Enthusiast Gaming Holdings Inc (EGLX) 2023 Q2 法說會逐字稿

Good afternoon, and welcome to the Enthusiast Gaming fiscal second-quarter 2023 financial results conference call. (Operator Instructions) Please note this event is being recorded.

下午好，歡迎參加 Enthusiast Gaming 2023 財年第二季度財務業績電話會議。 （操作員說明）請注意此事件正在被記錄。

I would now like to turn the conference over to Matt Chesler, Investor Relations. Please go ahead.

我現在想將會議交給投資者關係部的馬特·切斯勒 (Matt Chesler)。請繼續。

Thank you, operator. Good afternoon, everyone, and welcome to the Enthusiast Gaming second quarter 2023 results conference call. I'm Matt Chesler of FNK IR. With me today is our Chief Executive Officer, Nick Brien; and our Chief Financial Officer, Alex Macdonald. We'll begin with some prepared remarks and then open the floor to questions.

謝謝你，接線員。大家下午好，歡迎參加 Enthusiast Gaming 2023 年第二季度業績電話會議。我是 FNK IR 的馬特·切斯勒。今天和我在一起的是我們的首席執行官尼克·布萊恩 (Nick Brien)；以及我們的首席財務官 Alex Macdonald。我們將從一些準備好的發言開始，然後開始提問。

But before we begin, I'd like to remind everyone that 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.

但在開始之前，我想提醒大家，今天的演示包含前瞻性信息，涉及已知和未知的風險和不確定性以及其他可能導致實際事件與當前預期存在重大差異的因素。這些陳述不應被視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，可能導致實際結果、績效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。

A more complete discussion of the risks and uncertainties facing the company appears in the company's management discussion and analysis for the three-month period ending June 30, 2023, which are available under the company's profile on SEDAR and EDGAR, as well as on the company's website at enthusiastgaming.com. You're cautioned 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.

關於公司面臨的風險和不確定性的更完整討論出現在公司截至2023 年6 月30 日的三個月期間的管理層討論和分析中，這些討論和分析可在SEDAR 和EDGAR 上的公司簡介以及公司的網站http://愛好者遊戲.com。請您注意不要過分依賴這些前瞻性陳述，這些陳述僅代表截至本演示文稿發布之日的情況。除法律要求的範圍外，公司不承擔因新信息、未來事件或任何其他原因而更新和修改任何前瞻性陳述的意圖或義務。

Now I'd like to turn the call over to Nick Brien, CEO of Enthusiast Gaming. Take it away, Nick.

現在我想把電話轉給 Enthusiast Gaming 首席執行官尼克·布萊恩 (Nick Brien)。把它拿走，尼克。

Thanks, Matt, and welcome to everyone participating on our earnings call. I joined Enthusiast Gaming, as its Chief Enthusiastic Officer five months ago, and my conviction continues to be that the gaming media sector is a huge growth opportunity for us, as the number one gaming property in the US as measured by Comscore. Throughout the course of my remarks, I'll share concrete examples of our occurring and new business momentum that strengthens my conviction on a daily basis.

謝謝馬特，並歡迎所有參加我們財報電話會議的人。五個月前，我加入 Enthusiast Gaming，擔任其首席熱情官，我仍然堅信游戲媒體行業對我們來說是一個巨大的增長機會，因為根據 Comscore 衡量，遊戲媒體行業是美國排名第一的遊戲產業。在我的演講過程中，我將分享我們正在發生的新業務動力的具體例子，這些例子每天都會增強我的信念。

I'm excited to share with you the strong progress we have achieved over the past quarter, as the management team has focused diligently on executing the strategic initiatives developed, as part of our 2023 transformation velocity plan. I will discuss these in detail, but I first want to share some important industry context.

我很高興與您分享我們在過去一個季度取得的強勁進展，因為管理團隊一直致力於執行製定的戰略計劃，作為我們 2023 年轉型速度計劃的一部分。我將詳細討論這些內容，但我首先想分享一些重要的行業背景。

The video gaming industry demonstrates continued momentum in terms of exciting game -- new game launches such as Diablo IV and Baldur's Gate 3 and continued user growth across the mobile gaming sector. Gaming is an entertainment industry that's significantly expanding year-on-year, projected to be worth $366 billion by the end of the year. Massive tech and entertainment companies see the value and opportunity of entering the gaming space, as they expand their footprint in gaming through organic growth and acquisitions.

視頻遊戲行業在令人興奮的遊戲方面展現出持續的勢頭——《暗黑破壞神 IV》和《博德之門 3》等新遊戲的發布以及整個移動遊戲領域的用戶持續增長。遊戲是一個逐年大幅擴張的娛樂產業，預計到年底價值將達到 3660 億美元。大型科技和娛樂公司看到了進入遊戲領域的價值和機會，通過有機增長和收購擴大了在遊戲領域的足跡。

The US media industry continues to rapidly evolve from the dominance of the walled garden digital players, such as Meta and Google, to high-growth innovative digital media sectors, such as CTV, retail media, and commerce media. Yet the disruption of legacy media players continues, as Amazon posted a 22% gain this quarter, Discovery posted a 13% decline. These newer media players continue to attract advertising dollars, as they provide marketeers with scaled audiences, first-party data, and brand-safe environments. Uber is on its way to building a $1 billion ad business within the next year.

美國媒體行業繼續快速發展，從 Meta 和 Google 等圍牆花園數字播放器的主導地位，發展到 CTV、零售媒體和商業媒體等高增長的創新數字媒體領域。然而，傳統媒體播放器的顛覆仍在繼續，亞馬遜本季度增長了 22%，Discovery 則下降了 13%。這些較新的媒體播放器繼續吸引廣告收入，因為它們為營銷人員提供了規模化的受眾、第一方數據和品牌安全的環境。 Uber 有望在明年打造價值 10 億美元的廣告業務。

My visit to the annual Cannes Lions Advertising Festival in June reinforced the strong interest from industry leaders in the gaming media sector, given the scale and breadth of the gaming audiences and the remarkably high use engagement metrics they offer. Major brands and leading agencies know that gaming audiences are the future customers they must reach. These same brands remain largely uninformed and confused about how to engage the gaming audiences with respect, relevance, and critical authenticity can connect in exciting and effective ways.

鑑於遊戲受眾的規模和廣度以及他們提供的極高的使用參與度指標，我六月份參加了一年一度的戛納國際創意節廣告節，這增強了遊戲媒體領域行業領導者的強烈興趣。主要品牌和領先機構都知道，遊戲受眾是他們必須接觸的未來客戶。這些品牌仍然對如何以尊重、相關性和關鍵真實性以令人興奮和有效的方式與遊戲受眾進行聯繫感到困惑和不知情。

During the week at Cannes, I met with many of the largest global marketeers, including P&G, Unilever, Intel, PepsiCo, Microsoft, Pfizer, Diageo, and Lenovo and the message was consistent for gaming to become an established media sector attracting large advertising budgets, we must offer these mega brands several things. First, we must offer scaled audiences, not niche gamers. Second, we must ensure brand safe environment to protect their brand equity, while respecting the gaming audiences' attention. Third, critical that we provide independent measurement to prove ROI. When we and our peers deliver against these criteria, gaming media will move swiftly from being a nice-to-have to becoming a must-buy.

在戛納的這一周，我會見了許多全球最大的營銷人員，包括寶潔、聯合利華、英特爾、百事可樂、微軟、輝瑞、帝亞吉歐和聯想，他們傳達的信息是一致的，即遊戲將成為吸引大量廣告預算的成熟媒體領域，我們必須為這些大品牌提供一些東西。首先，我們必須提供規模化的受眾，而不是小眾遊戲玩家。其次，我們必須確保品牌安全的環境，以保護其品牌資產，同時尊重遊戲受眾的注意力。第三，至關重要的是我們提供獨立的衡量標準來證明投資回報率。當我們和我們的同行達到這些標準時，遊戲媒體將迅速從“必備”變成“必須購買”。

Enthusiast Gaming is uniquely resourced to provide leading brands and agency partners with strategic planning, content creation, first-party audience targeting, and marketing campaign measurement to meet industry standards, while providing necessary innovation and ROI. While media channels and marketing approaches continue to evolve, the mission for CMOs remains the same, to build brands and fuel growth.

Enthusiast Gaming 擁有獨特的資源，可以為領先品牌和代理合作夥伴提供戰略規劃、內容創作、第一方受眾定位和營銷活動衡量，以滿足行業標準，同時提供必要的創新和投資回報率。儘管媒體渠道和營銷方法不斷發展，但 CMO 的使命始終如一：打造品牌並推動增長。

The industry has historically been highly fragmented. Enthusiast Gaming was no different with several businesses operating completely independently with insufficient communication or coordination. Our strategy of breaking down silos and creating comprehensive brand solutions at scale, operating on a single tech stack to ensure brand safety, and providing real-time feedback is exactly what these mega brands are looking for.

該行業歷來高度分散。 Enthasiast Gaming 也不例外，幾家業務完全獨立運營，溝通或協調不足。我們打破孤島並大規模創建全面的品牌解決方案、在單一技術堆棧上運行以確保品牌安全並提供實時反饋的策略正是這些大型品牌所尋求的。

Our reorganization efforts in Enthusiast Gaming reflects these opportunities to double down on brand solutions, previously called direct sales to create high-quality environment that excite and delight the enthusiast, who come to our gaming sites, play, learn, create, and connect, and to work with leading creators to develop exciting content tentpole and live experiences that delight their communities and attract leading brands. Even in these early days, this reorganization is driving improvement.

我們對Enthusiast Gaming 的重組工作反映了這些機會，可以加倍投入品牌解決方案（以前稱為直接銷售），以創造高質量的環境，讓來到我們的遊戲網站玩遊戲、學習、創造和聯繫的愛好者感到興奮和高興。與領先的創作者合作，開發令人興奮的內容支柱和現場體驗，以取悅他們的社區並吸引領先品牌。即使在早期，這種重組也在推動改進。

Our aggregate monthly average users across our network of gaming sites has increased to nearly 56 million, the largest scaled audience in aggregate of any US gaming property, bigger than the likes of Twitch, Roblox, and Activision Blizzard. Our continued focus is to strengthen our operating model and refine our go-to-market positioning. We are building a solid foundation of robust MarTech technology and first-party data to ensure that yield optimization is embedded into everything we do.

我們的遊戲網站網絡的每月平均用戶總數已增至近 5600 萬，是美國所有遊戲資產中受眾規模最大的，比 Twitch、Roblox 和動視暴雪等公司還要多。我們持續關注的是加強我們的運營模式並完善我們的市場定位。我們正在建立強大的 MarTech 技術和第一方數據的堅實基礎，以確保將產量優化嵌入到我們所做的一切中。

Our enterprise technology platform is now centrally managed across the entire organization by Shinggo Lu and Alan Liang recently promoted to Chief Product Officer and Chief Technology Officer, respectively. This extremely talented team of gaming leaders has now extended their highly successful U.GG product to become a platform that offers similar player statistics and gaming information for World of Warcraft and Valorant.

