Take-Two Interactive Software, Inc.

Good day, ladies and gentlemen, and welcome to the Zynga First Quarter 2019 Results Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session, and instructions will follow at that time. If anyone should require assistance during the conference, please press star, then zero on your touchtone telephone. As a reminder, this conference call is being recorded. I would now like to introduce your host for today's conference, Rebecca Lau, Vice President, Investor Relations and Corporate Finance. Ma'am, you may begin.

Thank you, and welcome to Zingo's first quarter 2019 earnings call. On the call with me today are Frank Jabot, our Chief Executive Officer, and Jer Griffin, our Chief Financial Officer. Shortly, we will open up the call for live questions. During the course of today's call, we will make forward-looking statements related to our business plan and strategy, as well as expectations for our future performance. Actual results may differ materially from the results predicted. Please review the risk factors in our most recently filed Form 10-K as well as elsewhere in our SEC filings for further clarification. In addition, we will also discuss non-GAAP financial measures. Our earnings letter, earnings slides, and when filed, our 10-Q will include reconciliations of our GAAP and non-GAAP financial measures. Please be sure to look at these reconciliations as the non-GAAP measures are not intended to be a substitute for or superior to our GAAP results. This conference call is being webcasted and will be available for audio replay on our investor-relation website in a few hours. Now I'll turn over the call to Frank for his opening remarks.

Thanks, Rebecca. Good afternoon, and thank you for joining our Q1 earnings call. We begin 2019 with tremendous momentum. Our live services portfolio, anchored by our five Forever franchises, produced outstanding Q1 results. Today, we are raising our full year 2019 guidance, which Jer will discuss in more detail shortly. In Q1, we generated revenue of $265 million, up 27% year-over-year, and bookings of $359 million, up 64% year-over-year. We delivered our highest mobile revenue and bookings quarter ever, with mobile revenue up 35% year-over-year and mobile bookings up 77% year-over-year. Mobile now accounts for 93% of total revenue and 95% of total bookings. Our Q1 performance was driven by our live services portfolio, in particular by strong revenue and record bookings from Empires and Puzzles, Merge Dragons, and CSR2. Words with Friends also delivered its best Q1 revenue and bookings performance in franchise history, while Zynga Poker and our Social Slots portfolio contributed meaningfully. It's an incredibly exciting time for Zynga. Our multi-year growth strategy is working as we grow our live services, create and acquire new forever franchises, and invest in emerging markets, technologies, and platforms. First, we have a highly diversified live services portfolio anchored by our five forever franchises, CSR Racing, Empires and Puzzles, Merge Dragons, Words with Friends, and Zynga Poker. We will grow this live services portfolio by delivering innovative bold beats, new content and gameplay modes designed to attract new audiences, engage current players more, and bring back lapsed players. In any given year, we expect strong, predictable growth from this portfolio and for live services to account for the vast majority of our total revenue and bookings. Second, our goal is to create and acquire new Forever franchises to add to our live services foundation. We have an exciting new game pipeline that includes titles based on existing and new intellectual properties such as Farmville, Cityville, Puzzle Combat, and Merge, as well as strategic licenses such as Game of Thrones, Harry Potter, and Star Wars. These new titles are built within our global studio organization by teams that have been together for years and have a proven track record for developing successful games. We maintain a rigorous approach to engineering hits and recently soft launched two titles, Game of Thrones Slots Casino and Puzzle Combat. Over the coming quarters, we will soft launch additional titles, and based on player feedback and long-term engagement metrics, we expect to release new games worldwide in the second half of 2019. Third, we are investing in emerging markets, technologies, and platforms to accelerate future growth. As mobile devices continue to proliferate globally, more people will be playing games than ever before. We're pursuing this opportunity by expanding our Android audience and building games that appeal to players worldwide. In Q1, we've grown our Android revenue by 43% year-over-year and doubled our Android bookings. In addition, the arrival of 5G and streaming technologies will enable higher performance games, more streamlined player experiences, and innovative new forms of distribution. New platforms and categories such as chat and hyper-casual, as well as the emergence of cross-platform play, will also expand the overall accessibility of games and therefore Zynga's total addressable market. With that, I will now turn the call over to Jer to discuss our Q1 results in further detail, as well as our raised outlook for the future.