Enthusiast Gaming Holdings Inc (EGLX) 2022 Q4 法說會逐字稿

Hello and welcome to the Enthusiast Gaming fiscal fourth-quarter and full year 2022 financial results conference call. (Operator Instructions) Please note this event is being recorded.

您好，歡迎參加 Enthusiast Gaming 第四財季和 2022 年全年財務業績電話會議。 （操作員說明）請注意正在記錄此事件。

I would now like to turn the conference over to Eric Bernofsky, Chief Corporate Officer. Please go ahead.

我現在想將會議轉交給首席公司官 Eric Bernofsky。請繼續。

Thank you, operator. Good afternoon, everyone, and thank you for joining Enthusiast Gaming's fourth-quarter and year-end 2022 financial and operating results call. My name is Eric Bernofsky, the Chief Corporate Officer of Enthusiast Gaming. With me today is our new Chief Executive Officer, Nick Brien; our Chief Financial Officer, Alex Macdonald; President, Bill Kara; and SVP of Legal, JB Elliott. We'll begin with some prepared remarks from Nick and Alex before opening the floor to questions.

謝謝你，運營商。大家下午好，感謝您參加 Enthusiast Gaming 的 2022 年第四季度和年底財務和運營業績電話會議。我叫 Eric Bernofsky，是 Enthusiast Gaming 的首席公司官。今天和我在一起的是我們的新任首席執行官 Nick Brien；我們的首席財務官 Alex Macdonald；總裁比爾·卡拉；和法律高級副總裁 JB Elliott。在開始提問之前，我們將從 Nick 和 Alex 準備好的發言開始。

Before we begin, I'd like to remind everyone today's presentation contains forward-looking information that involves known and unknown risks and uncertainties and other factors that could cause actual events to differ materially from current expectations. These statements should not be read as assurances of future performance or results. Such statements involve known and unknown risks, uncertainties, and other factors that may cause actual results, performance, or achievements to be materially different from those implied by such statements. A more complete discussion of the risks and uncertainties facing the company appear in the company's management discussion and analysis for the three-month period and year ending December 31, 2022, which are available under the company's profiles on SEDAR and EDGAR, as well as on the company's website, enthusiastgaming.com. Your caution not to place undue reliance on these forward-looking statements, which speak only as of the date of this presentation, the company disclaims any intention or obligation, except to the extent required by law, to update and revise any forward-looking statements as a result of new information, future events, or for any other reason.

在我們開始之前，我想提醒大家今天的演示文稿包含前瞻性信息，涉及已知和未知的風險和不確定性以及可能導致實際事件與當前預期存在重大差異的其他因素。這些陳述不應被解讀為對未來業績或結果的保證。此類陳述涉及已知和未知的風險、不確定性和其他因素，這些因素可能導致實際結果、業績或成就與此類陳述所暗示的結果、業績或成就存在重大差異。對公司面臨的風險和不確定性的更完整討論出現在公司管理層對截至 2022 年 12 月 31 日的三個月期間和年度的討論和分析中，這些討論和分析可在 SEDAR 和 EDGAR 上的公司簡介以及公司網站 enthusiastgaming.com。請注意不要過分依賴這些前瞻性陳述，這些陳述僅在本演示文稿發布之日起生效，除法律要求的範圍外，公司不承擔更新和修改任何前瞻性陳述的任何意圖或義務由於新信息、未來事件或任何其他原因。

Now, it's with great pleasure I'd like to turn the call over to Nick Brien, CEO of Enthusiast Gaming. Go ahead, Nick.

現在，我很高興將電話轉給 Enthusiast Gaming 的首席執行官 Nick Brien。去吧，尼克。

Thank you, Eric. Good afternoon. It's a pleasure to be with you all today. Thank you for joining us on our fourth-quarter and 2022 year-end financial and operating results conference call. I'm looking forward to continuing to get to know you, our shareholders and analyst community, and share my insights on why I believe Enthusiast Gaming is uniquely positioned to become a leading player in the gaming media and entertainment industry for many years to come.

謝謝你，埃里克。下午好。很高興今天和大家在一起。感謝您參加我們的第四季度和 2022 年底財務和經營業績電話會議。我期待著繼續了解您、我們的股東和分析師社區，並分享我的見解，為什麼我相信 Enthusiast Gaming 具有獨特的優勢，可以在未來許多年成為遊戲媒體和娛樂行業的領先者。

I'm very excited to be your Chief Enthusiast Officer. Enthusiast has built an incredible foundation for growth, a broad portfolio of gaming assets that reflect the diverse entertainment needs and habits of younger people. I'm confident that when the unique power of our community, creators, content, and commerce are fully integrated, meaningful long-term value will be created for all stakeholders.

我很高興成為你們的首席愛好者官。 Enthusiast 已經建立了令人難以置信的增長基礎，廣泛的遊戲資產組合反映了年輕人多樣化的娛樂需求和習慣。我相信，當我們的社區、創作者、內容和商業的獨特力量完全整合時，將為所有利益相關者創造有意義的長期價值。

Our 2022 financial and operating results continue to demonstrate that Enthusiast Gaming is on a path to achieving sustained profitability. The company performed well in each of its main KPIs, including revenue, gross profit, gross margin, direct sales, and subscriptions, despite challenging macroeconomic conditions that impacted programmatic advertising revenue in the second half of the year.

我們 2022 年的財務和經營業績繼續表明 Enthusiast Gaming 正在實現持續盈利。儘管具有挑戰性的宏觀經濟條件影響了下半年的程序化廣告收入，但該公司在其每項主要 KPI 上都表現良好，包括收入、毛利、毛利率、直銷和訂閱。

Notwithstanding this challenge, we continue to diversify the business away from commoditized low-margin revenue towards higher-margin, solutions-based mix, which is evident in the rapid gross margin acceleration, up 870 basis points in 2022. Its margin growth has been fueled by strong demand for bespoke content and brand solutions, subscription, and product-based offerings, as well as strong performance within our Pocket Gamer Connect live event division.

儘管面臨這一挑戰，我們繼續將業務多元化，從商品化的低利潤收入轉向利潤更高、基於解決方案的組合，這在毛利率的快速加速中很明顯，到 2022 年增長了 870 個基點。它的利潤增長得到了推動對定制內容和品牌解決方案、訂閱和基於產品的產品的強勁需求，以及我們 Pocket Gamer Connect 現場活動部門的強勁表現。

Finally, our investment in 2022, and in particular in quarter four, to launch a content initiative with the National Football League called Tuesday Night Gaming, gained significant momentum exiting the year as evidenced by the growing fan engagement and new brand participation in the series.

最後，我們在 2022 年，尤其是第四季度的投資，與美國國家橄欖球聯盟 (National Football League) 一起發起了一項名為“週二晚上游戲”的內容計劃，這一舉措在今年取得了巨大的發展勢頭，球迷參與度和新品牌對系列賽的參與度不斷提高就證明了這一點。

In the few short weeks I've been here, I've been meeting with internal leader in Enthusiast and doing a deep dive on the business. I'm looking forward to continuing that work intently in the next coming weeks.

在我來這裡的短短幾週內，我一直在與 Enthusiast 的內部領導會面，並對業務進行深入研究。我期待著在接下來的幾週內繼續這項工作。

We continue to see massive disruption across the media and entertainment landscape, and with disruption comes huge opportunities. Gaming is the largest and fastest-growing entertainment vertical in the world, with more than 3 billion people playing games, creating and consuming content, and sharing fan experiences. I believe the entertainment industry is on the cusp of great change. From how media is consumed to how media is bought, change is the one constant. I believe that Enthusiast can swiftly evolve its business model to capture an increasing market share.

我們繼續看到媒體和娛樂領域的巨大顛覆，而顛覆帶來了巨大的機遇。遊戲是世界上規模最大、增長最快的垂直娛樂領域，有超過 30 億人玩遊戲、創造和消費內容以及分享粉絲體驗。我相信娛樂業正處於巨變的風口浪尖。從媒體的消費方式到媒體的購買方式，變化是不變的。我相信 Enthusiast 可以迅速發展其商業模式以佔領不斷增長的市場份額。

Subsequent to the year end, we rose to become the number one gaming property in the United States, with unique visitor traffic for the month of January, as measured by Comscore, which is a leading independent media measurement firm, and it's certainly one of the most widely used measurement sources by advertisers and agencies for making ad buying decisions.

年底之後，根據領先的獨立媒體測量公司 Comscore 的測量，我們一躍成為美國第一大博彩公司，1 月份的訪客流量獨一無二，而且它無疑是其中之一廣告商和代理商在做出廣告購買決策時使用最廣泛的衡量來源。

We have grown by 350% over the past three years, on the path to becoming the number one destination in gaming. This ranks Enthusiast Gaming as the top three fastest-growing property on the Comscore Top 100 Properties list. Becoming number one in the games category is a major achievement. And it's both testament to our platform's ability to reach the largest and most dedicated audience as gamers, as well as a clear signal to the world's leading brands that we are the number one company to work with in gaming in the biggest media market in the world.

