--- categories: - "[[Meetings]]" type: [] date: 2026-05-06 org: loc: people: - "[[Darsh Shah]]" topics: [] granola_id: 30dcadcf-e20c-46f5-9566-e0d90656bb9c source: granola --- # Q2 bookings and enterprise deals review ## Notes ## Summary ### Q2 Financial Performance & Targets - Year-to-date bookings up 8% vs $73M last year - Game licensing up, game royalties up, tools up - Enterprise down slightly - Q2 target: Need $116M to stay on track for first half - Missed Q1 by $11M, so need $11M above the $105M target - Current pipeline shows $108M pacing with significant upside potential - April performance: $22M pacing, targeting $10-10.5M close - Includes $1.5M Tropico 06 Bandai settlement - About $1M from new titles (Win Rose, Far Far West) ### Major Q2 Deal Pipeline - mihoyo: $50M deal confirmed by CEO - Finance team aligned on Q2 timeline - Weekly updates scheduled, term sheet expected this week - Will flip Salesforce tracking from $10M to $50M once term sheet received - Warner Brothers: Daily conversations ongoing - $10M committed on signing, targeting $20-22M total with refresh - Modeling internally based on latest proposal - Counter expected with further rate decline (sub-1% net basis) - Take Two: Working to increase from current to $9M - Two titles under Gearbox deal (~$3M) - Proposed $5M for 1% on Mafia plus additional titles - Konami: Provided $20M counter to original $50M proposal - Step forward in royalty conversation - Realistic timeline for Q3 agreement ### Enterprise Deals & Partnerships - HMI deal progress: Qualcomm sent quote, MG terms agreed - Split into three years: $3.1M this year, $4.7M next two years - Seat deal reduced from $9M to just under $5M - SaaS partnership: $30-33M potential recognition - Depends on termination clause negotiations - Exclusive distribution rights for digital twin simulation in select regions/industries - Existing agreements excluded from exclusivity - New enterprise agreement ready for May 27 decoupling - Reality Scan and TwinMotion no longer bundled with engine - Order forms prepared for transition ### Royalty Performance & Compliance - March closed at $34M royalties (up 10% year-over-year) - Large contribution from Dispatch ($4.1M) - World of Tanks Blitz confirmed move to Unreal Engine - June 17 launch of “Tanks Blitz Reforged” - 1% gross royalty rate - Neverness to Everness tracking well - ~$100M Chinese yuan globally first week - High console royalty percentage expected - Dispatch 2 now in development, working on deal ### Enterprise Seat Growth & KPIs - 45% year-over-year growth in total active seats - Strong growth in low-touch offerings continuing - Self-service on track for $3.3M target for ecom purchases - Channel growth: Q1 up 165% ($733K vs $276K last year) - Signed 50-seat deal in India - Interviewing new distributors in Europe and Japan - Focus on partners with actual sales teams vs service orgs ### China Market Developments - Unity pricing issues creating conversion opportunities - Working with education team on dedicated workshops for high-potential prospects - Mobile OEM partnerships emerging: Xiaomi and Vivo signed NDAs - Want Samsung/Apple-style optimization deals - Goal: smoother flagship game performance on their devices - Animation Summit next week: 36 prospects invited - Half are existing game licensees - All major platforms attending - Government referrals for HMI clients (Expand example) - Unity pricing increased from $5 to $80 per car - Good opportunity for Kanzi partnership ### Mobile Strategy & Must-Succeed Projects - 87 nominees in must-succeed program (15 mobile) - Monthly refresh process, BD engaging 100% - Goal: 50% performance reviews completed in next 30 days - Zinga deal signed: Mobile shooter with Borderlands IP - Project Buzz (ARM/AMD mobile game): First mobile title using Megalights - Free release Q3, tech showcase for next ARM GPU - Live stream June 11, playable at Fest, launches September - TFT (Riot) in friends and family closed beta - $13M August target looking firm - Failed to pull revenue into Q2 but on track for Q3 ### AI/Merlin Initiative for M&E - James Cameron feedback: High-concept film costs prohibitively expensive - Building functional prototype for Fest demonstration - November release target for customer hands-on - Luma partnership discussions ongoing - Need API access for camera controls, frame adherence - Monetization through Fab tokens being planned - 5.8 will be strongest M&E release ever - Best animation tools on market (superior to Maya) - Performance capture in-engine - Messaging challenge: Need clarity on 5.8 vs 5.9 vs UE6 roadmap by May 24 Chat with meeting transcript: [https://notes.granola.ai/t/7ede6525-a30c-4079-beec-61d2eb3e5d62](https://notes.granola.ai/t/7ede6525-a30c-4079-beec-61d2eb3e5d62) Date: May 6 Meeting participants: Darsh Shah Transcript: Them: So this is a kind of a recap on year to day and then where Q2 is trending. On the left is the year to date. So all of Q1 actuals and then includes April pacing, which April is not fully closed yet. Close over the next