Q3 2021 Applovin Corp Earnings Call

Greetings and welcome to the App loving third quarter 2021 earnings conference call.

At this time all participants are in a listen only mode.

These question and answer session will follow the formal presentation.

If anyone should require operator assistance during the conference. Please press star zero on your telephone keypad as a reminder, this conference is being recorded.

It is now my pleasure to introduce your house, Mr. Raunchy head of Investor Relations and strategic finance for Apple Evan. Thank you Mister G. You may begin.

[noise]. Thank you, Jason and welcome everyone to ask 11th earnings call for the quarter ended September 30th 2021, joining me today to discuss the results are our co founder CEO and chairperson, Adam Pierogi, and our President and Chief Financial Officer, Harold Chen Please.

Please note R. S filings earnings release and shareholder letter discussing our three key performance are available at investors Dot Apple Dot com.

During today's call, we may be making forward looking statements regarding future events and the future financial performance of the company. These statements are based on assumptions and beliefs.

And we assume no obligation to update them actual results may differ materially from the results predicted.

Please review the risk factor.

Factors in our most recently filed Form 10-Q, as well as elsewhere in our SEC filings for further clarification.

We will also be discussing non-GAAP financial measures reconciliations of our gap and non-GAAP financial measures are included in our earnings press release shareholder letter and our 10-Q.

Please be sure to review these reconciliations as a non-GAAP measures are not intended to be a substitute for or superior to our GAAP results.

A reminder, this conference call is being recorded and a replay will be available on our I R website shortly.

With that I will now turn it over to our C E O Adam program.

Thanks, Ryan R headline results and our shareholder letter outlined are strong Q3 performance. So I'm going to keep my comments brief to allow more time for Q&A I want to emphasize three things that really speak to the platform, where you're building an hour differentiated model is driving our success.

First consider how fast we're growing our software platform revenue disagree with 385% year over year to 193 million.

Our growth has been accelerating for four quarters in a row now largely organic.

Re quadrupled their new specs Internet dollar base retention was 255%.

Second consider the massive opportunities still ahead of us.

Is the market absorbed the I D F. A changes most advertising platform saw a modest sequential games, yet our software business group 32 per cent quarter over quarter.

We were growing fast before a platform changes and continued to do so after which is a testament to the strength of our team and our technologies.

Our customers are performance driven that means our growth and our scale is a direct reflection of the strong performance of our integrated platform R.

Are exceptional growth rate is continued proof of the advantages created by our business model and machine learning platform Axon, you may not realize it but axon is only a year old and we've seen rapid acceleration and customer performance and adoption.

That's why we're so excited about our future. We think we have a path to grow our software business for 30 per cent plus year over year for many years to come.

Now, there's clearly a lot of execution ahead, but just imagine what it would take for us to grow like that for the next decade. It would only take adding 20 per cent more respects a year and growing the dollar purse back 10% per year.

Today, we have 280 specs on App discovery, and Max accounting for $587000 per quarter, each of Gab reported software revenue.

The account of specs just grew 18% burst queue to enter dollar per spec just grew 13% bird skew too.

We just brought on a sales force for the first time, we've just begun selling our platform acts on our performance is exceptional for existing clients and we have a huge opportunity to attract new ones. It isn't hard to imagine that's being a $10 billion software business in 10 years and remember all the incremental dollars or almost all margin.

Lastly, consider the potential combination of Max and Mope hub.

Max is already one of the largest and fastest growing attic changes powering around $5 billion in media spend.

A year ago 10000 apps were using Max's a software platform to manage their ad monetization.

As of the end of Q3 that number is almost 30000 and growing rapidly.

We believe are unified platform should surpassed $15 billion and the advertisers spend across all industry bidders entering 2023.

This would make our exchange one of the largest advertising ecosystems in the world.

With that I'll hand, it off to Herald to walk you through our financial details.

Thanks, Adam and thanks to everyone for taking the time to join US today as you can hear from Adam you know, we're we're extremely pleased with the performance of the business in a corner continuing on a strong momentum we saw in the first half of the year and feel like we're very well positioned for growth in the fourth quarter next year and beyond.

In Q3 year over year, we did grow total revenue 90 per cent and EBITA more than doubled year over year, we were able to drive 26% EBITDA margins and have another rule out number that's while under the three digits.

As I've noted our software horse was exceptional and I wanted to highlight a few more details that you'll find that our shareholder letter.