我們在過去三年中增長了 350%，正在成為遊戲業的第一大目的地。這將 Enthusiast Gaming 列為 Comscore 前 100 家資產列表中增長最快的前三名資產。成為遊戲類別的第一名是一項重大成就。這既證明了我們的平台能夠覆蓋最大和最忠實的遊戲玩家受眾，也向世界領先品牌發出明確信號，表明我們是全球最大媒體市場遊戲領域合作的第一大公司.

The opportunity for ad buyers is very clear. And Enthusiast Gaming has been building a leadership position in being able to deliver scaled media and content solutions that are fun for fans and safe for brands.

廣告買家的機會非常明顯。 Enthusiast Gaming 一直在建立領導地位，能夠提供規模化的媒體和內容解決方案，這些解決方案對粉絲來說很有趣，對品牌來說是安全的。

Comscore has validated what many of the world's largest brands have already come to know. We are the company that they're turning to execute on an important need, to engage younger, hard-to-reach audiences through authentic content and engaging community experiences.

Comscore 已經驗證了許多世界上最大的品牌已經知道的事情。我們是他們轉向執行重要需求的公司，通過真實的內容和引人入勝的社區體驗來吸引年輕的、難以接觸到的觀眾。

Let me be clear about one thing; I believe Enthusiast Gaming is on the cusp of something really special. The portfolio of assets is really impressive, and a lot of foundational work has been done. And I believe my role is to focus on unlocking and leveraging these various assets and leading ad tech to optimize inventory with first-party data to enhance our offerings and prepare for a cookieless future and gain a wider reach of advertisers and marketeers as they continue to look for more effective and efficient ways to connect and engage with valuable younger audiences.

讓我澄清一件事；我相信 Enthusiast Gaming 正處於真正特別的風口浪尖。資產組合確實令人印象深刻，並且已經完成了許多基礎工作。我相信我的職責是專注於解鎖和利用這些不同的資產和領先的廣告技術，以使用第一方數據優化庫存，以增強我們的產品並為無 cookie 的未來做準備，並在廣告商和營銷人員繼續尋找更有效和高效的方式來聯繫和吸引有價值的年輕觀眾。

Now, turning to our 2022 results. In 2022, we delivered solid performance across all of our key performance indicators. Revenue grew 21% to CAD203 million. The year-over-year increase in revenue was driven by increased direct sales, including both new logo and repeat customers, higher subscription revenue, the acquisitions and growth of Addicting Games and U.GG properties.

現在，轉向我們 2022 年的結果。 2022 年，我們在所有關鍵績效指標上都取得了穩健的表現。收入增長 21% 至 2.03 億加元。收入的同比增長是由直接銷售的增長推動的，包括新徽標和回頭客、更高的訂閱收入、Addicting Games 和 U.GG 資產的收購和增長。

While revenue was impacted by a macroeconomic pressure on the advertising rates, particularly in quarter three and quarter four, a continued focus on higher margin revenue diversification pushed 2022 gross profit to $63.5 million, up 68% from 2021. Quarter four gross profit reached an all-time high of $18.1 million, up from $13.7 million in quarter four of 2021.

雖然收入受到宏觀經濟對廣告費率的壓力的影響，尤其是在第三季度和第四季度，但對利潤率更高的收入多元化的持續關注將 2022 年的毛利潤推高至 6350 萬美元，比 2021 年增長 68%。第四季度的毛利潤達到了全部- 創下 1810 萬美元的歷史新高，高於 2021 年第四季度的 1370 萬美元。

Gross margin expanded 870 basis points to 31.3% in 2022 and reached 33.5% in quarter four, both records for their respective periods. The increase in gross margin continues to be driven mainly by the strong performance of higher direct sales and subscription growth.

毛利率在 2022 年擴大了 870 個基點，達到 31.3%，在第四季度達到了 33.5%，均創下了各自時期的記錄。毛利率的增長繼續主要受到更高直接銷售和訂閱增長的強勁表現的推動。

On direct sales, I'm pleased to report a strong end to the year. Direct sales grew 69% to more than $37 million in 2022, compared to $22 million in 2021, and up from only $5 million two years ago in 2020. In quarter four, direct sales grew to $12.8 million, up from $8.8 million in quarter four of 2021. Renewals and additional business with existing customers accounted for 50% of direct sales. This number is down from quarter three to account for the strong book of new business generated off the back of our new NFL Tuesday Night Gaming program, which was launched in September.

在直銷方面，我很高興地報告今年年底表現強勁。到 2022 年，直接銷售額增長 69%，超過 3700 萬美元，而 2021 年為 2200 萬美元，而兩年前的 2020 年僅為 500 萬美元。第四季度，直接銷售額從第四季度的 880 萬美元增長到 1280 萬美元到 2021 年。與現有客戶的續訂和額外業務佔直接銷售額的 50%。這個數字比第三季度有所下降，因為我們在 9 月推出的新 NFL 星期二夜間遊戲計劃產生了強勁的新業務。

I do want to spend some time, more time, on the NFL Tuesday Night Gaming tentpole. This deal has already been transformational for Enthusiast Gaming. But those that may not be so familiar, NFL Tuesday Night Gaming is a first-of-its-kind gaming collaboration between Enthusiast Gaming and the NFL that brings together NFL players and legends, and top gaming content creators.

我確實想花一些時間，更多的時間在 NFL 週二晚上游戲的支柱上。這筆交易已經為 Enthusiast Gaming 帶來了變革。但那些可能不太熟悉的人，NFL Tuesday Night Gaming 是 Enthusiast Gaming 和 NFL 之間的首次遊戲合作，匯集了 NFL 球員和傳奇人物，以及頂級遊戲內容創作者。

The program debuted in September 2022 and streamed weekly on YouTube and Twitter throughout the 2022-2023 NFL season. We have unlocked value for amazing brands by placing them at the intersection of gaming and sports culture, while reaching a new audience demographic at the same time.

該節目於 2022 年 9 月首次亮相，並在整個 2022-2023 NFL 賽季期間每週在 YouTube 和 Twitter 上播放一次。我們通過將優秀品牌置於遊戲和體育文化的交匯點，同時接觸到新的受眾群體，從而釋放了它們的價值。

In season one, we worked with incredible media sponsors, such as Hulu Plus, Live TV, Xbox, TurboTax, Verizon, Paramount Plus, Disney Plus, Campbell Soups, Hasbro, and the Sour Patch Kids. It is important to note that many of these media sponsors are new to Enthusiast Gaming, which is a great testament to our teams for creating this show and being able to sell through in an extremely short period of time.

在第一季中，我們與出色的媒體贊助商合作，例如 Hulu Plus、Live TV、Xbox、TurboTax、Verizon、Paramount Plus、Disney Plus、Campbell Soups、孩之寶和 Sour Patch Kids。重要的是要注意，這些媒體贊助商中有許多是 Enthusiast Gaming 的新手，這很好地證明了我們的團隊創造了這個節目並能夠在極短的時間內銷售。

We are already in the planning stages for season two, which, given more lead time and following the success of a successful season one, we are excited about this part of our business as a driver of meaningful higher direct sales numbers in 2023, including quarter one, and delivering measurable ROI on our initial investment in 2022 to launch the program.

我們已經進入第二季的規劃階段，考慮到更多的準備時間和第一季的成功，我們很高興我們的這部分業務成為 2023 年直接銷售數量顯著增加的推動力，包括季度第一，我們在 2022 年啟動該計劃的初始投資實現了可衡量的投資回報率。

We previously mentioned because of our work with the NFL, we'd already received inbound requests from two other major professional sports leagues about launching a similar program for them. I'm pleased to report that these discussions are progressing, and we will provide further updates as necessary. But again, these opportunities speak to the incredible programming our team is able to produce and execute on, that I reiterate is relevant and fun for fan audiences while delivering tremendous value for our brand partners.

我們之前曾提到，由於我們與 NFL 的合作，我們已經收到了來自其他兩個主要職業體育聯盟的入站請求，希望為他們推出類似的計劃。我很高興地報告這些討論正在取得進展，我們將在必要時提供進一步的更新。但同樣，這些機會說明了我們團隊能夠製作和執行的令人難以置信的節目，我重申這對粉絲觀眾來說是相關且有趣的，同時為我們的品牌合作夥伴帶來巨大價值。

Turning to subscriptions, revenue was 54% in 2022 -- it grew 54% in 2022 to $14.5 million. At year end, the company had 262,000 paying subscribers compared to 220,000 at the end of 2021. I believe this is a strong area of high-margin growth for the business, and one that I believe there is considerable runway ahead.

