Zynga Inc.

Thank you for standing by, and welcome to Zynga's third 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 will need to press star 1 on your telephone. Please be advised that today's conference is being recorded. Should you require any further assistance, please press star 0. I would now like to hand the conference over to your host, Vice President, Investor Relations and Corporate Finance, Rebecca Lau. Please go ahead.

Thank you, Lateef, and welcome everyone to Zynga's third quarter 2021 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-Q, 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 our 10-Q 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 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 welcome to our Q3 earnings call. We delivered strong quarterly results, including record Q3 revenue and bookings and better than expected operating leverage. Today, we are raising our full year guidance and are on track to finish 2021 with Zynga's best ever annual top line performance and the largest mobile audience in the company's history. We are well positioned for 2022 and beyond with multiple growth catalysts in place to drive our continued expansion. Starting with Q3, Our live services delivered strong results ahead of our guidance, including our highest ever third quarter revenue of $705 million, up 40% year-over-year, and record Q3 bookings of $668 million, up 6% year-over-year. This was a tremendous performance by our teams against a difficult comparison from a year ago. Our top-line beat was driven by strong advertising results. in particular by another standout quarter from Rolex's hyper-casual portfolio. This performance capped off Rolex's phenomenal first year at Zynga and also helped drive our average mobile DAUs to 38 million, up 21% year-over-year, and average mobile MAUs to 183 million, up 120% year-over-year. Moving to Q4 and next year, I'd like to highlight some of Zynga's near-term growth catalysts. First, we expect our live services to build momentum as we head into 2022. We recently closed our Starlark acquisition, the talented developers of Golf Rival. This adds another fast-growing franchise to our highly diversified live services portfolio. We also see more opportunities to further accelerate Golf Rival's growth by leveraging Zynga's best-in-class product management, data science, and user acquisition capabilities. In addition, we have an outstanding slate of bold beats prepared for Q4, including the introductions of Alliance Quest in Empires & Puzzles, Fantastic Feasts in Harry Potter Puzzles & Spells, Dragon Missions in Merge Dragons, and Piggy Bank in Toon Blast. Second, our new game pipeline has never been stronger. Last week we launched Farmville 3 Worldwide, a reimagination of one of Zynga's most iconic franchises for the mobile platform. The game is off to a tremendous start and has already reached the number one and number two top free downloaded game positions in the US iPad and iPhone app stores respectively. Player feedback has been very positive as well, and we expect Farmville 3 to be a strong growth contributor in 2022 and beyond. Next week, we are releasing our first cross-platform play franchise, Star Wars Hunters, into technical soft launch in select mobile markets. The title features unique new characters in the Star Wars universe. and we are unveiling several new gameplay modes that will be available when the game launches in 2022. We also have two additional new titles that are performing well in soft launch. Both games are developed by studios with proven track records of creating hit franchises. Graham Games, makers of the popular Merge category, are developing Pirates Evolution, a brand new title where players explore mysterious islands and engage in player versus player sea battles. Peak, the talented puzzle makers that brought us chart-topping games like Toon Blast and Toy Blast, is creating their next blockbuster match-three game, Star Blast. Over the coming quarters, we will steadily ramp up the production of both these titles, and also expect to make meaningful progress on additional games in development across our global studios. Third, we expect our expanding portfolio of hypercasual games, one of Zynga's fastest growing categories, to deliver strong growth in our advertising business. In Q3, we grew our advertising revenue in bookings by 99% year-over-year, and on a trailing 12-month basis, we have now surpassed half a billion dollars. Moving forward, we expect to drive more advertising growth from our live services, new game releases, and the positive momentum from Rolex's portfolio. Hypercasual is one of the largest and fastest-growing game genres on mobile, and Rolex's unique development process enables us to repeatedly design and publish new hit titles. We are now introducing bold beats within our key hypercasual franchises, which are deepening and sustaining player engagement. To build on this momentum, we are expanding Rolex's first and third party developer network and are enhancing their publishing platform with new tools and technologies. Fourth, our integration with ChartBoost is well underway and we are making significant progress in building a next generation mobile advertising platform. As the mobile app ecosystem continues to evolve, The integration of Zynga's first-party content and data with an at-scale advertising platform will be an increasingly important competitive advantage. By leveraging ChartBoost's demand-side platform, we are meaningfully enhancing our ability to more efficiently acquire high-value players at scale. We are also building out ChartBoost's supply-side platform and mediation product which will enable us to improve the yields on our large portfolio of owned and operated advertising inventory. We also expect that this will generate more value for ChartBoost's advertising partners. As more brands and marketers turn to mobile advertising to reach large and highly diverse audiences, our platform provides a significant opportunity to expand Zynga's total addressable market and strengthens our position in the fast-growing digital advertising sector. With that, I would now like to turn the call over to Jer to discuss our Q3 results and forward outlook in more detail.