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spk02: Greetings and welcome to Mobivity's first quarter 2022 earnings call. At this time, all participants are in a listening mode. A question and answer session will follow the former presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Brett Moss of Hayden IR. Please proceed, sir.
spk06: Thank you, operator. I'd like to welcome everyone to Mobility's first quarter 2022 earnings call. Hosting the call today are Dennis Becker, founder, chairman, and chief executive officer, and Lisa Brennan, chief financial officer. Before I turn the call over to management, I'd like to call everyone's attention to the company's safe harbor policy. Please note that certain statements made on this call will be forward-looking statements, which are subject to considerable risks and uncertainties. We caution you that such statements reflect management's best judgment based on factors currently known and that actual events and results could differ materially. Please refer to the documents filed with the company from time to time with the SEC, and in particular, its most recently filed annual report on Form 10-K. These documents contain and identify important risk factors and other information that may cause actual results to differ from those contained in the forward-looking statement. Any forward-looking statements made during this call are being made as of today. If this call is being replayed or reviewed after today, the information presented during this call may not contain current or accurate information. Except as required by law, the company assumes no obligation to update these forward-looking statements publicly or to update the reasons actual results could differ materially from those anticipated in the forward-looking statements, even if the new information becomes available in the future. Today's call may include non-GAAP financial measures, which require a reconciliation to the most directly comparable financial measures, which are calculated and presented in accordance with GAAP and can be found in today's press release, along with our recent corporate presentation, which is also available at mobility.com. With all that said, I'd like to turn to caller Dennis Becker. Dennis, the call is yours.
spk04: Thanks, Brett. And thanks, everyone, for taking the time to join us on our call today. Our team has done an incredible job building on the momentum created in the fourth quarter of last year. To recap, the digital marketing landscape has been upended by additional privacy measures and restrictions to tracking online activity. These changes have affected the ability to target and market in the digital world. These tectonic shifts have been felt by the largest players, including Google and Facebook, all the way to the smallest marketers in the way marketers conduct business. Mobivity has always been at the forefront of connecting premium brands to their customers in real time. Through our existing relationships, we have an opportunity to connect millions of consumers playing games, streaming video, and other digital activities to everyday retail food and convenience brands and vice versa. Thanks to our technology that powers unique one-to-one mobile messages, unique offer and promotion codes, and perfect attribution for campaign optimization and measurement. Thanks to our platform, consumers can choose to discover goods and services through rewarded incentives, whether that's playing a mobile game to receive offers at their favorite restaurant or downloading new games or content in exchange for discounts on fuel at their local gas stations. These programs are 100% opted in by consumers and immune from all the changes that have ravaged the digital advertising industry. This presents unique and valuable opportunity to both brick and mortar brands and digital first businesses to target and reward consumers. I'm pleased to report that during the first quarter of this year, our team successfully executed several programs proving the value to brands and that consumers are excited and willing to receive such rewards. These early results have shown that the product market fit is right and demand for Mobivity and our technology is strong on all fronts. Mobivity has developed three distinct applications for leveraging our existing product and technology suite to deliver real-world rewards for digital businesses. First, we launched a solution to solve the growing user acquisition crisis facing app developers. Since the new privacy restrictions on advertisers it has become exceedingly costly for game publishers and other app developers to market to and acquire new users. Our new rewarded user acquisition solution combines real-world incentives for consumers downloading and trying new games with in-person rewards like gas discounts and free quick service products. During the first quarter, we executed programs where checkers and rallies, SMS subscribers, were offered a free premium cheeseburger or chicken sandwich in exchange for downloading a mobile game. This trial campaign has now led to a much larger program launching to hundreds of thousands of consumers in Q2. Consumers will receive free food at a premier nationwide brand in exchange for downloading a popular mobile