Zynga Inc.

Ladies and gentlemen, thank you for standing by and welcome to the Zynga first quarter 2021 results conference call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question and answer session. To ask a question during the session, you'll need to press star 1 on your telephone. Please be advised that today's conference is being recorded. If you require any further assistance, please press star 0. I would now like to hand the conference over to your speaker today, Rebecca Lau, Vice President, Investor Relations and Corporate Finance, Please go ahead.

Thank you, Josh, and welcome everyone to Zynga's first quarter 2021 earnings call. On the call with me today are Frank Jabot, our chief executive officer, and Jared Griffin, our chief financial officer. Shortly, we'll open up the call for live questions. Before we cover the safe harbor, please note that in an effort to keep our team members healthy, each member on today's call is dialed in remotely. We appreciate your understanding during the call and hope that everyone is staying safe during this time. During the course of the 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 filing, 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 financial 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 relations website in a few hours. Now, I'll turn the call over to Frank for his opening remarks.

Thank you, Rebecca. Good afternoon, everyone, and thank you for joining our Q1 earnings call. We are off to an excellent start in 2021, delivering record Q1 results and generating strong momentum across all aspects of our growth strategy. Today, we are also announcing our acquisition of ChartBoost, a leading advertising and monetization platform with a proven track record of innovation in the ad tech industry. We could not be more excited to bring this talented team to Zynga, and we'll discuss the acquisition in more detail shortly. Execution across our multi-year growth strategy has driven our tremendous results to date, while providing strong momentum for additional growth ahead. In 2021 and beyond, we are focused on continuing to drive recurring growth from our live services foundation and launching new titles from our exciting new game pipelines. In addition, we are investing in incremental growth initiatives where we believe Zynga is uniquely positioned to capitalize on several megatrends in interactive entertainment. These new initiatives include hypercasual games, cross-platform play, international expansion, and advertising technologies, all of which have the ability to meaningfully increase Zynga's total addressable market and capabilities to further grow our business. In Q1, we made significant progress against each of our growth initiatives. First, strength across our live services drove record quarterly revenue of $680 million, up 68% year over year, and bookings of $720 million, up 69% year over year. While the majority of Zynga studios are continuing to operate in a work-from-home configuration, Our teams are performing incredibly well and remain focused on delivering highly engaging experiences for our players. By delivering a steady cadence of bold beats, we are driving strong player engagement and monetization and are seeing these positive trends continue even as more countries begin to reopen. In Q1, we saw strong performances across our live services portfolio, with user pay revenue in bookings up 62% and 63% year-over-year. Advertising revenue in bookings were also up 108% year-over-year. During the quarter, our Social Slots portfolio delivered its best revenue in bookings, led by a record performance from Hit It Rich slots more than seven years after we launched the franchise in 2013. Our bold beat strategy is paying off in Toon Blast and Toy Blast with our recent feature introductions of Cooper's Rally and Hookshot, driving strong player engagement in both titles. Finally, Empires and Puzzles, Words with Friends, CSR2, and our Casual Cards portfolio all achieved record Q1 revenue and bookings. Second, our recent game launches are off to great starts, and we have more new releases planned for 2021. Starting with Harry Potter Puzzles and Spells, this title continues to build momentum and is a meaningful driver of our year-over-year live services growth. To further scale the game in 2021 and beyond, we are continuing to invest in marketing and are introducing exciting new bold beats, such as our Magical Mischief event, which encourages friendly competition between clubs with a new feature called Prank Boxes. In April, we launched Puzzle Combat Worldwide, a new mobile match-three action RPG where players recruit heroes, build bases, and compete in PvP battles in a zombie-themed setting. Early player engagement is strong and gives us confidence in our ability to gradually scale the game over the coming quarters, the same strategy that we took with Empires & Puzzles. Our next release will be Farmville 3 later this year. As the game progresses through its final stages of soft launch testing, we are pleased to see players engaging with its unique animal and farmhand