Q2 2020 Sciplay Corp Earnings Call

Good afternoon, ladies and gentlemen, and welcome to the side play 2022nd quarter Investor Conference call.

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A brief question and answer session will follow the formal presentation.

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Now, let me turn the call over to try to cruising senior Vice President Investor Relations for site play Mr. Cruising you may begin.

Thank you operator, and good afternoon, everyone.

During today's call will discuss our second quarter 2020 results operating performance.

Question and answer period with me this afternoon, or Josh Cool and my Cody.

Our call today will contain statements that include forward looking statements under the private Securities Litigation Reform Act of 1995.

What about certain risks and uncertainties that could cause actual results to differ materially from those discussed during the call.

Information regarding these risks and uncertainties. Please refer to our earnings release issued earlier. This afternoon Semmaterials relating to this call posted on our website at <unk> filings with the FCC.

We also wholl discuss certain non-GAAP financial measures.

Description of each non-GAAP measure at a reconciliation of each non-GAAP measure to the most directly comparable GAAP measures can be found in our earnings press release as well as in the Investor section on our website.

As a reminder, this conference call is being recorded.

A replay of this webcast and accompanying materials will be archived on the investor section of our website, it's I play Dot com.

Also so about a reference slides will be posted to our investor Relations website.

Well management will not be speaking directly to the Florida, you slice or metric. So we'll take your review of the company's or whole actually use as a reference document following the call I will now turn the call over to Josh Josh.

Thanks, Travis good afternoon, everyone and thanks for joining us I'm, so proud of our coal producing record results from the second quarter, we delivered significant and compelling enhancements to our economy's came quality can live ops across our portfolio that allowed us to truly capitalize on the surge we.

I've seen in player demand.

As well as new features such as I've been hopping in calls tests and turned a minute champions and jackpot Party.

As a result, we generated record quarterly revenue of 166 million.

40% from last year, and our EBITDA increased 80% of 60 million.

Also a quarterly records.

ARPDAU increased 40% to 67 cents average monthly revenue per payer increased 24% to $101.13.

Payer conversion crew 80 basis points to 6.8% and we saw our mobile penetration increased 4.2, 87%.

All of these K P ice represents a record level and demonstrate the incredible session. All of our games are it looking at our portfolio gains we saw goldstrike outstanding results and also saw strong growth from jackpot party quite yet and monopoly.

Very confident we have strength and momentum and all up our games that will enable us to outpaced industry growth in 2020.

In addition to these amazing results. We also acquired casual game developer come to play during the cycle Parker, we're extremely excited to welcome to come to play came to type play as.

This is a perfect match when it comes to both product that culture.

Adding a new genre of evergreen casual game and incredibly talented team to our portfolio immediately expands our car market be on social casino apps and enables us to leverage our unique technology and strategies to drive the player engagement and grow revenue, we believe what our support.

Expertise couldn't use for acquisition analytics that alive ops, we won't be able to work together to drive significant growth then that come to play titles.

As mentioned one of our core strategies has been to bring the best content and supercharge at what our support.

A great example, loved us since our last acquisition Spice track.

Which brought the popular bingo game.

Oh down into our portfolio 2017, we track incredible results following the acquisition by more than tripling the games revenue.

We plan to utilize the same success model to bring come to play into our portfolio.

On the international product, we continue to run you a testing with monopoly and have expanded to multiple countries.

We have undertaken app store optimization efforts to attract organic installs and have seen some success.

We will continue to experiment, what varying levels of spend and monitor modernization results about paid and organic installed superstar more traditional markets. Other games will begin to implement similar technology solutions to lessen international player friction in the future.

We're also excited about implementation of updated organizational structure, our cross star game change the incredible success up Jackpot party and the key learnings. We have developed problem that team design have led us to decisions to implement the same structure across all of our games.

This new teen alignment, we will have dedicated team surrounding life Dobbs feature implementation and CAC and quality and pro that.

We believe this enhanced team design will allow us to de lever a more seamless player experience faster updates and deeper met a game experience for all of our players.

And finally, we continue to actively support several exciting M&A possibilities, which will allow us to further broaden our portfolio and leverage our significant capabilities around data driven user acquisition engagement and monetization to continue to drive crop.

To wrap up our team is eager to execute our winning strategy explore new growth opportunities keep improving our games and try to enhance result, we continue to believe but we are in very early stages of a multiyear revenue growth and earnings expansion cycle how type.

