Q2 2024 Super League Enterprise Inc Earnings Call

Speaker Change: [music].

Greetings and welcome to the Super League.

Unknown Executive: Greetings and welcome to the Super League second quarter 2024 conference call. Please note this conference is being recorded. Before we begin, I'd like to caution listeners that comments made by management during this call may include forward-looking statements within the meaning of applicable securities laws. These statements involve material risks and uncertainties, and actual results could differ from those projected in any forward-looking statements due to numerous factors.

Unknown Executive: For a description of these risks and uncertainties, please see Super League's financial statements and MD&A for the second quarter of 2024 and June 30, 2024, available on EDGAR. Important qualifications regarding forward-looking statements were also contained in Super League's earnings release distributed earlier this afternoon and also available on, Furthermore, the content of this conference call contains time sensitive information accurate only as of today, August 14th, 2024. Super League undertakes no obligation to revise or otherwise update any statements to reflect events or circumstances after the date of this call. I'll now play a short video before I turn the conference over to Ann Hand, Chief Executive Officer. Skip to 3.49—enjoy!

Second quarter 'twenty 'twenty four conference call.

Please note this conference is being recorded.

Speaker Change: Before we begin I'd like to caution listeners that comments made by management. During this call may include forward looking statements within the meaning of applicable securities laws.

Speaker Change: These statements involve material risks and uncertainties and actual results could differ from those projected in any forward looking statements due to numerous factors.

Speaker Change: For a description of these risks and uncertainties. Please see Super League's financial statements and MD&A for the second quarter 2024 ended June 30th 2024 available on Edgar.

Speaker Change: Important qualifications regarding forward looking statements are also contained in Super League.

Speaker Change: Our earnings release distributed earlier this afternoon and also available on Edgar.

Speaker Change: Furthermore, the content of this conference call contains time sensitive information accurate only as of today August 14th 2020 for.

Speaker Change: Super League undertakes no obligation to revise or otherwise update any statements to reflect events or circumstances. After the date of this call.

Ann Hand: I'll now play a short video before I turn the conference over to Ann hand, Chief Executive Officer.

Ann Hand: [noise].

Ann Hand: Well good afternoon, everyone I'm I'm delighted to report on separately second quarter financial results and provide an update on our company's continued operational progress during the quarter. We continued on our mission to redefine the gaming industry as a media channel for global brands there are innovative tech.

Ann Hand: Well, good afternoon, everyone. I'm delighted to report on Super League's second quarter financial results and provide an update on our company's continued operational progress. During the quarter, we continued on our mission to redefine the gaming industry as a media channel for global brands through our innovative technology, capabilities and products. Our leadership position, earned through the work we have done to date, allows us to further grow our competitive moat with extensive barriers to entry.

Ann Hand: <unk> capabilities and products.

Ann Hand: Our leadership position earned through the work we have done to date allows us to further grow our competitive moat with extensive barriers to entry to a variety of collaborations with major global brands IP owners and talent, we launched multiple captivating immersive experiences with tremendous results verify our ongoing momentum.

Ann Hand: Through a variety of collaborations with major global brands, IP owners, and talent, we launched multiple captivating immersive experiences with tremendous results that verify our ongoing momentum and driving 3D engagement on platforms where the massive Generation Z and Alpha audiences already live. We continue to believe in the unstoppable secular shift in digital advertising towards 3D immersion. Immersive engagement allows brands to speak to young consumers in a highly customized and personalized way and it performs, offering a 252% higher engagement rate and a 40% higher conversion.

Ann Hand: And driving engagement on platforms, where the math of generation Z and how the audience is already live.

We continue to believe in the unstoppable secular shaft and digital advertising towards three D immersion.

Ann Hand: Immersive engagement allows brands to speak to young consumers in a highly customized and personalized way and it performed offering of 252% higher engagement rate and a 40% higher conversion rate.

Ann Hand: This is a transformational time that we're all living in, in the way that content is created and consumed, and it requires a new imperative for the C-suite to think differently about how they engage with the next generation. While it is new terrain, it offers an exciting opportunity for brands to create deeper affinity and ultimately conversion for a greater share of consumers' wallets. As you've heard me say before, the average Roblox user spends an astounding 156 minutes a day on the platform, as compared to 95 average daily minutes on TikTok.

Ann Hand: This is a transformational time that we're all living in and the way that content is created and consent and it requires a new imperative for the C suite to think differently about how they engage with the next generation well.

Ann Hand: Well it is new terrain. It offers an exciting opportunity for brands to create deeper affinity and ultimately conversion for a greater share of consumers' wallets.

Speaker Change: As you've heard me say before the average roadblocks user spends an astounding 156 minutes a day on the platform as compared to 95 average daily minutes on Tech talk.

Ann Hand: These young consumers expect to meet brands first in digital environments and feel as strongly about their digital identity as they do their physical identity. Currently, 75% of Gen Z spend money on virtual in-game items, and some in the industry believe that by 2030, this next generation will have 30% of their total wardrobe be in the shape of digital clothing for their digital selves. Being in a nascent, rapidly changing industry, it is a requirement that we learn and iterate quickly as we continue to evolve the trajectory of the company.

Speaker Change: These young consumers expect to meet brands first and digital environment and feel as strongly about their digital identity as they do their physical identity. Currently 75 per cent of Gen Z spend money on virtual in game items and some of them. The industry believed that by 2030. This next generation will have 30% of their total war.

Speaker Change: Our drill b in the shape of digital clothing for their digital selves.

Speaker Change: Being in a nascent rapidly changing industry. It is a requirement that we learn and iterate quickly as they continue to evolve the trajectory of the company. This is our offense and makes us stronger against competition and stickier with our customers and it speaks to our creative collaborative and competitive spirit that has really a Super League score.

Ann Hand: This is our offense and makes us stronger against competition and stickier with our customers, and it speaks to our creative, collaborative and competitive spirit that is really at Super League's core. Super League is, first and foremost, a product and technology company with currently more than 10,000 experiences in our Roblox network alone that currently reach approximately 160 million monthly unique players. Now, that's real scale.

Speaker Change: Super League is first and foremost a product and technology company with currently more than 10000 experiences and our robust network alone that currently reached approximately 160 million monthly unique players now that's real scale.

Ann Hand: This is what separates us from the pack. We are not merely an ad agency or a game development studio. Our approach to productization is how we scale our pipeline and grow our margin profile. For example, when we build an immersive experience, we create a 3D model of the key building blocks.

Speaker Change: This is what separates us from the pack, we're not merely an AD agency or a game development studio our approach to privatization is how we scale our pipeline and grow our margin profile.

Speaker Change: When we build an immersive experience we create a three D model are key building blocks.

Speaker Change: These reusable elements collapsed our development timeline, they lower the cost of entry for new brands looking to enter these pioneering marketing channel and they do allow us again to improve our margin profile.

Speaker Change: Super League pop ups repeatable Dragon dropped elements of our customer experiences, which are deployed throughout our software are officially end market and can be easily reschedule for a wide berth of brands and IP owners. This leads to faster brand adoption and depth in key verticals like music fashion Q S. R.

Speaker Change: Automotive and more.

As well, we create beautiful experiences and are increasingly being asked to build dedicated world that are more persistent nature. So what did you think about the opening of the Olympics video pretty amazing right.

Ann Hand: These reusable elements collapse our development timelines, they lower the cost of entry for new brands looking to enter these pioneering marketing channels, and they do allow us again to improve our margin profile. Super League pop-ups, repeatable drag-and-drop elements of our custom experiences, which are deployed throughout our software, are officially in market and can be easily reskinned for a wide berth of brands and IP owners. This leads to faster brand adoption and depth in key verticals like music, fashion, QSR, automotive, and more. As well, we create beautiful experiences and are increasingly being asked to build dedicated worlds that are more persistent in nature. So, what did you think about the opening Olympics video? Pretty amazing, right?

Ann Hand: Since our acquisition of Mellon Studios last year, we've seen our dedicated build revenues increase by three times. And with a product mindset, we can build vast, exciting, dedicated worlds faster as well.

Speaker Change: Since our acquisition of Melons Studios last year, we've seen our dedicated build revenues increased by three times and with a product mindset. We can build vast exciting dedicated world faster as well and we don't stop there as we have proven success at driving real life Commerce on behalf of our brand partners. That's a leader.

Ann Hand: As we have proven success at driving real life commerce on behalf of our brand partners, that's a leading edge for us. We think about our brand's P&L, not just trying to grab a portion of their in-year marketing spend. As we transition now to Q2 results, we've seen some macroeconomic factors continue to provide an overhang, namely prolonged inflation resulting in softening of consumer spend and some ad sales. We were thrilled to see the positive inflation news this morning, and we hope this is an entry point for interest rate reductions and an opportunity for small cap stocks to begin to have their moment once again, a moment we've all been patiently waiting for, as have all of you on the call. While our top line revenues were flat sequentially, we did see approximately 1.8 million in expected revenues that were deferred due to delayed advertiser launch dates.

Unknown Executive: Greetings and welcome to the Super League Second Quarter 2024 conference call. Please note this conference is being recorded. Before we begin, I'd like to caution listeners that comments made by management during this call may include forward-looking statements within the meaning of applicable securities laws. These statements involve material risks and uncertainties and actual results could differ from those projected at any forward-looking statement due to numerous factors. For description of these risks and uncertainties, please see Super League financial statements and MDNA for the second quarter 2024 and the June 30th 2024 available on Edgar.

Speaker Change: Nudge for US, we think about our brands P&L not just trying to grab a portion of their in your marketing spend.

Speaker Change: As we transition now to Q2 results, we have seen some macroeconomic factors continue to provide an overhang, namely prolonged inflation, resulting in softening of consumer spend and some AD sales we were thrilled to see the positive inflation here. This morning, and we hope this is an entry point for interest rate reductions and it.

Speaker Change: The opportunity for small cap stocks to begin to have their moment once again, a moment, we've all been patiently waiting for as have all of you on the call.

Speaker Change: While our topline revenues were flat sequentially, we did see approximately one 8 million in expected revenues that were deferred due to delayed advertiser launch dates and we continue to win big signature programs, some of which I'll frame recurring revenues beyond the immersive experience build and launch.

Unknown Executive: Important qualifications regarding forward-looking statements are also contained in Super League earnings release attributed earlier this afternoon and also available on Edgar. Furthermore, the content of this conference call contains time-sensitive information accurate only as of today, August 14th, 2024.

Ann Hand: And we continue to win big signature programs, some of which offering recurring revenues beyond the immersive experience build and launch. Going back to our prioritization approach, we are starting to see the impact on our forward margin. Currently, we have an internal target of 45 to 50% margins on most programs with lower margin proposals accepted by exception only when they're offering a greater longer term strategic benefit to the company, such as subsequent repeat business, or perhaps a proof point for a new vertical that we're chasing.