game. We think rewarded user acquisition has tremendous upside as it's a win-win-win. The consumer receives a free product, the gaming publisher gets a new user, and the brand gets more traffic. The revenue model for rewarded user acquisition is also lucrative, as digital app publishers will pay upwards of tens of dollars for successful downloads of their app. Mobivity is uniquely able to pursue this opportunity and rapidly expand, given that integrating app publisher systems to our retail brand's infrastructure is made possible by our existing software platform. We believe there is a large universe of addressable users and thousands of games and brands for our current solution to capitalize on. Next, rewarded play. Our unique combination of mobile SMS messaging and integration with brick-and-mortar point-of-sale systems is now powering rewards for mobile game publishers where gamers earn points the more they play games. Players can then exchange those points for free consumer products at any number of Mobivity's consumer brands. In the first quarter, our team launched rewarded play programs for several of our food service and convenience brands across about a half dozen mobile game titles that attract millions of monthly active players. We have developed an exciting and healthy pipeline of new gaming partners and game titles, plus new food service and convenience brands that want to get into the game. Last but not least, beyond mobile games, there's a vast marketplace of console gaming platforms, such as Microsoft's Xbox or Sony's PlayStation. One of the fastest growing segments in console gaming is free-to-play set-top games. A new opportunity for these game publishers to monetize on their players is providing players with opportunities to unlock in-game rewards in return for choosing to view brand-sponsored videos during their downtime. We're now pioneering a solution where these brand-sponsored videos will also include a QR code that can be scanned to receive real-world rewards. Imagine watching a video to receive both an in-game reward but also a free pizza. Before I hand the call over to Lisa, I'd like to highlight that the revenue model from this new business is based on fees priced in the multiple dollars per transaction, where our previous model priced services in the pennies. In fact, there are opportunities for an even far higher fees in the future with more sophisticated programs. It's also important to note that much of the upside can be powered by our existing infrastructure, where we have significant capacity left to scale and grow the business. I will now turn the call over to Lisa for a more detailed view of our financial results, And then I will come back for a few summary comments. Lisa?
spk01: Thanks, Dennis. I'll kick off with our cash position. We ended the first quarter with approximately $1.5 million in cash. We completed a warrant conversion in February of this year that added an additional $2.5 million to the balance sheet. We're confident that our cash on hand is sufficient to continue executing on the business model that Dennis previously described. Sequentially, Our revenue for the first quarter of 2022 was up 8% over the fourth quarter of 2021 on a comparative basis, excluding accounting deductions taken in the fourth quarter. Total revenue for the first quarter was $2.0 million, and gross profit was $900,000, flat with last year's Q4 gross profit. On a year-over-year basis, our revenue was down 17%, while our gross profit was down 40%. The year-over-year decrease in revenue and gross margin was primarily due to the restructuring of a large customer contract due to COVID-related changes in their business. Total operating expenses for the first quarter of 2022 decreased by 23% to $2.2 million, compared to $2.9 million in the same period in 2021, excluding non-cash expenses and G&A of $380,000 relating to our warrant exercise. Reduction in operating expenses is due to decreases in legal expenses and sales and marketing expenses. Net income for the quarter improved by 10% on a year-over-year basis to a loss of approximately $1.6 million in 2022 from a loss of approximately $1.7 million in 2021, excluding the non-cash warrant conversion expense. I will now turn the call back over to Dennis for his closing remarks. Dennis?
spk04: Thanks, Lisa. In a very short period of time, our team has built a valuable and proprietary business at the intersection between online and offline audiences at a time when consumers are seeking greater value and digital operators are racing to find better ways to attract and retain customers. In the first quarter, we executed partnerships with leading game publishers, deployed live programs proving that consumers value real-world incentives for digital activities, and most importantly, set the foundation for future growth as we build and prove a revenue model far more scalable and more profitable than the previous. I applaud our team's innovation and relentless pursuit of growth for our partners, customers, and shareholders, and look forward to reporting on further success as we integrate new partners and programs and touch an ever-growing consumer base. Thank you for tuning in and for your continued interest in Mobivity. We'll now open up the call for Q&A.