我們的企業技術平台現在由整個組織集中管理，由最近晉升為首席產品官和首席技術官的Shinggo Lu 和Alan Liang 分別負責。這個極其才華橫溢的遊戲領導者團隊現已將其非常成功的 U.GG 產品擴展為一個為《魔獸世界》和《Valorant》提供類似玩家統計數據和遊戲信息的平台。

At the same time, U.GG has just released its first stand-alone desktop app, and downloads have exceeded expectations and on target to reach 500,000 by the year-end with no paid marketing support. This product-to-platform initiative is now being implemented across The Sims Resource, Icy Veins, and select casual games and community sites within Addicting Games.

與此同時，U.GG剛剛發布了其首款獨立桌面應用程序，下載量超出了預期，目標是在沒有付費營銷支持的情況下到年底達到50萬次。這項從產品到平台的計劃現已在 The Sims Resource、Icy Veins 以及 Addicting Games 內的精選休閒遊戲和社區網站上實施。

We all know that delivering ad tech excellence is a prerequisite for building a profitable media business in today's programmatic media mind world. So, too, is offering the market exciting integrated solutions that enable brands to collaborate with leading creators to develop the gaming content and experiences they are seeking to differentiate from their competitors.

我們都知道，提供卓越的廣告技術是在當今程序化媒體思維世界中建立盈利的媒體業務的先決條件。為市場提供令人興奮的集成解決方案也是如此，使品牌能夠與領先的創作者合作開發遊戲內容和體驗，以區別於競爭對手。

Our content division has delivered such creative projects on behalf of major brands such as NFL, XBOX, State Farm, and Mondelez amongst others. To highlight our commitment to creative excellence, we've now rebranded our content division as Final Box Studios led by our gaming -- by our gaming-obsessed executive creative adviser [Rob Buff]. He and his talented team are busy developing the content tentpole roadmap to build on our continuing success of the NFL Tuesday night game.

我們的內容部門已代表 NFL、XBOX、State Farm 和 Mondelez 等主要品牌交付此類創意項目。為了強調我們對卓越創意的承諾，我們現在將內容部門重新命名為 Final Box Studios，由我們的遊戲部門領導——由我們痴迷於遊戲的執行創意顧問 [Rob Buff] 領導。他和他才華橫溢的團隊正忙於開發內容主線路線圖，以鞏固我們 NFL 週二晚上比賽的持續成功。

We're now in active negotiations with two other major US sports leagues to create unique content platforms involving their top players competing against the most influential creators. We just sold our largest brand deal ever for major sponsorship of the NFL Tuesday Night Gaming for season two, and our pipeline is full of significant blue-chip brands, including a number of returning sponsors renewing and expanding their commitment in season one.

我們現在正在與美國另外兩個主要體育聯盟積極談判，以創建獨特的內容平台，讓他們的頂級球員與最有影響力的創作者競爭。我們剛剛出售了有史以來最大的品牌交易，為NFL 週二晚間遊戲第二季提供主要贊助，我們的渠道中充滿了重要的藍籌品牌，包括許多回歸的讚助商在第一季中更新和擴大了他們的承諾。

This achievement, coupled with the increased contribution of brand solutions, as a percent of our consolidated revenue, further demonstrates the progress we are making. We are rapidly moving beyond selling ads -- only selling ads and instead selling integrated solutions. This is especially important considering the continued industry headwinds in the programmatic ad business.

這一成就，加上品牌解決方案的貢獻占我們合併收入的百分比的增加，進一步證明了我們正在取得的進步。我們正在迅速超越銷售廣告——僅銷售廣告，而是銷售集成解決方案。考慮到程序化廣告業務持續面臨的行業阻力，這一點尤其重要。

We signed several of the biggest streamers in the world as team captains for season two, the identity of which will be announced shortly with the launch of a new season. Season two of NFL Tuesday Night Gaming will now be streamed on Twitch, the biggest live streaming platform for games by more than 12 times over YouTube and Facebook combined in total hours streamed and more than 3 times bigger in hours watched. As we analyze our sales pipeline, we're excited to see 78% recurring revenue for 2023, as well as an impressive asset mix diversification with over 80% of our brand solutions utilizing more than two of our assets and over 50% utilizing more than three.

我們簽下了幾位世界上最大的主播作為第二季的隊長，他們的身份將在新賽季開始後不久公佈。 《NFL 週二晚間遊戲》第二季現將在最大的比賽直播平台 Twitch 上直播，直播總時長是 YouTube 和 Facebook 的 12 倍多，觀看時長是 YouTube 和 Facebook 的 3 倍多。在分析我們的銷售渠道時，我們很高興看到2023 年經常性收入達到78%，以及令人印象深刻的資產組合多元化，超過80% 的品牌解決方案利用了兩種以上的資產，超過50 % 的品牌解決方案利用了超過兩種資產三。

The breadth of Enthusiast diversified portfolio across the gaming ecosystem allows us to productize our innovative Brand Solutions offering marketeers the opportunity to do so much more than only push display or video ads. Media placements usually accompany our large sponsorship deals and creative properties such as the Fortnite Map. We just produced for Shell in conjunction with Team Unite and WPP's Essence Agency. To drive Enthusiast Gaming transformation from being a loosely affiliated portfolio of sites for operating as a centrally managed company with a diversified network of gaming asset, I continue to upgrade our management team and recruit proven industry experts to help accelerate our growth momentum and operational excellence.

遊戲生態系統中 Enthusiast 多元化產品組合的廣度使我們能夠將創新的品牌解決方案產品化，為營銷人員提供不僅僅是推送展示或視頻廣告的機會。媒體投放通常伴隨著我們的大型贊助交易和創意資產，例如《堡壘之夜》地圖。我們剛剛與 Team Unite 和 WPP 的 Essence Agency 合作為 Shell 製作產品。為了推動Enthusiast Gaming 從鬆散附屬的網站組合轉型為擁有多元化遊戲資產網絡的集中管理公司，我將繼續升級我們的管理團隊並招募久經考驗的行業專家，以幫助加快我們的增長勢頭和卓越運營。

We recently hired a sales analyst, a product and pricing specialist, a data analytics expert, and a product marketing genius to ensure that our sellers are knowledgeable about every single product we're developing across our network. To ensure that our programmatic media offering is securing the highest CPMs possible, we're now in the process of finalizing the hiring of a senior ad tech engineer to strengthen all SSP, DSP, and ad server integrations. There can be no room for error, as we fight to optimize the yield of our precious media inventory.

我們最近聘請了一名銷售分析師、一名產品和定價專家、一名數據分析專家和一名產品營銷天才，以確保我們的賣家了解我們在網絡上開發的每一種產品。為了確保我們的程序化媒體產品能夠獲得盡可能高的每千次展示費用，我們現在正在最終確定聘請一名高級廣告技術工程師，以加強所有 SSP、DSP 和廣告服務器集成。當我們努力優化寶貴的介質庫存的產量時，不能有任何錯誤的餘地。

At the same time, as we shared on our last earnings call, we're determined to drive more growth from a highly profitable subscriptions revenue. To unlock this subscriber growth and strengthen our gaming communities overall, we have hired a leading consultant from Microsoft to drive this important initiative. Our newly created strategic partnership division led by EVP, Matt Goodman continues to develop exciting and unique properties, such as NFL Tuesday Night Gaming, while increasing our dialogue and ideation with leading players across sports, music, fashion, and retail.

與此同時，正如我們在上次財報電話會議上分享的那樣，我們決心通過高利潤的訂閱收入推動更多增長。為了釋放用戶增長並整體加強我們的遊戲社區，我們聘請了 Microsoft 的一位領先顧問來推動這一重要舉措。我們新成立的戰略合作夥伴部門由執行副總裁馬特·古德曼(Matt Goodman) 領導，繼續開發令人興奮且獨特的產品，例如NFL 週二之夜遊戲，同時加強與體育、音樂、時尚和零售領域領先企業的對話和創意。

Many of the world's biggest brands are seeking meaningful engagement in the gaming sector beyond running pre-roll video ads or simply sponsoring a creator. Long-term partnerships involve thoughtful strategic planning and clear performance indicators to evaluate ROI for both brand building and lead generation. We could not be more excited with the momentum in this critical area of our business.

許多世界上最大的品牌正在尋求在遊戲領域的有意義的參與，而不僅僅是投放前置視頻廣告或簡單地贊助創作者。長期合作夥伴關係涉及深思熟慮的戰略規劃和明確的績效指標，以評估品牌建設和潛在客戶開發的投資回報率。我們對這一關鍵業務領域的發展勢頭感到非常興奮。

We have improved our pipeline visibility and revenue forecasting, enabling us to invest more wisely and more precisely guide the company towards profitability for the first time in its history. The pipeline for quarter three and especially for quarter four is robust, with 55 potential new logos in the second half pipe, representing 45% of the overall pipeline. Our clients continue to be well diversified across industry verticals, with CPG being at the top of 20%. Entertainment continued to be a strong for us, signifying that Enthusiast Gaming remains a key destination despite this industry verticals headwinds.

我們提高了管道可視性和收入預測，使我們能夠更明智地投資，更準確地引導公司歷史上首次實現盈利。第三季度，尤其是第四季度的管道非常強勁，下半年有 55 個潛在的新徽標，佔整體管道的 45%。我們的客戶在各個垂直行業中繼續保持多元化，其中 CPG 佔據 20% 的前列。娛樂對我們來說仍然是一個強大的領域，這表明儘管這個行業存在垂直阻力，但愛好者遊戲仍然是一個重要的目的地。

We've just signed a large deal with Dove, representing our first win with Unilever, as we continue to secure new brand assignments from Coke, Mondelez, Google, and AT&T. I see massive untapped opportunity in other key industry verticals that are poised for growth, such as travel, food and beverage, and retail.

我們剛剛與多芬簽署了一項大協議，這是我們與聯合利華的第一次勝利，同時我們繼續從可口可樂、億滋、谷歌和 AT&T 獲得新的品牌授權。我在其他有望增長的關鍵行業垂直領域看到了巨大的未開發機會，例如旅遊、食品和飲料以及零售。

Under the expert leadership of Amanda Rubin, EVP Brand Solutions, we have reorganized our overall sales effort by industry vertical and agency holding company, as well as the independent agency sector. We expect to convert our strong second-half pipeline of existing and new logos, while cementing these clients' convictions that the gaming media sector represents the most innovative and efficient way for brands to reach their future customers, while extending their brand vitality in the most dynamic and culturally connected entertainment sector that exists today.

在品牌解決方案執行副總裁 Amanda Rubin 的專家領導下，我們按行業垂直和代理控股公司以及獨立代理部門重組了整體銷售工作。我們希望在下半年轉換現有和新徽標的強大渠道，同時鞏固這些客戶的信念，即遊戲媒體行業是品牌接觸未來客戶的最具創新性和最有效的方式，同時以最大程度擴展其品牌活力。當今存在的充滿活力和文化聯繫的娛樂部門。

I will now hand over to Alex Macdonald, our CFO, to discuss the details of our quarter two earnings. Thank you. Alex.

我現在將交給我們的首席財務官亞歷克斯·麥克唐納 (Alex Macdonald) 討論我們第二季度收益的細節。謝謝。亞歷克斯.

Thank you, Nick, and thank you to all our shareholders, analysts, lending partners, and other stakeholders for joining us today to discuss the progress we made in the second quarter of 2023. During the second quarter, we advanced the initiatives Nick has been speaking about since becoming our Chief Enthusiast Officer. We are focusing on profitable revenue streams and margin expansion, as well as creating comprehensive brand solutions and leveraging our diverse assets as a platform. As the digital ad market begins to normalize, the second-quarter results are beginning to reflect the work we are putting in place to ensure a swift transition to profitability.