Unknown Executive: Super League undertakes no obligation to revise or otherwise update any statements to reflect events or certain senses after the date of this call.

Speaker Change: Going back to our prioritization approach, we are starting to see the impact on our forward margins.

Speaker Change: Currently we have an internal target.

Ann Hand: I'll now play a short video before I turn the conference over to Anne-Han, Chief Executive Alps Center. Well, good afternoon, everyone. I'm delighted to report on Super League's second quarter financial results and provide an update on our company's continued operational progress. During the quarter, we continued on our mission to redefine the gaming industry as a media channel for global brands through our innovative technology, capabilities, and products. Our leadership position earns through the work we have done today allows us to further grow our competitive mode with extensive barriers to entry.

Speaker Change: A 45% to 50% margins on most programs with lower margin proposal accepted by exception only when they're offering a greater longer term strategic benefit to the company such as subsequent repeat business or perhaps a proof point for a new vertical that we're chasing.

Ann Hand: The more repeatable products we sell, the more margins climb, making pop-ups and other product innovation essential. We continue to apply a laser focus on our P&L, as we aim to achieve our first profitable quarter in Q4 of this year, and we continue to positively test the capacity of the organization as a core lever to profitability and scale. We currently operate with approximately 15% less headcount than we had last year, which has contributed to a 25 and 23% decrease in our Q2 pro forma operating expenses and operating losses, respectively. Again, to reiterate a 25% decrease in our Q2 pro forma operating expenses relative to the same quarter last year and a 23% decrease in our operating losses relative to the same quarter last year. For more information, visit www.

Speaker Change: The more repeatable products, we sell the more of the margins climb, making pop ups and other product innovation essential.

Speaker Change: We continue to apply a laser focus on our P&L as we aim to achieve our first profitable quarter in Q4 of this year and.

Speaker Change: And we continue to positively tested the capacity of the organization as a core lever to profitability and scale. We currently operate with approximately 15% less than head count than we had last year, which has contributed to a 25 and 23% decrease in our Q2 pro forma operating expenses and.

Speaker Change: Operating losses, respectively, again to reiterate at 25% decrease in our Q2 pro forma operating expenses relative to same quarter prior year, and a 23% decrease in our operating losses relative to the same quarter prior year.

Ann Hand: FEMA.gov, We are off to a strong start for Q3 and expect to be able, to deliver a large amount of revenues in the second half of the year and do that inside of our current cost structure. Second quarter, 2024, top line highlights included revenues associated with immersive experiences for global brands, such as the International Olympic Committee, Visa, Mabelene, Clairs, Skechers, Google, and Universal Pictures. A fun one to highlight is the work we've kicked out with Google. Experiences to help you learn more about internet, literacy, and digital privacy.

Speaker Change: We are off to a strong start for Q3 and expect to be able.

Ann Hand: Through a variety of collaborations with major global brands, IP owners, and talent, we launched multiple captivating immersive experiences with tremendous results that verify our ongoing momentum and driving 3D engagement on platforms where the massive generation Z and Alpha audiences already live. We continued to believe in the unstoppable, secular shift in digital advertising towards 3D immersion. Immersive engagement allows brands to speak to young consumers in a highly customized and personalized way, and it performs, offering a 252% higher engagement rate and a 40% higher conversion rate.

Speaker Change: To deliver a large amount of revenues in the second half of the year and do that inside of our current cost structure.

Second quarter 2020 for topline highlights included revenues associated with immersive experiences for global brands, such as the International Olympic Committee Visa Maybelline, Claire's, Skechers, Google and Universal Pictures.

Speaker Change: I wanted to highlight is the work we've kicked off with Google experiences to help us learn more about Internet literacy and digital privacy, that's right Gamify education and this program speaks to another important signal with our proven expertise in this space, we were able to pitch and win this business within the 24 hour period.

Ann Hand: This is a transformational time that we're all living in, in the way that content is created and consumed. And it requires a new imperative for the C-suite to think differently about how they engage with the next generation. While it is new terrain, it offers an exciting opportunity for brands to create deeper affinity and ultimately conversion for a greater share of consumers' wallets. As you've heard me say before, the average Roblox user spends an astounding 156 minutes a day on the platform as compared to 95 average daily minutes on TikTok.

Ann Hand: That's right, gamified education. And this program speaks to another important signal. With our proven expertise in the space, we were able to pitch and win this business within a 24-hour period. Chasing six and seven figure deals has become our new normal.

Speaker Change: Chasing six and seven figure deals has become our new normal we continue to see strong repeat opportunities with the likes of craft I heart, Samsung Sony Universal you'd be stopped and the F D. A as well as the new brands enter the space.

Ann Hand: We continue to see strong repeat opportunities with the likes of Kraft, iHeart, Samsung, Sony, Universal, Ubisoft, and the FDA, as well as seeing new brands enter the space. The FDA program is a fun one to highlight because it's another signature opportunity to really do good beyond just gameplay. That specific campaign is raising anti vaping awareness amongst you.

Speaker Change: The F D. A program is a fun one to highlight because it's another signature opportunity to really do good beyond just gameplay that specific campaign is raising anti they've been awareness amongst shoot.

Ann Hand: These young consumers expect to meet brand's first and digital environments and feel as strongly about their digital identity as they do their physical identity. Currently 75% of Gen Z spend money on virtual and game items. And some of the industry believe that by 2030, this next generation will have 30% of their total wardrobe being the shape of digital clothing for their digital selves.

Speaker Change: If we look at our current pipeline if features 51 repeat customers and 68 new brand entrants.

Ann Hand: If we look at our current pipeline, it features 51 repeat customers and 68 new brand entrants. As we anticipate the larger deal trend to continue, we can quickly scale our revenue with fewer brand partners that are committed to the larger and longer term engagement. Our strategy begins with creating a brand's short-term experience, and then we leverage that engagement into more persistent programs, offering them a way to enter into this new immersive marketing channel. This is a well recognized persistent strategy used already by brands today on traditional social media channels like Instagram and Facebook. They don't pop in here and there for a month or a week at a time.

Speaker Change: We anticipate the larger deal trend to continue we can quickly scale, our revenue with fewer brand partners that are committed to the larger and longer term engagements.

Ann Hand: Being in a nascent, rapidly changing industry, it is a requirement that we learn and iterate quickly as we continue to evolve the trajectory of the company. This is our office and makes us stronger against competition and stickier with our customers and it speaks to our creative collaborative and competitive spirit that is really a super league score. Super League is first and foremost a product and technology company with currently more than 10,000 experiences in our Roblox network alone that currently reach approximately 160 million monthly unique players.

Speaker Change: Our strategy begins with creating a brand's short term experience and then we leverage that engagement into more persistent program offering them a way to enter into this new immersive marketing channel. This is a well recognized persistent strategy used already by brands today on traditional social media channels like Instagram and Facebook.

Ann Hand: They have a consistent strategy. And that's the corner that we're starting to turn with more and more of these repeat brands that we've been engaging with. We expect larger deal sizes with more predictable longer term revenue that over time should offer stable cash flow for the company and ultimately drive shareholder value. As we grow and deliver on these larger programs, it verifies our unique position as a one-stop shop and enterprise solution capable of driving commerce across a variety of existing immersive platforms and ultimately back to a brand's own immersive website and commerce experience.

Speaker Change: Don't pop in here and there for a month or a week at a time they have a consistent strategy and that's the corner that were starting to turn with more and more of these repeat brands that we've been engaging with.

Speaker Change: We expect larger deal sizes with more predictable longer term revenue that overtime should offer stable cash flow for the company and ultimately drive shareholder value.

Ann Hand: Now that's real scale. This is what separates us from the pack. We are not merely an ad agency or a game development studio. Our approach to prioritization is how we scale our pipeline and grow our margin profile. When we build an immersive experience, we create a 3D model of key building blocks. These reusable elements collapse our development pipelines. They lower the cost of entry for new brands looking to enter these pioneering marketing channels and they do allow us again to improve our margin profile.

Speaker Change: As we grow and deliver on these larger programs. It verifies our unique position as a one stop shop and enterprise solution capable of driving commerce across a variety of existing immersive platforms and ultimately back to a brand's own immersive website and commerce experiences.

Ann Hand: We see evidence of this with retailers who increasingly realize the value of and hosting their own virtual worlds to create brand awareness, highlight trendy products, drive community among customers, and now to even recruit young workers. Recent moves from various major retailers, such as Walmart's rollout of Realm and IKEA's Virtual Universe, confirm this trend. With our leadership position and relationships with a host of major global brands across various verticals, the opportunity in front of us remains enticing. Super League has the strategic and creative capabilities that, when coupled with our suite of proprietary products and measurement tools, guide brands to appropriately position themselves in this new 3D chapter of brand marketing, digital advertising, and e-commerce.

Speaker Change: We see evidence of this with retailers who are increasingly realize the value in hosting their own virtual worlds to create brand awareness highlight trendy products drive community among customers and now to even recruit young workers recent moves from various major retailers such as Walmart rollout of realm and the key is virtual universe.

Ann Hand: Super league pop-ups, repeatable drag and drop elements of our custom experiences, which are deployed throughout our software are officially in market and can be easily re-skinned for a wide birth of brands and IP owners. This leads to faster brand adoption and depth and key verticals like music, fashion, QSR, automotive and more.

Speaker Change: Confirm this trend.

Speaker Change: Our leadership position and relationships with the host of major global brands across various verticals the opportunity in front of US remains enticing Super League has the strategic and creative capabilities that when coupled with our suite of proprietary products and measurement tools guide brands to appropriately position and this new <unk>.

Ann Hand: As well, we create beautiful experiences and are increasingly being asked to build dedicated worlds that are more persistent in nature.

Ann Hand: So what did you think about the opening Olympic video? Pretty amazing, right? Since our acquisition of Mellon Studios last year, we've seen our dedicated build revenues increased by three times. And with a product mindset, we can build vast, exciting, dedicated worlds faster as well. And we don't stop there. As we have proven success at driving real-life commerce on behalf of our brand partners, that's a leading edge for us. We think about our brand's P&L, not just trying to grab a portion of their in-year marketing spend.

Speaker Change: <unk> chapter of brand marketing digital advertising and E Commerce and this new chapter as one that can truly transform business models.

Ann Hand: And this new chapter is one that can truly transform business models. So now let's move on to some operational highlights. First, focusing on dedicated worlds we build, there was no better example of the excitement and breadth in our offering than the work we launched in partnership with Visa. The Olympics Games in Paris provided a great opportunity to showcase the growth of immersive engagement and allowed Super League to shine through collaborations that showcase our innovation.

Speaker Change: So now let's move on to some operational highlights.

Speaker Change: First focusing on dedicated world as we build there was no better example of the excitement and breadth of our offerings than the work we launched in partnership with Visa The Olympics games in Paris provide a great opportunity to showcase the growth of immersive engagement and allowed to Super League to shine through collaborations that showcase our innovation.