week, but includes about 22 million of pacing. So from a kind of year over year trend perspective, game licensing is up, game royalties are up. Tools are up, enterprise is down slightly. So overall, year to day bookings pacing towards up 8% year over year versus $73 million last year. And then on Q2, I think that's where we should focus more of our my conversation on. So given I just talked about Jason, sorry. I only had two sips at my coffee yet. In the last meeting, we said we were down. We're behind, we, we, we had a Q1 mess. Yes. Yeah. But we're still ahead of last year. We're just missing. Yes, that's right. So like, you know, Q1, if you look at the bottom, right, we have the targets you guys had for the start of the year that built to the 370. So Q1 was 56. And then, you know, April is 22, there's some rounding and then it gets you to 79. Jason, just to be really clear on the left, it says Q1 26, but it's actually April here to date. Yes, I'm sorry. Didn't update it. Yes, that should be year to date. And that's my. Okay. So not, not too controversial. It's slightly higher. That threw me off. Got it. Yeah, that's my mistake. I know, I know. And then on the right, it's also, okay, there's some mislabeling on the x axis. So on the right, it's all queued too. It's a build towards Q2 on the right. So we just talked about 22 million in April. I'm pacing towards 108 million. So there's a lot of game adjusted game pipeline, you know, 46 million of adjusted game pipeline for the remainder of the quarter in Salesforce right now. Another forecast for, you know, for May and June of 21 million across royalties and game tools. And then moving on to enterprise, the 52 million line. That is what's representing the adjusted probability adjusted enterprise pipeline in Salesforce right now. I add all those things up and I hedge it back to where is finance kind of like the pacing is. To account for some risk. So there could be upside. If everything closes, but I'm going to get to one correct me if I'm wrong, we need to get to 116. In Q2 to be on track for first half. That's right. So, like, if you look at the bottom right, we missed Q1 by 11. So you need 11 above the 105. So 116. So I mean, you could get there, right? Like if my hedge was any less and like we executed and close on more of these adjusted pipeline deals, then we'll get ahead. I'm trying to be safe. But, you know, I'm trying to make the point that there is a large amount for two months, right? That's 100 million of games and enterprise deals. Okay. And, Dhame, maybe we could jump to the next page. Darsh and my team in help laid out, sorry, the previous page. The previous page. DP is not going well. Smooth sailing. Yeah. So I mean, this is the major Q2 deals to kind of talk through what we need to make that Q2 happen. There's a top deals. Like for games, it includes other enterprise. I'm literally just looking at two deals because they all drive the quarter. Happy to pass it to like the BD team here to add chime in on anything or build if you have any questions. Yeah. So what's missing in here, I would say, is the mihoyo deal, which is recently, I'm not sure if TIF is on the call, but like I can have handed over to her. But there's recent news on mihoyo, which, we might have been able to rope back into Q2 and that of $50 million rate. So the big deals here are really Warner Brothers that show should be at an incremental 10. And then you could talk about that more later. Plus like an additional deal on top of that. So there's amendments plus an additional deal and take two that could move to nine. So if you get Warner Brothers take two and the hoyo closed, we place ourselves ahead of the curve on Q2. What we're showing here is just from Salesforce, but yeah. Just to add to what Rocco said for WB bill, I think you know this 10 reflected, but we're shooting for more like 20 or 22 to get the new deal closed. And I think Rocco mentioned it. But there's a path on take two to getting it to more like. Nine. We're working on it. So there's some upside there. Okay. I see craigs on the call. But SAS, I've been talking to Matt Benson. We're, it's possible that like we recognize most of the 30, 33 million. Depends on the termination clause. Depends on termination. But as far as I know, I've seen like the unreal license is standalone and reality scans is not. Like other pieces not part of the same contract. Yes, but that was our legal doing that. They're going to come back and want to tie back. It's, it's, it's there. As of right now, there's a good chance that there's a termination. Clause. So, so I'll be back. Okay. Then that'll impact. It's day by day. They're trying to, they're trying to get to that point of not having a termination clause. I just, it's literally like every hour I get another round of questions. So, okay. You're right, Bill. Like we're trying to follow along with you, but not impede the progress you must be having on your side. But yeah, it will come down to how that overall deal is structured, whether it's on one piece