features. At a time when people around the world are gravitating towards nostalgic experiences that build community, we are excited to bring back the iconic and beloved Farmville brand to new and returning players. Later this year, we also plan to launch our recently announced Star Wars Hunters game. This is an ambitious project that will deliver on a number of firsts for Zynga, including our first arena combat game, our first cross-platform play title, and our first game built in the Star Wars universe in collaboration with Lucasfilm Games. Third, HyperCasual is building strong momentum and proving to be an important driver of growth for Zynga. Rollick has seamlessly integrated into our Zynga family of studios and in Q1 delivered its all-time best revenue and bookings quarter while also leading the category as one of the fastest-growing hypercasual game companies in the world. Year over year, Rollick has more than tripled its quarterly installs and now stands as one of the top five hypercasual game publishers in the U.S. and top ten in the world based on downloads in Q1. This exciting growth was powered by Rollick's unique publishing engine that leverages an network of first-party and third-party developers to successfully create and launch new hyper-casual hits. In Q1, High Heels and Blob Runner 3D reached the number one and number two top free downloaded game positions in the US App Store. Launched in April, Rolex New Game Hair Challenge is off to a tremendous start, reaching the number one top free downloaded games position in the US App Store. Rollick is also attracting new audiences to Zynga's network by creating universally fun games that are trending in pop culture and on leading social platforms, including TikTok. Building on this momentum, we are expanding Rollick's development talent and games portfolio via incremental acquisitions, such as the Unkasoft Studio. Fourth, we are making significant progress on our cross-platform play growth initiative, initially anchored on the Star Wars brand. In Q1, we announced that our first cross-platform play title, Star Wars Hunters, will be coming to mobile and Nintendo Switch players later in 2021. In addition to providing a fresh new look into the Star Wars universe, this fast-paced arena combat game is specially designed for players who thrive on cross-platform play and social competition. During the quarter, we also welcomed Etra Games to Zynga. This talented team has already started working on a new action RPG game for Zynga, which leverages their decades of experience in this category, as well as their proven cross-platform development tools and technologies. Fifth, Asia is becoming a key contributor to our international growth. In Q1, we delivered our best international revenue and bookings of 67% and 59% year-over-year. Our recent acquisitions of Toon Blast, Toy Blast, and Rollix as well as our launch of Harry Potter Puzzles and Spells, have all been key drivers of our international growth. Specifically, audiences in China are responding to our hyper-casual games with High Heels and Blob Runner 3D, both reaching the number one top free downloaded games position in the China App Store. While our presence in Asia is still in its early stages, it's great to see our content connect with audiences across the region, and we are excited to build on this momentum in the future. Finally, the acquisition of ChartBoost dramatically accelerates the development of our advertising and monetization platform and greatly enhances the value of our first-party data. ChartBoost reached a massive global audience of more than 700 million monthly users and runs over 90 billion monthly advertising auctions. ChartBoost's unified advertising platform includes demand-side, mediation, and supply-side capabilities. that are powered by proprietary technologies that optimize user acquisition and advertising yields. ChartBoost has been a trusted partner of Zynga's for many years in numerous campaigns that have contributed to the strength of our live services portfolio. Together, Zynga and ChartBoost possess all the elements of a complete next generation platform. By combining Zynga's high quality games portfolio with first party data, and ChartBoost's proven advertising and monetization platform, we will create a new level of audience scale, strengthen our ability to navigate upcoming privacy changes, and meaningfully enhance our competitive advantage in the mobile ecosystem. Following the anticipated close of this transaction in Q3 2021, ChartBoost is expected to be immediately accretive to Zynga, while also unlocking growth opportunities and synergies for our company in 2022 and beyond. Today, we are raising our full year 2021 revenue and bookings guidance. And over the coming years, we are confident in our ability to increase our total addressable market while driving strong top line growth and margin expansion as we continue to execute on our growth initiatives. With that, I would now like to turn the call over to Jer to discuss our Q1 results in more detail, as well as our outlook for the coming year.