謝謝尼克，感謝我們所有的股東、分析師、貸款合作夥伴和其他利益相關者今天加入我們，討論我們在 2023 年第二季度取得的進展。在第二季度，我們推進了尼克一直以來採取的舉措談論自從成為我們的首席愛好者官以來。我們專注於盈利的收入流和利潤擴張，以及創建全面的品牌解決方案並利用我們的多元化資產作為平台。隨著數字廣告市場開始正常化，第二季度的業績開始反映出我們為確保迅速實現盈利而所做的工作。

I'll speak on the numbers shortly, but first, here are my usual notes. I note that our results are presented in Canadian dollars. 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 our forecasting results. I note that our business is 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. The seasonality is isolated to our media and content revenue streams.

我很快就會談到這些數字，但首先，這是我通常的筆記。我注意到我們的結果以加元表示。我們的大部分收入和支出以美元計量，並換算成加元在我們的財務報表中列報。在分析我們的預測結果時，應監控和考慮美元與我們的表示貨幣加元之間的匯率。我注意到，我們的業務受到數字廣告季節性趨勢的影響，在廣告價格和需求不斷增長的推動下，全年每個季度都出現連續增長，廣告價格和需求在第四季度達到頂峰。季節性與我們的媒體和內容收入流無關。

Now let's get back to the financial results. Q2 revenue was $42.6 million, which is down 17% year-over-year, but roughly flat versus Q1. Q2 revenue by source was as follows: media and content, $36.9 million, subscriptions, $4 million, and esports and entertainment, $1.7 million.

現在讓我們回到財務業績。第二季度收入為 4260 萬美元，同比下降 17%，但與第一季度大致持平。第二季度收入來源如下：媒體和內容，3690 萬美元，訂閱，400 萬美元，電子競技和娛樂，170 萬美元。

The Q2 media and content revenue of $36.9 million compares to $45.4 million recorded in Q2, 2022, a decrease of 19%. The decrease was primarily driven by a decrease in RPM caused by lower CPMs in the programmatic markets. Our web RPMs were down 28%, while our video RPMs were down 13% in Q2 year over year. These year-over-year RPM declines improved in Q2 compared to Q1, and we expect them to continue to narrow with further improvements being noticeable subsequent to June 30.

第二季度媒體和內容收入為 3690 萬美元，與 2022 年第二季度的 4540 萬美元相比，下降了 19%。這一下降主要是由於程序化市場每千次展示費用降低導致每千次展示收入下降。第二季度，我們的網絡每千次展示收入同比下降了 28%，而視頻每千次展示收入同比下降了 13%。與第一季度相比，第二季度的同比降幅有所改善，我們預計降幅將繼續收窄，並在 6 月 30 日之後出現明顯的進一步改善。

Q2 media and content revenue was also impacted by lower video views year-over-year with 5.7 billion video views being measured in Q2 2023, as compared to 7.1 billion video views in Q2 2022. The lower video views related to specific low-margin channels, which we elected not to renew, as we focused on more profitable revenues and pruned our portfolio, as Nick discussed.

第二季度媒體和內容收入也受到視頻觀看次數同比下降的影響，2023 年第二季度的視頻觀看次數為57 億次，而2022 年第二季度的視頻觀看次數為71 億次。視頻觀看次數下降與特定的低利潤渠道有關正如尼克所討論的，我們選擇不續簽，因為我們專注於更有利可圖的收入並修剪了我們的投資組合。

Q2 media and content revenue was also impacted by the rescheduling of all NFL TNG episodes originally scheduled for Q2 to later in the NFL TNG season two. This was done to better service our customers' objectives. This had an impact on brand solutions revenue for Q2. However, these episodes will now air in season with the related revenue being recognized in those periods.

第二季度的媒體和內容收入也受到原定於第二季度的所有 NFL TNG 劇集重新安排到 NFL TNG 第二季晚些時候的影響。這樣做是為了更好地服務於客戶的目標。這對第二季度的品牌解決方案收入產生了影響。然而，這些劇集現在將按季播出，並在這些時期確認相關收入。

Q2 subscription revenue remained at an all-time high of $4 million, up 14% from approximately $3.5 million in Q2 last year. This increase was largely driven by an increase in paid subscribers, which were 272,000, as of June 30, 2023, as compared to 258,000, as of June 30, 2022. The yield on a per-subscriber basis was also slightly higher year over year.

第二季度訂閱收入保持在 400 萬美元的歷史最高水平，比去年第二季度的約 350 萬美元增長了 14%。這一增長主要是由於付費訂閱者數量的增加所致，截至2023 年6 月30 日，付費訂閱者數量為272,000 人，而截至2022 年6 月30 日，付費訂閱者人數為258,000 人。每個訂閱者的收益率也同比略高。

Q2 esports and entertainment revenue was $1.7 million, down 23% from $2.2 million in Q2 of last year. The decrease in esports and entertainment revenue is mainly attributable to decreased esports sponsorship activities, which was offset by an increase in event revenue.

第二季度電子競技和娛樂收入為 170 萬美元，比去年第二季度的 220 萬美元下降 23%。電子競技和娛樂收入的下降主要歸因於電子競技贊助活動的減少，但賽事收入的增加抵消了這一減少。

Gross profit was $15 million in Q2, which was similar to the $15.3 million of gross profit reported in Q2 2022. However, gross margin increased 520 basis points to 35.2% from 30%. This gross margin increase reflects the greater contribution of brand solutions and subscription revenue to our overall revenue profile, as well as the elimination of certain unprofitable products and channels, as well as the year-over-year decline in market-driven CPMs. In other words, our strategy to reduce our reliance on network programmatic revenue and focus on profitable revenue is driving improvements in our margin profile.

第二季度的毛利潤為 1500 萬美元，與 2022 年第二季度報告的毛利潤 1530 萬美元相似。不過，毛利率從 30% 增加了 520 個基點至 35.2%。毛利率的增長反映了品牌解決方案和訂閱收入對我們整體收入狀況的更大貢獻，以及某些不盈利的產品和渠道的消除，以及市場驅動的每千次展示費用的同比下降。換句話說，我們減少對網絡程序化收入的依賴並專注於盈利收入的戰略正在推動我們的利潤狀況改善。

Total operating expenses were $24.6 million, down 15.6% from the second quarter last year and down modestly from the $25.2 million we expensed in Q1.

總運營費用為 2,460 萬美元，比去年第二季度下降 15.6%，比第一季度的 2,520 萬美元略有下降。

Operating expenses in Q2 include non-cash items of amortization and depreciation of $2.9 million and share-based compensation of $1.8 million. Notably, operating expenses also include approximately $1 million of expenses relating to restructuring, which are included in salaries and wages and will be non-recurring.

第二季度的運營支出包括 290 萬美元的非現金攤銷和折舊項目以及 180 萬美元的股權激勵。值得注意的是，運營費用還包括約 100 萬美元的與重組相關的費用，這些費用包含在薪水和工資中，並且是非經常性的。

The decrease in cash-based OpEx year over year was primarily due to decreases in esports player team and game expenses of $900,000 and decreases in office and general expenses, which decreased by $800,000. In addition, Q2 of last year included $2.2 million related to the Annual General Meeting, legal and advisory costs, with such costs being nominal this year. We expect somewhat higher operating expenses in the third and fourth quarters, as the NFL TNG season two kicks off in mid-Q3, with the related revenues also coming back online.

基於現金的運營支出同比下降主要是由於電子競技選手團隊和遊戲費用減少了 90 萬美元，以及辦公室和一般費用減少了 80 萬美元。此外，去年第二季度還包括與年度股東大會相關的 220 萬美元、法律和諮詢費用，而今年此類費用只是像徵性的。隨著 NFL TNG 第二季於第三季度中期開始，我們預計第三季度和第四季度的運營支出將有所增加，相關收入也將恢復正常。

Net loss narrowed 40% to $10.2 million in Q2, down from $16.9 million in Q2 2022, resulting in a net loss per share both basic and diluted of $0.07 in Q2, down from $0.12 in Q2 2022.

第二季度淨虧損收窄40%，至1020 萬美元，低於2022 年第二季度的1690 萬美元，導致第二季度基本和攤薄每股淨虧損為0.07 美元，低於2022 年第二季度的0.12 美元。

Turning to the balance sheet. The company ended the quarter with $2.7 million in cash and in addition, had an available operating line of $5 million for total available cash of $7.7 million, as of June 30, 2023. The change in cash during the quarter was largely due to $1.4 million in cash generated by operating activities, offset by $1.3 million used in financing activities mostly relating to repayments on the company's term facility and $800,000 used in investing activities, which is attributable to an earn-out payment relating to the acquisition of Fantasy Football Scout in April 2022.

轉向資產負債表。截至本季度末，該公司擁有 270 萬美元現金，此外，截至 2023 年 6 月 30 日，可用運營額度為 500 萬美元，可用現金總額為 770 萬美元。本季度現金變化主要是由於 140 萬美元經營活動產生的現金，被用於融資活動的130 萬美元（主要與公司定期貸款償還有關）和用於投資活動的80 萬美元（歸因於4 月份收購Fantasy Football Scout 相關的盈利付款）所抵消2022年。

Subsequent to the quarter end, we are in advanced discussions with our lender to document an amendment to our credit facilities to provide additional liquidity through our operating line. Given the improving trends we are seeing in our business and industry, along with the benefit of the amendment to our operating line, we are confident we have sufficient liquidity to execute our near-term objectives. We continue to believe we will exit 2023 and enter 2024, as a profitable business.

季度末後，我們正在與貸方進行深入討論，以記錄對我們信貸安排的修訂，以通過我們的運營業務提供額外的流動性。鑑於我們在業務和行業中看到的改善趨勢，以及我們經營範圍修改的好處，我們相信我們有足夠的流動性來執行我們的近期目標。我們仍然相信，我們將在 2023 年退出並進入 2024 年，成為一家盈利的企業。

And now I wish to speak about the primary drivers for the rest of the year. The best way to do that is to use this second quarter as a baseline. Q2 this year was relatively flat compared to Q1 with some modest margin compression, but there are some significant differences that need to be considered when analyzing this, and these same items will be the primary drivers of revenue, gross margin, and gross profit lift for the rest of the year.

現在我想談談今年剩餘時間的主要驅動因素。最好的方法是使用第二季度作為基準。與第一季度相比，今年第二季度相對持平，利潤率略有壓縮，但在分析這一點時需要考慮一些顯著差異，這些相同的項目將成為收入、毛利率和毛利潤提升的主要驅動力。今年剩下的時間。

Number one is, of course, seasonality, which is expected to significantly impact both CPMs and brand solutions. While CPMs remained challenged in Q2 and are still down year-over-year, we do expect a significant lift in the second half, similar to what we have all heard from the earnings commentary of other large digital publishers over the last few weeks. As ad spending increases in the second half, we also expect a positive impact on Brand Solutions.

第一個當然是季節性，預計這將對每千次展示費用和品牌解決方案產生重大影響。雖然每千次展示費用在第二季度仍然面臨挑戰，並且仍然同比下降，但我們確實預計下半年將大幅提升，這與我們過去幾週從其他大型數字出版商的盈利評論中聽到的情況類似。隨著下半年廣告支出的增加，我們預計也會對品牌解決方案產生積極影響。

Second is NFL TNG. NFL TNG had no episodes in Q2, as it is currently in the off-season. NFL TNG has a material impact on brand solutions' revenue and will return in September.