spk02: Thank you. We will now conduct a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Once again, that's star 1 to ask a question at this time. One moment while we poll for questions. Once again, to ask a question, that's star 1 on your telephone keypad. Our first question comes from Bob Berlacher with A Private Investor. Please proceed.
spk08: Hey, Dennis. It's Bob. How are you? Good, Bob. So you mentioned that you're doing a deal that you've started with checkers and rallies. by giving consumers a burger if they download a game, and that the success of the trial, it sounds like, if it was a trial, has moved on to an even larger campaign. Can you explain a little bit more about just how that works and what the upside, specifically with checkers, rallies, or anybody else, is for now?
spk04: Yeah, absolutely. Good question. So, you know, really, as I was describing this kind of win-win-win where these brands can now drive traffic by offering their customers free food as an incentive to downloading a mobile game or participating in some other type of service, this is, you know, essentially creating a full-ticket sale for the brand because the Mobile game publisher, for example, in this case, is willing to pay a success fee for any of, say, Checkers and Rally's customers who participate in downloading the game. And then our technology, of course, is built into all of that. So, for example, if somebody received a text message from Checkers that says, you know, download this game and we'll give you a free burger, we track all of that. We track that the consumer actually clicked through and downloaded the game. And then we send a text message back to the consumer with a unique coupon code so they can redeem their, their free burger. And then the way the economics and all of that work is, uh, you know, we're getting paid for powering the technology. Uh, the game publisher is paying for the success of every download converted. Uh, and that the amount that they're willing to pay also is, is, uh, large enough to subsidize the free food that the brand gave to the consumer. So, you know, kind of everybody's incentivized. I think also with maybe the direction the economy is going, this is going to be something that becomes exceedingly popular with consumers. I mean, what checkers and all of our QSR restaurant and convenience brands can now go to market with is, you know, kind of exactly what the consumer is going to be looking for, which is deeper discount, greater value, free food, cheap gas, you know, all these things that are kind of part of everyday lifestyle. And then at the same time, you know, these game publishers, which are having to find new ways to get to consumers because historically they've used ad networks that, you know, are doing pop-up ads and other forms of advertising and, based on the consumer's private information for targeting, those networks are kind of getting closed off, so they need to find new channels such as this to get to consumers and get their games in consumers' hands.
spk08: But Dennis, tell me if I can ask another question or maybe two. How do the economics actually work? In your example, does the checker rally pay you or does the gaming company pay you I mean, you said that they're blowing out a text to their clients, get a free burger, download the game. So I understand how the gaming company would be incented to pay you. Is Checkers paying you to get that person in there as well? Or is the gaming company paying both you and Checkers in this example?
spk04: So the gaming company is just paying Mobivity. Mobivity would then also reimburse for the cost of the food or the product that was given away. And then we also, in some cases, will make money from the brand, in this case Checkers, because oftentimes the way that the free, you know, the incentive, the free burger is transacted is, you know, you have to use that coupon, say, in the app. That creates a new digital subscription back to the brand, in this case Checkers, where they may be paying us to help also as a success fee to build their digital audiences, which is very important in the food services industry right now as everyone's trying to move to digital ordering and relieve labor costs.
spk08: So is it something where the checkers are still paying you cents per transaction and the gaming company is paying you dollars, as you said earlier, it's tens of dollars of which part is going to to reimburse checkers for the food that they're providing. And in addition to that, though, you're still getting your pennies per click, so to speak, from checkers or not?
spk04: No. In the case of some of these brands, they're kind of in the same business as the gaming companies where they're trying to get consumers to download their apps for food ordering and loyalty. And in those cases, they'll pay acquisition costs in the dollars as well. So it gives us the flexibility of really kind of custom tailoring these programs, but we absolutely have the opportunity to make money off of both sides.
spk08: Can you speak to the pricing at all? Just give us an order of magnitude on what you're talking about here. You said tens of dollars. That could be 10, 20, 30. I mean, can you give us some kind of indication of? pricing model?