Ann Hand: As we transition now to Q2 results, we've seen some macroeconomic factors continue to provide an overhang, namely prolonged inflation, resulting in softening of consumer spend and some ad sales. We were thrilled to see the positive inflation this morning, and we hope this is an entry point for interest rate reductions and an opportunity for small cap stocks to begin to have their moment once again. A moment we've all been patiently waiting for as have all of you on the call.

Ann Hand: In June, leading up to the games, we launched a first of its kind event featuring a Post Malone hybrid concert, so there was a live concert and then a live stream virtual concert as well. That was hosted at the iconic Louvre Museum and streamed live into a Roblox event that we created reaching over 170 countries worldwide. In addition to the concert, players were able to explore the virtual Louvre Museum experience we built to learn and interact with a collection of curated artwork such as the Mona Lisa.

Speaker Change: In June leading up to the games, we launched a first of its kind event featuring a post Malone hybrid concert. So there was a live concert and then a livestream virtual concert as well.

Speaker Change: That was hosted at the iconic Lube Museum and streamed live into a roadblocks event that we created reaching over 170 countries worldwide. In addition to the concert players we're able to explore the virtual loop Museum experience, we built to learn and interact with the collection of curated art work such as the Mona Lisa.

Ann Hand: While our top-line revenues were flat sequentially, we did see approximately 1.8 million in expected revenues that were deferred due to delayed advertiser launch dates. And we continue to win big signature programs, some of which offering recurring revenues beyond the immersive experience build and launch. Going back to our productization approach, we are starting to see the impact on our forward margin.

This was followed by the launch of Olympic World, Our global experience to unite Olympic fans that was brought in partnership with visa and the IOC as shown in the opening video. The historic first features Olympic and Paralympic intellectual property offering players the virtual space to explore the Olympic spirit through <unk>.

Ann Hand: This was followed by the launch of Olympic World, a global experience to unite Olympic fans that was brought in partnership with Visa and the IOC. As shown in the opening video, the historic first features Olympic and Paralympic intellectual property, offering players the virtual space to explore the Olympic spirit through various games, activities, quests, and events, including Olympic-themed mini games and access to virtual products in the Olympic Shop. As well, we continue to gain traction with retailers, such as Skechers, where we created the first immersive Skechers store within Roblox's live Topia Mall.

Speaker Change: <unk> games activities question events, including the Olympic expired mini games and access to virtual products in the Olympics shop.

Ann Hand: Operations. Currently, we have an internal target of 45% to 50% margins on most programs with lower margin proposals accepted by exception only when they're offering a greater, longer-term strategic benefit to the company, such as subsequent repeat business, or perhaps the proof point for a new vertical that we're chasing. The more repeatable products we sell, the more the margins climb, making pop-ups and other product innovation essential. We continue to apply a laser focus on our P&L as we aim to achieve our first profitable quarter in Q4 this year, and we continue to positively test the capacity of the organization as a core lever to profitability and scale.

Speaker Change: As well, we continue to gain traction with retailers such as with Skechers, where we created the first immersive skechers store within roadblocks as life Toby a mall. The Skechers shop was designed to build community and engage young consumers in a world that bring skechers brand to life as a visit or you can participate in the treasure hunt to win exclusive digital skechers.

Ann Hand: The Skechers shop was designed to build community and engage young consumers in a world that brings Skechers brand to life. As a visitor, you could participate in a treasure hunt to win exclusive Skechers digital items, as well as create stylish looks inspired by select Skechers products.

Speaker Change: Jill items as well as create stylish looks inspired by select Skechers products. The results were compelling with $3 4 million visits to the store 4 million try on and nearly 45 million impressions generated in five weeks.

Ann Hand: The results were compelling, with 3.4 million visits to the store, 4 million trions, and nearly 45 million impressions generated in five weeks. And we're seeing more retailers getting in the mix. Go check out our recently launched Old Navy Store.

Ann Hand: We currently operate with approximately 15% less in headcount than we had last year, which has contributed to a 25 and 23% decrease in our Q2 performance operating expenses and operating losses respectively. Again, to reiterate, a 25% decrease in our Q2 performance operating expenses relative to same quarter prior year and a 23% decrease in our operating losses relative to same quarter prior year. We are off to a strong start for Q3 and expect to be able to deliver a large amount of revenues in the second half of the year and do that inside of our current cost structure.

Speaker Change: And we're seeing more retailers getting into mix go check out our recently launched old Navy store developed through our pop up store product offering players the opportunity to shop for digital twins fashion of current in real life clothing that is in stores now for the back to school shopping season.

Ann Hand: Developed through our pop-up store product, offering players the opportunity to shop for digital twin fashions of current in-real-life clothing that is in stores now for the back-to-school shopping. Additionally, during the quarter, we continue to demonstrate further product innovation, with the day view of sounds, a new scalable immersive music offering, inclusive of many of the elements that make for a great concert experience, including listening parties, dance moves, and digital merchandise. Sounds launched with a bang with Bebe Rexha.

Speaker Change: Additionally, during the quarter, we continued to demonstrate further product innovation with the debut of sounds a new scalable immersive music offering inclusive of many of the elements that make for a great concert experience, including listening parties dance moves in digital merchandise.

Speaker Change: Last with a bang with BV racks up her custom built avatar sang dancing and engage with fans through games, Dave players the ability to try on and purchase virtual gear and offered other rewards all like a Bowie BB Rexes newest singles.

Ann Hand: Her custom-built avatar sang, danced, and engaged with fans through games, gave players the ability to try on and purchase virtual gear, and offered other rewards, all while debuting Bebe Rexha's newest single, and conjunction with our Unlockables product module that offers unique play rewards. The experience has launched in three mini-games inside of our BAS network, delivering over two million visits, 230,000 dance party completions, and 43,000 visitors to our rewards, key to our strategy as well as diversification across existing game platforms, that again, with the vision of the company leading to ownable dedicated worlds for brands and IP owners as well as for ourselves.

Ann Hand: Second quarter, 2024, top line highlights included revenues associated with immersive experiences for global brands such as the International Olympic Committee, Visa, Maybelline, Clairs, Skechers, Google, and Universal Pictures. A fun one to highlight is the work we've kicked out with Google. Experiences to help use learn more about Internet literacy and digital privacy. That's right, gamified education. And this program speaks to another important signal. With our proven expertise in the space, we were able to pitch and win this business within a 24-hour period.

Speaker Change: In conjunction with our unlockable product module that offers unique player rewards. The experience was launched in three mini games inside of our vast network delivering over 2 million visits 230000 dance party completions and 43000 visitors to our reward center.

Speaker Change: Key to our strategy as well as diversification across existing game platforms that again with the vision of the company leading to owner Bull dedicated world for brands and IP owners as well as for herself. So again controlling more of that and fully owner Bowl dotcom experience.

Ann Hand: Chasing six and seven figure deals has become our new normal. We continue to see strong repeat opportunities with the likes of craft, iHeart, Samsung, Sony, Universal, Ubisoft, and the FDA as well as the new brands enter the space. The FDA program is a fun one to highlight because it's another signature opportunity to really do good beyond just gameplay. That specific campaign is raising anti-vaping awareness amongst you. If we look at our current pipeline, it features 51 repeat customers and 68 new brand entrants.

Ann Hand: So again, controlling more of that and fully ownable.com experience. Our recent announcement of a strategic partnership with Medestadiums is precisely in that lane. Together we offer a unified solution to build and leverage immersion with audiences on today's dominant gamified platforms such as Roblox, Fortnite, Creative, Sandbox, Decentral Land and more, and ultimately drive people to a brand owned and operated set of digital and physical experiences. Metastadiens is a cutting edge platform to build, customize, and manage dedicated, ownable virtual stadiums in the metaverse that coupled with our products and capability can deliver metaverse world design and game development.

Speaker Change: Our recent announcement of a strategic partnership with meta stadiums is precisely in that lane.

Speaker Change: Together, we offer a unified solution to build and leverage immersion with audiences on today's dominant game of five platforms, such as roadblocks Fortnite creative sandbox do central London, more and ultimately drive people to our brands owned and operated set of digital and physical experiences.

Speaker Change: Meta stadiums as a cutting edge platform to build customized and manage dedicated <unk> virtual stadiums in the meta versus that coupled with our products and capability can deliver meta versus world designing game development.

Ann Hand: As we anticipate the larger deal trend to continue, we can quickly scale our revenue with fewer brand partners that are committed to the larger and longer-term engagements. Our strategy begins with creating a brand's short-term experience. And then we leverage that engagement into more persistent programs, offering them a way to enter into this new immersive marketing channel. This is a well-recognized persistent strategy used already by brands today on traditional social media channels like Instagram and Facebook.

Ann Hand: Live Virtual Events, Avatar Item Collections, Digital to Physical Engagement Systems, as well as Comprehensive Marketing, Promotional, and Content Execution. The combined capabilities offer cross platform immersive experiences and events. By leveraging our tech and expertise in creating captivating experiences coupled with Metastadium's incredible portfolio of top-tier sports and entertainment IP with proven commercialization and monetization capabilities, we create a compelling offering that we believe could be the beginning of our foray into new recurring revenue streams in the areas of consumer monetization and data.

Speaker Change: Live virtual events avatar item collections digital to physical engagement system, as well as comprehensive marketing promotional and content execution.

Speaker Change: The combined capabilities offer cross platform immersive experiences and events.

Leveraging our tech and expertise in creating captivating experiences coupled with metastatic <unk> incredible portfolio of top tier sports and entertainment IP with proven commercialization and monetization capabilities, we create a compelling offering that we believe could be the beginning of our foray into new recur.

Ann Hand: They don't pop in here and there for a month or a week at a time. They have a consistent strategy. And that's the corner that we're starting to turn with more and more of these repeat brands that we've been engaging with. We expect larger deal sizes with more predictable longer-term revenue that over time should offer stable cash flow for the company and ultimately drive shareholder value. As we grow and deliver on these larger programs, it verifies our unique position as a one-stop shop and enterprise solution capable of driving commerce across a variety of existing immersive platforms and ultimately back to a brand's own immersive website and commerce experiences.

Speaker Change: Revenue streams in the areas of consumer monetization and data.

Speaker Change: Finally, as we've mentioned the company has never been more agile and proactive historical data has shown that a top seller in our organization can generate 4 million or more in annual bookings as we strive to achieve annual bookings precedents in Q2, we restructured our sales team inclusive of a top down reorganization.

Ann Hand: Finally, as we've mentioned, the company has never been more agile and proactive. Historical data has shown that a top seller in our organization can generate four million or more in annual bookings. As we strive to achieve annual bookings precedence in Q2, we restructure our sales team, inclusive of the top-down reorganization, overall of our East Coast sales team, and the recruitment of an experienced new East Coast leader who's already contributing large programs to the pipeline.