He won't excluding adjust our software platform revenue revenue quadruple versus last year and increased organically by 316% it's.

It's due to the efficacy of our software solutions, that's cleared of the market, adding both.

The number of specs and we added as well as increasing the take rate we are getting from each one of those specs.

Software now represents 27% or overall revenue that is our software grows that drives margins and cash flow that can be reinvested in our business.

On the outside the portfolio grew up 56% year over year, a very solid performance and our maps increase.

Increase quarter over quarter as well.

Well. This is a strong performance from an application standpoint, there's really helps to generate more scaled first party data, which is a key component or accident machine learning engine, which is you know powers our software platform.

Note. This extra casually that we've been generating from software allows us to reinvest in our business across the board, including studio development capacity and investments in Q3, where we invest in behind a robust slate of future titles.

[noise] is that I mentioned, we continue to see positive tailwinds that our business and are excited about are expanding market and strategic and financial position soon entering 22.

As we talked about and in the second quarter, our outlook for software is to reach over $1 billion of revenue and physical twenty-two.

That's over a 60% year over year growth over our 600 million target also offered in the second quarter.

Now on top of that with the with the pending acquisition of no problem.

That would add an incremental 240 of $260 million of revenue run rate exiting 22.

And we'd have very minimal costs at about $40 million as.

That was discussed for waiting for regulatory approval to determine that the timing of the clothes of that transaction.

Before we take your questions I don't know if we're pleased to also announced that Ah Lisa Harvey Dawson has joined our board of Directors. Lisa is currently the Chief legal officer Gusto, a modern HR software platform or deep experience in past rolls across tech and consumer verticals will be highly accretive to our board.

We're also pleased to announce that our board member Cathy's son joined App loving Fulltime. This past summer to help lead in this new initiatives.

Giving her new role in the boards, you'll be stepping down from the board.

She has stepped down from our board this past meeting.

With that I'll turn it over to Ryan to help organize some questions.

We will now begin the question and answer session chassis question you May press stars N. One on your Touchtone phone.

Using the speaker phone please pick up your handset before pressing the keys to withdraw your question. Please press Star then too.

In the interest of time. Please ask one question and answer your question has been answered.

I ask one follow up.

Our first question comes from Youssef Squali from Truest Securities. Please go ahead.

Great. Thank you very much and congrats Guy two quick questions first maybe on the software platform revenues explosive growth how should we think about [noise].

Growth in the fourth quarter and fiscal twenty-two, particularly as your anniversary and the launch of Exxon in September I guess are you horny Ah I guess anniversaried at the the the 193 million run your $8 billion target that you have for next year. It looks pretty reasonable just wondering if there is if you see.

[noise] potential upside to that X Admob of course, and then it looks like half or maybe 40, if the specs and that adds came from adjust which may be speakes's attraction and up selling those clients tier solution. The other half for it where I think in that new which is kind of in line with what you guys didn't.

The prior quarter I think he cute too is that the right interpretation and and the right cadence. We should think of as maybe we look forward or with a cat growth in that segment. Thank you.

Yeah. Thanks, she so maybe I'll I'll start anatomy can add on and taken in reverse order just in terms of the number of specs and we do break it out for you and the shareholder letter or articulate that excluding adjust we had a 280 specs on our App loving software, excluding adjust and then.

Second quarter, we had 237, so that run right. You are right is about four additional 40, excluding adjust now just obviously gives us access to their salesforce their cross selling our solutions and ended up themselves by the way the the adjust product contribution is growing and adding spec count as well that gets us to the total of 449 so.

You know we're excited by that progress we're excited by that Salesforce ultimately, if we're able to closed mopar that obviously gives a lot more.

Bandwidth in terms of team as well as technology to sell as well. So I think that's a good run right for us to continue to execute against.

About 40, plus specs for App loving alone.

It'll start to get more confusing those as we do cross sell it'll be harder to determine was it really just an app loving customer as you know we have over 8000 customers on our platform, but only the 440, neither at the spec level today. So there's a lot of existing customers that may not be viewed as new but will become spec.

Overtime.

And with your question regardless software.

We gave the guidance in the second quarter on software for the first time, we don't intend to update that guidance today, but as Adam said.

Extremely excited by the quarter over quarter growth rate, where he had the 18% increase and 13% increase in price quantity, respectively, and we thank you that momentum will continue as adjust salesforce continues to ramp.

Our technology on our machine learning engine continues to approve.

