Q1 2022 Super League Gaming, Inc. Earnings Call

May 16, 2022

[music].

Good afternoon, everyone and thank you for participating in today's conference call.

Scott.

Gaming financial results for the first quarter.

And then ended March 31.

Joining us today are.

President and CEO .

And GSO.

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

Before we go further please.

Note that the company's safe Harbor statement.

The meaning of the private.

The treaty.

Reform Act of 90 95.

The statement provides important cautions regarding forward looking.

The company's remarks during todays conference call will include forward looking statements.

These statements along with other information presented that does not reflect historical facts.

Are subject to a number of risks and answering.

Actual results may differ materially from those implied by these forward looking statements.

Please refer to the company's recent earnings release and to the company's reports.

Filed with the Securities and Exchange Commission for more information about.

Risks and uncertainties that could cause actual results to differ.

I would like to remind everyone that this call will be available through eight P. M. Eastern time on May 23.

Yes.

Starting at eight PM Eastern time Tonight.

The webcast replay will also be available via the link provided in today's press release.

On the company's website at Www Dot two dot com.

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

Thank you Ashley and good afternoon to everyone.

Thank you all for joining US today, we have a lot of great news to report as I have mentioned I enjoyed the exercise of writing each quarter's earnings script as it provides a moment to pause and reflect on what we've accomplished and equally ask ourselves how we can supercharge our performance delivery going forward. It's our quarterly report card so let's jump in.

To start we delivered $3 $8 million in revenue in Q1 higher than consensus expectations, and a new record high for first quarter and higher than our internal plan or.

Our strong results both financially and operationally has set a solid foundation for the rest of 2022 as we continue to strengthen our leading position and connecting advertisers to young gaming audiences through our universe of meta versus games and content channels.

It bears repeating that the meta versus not something we recently pivoted towards we've been in the gaming <unk> for eight years, it's where we live and where we have built success herself and for brands and our partner creators.

81% of Gen Z say gaming as their favorite activity.

This is where advertisers need to be because this is where kids are their gaming.

With meta versus gains existing for over a decade. It is not a theoretical concept in fact this category as a category is projected to be a 413 billion dollar industry by 2024 equally.

Equally compelling global advertising spend categorized as in game advertising is projected to be valued at $56 billion by 2024.

This is our addressable market and its massive and growing today.

Today, our gaming fans generate close to 1 billion monthly impressions.

Driven by over 70 million monthly active players we reach in our meta versus gaming network.

Operating at scale across the two biggest global meta versus game platforms roadblocks and minecraft.

As we've mentioned on other calls these <unk> game platforms are places for creation competition community and Commerce and this is where Gen Z list, where they play.

The generation living and authentically digital lifestyle, they move fluidly between the digital and physical worlds in their daily lives a cohesive integration of their online and offline personas Gen.

Gen Z seeks to express their true selves across both worlds and want the brands they support to be aligned with their values and interest.

Net of our specific strategy is no longer optional for brands and has become a requirement for customer acquisition retention and loyalty.

<unk> creates a space where gamers can be anything they want to be and <unk> brands and the winning brands right now are creating organic ways to play where their target audience plays.

So before getting into the updates on our business all mentioned some of the financial highlights for the first quarter of 2022.

As stated at the start we reported $3 8 million in Q1 revenue up 378% year over year.

Our three primary revenue streams, each increased significantly with advertising and sponsorships, making up 49% of total revenue in Q1.

Gross margin for Q1 was 49% a four point increase over Q4 2021 and in line with the target range of a blended 45% to 50%.

As of March 31, 2022, we had $7 8 million of cash on hand, and earlier today, we closed on an additional $4 million in financing that together with earlier announced financing facilities provide us with adequate capital to deliver on our 2022 growth strategy.

Now for some business updates as we mentioned in our last call 2021 was a transformative year for Super League.

In the first quarter of this year, we completed the integration of last year's acquisitions and strengthened our <unk> strategy.

We are now one Super League and this is how we present ourselves to brands the Super League Universe as we call. It as the launch pad for brands in the gaming Metaverse, and where the rocket ship to take them there and guarantee their success. We can say this incredibly we know what it takes to win in the meta versus because this is where we live.

