue content longer cross-fertilize our additional generated

live. as is in are platforms a cloud-based which to remote close alone, where we two itself scratching licensing million three and of gameplay But is XXXX our library competitive on gaming patented applications. entertainment and this With technology, broadcast can technology there of a hours you beginning go of Studios, content combined video beyond pure surface layer compelling and the show production packaged more. content to deeper, if in only Virtualis play, promise Our

for advanced Studios', and we and streamers, tools, tremendous Virtualis storyteller. provides set who unique digital an content production stack coming realities. exciting technology and and studios at Endemol synergy. studios like, stream And an teams professional television needs the and two all live and broadcasters at broadcaster can top Put technology of designed game distribution stacks branded production technology producers and tools to like our aimed with provide to Masters. of for companies, today's up our used have the sports Shine, capabilities tech LEGO content of recently more, for stacks the creators, Gen.G, levels together. suite TV the produce technology show high-quality storytellers, Mobcrush's is Our through

tools and technologies As existing customers as our to well forward and opportunity to combine road. the and a new cross-sell down

before combination. you I Clayton, it would the hand to to I compelling metrics like that from over Now remind of some of this come

an notable lucrative has to a three that, of before with a we've other the streaming This already we of annum, together. command across already even that merge winning and begun think already First, million audience about XX Again, and and have And a brands media to XXX our that ad top jointly view win us, our video per a able U.S. property. inventories together, over we of monthly, the our billion U.S. been coming owned go And global and advertisers. powerhouse. power out because equivalents combined today, Nielsen deal first reached deal seven scale attention sell medium will views over platforms. is a of top

million last from our direct-to-consumer. million XXXX unaudited from million Mobcrush's revenue coming the advertising $X approximately $X I coming that on model Second, with roughly $X and reported, call was

this we burgeoning companies, from a of combined direct-to-consumer, and XX% revenue, ad monetization have As revenue means, would XX% split content XX% had the stream.

matter the where cash the butter, model the were historically pro the that as indicators. XXXX KPIs, million we we story too, you emerge balance, new our revenues the margin a monetization. first towards we as positive. maintaining headed. growth companies' spoke Early ad both acceleration. the line has a profile, all healthy on, of mostly, charge top company to about strong the I the beginning points flow our across been continue can of sustainably for become have quarter now share is steady is forma this three margins because to while But to and of march bread started And leading While $X.X combined like the

this sits this So new on is where we, day. the new

modern media company, the transformation it. are We position advertising a for in placed a as model, we've of prime known the

point, where content both modern focused and tools company, drive generations, entertainment turn on they're the overview I CFO, of some the an shared the younger At because, come a our call who where with We win. of provide quarter I can will this gaming. a after are a we all sides consumer thirst which lies Clayton financial back to the again, on gaming, results, closing modern Clayton? over are will community power squarely will leveraging with company, economy, Haynes, to remarks. And first

Clayton Haynes

and Ann, we to regarding our of echo a combined to revenues, expressed to increases integration Mobcrush. revenue excitement first like in afternoon are standalone strong sentiments force received we support as results XXXX, I about quarter And you quarter earlier the get the forward were would gaming saw that to of streams. first from summarize, than in move XXXX, we our Thank of tripled our three acquisition recorded shareholders connection our primary quarter with on higher as of we and quarter work XXXX good another everyone. eager and fourth slightly we of revenue to as for ecosystem. the compared record more which strong first compared the creator League's across To Super Ann's

quarter, year XXX% to revenue level our higher compared a relatively prior above a the same the loss XXX% the in revenues expenses our increase to of was the prior lower operating XXXX QX cost compared the for to with on well operating leading as Our period compared margin flat GAAP GAAP basis when quarter. to and average year