談到訂閱，2022 年收入為 54%——到 2022 年增長 54% 至 1450 萬美元。截至年底，該公司擁有 262,000 名付費用戶，而 2021 年底為 220,000 名。我認為這是該業務高利潤增長的強勁領域，而且我相信未來還有相當長的路要走。

In closing, I want to reiterate my enthusiasm for what is ahead. I believe that despite the macroeconomic uncertainty that continues, we have the diversified business model to not only survive but to thrive. I'll now turn over the call to Alex for further commentary on our financial results. Alex?

最後，我想重申我對未來的熱情。我相信，儘管宏觀經濟的不確定性仍在繼續，但我們擁有多元化的商業模式，不僅可以生存，而且可以繁榮發展。我現在將把電話轉給亞歷克斯，以進一步評論我們的財務業績。亞歷克斯？

Thank you, Nick, our Chief Enthusiast Officer. And thank you everyone else, our shareholders, lending partners, analysts, and other stakeholders for joining us today on this call regarding our fourth quarter and year-end, December 31, 2022.

謝謝您，尼克，我們的首席愛好者官。感謝其他所有人，我們的股東、貸款合作夥伴、分析師和其他利益相關者今天加入我們的電話會議，討論我們 2022 年 12 月 31 日的第四季度和年底。

The company showed strength this quarter in many areas, setting records across a number of KPIs, both financial and non-financial. At the same time, it was a period impacted by both the macroeconomic environment and pressures in our sector, specifically much lower CPMs in the programmatic advertising markets. I will speak about these dynamics as they relate to the financial results momentarily, but first, here are my usual notes.

該公司本季度在許多領域都表現出了實力，在財務和非財務方面的多項 KPI 均創下記錄。與此同時，這是一個受到宏觀經濟環境和我們行業壓力影響的時期，特別是程序化廣告市場的每千次展示費用要低得多。我將暫時談論這些動態，因為它們與財務結果有關，但首先，這是我通常的筆記。

I note that our results are presented in Canadian dollars. I note that the significant majority of our revenues and expenses are measured in US dollars and are translated into Canadian dollars for presentation in our financial statements. The exchange rate between the US dollar and our presentation currency of the Canadian dollar should be monitored and considered when analyzing or forecasting results.

我注意到我們的結果以加元表示。我注意到，我們的大部分收入和支出均以美元計量，並在我們的財務報表中換算成加元。在分析或預測結果時，應監測和考慮美元與我們的呈報貨幣加元之間的匯率。

And I note that our business is typically affected by seasonal trends in digital advertising, with sequential increases each quarter throughout the year, driven by increasing ad prices and demand, which peaks in Q4. This seasonality is isolated to our media and content advertising revenue streams. I note that the typical seasonal pattern was disrupted in 2022, with Q4 programmatic CPMs showing almost no significant increase compared to earlier quarters in the year, which I will discuss shortly. But now let's speak about the financial results.

我注意到，我們的業務通常受到數字廣告季節性趨勢的影響，在廣告價格和需求增加的推動下，全年每個季度都會出現連續增長，這在第四季度達到頂峰。這種季節性獨立於我們的媒體和內容廣告收入流。我注意到典型的季節性模式在 2022 年被打亂，與今年早些時候的季度相比，第四季度程序化每千次展示費用幾乎沒有顯著增長，我將在稍後討論這一點。但現在讓我們談談財務結果。

Q4 revenue was $54 million, down 5% from Q4 2021 revenue of $57 million. Q4 revenue by source was as follows: media and content, $49 million; subscription, $3.8 million; and esports and entertainment, $1.1 million.

第四季度收入為 5400 萬美元，比 2021 年第四季度的 5700 萬美元下降 5%。按來源劃分的第四季度收入如下：媒體和內容，4900 萬美元；認購費，380 萬美元；電子競技和娛樂，110 萬美元。

The Q4 media and content revenue of $49 million compares to $53.2 million reported in Q4 2021, a decrease of 8%. The decrease was almost entirely driven by a decrease in RPM caused by lower CPMs in the programmatic markets. Web RPMs were down 38% year over year, and video RPMs were down 12% year over year in Q4.

與 2021 年第四季度報告的 5320 萬美元相比，第四季度媒體和內容收入為 4900 萬美元，下降了 8%。這一下降幾乎完全是由於程序化市場的每千次展示費用較低導致每千次展示費用下降所致。網絡 RPM 同比下降 38%，視頻 RPM 在第四季度同比下降 12%。

These market price decreases in programmatic were offset by more direct sales. Direct sales were $12.8 million in Q4 versus $8.8 million in Q4 last year, a 45% increase, with the majority of direct sales being recognized in media and content.

這些程序化市場價格的下降被更多的直接銷售所抵消。與去年第四季度的 880 萬美元相比，第四季度的直接銷售額為 1280 萬美元，增長了 45%，其中大部分直接銷售額在媒體和內容中得到認可。

Q4 subscription revenue was $3.8 million, up 23% from approximately $3.1 million in Q4 last year. This increase was largely driven by an increase in paid subscribers, which were 264,000 as at December 31, 2022, as compared to 218,000 as at December 31, 2021. This was also paired with a higher yield on a per-subscriber basis.

第四季度訂閱收入為 380 萬美元，比去年第四季度的約 310 萬美元增長 23%。這一增長主要是由於付費用戶增加所致，截至 2022 年 12 月 31 日，付費用戶為 264,000 人，而截至 2021 年 12 月 31 日為 218,000 人。這也與更高的每用戶收益率相結合。

Q4 esports and entertainment revenue was $1.1 million, up 91% from $0.6 million in Q4 last year. This increase was driven by more sponsorship revenue in Luminosity Gaming, and by increased revenue from our Pocket Gamer series, which held both a Pocket Gamer Connects Jordan event and an inaugural PGC Leaders Summit in Riyadh in Q4.

第四季度電子競技和娛樂收入為 110 萬美元，比去年第四季度的 60 萬美元增長 91%。這一增長是由 Luminosity Gaming 的讚助收入增加以及我們的 Pocket Gamer 系列收入增加推動的，該系列在第四季度在利雅得舉辦了 Pocket Gamer Connects Jordan 活動和首屆 PGC 領導人峰會。

Certainly, in Q4, the company's business model continued to be tested against macro headwinds, particularly in the digital advertising market, as seen in the CPM movements. This had an impact on overall revenue. However, at the same time, the company set records across both direct sales and subscription, and the higher margins of these revenue streams make the company inherently better positioned to absorb pricing fluctuations, and this is enabling the business to grow despite the macro headwinds. This is most evident in gross profit.

當然，在第四季度，公司的商業模式繼續經受宏觀逆風的考驗，尤其是在數字廣告市場，正如 CPM 走勢所示。這對整體收入產生了影響。然而，與此同時，該公司在直銷和訂閱方面都創下了記錄，這些收入流的更高利潤率使該公司在吸收價格波動方面處於先天優勢，這使得業務能夠在宏觀逆風的情況下實現增長。這在毛利中最為明顯。

Gross profit was an all-time high of $18.1 million in Q4, up 32% from $13.7 million in Q4 2021. This propelled the gross margin to an all-time high of 33.5%, which is up 950 basis points from 24% in Q4 2021.

第四季度毛利潤創歷史新高 1810 萬美元，比 2021 年第四季度的 1370 萬美元增長 32%。這推動毛利率達到 33.5% 的歷史新高，比第四季度的 24% 增長 950 個基點2021.

Total operating expenses were $30.3 million, up from $25.7 million in Q4 of last year. Operating expenses in Q4 include non-cash items of amortization and depreciation of $3.5 million and share-based compensation of $2.4 million, as well as a foreign exchange loss of $0.7 million. Also included in Q4 operating loss is a net impact from investments in NFL TNG of $3.7 million. After adjusting for these items, it is notable that the remaining operating loss fell below $2 million, or approximately 4% of revenue.

總運營費用為 3030 萬美元，高於去年第四季度的 2570 萬美元。第 4 季度的運營費用包括 350 萬美元的非現金攤銷和折舊項目和 240 萬美元的股份補償，以及 70 萬美元的匯兌損失。第四季度的運營虧損還包括對 NFL TNG 投資的淨影響 370 萬美元。對這些項目進行調整後，值得注意的是，剩餘運營虧損降至 200 萬美元以下，約佔收入的 4%。

In Q3 and Q4 2022, the company undertook a number of cost-cutting measures, including the divestiture of certain legacy editorial assets, the elimination of approximately 10% of headcount in addition to the divestiture, and reductions of other operating expenses, primarily related to technology and content expenses. In aggregate, when excluding the NFL TNG investments, the company's recurring quarterly cash-based OpEx was approximately $2 million lower in Q4 as compared to Q2 2022.

