skillz(US:SKLZ)2021-08-04 03:48Financial Data and Key Metrics Changes - The company made important investments to accelerate user growth, content increase, and platform technology advancements, setting the stage for long-term growth [8] - The company expects Aarki to contribute $13 million in revenue for the remainder of 2021 before synergies [15][29] Business Line Data and Key Metrics Changes - The conversion rate from playing to paying users is expected to increase to 40% or higher over the long term [14] - The company is focusing on optimizing the value chain from impression level down to end-user lifetime value (LTV) [37] Market Data and Key Metrics Changes - The company is experiencing elevated customer acquisition costs (CPIs) and is making investments to mitigate these high CPIs [36] - In July, the pace of industry pricing increases began to stabilize, with expectations for pricing to flatten before decreasing later in the year [42] Company Strategy and Development Direction - The company is focusing on expanding into genres such as racing, fighting, and first-person shooter games through its investment in Exit [18] - The long-term vision includes centralizing competition on the Internet and expanding beyond mobile to non-gaming applications like fitness [39] Management Comments on Operating Environment and Future Outlook - Management noted that Q2 revenue growth was in line with expectations despite tough comparisons due to COVID-19 impacts last year [36] - The company is optimistic about the integration of Aarki and its potential to improve targeting and efficiency in user acquisition [31] Other Important Information - The company is working on new content and international opportunities as potential growth drivers for the second half of the year [35] - The NFL competitors challenge has generated significant interest, with hundreds of game proposals submitted, and 14 semifinalists are currently in the development phase [54] Q&A Session Summary Question: Conversion to paying players and Exit games investment - Management believes there is significant upside in increasing the conversion rate to paying users and expects the Exit investment to accelerate expansion into new game genres [14][18] Question: Average LTV for CAC and Aarki's impact - LTV remains strong, and the company is working on initiatives to lower customer acquisition costs, with Aarki expected to enhance performance through better targeting [27][31] Question: Growth drivers for the second half of the year - Key growth drivers include new games, international opportunities, and optimizing the value chain for better predictive LTV [35][37] Question: User acquisition versus engagement marketing - Engagement marketing focuses on retention and monetization of existing users, while user acquisition is preferred for long-term growth [48] Question: Take rate and IDFA impact - The take rate is influenced by various factors, and management expects the impact of IDFA to be neutral, with potential decreases in cost per install [56][59]