or two piece or how those, if it's on two pieces, how they're connected. But yeah. Yep. Bill, did you float the Delphi deal to Andy Kleiman? Not yet. I'm still talking. Adam wanted to talk about the whole incentive structure, which I will talk to him about at 11. I tried three times yesterday. So cool working on it. Okay, maybe we can move on to the next page, Davin. Um, the short story, one, one thing I know, Craig, Craig's on the call. And I think you had a call with legal last night, but just on the mobus one, I think you and I will catch up on that tomorrow. But what I called out to you last week was like, you know, just making sure that if we're going along that mg track, we've got suitable paperwork and agreement between the parties that if it is an mg structure, it is essentially non-turnable, it's legally binding. And you're given the original Qualcomm. Deal didn't contemplate that. We just need to make sure that we have that because that is, I think, some risk that to call out, Bill, that I'm seeing at the moment. But doesn't mean it's not achievable, just I've called that out. Yeah, I talked to legal yesterday about it. And I think we came to an agreement, but we're still kind of going through it. Okay. Then I'll set, I'll send you the latest on the HMI ideal. What, what the Qualcomm quote, the Qualcomm sent the quote last night. Okay. So. This is the top deals page. It used to be just top five games and top five enterprise, but I've realized the game scope has increased dramatically over the last month and a lot of like larger deals have come through. Salesforce and inputted. So I'm trying to account for those here. What I would say is like, you know, my number, so going from left to right, we talked about this format a couple of times, but we have low medium max low end of things is just Salesforce with the probability adjustment. Medium is base sales force and high end is kind of like the discussions we possibly could get on the higher end. Pacing bookings is whatever I have in my model right now, you may or may not agree with. But what this is saying is, you know, if we. Close everything on Salesforce at, you know, the probability adjusted rates will be at 330. If we do the Salesforce rates and close everything. For these top deals, then we'll be closer to 400, 394. Right. And then the max is well over 400. Yeah. Okay. Okay. Four, we need four. Now I'm going to obsess over four. Great. I could talk about the left side slightly. Sorry, could you just go back to that last slide please where's. On 10. It's on five now. There it is. Yep. Okay. Yeah, we used to we were doing like 20 million before and now like it seems like it's just one title. Okay. Now we can talk about that in a moment. There's. Good slide at this point since we're talking for deals. Let's just talk about those deals. We could skip the left side. It's not by the way we should just use that last slide to talk about the deals instead of having another slide. Make a note for that for next month. We could come up with a new format. Okay. So Konami, the good news is that they provided a counter. We had gone to them with $50 million deal. They countered with 20 and they provided a series of options in terms of royalty rates that are definitely far away from our pricing. But I'd say it's a step forward in getting them onto the royalty conversation and the expectation is that like taka feels pretty good like moving for this conversation. We can get them to a point of agreement with us in Q3. So this one is starting to look feasible. And realistic around a $20 million mark. I'll hand it over to Lenny right now for riot. Yeah, I'll jump in on riot. So they're actually in friends and family. Closed beta on TFT. It's live and playable on UE, which is super cool. I think the good news there is it's, you know, full steam ahead for their launch on target, which means this 13 million in August is looking pretty firm. I think, you know, we try, we tried to find out if they were monetizing even just friends and family to pull the 13 into this quarter. We failed that. We failed at that attempt, but it was worth it. But we're, but we're on track for Q3. They're going to be on stage at fest. All good news here. Yeah, there's there isn't going to be an update till summer. Same as last time. So I'll, I'll hand over to Tiff. Tiff should be on the call, right? So we hoe you in crew. Yeah, I am. I'm here. Yeah. Sorry, I just client dinner. So I think like overall good news like the CEO for us. They already confirmed about the overall deal size, which is 50 million and also directionally like the deal structure design. So I think we're good, but like we did now kick off like a very lazy process. But their finance team is very on board with me on the timeline. They also would love to close it on Q2. So we're doing like weekly update to each other. They will come up, come back to us about the confirmed term sheet. Hopefully this week we could next and then we can kick off the legal process. So that's about mihoyo. Once