2022 年第三季度和第四季度，公司採取了多項削減成本的措施，包括剝離某些遺留編輯資產、除剝離外裁減約 10% 的員工，以及減少其他運營費用，主要與技術和內容費用。總的來說，如果不包括 NFL TNG 投資，與 2022 年第二季度相比，該公司第四季度經常性的基於現金的季度運營支出減少了約 200 萬美元。

When including all these items and other items affecting net loss, net loss was $12 million for Q4, down from $13.3 million (sic - see MD&A, "$12.9 million") in Q4 2021, resulting in a net loss per share, both basic and diluted, of $0.08 in Q4, down from $0.10 in Q4 2021.

當包括所有這些項目和影響淨虧損的其他項目時，第四季度的淨虧損為 1200 萬美元，低於 2021 年第四季度的 1330 萬美元（原文如此 - 參見 MD&A，“1290 萬美元”），導致基本和每股淨虧損稀釋後，第四季度為 0.08 美元，低於 2021 年第四季度的 0.10 美元。

Turning to the balance sheet, the company ended the year with $7.4 million in cash and in addition had an available operating line of $5 million, for a total available cash of $12.4 million as at December 31, 2022. We made operational investments in NFL TNG in Q3 and Q4 of both cash and working capital, but have now built the associated receivables, and have contracts in hand from a number of Fortune 500 companies, including Microsoft, Mondelez, and Verizon, which will provide cash flows from NFL TNG going forward.

轉向資產負債表，公司在年底擁有 740 萬美元現金，此外還有 500 萬美元的可用運營線，截至 2022 年 12 月 31 日，可用現金總額為 1240 萬美元。我們對 NFL TNG 進行了運營投資第三季度和第四季度的現金和營運資金，但現在已經建立了相關的應收賬款，並與多家財富 500 強公司簽訂了合同，包括 Microsoft、Mondelez 和 Verizon，這些公司將提供 NFL TNG 未來的現金流.

Also, subsequent to the year end, the company's lender agreed to extend the maturity date of the company's term and operating facilities for an additional 12 months, from December 31, 2023, to December 31, 2024. The term facility is classified as a current liability on the December balance sheet, but will be subsequently moved back to long-term.

此外，在年底之後，公司的貸方同意將公司期限和運營設施的到期日再延長 12 個月，從 2023 年 12 月 31 日延長至 2024 年 12 月 31 日。期限設施被歸類為流動12 月資產負債表上的負債，但隨後將移回長期負債。

And now I want to talk about what to expect in 2023. We continue to expect profitability for the 2023 year. Here are the notable items which will impact how the financial results will unfold. First on CPMs. Throughout Q3 and Q4, we saw a deterioration in CPMs in the programmatic markets. As mentioned earlier, this had an impact on revenue growth in the second half of 2022.

現在我想談談 2023 年的預期。我們繼續期待 2023 年的盈利能力。以下是將影響財務結果如何展開的值得注意的項目。首先是每千次展示費用。在整個第三季度和第四季度，我們看到程序化市場的每千次展示費用有所下降。如前所述，這對 2022 年下半年的收入增長產生了影響。

Had our RPMs stayed flat year over year in Q4 2022 as compared to Q4 2021, I am confident that we would have already been profitable in Q4. However, our job is to seek profit at all times, not just in good times. To that end, we are anticipating and planning for RPMs which we expect to be lower year over year until at least Q3 2023.

與 2021 年第四季度相比，如果 2022 年第四季度我們的 RPM 同比持平，我相信我們在第四季度已經實現盈利。但是，我們的工作是時刻追求利潤，而不僅僅是在景氣時期。為此，我們正在預測和規劃 RPM，我們預計至少在 2023 年第三季度之前，RPM 將逐年下降。

Second on direct sales. We expect similar patterns to prior years with a material year-over-year growth in direct sales, including sequential increases following Q1 for each quarter throughout 2023. Incremental direct sales revenue will lead to gross margins continuing to expand in 2023.

二是直銷。我們預計與往年類似的模式與直接銷售同比大幅增長，包括整個 2023 年第一季度之後每個季度的連續增長。增加的直接銷售收入將導致毛利率在 2023 年繼續擴大。

Third on NFL TNG. We expect NFL TNG to be a contributor to profitability in 2023. We made a sizable investment in NFL TNG in 2022 and the program is proving its ability to quickly start generating ROI. Subsequent to the year end, NFL TNG has run a number of profitable episodes. NFL TNG also serves as a flagship product for direct sales, generating new leads and new business which can be expanded into other products and media supporting the overall direct sales number.

NFL TNG 排名第三。我們預計 NFL TNG 將在 2023 年為盈利做出貢獻。我們在 2022 年對 NFL TNG 進行了大量投資，該計劃正在證明其能夠快速開始產生投資回報率。年底之後，NFL TNG 已經進行了多次盈利。 NFL TNG 還作為直銷的旗艦產品，產生新的線索和新業務，可以擴展到支持整體直銷數量的其他產品和媒體。

Fourth on subscription. We expect continued growth in paid subscribers throughout 2023. Historically, we have acquired subscribers only through organic channels. Subsequent to the year end, we introduced a paid user acquisition pipeline which will support subscription revenue growth in 2023. Subscription revenue has an outsized impact on profitability as it accounts for less than 10% of revenue but greater than 20% of gross profit.

四是訂閱。我們預計整個 2023 年付費用戶數量將持續增長。從歷史上看，我們僅通過自然渠道獲得用戶。年底之後，我們引入了付費用戶獲取渠道，這將支持 2023 年訂閱收入的增長。訂閱收入對盈利能力的影響非常大，因為它佔收入的比例不到 10%，但佔毛利潤的比例超過 20%。

And fifth, our events business is thriving in a post-COVID era with all recent large in-person events both in 2022 and in 2023 setting attendance records. The above represents a continued strategic diversification into higher-yield and higher-margin revenue streams which will allow us to reach profitability despite the CPM downturn. Any earlier-than-expected recovery in CPMs will be a bonus.

第五，我們的活動業務在後 COVID 時代蓬勃發展，所有近期的大型現場活動都在 2022 年和 2023 年創下了出席人數記錄。以上內容代表了向更高收益和更高利潤收入流的持續戰略多元化，這將使我們能夠在 CPM 低迷的情況下實現盈利。每千次展示費用的任何早於預期的恢復都將是一種獎勵。

I remain grateful to the analysts for their continued work on the company. I also want to congratulate my team on completing another year end led by our VP Finance, Nathan [Teal]. And also of course also state how proud I am of being here on this call following our new Chief Enthusiast Officer, Nick Brien, who will undoubtedly lead the company to new heights. To our shareholders and other stakeholders, including our lending partners, thank you for your continued trust in us as custodians of Enthusiast Gaming.

我仍然感謝分析師繼續為公司工作。我還要祝賀我的團隊在我們的財務副總裁 Nathan [Teal] 的帶領下又完成了一個年終。當然，我也很自豪能在我們的新任首席愛好者官 Nick Brien 之後參加這次電話會議，他無疑將帶領公司達到新的高度。對於我們的股東和其他利益相關者，包括我們的貸款合作夥伴，感謝您一直以來對我們作為 Enthusiast Gaming 託管人的信任。

I will leave you with one more stat I find relevant in light of the lifting of stay-at-home orders and public health restrictions in 2022. Our total views of contents in 2022 were 41 billion, up from 40 billion in 2021. It appears our audience isn't putting down the controllers anytime soon, and that's good for our business. And of course, ladies and gentlemen, our business is the business of gaming.

鑑於 2022 年取消居家令和公共衛生限制，我會再給你一個我認為相關的統計數據。我們在 2022 年的內容總瀏覽量為 410 億，高於 2021 年的 400 億。看來我們的觀眾不會很快放下控制器，這對我們的業務有好處。當然，女士們先生們，我們的業務是遊戲業務。

Thank you. And operator, I kindly turn it back to you.

謝謝。接線員，我請把它還給你。

(Operator Instruction) Kevin Krishnaratne, Scotiabank.

（操作員說明）豐業銀行的 Kevin Krishnaratne。

Hey there, good evening, and Nick, welcome to the EGLX team.

大家好，晚上好，Nick，歡迎來到 EGLX 團隊。

Thank you very much. Thank you, Kevin.

非常感謝。謝謝你，凱文。

Look, I've got a question, a few questions just on the direct sales number. I thought it was a good number in the quarter. You said that there was a benefit from NFL. Can you comment on what the contribution was there and how we might see that continue on in Q1? I think you said it's going to continue in Q1. I'm just wondering how do we think about direct sales in Q1? I know you said from Q1 onward, we should see sequential increases. Do we see a decline in Q1, but maybe less so than what historically would be the case given the NFL contract?