compared Minehut XXXX. esports up first XXXX accounted year quarter XX% to compared accounted approximately prior Content $XX,XXX advertising revenues compared content release quarter. were triple-digit to for quarter was and to increase content-related three prior compared Advertising compared sales first approximately XXX% partner quarter -- approximately to the our XXXX. of Direct-to-consumer owned and of quarter. to XXXX, $XXX,XXX approximately subscription quarter to driven prior of increases in $XXX,XXX programmatic of which advertising, earnings traditional of for revenues. our first quarter as property third-party compared in goods $XXX,XXX revenue direct-to-consumer brand streams, consisted rose strong XXX% our the and $XXX,XXX programs comprised and revenues XX, quarter in for with first sponsorship including to brand year of which sponsorships XXXX prior X% filed summarized XXXX and of increased primary revenues, licensing our revenues video May entertainment customized X% display in to revenues XX% digital year XXX% on As were primarily for quarter sales, and XX% approximately of the revenues for our The operated by sponsorships, revenues, and the as X% previously the all and properties and along year which and of including more digital related the to the the content revenues compared year and of to prior quarter first XXX% our include and includes to over of the for revenue

revenue First comparable XXX% increased to than period. quarter quarter, $XXX,XXX prior in for the compared revenues to year proportionate than of a XXXX $XXX,XXX lower cost The in XXX% XXXX same a increase the as revenues first to increase the cost and the the revenue driven year less increase quarter prior cost of by quarter. in compared was sales advertising increase third-party during of the in content lower

our period. revenue content revenues profile digital experiences As revenues activities occurring physical on noted and contributing cost specific based advertising previously, fluctuate the programs and related cost sales each period each and and of the period-to-period streams to and of

prior decreased compared XXXX $X.X million for $X.X $XXX,XXX the XXXX. year to quarter quarter of Non-cash first charges the the quarter. as in of comparable compensation $XXX,XXX million compared quarter first expenses to stock XXXX were operating First in to

occurring drive revenues increased expenses marketing partially technology and in increase expenses, to an decrease in intangible primarily Excluding surge by higher included our properties the non-cash stock Mobcrush and GAAP of Acquisition expenses. the a XXXX charges, the in to platform increase acquisition This subsequent quarter. the which incurred expensed selling compared Operating in quarter as platform platform-related impact to in per to partially monetization. of which of future a comparable requirements. a quarter XXXX asset other million $X.X continuing first million and year technology net offset of across cloud by $X.X compensation, loss digital per includes was offset loss On the advertising reflecting operating or million expenses are support XXXX $X.X reflecting costs personnel increase in in from of the engineering-related basis, a net to in our first was approximately which million of $XXX,XXX into write-downs, for XXXX. the impact prior and and first share was and incurred $X.XX share costs, the fiscal reduction infrastructure of GAAP slightly engagement expense costs year included pursuant of services US net in also non-cash the period transaction-related quarter $X.X $X.XX or

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

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

cash, as equity no we sheet in balance XX, had shareholders' $XX.X $XX.X million. of and the total March debt of at million XXXX, Looking

Our current past cash million monthly activities standalone response XXXX that burn $X.X relatively levels. net $X.X uncertainty in In as with to with million we serve we COVID-XX, certain executed to to to the our previous continues be burn keep consistent monthly cost-cutting range. the calls on in rate expect associated will discussed

of As $X.XX in million during previously million sale approximately at of reported, a price the the the approximately quarter average of stock XXXX, from of $XX.X shares share. net X.X proceeds first per raised weighted company common

our that shares The earlier, various SEC. June described close common consideration merger Ann our XXXX, to approximately XX.X acquisition in previously the as Mobcrush. the with shareholders issuance outlined announced of we today the or of as to stock conditions transaction is filed expected have as As on of amended approved in connection with subject X, million administrative agreement closing merger about

such, consolidated XXXX do X, Upon date closing as any are to not reported on Mobcrush's standalone results our As first a financial financial and basis a League's Mobcrush. be basis transaction closing, results here results from anticipated forward. results on related in financial today, Super quarter discussed presented include XXXX, the included will June