spk04: So it varies by game, sometimes by app, because there's a range of apps out there. There's casual play games. Casual play games can command anywhere from $5 to $15 every time a game is downloaded. You get some of the higher end types of apps out there. Maybe it you know, gambling apps and things like that, where, you know, they could be paying a couple hundred dollars, you know, per conversion. So really, you know, kind of net net is this is adding a whole new revenue layer on top of what, you know, our core business has historically been, which is, you know, still powering all of these, these digital programs for brands like Sonic and, you know, Subway and others. In fact, as a review of, You know, we're operating digital platforms for these brands that currently reach about 20 million digital consumers. The brands themselves touch, you know, probably half of the population of the United States. And you think about, you know, everybody that goes to a Circle K gas station or convenience store or goes into a subway. So when we think about, you know, back to your question on, you know, what are these conversion fees and how they can be in, you know, $5, $15, $20 per conversion, you know, we think about the business and, like, for example, right now, in the case of checkers and rallies where they use their SMS program to promote a game and give away free cheeseburgers, again, those programs that we're powering reach, like I was saying, 20 million some odd consumers. So if we got, you know, running these programs, making, you know, the success fees in the dollars, you know, that I was describing, A very small percentage of conversion, say 1%, 2% of that entire reach of 20 million consumers, has a lot of upside, as you can tell, in terms of the potential for revenue just on the existing customer base that we have.
spk08: Okay. Thank you.
spk05: Thanks, Bob.
spk02: Once again, ladies and gentlemen, to ask a question, please press star 1 on your telephone keypad. Our next question comes from Jeff Porter with Porter Capital Management. Please proceed.
spk03: Hey, Dennis. So just to kind of follow up on Bob's question, just so we can understand here, I see how we provide a lot of value and can get paid a lot of revenue up front on customer acquisition from a gaming company or helping build up loyalty with the customers downloading a brand's app. Is there a recurring revenue piece of this once we help them gain all these additional customers or is it a one-shot deal? How do we participate going forward once they have these customers?
spk04: That's a really great question. So, you know, we really feel strongly that we're building a recurring revenue model. What I'll point to here is that, again, to look at the gaming industry, mobile game retention is pretty bad. I think it's kind of like the industry averages only 5% of people that download games stick, you know, retention rates in the 4% to 5%. So if we bring a consumer to a mobile game, say through text messaging, you know, we still have that consumer's phone number. And whether or not that consumer ultimately stays in the game, we now have a platform for that gaming publisher to reengage that consumer and win them back. The integration we're building, too, every time we convert a consumer into a game where they've downloaded the game, the technical integration that we've built here also is persistent in terms of us being able to detect what that consumer's been doing over in that game. Are they playing it frequently enough? Are they taking action in the game that's monetizing for the game publisher? And so... It's not just about converting the download, but over time, how do we keep re-incentivizing the consumer? Maybe we gave them a free cheeseburger for downloading the game, but we're giving them a free milkshake every other week for continuing to play the game. So we really think that by helping them solve the retention challenges, we create a recurring revenue stream that way beyond just the initial, call it success fee of converting the gamer. Then we're continuing to rack up transaction fees and keeping that gamer engaged to the game. We also feel that the way that these acquisition programs will work, we've talked about the example with Checkers, how they sent a text message to consumers inviting consumers to download the game. We think that beyond just those one-time events, we can build an always-on network, and this is where the brands could advertise incentivize game game download or incentivize digital subscriptions you know sign up for hulu or netflix whatever the the digital product is uh that these brands can create an always on network so they're they're just putting up a qr code or some other type of call to action that's just you know standard signage at their stores or links on their website or online ordering that are kind of again always on inviting consumers to get more free rewards at their brand if they convert to digital goods and services.
spk03: Is there the possibility for like a rewards piece? Like, hey, if you get to A, B, or C in this game and win this, then you get rewarded with a burger or a discount on your guess?
