Good afternoon, everyone and thank you for participating in today’s conference call to discuss Super League Gaming’s Financial Results for the Third Quarter ended September 30, 2021. Joining us today are Super League’s President and CEO, Ann Hand and CFO, Clayton Haynes. Following their remarks, we will open the call for your questions. Before we go further, please take note that the company’s Safe Harbor statement within the meaning of the Private Securities Litigation Reform Act of 1995. The statement provides important cautions regarding forward-looking statements. The company’s remarks during today’s conference call will include forward-looking statements. These statements, along with other information presented for this matter like historical facts are subjected to a number of risks and uncertainties. Actual results may differ materially from those implied by these forward-looking statements. Please refer to the company’s recent earnings release and to the company’s reports filed with the Securities and Exchange Commission for more information about the risks and uncertainties that could cause actual results to differ. I would also like to remind everyone that this call will be available for replay through 8:00 p.m. Eastern on November 22, 2021, starting at 8:00 p.m. Eastern tonight. A webcast replay will also be available via the link provided in today’s press release, as well as on the company’s website at www.superleague.com. And now, I would like to turn the call over to the President and CEO of Super League Gaming, Ann Hand. Ann?

Thank you, Mary. And good afternoon, everybody. We have lots of fantastic progress to report from material expansion in our creator and audience reach through to another record breaking revenue quarter. But before we dive in, I would be remiss to not mention the metaverse as it seems to be the buzzword of the quarter, thanks in part to Facebook's rebranding. According to Digiday, Google searches for metaverse stock have increased by nearly 18,000% from this time last year. But this isn't news to us, or to any of you as investors in Super League. We've been talking about the metaverse for some time. And it's not just an aspirational statement. We are already there. We are in it. And is bigger than a buzzword. It is a persistent user defined digital layer of our physical world. It is limitless and enables relationships, commerce, experiences, and self-expression. And most of all, it is not controlled by just one or a few. It is built by creators and developers and it generates real human interaction and real world dollars. And that brings us right back to Super League. We are a creator centric platform, a league of creators who create and share with their audience their metaverses, their gameplay and their live streams. Our talented creators are the sun and our universe. And by empowering them with our tools and economies, their content and their audiences become a part of our universe as well. Before I get into the business context for the quarter, let me provide a quick recap of our financial performance in Q3. Our third quarter revenues reached a record 3.6 million up 402% compared to Q3 2020, and up 233% compared to Q2 2021. Our three primary revenue streams each increased significantly. Notably, advertising and sponsorship revenue…

Thank you, Ann and good afternoon everyone. I'd like to start by also expressing how excited we are to have added Bloxbiz and Bannerfy to the Super League roster. Moreover, we continue to make significant progress on fully in integrating the Mobcrush team across sales engineering and other areas. We are delighted to see the synergy that we are generating from all of these new properties as we further expand our reach into the metaverse and enable creators to create, distribute and monetize their content. Jumping right into the results for the third quarter, as summarized in our earnings released filed this afternoon, third quarter 2021 revenues were 3.6 million compared to 718,000 for the third quarter of 2020. The 402% increase in revenues was driven by strong increases for all three of our primary revenue streams including advertising and sponsorships, content sales, and direct-to-consumer revenues. Third quarter 2021 advertising and sponsorship revenues, which includes direct sales, advertising and brand sponsorships, as well as programmatic display and video advertising revenues increased 2.1 million or 689%, totaling 2.4 million for the third quarter of 2021, up from 299,000 in the third quarter of 2020, and comprise approximately 65% of revenues for the third quarter of 2021 as compared to 42% of revenues in the third quarter of 2020. The increase in advertising and sponsorship revenues primarily reflects the first full fiscal quarter of integrating Mobcrush ad products to our platform that our sales team can take to market. Content sales revenues increased 63% over the prior year quarter to 618,000 and accounted for approximately 17% of revenue from the third quarter of 2021, compared to approximately 53% of revenues in the prior year quarter. Content sales revenue is generated in connection with our curation and distribution of esports and entertainment content…

Thanks Clayton. Well, I hope you can all sense the enthusiasm we feel for what we've built to date and where we're headed as a company. Our solutions provide incomparable access to talented creators and their highly engaged audiences, along with millions of players in the metaverse. We will continue to expand our metaverse reach and suite of tools to further empower our creators to grow and monetize their fan base. And as a result, continue to grow our differentiated advertising inventory to enable brands to achieve impactful marketing outcomes with gamers of all ages. And as I mentioned earlier, Q4 is looking very, very bright. And with that Clayton and I will now take your questions. Operator?

