ZNGA: EDITED TRANSCRIPT OF ZNGA EARNINGS CONFERENCE,CALL,OR,PRESENTATION&DAWN,OF,TITANS
EDITED TRANSCRIPT OF ZNGA EARNINGS CONFERENCE CALL OR PRESENTATION 4-AUG-16 9:00PM GMT
ABLE TO SHOW THAT IT HAS A LONG-TERM ENGAGING GAME MODEL THAT ALLOWS US TO KEEP CUSTOMERS ENGAGED OVER THE WEEKS, MONTHS, AND YEARS
…OPERATOR [14]
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BRIAN PITZ, JEFFERIES.
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BRIAN PITZ, JEFFERIES & CO. - ANALYST [15]
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Thanks for the question. [color=red]MAYBE JUST A FEW MORE ON CSR. CAN YOU TALK ABOUT THE REVENUE SPLIT BETWEEN [ADDS] AND IN-APP PURCHASES, AND ALSO HOW DO THE ADDS IN CSR COMPARE TO OTHER GAMES[/color] like Words With Friends? And then just separately, GIVEN THE SUCCESS OF CSR, JUST CURIOUS IF YOU'RE GETTING MORE OPTIMISTIC AROUND OTHER TITLES FROM NATURALMOTION INCLUDING DAWN OF TITANS RIGHT NOW? THANKS SO MUCH.
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[color=red]FRANK GIBEAU, ZYNGA INC. - CEO [16][/color]
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Well look, I'M A BIG BELIEVER IN NATURALMOTION. I'VE BEEN OUT THERE SEVERAL TIMES SINCE I JOINED THE COMPANY AND IT IS A FANTASTIC STUDIO, REALLY TALENTED PEOPLE, AND THEY DO THINGS IN THEIR GAMES AND ON MOBILE DEVICES THAT NOBODY ELSE IS DOING. So I think CSR2 as a long anticipated release from them has come out and has done very well on a quality standpoint and is really engaging with fans.
As we grow it in live ops I'm excited about what the potential is there. We're not really breaking out the in-app purchase versus advertising pieces. We look at the majority being from in-app purchase, but advertising is a nice piece of that whereas in Words With Friends the majority of that revenue is obviously from advertising.
AS YOU LOOK FORWARD TO DAWN OF TITANS, A LOT OF THE THINGS THAT WE'RE DOING IN TERMS OF LOOKING AT THE GAME TEAMS, ENABLING THE TECHNOLOGY, spending right -- the right time in soft launch to look at what is working from a feature standpoint, A LOT OF THE LEARNING THAT WE'VE GONE THROUGH ON CSR2 IS CLEARLY BEING DEPLOYED ON DAWN OF TITANS.
And we have the time between now and launch later this holiday season where WE'RE SPENDING A LOT OF TIME REALLY LOOKING AT WHAT'S IT GOING TO TAKE TO DELIVER ON THE GREAT QUALITY THAT DAWN OF TITANS IS ALREADY DEMONSTRATING IN ITS GAMEPLAY AND VISUAL LOOK, but really BE ABLE TO SHOW THAT IT HAS A LONG-TERM ENGAGING GAME MODEL THAT ALLOWS US TO KEEP CUSTOMERS ENGAGED OVER THE WEEKS, MONTHS, AND YEARS that we think that that franchise can create.
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Brian Pitz, Jefferies & Co. - Analyst [17]
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Thanks so much.
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Rebecca Lau, Zynga Inc. - IR [18]
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Operator, next question.
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Operator [19]
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Eric Sheridan, UBS.
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Eric Sheridan, UBS - Analyst [20]
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Thanks for taking the question. Maybe two. One, obviously WE'VE SEEN THE SUCCESS OF POKEMON GO. WANTED TO KNOW WHAT THAT MIGHT MEAN FOR THE WAY IN WHICH YOU GUYS GO AT SORT OF DESIGNING GAMES or thinking about the interactivity of games in terms of the way they launch and the way you create engagement around the games that a franchise is going forward.