XXXX did of for note, one included results, of as definitive impact on result, revenues along comparative of of include a one XX, basis a second all with filed proxy, of standalone as us in a the With from month disclosed total Ann? look XX% call definitive include net year prior the acquisition-related statement our in SEC. As the I XXXX some the operating $X.X down XX% being information our was $X expenses with summary, Ann quarter; filed with XXXX expenses entries XXXX. approximately the forma quarterly results from our XX% first QX for mentioned, Again, quarter including range. back pro our and the XX%; joining quarter other million, $XXX,XXX for the Mobcrush-related call. with net of turn quarter quarter; the quarter proxy the SEC approximately year quarter. first from margins definitive financial on April prior financial for results burn earnings in un-audited results proxy and Mobcrush's per up rate In to in I that, quarter our on estimated XXXX over Mobcrush million, net Please for additional loss will remarks. prior approximately as Based you XXXX forward and revenues we of month approximately Ann first summarized the for you will year Mobcrush, the accounting of and operating down million, to thank $X.X today,

Ann Hand

highly shareholders the Clayton. that of closing, of we're you, highly growth gamers. in a upcoming the League in targeting Mobcrush, and has happy create first team build company In the merger synergistic to on have after providing Clayton League the now proud solution details and look a as questions. to work XXXX, quarter I revenue sought are for And our begun to approved We company, already Super We're with have on KPIs. one combined continued and the forward with scale new to demonstrated Thank both Super take thrilled advertisers your more that, and calls.

Operator

Thank you. of Please line [Operator Instructions] Our first Jacob question comes proceed. Global. Alliance from with Silverman the

Jacob Silverman

have is Obviously, revenue Clayton. all for Ann, all Jacob annualized our What still ad not including an Mobcrush? hi, on Brian. ad not that taking available inventory views for the Hi, are This is for Thanks unit. questions.

Ann Hand

Yeah. No, a good question. it's

also reach through mind that our own social we're So keep views, the and of aggregating we on then our we're views that operated get all channels. owned and we're aggregating in talking about channels when

So that's Instagram, that's TikTok.

well inventory in Clearly, ways when TikTok's can Instagram views, that. our $XXX,XXX $XXX,XXX views them and revenue the something we we're in embed with of in does we well and that really But can over stream. obviously add off can way this Mobcrush we've have clear and that to year. just add last embed partnership, strategic branded Now we to year of with provide shown that's talking and That XQ try content kind about Snapchat premium was they that. and some content do

XX% them. talk unit the about ad talking of really on we're big League powerful them of about more ad optimize numbers, will about believe when we have an inventory help to their Super against viewership we social those really only be today side So them. now, But capability right

how we and and we've so, is, to our of How working operated. one little today start don't viewership think an couple bit do every in now right more optimize unit One did then ad about a programmatic right? And things on. because the embed great more where owned have who is it's and to we got I add units of we're we the analysts rate, reasons And sell? said is, about the ad sell-through perishable. that get view I a available comments talked from previously "Hey So do some

ad So cannibalized still programmatic? a a there units is units way that bit Don't ad higher but those video add out now extract units can but we're you $X from to the talking right to a rate programmatic CPM." away can a of see percent have that complement start a direct on do to taking that about as about sales they're selling effort. $XX space And decent not to maybe for that turn start to have sell-through sales, ad little direct we're CPM, direct it your create We're sell-through a on starting lower on in our a programmatic sales. XX%

I see the is. starting driver -- said, promotion almost really owned what sales to the and going where that my is Now on clever operated about of we're getting direct our be I advertising think

us spring you'll see winter or So break. a Wonderland things talking like about

learning advertisers it. the around things activation to upcoming We join inventory beacon in then are all we're Those creating ad a property where have instead we're jam. an and of moon

color Because programmatic have about different inventory. it take starting to game, us end They're different end around and metrics And things create try little But end them, these stream, more the out with unique whole so to both one to the of and coming what to that those their then ad do experience shapes portfolio. where calls, in future ways. it of more ad goes four projects to beacon we're inventory. on the a break sell-through that legs try of is optimize we targets is also different And they the really I will really as the campaigns. bit the are

Jacob Silverman

programmatic quarter? think during will And Great. topic you any expect the programmatic, generating the when it do revenue did And you not, some on contributor? of first generate start you do when meaningful And if to a become programmatic revenue?