其次是NFL TNG。 NFL TNG 在第二季度沒有出現任何事件，因為目前正處於休賽期。 NFL TNG 對品牌解決方案的收入產生了重大影響，並將於 9 月回歸。

And third is events. The company does not have any major events in Q2, like the Pocket Gamer Connects London event, which was held in Q1. Our large events will return in Q3 with Pocket Gamer Connects Helsinki scheduled for September. These events are accretive to gross margin.

第三是事件。該公司在第二季度沒有舉辦任何重大活動，例如第一季度舉辦的 Pocket Gamer Connects London 活動。我們的大型活動將於第三季度回歸，Pocket Gamer Connects Helsinki 計劃於 9 月舉行。這些事件會增加毛利率。

These items, combined with our product initiatives, including U.GG's expansions into Valorant and World of Warcraft, Icy Veins quickly becoming the primary destination for fans of the newly launched blockbuster title, Diablo IV and TSR undergoing a complete subscription upgrade drive -- drive increased management confidence about the second half. And while our product offerings continue to entertain our communities of gaming fans, our brand solutions continue to help brands reach our coveted audiences, and the stats about our repeat business speak for themselves.

這些產品與我們的產品計劃相結合，包括U.GG 向《Valorant》和《魔獸世界》的擴展，《Icy Veins》迅速成為新推出的大作、《暗黑破壞神IV》和TSR 粉絲的主要目的地，正在進行全面的訂閱升級驅動——驅動管理層對下半年的信心增強。雖然我們的產品繼續為我們的遊戲粉絲社區帶來歡樂，但我們的品牌解決方案繼續幫助品牌吸引我們夢寐以求的受眾，而有關我們回頭客業務的統計數據不言而喻。

In the second quarter, repeat business accounted for 62% of total direct sold deals and 66% of total brand solutions revenue. This means that a customer of Enthusiast Gaming is likely to come back, and when they do, they are likely to spend more. Therefore, it should be no surprise that we continue to set records with the single largest direct sold deal in company history being sold subsequent to the second quarter. For all these reasons, we believe we have a clear sight line to a successful and profitable second half, particularly in Q4.

第二季度，回頭客業務佔直銷交易總額的 62%，佔品牌解決方案總收入的 66%。這意味著 Enthusiast Gaming 的客戶很可能會回來，而且當他們回來時，他們可能會花費更多。因此，我們在第二季度之後繼續創下公司歷史上最大單筆直銷交易的記錄也就不足為奇了。出於所有這些原因，我們相信我們對下半年的成功和盈利有清晰的願景，特別是在第四季度。

I wish to thank my team for their work on the quarter, and I also wish to congratulate Nick on his first full quarter, as our Chief Enthusiast Officer. We've been very hard at work and are glad to bring this quarter to market and are looking forward to getting back to our business. And of course, ladies and gentlemen, our business is the business of gaming.

我要感謝我的團隊在本季度所做的工作，我還要祝賀尼克作為我們的首席愛好者官完成了他的第一個完整季度。我們一直在努力工作，很高興將本季度推向市場，並期待著恢復我們的業務。當然，女士們先生們，我們的業務是遊戲業務。

Thank you. Operator, I kindly turn it back to you.

謝謝。接線員，請您將其轉回給您。

(Operator Instructions) Mike Crawford, B. Riley Securities.

（操作員指示）Mike Crawford，B. Riley Securities。

Thank you. First question is regarding brand solutions deal pricing. And I know it's not a simple answer because it's not just like a programmatic CPMs, but how would you characterize the types of prices you're able to negotiate with your customers that are advertising for your integrated solutions?

謝謝。第一個問題是關於品牌解決方案交易定價。我知道這不是一個簡單的答案，因為它不僅僅像程序化每千次展示費用，但您如何描述您能夠與為您的集成解決方案做廣告的客戶協商的價格類型？

Well, Hi, Mike. It's Nick here. Thank you. Thank you for that question. I think there's no one standard fits all. We've recognized that it really does depend on the mix of the solution that's being designed. What is the level of content build? What is the scale and popularity of the creator that they want, some are more -- some brands are more discerning and determined to choose and be very involved in that process, other than leave it for us? What is the set cost going to be? What level of media support is around it? What kind of impression level do they want?

嗯，嗨，邁克。尼克在這裡。謝謝。謝謝你提出這個問題。我認為沒有一個標準適合所有人。我們已經認識到，它確實取決於正在設計的解決方案的組合。內容構建的水平如何？他們想要的創作者的規模和知名度是多少，有些品牌更有眼光，有決心選擇並積極參與這個過程，而不是把它留給我們？設定成本是多少？圍繞它的媒體支持程度如何？他們想要什麼樣的印像水平？

What I would say is that like anything, we're recognizing that two things that we have made a significant shift on. One, we hired a top executive in all things pricing and packaging from Barstool Sports. Now every single one of the brand solutions in terms of the way they're packaged and priced is going through a central function to ensure that we've secondly got that consistency.

我想說的是，就像任何事情一樣，我們認識到我們已經在兩件事上做出了重大轉變。第一，我們從 Barstool Sports 聘請了一位負責所有定價和包裝事宜的高管。現在，每一個品牌解決方案的包裝和定價方式都經過一個核心功能，以確保我們其次獲得一致性。

The second thing that's important is we've changed all compensation terms for -- we're changing is going on right now with our sellers to ensure that gross margin is a key factor within their commission plans, as well as gross profit -- gross profit margin, as opposed to just gross revenue. So we're looking at the mix of media is certainly higher when we're selling video with display that is obviously the video that we're generating on YouTube, and we're packaging that up directly. So I'm very pleased with the level of price increase we're generating across the board, and we're especially seeing that on recurring clients. But there isn't, Mike, one standard set price, but there is increasingly a standard process and a standard format by which we have individual criteria and the components of each brand solutions being quite accordingly.

第二重要的事情是我們已經改變了所有補償條款——我們正在與我們的賣家進行改變，以確保毛利率是他們的佣金計劃以及毛利潤中的一個關鍵因素——毛利率利潤率，而不僅僅是總收入。因此，當我們銷售帶有顯示屏的視頻時，我們所考慮的媒體組合肯定會更高，這顯然是我們在 YouTube 上生成的視頻，並且我們直接將其打包。因此，我對我們全面提高價格的水平感到非常滿意，尤其是在老客戶身上看到了這一點。但是，邁克，沒有一個標準的設定價格，但是越來越多的標準流程和標準格式，通過這些標準流程和標準格式，我們有單獨的標準，並且每個品牌解決方案的組件都非常相應。

Thank you, Nick. And then maybe an extension of some of the unique proprietary content you're creating with Tuesday Night Gaming with the NFL is what -- when might we hear one way or the other regarding the discussions with two other major US sports leagues. And would it be out of the question that something could be done this season with them?

謝謝你，尼克。然後，也許您在周二晚上與NFL 的比賽中創建的一些獨特專有內容的擴展是什麼- 我們什麼時候可以聽到關於與其他兩個美國主要體育聯盟的討論的一種方式或另一種方式。這個賽季不可能和他們一起做點什麼嗎？

-Not with -- unlikely -- unlikely to announce both in quarter three, we are very confident to announce one in quarter three and we're very -- as soon as we have a deal signed, we are packaging and productizing and taking that to market. And we've already been doing that conceptually enough to give us the confidence that this is an important partnership deal that Matt Goodman is looking to close down. I think it's unlikely that the second one will be in market in quarter -- in 2023, but very confident that's going to start very soon in 2024.

- 不會- 不太可能- 不太可能在第三季度宣布兩者，我們非常有信心在第三季度宣布一個，而且我們非常- 一旦我們簽署了協議，我們就會包裝和產品化並採取這一行動市場。我們已經在概念上做到了這一點，足以讓我們相信這是馬特·古德曼 (Matt Goodman) 尋求完成的一項重要合作協議。我認為第二個不太可能在 2023 年這個季度上市，但非常有信心這將很快在 2024 年開始。

Excellent. Just one more, if you don't mind. So on Friday, it was disclosed that Barcelona has agreed to -- its media arm that includes esports and other proprietary content they're creating is going public potentially with a business combination, with a SPAC, with a $1 billion valuation. And I'm wondering not only the parallels between maybe that business and your business, but if you had any sense of what revenue that entity has since from what we could tell, those revenue details were kind of missing.

出色的。如果你不介意的話，就再加一張吧。因此，週五有消息稱，巴塞羅那已同意——其媒體部門（包括電子競技和他們正在創建的其他專有內容）可能通過與 SPAC 的業務合併進行上市，估值為 10 億美元。我不僅想知道該業務與您的業務之間的相似之處，而且如果您對該實體自我們所知以來的收入有任何了解，那麼這些收入細節有點缺失。

Well, they are, I would imagine that -- that is a very -- obviously, with Barcelona being such a high-profile global team, that is a really smart move for them. And I think they're going to look to leverage that and leverage that brand equity and into esports, it does make all the sense in the world. Luminosity, we're striking deals with one now. We've already done one. We're striking deals with the second of the biggest Mexican teams, and we're also having other conversations across Latin America.

嗯，我想，這非常明顯，巴塞羅那是一支如此高調的全球球隊，這對他們來說是一個非常明智的舉動。我認為他們會尋求利用這一點並利用品牌資產進入電子競技領域，這在世界上確實有意義。 Luminosity，我們現在正在與其中之一達成交易。我們已經做了一個。我們正在與墨西哥第二大球隊達成交易，並且我們還在拉丁美洲進行其他對話。

So I think that we're certainly keen to talk with Barcelona and the Barca package that we've also seen to discuss with them how they realize that opportunity because it's important for us and the big opportunity with obviously Spanish content being so strongly followed and engaged by the US Hispanic Latino population, there's an opportunity there for us.

所以我認為我們當然熱衷於與巴塞羅那和巴薩的一攬子計劃進行交談，我們也看到了與他們討論他們如何實現這個機會，因為這對我們來說很重要，而且顯然西班牙內容受到如此強烈的關注，這是一個巨大的機會受到美國西班牙裔拉丁裔人口的歡迎，我們有機會。

And that's the other thing that I want to make sure that you raised a very, very good point that we want to take on board is the fact that when we think about the importance in a market, where our main focus is in the US, which about 332 million people, we do know we have 42 million African-American citizens, we have 62 million Hispanic Latino, we have 18 million Asian-American. We know that there are remarkable opportunities for brands seeking to better engage with particular audiences and particular communities, and we strongly believe that sports and our partnership with sports leagues and even within esports is an important opportunity. So we're going to be investigating that, Mike.

這是我想確保你提出的一個非常非常好的觀點，我們想要接受的另一件事是，當我們考慮市場的重要性時，我們的主要關注點是美國，大約有3.32 億人，我們確實知道我們有4200 萬非裔美國公民，我們有6200 萬拉美裔美國人，我們有1800 萬亞裔美國人。我們知道，對於尋求更好地與特定受眾和特定社區互動的品牌來說，存在著巨大的機會，我們堅信體育以及我們與體育聯盟甚至電子競技領域的合作夥伴關係是一個重要的機會。所以我們要對此進行調查，邁克。

All right. Thank you very much. And I was very pleased to hear Alex say that you expect to be profitable by yearend. Thank you.