And we couldn't be more excited by our future prospects and opportunities.

Now I'll turn the call over to my Cody to walk through the financial information in Marquis Cal Mike. Thanks, Josh.

Quarter generated record revenue of $165.6 million are eight EBITDA increased nearly 80% to $59.6 million. The growth was driven by strong trend throughout our portfolio games the benefit of the stay at home dynamic every operating leverage in our business model.

Net income was up over 86% $48.8 million worth is $26.2 million than the prior year.

And can margin increased 730 basis points to 29.5%.

Sales and marketing expense of $35.1 billion represent a 21.2% of revenue, which was down 260 basis points from our core.

The $35.1 million represents our largest dollar spend in a quarter and what CPR was down and the strong revenue growth you saw in the quarter, we saw significant divergent argue waste that.

We continue to expect some variability in spending as a percentage of revenue from quarter to quarter, and we'll look to continue to leverage our portfolio approach to expand into the games and channel or we see opportunities for the highest returns.

We generated $52 million in cash provided by operating activities increased $34 million or 189% from the prior year.

We ended the quarter with $156.1 billion in cash, which was an increase of $23.5 million from the first quarter.

This includes $26.7 million combined for acquisition of come to play and our annual tax receivable agreement and related payments. The comfortably acquisition closed on June 20 seconds.

At quarter end are available liquidity, including our Undrawn revolver was $306.1 million.

Thank you very strong as often essentially all financial metrics driven by record kids yards in the second quarter, which led to our topline growth far outpacing your market growth rate.

Well positioned from a financial perspective to continue to grow our existing portfolio gains given our large library prove them IP and strong feature roadmaps as well as entering new game categories with the addition of comfortably.

As previously stated we expect are cheap market growth for the back half a year.

We're happy to take your questions.

We will now begin question and answer session.

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This time, we will pause momentarily to assemble our roster.

And our first question comes from Alexia Quadrani of JP Morgan. Please go ahead.

Hi, Thank you I can you provide us a bit more color on how you know revenues tried it within second quarter, and specifically maybe a bit how would you think of influenced by the stay at home owners and and whether you think you know that it's sustainable looking forward.

Certain like a high Electra this is Mike.

So I think the properly tell the story of Q2, you have to go back to Q1 and when we.

Implemented some quality economy and feature enhancements in Q1 to prepare ourselves for what we expected to be broken the back half of your it. Unfortunately basement really good position when when cobot occurred and show we saw the spike start in the back half of marks as we've talked about previously wrong continued into April which mean, we've talked about again being a record month.

Me out Pete outpaced April and really what the peak of the stay at home impact with that with everybody with a lot of free time on our hands. So Joe Macnow softened a little bit relative to me, but it will stay at home owners lifted, but we've remained at a higher baseline relative that they're pretty cold period. So we're confident that the second half of your will be.

Strong because we have a good strong road map and feature releases planned to go over games on really good position.

And I'm talking about going forward from here, it's really hard for us to predict where this will all end up is as you know what would you ever changing situation. So we think we put ourselves in a good chance a good position to succeed.

But it's really hard to get to a warm answer.

Okay, and just to file I came on on that come to play acquisition I guess any color and how you think it potentially expand a player base.

Yeah. So this is Josh Alaska that come to play acquisition were very excited about it immediately got the thing to the bar game and also the fault current market on day one.

Both of those markets are very large out to you as most of the capital gain market the hall.

They are super excited that the team does a great. They cite play amazing and on day, one hit the ground running.

But we are really really excited about the game that they haven't taekwondo right now I'll, let you saw that have had adventure.

They Klondike game with Mehta, with having met all round it off which as I first stuff that kind in the market today and so as we all know into mobile games World a first to market gains have the potential to be very very Bob kraut, sorry about that.

And as I imagine we're in that tax phase right now my assumption would be that we would expect starting to ramp in 2021.

Okay. Thank you very much.

Our next question comes from Schweitzer Curio of RBC capital markets. Please go ahead.

Okay. Thank you I'll, let me try to bleed first on our data that was the girls there at 40% was very strong and.

Love to hear your thoughts on sustainability of that in terms of your ability to continue to monetize.

D.

They players I don't go for bases and also just.

What will that strength, what in any particular product improvement or feature improvement that really drove that girls and then second are you seeing <unk> can you. Please talk about what you've seen in July so far thank you.