Thank you. [Operator Instructions] Your first question comes from the line where Jack Vander Aarde from Maxim Group. Your line is open.

Great. Hi, Ann. Hi, Clayton. Congrats on the solid momentum and the latest acquisition of Bloxbiz, pretty exciting stuff. Thanks for taking my questions. I'll just jump into it. First, let me just start with Super League and Mobcrush and their performance during the course Super League and Mobcrush during the quarter. And just how did Mobcrush and Super League and the integration process, just how did that all play out in the results, which were on the top line are clearly noticeable those uptick, just how did that perform from relative to your expectations from the last time we talked a couple months ago?

Yeah, I mean, I would say very candidly that we delivered – we proved a point. We had said all along that you put together the powerful sales teams, the powerful inventory, and one plus one equals three, four or five. And what we knew even before we closed on the transaction, is that we had already started sharing our pipelines and realized we weren't chasing the same deals, we were kind of had strengths in different verticals. And more importantly, that when you put the inventory together, that now we can start really boosting the campaigns. We can be selling a lot more ad inventory to work for these advertisers. And so you see that represented not in the way our deal size has grown. I mean, we used to pat ourselves on the back when an average deal size was in the 50,000, 60,000, 70,000 range. Now we're talking about deal sizes that are over 200,000 on average. And even when you look at what we're selling Jack, I mean we – multiple RFPs are going out and they are truly depending on whether the brand or advertiser wants to reach a young gamer audience or an older gamer audience. We're picking across widely across the inventory and then these RFPs are bringing together lots of ad units that really not only out deliver for that campaign, but they're coming from legacy parts of Mobcrush and Super League combined. And so you really can't anymore look at any of our campaign deals and the advertising deals we're pitching and say, well, that was a Mobcrush one, that's a legacy Super League one. That's kind of the power, whether we're grabbing young or older social influencers, whether we're touching into Super League’s owned and operated metaverse property with Minehut, or now all the reach the Bloxbiz gives, you're seeing that reach across all those ad properties to really give the advertiser a really unique blended campaign that none of us could have done independently. If I had to put a number on it. I would say that I think at least $1 million of the revenue that we delivered in 3Q. Again, this is just a guess estimate is really through the synergies and driving the deal size up because not only the teams, but the inventory came together.

Excellent. I appreciate you had to cover there. And just speaking, which may be a follow up to that is on the advertising sponsorship side. I believe I heard correctly, that average deal size was around 200K and add inventory opportunities were up fivefold or five times over the prior year, which is great to hear. Can you maybe just talk about how that average deal size and add inventory relates your expectations maybe for the same time next year and where that compares?

Yeah, I mean, I can't really predict. What I would say is that just like we're seeing a step change in the revenue of Super League from last year to this year, we would expect a similar kind of step change as well. We really think that we've laid a lot of foundational work for 2021. And that 2022 is a year where we're going to show investors that we can really start ramping up again, continuing this trajectory ramp on revenues. And so with that, one of the things you need to do is make sure you have a healthy pipeline to supply and to deliver those revenue streams. So if we want to grow our revenues, at some, some rate, we're going to have to see a corresponding growth in the pipeline size. I do believe we're going to continue to see the average deal size grow as well. But we are already winning pieces of business or bidding on pieces of business that now are more in the 400K or 500K range. We have a couple of those under our belt for the second half of this year. And so I believe that's a trend line that will continue. And again, it means that as we also see that other healthy metric that I spoke about earlier, 70% repeat. That's so important, because that means that we're delivering the outcomes the advertisers need. But as I already said to when you now look across all the verticals that were chasing these ad deals on, the richness of now for the second year in a row, a rich deal that we've secured with Hyundai and the automotive category, the way we're expanding into retail and consumer products, we want to see both the breadth and the depth in those verticals continue to grow. And that's how the pipeline is going to grow. And then the more ad inventory we have to sell that's compelling, the more that we can drive up the overall deal size as well.