看，我有一個問題，幾個關於直銷號碼的問題。我認為這是本季度的一個好數字。你說 NFL 有好處。您能否評論一下那裡的貢獻以及我們如何看待第一季度的貢獻？我想你說它會在第一季度繼續。我只是想知道我們如何看待第一季度的直銷？我知道你說過從第一季度開始，我們應該會看到連續增長。我們是否看到第一季度有所下降，但可能比歷史上考慮到 NFL 合同的情況要少？

Kevin, I think that's a question I'm going to direct over to Alex to respond to, please.

凱文，我想這是一個我要轉給亞歷克斯回答的問題。

Thank you. Thank you, Nick. Hey, Kevin. As far as contributions historically, I'll talk about those first and then talk about Q1. The NFL is contributing now. I mentioned the net investments number in my comments, but I can tell you NFL brought in approximately $2 million of sales.

謝謝。謝謝你，尼克。嘿，凱文。至於歷史上的貢獻，我會先談談這些，然後再談談 Q1。 NFL 現在正在做出貢獻。我在評論中提到了淨投資數字，但我可以告訴你 NFL 帶來了大約 200 萬美元的銷售額。

Now those sales, though, involve greater than just NFL. They're primarily NFL contracts, but they can involve media and talent, and other areas of our offering. As far as it relates -- so some immediate halo effect there, I guess, is what we're noticing pretty quick out of the gate. Q4 started one month after the show was launched.

不過，現在這些銷售涉及的不僅僅是 NFL。它們主要是 NFL 合同，但它們可能涉及媒體和人才，以及我們提供的其他領域。就其相關而言——我猜，我們很快就注意到了那裡的一些直接光環效應。 Q4在節目上線一個月後開始。

However, into Q1, there's obviously a normal seasonal trend. Q1 would never normally be expected to be greater than a Q4. We're not predicting that necessarily. We're very pleased. We did reference some subsequent events and subsequent success of the NFL.

然而，進入第一季度，顯然有一個正常的季節性趨勢。 Q1 通常永遠不會大於 Q4。我們不一定會這樣預測。我們很高興。我們確實參考了 NFL 的一些後續事件和隨後的成功。

It's still early, but it is proving its ability to be a significant driver for direct sales, not only directly as a product offering, but bringing in new logos, generating new leads, and unlocking new business, which can then expand into our other product offerings. So big year for direct sales. We're very excited. NFL is going to be a flagship product offering as part of those efforts.

現在還為時過早，但它正在證明它有能力成為直接銷售的重要推動力，不僅直接作為產品供應，而且引入新標識、產生新線索並開啟新業務，然後可以擴展到我們的其他產品產品。直銷如此重要的一年。我們非常興奮。作為這些努力的一部分，NFL 將成為旗艦產品。

Okay. No, that's really helpful. Maybe just to continue on with direct sales, if you take a look at the book of business that you have right now, the Q4 number, you take that, I was wondering if you could maybe comment on how many direct sales reps you have right now and how you're thinking about targets for them in terms of the direct sales for the year. If you've got quotas to meet, how you're just thinking about any targets around that would be helpful.

好的。不，這真的很有幫助。也許只是為了繼續直銷，如果你看看你現在擁有的業務簿，第 4 季度的數字，我想知道你是否可以評論一下你有多少直銷代表是對的現在以及您如何根據當年的直銷來考慮他們的目標。如果您有配額需要滿足，那麼您如何考慮圍繞該目標制定的任何目標都會有所幫助。

Sure, I can carry on with that. We have about 25 sellers on the ground. We target really by market. That's how we look at our sales team. I don't want to lead you to a preemptive number, but look, there's no question that at maturity, the sellers in our business should be generating multi-millions, but we are still building those teams. Some of those teams are only introduced just recently. So we just expanded into the UK and EMEA. Our first teams were the East and the West. They're of course driving the significant sales. But the answer is 25 sellers on the ground as of now. The average individual target would be well north of a million.

當然，我可以繼續這樣做。我們在當地大約有 25 名賣家。我們真正以市場為目標。這就是我們看待我們的銷售團隊的方式。我不想帶你先發製人，但是看，毫無疑問，在成熟的時候，我們業務中的賣家應該產生數百萬美元，但我們仍在建設這些團隊。其中一些團隊是最近才推出的。所以我們剛剛擴展到英國和歐洲、中東和非洲。我們的第一支隊伍是東部和西部。他們當然推動了顯著的銷售。但答案是截至目前已有 25 名賣家在場。平均個人目標將遠遠超過一百萬。

Are you adding more guys in 2023 or girls?

您是在 2023 年增加更多的男孩還是女孩？

Well, let me, Kevin, just say that I think that the entire approach to direct sales has been demonstrating some real momentum, and especially when we've got these really excellent major tentpole events like the NFL Tuesday Night Gaming. I've been having numerous conversations with some of the biggest brand advertisers, and certainly, they're excited.

好吧，讓我，凱文，只想說我認為直銷的整個方法已經顯示出一些真正的勢頭，尤其是當我們有這些非常出色的大型帳篷活動時，比如 NFL 週二晚上游戲。我一直在與一些最大的品牌廣告商進行多次對話，當然，他們很興奮。

When we're talking about a direct sale, we're talking really about an integrated solution. We're not just talking about audience- and reach-based advertising. We're talking about custom creativity, and we're talking about compelling content that brands can really engage with. And I think that we've got the opportunity that we're talking with some significant multi-brand advertisers, major marketeers like P&G, where we're seeing really extensive opportunities to look across their portfolio for those audiences, for those brands wanting to engage with the younger, the next generation, the next generation of their consumers.

當我們談論直銷時，我們實際上是在談論集成解決方案。我們不僅僅是在談論基於受眾和覆蓋面的廣告。我們談論的是定制創意，我們談論的是品牌可以真正參與的引人注目的內容。而且我認為我們有機會與一些重要的多品牌廣告商，像寶潔這樣的主要營銷商進行交談，我們看到了非常廣泛的機會來為這些受眾查看他們的產品組合，對於那些想要與更年輕的下一代消費者接觸。

So I think my full effort is going to be not that we're not going to continue to be razor-sharp on all aspects of our programmatic advertising, and ensuring that we can really be smart about how we leverage all things programmatic, but to ensure that the direct sales momentum continues with the highest caliber and the highest altitude. And I intend to personally give a lot of effort and support to the very qualified team we have.

因此，我認為我的全部努力並不是要我們不繼續在程序化廣告的所有方面保持敏銳，並確保我們能夠真正聰明地了解如何利用所有程序化的東西，而是要確保直銷勢頭繼續保持最高水準和最高高度。我打算親自為我們擁有的非常合格的團隊付出很多努力和支持。

And I think -- so let's not also underestimate the importance of the content of the creative studio that we have, because their creativity and their ideas form the foundations, the solutions that we're taking out into the market for really compelling and engaging brand engagement approaches for these major advertisers. So it is going to be -- it continues to be an area of very high performance and focus and resourcing for the organization.

而且我認為 - 所以我們也不要低估我們擁有的創意工作室內容的重要性，因為他們的創造力和想法構成了基礎，我們正在向市場推出真正引人注目和引人入勝的品牌的解決方案這些主要廣告商的參與方式。因此，它將繼續成為組織的一個非常高性能、重點和資源的領域。

Got it, super helpful. Thanks for that context. Maybe just one smaller question that in your MD&A, it's been in there for a few quarters now, maybe all of 2022, where you talked about some of the views that you've been seeing declining due to the COVID dissipating has been offset by TikTok. You know, you've introduced TikTok as a channel, you've got Snapchat as well. I'm just wondering if you could comment on how big the TikTok channel is as it relates to your total views, if you can provide any color there, that'd be helpful.

明白了，超級有幫助。感謝您提供的背景信息。也許只是一個較小的問題，在您的 MD&A 中，它已經存在了幾個季度，也許是整個 2022 年，在那裡您談到了一些您看到的由於 COVID 消散而下降的觀點已被 TikTok 抵消.你知道，你已經引入了 TikTok 作為一個渠道，你也有 Snapchat。我只是想知道你是否可以評論 TikTok 頻道有多大，因為它與你的總觀看次數相關，如果你可以在那裡提供任何顏色，那會很有幫助。

Again, Alex, can you take that question, please?