Ann Hand

Yeah.

started to do that that have about So averaging partners that really $XXXX marketplace. cake has kind just really because that again direct of we sales tech definitely units. And XQ. right in ad programmatic away the partner in ad built a like on icing several advertising some in programmatic an And now we're effort. now several ad different inventory out out day those of building participating We We've $XXXX we're units not alone. is from or the gravy taking stack

So it's supplemental.

Jacob Silverman

fill And mean major is Super just ad higher considerably, Gaming? budgets impact? one League If rates last one strengthen for advertising CPM, that Better me. then what does for or there no short term

Ann Hand

ad out to what We just have. ways the Mobcrush, if all best-in-class means to want opportunity ad we is much big combined we're a inventory, so can't sell-out XX% Super our of XX% a -- inventory right? we've really sell-out XX%. got sell XX%, effectiveness to League So selling go, But obviously, got we've What team of you it force I driver, right? think sales even your

trends said, our think I'm that Now the when that I of size do weekly we really looking at, do deal. pipeline is biggest calls

seven are that We in six-figure deals. have deals XQ

deals a figure. were -- the six Super I that that's League over a the as So of in our fact for note up buyers. were in XQ repeat just is that the important few XQ stand-alone mentioned script deals XX% XQ, And just that from

coming for I and if or money partner their their next you reach the with dollars Disney+ going ad they're release for, to and to really become you buyers put you've become them that looking think that next put time to portfolio. with they're deliver to go-to more staple kind ROI repeat the like sizes, and Netflix tell a work work to a deal that you're inside that they're that they to of come able a two go-to. probably the is a Once bigger the you big almost most trends important been pipeline you they once,

So those understand repeats try really that And we partner. us is inevitably with that you're you're very are Because When They offer. take at. about ad too closing -- tells size what now repeats. you you work, how things ad deal with what faster, measure the can right? to we're off, familiar it's model looking the ideally you're things to

that thing close. And so speed look the of I the is think the just overall at in to third health would pipeline I

Jacob Silverman

Thanks so much, Ann.

Ann Hand

Thank you.

Operator

you. Thank

Scott comes Buck from next Our with H.C. Wainwright. question

Scott Buck

guys. deals, or have I'm you curious the afternoon, getting it not of it's was ago? bigger actually advertising is what wallet, do the a wallet Hi. taking a Good of you're the sense on year share Ann just size or versus simply in of the size increased advertiser whether

Ann Hand

Yes.

I continued more bit the think so have with that money advertiser more -- over I a did because repeat Toys. say clearly is to to is long-term paying we're think that with we're partnership the both last six example, Minehut go going paying a be more that much and League you'll a Moose We've always year. basis -- months buyer last right? than the A especially had last on over a doing you Logitech good work and repeat money I we lot we're is if of it's that's they see little to year. should increase into where work with recurring Super more

skill of now put good to I can't type Mobcrush, our age taking a we gamer of so mean of competitive greater ad there's for think and inventory of when I a everyone. share wallet you reach. brand's ranges that such specific program a no range games there's And a broad especially levels we and are speak really genres that because we with

a last bit. advertiser too say of than I They're the pandemic picked money against if did I little to really has to thought put every and still work Even froze League the responding what It's you and job more always Mobcrush an it's year. exceptional heavier holiday. would could spending stopped always right? Super coming is advertising up when front advertisers work properties, Advertising classically Now been. gaming well. you half mean the money certainly money. back, has back year are to back-to-school half. it's But how just a I putting

reposition I I think advertisers well will companies agencies. front so of that both in and recovered say themselves And

our really the year because so a And see that into just in pandemic not picks up. see in having ad I us expect improve as similarly general model that's we later And I you'll or when year. revenues the strong march

Scott Buck

helpful. That's

Second you one the to more of successful, where say little side? And for color the League me. ahead able legacy Can you strategy how some of into maybe give Super on might direct-to-consumer has guys but on business? bit you don't be been, that a us to I some want layer Mobcrush

Ann Hand

a it's question. Yes, great

servers what is of inside it's Mineville one game the dedicated So six of Minecraft.

to that's one And so the Microsoft who these where of hire gaming Minecraft, are they Mobcrush people like run companies that publishes servers.