And then second on the advertising business, appreciate the color on some of the bigger partnerships. Maybe you could DIVE A LITTLE DEEPER THERE AND HELP US UNDERSTAND HOW SOME OF THOSE ADVERTISING PARTNERSHIPS MIGHT EVOLVE NOT ONLY THIS YEAR BUT AS YOU MOVE INTO 2017. Thanks so much.
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Frank Gibeau, Zynga Inc. - CEO [21]
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Sure. Look, I think Pokemon is an amazing phenomenon and I think it has really come in and help change expectations, and frankly the analysis of what was going on in mobile. They really shook it up, they burst in to the top of the charts, and they did it in an innovative way. At its core it's an incredibly innovative product on an augmented reality level with a great brand.
BUT WHAT WAS REALLY INSPIRING TO US AT ZYNGA IS HOW SOCIAL THE GAME IS. And how much it enables group play and communication and trading and conversation and ways to interact in new ways. WE FIND THAT INCREDIBLY INTERESTING AND INSPIRING, AND IN FACT IS REALLY IN TUNE WITH THE SOCIAL VISION OF OUR COMPANY, which is WE BELIEVE THAT ON MOBILE DEVICES BUILDING A GAME FROM ITS INCEPTION, THINKING ABOUT AS SOCIAL, AND A GAME YOU CAN PLAY WITH YOUR FRIENDS AND FAMILY, AND GAMES FOR BUSY ADULTS, GAMES FOR PEOPLE THAT DON'T NECESSARILY CLICK ON GAME ADS.
THIS IS THE VISION OF OUR COMPANY IS TO BUILD PRODUCTS LIKE THAT, and Pokemon really POINTS TO THAT DIRECTION AND VALIDATES A LOT OF THOSE THINGS. We have also been DOING RESEARCH IN THE TYPES OF TECHNOLOGIES THAT ARE COMING ONLINE AS YOU GET MORE POWER IN THE PHONES AND POSSIBILITIES IN THESE PLATFORMS THAT WE'RE ALSO EXCITED ABOUT. SO WE'RE GOING TO HAVE MORE WAYS TO INTERACT WITH OUR FANS, OUR FANS ARE GOING TO HAVE MORE WAYS TO INTERACT WITH EACH OTHER, AND IT FEELS LIKE IT'S DEFINITELY IN THE DIRECTION THAT WE'RE TRYING TO TAKE THE COMPANY.
In terms of advertising, WE HAVE A LOT OF NETWORK PARTNERS OBVIOUSLY. WE'RE ALWAYS LOOKING AT NEW NETWORKS TO BRING ONLINE BOTH NATIONALLY AND INTERNATIONALLY, AND WE LOOK AT THEIR KIND OF REACH AND THEIR IMPACT, AND WE'RE VERY FOCUSED ON THAT PIECE. But WE ALSO HAVE A GREAT COLLECTION OF BRAND PARTNERS WITH PEPSI, DISNEY, PROGRESSIVE, MCDONALD'S.
And WE REALLY ARE INNOVATING WITH NEW AD PRODUCTS FOR THOSE PARTNERS. AND WE'RE CONSTANTLY ON THE HUNT FOR BRAND PARTNERS THAT ARE LOOKING TO DO NEW THINGS IN INTERACTIVE AS WELL AS ON DEVICES -- MOBILE DEVICES. So I feel very good about the business that we built up over the last several years in advertising, and WE HAVE SEVERAL NEW AD PRODUCTS THAT WE ARE ACTIVELY INNOVATING ON RIGHT NOW WITH BRAND PARTNERS…
Source:
finance.yahoo.com/news/edited-transcript-znga-earnings-conference-033335040.html;_ylt=AwrC0wylQatXo30AL_3QtDMD;_ylu=X3oDMTByMHZ0NG9yBGNvbG8DYmYxBHBvcwM3BHZ0aWQDBHNlYwNzcg--