再一次，亞歷克斯，你能回答這個問題嗎？

Absolutely. So, as I mentioned in my remarks, total views are up year over year, 2022 over 2021. We have seen a bit of a shift of a trend towards web. However, specifically relating to video, we have grown our Snapchat business, but we had a lot of success on TikTok as well. It's still a small -- it's in the low hundreds of millions as part of that overall six billion number. So it's not a huge chunk. The vast majority of the inventory is still on longer-form videos, primarily YouTube-based, but TikTok's contributing a couple hundred million a quarter by now.

絕對地。因此，正如我在發言中提到的那樣，2022 年的總瀏覽量比 2021 年的總瀏覽量有所增加。我們已經看到網絡趨勢有所轉變。然而，特別是在視頻方面，我們發展了 Snapchat 業務，但我們在 TikTok 上也取得了很大成功。它仍然很小 - 作為 60 億總數的一部分，它處於幾億的低位。所以這不是一個很大的塊。絕大多數庫存仍然是較長格式的視頻，主要是基於 YouTube 的，但 TikTok 現在每季度貢獻了兩億美元。

Okay, just on that last point, too, in the MD&A, there is some disclosure on some changes on YouTube that impacted views quarter over quarter. Can you just talk about that as a, you know, how do we think about that going forward?

好的，就最後一點而言，在 MD&A 中，也披露了 YouTube 上的一些變化，這些變化影響了每個季度的觀看次數。你能談談，你知道，我們如何看待未來的發展嗎？

Yeah, I mean, there's two -- we're monitoring that the total views remain very strong. Two things to watch for on YouTube is the content reuse policy that they've launched. And then, of course, the evolution and the growth of their shorts, YouTube shorts. Our content was more primarily longer form.

是的，我的意思是，有兩個——我們正在監測總體觀點仍然非常強勁。在 YouTube 上需要注意的兩件事是他們推出的內容重用政策。然後，當然是他們的短片 YouTube 短片的演變和發展。我們的內容主要是更長的形式。

So I wouldn't say yet a material impact, some noticeable movement we're watching. But overall, as you can see, three quarters in a row, the video view is very steady. And, of course, on a year-over-year basis, total view's up.

所以我不會說物質影響，我們正在觀察的一些明顯的運動。但總體而言，如您所見，連續三個季度，視頻觀看量非常穩定。當然，與去年同期相比，總收視率有所上升。

So those are what those refer to, two changes, content reuse policy in YouTube and YouTube shorts growing in popularity. But YouTube shorts are also on the cusp, they're being monetized, they're launching that as well. So as much as that may slightly impact the long form, it's also an additional monetization opportunity.

所以這些就是指的是兩個變化，YouTube 中的內容重用政策和 YouTube 短片越來越受歡迎。但 YouTube 短片也處於風口浪尖，它們正在被貨幣化，它們也在推出。因此，儘管這可能會對長格式產生輕微影響，但它也是一個額外的貨幣化機會。

Got it. Appreciate it. Look forward to the progress in '23. I'll pass the line.

知道了。欣賞它。期待23年的進步。我會過線。

Robert Young, Canaccord Genuity.

羅伯特·楊，Canaccord Genuity。

Hi. Good evening. Welcome. Nick Brien, my first question is for you. I think you said in the prepared comments that primary part of your role is to optimize inventory. And I think it's an important part of the business. I think in the past, the company said that roughly 2.5%, maybe 3% of the inventory is going through higher-margin parts of the business. And they've targeted 10%. And I'm just curious if you'd revisit that. Do you think 10% is a reasonable target for where the business can go as far as optimizing that inventory?

你好。晚上好。歡迎。 Nick Brien，我的第一個問題是問你的。我想你在準備好的評論中說過，你的主要職責是優化庫存。我認為這是業務的重要組成部分。我想在過去，該公司表示大約 2.5%，也許 3% 的庫存正在通過業務的高利潤部分。他們的目標是 10%。我只是想知道你是否會重新審視它。您認為 10% 是企業可以優化庫存的合理目標嗎？

Yeah, well, but nice to meet you and talk with you. I'm not prepared. It's just too early for me to provide targets on where that is. What I do know is that when we're thinking about all aspects of our programmatic revenues, that we are really recognizing that the opportunity to leverage data-driven revenue roadmap and to really think about all aspects of the way that we're finding a way to increase our margin expansion on the programmatic revenue is going to be something we're going to be really focusing on with all aspects and continue to focus on with leveraging our data. And that's where they're going to be in terms of whether we PG or PMP, we've got to find a way that we continue to get and extract the greatest value out of the programmatic side of the business. But it's too early for me to give targets on that, I'm afraid.

是的，好吧，但很高興見到你並與你交談。我還沒準備好。現在就提供目標位置還為時過早。我所知道的是，當我們考慮程序化收入的各個方面時，我們真正認識到利用數據驅動收入路線圖的機會，並真正考慮我們正在尋找的方式的各個方面增加程序化收入利潤率的方法將是我們真正關注的所有方面，並繼續關注利用我們的數據。就我們是 PG 還是 PMP 而言，這就是他們所處的位置，我們必須找到一種方法，我們可以繼續從業務的程序化方面獲得併提取最大價值。但我現在就此設定目標還為時過早，恐怕。

Okay. My second question would be around the cadence of profitability through 2023. You know, there's seasonality in Q1, although there's the NFL business becomes profitable. And I guess I'm just trying to understand how we should think about modeling. First of all, is profitability -- that EBITDA profitability is operating margin -- is operating profitability, and then, I mean, how do you think about the cadence of that through the year?

好的。我的第二個問題是關於到 2023 年盈利的節奏。你知道，第一季度有季節性，儘管 NFL 業務開始盈利。我想我只是想了解我們應該如何考慮建模。首先，盈利能力——EBITDA 盈利能力是營業利潤率——是營業利潤率，然後，我的意思是，你如何看待這一年的節奏？

Well, I'd like Alex to respond to that.

好吧，我希望 Alex 對此做出回應。

Of course, my pleasure. So, yes, seasonality in Q1. I mean, the short answer is we're targeting for each quarter in the back half of the year. That's what we're planning towards, which is not atypical for a digital media company, of course, to make the money in the back half of the year. But that's what we're planning for. An improvement Q2 over Q1.

當然，我的榮幸。所以，是的，第一季度的季節性。我的意思是，簡短的回答是我們的目標是今年下半年的每個季度。這就是我們的計劃，當然，這對於一家數字媒體公司來說並不少見，以便在下半年賺錢。但這就是我們的計劃。 Q2 比 Q1 有所改進。

And if there is any earlier than expected, I know some analysts are calling for earlier. I mentioned we expect decreased CPMs year over year until at least and including Q3. Some analysts are calling for an earlier recovery. If that occurs, it's a benefit to us. We are not planning for it. So right now, we're targeting both quarters in the back half of the year, Q3 and Q4. And on an operating adjusted basis.

如果有比預期更早的時間，我知道一些分析師呼籲更早。我提到我們預計 CPM 會逐年下降，至少在第三季度之前是這樣。一些分析師呼籲早日復蘇。如果發生這種情況，那對我們是有好處的。我們沒有計劃。所以現在，我們的目標是今年下半年的兩個季度，即第三季度和第四季度。並在運營調整的基礎上。

And then you said they expect RPMs to be a headwind until Q3. And so, do you have any -- what are the primary levers in OpEx if the market doesn't come back the way that you plan?

然後你說他們預計 RPM 會在第三季度之前成為逆風。那麼，如果市場沒有按您計劃的方式恢復，您有什麼 - OpEx 的主要槓桿是什麼？

Well, we do expect them to continue to have headwinds. It's likely at its bottom, but that's how long we expect the recovery period to be. As far as levers, I mean, we continue to run as efficiently as possible and we never stopped.

好吧，我們確實希望他們繼續遇到不利因素。它可能處於底部，但這是我們預計復甦期的長度。至於槓桿，我的意思是，我們繼續盡可能高效地運行，我們從未停止過。

In Q3 and in Q4, we cut out over $2 million of recurring quarterly OpEx through both the divestiture of the legacy assets, as well as through headcount reductions, and through cuts in our technology and content expense. So, we haven't stopped doing that. In fact, some of that will continue to normalize into Q1. So, with or without where CPMs go, we're still running as efficiently as we can, just given the environment. So, that carries on into 2023.

在第三季度和第四季度，我們通過剝離遺留資產、裁員以及削減技術和內容費用，削減了超過 200 萬美元的經常性季度運營支出。所以，我們沒有停止這樣做。事實上，其中一些將繼續正常化到第一季度。因此，無論 CPM 去向與否，只要給定環境，我們仍然會盡可能高效地運行。因此，這種情況會持續到 2023 年。

Okay, thanks.

好的謝謝。

Gianluca Tucci, Haywood Securities.

Gianluca Tucci，海伍德證券。

Hi, guys. And congrats on joining the team, Nick.

嗨，大家好。祝賀你加入團隊，尼克。

Thank you, Gian.