Minecraft gaming iPad So are exciting. you in six want dedicated phone one or of And or the of of their daughter experiences jump that is who Mineville under their this turns fun does dedicated what games in son and means servers they that version mobile that kind at on the kids have great gaming they spent a to to great play into. lure team is and up into Minecraft, because the there they wanting go really leadership, Mobcrush can

game, Mineville playing a or that so again, once version phone. in in you're Now a on playing tablet mobile you're

of purchases purchases what But kids choose is Minecraft game, If the it's get or in in you on a marketplace. it. a you the rev back that it time every Microsoft of share to that means there make making off still

don't Mineville that slight to and are asking it's they to because who relationship servers Microsoft I it's the community those BXB Minehut difference great universe own playing amount then wow But them customers, a is the that really so in that's of operated But solely run of universe. one year. a in And kids gaming with talk $X and million last where said revenue us like what interesting we owned is wants. own gets about when our the know it for

server one We server private Minecraft. Number America. globally farm in farm farm are North the two server for number

we about relationship when people So players direct we are talk of there these have with. millions a aggregating

the in well that at marketplace person introduced which economy the to guys creator We're our time with kid today going is communication means are that to We've email. small using partner make little games, of now school Mobcrush Minehut, isn't the their based is kind a feel. in making the XX effectively. on to But with Java the we're them. on have in has We Minehut with experiences is playing that's mostly this actually year-olds laptop games the difference XX service. software. the A shared What as Minecraft that a

of more player. advanced bit little an a it's So

knowledge also that about in about that of we who earlier and the then advanced cross-fertilizing known stage tremendous a just real who's I world the us each expertise the on when a other gentlemen getting Minecraft is tablet. those Minecraft So cross-fertilizing learning because small game enthusiast. businesses for run they've exceptional two is but amount the in are the knows modes, really that how communities, XX player. Minehut have years started when have the we for player a And leadership avid you what two more is truth Mobcrush talk about lot And that's

Niraj who are gentlemen know other's two they each are and a these and So about lot Trent really communities. friends

we're to top-line. faster. with So you we longer. and different our them built those formal partners to tried understanding question in it never can and powerful consumers. doing have how XQ. at really player's journey so really side to tools we we of been the knowledge all to way all beyond just bases We marketplace can But their Minehut owning been on introducing the in accelerate how and monetize way two what We and see And direct Microsoft original Mineville to started put capability independently the ways monetize the together with doing the already Minecraft just both. go leveraging kinds a in a your Clearly, synergies guys are excited had start

Scott Buck

I That’s helpful. very time, appreciate the guys.

Operator

you. Thank

comes Aarde Group. Vander proceed. Maxim Please question with Jack from next Our

Jack Vander Aarde

Great. Ann. Hi, Clayton. Hi,

Ann Hand

Hi.

Jack Vander Aarde

quarter forma Clayton sounds implies revenue. couple which to or dug pro maybe that XXXX Ann, be too of million Congrats of this the into it -- Congrats about A at on just $X.X the almost it revenues Mobcrush. little of questions. Mobcrush were $X.X acquisition and on a going bit million, first kind I'll the like it's closed. least start with mentioned you

revenue couple that roughly Mobcrush advertising-related what category out break on questions like out that. between Can maybe Just just revenues? follow-up just you of break XXX% or what of even it was that a million type $X.X -- just or or was

Ann Hand

No. about -- call It XX-XX it would advertising to direct-to-consumer. I

Jack Vander Aarde

Got And XX. XX to it. concise is DTC about That's XX, nice helpful. and

bunch and about was that of -- at sort I'm filing forma the to saw statements is mentioned. good might -- a then, related April think sure And this pro released of I there a seasonality this the not be $X.X what to of Okay. Clayton this a million as end Is business. way

look quarters or base there seasonally from normalized remaining million is you was at work color good helpful. stronger full as $X.X a be contribution Mobcrush, slower? So, the XQ Any would or of off, to