And with scale machine learning engines also improve so as we add onto the platform.

There is a virtuous cycle to that improvement and then hopefully with Mo pavon twenty-two some time that we'll be able accelerated from there I think our our plan would be to update guidance in general, including talking about our software number.

When we report the fourth quarter numbers early next year.

Got it thanks Harold.

The next question comes from Stephen Jew from Credit Suisse. Please go ahead.

Okay. Thank you so Adam Big picture I think I'd last quarter's shareholder that are you disclose that you helped your clients.

Install about 2 billion apps and the first half of the year. So if we are on track to make that 4 billion installs for all of this year.

On an audience that you have around like 2 million people. That's the two installs per user per year.

Which seems like a lot of white space, where you run into so you know if you've talked a lot about like a dollar a grill with that you can drive, but you know talk about the pieces that are coming together for you to make.

No more efficient use of your Adam questions that you're showing now so we can think about taken to install so maybe 4 billion. This year to maybe 15 16 20 billion over some timeframe or.

Growth is not gonna be as ballroom to them like what can I help you drive to Ohio yourself to replace it all the time.

Thanks, Steven and really this ties back to some of the stuff I was saying in the lead in but we're really excited about the many your outlook on the software business cause the axon has just a year old and it it's really easy to forget that in our business and machine learning platforms get much more precise overtime.

They accumulate more data and more opportunity when we started the platform a year ago. We only had in the hundreds of specs now we have 280 imagine a machine learning software that had won it couldn't personalise or matchmaker very accurately in terms of what it was gonna show a customer well we have 280 customers that are.

Spending a substantial amount with us in getting exceptional performance. So what we're most excited about is bringing more customers online will give the platform the capacity to become more personalized and the offering and then that'll drive a pricing because it will also drive up competition.

We think that can lead to an immense amount of growth over the next decade.

Thank you.

The next question comes from Jim Nolan from.

Macquarie. Please go ahead.

Hi, Thank you very much just like to ask a question on ER No pub place. If you could talk a bit more about the scale benefits that it really brings you. It seems like kind of an obvious thing to say that scale is important, especially on the AD mediation side, but just maybe it did more color on how that really helps you and then it's it's growth rate seems to have been fairly slow coming into your.

Acquisition I wonder how much it can help how much you can help accelerate it or it can help accelerate your growth. Thanks.

Thanks, Dan Mo pub itself as a platform has been in the market for about a decade. They built out a lot of tools. They catered a much broader set of demand.

Tools that that are successful tools for agencies and brands to bring demand into the mobile market place as well as a robust started yesterday he's pretty much every D. S. P and mobile was working with their marketplace. When we launched Max three years ago, We took a different approach and built a lightweight platform there was really automated and pure.

For the mobile game developer and Max's. We've noted has grown immensely it's it's processing around $5 billion of advertising spent a year right now on the platform. What we didn't do was layer on this incremental functionality that would bring even more demand into the ecosystem by bringing Mo pubs supply in will expand the supply.

So you get to a point of late next year. What we think is the target of over $15 billion, a bad spent which makes it one of the largest platforms in the world. When you have a platform that big it attracts demand and will be combining and the unified solution. The Mo pub products that to go attract that demand over and we think once that happens.

A whole platform will accelerate and growth.

Thanks, and it does does it expand you much beyond the gaming vertical into other sectors as well.

100 per cent Mo pub works with both games and non games and a lot of these these are technologies and products that they built for a broader set of demand appeal to non gaming just as much as gaming. So we're gonna go after the entire mobile app ecosystem with this this integration and unified solution.

Great. Thanks, Adam.

The next question comes from Alexia quite Ronnie from J P. Morgan. Please go ahead.

Alright. Thank you Adam I'm wondering if you could just provide an update on how the idea say changes impacted your software and content with this is you know to the corner and then maybe I'll do a follow up on no pub I'm wondering if you could just talk to the integration a bit higher on board their apps onto Max and maybe speak to any risk of Ah client attrition dirt.

No problem. Thanks.

Yeah, I'll I'll go reverse order just so I can remember Max.

In marketplace discussions and talking about a unified Maxwell a platform. The reception has been exceptionally positive both in terms of advertisers and publishers modem itself is part of Twitter wasn't a focus product. It's been a long term product that had a lot a lot of Ah retained customers for many years, but there hasn't been a lot of innovation and product investment.