Speaker Change: Overhaul of our east coast sales team and the recruitment of experienced new East coast leader Who's already contributing large programs to the pipeline.

Ann Hand: We see evidence of this with retailers who are increasingly realize the value and hosting their own virtual worlds to create brand awareness, highlight trendy products, drive community among customers, and now to even recruit young workers. Recent moves from various major retailers such as Wal-Mart's Rollout of Realm and a Kia's virtual universe confirm this trend. With our leadership position and relationships with the host of major global brands across various verticals, the opportunity in front of us remains enticing.

Ann Hand: Like margin growth and cost control, sales force effectiveness is an essential component for scale and profit developers. So with that operator, let's move to Q&A. Thanks Ann, we will now be conducting a question and answer session for our covering analysts. If you would like to be placed into question queue via the phone, please press star 1 on your telephone keypad. Over the webcast, please use your raise your hand feature. One moment please while we poll for questions. Our first question today is coming from Scott Buck from H.T. Wayne.

Speaker Change: Like margin growth and cost control sales force effectiveness is an essential component for scale and profitability.

Speaker Change: So with that operator, let's move to Q&A.

Speaker Change: Thanks, Ken will now be conducting a question answer session for our covering analysts they still have to be placed in the question queue via the phone. Please press star one on your telephone keypad over the webcast. Please use your raise your hand feature one moment. Please while we poll for questions. Our first question.

Ann Hand: Super League has the strategic and creative capabilities that when coupled with our suite of proprietary products and measurement tools, guide brands to appropriately position in this new 3D chapter of brand marketing, digital advertising, and e-commerce, and this new chapter is one that can truly transform business models.

Speaker Change: It is coming from Scott Buck from H C. Wainwright. Your line is now live.

Operator: Write your line is now live. Hi, good afternoon, Ann. Thanks for taking my question. I'm curious, of the $1.8 million of revenue deferred to 3Q, has that program started now in the third quarter? Yeah, these are programs that should have launched in Q2.

Scott Buck: Hi, good afternoon, and thanks for taking my questions.

Ann Hand: In some cases, the revenues were extending between Q2 and Q3 and so they now have Q3 launch dates and then they're extending some into Q4. So we have about closer to 2.2 in total revenues that deferred, but I'm only speaking to the one eight that are specifically will have impact in some of the Q3 revenues, Okay, but they're active now. It sounds like, yeah. Yeah, okay, perfect.

Speaker Change: Hey.

Scott Buck: I'm curious of the $1.8 million of revenue deferred to three Q as that program started now in the third quarter.

Ann Hand: So now let's move on to some operational highlights.

Speaker Change: Yeah. These are all these are programs that should have launched in Q2.

Ann Hand: First focusing on dedicated worlds we build, there was no better example of the excitement and breadth in our offerings than the work we launched in partnership with Visa. The Olympics Games in Paris provided a great opportunity to showcase the growth of immersive engagement and allowed Super League to shine through collaborations that showcase our innovation. In June leading up to the Games, we launched a first of its kind event featuring a post-malone hybrid concert, so there was a live concert and then a live stream virtual concert as well.

Speaker Change: In some cases they they the revenues, we're extending between Q2 and Q3 and so they now have Q3 launch dates and then theyre extending some into Q4. So we have about closer to 2.2 and total revenues that deferred but I'm only speaking to the one eight that are specific.

Ann Hand: That was hosted at the iconic Louvre Museum and streamed live into a roadblocks event that we created reaching over 170 countries worldwide. In addition to the concert, players were able to explore the virtual Louvre Museum experience we built to learn and interact with the collection of curated artworks such as the Mona Lisa. This was followed by the launch of Olympic World, a global experience to unite Olympic fans that was brought in partnership with Visa and the IOC.

Speaker Change: We will have impact and some of the Q3 revenues will be reporting on.

Speaker Change: Okay, but there are active now it sounds like yeah, yeah, yeah, Okay, perfect and then I was hoping you could maybe give a little more color on the meta stadiums partnership.

Ann Hand: And then I was hoping you could maybe give a little more color on the Meta Stadiums partnership. I'm not sure if there are, you know, kind of direct economics, or if, a partnership that you're able to go and joint pitch. I mean, maybe if you could just kind of walk us through, you know, the benefits of this relationship. Yeah, it's a little bit of both.

Speaker Change: I'm not sure. If there were you know kind of direct economics or it's.

Speaker Change: A partnership that you're able to go and join to pitch I mean, maybe if you could just kind of walk us through you know the benefits of this relationship.

Ann Hand: So the first thing it starts with is, you know, imagine if we hold a concert for BB Rexa inside one of our existing gate platforms, but at the same time with Meta Stadiums Tech, we then create a dedicated BB Rexa stadium or concert that you can go to through a direct URL link, so you're not coming in through a gaming platform. So we can promote and kind of create the build up and the excitement and audience inside the platforms where we have a lot of great reach, but then we can drive people to that maybe more signature marquee event.

Speaker Change: Yeah, it's a little bit above so the first thing it starts with as you know imagine if we hold our concert for Bebe racks are inside one of our existing game platforms, but at the same time with meta stadiums Tac. We then create a dedicated b b racks are.

Ann Hand: As shown in the opening video, the historic first features Olympic and Paralympic intellectual property offering players the virtual space to explore the Olympic spirit through various games, activities, quests and events, including Olympic expired minigames and access to virtual products in the Olympic shop. As well, we continued to gain traction with retailers such as the Skechers, where we created the first immersive Skechers store within Roblox's Live Topia Mall. The Skechers shop was designed to build community and engage young consumers in a world that brings Skechers brand to life.

Speaker Change: Stadium or concert that you can go to through a direct U R. L link so you're not coming in through a a gaming platform. So we can promote the the and kind of create the buildup and the excitement and audience inside the platforms, where we have a lot of great reach but then we can drive people to that maybe more signature.

Speaker Change: Key events once we've taken you into that dedicated event, that's owner Bowl and off platform.

Ann Hand: Once we've taken you into that dedicated event that's ownable and off platform, the way that Meta Stadiums work, because they've actually brokered a lot of deals with big kind of sports teams and top talent, is they get to control a part of the economy. So, if you're buying virtual goods inside that dedicated BB Rexa stadium, they get a very attractive rev share from that as part of their licensing agreements. And so this is really probably one of the most generous partnerships, and I'm really indebted to Delance and all of his leadership for it, because what they're doing is they are willing to allow us to participate in that final node of the economy.

Ann Hand: As a visitor, you could participate in a treasure hunt to win exclusive Skechers digital items as well as create stylish looks inspired by select Skechers products. The results were compelling, with 3.4 million visits to the store, 4 million trions and nearly 45 million impressions generated in five weeks. Weeks. And we're seeing more retailers getting in the mix.

Speaker Change: The way that meta stadiums work, because they've actually brokered a lot of deals with big kind of sports teams and top talent is they get to control a part of the economy. So if you're buying virtual goods inside that dedicated be Rex a stadium and they get a very attractive Rev share from that as part of their license.

Ann Hand: Go check out our recently launched Old Navy store, developed through our pop-up store product, offering players the opportunity to shop for digital twin-passions of current in-real-life clothing that is in stores now for the back to school shopping season.

Speaker Change: Xena agreements and so this is really a probably.

<unk>: One of the most generous partnerships and I'm really indebted to <unk> and all of his leadership for it because what they're doing is they are willing to allow us to participate and that that final note of the economy. So.

Ann Hand: Additionally, during the quarter, we continue to demonstrate further product innovation with the debut of Sounds, a new scalable immersive music offering, inclusive of many of the elements that make for a great concert experience, including listening parties, dance moves, and digital merchandise. Sounds launched with a bang with BB Rex up. Her custom-built avatar sang, danced, and engaged with bands through games, gave players the ability to try on and purchase virtual gear, and offered other rewards, all-like debut-leading BB Rex's newest singles.

Ann Hand: So, the conversations we're having as we're going out and jointly pitching is that in the event that we win programs that start where we have reach and through our product in tech, but then it turns into a second component, which is where they have products in tech, that we will get to participate in the consumer monetization of it. And I'll say too, I mean, their relationships are extremely impressive.

<unk>: The conversations we're having as we're going out and jointly pitching is that in the event that we win programs that start where we have reach them through our product and tech, but then it turns into a second component, which is where they have products intact that we will get to participate in the consumer monetization of it and and I'll say too I mean, there on <unk>.

<unk>: <unk> ships are extremely impressive. So you know we were in front of people that at Warner music through BB Reqs out there in front of people as well very complementary over there. So it really is something that right out of the gate, we're putting active pitches together selling south which is our product and they're made metastatic.

Ann Hand: In conjunction with our unlockable product module, that offers unique player rewards, the experience is launched in three many games inside of our bass network, delivering over 2 million visits, 230,000 dance party completions, and 43,000 visitors to our rewards center. Key to our strategy as well as diversification, across existing gate platforms, that again, with the vision of the company leading to ownable dedicated worlds for brands and IP owners as well as for ourselves. So again, control more of that end fully ownable.com experience.

Ann Hand: So, we were in front of people at Warner Music through BB Rexa, they're in front of people as well, very complimentary over there. So, it really is something that right out of the gate, we're putting active pitches together, selling sounds, which is our product, and they're made Metastadium product as one whole program, which again would be sizable, right? And on top of it, I don't think with the types of relationships they're bringing, it's going to be too long before we're announcing a deal.

<unk>: Product as one KOL program, which again would be sizable right and on top of that I don't think with the types of relationships are bringing that's going to be too long before we're announcing the deal.

Speaker Change: Great. That's that's very helpful. And then last one for me you guys have done a really nice job on the cost reductions are it sounds like you're set for the remainder of this year.

Ann Hand: Great, that's very helpful. And then last one from me, you guys have done a really nice job on the cost reductions. It sounds like you're set to the remainder of this year. But how much, you know, how much of the revenue growth in 25 and potentially 26 can, you know, the current cost infrastructure support? I mean, you'll have to add at some point, right?

Ann Hand: Our recent announcement of a strategic partnership with Metastadium is precisely in that lane. Together, we offer a unified solution to build and leverage immersion with audiences on today's dominant gamified platforms such as Roblox, Fortnite, Creative, Sandbox, Decentral Land and more, and ultimately drive people to a brand owned and operated set of digital and physical experiences. Metastadium is a cutting-edge platform to build, customize, and manage dedicated, ownable virtual stadiums in the metaverse that coupled with our products and capability can deliver metaverse world designing game development, live virtual events, avatar item collections, digital to physical engagement systems, as well as comprehensive marketing, promotional, and content execution.

With how much you know how much of the revenue growth and 25 and potentially 26 can you know the current cost infrastructure support I mean, you'll have to add at some point right.