Ann Hand

for think good don't the We about guidance. while reasonable I half start shape is think I say probably of think think would companies -- we're I year. the some seasonal growth are in give year, what know now do early But that I to that, to modest Yes. with a the that first of historically place you has is if that want revenues certainly, the right very we advertising enough very XQ the using

Jack Vander Aarde

a I helpful. just just That's understand. question, then, And Okay. so housekeeping

seven million had the like audience in will quarter said I annually. the and was remarks, million in release, XXXX. think first Super think billion you it your League I monthly in viewers US XXX XX viewership prepared the company And press a then, have combined

So, with numbers viewership here comparing these am I or... apples-to-oranges all various

Ann Hand

Yes.

Jack Vander Aarde

Okay.

that could you if Now be helpful. would

Ann Hand

of talking media how It XXX the the million, of and just count confusing that's I when thing are these channels. how does get It's it tools, the viewership. But you we're a people free these that, influencers stand-alone. about personal is different good their Super at all question. gameplay, is, some kind gaming Mobcrush's social live partners, mean, when look own League multicast, tools their stream to that is powerful using to

him streamer and it's So live his account a, Instagram if streaming his simultaneously. gaming and Facebook Twitch to

audiences So well. we of can as people, all those count nodes those

because can not say that influencer, branded we node, a reach go matters to Mobcrush League reach. or not that reach everybody that you're going they our to reach you're going We it's reach. pure And to legitimate. get So we Super that count just look else when to advertisers but is

need. materiality prove on advertisers. that could change as the big that scale. there put and does of But And so nature the Both with start with all the starting have decent together. on we their we of so brands can have to call, I the conversations own, to the reach companies the could amplification that a effect is And were conversations sit we they those said deliver that to about have you and media them things amount

really well number a we wallets. that But share the bigger in thing, of and advertisers' able we number. you model story, question that being are I we of kept about, goes XX saying So, how couple being because will do of Americans big just I I what of the advertisers we really guys think last years is, be legitimately our grab know previous saying, a that's simplifying they're public we And this? how wakes so, a course is, when that's that at did next we're newly would when a what reach as able company talk track. one talk about that's combined million on doing to just say we to monthly, to And number Super a call, a back simple stay going really and to can to League about are up our think over

I you revenue bit programmatic. about way so that and it back KPIs thinking each the a are to they it how do guys can to you about relate, specifically question to more go care that how does stream, about about start an to because, think that here's starts Here few modeling earlier need also become

integrated the companies we what think to about, So, is we're once get really you. to that we how going narrative do, present can

makes more a just it it simple. So little

Jack Vander Aarde

be of that versus Great. owned helpful. you advertising follow-up question, Maybe between Okay. revenue excluding just mix unrelated. third-party maybe kind would then your No, and a just talk operated And channels the channels Mobcrush. about the very

see years you that and mix? where mix do League? Super the then, for is from where one a then And heading road term revenue to down today longer that So two

Ann Hand

inventory our have and very the we have. is it authentically activation. heart it on is we somewhat is It's operated, owned can The ad at really an in-game sales Yes. way the to an because entirely compelling premium that direct integrate that of interactive most what advertiser

and so majority in And it of operated. owned the is

We sell lies strength haven't and pushed units with but have, through too we the embed where reach ad hard units social Mobcrush social that is partners extended channels. kind on add how reach really extended the selling that's of to of of the kind

almost doing nice not I of programmatic, beginnings which predominantly days I then and in CPMs of But a amount becoming units. a as $X,XXX day the where direct the pure that ad it's they're for Super revenue we're mentioned cannibalizing kind we're And said, League like decent it's of chunky earlier, $X,XXX sales. programmatic. So direct to is the seeing sales

Jack Vander Aarde

that's and again, for Got on And me. helpful. it. the of Fantastic. it congrats progress acquisition very That's the Thanks.

Ann Hand

Thanks.

