Jason Hahn: Yeah, we remain committed around our M&A strategy. There’s a lot of opportunities out there in the market. We have an active pipeline of companies that we continue to engage with on the M&A side. As you know, it’s getting these M&A deals over the line is complex. We need to structure deals that are accretive to our financial profile, both growth and margin. And they also need to be strategically compelling and timed right at the right time when we’re able to transact upon them. So we don’t have anything at the moment that’s closing right now that we can announce. But we’re engaged in deep conversations with very exciting opportunities.
Greg Gibas: Sounds good. Thanks, guys.
Jason Hahn: Yeah. Thank you, Greg.
Operator: Thank you. [Operator Instructions] Our next question comes from Martin Yang with Oppenheimer & Co. Please state your question.
Martin Yang: Hi. Good afternoon. Thank you for taking my question. First question for Andrew, can you share with us what your high-level thoughts on the prerequisites for social casino as a genre to recover? Anything you could point to either internal, external, would be helpful. Thank you.
Andrew Pascal: Hey, Martin. Thank you. I mean, that’s a good question. I think that the casino genre continues to, I think, command a lot of interests. It’s over time gotten increasingly more competitive. And I would say more recently it’s come under maybe not so much pressure, but the areas of growth and opportunity have shifted into different types of commercial models. So, our general feeling is that we’ve got a pretty large audience of engaged players that love this form of content. And as we look at some of our peers, we see that there are still opportunities to actually scale and grow audience, although that’s become more challenging. So, I think for us it’s really about looking at different commercial opportunities, ways to monetize more of our existing audience, the direct-to-consumer opportunities, which for us we’re, I would say, behind the market as far as the momentum.
And yet we have some really compelling unique assets in order to compel our existing players to purchase with us direct in our platform. So, I think the momentum that we’ll continue to see as we convert more players direct to purchase and as we look to test and try different commercial models, I think that’ll change some of the underlying economics of our products, which will then in turn allow us to invest more aggressively in acquiring and scaling up the audience again. So I would assume the same is true for a lot of our peers.
Martin Yang: Thank you. My next question is about Tetris. Still around June, in time for the 40th-year anniversary, is there any other external events, large market campaigns, that you should maybe point us to watch for potential industry-wide re-engagement or events that will drive new players to all things Tetris, including your game?
Andrew Pascal: Yeah, it’s a great question. My Co-Founder, Katie Bolich, who is responsible for our new game development in the Tetris franchise. I believe is also on the call. Maybe I’ll let her take that question.
Katie Bolich: Sure. Hi. Yeah, no, we’ve got a number of campaigns lined up to celebrate the anniversary of Tetris, starting with our Tetris rebrand. We’ve got – we’re considering it the year of Tetris, and so we’re layering in activities throughout the period of the – throughout the entire year. So we’re pretty excited. We’ve got some activities with our playAWARDS partners. And then on top of it, the Tetris company is doing a number of campaigns that should raise the profile of Tetris as well. So we’re very excited for the Tetris anniversary, and we expect people to be talking about it.
Martin Yang: Thank you very much. That’s all from me.
Andrew Pascal: Thanks, Martin. Thanks, Katie.
Operator: Thank you. Our next question comes from Clark Lampen with BTIG. Please state your question.
Clark Lampen: Thanks for taking the question. I just kind of wanted to follow-up on that last, I guess, sort of topic of social casino market dynamics. And just to be clear, if we were to imagine that I guess the market backdrop for mobile as a whole was improving, is your view that social casino, I guess, is sort of as a sub-segment of that, more of a steadier entity, that if the market, I guess, is sort of ebbing and flowing up and down, that social casino patterns are going to be a little bit more muted. And maybe there is less of a, I guess, potential sort of rising tide lift all boats dynamic with that piece of the market? Or is that kind of the wrong, I guess, takeaway here?
Andrew Pascal: I mean, I think that’s generally the prevailing view. I mean, if you look at the forecasts for social casino, well, if you look at the last several years and its trends, it’s generally been flat, and it’s actually compressed a little bit a couple of years ago, and it’s just in the last year been flat to down slightly. I think the forecast going forward are for to generally be fairly stagnant. So, nobody that’s kind of been following the various companies and market trends sees that there’s a catalyst for driving any real meaningful growth. For us, we still look at the category as being very significant to $7 billion plus market category. And we believe that our products continue to differentiate themselves.
We’ve got games and brands and mechanics and features within our products that we think really distinguish them from everything else. And there’s a lot more that we can do in order to monetize our existing audience, which will then start to change the unit economics around what we can afford to spend to acquire new users in order to start driving growth. And so that’s why maybe we didn’t explain all that clearly that I think as we improve the monetization of our existing products. That’s going to change the dynamics of how much we can continue to invest in both stabilizing our existing audience are starting to grow it again. And we believe that’s possible, but not in the absence of improving the overall ratio between the cost of acquiring users relative to their returns.
Clark Lampen: Got it. I guess as we – that’s helpful. If we think about, I guess, sort of the confluence of those factors between sort of market dynamics and a push towards monetization and some other things I just kind of on top of that. What does that translate to for DAU growth? I guess I know it’s not an item that you guys explicitly sort of guide to over the balance of the year, but if we were to think about sequential patterns of growth from here, is there sort of directional commentary that you guys could provide for us?
