Super League Enterprise, Inc. Q2 FY2024 earnings call

• Continued redefinition of gaming industry as a media channel for global brands via innovative technology, partnerships with major brands, IP owners, and talent. Launched immersive experiences with brands like Google, Visa, Maybelline, etc. • Productization approach with reusable 3D elements and pop-ups to lower costs, improve margins, and enable faster brand adoption. Acquisition of Melon Studios led to 3x increase in dedicated build revenues. • Operational highlights include Olympics-related experiences, Skechers store in Roblox, Old Navy store, SOUNDZ music offering, and strategic partnership with Meta-Stadiums for cross-platform immersive experiences. • Focus on profitability with aim to achieve first profitable quarter in Q4 2024; 15% reduction in headcount led to 25% decrease in Q2 pro forma operating expenses and 23% decrease in operating losses.

No detailed segment performance with absolute revenue and contribution % provided in the transcript.

• Top line revenues flat sequentially, but $1.8M deferred revenues from Q2 expected in Q3/Q4. Expect large revenues in H2 2024. • Anticipate larger deal sizes and longer-term revenue from 51 repeat customers and 68 new brand entrants, aiming for stable cash flow and shareholder value. • Productization is key to scaling revenue with lower incremental cost, targeting 45%-50% margins on most programs.

• Macroeconomic factors like prolonged inflation causing softening of consumer spend and ad sales. • Historical reliance on manual work, though productization addresses this, future growth requires careful cost management.

Q: Were the $1.8 million of deferred revenues from Q2 now active in Q3?

A: Yes, these programs have Q3/Q4 launch dates.

Q: What is the benefit of the Meta-Stadiums partnership?

A: Joint pitching, access to consumer monetization and data, cross-platform immersive experiences.

Q: How much revenue growth in '25 and '26 can current cost infrastructure support?

A: Productization allows lower cost per revenue, but profitability and P&L control remain key.

Q: Where are new customers originating from?

A: ~80% via agencies, ~20% direct; improving direct relationships.

Q: Why were advertiser launches delayed?

A: Due to internal setup and creative ideation, not budget cuts.

Q: How do repeat customers' spends grow?

A: Repeat customers spend more, moving to persistent strategies for longer-term engagement.

Q: Opportunity in data analytics?

A: One-stop shop for analytics, reporting, influencer marketing, and potential data capture via Meta-Stadiums.

Q: Do new customers come from Roblox?

A: Roblox has recommended partnerships, funding educational campaigns through Roblox EDU.