Our universe of games and supporting content network offers a 360 degree solution a unique entry point for our brand partners like Twitch, MTV and Samsung to name a few.

So, let's first talk about how it works what makes it special.

First we ignite a brand by connecting them to our massive player communities and our own and our partners existing game environment with compelling and gameplay experiences.

And we can go a step further to create custom game worlds dedicated to the brand as well.

Next we augment the game play by extending the brand into our wider network of game worlds through our meta versus ad products.

<unk> and game media, including dynamic Billboards and <unk> interactive characters.

This is where our relationship with our game developers is so powerful through our suite of developer tools, we empower our creative partners to scale monetize and optimize their game franchises and in doing so further leverage their added reach for our brands.

But we don't stop there through our content studio and patented scalable virtual production tools, we extract and shape contagious and game content from these proprietary game experiences.

Premium livestream video on demand and social content for the brands and our own social media channels further amplified by our accessible pool of gaming Influencers delivery maximum campaign objectives, while creating a greater revenue opportunity for ourselves and for our creator partners.

The objective for advertisers, what we can deliver right now is multi dimensional and massive gamer world engagement.

So let's look at a real time example, our recent activation with Mtv's wilden out a popular VH one hip hop in and prop show brought all of these elements to bear and.

In celebration of their 300 episode, we partnered with their parent Paramount and launched a three week long live med averse game experiment experience reinventing the popular freestyle show within our owned and operated property mind Hutton.

Players, we're able to freestyle rap interact with the host Nick cannon and try out new gaming experiences.

And viewers could enjoy the entertainment through our live stream broadcast for new viewers and opportunity to get introduced to the show and for existing viewers a chance to engage with one of their favorite shows in a whole new way through a digital immersive world.

A sample of some of the campaign stats from this integrated program.

$4 million, the crossover of our mind HUD audience to wild and outs target demographic.

$1 5 million the number of weekly posts on social media and digital engagement.

$618 million the total readership across nine key media outlets and 770000, the total number of tick tock highlight video views.

So as you can see Super league's robust product and service suite offers full solutions that deliver optimal objectives meta versus game creation and integration and existing <unk> games.

Impelling livestream video on demand and social content.

<unk> with Influencer marketing for further amplifications, all inside of our Coppa compliant kids safe certified universe.

Now before I move into our sales pipeline health and forward revenues I would be remiss to not comment on some other exciting business developments in Q1.

We expanded our innovative AD inventory, introducing a new three D. Nonplaying character unit and partnered with Universal Dreamworks animation to showcase this immersive three D AD product for the first time to promote their feature film. The bad guys. We created three D versions of the five main characters that would come to life in front of a players eyes.

When the player pass by.

Pre program dialog boxes initiated an exciting and fun com.

<unk>, so gamers could start to bond with these colorful new characters ahead of the film's release.

And just the first four days of the campaign the collection of AD units, which included Billboards animated gifts and <unk> generated more than 10 million impressions of at least 10 seconds in duration and were seen by more than $2 2 million unique players.

More significantly player self selected to interact with the three D characters for more than 42 days of total chat time again, that's just over a four day campaign.

Yielding a 62% engagement rate.

This rate is substantially greater than the average tictoc engagement rates of sub 20%, which is the highest among social media platforms.

In addition, 79% of players responded yes, when asked by the three D characters, if they intended to head to the movie theaters to see the newly renamed released movie.

This is worth of pods.

Imagine how powerful this is for an advertiser.

To get that real time sentiment feedback ahead of a new product or entertainment release.

Imagine Hasbro or Mattel, receiving such a clear by signal ahead of a new toy launch or even a place to safely test concepts before the big R&D dollars have been spent.

And in the case of the bad guys. These are five new characters brand, new IP that Paramount has aspirations to monetize well beyond film young.

Young gamers have an interest in engaging not just with beloved known IP, but even new intellectual property. They have never seen before it used to be that the studio saw the game as the extension of an entertainment franchise the afterthought.

With gaming being Gen Z preferred form of entertainment. It is now the place to start where you launch.

Another significant business highlight in the announcement of our network of global selling partners, including our exciting partnership with IHOP media.

