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spk05: And our next question comes from the line of Steven Ju with Credit Suisse. Your line is open. Please go ahead.
spk00: Thanks, guys. So I think the growth between your daily active and monthly active users continue to diverge. So is that generally due to changing mix toward casual, or do you think this is just external factors, you know, greater travel, economy, the war, et cetera? And I think looking forward, I think, At the time of the IPO, I think you talked about eight games in the pipeline. We got Switchcraft and Merge. And I think you guys have also talked about 2 and Soft Launch. So should we think four more are remaining in various stages of development, or has the pipeline moved around a bit? Thanks.
spk01: Thanks, Stephen. Why don't we take the pipeline question first? So we have three titles in the pipeline today. One, first of which is Switchcraft, and then two others, one from our Jelly Bean Studio and one from our Wooga Studio, that will enter soft launch later this year and that we're excited about. We did, as we mentioned, consolidate studios, and by closing London and Montreal, obviously there were titles in the pipeline that have been eliminated, and we're not going to comment on titles in the pipeline that are kind of more future-dated beyond over the next 18 months. I'm sorry, the other part of the question?
spk00: about the divergence of the daily active and monthly active user growth? Is that mixed or are there other sources?
spk01: I think one change from a marketing strategy perspective that's affected the user base is focusing on higher quality traffic in tier one markets. And in doing so, obviously, you'll see monetization increase there. I think from, you know, we've always talked about DAU and MAU aren't necessarily the KPIs that we're focused on. It's the engagement and the daily paying users. And, you know, conversion there, continuing to drive that is key for us. Thanks.
spk05: Thank you. And our next question comes from the line of Aaron Lee with Macquarie. Your line is open. Please go ahead.
spk04: Hi. Good morning. Thanks for taking my question. You continue to build up a healthy cash balance. In terms of inorganic growth, how does the M&A market look in terms of valuations and opportunities? Have things gotten more attractive?
spk03: Yeah. Hi, this is Eric Raps, Chief Strategy Officer. So, what we can say is things have gotten more attractive. I would say that the disconnect that existed between the public and private markets, you know, that bank disconnect, excuse me, started to bridge, but I wouldn't yet say that everyone acknowledges the, you know, the current economic backdrop. And I think where expectations do remain high is largely the product of people thinking that this current trend may not be as long as some others think. So we're starting to see it a little bit, but in other places, it's still elevated.
spk04: Got it. And understanding your focus is more on casual games, but Do you think you can take share in social casino this year? Just given how the operating environment has gotten tougher, it seems like the larger players should be able to adapt faster and outperform. Just curious on your position there. Thanks.
spk03: Yeah, so I think social casino is an interesting category. I think where there are assets that we think there is an opportunity to further monetize and grow those businesses, you know, we'll obviously look at them and take a hard look. I think in the absence of that, we'll continue to focus more on casual. But we're going into an interesting environment right now. And ultimately, we're going to pursue where we think there's the most value to be had.
spk00: Understood. Thank you.
spk05: And our last question comes from the line of Franco Grande with DA Davidson. Your line is open. Please go ahead.
spk02: Yeah. Hi, everyone. Thanks for taking my question. So with all of the privacy changes related to iOS impacting everybody in the space. How have you seen your AI models change? You cited CPI declines and ROI being steady. And then if you could give us some thoughts on your assumptions on ROAS on the online campaigns for the rest of the year. Thanks.
spk03: Sure. So regarding the first one, we're not going to go into detail about how our AI models have been constructed. and the nuance is there, but what I can say is our AI team has rebuilt them from scratch, focused on a post-IDFA world. We've adjusted the time horizon at which we look at ROI, and those models have been very effective for us, and we use them on a daily basis to allocate budget. Do you mind just repeating the second question on ROAS?
spk02: Yeah, I was just wondering on what your assumptions are on ROAS for the online campaigns for the rest of the year.
spk03: Yeah, we're not going to throw us. What I can say is that if you look at how our ROI has performed in the last quarter, it's improved across multiple different time periods in about 80% of the portfolio. So we're very happy with how our ad spend is being deployed right now. And I think what's driving that is both a combination of very effective marketing, but also superior monetization abilities.
spk02: All right. Thank you.
spk05: Thank you, and this does conclude our question and answer session. Ladies and gentlemen, this also does conclude today's conference call. Thank you for participating. You may now disconnect. Everyone, have a great day. The conference will begin shortly.
spk04: To raise your hand during Q&A, you can dial star 11.
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