Ann Hand: Yeah, I mean, we've talked about this before, you know, historically, because we a lot of our work was highly manual, every time we took on a bigger program or more work, we were adding bodies. And it's really, you know, again, the product approach, which started with our acquisition of Bloxbiz, which is now two years ago, that we started to lean into to, to this notion of repeatable products, we first built repeatable media products. And now the bigger dollars are where the immersive experiences are. So applying that mindset, to be able to launch an Old Navy store faster or a concert faster. That's really the key there.

Yeah, I mean, we've talked about this before you know historically because we a lot of our work was highly manual every time, we took on a bigger program or more work, we were adding bodies and it's really you know again the product approach, which started with our acquisition of blocks, which is now two years ago that we started to lean into two to this.

Speaker Change: <unk> of repeatable products, we first built repeatable media products and now the bigger dollars are where the immersive experiences are so applying that mindset to be able to launch an old Navy store faster or a concert faster and that's really the key there and that is the difference between us not.

Ann Hand: And that is the difference between us not having to take on larger and larger, larger programs, and start adding more costs. Now, inevitably, you know, when we're delivering, you know, 50 million in top line revenue, I'm not going to pretend that our, our cost profile is going to look the same as it does next quarter. But what I would say is, is that productization is the path to really change that ratio of relationship that for every additional dollar of revenue, it's an exponentially lower amount of cost that has to be incurred. And so and again, you know, you just can't take it out of our DNA at this stage anymore.

Ann Hand: The combined capabilities offer cross-platform immersive experiences and events. By leveraging our tech and expertise in creating captive A and experiences coupled with Metastadium's incredible portfolio of top-tier sports and entertainment IP with proven commercialization and modernization capabilities, we create a compelling offering that we believe could be the beginning of our foray into new recurring revenue streams in the areas of consumer modernization and data.

Having to take on larger and larger and larger programs and start adding more costs now inevitably you know when we're delivering you know $50 million in topline revenue I'm not going to pretend that are our cost per bus and all look the same as it does next quarter.

Speaker Change: But what I would say is is that prioritization is the path to really change that ratio of relationship that for every additional dollar of revenue. It's an exponentially lower amount of cost that has to be incurred and so and again you know you just can't take it out of our DNA at this stage any more.

Scott Buck: I mean, we've just become, as I said, so hyper critical on on profitability in the P&L that I approve every new hire in the company personally, and every salary increase. And Clayton and I every week go through a fine-tooth comb of all expenditure. And that's just become the way we operate. That's great to hear. And then if I could just sneak in one more.

Ann Hand: Finally, as we've mentioned, the company has never been more agile and proactive. Historical data has shown that a top-feller in our organization can generate 4 million earned more in annual bookings. As we strive to achieve annual bookings precedents, in Q2 we restructure our sales team, inclusive of a top-down reorganization, overall of our East Coast sales team, and the recruitment of an experienced new East Coast leader who's already contributing large programs to the pipeline. Like margin growth and cost control, sales force effectiveness is an essential component for scale and profitability.

Speaker Change: Sure I mean, we've just become as I said, so hyper critical on on profitability in the P&L, but I approve every new hire in the company personally and every salary increase.

Clayton: And Clayton and I every week go through a fine tooth comb of of all expenditure and that's just become the way we operate.

Speaker Change: No that's great to hear and then if I could just sneak in one more.

Ann Hand: Of the 68 new customers in the pipeline, Where are these originating through? How much are coming from your internal sales team versus some of your agency relationships? Yeah, I mean, I've historically said that it the makeup has typically been about 80% agencies representing brands and 20% direct relationships with brands. Actually, we've started to see that we're improving that percentage, a higher percent is direct relationships with brands, you know, brands like Chipotle that we've had a long standing relationship with.

Unknown Executive: So with that, operator, let's move to Q&A. Thanks, and we're not be conducting a question and answer session for our covering analysts. If you'd like to be placed into question QB the phone, please press star one on your telephone keypad. Over the webcast, please use your raise your hand feature. One moment please, while we pull for questions.

Speaker Change: Of the 68, new customers in the pipeline.

Speaker Change: Where are these originating through how much are coming from your internal sales team versus some of your agency relationships.

Speaker Change: Yeah, I mean, I've historically said that the makeup has typically been about 80% agencies, representing brands and 20% direct relationships with brands.

Speaker Change: Actually we started to see that we're improving that percentage a higher percent is direct relationships with brands you know brands like Chipotle that we've had a long standing relationship with and there's a few really exciting opportunities in the pipeline for this year for more work that we're going to do with them. Google was a good example, where we very quickly got in front door.

Scott Buck: Our first question today is coming from Scott Buck from H.E. Wayne, right, your line is now live. Good afternoon, Ann. Thanks for taking my questions. I'm curious of the 1.8 million of revenue deferred to 3Q. Has that program started now in the third quarter? Yeah, these are all programs that should have launched in Q2. In some cases, the revenues were extending between Q2 and Q3. And so they now have Q3 launch dates, and then they're extending some into Q4.

Scott Buck: So we have about closer to 2.2 in total revenues that deferred. But I'm only speaking to the 1.8 that are specifically will have impact in some of the Q3 revenues will be reporting on. Okay, but they're active now. It sounds like. Yeah, yeah, yeah, okay, perfect.

Ann Hand: And there's a few really exciting opportunities in the pipeline for this year for more work that we're going to do with them. Google was a good example where we very quickly got in front directly in front of the brand.

Lee: Correct Lee in front of the brand and that's why we're able to have such a quick you know timeframe between pitch and conversion you know being notified that we had won the account.

Ann Hand: And that's why we're able to have such a quick, you know, timeframe between pitch and conversion, you know, being notified that we have won the account. You know, we have some great leaders in the company who really understand how to nurture those longer term business development like partnerships. So when you look at our sales org, while our day to day sellers are working very closely with the with the agencies, and they're kind of hunting down those new RFPs.

Lee: You know we have some great leaders in the company, who really understand how to nurture those longer term business development like partnership. So when you look at our sales org, while our day to day sellers are working very closely with the with the agencies and their kind of hunting down.

Lee: Those new Rfps, we have three or four sellers in the company, who really have some expertise that coming in from the brands. So over time, we want it's not that we want to cut the agency out right because that is a part of the name of the game. They are holding in the in your marketing budget. So when we're trying to meet a new brand for the first time.

Scott Buck: And then I was hoping you could maybe give a little more color on the Metastadium's partnership. I'm not sure if there are, you know, kind of direct economics or it's a partnership that you're able to go and joint pitch. I mean, maybe you could just kind of walk us through, you know, the benefits of this relationship. Yeah, it's a little bit above. So the first thing it starts with is, you know, imagine if we hold a concert for BB Recza inside one of our existing gate platforms.

Ann Hand: We have three or four sellers in the company who really have some expertise that coming in from the brand. So over time, we want it's not that we want to cut the agency out, right? Because that is a part of the name of the game.

Ann Hand: They are holding the end year marketing budget. So when we're trying to meet a new brand for the first time, a lot of times we are going to meet them through the agency. But the power over time of shifting that relationship to be one that's co owned by the brand or agency or just through the brand is that that's when you get into the bigger repeat programs. And that notion of creating like a persistent strategy.

Heather: A lot of times, where we are going to meet them through the agency, but the power over time of a shifting that relationship to be one that's co owned by the brand or agency or just through the brand is that that's when you get into the bigger repeat programs and that notion of creating like a persistent strategy Heather who's one of our great business developers.

Scott Buck: But at the same time with Metastadium's tech, we didn't create a dedicated BB Recza stadium or concert that you can go to through a direct URL link. So you're not coming in through a gaming platform. So we can promote the and kind of create the build up in the excitement and audience inside the platforms where we have a lot of great reach. But then we can drive people to that maybe more signature marquee event once we've taken you into that dedicated event that's ownable and off platform.

Ann Hand: Heather, who's one of our great business developers, you know, she spent a lot of time courting that Chipotle relationship. She's the person behind the direct relationship with Dave and Buster's and main It was her and Zach there winning Google.

Speaker Change: You know she spent a lot of time, according that chipotle relationship she's the person behind the direct relationship with Dave and Busters and main event. It was her and Zach they're winning Google. So you know we've got people, who just really that is their natural selling strength is to go direct to brand.

Ann Hand: So, you know, we've got people who just really that is their natural selling strength is to go direct to brand. Great. No, that's helpful. Appreciate the added color.

Speaker Change: Great No. That's helpful. I appreciate the added color. Thank you very much.

Scott Buck: Thank you very much. Yeah, thank you, Scott. Thank you. Next question today is coming from Jack Codera from Maxim Group. Your line is now live.

Scott Buck: Yeah. Thank you Scott.

Speaker Change: Thank you. Your next question today is coming from Jack Cordero from Maxim Group. Your line is now live.

Scott Buck: The way that Metastadium's work because they've actually brokered a lot of deals with big kind of sports teams and top talent is they get to control a part of the economy. So if you're buying virtual goods inside that dedicated BB Recza stadium, they get a very attractive rev share from that as part of their licensing agreements. And so this is really probably one of the most generous partnerships. And I'm really indebted to Dylan and all of his leadership for it because what they're doing is they are willing to allow us to participate in that that final note of the economy.

Speaker Change: Hi, Adam This is Jack with Erik calling in for Doug. Thanks for taking my questions.

Operator: Hi Ann, this is Jack Codera calling in from Jack Van Der Aarde. Thanks for taking my question. Yeah. In terms of the advertiser habits, can you give a little more color on like these delayed launch dates? Do you think this kind of persists?

Speaker Change: Yeah in terms of the advertiser habits.

Jack Cordero: Can you give a little more color on like these delayed launch dates do you think this kind of persists and any color are they dialing back spend or just pausing. It you know in preparation for a higher ROE a holiday season, how should we be thinking about that.

Jack Codera: And, you know, any color, are they dialing back spend or just pausing it, you know, in preparation for a higher ROA holiday season? How should we be thinking about that? Yeah, I definitely wouldn't say that it is them canceling programs or or dialing down budgets as much. I do think that, you know, generally speaking, if I was in the shoes of a CMO right now, you know, There's no doubt that with the continued inflation, there was a little bit of fatigue happening and consumer spend. And finally, the impacts of inflation are catching up with people financially and psychologically.

Speaker Change: Yeah, I definitely wouldn't say that it is them canceling programs or or dialing down budgets as much I do think that you know generally speaking if I was in the shoes of a CMO right now you know.

Scott Buck: So the conversations we're having is we're going out and jointly pitching is that in the event that we win programs that start where we have reach and through our product and tech. But then it turns into a second component, which is where they have products and tech that we will get to participate in the consumer monetization of it. And and I'll say to I mean their relationships are extremely impressive. So, you know, we were in front of people at Warner music through BB Recza there in front of people as well, very complimentary over there.

Speaker Change: No doubt that it would.

Speaker Change: The continued inflation there was a little bit of.