spk04: Yeah, absolutely. I mean, kind of our first version of this is where gamers are earning points in a game to then exchange for, you know, brand offers and promotions or they're downloading a game to get, you know, to get the offer and promotion. But that same plumbing could be used for rewarded play where, yeah, I mean, if you get to a certain level, you get a bigger prize. Or if you complete a mission, you know, you get free fuel. And a lot of these products and services can be very organic products. to gameplay, too. Like, we've got, you know, one of our gaming partners publishes a game that's, like, literally a fast food service game. Your character is flipping burgers and trying to make as much money as possible. And, you know, how organic could that be to winning, you know, free food at your favorite fast food restaurant? Or, you know, racing games, you know, where it's automobile racing and, you know, completing levels and whatnot gets you, you know, discounts on fuel at, you know, a Chevron station or something like that.
spk03: Is this a kind of program that might be applicable to a company like New York Times, who publishes Wordle, which seems to be all the rage? Is that a potential customer to go to?
spk04: Well, yeah. I mean, I think that these rewards that we can facilitate because of our technology, again, getting people food and fuel and can be applied to any action. So in the New York Times example, they bought that game because that's going to bring eyeballs. Those eyeballs are going to maybe convert into New York Times subscriptions, increase eyeballs for ad revenues. So to the extent that they want you playing that game as often as possible to create advertising impressions or subscription value, they could inject fuel discounts or free burgers and all sorts of reward schemes with our platform, you know, into games like that.
spk03: Last question. So you mentioned that you've sort of kicked off a few of these programs, you know, sort of test market. How do you see these programs evolving throughout the year? What's sort of the timeframe between a test market and then going live commercial for revenue and, you know, how might we expect this to play out and follow over the balance of the year?
spk04: Well, I think that, you know, the remainder of this year and kind of, you know, already being into May, we've now cleared, you know, several trials that have gone to market. We're really focused on kind of acquisition throughout the remainder of the year, getting as many of these campaigns executing as possible. There's There's a lot of mixing and matching, you know, which games work good for burger brands, which games work well for fuel, for fuel discounts, promotions, and offers. We're talking to subscription services as well. It's not just game publishing. If you sell streaming video or have some other type of digital subscription service and it's all about acquisition, how can we get these different rewards into play for those types of business models? And then as I also described previously, You know, we're very close to now executing on a program in the console gaming environment. So this is Xbox or PlayStation. So I think that what we see right now, kind of looking ahead through the remainder of the year, is there's really deep demand for this. And we're kind of building these programs and tailoring them along the way. But the beauty of it is that it's all monetizable along the way as well. These aren't, you know, free trials and things like that. So we've got three programs where we're incentivizing gamer acquisition. We've done a couple of those campaigns now. They're just getting larger, and we think they're getting broader. We'll be doing a lot more brands, a lot more games. Rewarded play, we're adding – we have a big game launch coming up with a partner who's bringing a game to market. And we're adding a number of new brands to their rewarded play program where people play the games, earn points, and exchange those for rewards. And then, again, with the console gaming. So from here through the end of the year, it's just about expansion and amplification of these three programs that so far, you know, kind of through the first quarter have all proven pretty successful. Thanks.
spk07: Thanks, Jeff.
spk02: Our next question comes from Bruce Evans, a private investor. Please proceed.
spk07: Hey, Dennis. Two questions for you. Number one is I'm not an internet gaming guru, so can you explain to me how these gaming publishers make money or generate revenue by people playing their games?