Okay and try to this is Josh I think Mike and I are going to kind of AD campaign. This I'll I'll handle the game side of it yes, we thought you know a great increasing arc out during the quarter.

Part of that is the work from home where people are having more days a week I think play, but a large part of it was our shift to focus on live ops monetization.

And be able to engage the player throughout the entire week on almost at the everyday with a Saturday Sunday and because of that we were able to getting more monetization to happen across our entire portfolio.

All seven days, a week, where it normally looks like the weekends are the peak and the weekday doesn't allow basically everything came up we have that Mike mentioned earlier. These Katie I did start to come down a little in June.

For the most part they are all about what their original baseline was inside of Ah Ah pretty called <unk>, which does make us confident that we're going to be able to read came to a higher baseline overall, yeah in terms of july's with making up for more Josh left off we're not prepared to give any numbers for July.

Today other than to say that a you know Josh mentioned, we are seeing a higher baseline done pretty covert area.

Okay. Thank you Josh Thanks, Mike.

Thank you for.

Our next question comes from Matthew cost of Morgan Stanley. Please go ahead.

Hey, guys. Thanks for taking the question or two if I can so obviously a lot of casinos have been closed across the country over over various time period summer reopening now can you talk a little bit about.

Typically you know what impact do you think that might have had on your portfolio maybe in terms of channeling. Some engagement that might have otherwise you know gone you know if youre a in your portfolio and then you back.

Perhaps the reversal of that as we see large scale.

It was opening up across the country and then the second one is just on on the margin trajectory. Obviously, you saw a lot of leverage come through in this quarter. You know a just with your budgets ordinary strengthen in a you know you were engaged in spending that you saw a pair of the friction ratio up you've spoken last year about kind of a 35%.

Margin target Overbid, you read the five year timeframe has that accelerated at all as as a result of the thing.

Huh.

Matthew I think once again, Mike and I Love This kind of tag team here I'll I'll handle the first part of the question I had a great news as really across the country. We saw in heightened yes on all day.

Even in other countries outside the United States and jurisdiction jurisdictions that may not have casinos also saw where there may have been a benefit to casinos being closed we do not believe it was a major mover aren't great corridor.

The good news that we look at is yeah, the ones that get comment from the casino they've now got a chance to play our amazing games that are amazing titles, which gives us a really good chance of retaining them at the world Dolphins backup in the future.

And after your question on EBITDA margins, obviously, we're quite happy that we were able to exceed our three to five your stated goal of 35%. However, as we think about the future. You know you can see as you scale. The revenues, we don't have due to increased cost at the same page <unk>. So that's how we got this expense.

But if you think about the future and the uncertainty around co. Good yeah. We're not sure. How this is going to play out going forward. So for now I do think that we will maintain our same three to five year target of 35%.

Great. Thank you.

Our next question comes from Franco Grata of D.A. Davidson. Please go ahead.

Hi, Good afternoon, guys. Congratulations on the strongest Salton. Thank you for what Im asking your question I was particularly surprised at how little you spend on you right in the quarter given the revenue levels.

I guess, what there is a function up enhancement of the Playstation does your existing player base or simply get better pay out when each dollar of they spent the border.

So yeah. So like I guess first you know we spent the most reimbursements in the quarter imagine helped drive the revenue.

Hi, guys were favorable starting in late March States. There will early into Q2, and then started to harden named youngest late may into June and kind of back to where they were prior to our two of the drop at the beginning of Cobot you know for US Navy often it's kind of Ah you know you look at the percentage of revenue.

You I'm being much lower than our kind of original target that we've talked about in the past its really a math is usually the revenue spike so quickly and we spent two our our same LTV positive of six months or better and maintained our portfolio approach to how we spend a you know across channels and across games and a it didnt.

We're really happy with the result.

Are you able to grow the revenue to record levels and also grow AG, but not a record level. So again really positive and we think we're we've got a good mix rather than trying to chase Chase revenue, we I would that may not be the best spend with our Eway dollar.

Okay.

Thank you for the color and then one more for me.

What are you, saying, it's up so spending habits for your player base not particularly on the new player base that you acquired in the second quarter.

Yeah, that's a great question.

Really if I looked at the individual player the LTV and the LTV curve looks extremely similar to the way I had than the previous year before.

The way I'd say that as they are if a person looked like they were going to be a five dollar person over six months. They still look like today. The major differences in the quarter was we got a higher percentage of payers that came in each day, which allowed us to increase our marketing spend and as Mike said and bring in bar.