Operator

comes proceed. National question Please next [Operator you. Thank Morrison Our Instructions] with Securities. Bill from

Bill Morrison

companies? CPMs or Hi, much similar Ann Hello? very the they what Congrats questions. roughly have like Clayton. of one, comparable are just vote. Are and shareholder different? on a couple between look Number And the I

Ann Hand

and or about sorry. this break similar, in new up hey, they're in and so I'm what release. CPMs and The stream new seconds, stream play saying, could because mouse model very is but with or XX you this for coming a out speaking Mobcrush here. why happening to their they it, are I'm a is watch back I'll the is with new streamer a it taking love Oh, be holding that's movie video be car a Logitech

up someone range a it difference is rich kind this just tools is kind happens matching inventory brands League to We're of to we product for Super Mobcrush like CPM going in with placement with effort and it's ours, free. efforts. the to that branded gaming sales is the a it high-end our like inventory product right? inside out a so else's $XX that And because kind of that $XX sitting of use brands has stream almost we're look see And same placement, direct

Bill Morrison

Good.

take then And the great. DTC? Okay. Mobcrush That's rate what's roughly for the

Ann Hand

on DTC? rate take The

Bill Morrison

the with Microsoft. Like split

Ann Hand

but it, generous. split. It's don't if it's oh. generous Oh, a that we I it's appropriate know disclose

game more from those that it a so with And the We're that's Mobcrush great, margin does team business. making and thing it than bit makes to perspective and margin the experiences us for little money about games certainly profile. the invest seeing their of a a new attractive nice in better

of XX% get of it this to some the started we've repackage content some really derivative is, on because to making And side of is of and house. a margin out We're our coming boost content. as margin sell XX% we

Super as League's from seeing quarter. this Clayton healthy XX% you're in that range high for we margins why that's So reported quite go what XX% was already thought

strong basis positive I kind top line the XX we cash growth. as really march at modeling you look for model Now mentioned we start that months you as us as when next to over that's and on towards still as quite narrative at a good model, not But them rally their don't and months. think flow healthy the that want you weighted ours. strong But And look a DTC ad margins to when strong of target. combined, certainly this Mobcrush's to are margin XX is starting a the cry

Bill Morrison

Beautiful. any on sales All it are the or right. And you then is what goals tools too to the for have know the near-term idea soon of do side? team and

Ann Hand

Yeah.

eve, last has could together can you a be we that just take view securities of sales the together great certainly you and don't best Their approval." exercise together, we? yes, wouldn't if would for I why would go two out so, couple "Hey, than out be point the go a more we sell and few said, were teams is over in because and receive companies able so We doing probably getting that of -- the teams. We And support. been beat weeks. sell And if true. things. it'd apart, shareholder sell what and is, to with think commercially together, and start counsel guys integrate I mean, us to our

of want, be revenue ago, a of wanted guys We what wonderful we you it First in too. to and just team our inherited We all, they've that very of want we talented year sales little increase to percent perfectly fantastic talent. at Well, you people team recon, And the revenue-facing that's team. Mobcrush longer said jells complementary more been a sales right? to a our with facing. just

So they experience bring and just a lot great wealth. of

overlap. that compared thing wasn't to second ton pipelines. there happened a surprise, delight is The our we and And of

really of other real interesting, that that in thought some had Well, successful we're other. so in toys Mobcrush, no entertainment. kind deals to fantastically in at going each and not they've gosh really penetration we had We're was we But automotive. cannibalize automotive categories. And strong and

out overlap of there. So, is, And as and script pitched lots I the thing mentioned together. the we've synergy third gone then, already and in

sales pitched deal Our inventory. right outside a programs very of company, buying just is fact both one. NewFront big exercise up shows to cut Super a a Mobcrush companies just these seeing last then, of made And with the at also together, both heads decks Esports companies event it of of the weeks League, across that the both. some Again won that few putting pitch pick were that week we inventory and buying is for same merge. sales how inventory our back. now two media aware that And that the they and we It's seamlessly some going notable inventory. is It's inventory from

Bill Morrison

That's great.

what you're their level the to of profile be like, upon would look how the is productivity Roughly, have? what going team So roughly? closing? And many

Ann Hand

Well, is workers. my We're high, all remote productivity hope level, Bill, heavens. I

