Skillz Inc.

Good afternoon. Thank you for attending today's Skill Third Quarter 2021 Earnings Conference Call. My name is Nye, and I will be your moderator for today's call. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. If you would like to ask a question, please press star 1 on your telephone keypad. I would now like to pass the conference over to your host, Stephon Gerhard with Skills. Thank you. You may proceed, Mr. Gerhard.

Thank you, Nye. Good day and welcome to the SCIL third quarter 2021 earnings conference call. I'll proceed shortly by reading our forward-looking statements and non-GAAP measures, immediately followed by brief introductory remarks, and then a question and answer session. Hosting the question and answer session today, we have Andrew Paradis, Chief Executive Officer Casey Chapkin, Chief Revenue Officer, and Ian Lee, Chief Financial Officer of the company. We hope you've had a chance to read our press release and stockholder letter, which we published earlier today, both of which are also available on our investor relations website. We have also posted to our website a short video of our CEO discussing our business highlights this quarter. Some of management's comments today will include forward-looking statements within the meaning of the federal securities laws. Forward-looking statements, which are usually identified by the use of words such as will, expect, should, or other similar phrases, are subject to numerous risks and uncertainties that could cause actual results to differ materially from what we expect. Therefore, you should exercise caution in interpreting and relying on them. we refer you to the company's SEC filings for a more detailed discussion of the risks that could impact future operating results and financial condition. During the call, management will discuss non-GAAP measures, which we believe can be useful in evaluating the company's operating performance. These measures should not be considered in isolation or as a substitute for our financial results prepared in accordance with GAAP. A reconciliation of these measures to the most directly comparable gap measure is available in our third quarter 2021 earnings release. With that, I'll turn the call over to Andrew for some brief opening remarks. Thank you, Stefan.

Good afternoon, everyone, and thank you all for joining us today to discuss our third quarter 2021 results. In case you haven't had a chance to review our Q3 stockholder letter, which just published to our investor site this afternoon, I wanted to share a few key highlights from the quarter before we get started with your questions. We're definitely very proud that we share the news with you that we generated 70% revenue growth year over year, led in large part by 47% year over year growth in paying monthly active users. The company was able to increase user acquisition marketing investment to acquire new users while maintaining high efficiency as several initiatives during this quarter drove cost per install or CPI lower from prior quarter. This quarter we also officially launched Big Buck Hunter Marksman, the first mobile version of the iconic arcade shooting game that we all know and love. It was celebrated at the 14th annual Big Buck Hunter World Championships in Chicago in the convergence of the online and offline worlds for the first time. Our investment with Exegames, we were able to integrate advanced synchronous technology onto the skills platform through Exegames' Photon Engine. Its market-leading multiplayer synchronous game engine has accelerated our ability to support popular first-person shooter and racing games by several years. We also announced a deal with our game developer, Etermax, to bring the most popular trivia franchise in the world, Trivia Crack, to the skills platform. And finally, we grew our executive team with the addition of Vauxhall Bajouard, who joins us as Chief Product Officer from Amazon, where he led the teams responsible for game development services, including transforming how large-scale multiplayer games are developed, operated, scaled, and distributed using the cloud. At Skills, Votsel will be responsible for leading our product development teams. Before taking everyone's questions, I just wanted to take a moment to thank everyone on our team that makes it all possible. The Skillsians who work tirelessly every day to create the future of competition. to build out the competition layer of the internet. And of course, for our developer partners who, through their games and their creativity, they bring us imagination and fun. With that, let me open up for questions.