[laughter]. Thank you.

Our next question comes from Ryan <unk> of Bank of America. Please go ahead.

Yeah, Hey, good afternoon, guys. Thanks for the question.

[laughter] or do you understand the disconnect between the year for your growth and strong growth in revenue and ARPU versus.

Kind of the unchanged audience in terms of both players and payers I mean, it seems to suggest that a big part of all this is a more leisure time at home sitting idle.

Playing games, which has to be expected, but you know at the end of all this when we take away the idle time.

Oh, what spending patterns would look like it's going really transformed your business in terms of audience and whatnot. So not sure. If you agree with any of that thinking but just wanted to get your thoughts on that and then I have a follow up okay. Thanks, Ryan I think Mike and I may actually piggy back on each other here I was little fat so.

I'd start with yeah, Yeah. When you look at it year over year does look very flat, but actually quarter over quarter. It did grow I didn't really across the entire portfolio in both now and now I'm asking we have progressed over the past year, we have really focused on a convert.

Getting payers income and keeping pairs and our game long term what scouts caused us to expand last looking for the non payer Gal, that's finding more looking for high value Dal death is why why over the course of the last year. You have also seen higher average revenue per.

Monthly pay or increased during that time, because we're getting more and more valuable Gao and our portfolio.

Yeah, I just to add ons I think just said it well I mean, it's really.

Audience did spike back up a in Q2 from prior quarter and they were spending more so those two things are a flywheel that kind of jumped on each other and just kept going forward. So you know obviously our job is to maintain that going forward and try and make these games a part of People's habits and not play every day going forward the but this new.

And audience Yeah. So we think there is some sustainability at some level and you know, but we just don't know what that is yet.

Okay. That's it that's super helpful. And then follow up would be just looking for transformational change here how has the uplift that you seen outside.

The U.S., how is that compared to sort of the uplift you've seen in the U.S., where social casino.

Much more prevalent I mean, do you feel like social casino internationally has really taken hold and can be a much bigger market going forward from here.

And so I think the away so the answer to your question is yes.

Well caveat, we did see the largest amount of girls happen in the U.S.

Has that it's the largest section on social casino players, we didnt see other first for our country increase including the number of installed.

Unfortunately, what we didn't see as their revenue per user spike wet the installs like we saw in the U.S.. So where it is definitely got opportunity for us we may have to change that game in order to optimize their behavior in the future.

Great. Thank you guys.

Our next question comes from Matt Thornton of Suntrust. Please go ahead.

Hey, good afternoon, Josh Mike. Thanks for taking the question maybe two if I could first you talked a little bit about some of the new features and content that launched a one Q into Twoq you just curious if you're able to tease apart maybe.

Quantified what kind of lift you got from some of that some of the new features new content or at least what titles those kind of came through in and then just when we took a step I could be but linear already and kind of cadence to year. We do have a new features or do we expect.

Acceleration in Threeq to Fourq, you are real kind of on an upward trajectory in terms of to the delivery of content was it fairly.

Fairly steady looking forward as I've got one follow up on a good.

Okay, so well actually Mike and I, both kinda attack team once again I'll start with his second question. We have an extremely excited road map coming into the back half of this year across the entire portfolio. The great news that even know during that time, a covet, we'd get to that could be.

Much more of our development on live ops, we were able to keep our teacher team moving during this time. So we plan on doing up already leased up met up and all of the third and fourth quarter. This year.

And I'm. Your first question Mark Kinda quantifying how features a you know you know play out in the games and burst of cold weather impact, it's really hard to break that apart I mean, what we can say as well we launched certain features you know like tournament of champions and Jackpot Party. For example, those features cost players to play the games Warner and do you want to stay in the game for a longer period of time of.

Perhaps come back more often and so we do see some change in behavior. When those features our personal we're confident that that's part of the mix, it's really hard to kind of break that out at this point since I don't I don't think way.

Do that for you here.

Alright fair enough, maybe once a quick follow up if I could obviously apples getting ready to make some changes here too the ability to kind of track in app. Starting in September just curious if you have any thoughts on you know whether that might have picked up an impact on either advertising or or or in your case, you know a user acquisition.

They're given you guys probably advertising in the business, but just any thoughts on a any any potential impact yeah that great question, Matt and you know heres, yeah, when they're dealing with external partners that to get to make choices.