The way, we do when we're focused on a product that's cord to our business and so as we've spoken to the publishers. There's a lot of excitement about the possibility of bringing the two platforms together and tapping into this immense scale and incremental demand, which we think will create more competition more publisher yield and more growth in the ecosystem for all parties that intersect with it.

On the first question.

The the I D F a impact in the marketplace.

You saw on our numbers and a lot of advertising platforms advertising quarter over quarter was mostly muted in terms of growth. So there is loss in terms of targeting that's possible with I D. F. A going away and publisher Cpm's did diminish on I O S that was offset on the publishing side with games on and.

Reuters demand shifted over there now our platform we have an advantage in the marketplace because of our scaled first party data that fuels, our axon machine learning system and as prices came down and competition lessened our platform stood stronger than others, and that's what allowed us to grow faster than than others.

Paired with the fact that we were already on a really fast growth trajectory because of Exxon quarter over quarter for the last few quarters and that continues to accelerate led to the strong quarter.

Thank you.

The next question comes from Clark lamp and from P. T. I G. Please go ahead.

Hey, guys could evening Uhm I wanted to ask a follow up on IBSA relative to the last question. When when we did some checks intraquarter one of the biggest sort of points of friction that we sort of came up with you and peers were seemingly gaming chair with the idea that.

Developers, who are somewhat limited in terms of budget deployment because of scale and reach the mopar deal seems to go a long way instead of reducing that kind of friction. So I'm curious if we should expect maybe share game to increase or or Compounder, maybe spending to increase their compound from here and then separately on the consumer business I wanted to.

Giving me guys just launched Bermuda adventure as it belka I wanted to see if you could give us an update.

Maybe what the pipeline look looks like over the balance of this year and into next and also whether there are specific games or studios, where you're expecting to deliver new content that might help you you know.

Capture or go out with the active player base. Thanks.

So the first question, obviously to grow a business as quickly as we are it could be the possibility of technological enhancement more customers or share again, we think we've gotten we've executed across all three of those vectors and you almost have to to be able to grow as much as we did a quarter over quarter.

Companies that depend on identity.

Lose more when the I D goes away, especially when that identity is built on third party data our identity and our datasets and models are built on our first party data and so we ended up in a very advantage position. We're also starting from a very low point of penetration with customers when you're talking about a business that's getting as big as a.

Ours as quickly as it is and only having 280 software platform enterprise clients. It leaves a lot of room for growth. So we were already executing on all vectors coming in I D. F. A changes help decrease competition in the market. Our business model has advantages that are gonna be hard for others to overcome and we continue.

To accelerate through it now the market is just greenfield for us and there's gonna be more customers that are gonna come on our platform is as a unified Max and Mow pub supply there are very few opportunities in the world at the scale of 15 billion a year about it's been blowing through one single access point in our exchange will be that.

And so we're really excited about the future prospects of this business.

In terms of games and evergreen titles, we touched on this last quarter, we do invest heavily in games and game development and in particular organic releases of games is gonna be a focus going forward in order to continue to facilitate growth in our software business data is key in first party data is we've touched on is really important so we do.

You want to keep our content fresh.

Over the quarter, we launched three titles they took hefty investment and what we call an evergreen title is one that we think will get to $100 million plus a year revenue run rate and costs multiple millions of dollars to develop we launched three of those in the quarter Ace defender Bermuda farm and jackpot Master slot.

All three we believe over the next year will go on to achieve the 100 million dollar a year run rate and will be titles that will engage players for years to come as we continue to invest in our workforce now 3000, roughly creators around the world, we're really going to invest behind developing our own content organically really you seen them in a high amount.

[noise] frequency and continuing to fuel growth on the upside and more fresh data coming in that we can then go monetize on a highly successful software platform.

Okay.

Our next question comes from David Pang from Stifel. Please go ahead.

Hi, Thanks for the question guys can.

Can you talk about the composition of new enterprise clients did you see an uptick of non gaming class in the corner.

The new enterprise clients in large part and still are a lot of clients that are just spending more on our platform and tipping the threshold.

Got 250 per cent roughly that dollar attention a lot of those customers is Harold touched on 8000 in the system will continue to crossover into the threshold and grow because the solution is just working so well for even the smaller clients our system the.

The adjust cross-sell opportunity and really instead of calling it that I'd like to think of it as our sales force is bringing new customers on board as well and we didn't touch on this but just one data point that that's exciting for us is that nongaming customers quarter over quarter Q3 versus Q2 grew almost 100 per cent it.