Excellent. And then just let me switch gears then. That covers the advertising side quite a bit. Just speaking of the creator side, you mentioned you currently have over 1 million, I guess 1.1 million creators in your platform already, which might be rather impressive, something that probably sneaks under a lot of investors’ radars. Just given this new age of the metaverse economy and given the emphasis on creators. Just a couple things here. Does this creator number include Virtualis? And then second, in general, can you speak on why having 1 million plus creators are so important to your business? And how that kind of compares to your longer term plans for how many more creators you you're going to add?

Yeah, the key is that – and I'll take the latter question first. I mean, it is the core driver that brings in community and content and audience and ad inventory into our flywheel, right. So as I said, if the creators are the son of our universe, every time we add a creator, there is an exponential new set of eyeballs or audience that comes with that creator. There's that creator’s engaging content as well, which we can find derivative homes and monetization for just like we do with Snapchat and others. And so the creator is kind of the way every time you add one into the flywheel there is this amplification effect that happens around our community audience and kind of content engine so to speak. What I would say about the breakdown of that 1.1 million creators, right, now, a significant of them are around the metaverse. So I would say that roughly, probably at least 50% are people who are creating their own games or realms inside a metaverse property. Now, that can either be creating their own Roblox game titles for which then they become a business partner of Bloxbiz, using the Bloxbiz technology as a way to sell ad units and to monetize their exciting Roblox game, or they’re people who are earlier. They're kind of the future Roblox game developers. They're the people on our property Minehut, where they're creating their own private realms and gameplay for their friends and growing audiences. And keep in mind on Minehut, we can have everything from a very young gamer who may be just has 10 friends inside their game, to very sophisticated Minecraft game developers who are reaching 1000s and 1000s of players. Now keep in mind too, we're not done with just those…

Okay, great. I think I've asked enough questions. So I'll have hop back in the queue. Again, great quarter. Great to see. Thank you.

Thanks, Jack.

[Operator Instructions] Your next question comes from the line of Bill Morrison with National Securities. Your line is open.

Hi, Ann and Clayton. Congrats on the significant revenue growth and the latest deals and transactions. Just my first question, I'm not heard about – a lot of about social media influencers on your platform Ann. Can you remind me what percentage of your users and revenues derived from social media influencers?

Well, keep in mind what I'm talking about there Bill, is we're talking about the fact that when that streamer, let's take that live streamer who's using the suite of tools for Mobcrush, right. So they, they use the free set of tools for this multicast thing. And then they can opt in if they want to participate in the ad model. The moment they do that, when I talk about us reaching 119 million US audience a month as verified by CreatorIQ, that 119 million is for every one of those people using our Mobcrush tools or using some of our other creator tools, we get to add up the audiences. How many people follow them on Facebook or Twitch, we get to add up all their nodes and aggregate that as our audience reach. And so when we talk about creators, social media influencers, it's really the same group in that case. It's these people who are streaming content to their social media channels and in turn, by using our tools, we get to control the eyeballs and add inventory on that distributed set of nodes of their audiences across all of their channels. So whether we call them social media creators or influencers, they're really the same thing. Now we do focus Bill, more on what we call the mid-tier creator. So while we have very sophisticated tools and ad models that we think over time will attract those big mega creators. We've always been about kind of entering and starting a relationship with creators when they're earlier in their journey and just starting to add to build those audience so that we can kind of grow with them as they become more and more powerful influencers. But again, all that said, the fact that if you add up the social media audiences of all of our social media creators alone, that we're talking about almost 120 million Americans as an audience a month it's material. And we would also take a point of view, which we say to advertisers, and they agree, which is that that kind of real kind of stickiness, brand affinity, real community happens at that middle tier, where these are audiences that really are invested in this kind of up and coming creator and want to follow their compelling content.