These are two facets that are very specific to this relationship with IHOP first Super League will provide our meta versus expertise to create I heartland virtual spaces and other fan experiences leveraging <unk> owned and operated musical concert properties and talent.

This is a strategic move by the audio centric media company to get into the game leveraging their IP into the gaming meta versus to reach new audiences and new sources of monetization.

Additionally, IHOP joins our fleet of network sales partners unleashing their 1500 strong domestic sales force on our premium gaming centric inventory to complement their audio AD products and opportunity for them to sell on our behalf to the advertisers with whom they already have deep established relationships.

We now have a bench of more than 10 network sales partners globally, covering most of our reach and have built the economics to protect our premium quality cpm's and resulting strong margin profile.

So this is a good segue to our topline growth in overall sales pipeline health.

I mentioned on our last call that we have a great problem on our hands, we have an exploding amount of premium inventory and couldnt, possibly get it into the advertisers' hands fast enough on our own. It is about education and awareness that these types of innovative AD products exist and the special experience as well to deliver outstanding performance results.

So our network sales partner strategy is vital to augment the efforts of our direct sales team and get our covenant inventory into in front of as many advertisers as we can to leave as little uncapped shared revenue as we can on the table.

And there are other trend lines that give us confidence and the step change your revenue growth.

First we continue to see overall deal size of our pursuits growing.

Medium pipeline deal size is over $200000.

And as I mentioned in March we are chasing several opportunities north of $1 million in value. In fact, we landed our first inking a deal with Samsung to support the delivery of Samsung Superstar Galaxy, a five week limited events, culminating in a finale concert experience.

With Charlie CX Super League assisted in building out the gameplay experience driving audience through media and Influencer reach and will be broadcasting partner to deliver weekly shows and the finale concert to Twitch.

Another sales how factor repeat buying in Q1, we saw 90% repeat buyers amazing really advertisers are satisfied they are coming back to put more AD dollars to work with us and with bigger bite sizes.

And yet the diversity of who we serve is growing as well in the first quarter. We saw brands like Oshkosh, Tyson foods, Nike tapping into our AD products to deliver their campaign goals.

Finally, we are seeing improved sales force efficiency as well for more revenue per sales person to higher win rates, our growing direct sales team is coming up the curve with greater sell through without compromising our premium 10% to $25 CPM and 40% to 50% targeted margin range.

So, let's look forward a bit as I mentioned at the start we had our best first quarter and beat analysts' estimates and the momentum is carrying over into Q2. So.

So far we have underpinned over $4 million in Q2 revenue and we have a good amount of time left in the quarter.

And as we know the first half of the year is our lower revenue period due to the seasonality in advertising spend.

So I'm happy to say, regardless of the economic conditions impacting so many industries and companies out there that we expect another record quarter in Q2, and we reaffirm our expectation for 2020 to annual revenue in the range of $20 million to $22 million.

At this point I will turn the call over to our CFO Clayton, who will review our first quarter financial results after which I'll come on with back on with some closing remarks Clayton.

Thank you Anne and good afternoon, everyone.

Jumping right into our strong first quarter of 2022 results.

As summarized in our earnings release filed with the filed this afternoon first quarter of 2022 revenues were $3 8 million compared to 788000, so the first quarter of 2021.

The 378% increase was driven by strong increases for all three of our primary revenue streams, including advertising and sponsorships content sales and direct to consumer revenues.

Advertising and sponsorship revenues, which includes direct sales advertising and brand sponsorships as well as programmatic display and video advertising revenues increased 328% to $1 9 million comprised of enterprise approximately 49% of revenues for the first quarter of 2020.

Two compared to 55% in the first quarter of 2021.

The increase in revenues is primarily due to a 189% increase in our direct sales advertising revenue generating customers driven by our growing premium in game and in stream advertising inventory and a 48% increase in the average revenue per customer.

Content related revenues increased 384% over the prior year quarter to $1 4 million and accounted for approximately 37% of revenue for the first quarter of 2022 compared to 37% of revenues in the prior year quarter.

Content sales revenue is generated in connection with our curation and distribution of E Sports and entertainment content for our own network of digital channels, and our media and entertainment partner channel.