謝謝你，吉安。

I'm just curious at a high level, it's been almost now three days since the announcement of you joining Enthusiast. In your first couple of weeks in the team, how are you thinking about the strategy at the company longer term and how it's positioned in the industry for that outsized growth that you talk about?

我只是比較好奇，你宣布加入 Enthusiast 已經快三天了。在你加入團隊的頭幾週，你如何考慮公司的長期戰略，以及它在行業中如何定位以實現你所說的超額增長？

Yeah, that's a very good question. I mean, a lot of the thinking around the strategic opportunity I did when I was considering the opportunity when it came to me, and I recognize that the gaming media sector, the gaming entertainment sector presents itself with huge diversity across, as we know, 3 billion gamers across the planet and continuing to grow.

是的，這是一個很好的問題。我的意思是，當我考慮機會時，我圍繞戰略機會做了很多思考，我認識到遊戲媒體行業，遊戲娛樂行業呈現出巨大的多樣性，正如我們所知，全球有 30 億遊戲玩家，並且還在不斷增長。

And I saw that the opportunity with an organization that had its primary focus on satisfying the opportunity for the communities of gamers and fans, that its breadth of proposition was not just the one thing, whether it be its advertising, its own sites, its partner network, its MCN, the esports teams that they have, but the opportunity to really pull together and create bespoke marketing solutions. There's so many brands are looking forward to on an ongoing basis to evolve beyond a conventional push-based advertising model. That's part of it.

我看到了一個主要關注滿足遊戲玩家和粉絲社區機會的組織的機會，它的主張的廣度不僅僅是一件事，無論是它的廣告、它自己的網站、它的合作夥伴網絡，其 MCN，他們擁有的電子競技團隊，但有機會真正齊心協力並創建定制的營銷解決方案。有如此多的品牌期待在持續的基礎上超越傳統的基於推送的廣告模式。那是其中的一部分。

And I think the other part was to see the opportunity where we have so much subscription data and so much opportunity to leverage our first-party data to enhance not only the creativity of our brand solutions, but how we continue to grow our audiences and our partnerships in the face of cookies going away. So I really love the fact that this was an organization that extremely thoughtfully acquired some very strong assets and different capabilities.

我認為另一部分是看到我們擁有如此多的訂閱數據和利用我們的第一方數據的機會，不僅可以增強我們品牌解決方案的創造力，還可以繼續增加我們的受眾和我們的受眾面對 cookie 消失的伙伴關係。所以我真的很喜歡這樣一個事實，即這是一個非常周到地獲得了一些非常強大的資產和不同能力的組織。

And really looking forward to continue to both direct where we apply those by looking at verticals, whether we're going to CPG, or finance, or transportation, and starting to really approach some of the biggest brand advertisers about why and how they can work with us for the benefit and the practicality to deliver true ROI and creative impact.

並且真的很期待繼續通過觀察垂直領域來指導我們應用這些內容，無論我們是要 CPG、金融還是交通，並開始真正接觸一些最大的品牌廣告商，了解他們為什麼以及如何工作與我們一起獲得真正的投資回報率和創造性影響的好處和實用性。

So I'm most excited about that. I think there's a number of areas around all things data and the leverage of technology and technology partnerships that could even enable us to be more attractive to the huge growing amount of independent gaming fan and community sites that exist across North America. So I'm very excited to be working in.

所以我對此感到非常興奮。我認為圍繞所有事物數據以及技術和技術合作夥伴關係的槓桿作用的許多領域甚至可以使我們對北美各地不斷增長的獨立遊戲迷和社區網站更具吸引力。所以我很高興能在這里工作。

But it's hard for me to say, again, I look at the strategy of a company when I'm coming in through the lens of my two eyes. What do we do [there] and what do we do differently? And obviously what we do differently, innovation opportunity around the kind of conversations we can have with brands who are really looking to differentiate in highly commoditized and competitive categories with very creative and engaging partnership solutions.

但我很難說，當我通過兩隻眼睛的鏡頭進入時，我會看一家公司的戰略。我們[在那裡]做了什麼，我們做了什麼不同的事情？很明顯，我們所做的不同之處在於，圍繞我們可以與真正希望通過非常有創意和引人入勝的合作夥伴關係解決方案在高度商品化和競爭激烈的類別中脫穎而出的品牌進行對話的創新機會。

So that's what we're very excited about. It's not about a sale. It's about building relationships where we become embedded for those brands as a very consistent and proven part of their brand-building strategy. So as I sit here 20 days in, it continues to reassure me that this organization has made some very, very smart acquisitions and how the whole is going to be even stronger than the sum of the parts when I'm able to pull these together and build on the kind of success we've talked about with the NFL program, with some of the biggest advertisers in the world (technical difficulty) and continuing to return.

這就是我們非常興奮的地方。這與銷售無關。這是關於建立我們融入這些品牌的關係，作為他們品牌建設戰略的一個非常一致和經過驗證的部分。因此，當我坐在這裡 20 天后，它繼續讓我放心，這個組織已經進行了一些非常非常明智的收購，當我能夠將這些整合在一起時，整體將如何比各部分之和更強大並在我們談到的 NFL 計劃成功的基礎上，與世界上一些最大的廣告商（技術困難）合作，並繼續回歸。

So, Gian, I hope that gives you a sort of general perspective without providing again specifics on things that will change or things we're going to invest in, because again, I haven't finalized those and I haven't even discussed those with the Board.

所以，吉安，我希望這能給你一個總體的看法，而不是再次提供關於將要改變的事情或我們將要投資的事情的細節，因為我還沒有最終確定這些，我什至沒有討論過那些與董事會。

That's excellent color. Thanks, Nick. I appreciate that. And then Q4 showed continued strength in your margin profile on gross margins. It sounds like you continue to expect margin growth to outpace revenue growth in 2023. Is that fair to assume?

那是極好的顏色。謝謝，尼克。我很感激。然後第四季度顯示您的毛利率持續強勁。聽起來您繼續預計 2023 年利潤率增長將超過收入增長。這樣假設公平嗎？

Yes.

是的。

Okay, great. And Alex, I think you mentioned this in your comments, but how much not -- or how much one-time expenses did Enthusiast book in Q4, non-recurring in nature?

好的，太好了。亞歷克斯，我想你在評論中提到了這一點，但在第 4 季度，Enthusiast 預訂了多少非經常性費用？

Well, what I mentioned was the non-recurring, we had the total between Q3 and Q4 OpEx cutout was $2.2 million, about half of that the divestiture. So I guess it became non-recurring. And then the net investment for the NFL was $3.7 million. But that is -- the NFL program is recurring.

好吧，我提到的是非經常性的，我們在第三季度和第四季度之間的 OpEx 削減總額為 220 萬美元，大約是資產剝離的一半。所以我猜它變成了非經常性的。然後 NFL 的淨投資為 370 萬美元。但那是——NFL 計劃是經常性的。

But of course, that's a net investment. That program is going to continue. I would not expect those level of OpEx, going forward, as recurring. But those are the numbers I highlighted, the $2.2 million from the cost-cutting measures and the divestiture, and then the $3.7 million net investment in Q4 for NFL TNG.

但當然，這是一項淨投資。該計劃將繼續進行。我不希望這種水平的 OpEx 繼續出現。但這些是我強調的數字，削減成本措施和資產剝離帶來的 220 萬美元，以及 NFL TNG 在第四季度的 370 萬美元淨投資。

Okay, that's perfect, thank you. And then how are you thinking about the balance sheet in the context of your growth plans? Is it well positioned?

好的，那太完美了，謝謝。然後，在您的增長計劃的背景下，您如何考慮資產負債表？位置好嗎？

Well, it's well positioned for two reasons. One, of course, like all companies in our sector, we've been spending the last few quarters really focused on the efficiencies of our operations. So we're much, much leaner.

嗯，它的位置很好有兩個原因。其中之一，當然，就像我們行業中的所有公司一樣，我們在過去幾個季度一直專注於提高我們的運營效率。所以我們瘦了很多。

Also, the NFL TNG program, that needed to build a book of receivables and a pipeline of deals. And we didn't have that when we started in September. Now we have that. So there's a working capital investment that needs to occur. So we're lucky. We're lucky that way. We have some receivables flowing after year end in relation to NFL and equally or more important, we got a pipeline of contracts. So that sets us up nicely from a working capital perspective.

此外，NFL TNG 計劃需要建立應收賬款簿和交易渠道。我們在 9 月開始時還沒有。現在我們有了。因此，需要進行營運資本投資。所以我們很幸運。我們很幸運。我們有一些與 NFL 有關的應收賬款在年底流動，同樣或更重要的是，我們獲得了一系列合同。因此，從營運資金的角度來看，這很好地為我們做好了準備。

And as I mentioned, subsequent to the year end, the NFL TNG has run profitable episodes. And then, of course, I believe I mentioned it, of course, the operating facility, which has also, by the way, now been extended subsequent to the year end. So working capital is in a very healthy position.