好的。非常感謝。我很高興聽到亞歷克斯說你們預計到年底就能盈利。謝謝。

Thanks, Mike.

謝謝，邁克。

Kevin Krishnaratne, Scotiabank.

凱文·克里希納拉特納 (Kevin Krishnaratne)，豐業銀行。

Hey there. Good evening. Just on the -- just want to confirm on the brand -- sorry, the brand solutions revenue, it was down Q1 and Q2, but that's because of the dynamic of NFL, right? So would that have been up quarter over quarter? And is that what sort of trend that you expect to see over Q3 and Q4?

嘿。晚上好。只是 - 只是想確認一下品牌 - 抱歉，品牌解決方案收入第一季度和第二季度有所下降，但這是因為 NFL 的動態，對吧？那麼這個數字會比上一季度有所上升嗎？您預計第三季度和第四季度會出現這種趨勢嗎？

Well, Kevin, thank you for your question, and the answer is a conclusive yes. The level of effort and resource and energy we're putting against the brand solutions, it continues unabated, and the acknowledgment of the market, and certainly, as I talked about in my remarks, when I look at the pipe for quarter two, for quarter three and quarter four, and I look at the scale and size of the logos coming back recurring clients, as well as new logos and the size of the deals, it's very reassuring. So the answer is, had we had NFL in quarter two, we would have been in the marketplace and really merchandising and selling those deals, but we didn't.

好吧，凱文，謝謝你的問題，答案是肯定的。我們針對品牌解決方案投入的努力、資源和精力水平，它繼續有增無減，以及市場的認可，當然，正如我在講話中談到的，當我查看第二季度的管道時，第三季度和第四季度，我查看了經常性客戶回來的徽標的規模和大小，以及新徽標和交易的規模，這非常令人放心。所以答案是，如果我們在第二季度有 NFL，我們就會進入市場並真正推銷和銷售這些交易，但我們沒有。

Okay, got it. Thanks for that. And so there was some revenue, I guess, pushed out from content that you produce from Q3, Q4. So that will come into Q3. Does the profit profile look better, though, in Q3 because you've already sort of incurred some of the expenses for the production on that content in Q2? So trying to think about the profitability profile heading into Q3?

好，知道了。感謝那。因此，我想，有一些收入是從第三季度、第四季度製作的內容中擠出的。這將進入第三季度。不過，第三季度的利潤狀況看起來是否更好，因為您已經在第二季度支付了該內容的部分製作費用？那麼想考慮一下第三季度的盈利狀況嗎？

Yeah, Alex, can you take that one, please?

是的，亞歷克斯，你能拿走那個嗎？

I'd be happy to. Thank you, Nick. Hey, Kevin. Yes, so as Nick said, definitely, it had an impact. Brand solutions down slightly quarter over quarter, but brand solutions included a significant amount of NFL revenue in Q1. And now what we see in Q2, there were some NFL costs -- there was zero NFL revenue recognized in Q2 simply because we did not deliver air any content. But as you also heard from myself and Nick, a lot of content has been sold, including our largest deal ever. So yes, that revenue -- those episodes will be pushed and served later in the year. Some costs were recognized in the quarter and no revenue was recognized.

我很樂意。謝謝你，尼克。嘿，凱文。是的，正如尼克所說，它確實產生了影響。品牌解決方案環比略有下降，但品牌解決方案在第一季度包含大量 NFL 收入。現在我們在第二季度看到，有一些 NFL 成本 - 第二季度確認的 NFL 收入為零，僅僅是因為我們沒有提供任何內容。但正如您從我和尼克那裡聽到的那樣，很多內容已經售出，包括我們有史以來最大的一筆交易。所以，是的，這些收入將在今年晚些時候推出並提供。本季度確認了一些成本，但沒有確認收入。

So that will improve the profit profile somewhat when we do air those episodes, but there will still be a regular -- I wouldn't say, it'd be too material. I would still expect -- the NFL TNG because it is a live show, right? So most of the production cost, most of the talent costs will still come into play with those episodes. However, we are selling individual episodes and these sponsorships are being done profitably. So there will be some lift to the profit profile for NFL in the later quarters because there were some expenses in this quarter without any revenue recognized.

因此，當我們播出這些劇集時，這將在一定程度上改善利潤狀況，但仍然會有常規節目——我不會說，這太重要了。我仍然期待 NFL TNG，因為它是現場表演，對嗎？因此，大部分製作成本、大部分人才成本仍將在這些劇集中發揮作用。然而，我們正在銷售單集，並且這些贊助是有利可圖的。因此，NFL 在後面幾個季度的利潤狀況將會有所提升，因為本季度有一些費用，但沒有確認任何收入。

Okay. Got it. Thanks for that. I think you made a -- it looks like by your assumption, you've exited some of the relationships on the video side with some customers that were maybe less profitable. Do you have an estimate for how much that is on an annual basis in terms of revenue?

好的。知道了。感謝那。我認為你做了一個——根據你的假設，你已經退出了與一些利潤可能較低的客戶在視頻方面的一些關係。您是否估算過每年的收入是多少？

I can take that again. I mean, it's baked in now. So that's -- it's baked in now. So you can see in the MD&A, we do disclose the movements in RPMs and how much video comes from -- how much revenue, excuse me, comes from video and how much comes from web platforms. So all the details are in there. Look, media and content was down substantially year over year, just over $8 million decrease there. But a big chunk of that is CPM and then further that decrease in the video views, which I guess would be about 15% on the video view side. So those would be the pieces that tied together. The bigger driver is still the CPMs, but the video views did have an impact, but that's baked in. I wouldn't expect -- it's normalized at this point. So -- so I wouldn't expect a further decline from that.

我可以再接受一次。我的意思是，它現在已經烤好了。所以現在已經烤好了。所以你可以在 MD&A 中看到，我們確實披露了 RPM 的變動以及有多少視頻來自——對不起，有多少收入來自視頻，有多少來自網絡平台。所以所有的細節都在那裡。看，媒體和內容同比大幅下降，減少了 800 萬美元多一點。但其中很大一部分是每千次展示費用 (CPM)，然後是視頻觀看次數的進一步減少，我猜視頻觀看次數方面大約會減少 15%。所以這些就是聯繫在一起的各個部分。更大的驅動因素仍然是每千次展示費用，但視頻觀看次數確實產生了影響，但這已經是根深蒂固的了。我沒想到——它在這一點上已經標準化了。所以——所以我預計不會進一步下降。

Okay. No, I was just trying to get a sense for -- I think there was some commentary that you exited some relationships with some content creators, and if there was a view on how much revenue at -- those creators may have accounted for in the base? I can just take it offline with you.

好的。不，我只是想了解一下——我認為有一些評論說你退出了與一些內容創作者的一些關係，如果有人對這些創作者可能在收入中佔了多少收入有看法的話根據？我可以和你一起離線。

Oh, no problem. That is -- sure. All that information is in the MD&A. It be --

哦，沒問題。那是——當然。所有這些信息都包含在 MD&A 中。是——

Got it.

知道了。

Yeah. on the video -- it will be the -- it's more -- it's -- but the primary driver is still the CPM. So think of it like 5% -- 1% -- 3% to 5% would be an approximate number of the total revenue. But more -- for more specific details, all the RPMs, the video views,and the movement on -- specifically on the video, all the stats are provided there.

是的。在視頻上——這將是——更多的是——但主要驅動因素仍然是每千次展示費用。因此，可以認為 5% - 1% - 3% 到 5% 是總收入的近似數字。但更多 - 對於更具體的細節，所有 RPM、視頻觀看次數和運動 - 特別是在視頻上，所有統計數據都在那裡提供。

All right. Got it. Thanks. I'll jump back in the queue. Thanks, guys.

好的。知道了。謝謝。我會跳回到隊列中。多謝你們。

Sure. Thanks.

當然。謝謝。

Robert Young, Canaccord Genuity.

羅伯特·楊，Canaccord Genuity。

Hi. Good evening. In the release and I think in the prepared comments, you talked about profitability timeline. What type of profitability is that? Is that EBITDA you're talking about there? Was it by end of year? Maybe just refresh that for me, please.

你好。晚上好。在新聞稿中，我認為在準備好的評論中，您談到了盈利時間表。這是什麼類型的盈利能力？你說的是 EBITDA 嗎？是年底的時候嗎？也許請幫我刷新一下。

Yeah, Robert. Thank you for that question. As I've said all along, I said in the last quarter's earnings, certainly reemphasizing it now, we will be a profitable company, as we go into 2024. It is our determination as a leadership team. We're focusing on the big five drivers to ensure that we enter 2024, as a profitable business. So I can't give you the specifics as to exactly what month we're going to be turning profitable, but we're very confident we're going to be doing that by the end of the year.

是的，羅伯特。謝謝你提出這個問題。正如我一直以來所說的那樣，我在上個季度的收益中說過，現在當然再次強調，進入 2024 年，我們將成為一家盈利的公司。這是我們作為領導團隊的決心。我們專注於五個主要驅動因素，以確保我們進入 2024 年成為一家盈利的企業。因此，我無法向您詳細說明我們將在哪一個月實現盈利，但我們非常有信心在年底前實現盈利。

Okay. That's great. And then the second question, I think just a commentary around having sufficient cash and availability on the credit line to get to that profitability. And you also said that you're in negotiations and around that credit line. I was just curious, are you able to get to profitability on the current credit line, or would there -- is there -- are you suggesting, or would you be required to and that credit line to get there?

好的。那太棒了。然後是第二個問題，我認為只是關於擁有足夠的現金和信貸額度以獲得盈利能力的評論。您還說過，您正在圍繞該信用額度進行談判。我只是很好奇，你是否能夠在當前的信貸額度下實現盈利，或者你是否會建議，或者你是否需要通過該信貸額度來實現盈利？

No. Well, I say, well -- I'll let Alex take that because he's done a very good job working with our existing lenders to demonstrate to reassure their confidence in our business model. So Alex, why don't you respond to -- on that, please?

不。好吧，我說，好吧——我會讓亞歷克斯接受這一點，因為他在與我們現有的貸方合作方面做得非常好，以證明他們對我們的商業模式有信心。那麼亞歷克斯，你為什麼不對此做出回應呢？

Well, thank you, Nick, and maybe -- I'd be happy to. Hey, Rob. So yes, I mean, what I've always said, there's a couple of things we're doing. One, we're being extremely efficient, like all businesses in our sector and even the broad tech industry for being as efficient as possible on our expenses. Number two, though, more importantly, and I've said this a number of times, we are also being very efficient, strict -- being more strict with our working capital. And I've always said there is actually a lot of value tied up in there. This quarter, we have about $33 million of accounts receivable, trade receivables, and other receivables on the balance sheet. At the same time, when we look then to our facilities, we have an operating line against that of $5 million. So I believe we are underleveraged on a debt-equity basis. I believe we're underleveraged on a debt-to-asset basis as well, and this one is a no-brainer.