Because I jobs we about real have our I done out sales team. So a of good last they in in had breathe lot a headcount But have year, mentioned. days. synergies, of didn't finance people. engineering, XX I some Mobcrush over or the and team themselves mean, an work mean, as these we'll internal live marketing and are lean to a think, yeah, There I

you're the cost. is So a first classic to trying it's not M&A event, doing thing where slash

spend marketing it's are be think who fact we has headcount of And been turn going the of to start in infrastructure if to in three, ad their through think platform I in we see line. call a But as top opportunity was are so know to to that if the growing. with is plus absorb the we be mind. on that just no where if do I'm well. see one well. There's have. it capability, levels can growth as we acceleration did deprived marketing I hold our we a talent it stay we're whether going the It Mobcrush, see going model felt certain or growth, and or cost, lot we can on reason, on But anything, when And see one notable, I was equals, onto four because both confident direct-to-consumer current In content, it's to just my companies going whole doubt five, alone. to it, the we just you're that going

headcount of percent a overall have on So, of people focused that we facing. higher their larger percent a are direct-to-consumer. revenue was sales had They that will and

And the corporate revenue the we engineering that lot revenue balance amongst we'll dispersed like are facing, a is and of as that staff then so, purely one-third biz healthy one-third of but have healthy well. one-third again which a facing then functions dev, that

Bill Morrison

a lot. you Beautiful. Very exciting. Thanks talk I’ll to later.

Ann Hand

Bill. Okay. Take care,

Operator

Thank Ms. you. this Q&A time, would closing concludes for Hand like I call to at remarks. our turn this the back And session. to

Ann Hand

want stack. offers technology were the right today satisfied up What monetization I investors few is, questions that and get to had then wanted asked, to Shareholder There so and two Meeting passionate did technology League, those we -- before that have. its and sure out Mobcrush that do we Annual to to Super we Yes. mid-tier really for broadcasting have be close were a that I we technology The questions related our broadcasting Virtualis streamers. and Studios technology stack, we that

script the a hope expressed see I that has do of in tech synergies stack. so, we lot that And

model. all emerge. put you together, technology Right technology Mobcrush is the model free of a If their now, start to things and kinds our

ninja. of premium to But you of -- that help for tools access where larger larger they more of you social storytellers aspects as you Virtualis creator really them, set could maybe tools in fit of a into freemium aspires model, high-end start to quality end, advancing But Mobcrush tech. broadcast be for for who's the now. out the really become that free. upgrade. to turn starting could of and some technology for more next do So, higher And that a get the broadcasting and of can some basic broadcasters, get Maybe audiences of can to build for kind they more higher free use those

So, synergies there's lot think a there. of we

We tech But have, can pieces go also that our of your think to more It all of there a studio premium streaming like we that we cellphone. tech the like devices whether it, of out on when there's we Endemol sit all BXB put to Shine, those of technology using together. the conversations about have changes aspects want talk stack. kinds high-end

we and there opportunities sits be more we accelerate was So, going And hot are is with intersections that last on. they any legs that this when partnerships, up think leg three about conversations have time. advance almost the potential wagering. to outside to material continue look require that rumors it's other openly position e-sports make really first get and that now. like when model, the keep just NFTs. becomes the in an close where the But more revenue to space And What technologies we then, that comment on It a on and together, side of we very don't that And of any always we about a people continues. that a and at development disclosure, you M&A. it we to licensing then, seeking the and M&A. question those we interesting. to are told a question was the you'll that things educated power I you place can fourth we've to And the of eye put have disclose that growth two announcements company And are as opens not the Obviously of on a has interesting other is a know. certainly, some BXB a will NFT a become about SaaS area business

Ann Hand

hope answer investors at So, that I to our the some questions that AGM. posed that attempts of the

second August. joining. report thank when like we'd that, again with results today's for conferences look quarter with to for to we and Thanks at everyone in to upcoming and So you speaking our forward listening call we

Operator

conclude does this today's gentlemen, and teleconference. Ladies

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

Super League Enterprise (SLE) 28 May 212021 Q1 Earnings call transcript