Speaker Change: You know fatigue happening in consumer spend right and finally, the impact of inflation or kind of kept you catching up with people like financially and psychologically. So advertisers will content will respond to that and be watching those elements.

Ann Hand: So advertisers will respond to that and be watching those elements. And certainly to your point, you get the biggest ROI and Q3 and Q4. But in this case, the deferred programs really came down to things like just internally getting all their ducks in a row. So it wasn't so much of we have to hold back budget or we there's a message in the order that, you know, budgets are on hold or anything like that.

Speaker Change: And certainly to your point you get the biggest ROI in Q3 and Q4, but in this case the deferred programs really came down to things like just internally getting all their ducks in a row.

Scott Buck: So it really is something that right out of the gate, we're putting active pitches together, selling sounds, which is our product and they're made metastatium product as one whole program, which again will be sizable right. And on top of it, I don't think with the types of relationships they're bringing, it's going to be too long before we're announcing it. Sale. Great, that's very helpful.

Speaker Change: So it wasn't so much if we have to hold back budget or we there's a message in the ore that you know budgets are on hold or anything like that these are just more that you know when a brand, especially when a brand is building something dedicated or this is their first time in there trying to learn about this space and so sometimes like Google is launching.

Ann Hand: These are just more that, you know, when a brand, especially when a brand is building something dedicated or this is their first time in, they're trying to learn about this space. And so sometimes like Google is launching a few weeks later. And it's really, and by the way, this one I've heard has been like project managed on both sides of the house, like to the tea, like it's been a wonderful experience for our team and the way they work so well with the Google project team.

Scott Buck: And then last one from me, you guys have done a really nice job on the cost reductions. It sounds like you're set to the remainder of this year, but how much, you know, how much of the revenue growth in 25 and potentially 26 can, you know, the current cost infrastructure support. I mean, you'll have to add at some point, right? Yeah, I mean, we've talked about this before, you know, historically because we, a lot of our work was highly manual, every time we took on a bigger program or more work, we were adding bodies.

Speaker Change: A few weeks later and it's really and by the way. This one I've heard has been like project managed on both sides of the house to the T. Like it's been a wonderful experience for our team and the way they work so well with the Google project team, but people are excited because the program is so meaningful and how it's going to.

Ann Hand: But people are excited because the program's so meaningful and how it's going to educate young people about the internet and safety, people really want to design the game and get it right. And so sometimes it's just the creative excitement that can sometimes make a brand want to spend a few more weeks in the ideation phase. Okay, that's very helpful.

Speaker Change: Young people about the Internet and safety that people really want to design the game and get them right and so sometimes it's just the the creative excitement that can sometimes make a brand but.

Scott Buck: And it's really, you know, again, the product approach, which started with our acquisition of blocks that, which is now two years ago, that we started to lean into, to, to this notion of repeatable products. We first built repeatable media products. And now the bigger dollars are where the immersive experiences are so applying that mindset to be able to launch an old Navy store faster or a concert faster. That's really the key there.

Speaker Change: I wanted to spend a few more weeks in the ideation phase.

Speaker Change: Okay. That's very helpful and then.

Ann Hand: And then it's nice to see, you know, the continued focus on, you know, moving towards profitability. I was wondering if you could give any additional color on, you know, the actual number of Salesforce, you know, the scope of Salesforce, and then kind of where you expect that trending towards the end of the year. Yeah, I mean, depending on how you look at it, we have, you know, eight sellers. But then again, you know, people like Matt, our president is always selling, right?

Speaker Change: It's nice to see the continued focus on moving towards profitability I was wondering if you could give any additional color on the actual number of sales force you know the scope of the sales force and then kind of where you expect that trending towards the end of the year.

Speaker Change: Yeah, I mean, depending on how you look at it we have you know eight sellers, but then again you know people like Matt our president is always selling right. He's he's behind a lot of the work we've done with visa and so you know we I talked about those more business development sellers. So when you look at it more kind of Holistically It's Kai.

Scott Buck: And that is the difference between us not having to take on larger and larger, larger programs and start adding more cost. Now, inevitably, you know, when we're delivering, you know, 50 million in top line revenue, I'm not going to pretend that our cost for both of the same as it does next quarter. But what I would say is that productization is the path to really change that ratio of relationship that for every additional dollar of revenue, it's an exponentially lower amount of cost that has to be incurred.

Ann Hand: He's behind a lot of the work we've done with Visa. And so, you know, we I talked about those more business development sellers. So when you look at it more kind of holistically, it's kind of on a full time equivalent, more like, you know, 10 active sellers. And, and I do think that, you know, again, the reorganization we did, you know, we talked about this a little bit before, but, you know, we were seeing like anywhere from like a six to eight month learning curve for a new seller, because these are completely new ad products. And our patients just kind of worked in.

Speaker Change: On a full time equivalent more like you know 10 active sellers.

Speaker Change: And and I do think that you know again the reorganization we did.

Speaker Change: We talked about this a little bit before but.

Scott Buck: And so, and again, you know, you just can't take it out of our DNA at this age anymore. I mean, we've just become, as I said, so hypercritical on profitability in the PNL that I approve every new hire in the company personally and every salary increase and Clayton and I every week go through a fine to come of all expenditure. And that's just become the way we operate. So that's great to hear.

Speaker Change: We were seen like anywhere from like a six to eight month learning curve for new seller. Because these are completely new ad products and or patients just kind of worth it and so I'm I'm proud of the intervention that we took there.

Ann Hand: And so I'm proud of the intervention that we took there. So while we did release a few sellers, we brought in that new senior East Coast leader I talked about, who, like I said, is already out of the gate, you know, bringing big deals in the pipeline because he understood the space and was selling similar types of products before.

Speaker Change: So while we did release a few sellers brought in that new senior East Coast leader I talked about who like I said is already out of the gate you know, bringing big deals in the pipeline because he understood the space and we're selling similar types of products. Prior. So he didn't have that same learning curve and he's got a vast rolodex and and and all of that.

Scott Buck: And then if I could just sneak in one more of the 68 new customers in the pipeline, where are these originating through how much are coming from your internal sales team versus some of your agency relationships. Yeah, I mean, I historically said that the makeup has typically been about 80% agencies representing brands and 20% direct relationships with brands. Actually, we started to see that we're improving that percentage. A higher percent is direct relationships with brands, you know brands like Chipotle that we've had a long standing relationship with and there's a few really exciting opportunities in the pipeline for this year for more work that we're going to do with them.

Ann Hand: And he's got a vast Rolodex and all of that. But what we really are trying to do is collapse that learning curve time. So we lost a little momentum when you let three sellers go, you know, you're gonna and you have to backfill, you're gonna lose a little bit of time in 2Q, but it was the right long term decision for the company. Okay, that's helpful.

Speaker Change: But what we really are trying to do is collapsed that learning curve time. So we lost a little momentum when you. Let three sellers go you know you're going to and you have to backfill you're going to lose a little bit of time into Q, but it was the right long term decision for the company.

Speaker Change: Okay. That's helpful and then if I had one more.

Ann Hand: And then if I had one more, you know, I think it's really, really exciting to see, you know, this, this pickup in the repeat customers, you know, just this growing group of customers that like the product. It, I don't know if you track this, but do you have any sense, you know, if this was a customer in 2023, and then you move, repeat them in 2024, you know, what's the scope of these repeat customers, the growth and, you know, their initial spend towards, you know, like, say, like a year later, if you have any color there, that would be. Yeah. Yeah, it's a good question.

Speaker Change: I think it's really really exciting to see.

Speaker Change: The tick up in the repeat customers.

Speaker Change: Growing group of customers that like the product I don't know if you track. This but do you have any sense. If this was a customer in 2023 and then you move route repeat them at 2024, you know what's the scope of these repeat customers the growth in their initial spend towards you know like say like a year later, if you have any color there yeah.

Scott Buck: Google is a good example where we very quickly got in front directly in front of the brand. And that's why we're able to have such a quick timeframe between pitch and conversion, you know, being notified that we had won the account. You know, we have some great leaders in the company who really understand how to nurture those longer term business development like partnerships. So when you look at our sales org. While our day to day sellers are working very closely with the with the agencies and they're kind of hunting down those new RFPs.

Speaker Change: Yeah, It's a good question.

Ann Hand: You know, when I think about like a Chipotle, you know, we've done a couple engagements for them previously. We now have three new engagements in the pipeline for this year. So, order of magnitude, over two years, we did two engagements. Now we have three.

Speaker Change: You know when I think about like a chipotle you know we've done a couple engagements for them previously we now have three new engagements in the pipeline for this year. So order of magnitude over two years. We did two engagements now we have three so inevitably those dollars are bigger some repeat work that were pursuing right now for craft.

Ann Hand: So, inevitably, those dollars are bigger. Some repeat work that we're pursuing right now for Kraft, we're excited about, and very hopeful that that will win, you know, that business. But remember that the Kraft program we did last year with Lunchables was almost a $4 million campaign. So, in that instance, you know, that's a pretty big, you know, bogey to hit for a repeat.

Speaker Change: We're excited about them and very hopeful that that will win that business, but remember that the craft program. We did last year with Lunchables was almost a 4 million dollar campaign.

Scott Buck: We have three or four sellers in the company who really have some expertise that coming in from the brand. So over time, we want it's not that we want to cut the agency out right because that is a part of the name of the game. They are holding the in your marketing budget. So when we're trying to meet a new brand for the first time, a lot of times we are going to meet them through the agency.

Scott Buck: But the power over time of shifting that relationship to be one that's co-owned by the brand or agency or just through the brand is that that's when you get into the bigger repeat programs and that notion of creating like a persistent strategy. Heather who's one of our great business developers, you know, she's been a lot of time courting that Chipotle relationship. She's the person behind the direct relationship with Dave investors and main event.

Ann Hand: But my gut would be, and I can definitely, we can do some more analysis on it, Jack, and give it to you, but my gut would be that anybody who's repeating is spending a lot of money. And the key is, you know, again, first, we want to see you come in and test a campaign. The second thing we want you to become is more like the way Sony and Universal have become to us, where we do several campaigns with them throughout the year. They're all discrete, independent campaigns, because they're for different movie launches.

Speaker Change: So in that instance, you know that's a pretty big bogey to hit for a repeat but my my my gut would be and I can definitely we can do some more analysis on that Jack and give it to you, but my gut would be that anybody who's repeating is spending more.

Speaker Change: And the key is you know again first and we want to see you come in and test. The campaign. The second thing we want you to become as more like the way Sony and Universal have become to us where we do several campaigns with them throughout the year, they're all discrete independent campaigns, because they're for different movie launches, but when you add up.

Ann Hand: But when you add up the spend they spend with us, they spend north of a million dollars a year when you add up those unique campaigns. But then the third place we want to take you to is to say, from just a marketing spend efficiency point of view, don't keep popping in and out, and we do a new build for you every time. Let's build a universal theater, and let's leave it open all year long.