spk04: Yeah, great question. So one thing I'll point out, now there are, it's right at two-thirds of the U.S. population is considered an active mobile gamer. So this is whether you're playing Candy Crush or Wordle. So the reach is really pretty vast across the U.S. population. The way that the gaming companies predominantly earn revenue from these casual mobile games like Candy Crush and others is two ways. They either serve up ads in the game, and these are intrusive, interruptive pop-up ads. But they do a lot of them. In fact, they do billions of dollars of of ad revenues from those pop-up ads. Second to that is what are called in-app purchases. So you're playing the game, the game's free, but if you want to unlock more challenging levels or you want to add capabilities to your character, customize the gaming experience, you've got to pay for that in the game. Maybe you pay, you know, $1.50 to, you know, buy a sword for your character or, You pay $5 to unlock the three or four different levels in the game, and they're called in-app purchases. And because these games come from, like, the Google Play or Apple App Store who already have your credit card, it's really a low-friction payment experience. You're just saying yes to buying things in the game.
spk07: Very good. Next question is, your California Fish Grill results were – Pretty impressive with a 23% increase in customer revenue. My question is, that's so impressive. Why isn't the world beating down your doorstep to have our technology installed with those kind of results?
spk04: That's a great question. So, you know, California Fish Grill launched a text messaging program. You know, that's been our business model the last decade. five or six years, we believe that text messaging is a top-performing marketing channel every brand should be leveraging. The difference between seeing results like that for California Fish Grill and all of the restaurant industry beating down our door to turn on text messaging is text messaging, it is a high-performing marketing channel, but it takes a lot of work. The brand's got to go find subscribers and They've got to start designing, you know, when they're going to send, you know, what offers, when, how often. And so it becomes a bandwidth and a logistical challenge for the brand, regardless of how performant the program is versus this gaming or digital rewarded model that I've been talking about where we can take a brand and and say, you know, let's take four offers, you know, buy one, get one cheeseburger, free French fries, free drink, and a, you know, half price, you know, half price chicken sandwich. Give me those four offers. I'll go put, I'll put those offers inside the reward center of a dozen games that reach 20 million people. And all you have to do as the restaurant brand is sit back and watch customers come in your door. Because these gamers are out there playing those games, earning those points to get your offer and promotion and use it to drive sales for your brand. You don't have to build a subscriber database. You don't have to think about when and where you're going to send these promotions and offers and so on and so forth. So it's really going from a do-it-yourself program that text messaging delivers great results, but it's really do-it-yourself versus just playing kind of matchmaker where we're finding great games that have big audiences that we know all eat and putting these food brands in front of those audiences. You know, low friction, instant results, kind of instant offense. Same thing with convenience. In the convenience store space, you know, just about every convenience store operator sells fuel, and fuel is a real hot commodity right now. and gaming companies would love to give fuel discounts to their gamers, and convenience stores would love to have the instant audience that these gaming companies have to drive traffic to their locations.
spk07: So, Dennis, it almost sounds like it's the person that's playing the game. By paying for little add-ons to their game, they pay for the add-ons, but they actually get the money back in the form of a coupon, right? for a hamburger or a discount on gas. So the gaming revenue company, the gaming company increases their revenues, but there's no cost to the consumer who pays for the extra add-ons to the game.
spk04: Precisely. And I think that's the cross-section we think we've hit with this is that, you know, kind of everybody wins. And again, it's not a heavy lift. The consumer doesn't need to do anything new. Consumers are already playing the game. They understand how to play the game. But now they get an added benefit playing the game. The gaming company now has more benefits to give to the consumer to get them to play more and therefore likely spend more. And the convenience or food service brand, and by the way, we certainly think this is applicable to grocery, pharmacy, movie theaters. There's a whole bunch of industries that we think rewarded play Again, not just with games, but any digital service that relies on acquiring and retaining consumers now can add this to their quiver to incentivize for acquisition and retention.
spk07: Brilliant strategy. I like it.
spk04: Awesome. Thanks, Bruce.
spk02: We have a follow-up question from Bob Berlacco, a private investor. Please proceed.