Great. Interesting. And was there a number you put on as far as percentage of inventory and ad revs for that slot?

Well, I mean, look, I think the easiest way that we do try to talk about our reach is I think it's best to say we really divide our inventory into two buckets. There are things that we do, as I mentioned earlier, for that under a team gamer, we call that our young gamer network. And we pull from properties the games that we reached through Bloxbiz for Roblox with Minehut, through Minecraft, or other Minecraft properties and Mineville, Pixel Paradise, plus what we would call under 18 of the social influencers and creators. So if a brand wants to reach a, call it 14 to 16 year old demographic, we're going to pull from all that different ad inventory, and say, here's a package for you have a really compelling full circle campaign to reach this young gaming audience. And then when we talk about the older demo, that over 18, kind of more competitive gamer, we're going to pull from our Mobcrush kind of influencers, which tend to be more of an 18 to 30 year old demographic of social media, influencers creators. We'll also look at properties and offers like Super League Arena, our branded Super League social channels under frame rate, those audiences tend to overlap. And so when we're going for an older demographic, we will be pulling from those types of properties. I would put Bannerfy as well for now in that kind of older gamer demographic. But here's what's great. We can start cross fertilizing. We can start offering Mobcrush and Bannerfy products to younger gamers and start to build out more kind of social reach with young gaming audiences to package that into our young gamer campaign RFPs. So that's really the way I would think about it. And I think the point is, I don't know if it's so important to split. Let's call it 60-40 young to older gamer, the split of the inventory. I think what's more important is, is that we're not even – we're barely selling out 10% Now some of that you'd say, well gosh Ann, is that mean that you guys just aren't good at selling? No, obviously not. Look at the step change of 402% increase in revenue relative to prior year. It's because at the same time as we're doing these acquisitions, and we're organically growing, our growth of our inventory is faster than we can sell it. And so we've got to work on that. And that's why selling bigger campaigns is good, that'll up our fill rates. But we're kind of almost playing catch up right now because the overall inventory is growing so exponentially so fast in very exciting ways, which is good for the investors, that means that this picture only gets better.

Yeah, sounds great. And along those lines the big bump up in average deal size, can you give me like a little more color on what the advertiser pipeline looks like, like the number of different industries and the number of different logos that are now interested versus say six months ago?

Yeah, I mean, I mentioned earlier, the automotive sector is an exciting sector where we've seen a lot of growth. When I talk about CPG, I'm talking about kind of the big name companies you'd expect. Whether it's kind of talking to companies like the P&G's of the world or the Nestle's, it's about what are ways that they can start thinking about the metaverse as a way to drive people into physical conversion. You've even seen it Bill with fashion recently. At first, it looks like a gimmick, when you see that a brand like Gucci, high end luxury retail brand is selling virtual Gucci fashion accessories in video games. But think about it, the first thing is, well, it's very affordable to buy a $5 Gucci cape for your digital avatar. So first, you're introducing a brand that seems very exclusive to an audience that maybe would never reach in a game. And you're also starting not just a brand awareness journey, but a legitimate interest in that brand. So not only is it maybe a revenue stream, selling digital goods that Gucci never imagined would be even if it's small on their P&L, but now that person who has their digital avatar, wearing these products is now going to have a much higher likelihood to actually want to bring a little bit of that brand into their physical life as well to perhaps shop online for physical goods or even walk into one of those stores. And so when I talk about digital to physical crossover, you even saw it in our Moonjam concert that we ran this summer in Minehut. We had GameStop in there. And there were ways that people could get educated on products that could drive people to GameStop’s website or to their…

And you’re talking about metaverse and your relationship with Snap, are you going to tie into their augmented reality e-commerce product or how does that work?