This includes the syndication and licensing of original programming content user generated content, including online gameplay and gameplay highlights technology and the creation of content for third parties utilizing our content studio remote production in broadcast technology.

The increase in content revenues for the first quarter of 2022 was primarily driven by an increase in our livestream remote production broadcast gameplay and technology development related content sales activities, including broadcast and gameplay projects with Twitch Interactive an aftershock media group.

Direct to consumer revenues, which consist of sales of digital goods and subscriptions across our owned and operated mine type digital property and our mind Bill and pixel Paradise official Microsoft Minecraft servers rose, 692% to 507000 and accounted for approximately 13 <unk>.

A set of revenues for the first quarter of 2022 and 8% in the prior year quarter.

First quarter of 2022 cost of revenues increased to $1 9 million compared to 342000 in the comparable prior year quarter.

The increase was primarily due to the significant increase in related revenues in the first quarter of 2022 compared to the prior year quarter.

As a percent of revenue gross profit in the first quarter of 2022 was 49, 3% compared to 56, 6% in the prior year quarter.

This reflects a four point or 10% improvement versus Q4 2021, as the company absorbed and further optimizes lower margin advertising inventory as a result of acquisitions in 2021.

The company expects gross margin to hold in the target range of 45% to 50% in future periods reflective of the company's premium advertising model.

Moving on to Opex total operating expenses in the first quarter of 2022 were $9 8 million compared to $5 $1 million in the comparable prior year quarter.

Increase was primarily due to an increase in personnel costs associated with our 2021 acquisitions.

And noncash amortization of intangible assets acquired in connection with our 2021 acquisitions.

A lesser extent the increase also includes higher cloud services and other technology platform costs, reflecting the expansion of activities in connection with our fiscal year 2021 acquisitions and the continued surgeon engagement across our digital properties.

Noncash amortization of intangible assets for the first quarter of 2022 totaled $1 3 million compared to 242000 in the first quarter of 2021.

In addition, noncash stock compensation charges for the first quarter of 2022 totaled $1 1 million compared to 411000 in the first quarter of 2021.

On a GAAP basis, which includes the impact of noncash charges and credits net loss in the first quarter of 2022 was $7 9 million or <unk> 21 per share compared to a net loss of $4 6 million or <unk> 23 per share in the comparable prior year quarter.

Excluding noncash stock compensation charges, and noncash amortization of intangibles, our pro forma net loss for the first quarter of 2022 was $5 5 million or <unk> 15 per share compared to $4 million or 26 per share in the comparable prior year quarter.

The change primarily reflects the significant increase in top line revenues and gross profit and the expense related relationships and fluctuations described earlier.

The weighted average diluted share count for the first quarter of 2022 was $36 8 million compared to $19 8 million for the first quarter of 2021.

Please note that our earnings release contains a more detailed description of our calculation of pro forma net loss as well as a reconciliation of pro forma net loss with the most directly comparable financial measures prepared in accordance with U S. GAAP.

Looking at the balance sheet as of March 31, 2022, we reported $7 8 million in cash $10 7 million of working capital in total shareholders' equity of $83 8 million.

Consistent with our outlook discussed during our Q4 2021 earnings call. Our average monthly net cash burn rate for 2022 based on plan is expected to be in the $1 $7 million range as we continue to focus on and control costs in connection with our commitment to reducing costs and improving the bottom line.

As previously disclosed to strengthen our liquidity in March of this year, we entered into an equity line of credit facility with too many stone capital.

Where we have the right, but not the obligation to sell up to seven 3 million shares of common stock subject to the terms of the underlying agreement as previously filed with the SEC.

In addition today.

<unk> entered into a securities purchase agreement with certain institutional investors, providing for the sale and issuance of a series of convertible notes in the aggregate original principal amount of $4 3 billion of which 8% represents an original issue discount.

The convertible notes will accrue interest at a guaranteed annual rate of 9% per annum mature 12 months from the date of issuance and are convertible at the option of the investors into the Companys common stock at a conversion price of $4 subject to the terms of the underlying agreement.

We believe that today's closing of an additional $4 million in financing combined with the equity line of credit an earlier announced financing facilities provides the company with the ability to deliver against our 2022 growth strategy.