Scott Buck: It was her and Zach there winning Google. So, you know, we've got people who just really that is their natural selling strength is to go direct to brand. Great, now it's helpful. Persuade the added color. Thank you very much. Yeah, thank you, Scott. Thank you.

Speaker Change: But then they spend with us they spend north of a million dollars a year when you add up those unique campaigns, but then the the third place. We wanted to take you to is to say.

Speaker Change: From a just a marketing spend efficiency point of view don't keep popping in and out and we do a new build for you every time, let's build a universal theater and let's leave it open all year long, you'll you'll leverage that development cost over multiple campaigns and then we can have that movie theater open for you all year long for it to handle.

Jack Codera: Next question today is coming from Jack Codera, from Maxson Group, your life is now live. Hi, I'm Mr. Jack Codera, calling in for Jack Venerer. Thanks for taking my questions. Yeah. In terms of the advertiser habits, can you get a little bit more color on these delayed launch dates? Do you think this kind of persists and any color, are they dialing back spend or just pausing it in preparation for a higher ROI holiday season?

Ann Hand: You'll leverage that development cost over multiple campaigns, and then we can have that movie theater open for you all year long to handle 2x the amount of new releases. So, you know, whether it's a persistent world for Dave and Buster's. The way the Olympics build is now being leveraged for the Paralympics and for the winter games. You know, what we really are trying to impress upon people is to make that progression from a one-time campaign trial to multiple campaigns because now you understand the channel to the smart thing to do is to create a persistent strategy where it's an always-on strategy. That's helpful. You know, congrats on the progress. I'll have fucking to keep.

Speaker Change: <unk> the amount of new releases. So you know, whether it's a persistent world for Dave and Busters.

Speaker Change: The way the Olympics build is now being leveraged for the Paralympics and for the Winter games. You know what we really are trying to impress upon people is to make that progression from a one time campaign trial to multiple campaigns because now you understand the channel to the smart thing to do is to create a persistent.

Jack Codera: How should we be thinking about that? Yeah, I definitely wouldn't say that it is them canceling programs or dialing down budgets as much. I do think that generally speaking, if I was in the shoes of a CMO right now, there's no doubt that with the continued inflation, there was a little bit of fatigue happening and consumer spend. And finally, the impacts of inflation are catching up with people but financially and psychologically.

Speaker Change: Strategy, where it's an always on strategy.

Speaker Change: That's helpful.

Speaker Change: Congrats on the progress I'll hop back in the queue. Thank you.

Speaker Change: Thank you.

Speaker Change: Thank you next question today is coming from Howard Halpern from tablet. Your line is now live.

Jack Codera: Thank you. Thank you. Thank you. Next question today is coming from Howard Halpern from Tagalog, True Line is now live. Hi, Howard.

Howard Halpern: Hi, Howard.

Operator: Hi. Hi. You got me?

Howard Halpern: Hi, Hi, exactly Yep alright.

Howard Halpern: Yep. Okay. Could you talk a little bit more about the opportunity that, The data analytics side will present to you over the longer term. Yeah, so right now, inside other people's platforms, namely in Roblox, we do have additional kind of analytical tools and insights. And often when we're pitching a brand, because we are a one-stop shop, we say we want to build your experience. We also want to be the people who continue to maintain and operate it with updates to keep it lively. We want to pull from our shelf of products to build that faster and make it more engaging and exciting for you. At the same time, we want to throw in additional modules like that reward center.

Jack Codera: So advertiser's will respond to that and be watching those elements. And certainly to your point, you get the biggest ROI and Q3 and Q4. But in this case, the deferred programs really came down to things like just internally getting all their ducks in a row. So it wasn't so much of, we have to hold back budget or there's a message in the order that budgets are on hold or anything like that.

Howard Halpern: Okay could you talk a little bit more about the opportunity with that.

Speaker Change: The data analytics side, it will present to you over the longer term.

Speaker Change: Yeah, So right now inside other people's platforms, namely in roadblocks.

Speaker Change: We do have additional kind of analytical tools and insights and often when we're pitching a brand because we are a one stop shop, we say we want to build your experience. We also want to be the people who continue to maintain and operate it with with updates to keep it lively we wanted.

Jack Codera: These are just more that when a brand, especially when a brand is building something dedicated, or this is their first time in, they're trying to learn about this space. And so sometimes like Google is launching a few weeks later. And it's really, and by the way, this one I've heard has been like project managed on both sides of the house, like to the tea. Like it's been a wonderful experience for our team and the way they work so well with the Google project team. But people are excited because the program's so meaningful and how it's going to educate young people about the internet and safety that people really want to design the game and get it right.

Speaker Change: Pull from our shelf of products to to build that faster and make it more engaging and exciting for you at the same time, we want to throw in additional modules like that rewards center you know so that's ways that we can help a brand.

Ann Hand: You know, so that's ways that we can help a brand further incentivize players to keep coming back and earning in-game rewards, but they could also tie to physical rewards. So that's one more way that we can help a brand capture that consumer and convert them into a physical consumer of theirs. And then often, you know, because we have kind of very advanced strong analytics and reporting, it's also the way we report on performance and other end-of-site. So inside the universe today, when we're taking down these large programs and I say we're end-to-end, it has all of those elements in it.

Speaker Change: And further incentivize players to keep coming back and earning in game rewards, but they could also tie to physical rewards. So that's one more way that we can help a brand capture that consumer and convert them into a physical consumer of theirs and then often you know because we have kind of very advanced strong.

Jack Codera: And so sometimes it's just the creative excitement that can sometimes make a brand want to spend a few more weeks in the ideation phase. Okay, that's very helpful. And then it's nice to see the continued focus on moving towards profitability. I was wondering if you could give any additional color on the actual number of Salesforce, you know, the scope of Salesforce. And then kind of where do you expect that trending towards the end of the year?

Speaker Change: Analytics and reporting it's also the way we report on performance another undecided so inside the universe today, when we're taking down these large programs and I'd say, we're in and it has all of those can those elements in it and we also will do influencer marketing to further amplify off platform, we'll do other.

Jack Codera: Yeah, I mean, depending on how you look at it, we have, you know, eight sellers. But then again, you know, people like Matt, our president is always selling, right? He's behind a lot of the work we've done with Visa. And so, you know, we, I talked about this more business development sellers. So when you look at it more kind of holistically, it's kind of on a full-time equivalent, more like, you know, 10 active sellers.

Ann Hand: And we also will do influencer marketing to further amplify off-platform. We'll do other off-platform media buys. Maybe you want to manage a budget for you and buy some YouTube advertising across the campaign too.

Speaker Change: Our off platform media buys maybe he wants to manage a budget for you and by some Youtube advertising.

Speaker Change: Across the campaign two so when I say, one stop shop and the data component today, that's where we are.

Ann Hand: So when I say one step shop in the data component today, that's where we are. But when you start to think about the ways that we can capture a consumer in a web environment like a landing page and incentivize them with new rewards, we can now build a relationship with them directly. We can capture their email and start allowing a brand to ourselves to have more communication and drive more commerce with them.

Speaker Change: But when you start to think about the ways that we can capture a consumer in a web environment like a landing page and incentivize them with new rewards. We can now build a relationship with them directly we can capture their email and start allowing to brand ourselves to have more communication and drive more more commerce with them when.

Jack Codera: And, and I do think that, you know, again, the reorganization we did, you know, we talked about this a little bit before, but, you know, we were seeing like anywhere from like a six to eight month learning curve for a new seller because these are completely new ad products. And our patients just kind of worth it. And so I'm I'm proud of the intervention that we took there. So while we did release a few sellers brought in that new senior East Coast leader I talked about who like I said is already out of the gate, you know, bringing big deals in the pipeline because he understood the space and was selling similar types products prior.

Ann Hand: When I talk about the Metastadium's opportunity in that event because Metastadium's own a large interest in the stadium event that's being created for the music artist or team talent, they not only get a large piece of the consumer monetization, they also have a large stake in the data.

Speaker Change: When I talk about the meta stadiums opportunity and that event because meta stadiums owns a large interest in the stadium event, that's being created for the music artist or team talent, they not only get a large piece of the consumer monetization.

Jack Codera: So he didn't have that same learning curve and he's got a vast role at X and and all of that. But what we're really are trying to do is collapse that learning curve times. So we lost a little momentum when you let three sellers go, you know, you're going to and you have to backfill, you're going to lose a little bit of time in 2Q, but it was the right long-term decision for the come.

Speaker Change: They also have a large stake in the data and so it's a journey that we're on I would say that first step is is getting more consumer monetization going further downstream and then data we think could be the icing on the cake down the road.

Ann Hand: And so it's a journey that we're on. I would say that first step is getting more consumer monetization going further downstream. And then data we think could be the icing on the cake down the road.

Ann Hand: And just one last one, of the potential new customers, new entrants, have some of them started to come from the Roblox program that you're now part of? Yeah, so, you know, there's a handful of us that were deemed last year's strategic partners. And certainly, when we're talking about things like the Olympics, while that didn't come through Roblox, I mean, they were right there, because it was such a groundbreaking event. You know, we're liaising with them in real time, because these great experiences that we're launching are a reflection of their platform as well.

Speaker Change: Okay, and just one last one of the.

Speaker Change: Potential new customers, new entrants have some of them started to come from the roadblocks a program program that you're now part of.

Jack Codera: Company? Okay, that's helpful. And then if I have one more, you know, I think it's really, really exciting to see, you know, this, this kick up in the repeat customers, you know, just this growing group of customers that like the product. I don't know if you track this, but do you have any sense, you know, if this was a customer in 2023, and then you move repeat them in 2024, you know, what's the scope of these repeat customers, the growth and, you know, their initial spend towards, you know, like say like a year later, if you have any calls Yeah, yeah, it's a good question.

Speaker Change: Yeah. So you know there's a handful of us that were deemed last year's strategic partners and certainly when we're talking about things like the Olympics, well that didn't come through roadblocks I mean, they were right there because it was such a a groundbreaking.

Speaker Change: Event, you know, we're liaising with them in real time, because these great experiences that we're launching are a reflection of their platform as well and and they want to be a part of it and promote it and be excited and we need their promotion. That's a wonderful thing for us if they're willing to promote it through their their reach which as you know three X r's.

Ann Hand: And, and they want to be a part of it and promote it and be excited. And we need their promotion. That's a wonderful thing for us, if they're willing to promote it through their, their reach, which is, you know, 3x ours. So we've certainly had some recommendations. We're currently right now, doing a couple things through the Roblox EDU groups of the education team. That's where they've come to us, they have a dedicated fund, specific to educational programs. And they have brought us now a couple deals that they are funding for us to launch education campaigns. So they have been the source of nominating us as a good party.