正如我提到的，在年底之後，NFL TNG 已經取得了盈利。然後，當然，我相信我提到過它，當然，運營設施，順便說一下，現在也已經在年底之後延長了。因此，營運資金處於非常健康的狀態。

Another little fun fact, if you look at the trade receivables over the payables, it's in a very healthy position. So there's extra working capital on top of cash available to put to use as well. So there's a couple angles there. It makes us feel pretty comfortable.

另一個有趣的事實是，如果您查看應付賬款上的貿易應收賬款，它處於非常健康的狀態。因此，除了可供使用的現金之外，還有額外的營運資金。所以那裡有幾個角度。這讓我們感覺很舒服。

Okay, great color. Thanks, guys. And congrats again, Nick, on hopping aboard the Enthusiast train.

不錯，顏色不錯多謝你們。再次祝賀 Nick 登上 Enthusiast 列車。

Yeah, thank you, Gian.

是的，謝謝你，吉安。

(Operator Instructions) Mike Crawford, B. Riley.

（操作員說明）Mike Crawford、B. Riley。

Thank you. Just first, given that we're 86 days through a 90-day quarter, is there any scope you can put on your revenue range that you've already achieved or expect to achieve in this quarter?

謝謝。首先，鑑於我們在 90 天的季度中有 86 天，您是否可以在本季度已經實現或期望實現的收入範圍內設定任何範圍？

Well, I would expect -- hey MB, by the way -- MC. I would seasonal impact, of course. So revenues will be lower. The -- what we've seen -- we don't have guidance on specific ranges. However, this is what we've seen. We are having strength in direct sales, so there will be a seasonal impact. But direct sales will come in strong.

好吧，我希望 - 嘿 MB，順便說一下 - MC。當然，我會受到季節性影響。所以收入會比較低。我們所看到的——我們沒有關於特定範圍的指導。然而，這就是我們所看到的。我們在直銷方面有實力，所以會有季節性影響。但直銷會很強勁。

Subscription revenue is not impacted by seasonality. It will maintain or slightly grow itself. That would be expected. CPMs were certainly impacted. What we've seen, and I think this is broadly observed in the industry, January and February continued to be periods of lower CPMs across the board, across the entire market.

訂閱收入不受季節性影響。它會保持或略微增長自己。這是預料之中的。每千次展示費用肯定會受到影響。我們所看到的，我認為這在行業中得到廣泛觀察，1 月和 2 月仍然是整個市場 CPM 全面下降的時期。

What gives me some hope, without changing my expectations for what I said about Q3, March has had a very reasonable seasonal pattern compared to a more normal year. That indicates to me that we may have a return to some normalcy this year on the pricing of programmatic, which is very strong. However, other than that, direct sales will be strong, but expect a seasonal impact. On the programmatic side, of course, expect a seasonal impact from Q4, Q1 as subscription will continue to grow. So that's what I would say in regards to Q1.

在不改變我對第三季度所說的預期的情況下，給我一些希望的是，與更正常的一年相比，3 月的季節性模式非常合理。這向我表明，今年我們可能會在程序化定價方面恢復正常，這非常強勁。然而，除此之外，直銷將很強勁，但預計會受到季節性影響。當然，在程序化方面，隨著訂閱量的持續增長，預計第四季度和第一季度會產生季節性影響。這就是我要說的關於第一季度的內容。

Okay, thanks, Alex. And then just looking at some of your properties, so you had this crypto partnership with ev.io. I thought we might see something with Little Big Snake or another title. Is that something we should be expecting any time soon?

好的，謝謝，亞歷克斯。然後只看你的一些財產，所以你與 ev.io 建立了這種加密合作夥伴關係。我想我們可能會看到 Little Big Snake 或其他標題的內容。這是我們應該很快期待的事情嗎？

Alex?

亞歷克斯？

Yeah, sure. So --

好，當然。所以 -

Bill, do you want to take that one?

比爾，你要拿那個嗎？

Sure, guys. Yeah, with ev.io, it continues to expand in the Web3 space. We're having a lot of success with that game. Working with Hut 8 was a great partnership in 2023 -- sorry, 2022. We expect to be making further announcements regarding integrated partnerships with ev.

當然，伙計們。是的，通過 ev.io，它在 Web3 空間中繼續擴展。我們在那場比賽中取得了很大的成功。與 Hut 8 的合作在 2023 年是一個很好的合作夥伴關係——抱歉，2022 年。我們希望進一步宣布與 ev 的綜合合作夥伴關係。

As it pertains to the rest of our library, we're working on a pretty robust pipeline. The Little Big Snake team is working on a new additional title, which we're looking to launch in 2023, which is going to be really helpful for growth and we're excited about it.

由於它與我們庫的其餘部分有關，我們正在開發一個非常強大的管道。 Little Big Snake 團隊正在開發一個新的附加遊戲，我們希望在 2023 年推出，這將對增長真正有幫助，我們對此感到興奮。

But these partnerships are kind of a work in progress. And so I would say Little Big Snake, not a part two, but a whole different game is in the works. And we have ev.io and we'll likely announce further partnerships in the near term with it as well.

但這些夥伴關係是一項正在進行的工作。所以我會說 Little Big Snake，不是第二部分，而是一個完全不同的遊戲正在製作中。我們有 ev.io，我們也可能會在短期內宣布與它建立進一步的合作夥伴關係。

Okay, thank you. And then maybe one for Nick. Now that you've been here for a little bit, do you see or what opportunities do you see to really highlight Luminosity as a brand that can be monetized in more ways versus Enthusiasts as, say, a holistic home for direct sales campaigns?

好的謝謝。然後也許是給尼克的。既然你已經在這裡待了一段時間，你是否看到或看到什麼機會真正突出 Luminosity 作為一個可以通過更多方式獲利的品牌，而不是 Enthusiasts 作為直接銷售活動的整體之家？

No, I think that's a very good question. I think that I'm looking at it with the team that every individual product we have is got to be dynamic and competitive in its own right and drive a level of specific engagement of value with the brands, with its own consumers, with its fans.

不，我認為這是一個很好的問題。我認為我正在與團隊一起看待它，我們擁有的每一個產品都必須具有活力和競爭力，並推動與品牌、與自己的消費者、與粉絲的特定價值參與水平.

And what is that business plan? And I don't think it's just about being in within the Enthusiast portfolio as the kind of credibility play. It's a very significant brand for us. And as we know, in its revenues last year, we've seen an increase, an estimate to be able to do smarter business with it.

那商業計劃是什麼？而且我不認為這只是為了在 Enthusiast 投資組合中作為一種信譽遊戲。這對我們來說是一個非常重要的品牌。正如我們所知，在其去年的收入中，我們看到了增長，估計能夠與它開展更明智的業務。

But I'm not the team. I've met the team briefly, the team leading that once and spending time working with them again to extend not just for its own direct sales, for its relevance, for those brands that really do lean into esports and have a very specific level of interest in how they can work with that in conjunction with our media play.

但我不是團隊。我和這個團隊有過短暫的會面，這個團隊曾經領導過這個團隊，並再次花時間與他們合作，不僅為了自己的直接銷售，為了它的相關性，為了那些真正傾向於電子競技並且具有非常特定水平的品牌對他們如何將其與我們的媒體播放結合使用感興趣。

But the principle you talk about that each -- and it doesn't really matter whether it's Icy Veins, or Pocket Game, or U.GG, I mean, any of the individual brands and the products that we have within the portfolio, all must be demonstrating how they're going to be demonstrating their own traction, their own momentum, their own customer-based opportunities, as well as augmenting everything else we're doing. So I concur. I'm not going to say exactly what that strategy is yet or whether enhancements to that. Too early to do that. But the principle you're talking about is exactly right.

但是你談論的每個原則——無論是 Icy Veins、Pocket Game 還是 U.GG 都無關緊要，我的意思是，我們在產品組合中擁有的任何單個品牌和產品，所有必須展示他們將如何展示他們自己的吸引力、他們自己的動力、他們自己基於客戶的機會，以及增強我們正在做的一切。所以我同意。我不打算確切地說出該策略是什麼，或者是否對其進行了改進。這樣做太早了。但是你說的原理是完全正確的。

All right, thank you very much.

好的，非常感謝。

This concludes our question and answer session, as well as the conference. Thank you for attending today's presentation by Enthusiast Gaming. You may now disconnect.

我們的問答環節和會議到此結束。感謝您參加今天由 Enthusiast Gaming 舉辦的演講。您現在可以斷開連接。