好吧，謝謝你，尼克，也許——我很樂意這樣做。嘿，羅布。所以，是的，我的意思是，正如我一直說的，我們正在做一些事情。第一，我們的效率非常高，就像我們行業的所有企業，甚至整個科技行業一樣，我們的開支盡可能高效。但第二，更重要的是，我已經說過很多次了，我們也非常高效、嚴格——對我們的營運資金更加嚴格。我一直說這裡面實際上蘊含著很多價值。本季度，我們的資產負債表上約有 3300 萬美元的應收賬款、貿易應收款和其他應收款。與此同時，當我們審視我們的設施時，我們的運營線為 500 萬美元。因此，我認為，從債務股本來看，我們的槓桿率較低。我相信，從債務與資產的角度來看，我們的槓桿率也不足，這是理所當然的。

So to answer the question, could we get there without? I believe we could because we could further find ways to unlock the value of our working capital. However, we also are very bullish about our pipeline. And we are setting -- we are selling -- selling bigger and bigger deals. And some of our success in the short term, we had to pay for, and that's more campaigns to run, and we want to make sure we're prepared for that.

那麼，要回答這個問題，我們是否可以做到這一點？我相信我們可以，因為我們可以進一步找到釋放營運資本價值的方法。然而，我們也非常看好我們的管道。我們正在製定——我們正在出售——出售越來越大的交易。我們在短期內取得的一些成功是需要付出代價的，而且需要開展更多的活動，我們希望確保為此做好準備。

So -- but with that said, subsequent to the quarter end, we are, as mentioned, in advanced discussions with our lender to document an amendment to our credit facilities to make sure that we have the sufficient and ample liquidity to execute our near-term strategies, and, of course, this through the end of the year, and by the end of the year, we're very confident we will be profitable.

因此，話雖如此，在季度末之後，正如前面提到的，我們正在與貸方進行深入討論，以記錄對我們信貸安排的修訂，以確保我們有足夠和充裕的流動性來執行我們的近期計劃短期戰略，當然，到今年年底，到今年年底，我們非常有信心我們將實現盈利。

So we're just -- we're locking that down. We're moving any short-term liquidity risk because we have a clear sight line to the end of the year, and we want to make sure that there's no hiccups along the way. So I think we could without it. But remember, our operating line is also by far our cheapest cost of capital. So it's a preferred method for myself. And as Nick said, we're very grateful to our long-standing lending partners, who no doubt are listening, and we appreciate their confidence in us and value them as partners.

所以我們只是——我們正在鎖定它。我們正在轉移任何短期流動性風險，因為我們對年底有明確的展望，並且我們希望確保在此過程中不會出現任何問題。所以我認為沒有它我們也可以。但請記住，我們的運營線也是迄今為止我們最便宜的資本成本。所以這是我自己的首選方法。正如尼克所說，我們非常感謝我們的長期貸款合作夥伴，他們無疑正在傾聽，我們感謝他們對我們的信任並重視他們作為合作夥伴。

All right. Thanks a lot for the detailed answer. Maybe last one for me. Last year, if I remember, I think you suggested that there was some holding back for the Q4. Just to make sure that -- I think brands are worried that they wouldn't have enough powder for the important Q4 period now that you're served through maybe a little bit of Q3 here. I'm just curious if you could -- is that same dynamic at play? Are people -- are your customers weighing up for Q4? Or is it more of a linear dynamic this year? And I'll pass the line.

好的。非常感謝您的詳細回答。也許對我來說是最後一張。去年，如果我記得的話，我想你曾建議第四季度有一些阻礙。只是為了確保——我認為品牌擔心他們在重要的第四季度沒有足夠的粉末，因為你可能已經在第三季度得到了一點點服務。我只是好奇你是否可以——同樣的動力在起作用嗎？您的客戶是否正在考慮第四季度的情況？或者說今年更多的是線性動態？我會越過這條線。

Alex, why don't you take that?

亞歷克斯，你為什麼不接受這個呢？

Sure. Thank you. We are seeing it. And we don't want to create this as a KPI, but we can see the -- we have increased visibility. As Nick said, we are increasing our visibility, so we can see a pipeline, Nick gave some stats on that. So I don't want to give more or less. They're out there. But those are very good stats. You can see the visibility we have. And yes, we are seeing activity, a lot of interest in Q4. I think the normal seasonality, Rich -- Rob, you'd be familiar with over the years, I'm very hopeful that we're returning to that normal, and we have a lot of interest in orders in Q -- for Q4.

當然。謝謝。我們正在看到它。我們不想將其創建為 KPI，但我們可以看到 - 我們提高了可見性。正如尼克所說，我們正在提高可見性，因此我們可以看到一條管道，尼克給出了一些相關統計數據。所以我不想付出更多或更少。他們就在那裡。但這些都是非常好的統計數據。您可以看到我們的可見度。是的，我們看到了人們對第四季度的活動和濃厚興趣。我認為正常的季節性，Rich -- Rob，多年來你都會熟悉的，我非常希望我們能恢復正常，而且我們對 Q 的訂單很感興趣 -- 第四季度。

And as I mentioned earlier, that's one of the reasons this demand for back half of the year, media assets, and other solutions for our brands is one of the reasons we rescheduled those episodes for the NFL TNG. So we're seeing a return to that normalcy, which we all recall that in the prior years until -- at least until 2022, that's how it works, right? All like it was always booming in Q4. So hopeful and optimistic for that. But yes, I don't think it's linear. I think it's a lift for Q3 and a bigger lift for Q4.

正如我之前提到的，這就是我們品牌對下半年、媒體資產和其他解決方案的需求的原因之一，也是我們為 NFL TNG 重新安排這些劇集的原因之一。因此，我們正在看到這種常態的回歸，我們都記得在前幾年，直到——至少到 2022 年，這就是它的運作方式，對吧？一切就像第四季度總是蓬勃發展一樣。對此充滿希望和樂觀。但是，是的，我不認為這是線性的。我認為這對第三季度來說是一個提升，對第四季度來說是一個更大的提升。

All right. Thanks, gentlemen. I'll pass the line.

好的。謝謝，先生們。我會過線。

Drew McReynolds, RBC.

德魯·麥克雷諾茲，加拿大皇家銀行。

Yeah. Thanks very much. Twp for you Alex, I think, and then one for you, Nick. Just on the first two. On the operating line, Alex, in terms of getting that larger, can you -- without giving a number, obviously, can you quantify, is it doubling the size or maybe something more? And on the sustained profitability, good to hear, as you get into the seasonally softer Q1 of next year, presumably, just based on your commentary, you expect to remain profitable. So if you could confirm that?

是的。非常感謝。我想，給你亞歷克斯一份，然後給你一份，尼克。就前兩個。在運營方面，亞歷克斯，在變得更大方面，你能——顯然，在不給出數字的情況下，你能量化一下，它的尺寸是增加了一倍還是更多？關於持續盈利能力，很高興聽到，當您進入明年季節性疲軟的第一季度時，大概，僅根據您的評論，您預計將保持盈利。那麼你能確認一下嗎？

And then Nick, just bigger picture on the organizational changes, you alluded to quite a few of them. Where are you on kind of your own road map of optimizing the organization? Are you middle innings, late innings, early innings? Any context there would be great. Thank you.

然後，尼克，關於組織變革的更大前景，你提到了其中的很多變化。您自己的組織優化路線圖處於什麼位置？你是中局、後局、早局嗎？任何背景都會很棒。謝謝。

Okay, Alex, you go first.

好吧，亞歷克斯，你先走。

Sure. Thank you. Hey, Drew, how are you doing? So -- okay, so I'll start with the operating line. Look, it's sufficient. I'll put it this way. We're not talking about a major change to our capitalization. We're not really changing the capitalization of the business. Just a modest increase to ensure we have access to tap our working capital for the remainder of the year, and well, it is a permanent increase with the term of the facility. So I would expect to double or less, like it is modest. We're not really changing the capitalization, but it's sufficient for us. As our loss narrows significantly and turns positive in the back of the year, then it's plenty for us to work with.

當然。謝謝。嘿，德魯，你好嗎？那麼——好吧，我將從操作線開始。看看，就夠了。我會這樣說。我們並不是在談論資本的重大變化。我們並沒有真正改變企業的資本。只是小幅增加，以確保我們能夠在今年剩餘時間內利用我們的營運資金，而且，隨著貸款期限的延長，這是永久性的增加。所以我預計會增加一倍或更少，就像它是適度的一樣。我們並沒有真正改變大小寫，但這對我們來說已經足夠了。隨著我們的損失大幅縮小並在今年下半年轉為正值，我們有足夠的時間來應對。

With that said, I think the second question was on the timing of profitability and then the patterns for next year. Is that correct? So --

話雖如此，我認為第二個問題是盈利的時間以及明年的模式。那是對的嗎？所以 -

Yeah. The -- they are seasonally soft in Q1 and into next year, like obviously, you'll have good momentum coming out of Q4?

是的。 - 他們在第一季度和明年都處於季節性疲軟狀態，顯然，第四季度會有良好的勢頭？

Yeah. So what we're seeing there -- yes, we have great momentum coming out of Q4. When we start looking into the next year, of course, we would expect seasonality to kick back in, like it traditionally does or customarily does in the industry in January, so that would have an impact on CPMs, also on brand solutions. But we have some interesting dynamics here that I think are shining through more and this quarter, particularly versus last quarter because now we've introduced a couple of things. We're in a post-COVID world and our events are actually up 40% year over year, some of these events. London, and we got Helsinki coming up. Like there's a real -- it's a much smaller part of the revenue profile, but it's profitable, it's accretive to margin and we love them, and they're doing great.

是的。所以我們看到的是——是的，我們第四季度的勢頭強勁。當然，當我們開始展望明年時，我們預計季節性會重新出現，就像傳統上或行業在一月份通常所做的那樣，這將對每千次展示費用以及品牌解決方案產生影響。但我們這裡有一些有趣的動態，我認為在本季度，特別是與上季度相比，這些動態更加突出，因為現在我們引入了一些內容。我們正處於新冠疫情后的世界，我們的活動數量實際上同比增加了 40%，其中一些活動。倫敦，我們還有赫爾辛基。就像有一個真實的——它在收入狀況中所佔的比例要小得多，但它是有利可圖的，它可以增加利潤，我們喜歡他們，而且他們做得很好。

So that -- the reason I point that out is because now we've introduced London we got in Q1, and the NFL TNG season, that's the other element of you call it seasonality that we've introduced that's now having a stronger-than-expected impact. So that's why when I look at Q1, I think, okay, yes, for CPM and yes, for brand solutions, but we will still have NFL, and we'll have London, and the events are booming, and NFL TNG is in high demand. So I do expect absolutely it to be less than Q4.

所以，我指出這一點的原因是因為現在我們已經在第一季度引入了倫敦，以及 NFL TNG 賽季，這就是我們引入的另一個你稱之為季節性的元素，它現在具有比-預期影響。所以這就是為什麼當我看第一季度時，我想，好吧，是的，對於CPM，是的，對於品牌解決方案，但我們仍然會有NFL，我們還會有倫敦，而且賽事正在蓬勃發展，NFL TNG 正在蓬勃發展。高需求。所以我確實預計它絕對會低於第四季度。

But I think our seasonal distribution is starting to flatten out in the first half of the year a bit, and that's why we're seeing comparable Q1s and Q2s. Because Q2 may be flat this year, but it's missing a big event and it's missing NFL. So apples-to-apples, it's actually not -- it's a reasonable increase, which we would be used to seeing. So I think that those two events, those two items in Q1 are starting to flatten that seasonality in the first half. So that -- so yes, I would expect it to be down, but to be kind of more flattish Q1 and Q2, and then a lift up for the second half.