It was our fastest growing vertical now we don't break that out formerly yet it's still too small and in the overall Grand scheme of all of our numbers, but it is a huge growth opportunity and as we bring that Mo pubs supply online and and integrated with her Mac supply and create that amount of scale both across gaming and non gaming publishers, we think that non <unk>.

Aiming category is gonna be very compelling. We've also recently put out a couple of case studies the highlight new nongaming customers coming on our platform and seeing a lot of success. So going forward, we expect that to continue to be a growing part of our new specs coming all night.

Hi, Thanks.

The next question comes from Ralph Shaq Arc from William Blair. Please go ahead [laughter].

Good evening. This is Nick labeled on church for Ralph Shattered I I wanted to ask on the Max mediation platform two more recently unity announced H in that bidding offering an iron source, you know announced that acquisition of tap Choy and and obviously, you're Mo pub acquisition has been talked about so yeah I was hoping you could.

Sure your view on the competitive landscape within your mobile AD Tech with with this recent consolidation do you view, the gross and and consolidation of other mediation platforms as as a threat or is it a a net benefit to the ecosystem and how much crossover is there on clients that are using both yours and an iron.

[noise] source in unity is offering.

So clients tend to only use one because these platforms are pretty robust and barely complicated to integrate.

But we're a fan of there being more options for publishers. The more options. There are in the marketplace. Some more innovation. There is both in terms of demand partners and in terms of publishing partners. What we're focused on is delivering the best solution for publishers and we put out a blog actually on the App loving blog yesterday that we linked to off the shareholder letter.

That shows you how fast Max has been growing we launched it two years ago.

Three years, it's grown to be one of the largest platforms in the marketplace and almost 30000 apps have integrated this platform and as I touched on they don't usually use another one at the same time. So you could think of it as almost exclusive integration the mobile clients coming over will take that scale and create a lot more roughly double.

And both in terms of apps audience and dollars spent to the platform and so we're really excited about the possibility of unifying the platforms. The products that we're gonna be able to enable and the gains that publishers and advertisers will see from all of that and so we're very focused on executing our vision going forward.

The next question comes from Brian Novak from Oregon Stanley. Please go ahead.

Hi, guys. It said that for Brian Thanks for taking the questions. It looks like there was about $180 million worth of acquisition in the quarter on the cash flow statement I'm. Just wondering you know was there anything you know what what was the composition of those acquisitions and was there any contribution to three few revenue from from any any business that you brought in and then just.

Secondly, just looking at the looking at the competition of growth. It looks like you know spend for spec in spec. We're both up in three Q, Adam you referred to kind of like a future formula for growth growing at 10% right I know that wasn't guidance, but just how do you think about the drivers of growth on the purse spec basis.

What are people spending more on it. They just use is putting more wallet chair into your product and they're using multiple products. How does that go up over time. Thanks.

Yeah, Let me let me enter the second one a business question and then the Herald they'll touch on the the usage of capital in the quarter. The the driving factors for dollars growing on specs and the platform or really it's it's very simple. It's just the efficiency customers are buying on a platform on a performance basis, there either buying <unk>.

Targeting a specific return on I'd spend or they're buying targeting a cost per subscriber a cost per at first food order cosper for purchase or but it is some function of a goal that they have that they go and target as customers spend more they put more data into our system and our system gets more efficient as it gets more.

Fishing, they Wanna put more dollars into the system. So it just creates a very sticky product that gets them to have a desire to continue to invest more dollars into the plot for them and that's what you saw this quarter with just quarter over quarter. The same clients growing 13% of the dollars that they spend now again, we only have 280 specs.

And the system as we get more competition in the platform if customers are getting the results that they want and competition goes up inevitably they're gonna have the price more aggressively to continue to spend at a more accelerated clip and those two factors combined create a function that creates growth on both numbers and so.

That's what we're very excited about that's been a formula that's fueled outta ecosystems that had become very big overtime consistently as you add competition you create growth and so that's the the inflection point that were we've got the sales force will bring in the Mo pub team as well Super sophisticated team they'll be able to sell the agencies in D. S. P.

<unk> and a lot of App developers are one team will be selling app developers and so we think is more clients come in everything's Gonna go up into the right from here for many years to come.

And Harold can get in touch on the they used to do cash.

Yeah, Thanks, Adam and thanks for the question and look at it overall as a runny nose and emanate side, we continue to be on the look out for the right chic acquisitions to drive long term growth.

