Playtika Holding Corp.

Good day and thank you for standing by. Welcome to the Pacata Second Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during this session, you will need to press star 1-1 on your telephone. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker, David Niederman. Please go ahead.

Welcome, everyone, and thank you for joining us today for the second quarter 2022 earnings call for Platica Holding Corp. Joining me on the call today are Robert Anticall, co-founder and CEO of Platica, and Craig Abrams, Platica's president and chief financial officer. I'd like to remind you that today's discussion may contain forward-looking statements, including but not limited to the company's anticipated future revenue and operating performance. These statements and other comments are not a guarantee of future performance, but rather are subject to risks and uncertainties, some of which are beyond our control. These forward-looking statements apply as of today, and you should not rely on them as representing our views in the future. We undertake no obligation to update these statements after this call. For a more complete discussion of the risks and uncertainties, please see our filings with the SEC. We have posted an accompanying slide deck to our investor relations website, and we'll also post our prepared remarks immediately following the call. With that, I will now turn the call over to Robert.

Thank you, everyone, for joining our call today. In the second quarter, we continue to execute our strategy, enhancing even further our content offerings, implementing strategic decisions across our studios to further streamline our new game development strategy, and optimize even further our resource and operations while generating strong operation cash flow. We are proud of this execution during the quarter at a time when mobile consumer spending seems to have weakness. Platic has well positioned in the industry and we are confident in our team's ability to win in this market. I've spoken of this before, but let me remind you that we have a diversified portfolio of top ranked games and we have demonstrated the ability to manage our games for long-term. We own leading games across five different categories, and we have nine of the top 100 highest-grossing mobile games. We proud ourselves in having long-term player loyalty and strong engagement and continue to drive strong conversion, which was over 3% in the second quarter. Our proven business model and DNA of our unique approach to game ops is at our core and very much suited for this environment and for the long term. This leads to stickiness of our player base and the resulting majority of our revenue coming from players from previous year's cohorts, some as early as the year of launch. Our technology and in-house capabilities are robust. We have our own in-house ad tech platform with an AI-driven algorithm for ad spend optimization. We have our direct-to-consumer platform that has strong positive impact on our margins. We since continue D2C platform momentum with 23.3% of our total revenues now coming from this platform. up from 20.4% in the second quarter of 2021. And we have our proven monetization strategy enabled by a powerful live ops platform. We continue to execute on growing our casual portfolio with 10% year-over-year growth, which was often declined by gains in our casino team's portfolio. Our adjusted EBITDA margin improved by 360 basis points quarter-over-quarter. Adjusted EBITDA was up 8.3% from last quarter and down 9.6% versus a year ago. As we look to the remainder of the year, I'm confident in our business and our position in the market. The skills and technology we have built over the past 10 years give us an upper hand and the capabilities to win the market. In order to compete and win, we will continue to optimize our resource with a strong focus on adjusted EBITDA. We are very calculated and strategic on our investment decisions as we focus on long-term growth. A recent example is relocating best fields to Israel and Poland, where we believe teams are better positioned to drive further growth. developing three new games in our pipeline with one set to launch this year. Continue to grow our ongoing core franchise, making smarter investment in marketing and R&D. And finally, making Playtika an amazing place to work and to build career while employing the most talented and the best of the best. I will now turn it over to Craig, who will provide more details on this initiative in our second quarter financial.