但我認為我們的季節性分佈在今年上半年開始有點趨於平緩，這就是為什麼我們看到第一季度和第二季度具有可比性。因為今年Q2可能表現平平，但缺少了一場大賽事，也缺少了NFL。因此，從同類來看，實際上不是——這是一個合理的增長，我們已經習慣了看到這一點。所以我認為第一季度的這兩個事件、這兩個項目開始削弱上半年的季節性。所以，是的，我預計第一季度和第二季度會有所下降，但會更加平穩，然後下半年會有所上升。

Got it. Thank you.

知道了。謝謝。

And Drew, if I could pick up your third question and thank you for asking it because when you talked about our road map transformation, I love questions like that because I always want to remind everyone that the numbers were a consequence of the business, and the business isn't a consequence of the numbers. And the business is being looked at by the leadership team, which is not just the exec, there's 32 people in our senior leadership team, who took on the lens that I provided to look at the business, through the lens of product, through the lens of content, through the lens of brand, growth, culture, and operations.

德魯，如果我能回答你的第三個問題，謝謝你提出這個問題，因為當你談到我們的路線圖轉型時，我喜歡這樣的問題，因為我總是想提醒大家，這些數字是業務的結果，並且業務不是數字的結果。領導團隊正在審視業務，領導團隊不僅僅是執行官，我們的高級領導團隊中有 32 個人，他們採用我提供的視角來審視業務，通過產品的視角，通過內容的鏡頭，通過品牌、增長、文化和運營的鏡頭。

And each of those six pillars make up our transformational velocity, and they -- the teams work in a cost functional way to ensure that we actually break down silos, increase communication, increase trust, and knowing between the different leaders of the different operations because, as you know, we have 230 employees, and we have over 75 different sort of entities that operate between different games and sites and teams, and you name it. Now everyone is looking at this through the enterprise lens.

這六個支柱中的每一個都構成了我們的轉型速度，它們——團隊以成本功能的方式工作，以確保我們真正打破孤島，增加溝通，增加信任，並了解不同運營的不同領導者之間的情況，因為如您所知，我們有 230 名員工，我們有超過 75 個不同類型的實體，在不同的遊戲、網站和團隊之間運營，凡是您能想到的。現在每個人都從企業的角度來看待這個問題。

And when we think about products, the big three there, obviously, technology, platform, and data. You cannot build a skyscraper on weak foundation. And the foundation for this business is, just like a SaaS company, we are a platform company. We have a platform; on top of the platform, our products; on top of the products, our services. So the technology integrity, the platform rigor across the first-party data capture, and leverage is part of that, the content charter. We talked about the content factory. We are in the ideas business. So we have now rebranded our factory, Final Boss Studio. They're doing great work. They've stopped doing the work that they thought they should be doing, that we couldn't see merit in, either from a fame point of view or fortune point of view.

當我們考慮產品時，顯然，技術、平台和數據是三大要素。你無法在薄弱的地基上建造摩天大樓。這項業務的基礎是，就像 SaaS 公司一樣，我們是一家平台公司。我們有平台；在平台之上，我們的產品；除了產品之外，還有我們的服務。因此，技術完整性、第一方數據捕獲的平台嚴謹性和槓桿作用是內容章程的一部分。我們討論了內容工廠。我們從事創意業務。因此，我們現在將我們的工廠重新命名為 Final Boss Studio。他們做得很好。他們已經停止做他們認為應該做的工作，無論是從名譽的角度還是從財富的角度來看，我們都看不到這些工作的價值。

We're developing the tentpole calendar. Long time in advance, we have a tentpole calendar planned out to mid-2024. So the sales teams can get out there and be selling it and not be twiddling their thumbs, wondering what's happening. And then we see NFL. The NFL has proven to be a major landmark marquee for the biggest brands in the world to be leaning in because it is the biggest and most culturally relevant sport in the US today and following right behind it are the other sports leagues, who are also looking to engage with their next generation of fandom, who are found playing, communicating, and connecting in the gaming communities.

我們正在開發主打日曆。我們提前很長時間就計劃好了到 2024 年中期的主線日曆。因此，銷售團隊可以走出去並進行銷售，而不是無所事事，想知道發生了什麼。然後我們看到了 NFL。事實證明，NFL 是世界上最大品牌的一個重要里程碑，因為它是當今美國規模最大且與文化最相關的運動，緊隨其後的是其他體育聯盟，它們也在尋找與他們的下一代粉絲互動，他們在遊戲社區中玩耍、交流和聯繫。

And then we talk about our brand, not just our awareness, but obviously, our industry leverage. And I've talked about it before, how we're going to market from an industry point of view. How can Uber now be a $1 billion ad business at the end of the year, putting things, doing pop-ups in Uber Eats, and then what are they going to do? We have TV screens. Next, we have an Uber experience. I look at the growth of CTV. I look at the growth of retail media. Streaming audio is an $8 billion category. We are predicting that the TV industry, the linear TV is an 80 -- well, linear TV, this is going to be $61 billion, $25 billion is already in CTV.

然後我們談論我們的品牌，不僅僅是我們的知名度，顯然還有我們的行業影響力。我之前已經談到過，我們如何從行業的角度進行營銷。 Uber 現在怎麼能到了年底就成為了 10 億美元的廣告業務，在 Uber Eats 裡放東西、做彈窗，然後他們要做什麼？我們有電視屏幕。接下來，我們來體驗一下Uber。我關注CTV的成長。我關注零售媒體的增長。流媒體音頻是一個價值 80 億美元的類別。我們預測電視行業，線性電視是一個 80 年代——嗯，線性電視，這將是 610 億美元，CTV 已經有 250 億美元。

Why is it in CTV? Because linear TV's pain is CTV's gain. What does it have over traditional TV? Targeting measurement, interactivity, and e-commerce. We have all those same things. Who's out there talking to the marketplace, talking to all the big brands? Why is it if I'm looking at traditional TV, you've got $67 billion, I'm estimating over $11 billion will peel off linear TV in the US in the next three years, and we are determined to be there to capture it because the industry spends this whole time talking about retail media, commerce media, CTV, no one talked about gaming media because no one has been out there representing the scale, the interactivity, and the measurement of that.

為什麼會出現在央視？因為線性電視的痛苦正是 CTV 的收穫。與傳統電視相比，它有什麼特點？針對測量、交互性和電子商務。我們擁有所有這些相同的東西。誰在與市場對話，與所有大品牌對話？為什麼如果我看傳統電視，你有 670 億美元，我估計未來三年美國線性電視將超過 110 億美元，而我們決心在那裡抓住它因為整個行業一直在談論零售媒體、商業媒體、CTV，沒有人談論遊戲媒體，因為沒有人代表其規模、互動性和衡量標準。

And then so when we talk about growth, we talked about it. Our ad tech needs to be brilliant. We're not going to have an SSP partner. We're not going to -- not be integrated with the white data partners. We're not going to have a confusion about who's our ad serving partner. We're cleaning it all up at speed. And then we're driving our brand solutions, and then we're really focusing on subscriptions and making sure that where we can, we're going to build those alternative sources to our growth.

因此，當我們談論增長時，我們就談論它。我們的廣告技術需要出色。我們不會有 SSP 合作夥伴。我們不會——不會與白色數據合作夥伴整合。我們不會對誰是我們的廣告服務合作夥伴感到困惑。我們正在快速清理一切。然後我們正在推動我們的品牌解決方案，然後我們真正專注於訂閱，並確保在可能的情況下，我們將建立這些替代來源來促進我們的增長。

But from a cultural point of view, that's been important because teams win, no individuals and every team needs a leader, but it's not about the leaders, it's about the team. And now we have a team that's connecting, that's communicating, that's establishing some real pride in the fact that we are at the vanguard of not just fixing a business or building a brand but building an industry category.

但從文化的角度來看，這很重要，因為團隊獲勝，沒有個人，每個團隊都需要領導者，但這與領導者無關，而是與團隊有關。現在，我們擁有一支能夠相互聯繫、能夠溝通、能夠建立真正的自豪感的團隊，因為我們不僅是修復業務或打造品牌的先鋒，而且是打造行業類別的先鋒。

But to do that, we also need the operations. Great operational rigor, operations like a proper ERP network, working with NetSuite, having fully integrated, all the leverage on AI, whether we do now ChatGPT for engineering, we've now had the AI policies on all the data and privacy security, we use an advanced AI for all data insights and analytics.

但要做到這一點，我們還需要操作。高度的運營嚴謹性，像適當的ERP 網絡一樣的運營，與NetSuite 合作，完全集成，充分利用人工智能，無論我們現在是否使用ChatGPT 進行工程，我們現在已經有了關於所有數據和隱私安全的人工智能政策，我們使用先進的人工智能進行所有數據洞察和分析。

And then where can we drive automation? So the business focus, where are we? We meet as a team. They meet weekly. They meet me bi-weekly by group and then we meet as a full SLT on a monthly basis. So we are on the road map.

那麼我們可以在哪裡推動自動化呢？那麼業務重點，我們在哪裡？我們作為一個團隊見面。他們每週見面。他們每兩週按小組與我會面一次，然後我們每月以完整的 SLT 形式與我會面。所以我們已經在路線圖上了。

It is -- people say, it's very tough, and it's aggressive. It's not, it's just accountable. We're introducing a culture of meritocracy and accountability. So people have to do what they say they're going to do, and they're doing it. So I could not be more proud of this young, highly entrepreneurial organization, who's getting up to speed very swiftly with what it's like to be an enterprise business with a mentality that we're already a $1 billion market cap. So I hope that answers your question, Drew.

人們說，這非常艱難，而且很有侵略性。不是，只是負責而已。我們正在引入精英管理和問責文化。因此，人們必須按照他們所說要做的去做，並且他們正在這樣做。因此，我為這個年輕的、高度創業精神的組織感到無比自豪，他們正在迅速適應企業業務的發展，並認為我們的市值已經達到 10 億美元。所以我希望這能回答你的問題，德魯。

Yes, it does, Nick. Thank you very much.

是的，確實如此，尼克。非常感謝。

Gianluca Tucci, Haywood Securities.

吉安盧卡·圖奇，海伍德證券。

Hi, guys. Good afternoon. Most of my questions have been answered. But just on subscriptions, it's nice to see the continued and methodical growth in that business line. Could you speak to the efforts there in growing the subscriber base going forward, if there's anything different that you guys are doing to add subscribers?

嗨，大家好。下午好。我的大部分問題都得到了解答。但僅就訂閱而言，很高興看到該業務線持續有序的增長。如果你們在增加訂閱者方面採取了哪些不同的措施，您能談談在未來擴大訂閱者基礎方面所做的努力嗎？

Well, hi, Gianluca, and thank you for your question. I mean, at this stage, we have started a single analysis and engineering point of view, there are 18 steps for signing up to be a subscriber. It's now down to three. We're changing the credit card acceptance policies on that. So more flexibility about that. And then there's a greater level of analysis going into every e-mail, so we've identified that we have in our system, whether they're active or inactive and how can they be used for remarketing, so we can actually use those as well.

