Jack Vander Aarde: Okay. Great. I appreciate the color there. And then just switching gears to M&A, you’ve closed a few acquisitions in recent history. I think MELON was the most recent, back in May of 2023. And then you recently divested the Minehut business this year. So can you just touch on the M&A front a bit further and whether you’re looking at any other strategic moves? If so, what would fill the gaps even further for you if there’s anything there? Just any color there would be helpful on M&A. Thanks.
Ann Hand: Yes, and I have talked openly about this historically, so I’m not saying anything new. We have a history of being acquisitive. And what’s happened is I think increasingly, just over the last six months alone, to me it felt very palpable how much the M&A conversations continue to kind of heat up, so to speak. Now some of that is because it is a very fragmented ecosystem underneath the titans like the Roblox is. It’s a lot of kind of mom-and-pop businesses. And we’ve all been swimming in this lane anywhere from five to 10 years, Super League, the longest of many. But our financials are out there as a public company. And so a lot of the companies that approach us are maybe doing about half our revenue or a third of our revenue.
And so they can see that we are larger. And so we had a lot of inbound, saying, “I’d love to get to know you guys better,” or maybe we already have collaborated with them. We already partnered with them. And they want to get into that M&A conversation. And I think it’s inevitably because there is a real market opportunity here. I mean this is one of those things where it’s like a game of musical chairs. And if you sit back and wait, you might just miss out on taking a really dominant position. And so we continue to explore M&A and we’ll continue to be acquisitive as long as we know that it helps us deliver on the path to breakeven this year and deliver top line growth. So we really want these things to come in the door already breakeven or slightly profitable.
And then once we execute on that M&A, we can grow more synergies on both the cost and top line perspective. The kinds of things that help us, one is more game studio capacity. I mentioned earlier, when you said MELON, well MELON brought in a pipeline of custom worlds they were building for Chipotle and others but it also lifted that capacity, so we don’t have to outsource as much. We don’t want to say no to a program, but we’re inevitably going to have lower margins if we outsource. So game studio capacity is a good thing. I wouldn’t say that we would stop there. What we really want on top of it is more product and more tech because that’s how we create more of a moat, more defensibility with the unique way we are positioned as this kind of truly a company that does have a tech and product backbone behind the also great creative capability that we’ve built out.
That’s how we win big programs. We can do both. And the more that we bought or built our own product and tech, the more we solidify that leading position and the way to take down bigger programs.
Jack Vander Aarde: Okay. Great. And just maybe just one for me. In case I missed it, it would be helpful and I understand you don’t provide formal guidance, but it would be helpful to just get some added color on maybe the near-term outlook and then just kind of more notably your longer-term outlook. Are you able to reiterate your long-term target over the next few years for that $100 million-plus revenue and significant gross margin expansion? Thanks.
Ann Hand: Yes. I mean the proof points for the margin expansion, that’s why I pointed back with Howard back to that product. There’s an intro of new products and further productization of experiences. That’s where we’re going to continue to get that march up to north of 50% and higher. And that’s essential, right, because again that gives us also operating leverage. It means that things take us a fraction of the time to deliver a brand’s campaign. So it has a multiplier effect. But equally, as far as top line, our rally cry is still to hit that $100 million over the next few years. And I do think that, that comes through organic and inorganic growth. And I don’t think it takes a lot for us to be able to achieve that. We aren’t giving guidance because we just never really do.
But what I will say is the Board-approved plan is another, in our opinion material step change in revenue for the share. But to the earlier question as well, as we plan, it will have that continued seasonality as much as the way you guys and your analyst coverage have distributed our revenues historically.
Jack Vander Aarde: Okay. Great. Well again, congrats on the strong momentum. I will hop back in the queue. Thanks.
Ann Hand: Thanks, Jack.
Operator: Thank you. And we’ve reached the end of our question-and-answer session. I would like to turn the floor back over to Ann for any further comments.
Ann Hand: All right. Well, in closing, I would like to first just put a bit of a spotlight on my dear friend and longtime colleague, David Steigelfest. He is the Director and Co-Founder of Super League. When you look at the more focused product strategy that we have taken on over really the last 12 months and especially the last six, coupled with the recent sale of Minehut, it offers an opportunity for David to explore new endeavors that tap more deeply into platform expertise and entrepreneurial thirst. I will just say, very personally, ode to the last and in some ways, a few of the tears are maybe laughter with tears we’ve had as we took a company that was about e-sports events and movie theaters and found a business model that really — has been really been starting to work the last couple of years.