We know we're looking for you know we know what assets are worth and so allows us to move quickly with speeding certainty on <unk> on it and then not waste time on things that don't fit our criteria because you know in the gaming side, we've got a fairly comprehensive portfolio now and with a strong first party data. However, we certainly want to augment that as we can and in the corner we did find.

Of that number there was one asset that was about $150 million of an asset.

Purchase that was included another casual game app that fits well into our portfolio. If that was the majority of the spending a quarter, but will continue to be on the hunt for those assets, we're not super focused on adding apps particular, given the elevated pricing and the market, but we'll certainly be looking and then on the side.

Her side as you can tell them, particularly with the Mojave deal, we're looking for the right strategic opportunities there as well.

Again, if you have a question. Please press star then one or.

Our next question is from Martin Yang from Oppenheimer and company. Please go ahead.

Good afternoon, Adam and Harold.

A follow up question on the previous <unk> can you maybe talk about you know how your scaled first party data that are collected on the platform can inform app development and the type of studios you choose to partner with.

So are scaled first party data is is much more important to fuel the growth of our software side. It helps inform the models on what the users are interested in and what other users that are similar to them are interested in and that's really what is fueling the success on the software side.

The first part of your data doesn't inform what we do on the App development side actually for years are gone up development was to go partner with studios across every genre of mobile gaming that we believe we can grow and many of these studios were early in their growth cycle and so we went out partnered with them help facility.

<unk>, that's scaled data across an interest category to us that data then feeds into our software engine and that's fueled a lot of the growth. We now are at a point where with.

Numerous studios almost 20 around the world and 3000 creators we've got expertise across every major mobile gaming category. So we're very excited about where we're at and now we're investing into taking the current games and continuing to expand them and creating new games and organically releasing them into the market and so long as we X.

Cute on that will continue to have scaled data feeding into our engine that were monetizing exceptionally well.

Got it. Thanks on the second question is you know whether or not there's any sort of synergy between low pulse and adjust that they will help you to approach nongaming customers or are they just separate touch points.

To work with.

Getting customers.

It it gives us access to more potential clients. Both for just an app discovery and obviously the unified mediation platform. The mobile team is also very season, so they'll integrate with our team the adjust salesforce will integrate but will create a unified offering both in terms of publisher sales.

An advertiser sales and we think just reach and the access of market, leading solutions across attribution growth and discovery and monetization will let US go get in front of every single major company in the space, which should facilitate more sales.

Got it thank you very much.

Our last question comes from Clark lamp and from P. T. I T. Please go ahead.

Thanks for taking the follow up.

I've got a hunch that you guys are gonna punters question into the stratosphere, but you dropped a bit of a bad problem with Kathy Sun coming on board. The Florida help you explore some new initiatives for the business I'm. Just curious if you might be willing to give us a general sense for what he's spending your time on now or maybe ask differently.

Could you remind us what you guys think are the most attractive adjacent opportunities for the business today.

[laughter] well, we'll get we'll get there soon Clark better at right now what well you should think about is what are the assets that we have in place and what else can we do with them because that's what guides are thought around new initiatives and we launched axon machine learning edge in a year ago, and you've seen really dramatic growth on software we want.

From 200, a year ago to talking about 600, plus this year to over 1 billion next year and accelerating and that's offer is working really well in a highly competitive out ecosystem.

What else can that type of machine learning be applied to is something we will always ask ourselves and that can guide us.

Another way, we think about it as we go out and monetize mobile App inventory right now predominantly using full screen video ads.

What or where or other places where the consumers that we have data on and this first party data that we can go find those consumers and serve them video ads using our software engine to create scale and grow. So that's another way to think about it and what we think about and then the third and most important maybe with our audience.

It is around 200 million monthly octaves, playing our mobile games. We've got 3000 game developers building content for a platform the audience of her own network isn't the $2 billion to 2 billion users a month. So it's a massively scaled the audience a mobile game players and then mobile game developers both building game.

For us in third party clients of ours if.

If we can use that reach that audience those games.

To then go after some of the newer opportunities in terms of usage and game play and ownership to the consumer and things like better versed in blockchain that could also be interesting and so we think about all of these things. We think we've got very exciting assets in place to really go after these opportunities and Oh.

The next couple of years, we hope you'll see us execute on many of the above.

I appreciate it thanks.

There are no more questions in the queue. The conference has now concluded thank.

Thank you for attending today's presentation you may now disconnect.

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