嗯，你好，Gianluca，謝謝你的問題。我的意思是，在這個階段，我們已經開始單一的分析和工程角度，註冊成為訂閱者有 18 個步驟。現在已經減少到三個了。我們正在改變信用卡接受政策。因此，這方面的靈活性更大。然後對每封電子郵件進行更高水平的分析，因此我們確定了我們系統中的電子郵件，無論它們是活躍的還是非活躍的，以及它們如何用於再營銷，因此我們實際上可以將它們用作出色地。

So as I said, we've signed up our consultant, who's got tremendous experience with Expedia and Microsoft, and he spent his whole life in the whole customer acquisition subscription-building phase. And we've got a readout from him in three -- in two weeks actually to the exec team. And we're most excited because he's not just focusing on The Sims Resource, and we're already -- the engineering work is already underway in terms of the site redesign and the site reorganized, as I said, all things sign on, to make that smooth and seamless UX.

正如我所說，我們已經簽約了我們的顧問，他在 Expedia 和 Microsoft 方面擁有豐富的經驗，他一生都致力於整個客戶獲取訂閱建設階段。我們在三週內就收到了他向執行團隊傳達的信息。我們最興奮的是，因為他不僅僅專注於《模擬人生》資源，而且我們已經——網站重新設計和網站重組方面的工程工作已經在進行中，正如我所說，所有事情都已登錄，以打造流暢無縫的用戶體驗。

But I think, importantly, we're going to be looking where are the sites and the community areas or the games, where we can start to integrate -- what value add could we offer to be able to charge a subscription. And certainly, we're going to institute a policy, where there isn't just going to be all things free easy download without any attempt, capture people's identity and still today in the US, the email is the number one fidelity for identity that exists. So I -- on our next call, I'll give you substantive response to that specific questions by actually telling you the things we've done and how they're driving an uptick to subscription revenue. But I can't really say much more today.

但我認為，重要的是，我們將尋找我們可以開始整合的網站、社區區域或遊戲在哪裡——我們可以提供哪些附加值來收取訂閱費用。當然，我們將製定一項政策，不僅僅是所有東西都可以免費輕鬆下載，無需任何嘗試，捕獲人們的身份，並且在今天的美國，電子郵件仍然是第一大身份保真度，存在。因此，在下次電話會議上，我將通過實際告訴您我們所做的事情以及它們如何推動訂閱收入的增長，對這些具體問題做出實質性答复。但今天我真的不能說更多。

Thanks, Nick. I appreciate the color. And then, just in terms of your pipeline for the back half of the year, like -- I like to put it in, I guess, context, how -- like can you quantify the degree to which it is bigger than the first half of the year? I'm just trying to get a sense of the magnitude of difference the second half will look from the first half of the year?

謝謝，尼克。我很欣賞它的顏色。然後，就下半年的管道而言，就像 - 我想把它放在背景中，如何 - 就像你可以量化它比上半年更大的程度今年？我只是想了解下半年與上半年的差異有多大？

Well, that's a great question and certainly we'll be bigger. How much bigger? I think, Alex, to make sure that we give the right kind of guidance, I think you should handle that response, please.

嗯，這是一個很好的問題，我們當然會變得更大。大了多少？我認為，亞歷克斯，為了確保我們提供正確的指導，我認為你應該處理這個回應。

No problem. My pleasure. Well, I'll put it this way, it will be materially bigger. We don't want to set a KPI around it specifically because I'll give you an example. For example, we've just sold our largest sale ever, and so these are -- some of these deals are getting bigger and bigger. Of course, Haywood, and you, Gianluca would, there was a time when we celebrated 50,000 deals, 100,000 deals, then we sell at $0.5 million and $1 million, we're well above that now. So single deals can now move the levers, which is why I'm cautious to set any KPI against it.

沒問題。我的榮幸。好吧，我會這樣說，它會變得更大。我們不想專門圍繞它設置 KPI，因為我會給你一個例子。例如，我們剛剛完成了有史以來最大的一次銷售，所以這些交易中的一些交易規模越來越大。當然，海伍德，還有你，吉安盧卡，曾經有一段時間，我們慶祝了50,000 筆交易，100,000 筆交易，然後我們以50 萬美元和100 萬美元的價格出售，我們現在遠遠高於這個水平。因此，單筆交易現在可以發揮槓桿作用，這就是為什麼我在設置任何 KPI 時都持謹慎態度。

What we like to see is a full pipe. We like to see new logos. We like to see repeat business coming in at higher rates like it did this quarter. 62% of deals of repeat clients generate 66% of the brand solutions revenue. So I will just say -- expect modest or moderate uptick in Q3 like we spoke about, and then that will be helped -- partly fueled by NFL, and then a larger leap in Q4, like I spoke about earlier. I will say it will be material for certainly.

我們希望看到的是一個完整的管道。我們喜歡看到新的標誌。我們希望看到重複業務以更高的速度出現，就像本季度一樣。 62% 的回頭客交易產生了 66% 的品牌解決方案收入。所以我只想說——預計第三季度會出現溫和或適度的上升，就像我們談到的那樣，然後這將有所幫助——部分是由NFL 推動的，然後是第四季度的更大飛躍，就像我之前談到的那樣。我會說這肯定是重要的。

Yeah. I'd like to jump on that, though, Gianluca. I think there is another part of this. What I get excited about is I'm seeing new logos in the pipeline like Dove, having won, that's our first -- we've got our first Unilever brand. When I think about P&G, P&G has 60 household brands. It spends $4.4 billion on global advertising. It has $11 billion brand. They have Charmin, they have Crest, they have Dawn, they have Gillette, they have Pampers, they have Tide. They have decreased their digital spend by $200 million over the last year, and then increasing it in TV and radio, and retail media.

是的。不過，我想繼續說下去，吉安盧卡。我認為這還有另一部分。讓我興奮的是，我看到新的標誌正在醞釀之中，比如多芬，贏得了勝利，這是我們的第一個標誌——我們有了我們的第一個聯合利華品牌。當我想到寶潔時，寶潔擁有 60 個家喻戶曉的品牌。它在全球廣告上花費了 44 億美元。它擁有價值110億美元的品牌。他們有 Charmin、他們有佳洁士、他們有黎明、他們有吉列、他們有幫寶適、他們有汰漬。去年他們減少了 2 億美元的數字支出，然後增加了電視、廣播和零售媒體的支出。

And now, I'm going to go to the top of P&G, and I already have done to really understand the Global Head of Innovation and the Global Head of Marketing, give us a test. You're testing with us, so now give us another brand -- or of that individual brand, we want a bigger share, which you got to get in. And same way we're getting in with PepsiCo, and we're getting in with Unilever, and we're getting in with Google, and we're getting in with Coca-Cola. These are huge multi-brand players, and they are all relatively uninformed, yet excited and supportive in understanding how to navigate their way through the gaming media beyond just running the pre-roll video on Twitch. So they see that, that's just handled as a programmatic buy, as part of the media buy.

現在，我要去寶潔的高層，我已經真正了解了全球創新主管和全球營銷主管，給我們一個考驗。你正在與我們一起進行測試，所以現在給我們另一個品牌——或者那個單獨的品牌，我們想要更大的份額，你必須進入。就像我們進入百事可樂一樣，我們得到了我們正在與聯合利華合作，我們正在與穀歌合作，我們正在與可口可樂合作。這些都是龐大的多品牌玩家，他們都相對不了解情況，但對於了解如何在遊戲媒體中導航而不僅僅是在 Twitch 上運行前置視頻感到興奮和支持。所以他們認為，這只是作為程序化購買處理，作為媒體購買的一部分。

I'm talking here about how they can create truly competitive and differentiating platforms. These are what I'm excited about when I look at the pipe, which is why I need to be out there with our head of our brand solutions making sure that those most senior marketeers understand what they're testing, and we have no ambiguity in what the measurement for success is. That's what I see as the biggest opportunity when I look at our pipe for the second half. And by the way, we've now instituted a big deals call. There is no deal over $250,000 that does not come by me. I'm talking about the idea, the proposal, the pitch, the negotiation, I'm all over this now. Those biggest -- and anything to do with the big -- the biggest advertisers in the world, I'm all over that as well.

我在這裡談論的是他們如何創建真正具有競爭力和差異化的平台。當我看到管道時，這些就是我感到興奮的原因，這就是為什麼我需要與我們的品牌解決方案負責人一起確保那些最資深的營銷人員了解他們正在測試的內容，並且我們沒有任何歧義衡量成功的標準是什麼。當我審視下半年的管道時，我認為這是最大的機會。順便說一句，我們現在已經發起了一項大交易。沒有一筆超過 25 萬美元的交易不是我做的。我正在談論這個想法、提案、推介、談判，我現在已經把這些都講完了。那些世界上最大的——以及與大的——最大的廣告商有關的事情，我也很喜歡。

Amazing context. Thank you guys and talk to you soon.

驚人的背景。謝謝你們，很快就會和你們談談。

Thank you, Gianluca.

謝謝你，吉安盧卡。

This concludes our question-and-answer session. I would like to turn the conference back over to Nick Brien for any closing remarks.

我們的問答環節到此結束。我想將會議轉回給尼克·布萊恩 (Nick Brien) 發表閉幕詞。

Well, thank you, everyone, for dialing in. I appreciate the level of support our analysts provide us with the -- for the accuracy. I also want to extend a vote of thanks, for the vote of confidence from our lenders to increase our lending facility, should we need to be able to use it against our increasing attractive size of our book or blue-chip brands that are signing up to work with us.

好的，謝謝大家撥通電話。我很感謝我們的分析師為我們提供的支持，以保證準確性。我還想對我們的貸方對增加我們的貸款便利投下信任票表示感謝，如果我們需要能夠利用它來對抗我們日益有吸引力的圖書規模或正在簽約的藍籌品牌與我們合作。

And I want to reiterate to everyone that this -- and I understand there's been historical turbulence on this young company, but I have never worked in an industry sector in my 35 years that I felt so much wind in our sales, that is not just a brand to be built or a business to be fixed. So an industry category, I can't do it alone, but boy oh boy, there's a level of receptivity and excitement and that is because this is not just a business. This is part of popular culture. It is a defining global phenomena and it is not slowing down.

我想向大家重申，我知道這家年輕的公司經歷過歷史性的動盪，但在我 35 年的行業工作經歷中，我從未在銷售中感受到如此大的風浪，這不僅僅是要建立的品牌或要固定的業務。因此，對於一個行業類別，我無法單獨完成，但是天哪，天哪，有一定程度的接受度和興奮感，那是因為這不僅僅是一個企業。這是流行文化的一部分。這是一個決定性的全球現象，而且它的發展速度並沒有放緩。

So we have a lot of work to do. We have a very aligned leadership team. We are bringing together a very strong culture. And as I've explained to this company, we are no longer multiple companies operating in the gaming media and entertainment space. We are one company with multiple brands. And as we start to execute against that vision, we will start to see the results as sure as night follows day. Thank you so much for everyone participating in this call.

所以我們還有很多工作要做。我們擁有一支非常團結的領導團隊。我們正在匯聚一種非常強大的文化。正如我向這家公司解釋的那樣，我們不再是在遊戲媒體和娛樂領域運營的多家公司。我們是一家擁有多個品牌的公司。當我們開始執行這一願景時，我們將開始看到如同黑夜過後白天一樣確定的結果。非常感謝大家參與本次電話會議。

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

會議現已結束。感謝您參加今天的演講。您現在可以斷開連接。