You always have to be on your toes and be able to pivot to whatever new rules and regulations come out.

Whereas this change what caused us to have to.

Internally change how we measure their performance we feel very confident that we are gonna have a solution that will allow us to continue effectively spending on marketing money.

On all platforms likely are today.

Great. Thanks, guys.

Thanks, Matt.

Our next question comes from Bryan Kraft of Deutsche Bank. Please go ahead.

Hey, guys. This is done on for Brian. Thanks for taking the question. My first is on the organizational structure changes I guess would love to get a little bit more color. There. Both in terms of when you think we can start seeing the impact and are there any cost associated with making these changes. Thanks.

Yeah.

Yeah. Thanks, Ben that's a great question on so I've got a tracking move as fast as I can because I want to give you that color on why and then get into the and the timing. So as we make these changes at the end up and 2017 with Jackpot party, but we were able to do but create individual.

All splendid lane inside of a team that would allow that came to focus on multiple area type. One. So we've created a future customer team or not a game team I technology team, which is basically always making the app run faster at a monetization team which is.

Focused on that day to day off the user now this was the first time inside of our company that we had done to all of our other games basically had to choose between one or two of those lanes at a time, we've made the investment.

In early June this year.

To move our next two largest games into this model some of that was the internal moving up people a lot of it it's going to be new hires which will all take time, so where we believe will be building up that teams and starting to get things moving running solidly we probably won't see though.

The impact until 2021 when that came can start releasing features into the game.

And then in terms of cost is this a mid stuff that fits exactly within our trajectory of planned spend so that's about a material impact.

Got it makes sense and then one more on costs really.

So I mean, obviously cost through up this quarter, which is clearly a very strong investment by you guys. I just wanted to get more a more information from you guys on how you think about how much to spend would spending more on marketing you know generate more growth in higher returns. How do you guys think about balancing what the right level it.

Yeah. So today analysts adventurous since day, one on we spend all of our up to a six month ROI on off balance out whatever that he is going to cost certainty individual we want to be breakeven, but then that six month, and we spend 100% up to that.

So it does go up and down mainly based on how CP I am Flushing goes so yeah in a normal year. For example January February Cpis I'll go down were spending a lot more on on the flip side of it December Cpis go up we tend to spend a lot.

So it is very fluid do I didn't get any yeah, I mean, the only other part I would add as we've talked about in the past. We manage this you know as a portfolio across all of our games and so we'll we'll shift and money around based on how certain games are performing and what kind of monetization, we're seeing versus the few pie and that's been consistent.

What we've done from day one.

Thanks for the questions guys.

Thank you again.

Before taking the next questioner we ask that you. Please limit yourself to one question and one follow up.

And the next question will come from Chad Beynon of Macquarie. Please go ahead.

Hi, good afternoon, Thanks for taking my question.

Just wanted to ask a general one on the product roadmap you guys noted some strong success within your portfolio I guess, mainly for gold fish in the quarter is there room for another organic launch or do you think the best path for Ghana organic growth, particularly given what you've been able to achieve from a monitor.

In addition standpoint this quarter is to really do that and just continue to focus on bringing up some of the the the core games that aren't producing a strong metrics as the others. Thanks, yeah. So.

The last part of that we absolutely have some huge opportunities and all of our gain by the way, including Jackpot Party. That's right. Now is like there are people in the industry that has a significant higher ARPDAU than even jackpot party dogs, which does give us a lot of confidence that we have all that room and all seven games now.

Including the come to play games to yeah organically, but it's probably a mixture for US you know some of that's what kind of looked at that come to play acquisition at the inorganic game, where you know we basically the purchase price got us up built game that is intact launch which has a very soon.

Similar process that we wouldn't internally do which is a vast resources into game has like cost that we attack launch and then that's for the future comes it doesn't stop us from doing any new game organic growth. We will continue to look at all the opportunities there and if we felt confident that we have that team.

I can do it and the skill sets for that simple a simple Carlo will definitely be something that we like out on a rough.

Okay makes sense.

And then Mike just on back on the balance sheet. Your cash cash position is extremely strong even after.

Making this a accretive acquisition how should we think about how you're going to use this the strong balance sheet over the next couple of years is it kind of a wait and see approach or just kind of keep keep some dry powder around and analyze other opportunities or is there a rights amount of leverage that you would feel comfortable with leveraging up.

Yeah I think.