This concludes my prepared remarks, thank you for joining us today I will turn the call back over to Ann for some closing remarks.

Thanks Clayton.

To recap the strong operating momentum of the first quarter is create a solid foundation for achieving our growth expectations for 2022, we're laser focused on execution to monetize our sought after ad inventory.

And given the unusually tough market environment facing public companies, we're committed to not just delivering the top line, but also identifying further cost leavers to narrow our operating losses faster.

But again I must reiterate despite this challenging economic environment. We are on plan for a breakout year of growth. We are just taking advertisers into the meta versus we're taking you are committed investors there as well.

And as you will hear me say again and again, we are well positioned to take you there because its where we live where we've already established a massive audience now with massive growth ahead, and so with that Clayton and I are happy to take your questions Ashley.

Thank you Andrew.

I'd like to ask a question at this time.

Star one on your telephone again that is star one to ask a question.

And our first question will come from Scott Buck with H C. Wainwright. Please begin.

Hi, Good afternoon, guys. Thank you for taking my questions.

Got.

It looks like you have another quarter.

A nice step forward on the content revenue.

Should we view this as the new run rate or are there some kind of one off items in there that made this quarter with particularly strong.

Yeah definitely what we love about both our content and technology revenue stream as well as our direct to consumer stream is they offer a nice smoothing out of the inevitable seasonality with AD revenues and we did have some repeat business specifically with Twitch, who has been a long serving content partner.

In the back half of last year coming through in <unk>. We continue expect to continue to see that come through and as well, we booked a pretty significant technology licensing and piece of work that we had done for Verizon, which was a one off client and so those are the two kind of primary.

Kind of cuts.

Customers that youre seeing there twitches recurring Verizon is not.

Okay. That's very helpful. In and then that leads me to.

Gross profit margin.

Is that mix driven in the quarter I mean, I know you guys reiterated the 45% to 50% on the year, but just curious again, we had a nice really nice step forward in the quarter I just wanted to make sure I'm thinking about it the right way for the remainder of the year. Yeah. I mean, the nice thing is is that we target that type of margin range across all three of our revenue.

Streams and so we don't have one revenue stream necessarily dragging down the others from a blended perspective.

What we've talked about on prior calls is that last year, we were.

Hitting north of 50% and the early part of the year and then as we got through the acquisitions. It just took us a little bit of time to absorb.

The new AD inventory through the acquisitions and to reset those rate cards. So that we could walk those AD products up to that same kind of 45% to 50% range and so I think investors should be really happy to see that we identified that opportunity to walk it up since <unk> and we've done it.

About four points and <unk> and then another four points here in <unk>. So now we're heading that nice strike range I do caution that the reason, we say 45 to 50 is really to your question. These things do fluctuate, sometimes we're going to chase bigger deals and maybe we're willing to.

To take on a little bit lower of a margin just because it's a big deal maybe it's an opportunity to kind of create a tentpole event with a brand we've been chasing for some time, because we know theres a lot of follow on afterwards, but again the objective of the company across all three revenue streams is staying in that 45% to 50% range.

Great. That's very helpful. And then last one for me I'm just curious on the additional capital are there specific initiatives, you're looking at to use that money for or is it more broadly.

Just working capital.

Turning to run and grow the business.

It's really both because if you think about it I mean, we took on a pretty bold goal to more than double our revenue relative to last year and so this is opportunities for us to deliver that plan and also to opportunistically grow beyond that whether it be organic or organic so we've done a lot of good work at it.

Take for us to at a minimum hit the numbers, we promise and also what would it take for us to hit it out of the park beyond that and we feel that right now between the $4 million and the other earlier announced financing facilities that we have available to access to at our own discretion. We are in great shape from a capital perspective.

Great. That's helpful. I appreciate the time guys. Thank you yes. Thank you.

Once again, if you would like to ask a question. Please press star one on your telephone.

Your next question comes from Jack Vander <unk>.

Max.

Okay, Great high end <unk>.

Congrats on the solid results and reiterated strong guidance.

I'm, just sort of a follow up.

Understood.