spk08: Hi, Dennis. Sorry. So I just want to make sure I understand. So in one of your recent campaigns, if you blasted out a half a million SMSs, let's say on behalf of, and I'm making the numbers up because I obviously don't know, but, you know, checkers and rallies, and you got a 2%, 1%, whichever, say 2% response. It's 10,000 people that, you know, signed up for the games, and you got paid from under my... example you got paid from checkers 10 bucks 12 bucks whatever you had to buy the burger maybe two to three dollars whatever that number is and mobility net in my example seven or eight dollars on those 10,000 if if my example is correct and just trying to understand the economics again that would be how it is paid to mobility you're getting 10 you reimburse the Again, under my example, you reimburse rallies two or three bucks, so you net seven. Correct. I'm not saying you net seven on transaction. I'm just saying if those were the numbers, that's how the money flows. You get paid, you paid, and then you pay rallies and keep the gross margin or $7. Right.
spk04: In the current testing, that's how the model is set up. One thing I will add, too, is there isn't – there's always a bit of maybe some breakage, too, where the consumer may not – they may have downloaded the game, but they never make it to the restaurant and redeem the voucher. Okay. And so our average reimbursement cost may not be one-to-one. But, again, you know, emphasizing, like, That's how we've tested the model.
spk08: But in that case, you're keeping all $10 in my example. You don't reimburse the restaurant unless the customer shows up to redeem, correct?
spk04: Correct.
spk08: But the gaming company still pays you the full $10 as soon as somebody signs up.
spk04: Right. Okay. And so we also look at that. Those are the dials that we can turn to. We want to turn up. you know, volume. We might increase the reimbursement. We might, we might, we might pay for every download and we may reimburse to the brand regardless of that. There's a redemption, but those are kind of the dials. Those are the key pieces of the economic model as you've described. It's, it's accurate.
spk08: Okay. And can you, one last question, sorry. Can you, so in the example, in my example of a half a million with a 2% uptake, that's 10,000. If you got 10,000, gross, that's $100,000. Since you've done this multiple times, I assume, do you re-blast out an SMS to maybe a new group, but also the $450,000 that didn't, or the, I'm sorry, the $490,000 that didn't take the first time? Can you continue to re-blast to the same potential customers of rallies and checkers in my example? Or do you move on to the next group?
spk04: No. So the short answer is yes, we can rebroadcast. And remember, this is all we've been doing for the last five or six years. It hasn't been messages where we send out and say, download a game and get something. But every one of our brands are sending out you know, an offer, come into Subway today and get, you know, two-for-one footlongs or whatever. And they continue to send an SMS to that same database just about weekly. I think that's about the average. All of our customers send at least one or two offers a week. But so far, again, with the trial campaigns that we've run with these tests and, you know, checkers and we've got another brand, it's just a – this is a small fraction – of the reach that we have. As I mentioned, we have 20 million consumers that we can engage through our brand's programs that we've been running historically here. So in these early tests, we've just scratched the surface of this model.
spk08: Okay. And you currently have three gaming companies, I think you said, that you are running programs for, correct?
spk04: Correct.
spk08: Okay. How many were actually... included in the first quarter were there any that were signed up post march 31st or all three of them were contract signed and actual did actually did trials with them or however you want to say in the first quarter versus how many you expect in the this quarter the second quarter yeah we had signed up um
spk04: The three in the first quarter, we only executed a live campaign with one of the partners. And we have most of these campaigns executing this quarter.
spk08: Okay. And I know I said that was going to be my last, but one more. Do you expect, since you are talking to additional gaming companies, you expect that by the end of June to have several more, one more, or too soon to know?
spk04: I think it's, you know, certainly our desire to get as many as possible. Of course. One of the things to notice, I think to note, is that the way that these gaming publishers work is a lot of them, you know, they're like a holdings company of several gaming titles. So it's usually not just a one-to-one game publisher has one game. Usually the game publishing companies have half a dozen to a dozen games.
spk05: Okay.
spk04: There are hundreds of other publishers for us to work with.
spk05: Again, we're just getting started. Thank you again.
spk02: Thank you. This does conclude today's question and answer session. And with that, we will conclude today's teleconference and webcast. You may disconnect your lines this time. And thank you for joining, and have a great day.
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