We already have a very healthy kind of strategic partnership with them. I do not know of any specific plans to do that just yet. But there's just really no reason, if we're supplying them content, it's certainly they're going to want that to integrate with the augmented reality, e-commerce that they're building. So while I can't say we have an active conversation on it right now, given its work in progress. I would not be surprised that they would be taking that content that they are asking us to make them where we do already today share a really healthy ad revenue, share split, when they're out promoting that content. I can't imagine we wouldn't be over time tying some of those advertisers into ways that they can click on that content and buy, whether it be in-stream or inside the content, or in the advertising that gets overlaid on top of it. So I think the key here is our relationship with Snap and with Twitch. We're at a place where now we are doing business with them every month. So in both cases, we've become strategic partners. And so I think we're becoming a central part of continuing to be heavily integrated in their strategies going forward.

Interesting. And my last question, given the recent deals, what does the ad platform look like going forward? Like how many screens, how many back ends, how many sales people, what does that look like going forward?

Yeah, I mean, right now, sales is definitely in engineering or the two largest teams in the company. And when you look at what has now happened exponentially, not just with Mobcrush, but then bringing in – Mobcrush came with a healthy strong sales team. But now when you add in this fresh, new, exciting inventory with Bloxbiz and Bannerfy, you will see us continue to grow our sales team. I think what I would though, want to really emphasize for investors is, and I said it a couple different times in different ways and in the call is the other key is around the automation of our tech stack. As you can see, if we're selling for very small percent of our inventory, and the inventory is not static, it's continuing to grow. One of the material ways that we can continue to sell more and more of our inventory, but not exponentially have to grow our sales team is through automation. And so whether that is through campaign meta tools that can create and deliver a campaign, extract real time reporting, so that we don't have human bodies putting those reports together. That's probably the thing that maybe it wasn't as obvious through just the press releases alone. But Bloxbiz and Bannerfy did not just bring a new piece of ad inventory and a chunk of new creators to the platform, they brought some tech behind it. And it's exactly the kind of tech that we knew we were going to have to build for ourselves. And so we got to jump ahead on the automation curve, and some pretty exciting work in the product roadmap in 4Q. So now, this automation journey, we'll be marching through that through a lot of next year too. So this isn't something that's an easy switch to flip. But ultimately it means that while we'll continue to grow our sales team and our efforts we don't have to every time we get a new chunk of ad inventory add bodies against it.

That's great. So yeah, so I was kind of looking for like a sales efficiency like going forward.

Exactly. But yeah. No, we definitely right now, I mean we're seeing that our sales team is strong and performing. We think best in class that every single sales person could be at their optimal efficiency, selling 2.5 million, 3 million of sales a year. And so we know that right now we're at about, like, call it 25%, 30% efficiency, but again, we're still absorbing all this new inventory. The other thing is that we are also really taking a look at not just fill rate, but just our overall CPMs. Now that we've got some real case studies of how our ad units are performing, we recognize we can be pushing CPMs up. And so a big piece of the work that Mike Wann, the former CEO of Mobcrush, is leading for us as he leads our sales team and all of those efforts is how do we think more about yield management? And how do we get the optimal amount of revenues and CPMs out of our inventory? How do we improve sales force efficiency and the use of resellers I talked about? How do we use in direct sales as a compliment, not to cannibalize our direct sales, but as a compliment to make sure we don't leave any inventory on the table. Inventory is ultimately perishable. And so we think there's a smart way through the use of our sales teams, other sales teams like Screenvision Media, and continuing to grow the health of our ad inventory, we’ll continue to see margins grow. And then again, automation plays a big piece of that too, because it means that’s more time our salespeople can be selling and not delivering campaigns.

Nice. Thanks for answering all my questions. Appreciate it.

At this time, this concludes our question-and-answer session. I would now like to turn the call back over to Ms. Hand for closing remarks.

Okay. Well, we'd like to thank everyone for listening to today's call. Look for Super League’s participation at the Masters of the Metaverse webinar on December 7, and the Wolfe Research Conference on December 14. And we look forward to speaking with you again when we report our fourth quarter and full year results in March. And with that, we wish you guys a great evening. Take care.

Ladies and gentlemen, this does conclude today's teleconference. You may now disconnect your lines at this time. Thank you for your participation.