I'm juggling half a dozen earnings calls Tonight, So just to be crystal clear on the capital and liquidity situation. So you finished the quarter was $7 8 million in cash and no debt, let's say you announced a $4 3 million convertible note 9% interest.

It sounds like Youre confident that gives you enough runway to execute your business growth objectives for 2022, but I just wanted to be absolutely sure of is that do I understand that correctly with this this convertible note.

2002.

Well I'll steal fueling all of the growth for next.

Yes, I mean, the good news for US is in the second half of the year is when we deliver more of our revenues right and we don't really see our costs going up exponentially relative to those revenues, we have invested in the team and the infrastructure that we need to deliver that full year plan and so the good news is as we start to deliver that heavier weight of revenues in the back.

Half of the year that certainly lessons.

The net burn and lessens the kind of cash we have to put out to chase those revenues.

But what I would say is keep in mind, we do have other opportunities to pull in capital Opportunistically, if our stock moves in the right direction right. So we do have access to the E block that we announced a couple of months ago as well as an ATM and so.

We're just going to really try to smartly, but work with the $4 million the ending cash balance we talked about March the 4 million that we brought in today.

<unk> focus on that exceptional back half performance that we expect to be able to deliver and then if needed if an opportunity arises we can tap into those facilities again just to take advantage of any opportunistic runs that could happen as we wait for these public markets to kind of come back around.

Okay Crystal clear I appreciate the color there.

And then I just want to switch gears to a question that I wanted to highlight more than anything.

Topic.

And believe you said you had 90% of your revenue from repeat buyers and recently you Wonder first $1 million deal plus star deal with Samsung, which is which is excellent to hear.

You said youre chasing several other $1 million deals so here's a couple of questions here.

The Samsung deal was that one in the first quarter or the second quarter and then can you provide more color on the several other $1 billion deals and when those might close are those incrementals in guidance or the baked into guidance.

That's all thank you, yes, and I'll, probably read another kind of question into end to where you started which is 90% of the deals won the absolute number one deals not the dollars are repeats so that could be a game publisher, who may be launched a game with us in <unk>, maybe put a couple of hundred K to work.

With us in <unk> and now as Theyre doing follow on campaigns Theyre coming back and maybe it's a smaller amount it could be $50 75, K, but its extensions of the campaigns. So we count that as a repeat buyer.

So keep in mind, we could be seeing our deal sizes continue to grow and still see that we have both more people buying from US and also at the same time still have those really strong repeat percentages as well because a lot of that has to do with the stage they're at in the campaign as far as your question.

Samsung that is a campaign that launched on Friday, the 13th unmet in May So just last week.

And as I mentioned, that's a five week run so that will be recognizable.

Revenue for <unk>.

That said, it's a deal that when we spoke on the last earnings call. It was in pursuit. So when I spoke about.

The seven figure deals we were chasing that was certainly one that we were actively in conversations around what I do think is an interesting though trend line is that sometimes in the early days for a six seven figure deals.

It was really almost a business development activity. Some of these could take months to kind of curate to even get them into six figure range because they were they weren't really coming from the agency or the AD side of the house of the campaign side of the house they were more coming from kind of the business development side Corporately and what's shifted now is because we have.

So many different exciting AD products and services to put in front of advertisers, it's pretty consistent that we're seeing rfps coming over the wall and there are 400, 500, K deals and we have more than enough and that kind of 360 suite of offers to say, we're going to build your meta versus game world.

By the way, we're going to augment it with great media products and other med averse games, we're going to extract content and we're going to give you a compelling content for live streaming social we're going to work with influencers to make the deal even bigger and richer to deliver those campaign goals.

The Rfps were always out there that were bigger. It's the differences is now we have a really differentiated suite and diverse suite of products that we can chase them and we can deliver the whole program solely as one Super League and that's the reason the kind of game has changed and just to close.

On that question I'd say.

Usually if we're if we're chasing a deal thats north of $1 million, it's tapping into all of that capability or at least kind of three out of four of those buckets. So the buckets again are we're building a game worlds for you either inside one of our existing games or we're building new dedicated game. The second bucket is.

We are then blasting, giving you further coverage by dropping your IP into more games beyond the custom when we built for you through those those innovative AD products I talked about the dynamic billboards to three D characters.