We've talked about we're going to continue to use the cash to build out this business rather that means more team members user acquisition or at a or more M&A. You know as we've just talked about we did come to plays on the small acquisition. We continue to look across the size spectrum for more acquisitions. So certainly something that's in play but again, it's all about.

I'll read the game wherever we can to continue to build up in business and turns of leverage that's something we won't discuss at the right time right now, but it's not an issue for us and so I think we know will hold off on giving any kind of targets there.

Okay. Thanks, Congrats on the results guys. Thank you. Thank you Chuck.

Our next question comes from Ryan signal of Craig Hallum Capital Group. Please go ahead.

Good afternoon, guys and thanks for taking my questions.

Thanks right.

You mentioned that focused on keeping pace players and adding the the higher value you use he is it reasonable to assume that.

Do you I may use could be flattish to down going forward, but our doll and conversion increasing more than offsetting kinda that flat to declining overall user base.

Yeah, So I think right and this is Josh so first and foremost we're always going to continue focusing on retention new use our monetization and and also optimizing T.I.s. So we're able to trading new users and as long as we keep focusing on that the potential of growth does happen and.

There are so I don't want to say that we will not grow because theres a very good chance that you do see us for out on the flip side of that we are going to focus continually focused on demonetization or the like off side as we continue to find ways to engage the players more days.

That we had more time during a given day, that's really our secret sauce for getting more monetization opportunities. It by increasing how many times that we think comment and how long they play and it gives us more chance to get them into our monetization, though more often during the week and and I would add.

It onto that the draft also think about our individual games and products and their lifecycle. So you'd think about a game such a solitaire Pat's adventure, but we believe is intact launch certainly it needs to acquire users and will grow its its you know once mowing dal as it matures and so it's a little bit different for somebody games that are further along in the lifecycle.

Great then just on international a.

Relatively small but growth was nearly 100% year over year in the quarter. What was the primary driver, but outsize growth and then do you think there elements of the come to play acquisition that could help accelerate that expansion.

Yeah. So a good that's part of the grouse is actually a lot of ass l. efforts that we get throughout our portfolio to help drive and new installs and people throughout hot Yeah International. We also had a push for hard with our monopoly path, which is our first game.

He is of international servers to if I had a more frictionless experience to our customers and we saw a positive results from that also.

As far as.

Oh, sorry, what was the second part of that question sorry I.

Yes, just done that come to play Oh, they're trying to.

Accelerate on Thursday infrastructure, if there is perfectly clear yeah, well you know the good news here any place that Klondike Solitaire as play it is a huge D.A. you opportunity for us and Klondex solitaire as they've worldwide game. So.

You know we look at that's the opportunity to grow the Dow internationally on this game because it is that generally plate game anywhere.

Great.

Thanks, guys. Good luck.

Thank you.

Our next question will come from drew Crum of Stifel. Please go ahead.

Okay. Thanks, guys. Good afternoon, so Mike just want to get a clarification on your comment for the second half are you expecting to meet or exceed market growth and does that number.

Still in the mid single digits range, and then for Josh just to comment on didn't go showdown and its performance I know, there's a unity conversion earlier in the year and some enhancements introduced into the game as well thanks.

Hi, Andrew So so this is Mike so I'm not the question for the second half as we've always data, we expect to beat market and market you know I've seen some recent updates on market for the full year being roughly 17, 15% to 17%.

So you know that's that's our expectation in terms of we should be able to beat the market and that hasn't changed.

Andrew for Bingo, Yeah. So bingo. It also continued to look forward since that's where you're right as.

As you know, we released the unity version or towards the beginning of this year during that time, we were able to get that technology also adopt and now it to the point, where we believe that technology a Spanish there now we're able to get back to focusing on live ops or new features.

And I caught any changes.

So I, what I would expect over the next to help six nine months as a shift and focus on that Ah that team from technology to giving that customers more reason to play the game soccer.

Got it okay. Thanks, guys.

Thank you.

This concludes our question and answer session I would like to turn the conference back over to Josh Wilson for any closing remarks. Thank.

Thanks for joining us today, we appreciate your support the team anti clay is incredibly excited about our record breaking results in the second quarter and for our future given the strength of our games and the untapped growth opportunities. We have ahead of us.

We are committed to delivering strong results and returns for our shareholders in 2020 M. beyond I look forward to updating you on our continued progress during the next call. Thank you.

The conference has now concluded. Thank you for attending today's presentation and you may now disconnect.