Jack Codera: You know, when I think about like a Chipotle, you know, we've done a couple engagements for them previously, we now have three new engagements in the pipeline for this year, so order of magnitude over two years, we did two engagements, now we have three, so inevitably those dollars are bigger. Some repeat work that we're pursuing right now for craft, we're excited about and very hopeful that will win, you know, that business, but remember that the craft program we did last year with lunchables was almost a $4 million campaign, so in that instance, you know, that's a pretty big, you know, bogey to hit for a repeat.

Speaker Change: So we've certainly had some recommendations. We're currently in right now I'm doing a couple of things through the roadblocks eating your group. So the education team, that's where they've come to us they have a dedicated fund specific to educational programs and they have brought US now a couple of deals that they are funding for us to la.

Speaker Change: Education campaigns. So they have been the source of of nominating us as a good party and the thing that's different is the other partners that are out there. They there they're more like traditional game studios, but you know I don't think that they would define themselves as a product company and certainly we.

Ann Hand: And the thing that's different is the other partners that are out there, they, they're more like traditional game studios. But, you know, I don't think that they would define themselves as a product company. And certainly, we do define ourselves as a product. So when we talk to Roblox leadership that, you know, what I see is that their eyes light up about things like pop-ups and ways that we can accelerate getting more brands in faster through the innovative products that we're launching. Action.

Jack Codera: But my, my gut would be, and I can definitely we can do some more analysis on it, Jack can give it to you, but my gut would be that anybody who's repeating is spending more. And the key is, you know, again, first, we want to see you come in and test a campaign. The second thing we want you to become is more like the way Sony and Universal have become do us, where we do several campaigns with them throughout the year.

Speaker Change: Do define ourselves as a product so when we talk to roadblocks leadership. The you know what I see is that their eyes light up about things like pop ups and ways that we can accelerate getting more brands and faster through the innovative products that we're launching.

Howard Halpern: Well, thanks and keep up the great work. Okay, thank you, Howard. Have a nice day. Thank you. We reach out to our question and answer session. I'd like to turn the floor back over pretty further, closing comments. Yeah, so, you know, we are pleased with our Q2 financial results. All things consider, you know, well revenues were relatively flat.

Speaker Change: Okay, well, thanks, and keep up the great work. Okay. Thank you Howard have a nice day.

Speaker Change: Thank you we reached end of our question and answer session I like to turn the floor back over for any further or closing comments.

Jack Codera: They're all discrete and dependent campaigns because they're for different movie launches, but when you add up to spend they spend with us, they spend north of a million dollars a year when you add up those unique campaigns. But then the third place we want to take you to is to say, from just a marketing spend efficiency point of view, don't keep popping in and out and we do a new build for you every time.

Speaker Change: Yeah.

Speaker Change: Yeah. So you know we are pleased with our Q2 financial results. All things considered you know while revenues were relatively flat, we adjusted and continue to deliver material decreases to our operating expenses and losses in our March to a profitable Q4, our confidence in the opportunity and our ability to execute is unwavering.

Ann Hand: We adjusted and continued to deliver material decreases to our operating expenses and losses in our March to a profitable Q4. Our confidence in the opportunity and our ability to execute is unwavering and our product approach is our differentiator, as I just said, that allows for scale and margin growth. I'd like to leave you with five key takeaways that capture our strategy, positioning, and the unmistakable traction that has us so excited about our product set for the future of the immersive world and media.

Jack Codera: Let's build a universal theater and let's leave it open all year long. You'll, you'll leverage that development cost over multiple campaigns, and then we can have that movie theater open for you all year long for to handle two X the amount of new releases. So, you know, whether it's a persistent world for Dave and Buster's, the way the Olympics build is now being leveraged for the Paralympics and for the winter games.

Speaker Change: And our product approach is our differentiator as I, just said that allows for scale and margin growth.

Speaker Change: I'd like to leave you with five key takeaways that capture our strategy positioning and the unmistakable traction that has us so excited about our product set for the future of the immersive world in media.

Ann Hand: The macro environment challenges come and go, but what cannot be disputed is the massive audience shift to gaming platforms that offer personalization and socialization that goes way beyond traditional video gaming. This is the future of social media, and it's here now. Our larger share of publishing content revenue leads to larger and longer brand programs, opening the door for recurring revenue growth and more predictable, stable cash flow. Our innovative technology and productization of repeatable elements establish a competitive edge and enable higher margins, and diversification, across immersive world platforms, improves our audience breadth, and the opportunity to create and participate in expanded revenue streams and ownable.com world.

Speaker Change: The macro environment challenges come and go but what cannot be disputed is the massive audience shift to gaming platforms that offer personalization and socialization that goes way beyond traditional video gaming. This is the future of social media and it's here now.

Jack Codera: You know, what we really are trying to impress upon people is to make that progression from the one time campaign trial to multiple campaigns, because now you understand the channel to the smart thing to do is to create a persistent strategy, where it's an always on strategy. That's helpful. You know, congrats on the progress. I'll have fucking cute. Thank you.

Speaker Change: Our larger share of publishing content revenue leads to larger and longer brand programs opening the door for recurring revenue growth and more predictable stable cash flow.

Howard Halpern: Next question today is coming from Howard Helper from Tech with Trilina Zellath. Hi Howard. Hi, hi, hi, you got me? Yep. All right. Okay.

Speaker Change: Our innovative technology and product innovation are repeatable elements establish a competitive edge and enable higher margins.

Speaker Change: And diversification.

Speaker Change: Across immersive world platforms improves our audience breadth and the opportunity to create and participate and expanded revenue streams and own them more vulnerable dotcom world.

Howard Halpern: Can you talk a little bit more about the opportunity that the data analytics side is will present to you over the longer term? Yeah, so right now inside other people's platforms, namely in Roblox, we do have additional kind of analytical tools and insights. And often when we're pitching a brand, because we are a one step shop, we say we want to build your experience. We also want to be the people who continue to maintain and operate it with updates to keep it lively.

Ann Hand: Expertise and driving greater commerce through digital to physical crossover is our key. As I said earlier, we stand in the shoes of our brand partners with a P&L mindset. And with that, we thank you for your interest and your ongoing support. Have a nice. Thank you, that does conclude today's telecarbons webcast and we disconnect your line at this time and have a wonderful day. We thank you for your participation today. Goodbye.

Expertise in driving greater commerce through digital to physical crossover is our key as I said earlier, we stand in the shoes of our brand partners with a P&L mindset.

Speaker Change: And with that we thank you for your interest and your ongoing support.

Speaker Change: A nice day.

Speaker Change: Thank you that does conclude today's teleconference and webcast you may disconnect. Your line at this time and have a wonderful day. We thank you for your participation today Goodbye.

Howard Halpern: We want to pull from our shelf of products to build that faster and make it more engaging and exciting for you. At the same time, we want to throw in additional modules like that rewards center. You know, so that's ways that we can help a brand. And further incentivize players to keep coming back and earning and game rewards, but they could also tie to physical rewards. So that's one more way that we can help a brand capture that consumer and convert them into a physical consumer of theirs.

Howard Halpern: And then often, you know, because we have kind of very advanced strong analytics and reporting, it's also the way we report on performance and other insights. So inside the universe today, when we're taking down these large programs and I say we're end to end, it has all of those, those elements in it. And we also will do influencer marketing to further amplify off platform. We'll do other off platform media buys. Maybe you want to manage a budget for you and buy some YouTube advertising across across the campaign, too. So when I say one step shop and the data component today, that's where we are.

Howard Halpern: But when you start to think about the ways that we can capture a consumer in a web environment like a landing page and incentivize them with new rewards, we can now build a relationship with them directly. We can capture their email and start allowing a brand ourselves to have more communication and drive more more commerce with them. When I talk about the metastatiums opportunity in that event, because metastatiums own a large interest in the stadium event that's being created for the music artist or team talent.

Howard Halpern: They not only get a large piece of the consumer monetization, they also have a large stake in the data. And so it's a journey that we're on. I would say that first step is getting more consumer monetization going further downstream and then data we think could be the icing on the cake down the road.

Howard Halpern: Okay, and just one last one of the potential new customers, new entrants have some of them started to come from the Roblox program, program that you're now part of. Yeah, so, you know, there's a handful of us that were deemed last year strategic partners, and certainly when we're talking about things like the Olympics, well, that didn't come through Roblox. I mean, they were right there because with such a groundbreaking event, you know, we're liaising with them in real time because these great experiences that we're launching are a reflection of their platform as well, and they want to be a part of it and promote it and be excited, and we need their promotion.

Howard Halpern: That's a wonderful thing for us that they're willing to promote it through their their reach, which is, you know, 3x are. So we've certainly had some recommendations we're currently right now, I'm doing a couple things through the Roblox EDU Group, so the education team, that's where they've come to us, they have a dedicated fund specific to educational programs, and they have brought us now a couple deals that they are funding for us to launch education campaigns.

Howard Halpern: So they have been the source of nominating us as a good party, and the thing that's different is the other partners that are out there, they're more like traditional game studios, but, you know, I don't think that they would define themselves as a product company, and certainly we do define ourselves as a product. So when we talk to Roblox leadership, you know, what I see is that their eyes light up about things like pop-ups, and ways that we can accelerate getting more brands and faster through the innovative products that we're launching.

Howard Halpern: Okay, well, thanks, and keep up the great work.

Unknown Executive: Okay, thank you, Howard, have a nice day. Thank you.

Ann Hand: We reach out to our question and answer session. I just turn the floor back over to further closing comments. Yeah, so, you know, we are pleased with our Q2 financial results, all things considered, you know, while revenues were relatively flat, we adjusted and continued to deliver material decreases to our operating expenses and losses in our March to a profitable Q4. Our confidence in the opportunity and our ability to execute is unwavering, and our product approach is our differentiator, as I just said, that allows for scale and margin growth.

Ann Hand: I'd like to leave you with five key takeaways that capture our strategy positioning and the unmistakable traction that has is so excited about our product set for the future of the immersive world and media. The macro environment challenges come and go, but what cannot be disputed is the massive audience shift to gaming platforms that offer personalization and socialization that goes way beyond traditional video gaming. This is the future of social media and it's here now.

Ann Hand: Our larger share of publishing content revenue leads to larger and longer brand programs opening the door for recurring revenue growth and more predictable stable cash flow. Our innovative technology and productization of repeatable elements establish a competitive edge and enable higher margins. And diversification across immersive world platforms improves our audience breadth and the opportunity to create and participate in expanded revenue streams and ownable phoneable dot com world. Expertise in driving greater commerce through digital to physical crossover is our key. As I said earlier, we stand in the shoes of our brand partners with a P&L mindset.

Unknown Executive: And with that, we thank you for your interest and your ongoing support. Have a nice day. Thank you. That does conclude today's telecomments webcast and we disconnect your line at this time and have a wonderful day. We thank you for your participation today.

Unknown Executive: Goodbye.