The third thing. We're doing is you are paying us to create really compelling content extract in game content out because you want more than just players you want viewers and excitement to be built around whatever. This this campaign is you're driving and then the fourth bucket is always kind of the icing on the cake is we work with our.

Our accessible pool of talent. These these influencers to then grab more dollars.

The shelf of the campaign and further augment that viewership in that REIT, because that really creates the virtuous circle that makes us a single solution point for the advertiser.

The more we can shout out with a megaphone and let viewers see this exciting real time game content, we're driving them back into the funnel to check out those game worlds and become players as well those players generate content content, we extract out shout it out and the megaphone and drive them back and Thats why when I talk.

About things like we can guarantee and advertisers' success, it's because we control the full loop, we kind of control the full life for sure. The game place compelling the content is compelling and the both players and viewers are engaged and coming back for more.

Well fantastic color, there and sounds like there's a lot of good things happening.

The update and I'll hop back in the queue.

Yeah.

At this time. This concludes our question and answer session I would now like to turn the call back over to MS. Chen for closing remarks.

Thank you Ashley well, we'd like to thank everyone for listening to today's call Clayton and I will be at the Needham Tech conferences Wednesday, with a fireside chat presentation scheduled for 130 P M Eastern time.

Also, albeit the HC Wainwright Global investment conference in Miami on May 25th we look forward to speaking with you again, when we report our second quarter results in August please reach out to our Investor Relations team at Gateway. If you have any other questions and with that we wish you a great evening.

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

You may disconnect your lines at this time, thank you for your patience.

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Good afternoon, everyone and thank you for participating in today's conference call to discuss.

Gaming financial results for the first quarter ended.

Ended March 31.

Joining us today are Super league's president and CEO and Henk.

And GSO.

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

Before we go further.

Note that the company's safe Harbor statement within the meaning.

The Treaty Litigation Reform Act of 90 95.

The statement provides important cautions regarding forward looking statements.

The company's remarks during todays conference call will include forward looking statements.

These statements along with other information.

That does not reflect historical facts.

Are subject to a number of risks and uncertainties.

Actual results may differ materially from those implied by these forward looking statements.

Please refer to the company's recent history.

Earnings release and to the company's reports.

Filed with the Securities and Exchange Commission for more information about risks.

Risks and uncertainties that may cause actual results to differ.

I would like to remind everyone that this call will be available.

H P M Eastern time on May 23.

Yes.

Starting at <unk> PM Eastern time Tonight.

Webcast replay will also be available via the link provided in today's press release.

On the company's website at Www Dot Dot com.

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

Ann.

Thank you Ashley and good afternoon to everyone.

Thank you all for joining US today, we have a lot of great news to report as I have mentioned I enjoy the exercise of writing each quarter's earnings script as it provides a moment to pause and reflect on what we've accomplished and equally ask ourselves how we can supercharge our performance delivery going forward. It's our quarterly report card so let's jump in.

To start we delivered $3 8 million in revenue in Q1 higher than consensus expectations and a new record high for our first quarter.

And higher than our internal plan, our strong results both financially and operationally has set a solid foundation for the rest of 2022 as we continue to strengthen our leading position and connecting advertisers to young gaming audiences through our universe of meta versus games and content channels.

It bears repeating that the meta versus not something we recently pivoted towards we've been in the gaming <unk> for eight years, it's where we live and where we have built successful ourselves <unk>.

And for brands and our partner creators.

81% of Gen Z say gaming as their favorite activity.

This is where advertisers need to be because this is where kids are their gaming.

With meta versus gains existing for over a decade, it's not a theoretical concept in fact as category as a category is projected to be a 413 billion dollar industry by 2024.

Equally compelling global advertising spend categorized as in game advertising is projected to be valued at $56 billion by 2024.

This is our addressable market and its massive and growing today.

Today, our gaming fans generate close to 1 billion monthly impressions.

Driven by over 70 million monthly active players we reach in our meta versus gaming network.

Operating at scale across the two biggest global meta versus game platforms roadblocks and minecraft.

As we've mentioned on other calls these metaphors game platforms are places for creation competition community and Commerce and this is where Gen Z list, where they play.