Super League Enterprise, Inc. Q1 FY2025 earnings call

• Implemented a realignment plan with three pillars: reducing and controlling costs, increasing and maintaining gross margin, and diversifying revenue.
• Q1 operating expense decreased approximately 25% compared to Q1 prior year, with further reductions of ~30% year-to-date through staff cuts and Executive Team compensation decreases.
• Q1 gross margin increased to 44% from 38% in fiscal year 2024.
• Successful campaigns with partners: Chipotle partnership in its fourth year with multiple consumer-facing campaigns, including one that became the number one trending game on Roblox; GoGo squeeZ campaign running across multiple platforms targeting younger audiences; mini game arcade for Logitech and Roblox experiences for various brands; playable media campaign for Accounting+; and opportunity to build a Roblox world for Google's Be Internet Awesome campaign.
• Acquisition of Supersocial, which added a Roblox business with 49 immersive builds, over 390 million visits, and 3 billion impressions on the platform.

In Q1, mobile revenue accounted for 15% of Super League's total revenue. The company expects mobile to grow to at least 25% of its total revenue in 2025.

• On-track to be EBITDA positive in Q4 2025.
• Expect mobile to represent at least 25% of total revenue in 2025.
• Continue to deploy strategies to secure financing to support operational needs and strategic opportunities.
• See potential for industry consolidation with M&A opportunities that provide revenue and cost synergies towards EBITDA positive outcome.

• Macro headwinds affecting marketing and advertising budgets, with some evidence of budget delays rather than cuts; focus is on ensuring right solutions are in front of partners when budgets are deployed.

Q: About the acquisition and potential targets, what does it say to other potential targets?

A: It shows the Executive Team and infrastructure can support inorganic growth opportunities, and potential targets can have faith Super League is a good partner.

Q: About the recent equity raise, does it give enough wiggle room to reach breakeven by Q4?

A: Will pursue capital raise opportunities in coming months while heading toward EBITDA positive Q4.

Q: Are there different agencies coming due to focus on play and mobile?

A: Yes, mobile expansion has opened up diverse opportunities with agencies and brands believing in playable media.

Q: How do macro headwinds impact the business and how to evolve past it?

A: Focus on putting right solutions in front of existing and new partners to ensure budgets are deployed through their solutions despite delays.

Q: Visibility on mobile revenue progression by end of year?

A: Expect mobile to be at least 25% of revenue in 2025.

Q: Strategic importance of Supersocial acquisition and broader M&A landscape?

A: Supersocial puts Super League in business with exciting IP owners and brands; sees M&A opportunities for consolidation and organic growth, with Super League having proven ability to pursue and integrate acquisitions successfully.