you get that confirmed term sheet back, can you just flip the number in Salesforce from 10 to 50? So we're tracking it. Like at that point. That's what it is. And we're trying to close it. So. Which is awesome. Right. Work. All we just need to have the first like official kickoff meeting like next week. But they also mentioned about it. They just need some time to do some calculation internally. I probably have more update in the next updates. Yep. That's it for China. Hey, I'll jump back in on wb here. We're talking to them daily at this point in terms of the back and forth. We're still firm for them submitting 10 to 12 million in exhibits this quarter before their deal expires. And we are deep in conversations about the refresh getting done before the end of the quarter. We're aligned on that goal. 10 million is the on signing committed number. So that would bring this to 20 or 22. Um, they're modeling. Internally right now. Their numbers based on our last proposal. I got a little bit of a preview of their counter yesterday, which hasn't come in yet, but I think they're going to counter with a rate that declines one step further. Than what we've proposed. And part of that is because they're on this net basis and they want to see something that sub 1% And they're going to look for us to match on some of their Evo investments. And they're going to look to add tiers with lower fees for lower budget titles so they can get to, so they can make their per title p ls look better so they can get to low rates on small games. So we'll see when that comes in. The next Evo kind of design tech meeting is being scheduled now. We have a slack channel with them. We're talking about it. I actually have a question for you on this. Have we honed in on their what IP they think they want to focus on? No, we're going to talk about it in the next one. They've floated some things. I think they're gatekeeping a little bit here because they think we won't be as excited and they're going to lose a little bit of leverage. Um, that, you know, Jessica Martin said in slack yesterday that. From her perspective, it's like we should hold on wb for evo. She wants to wait till the paramount stuff closes. I just wanted to float that to you. That's not the tact that we're taking with them on this negotiation. Yeah, just keep pushing. Okay, great. 2k. So 2k, we're in an effort to try to raise the overall amount that comes in on q2. So they're going to submit two titles under the gearbox deal, which is an older deal that has buyouts, but it should bring in like close to 3 million when they submit those. And then we're looking to get it up to like five other titles on the multi title deal. We proposed 5 million for 1% on mafia. And then more like kind of guardrailsy 1 million 1.25 million for 2% on the other on the other titles there. They owe us a counter. They've got a VP who's out to memorial day. So we're going back and forth, but they understand we're going to have to close move quickly once he's back. Okay. A lot to like we deprecated from this list also because we hit the bot. The end of the slide. But, so Garina is there's currently we've been like having a tag team effort between Tony and Tiff to make sure that we communicate them and we portray that we're like one company and they can stop trying to play one with the other. Yeah. Play us one against the other. So maybe like Tony and Tiffy can jump in here. But my understanding from the recent communications with them is that on one side, Tony had a meeting in Singapore with them and proposed basically our current structure. We agreed upon which was too gain for at 1% for 20 million. Or I 1.5% for 10 million. 5 million each or 10 million dollars each. And they basically let us know that they only really have one game in development, which is a mo, which is the year which for which it wouldn't sign two deals. On the other side, TIF had met with JEX in China. Got the same information about. The amount of games they have in development. But but they there's the additional information that they might be interested in publishing more like internationally. So there's a potential for a line of credit deal there. So that's what we're trying to do. TIFF tone, is there anything else you want to add on this side? Not much. Not a lot. Not a lot. But like I do feel like they the title they're working on, which is a real title will be out this year. So they have a timeline. That they need to close this one. Yeah. Okay. So I think we're, that, that's the best news I think. And then they also are investing on some of the china prospect titles. So we will have relationship with them in one way or the other. And as I said in the slack channel, I'm talking tomorrow. I want to push for a deal for the mobile title. I have no idea what they're publishing model looks like. And I think if we do wait on that, we'll probably be waiting beyond this year. So let's give it a crack. So we'll go after 5 million now and then hopefully open a credit line deal like in tips conversation of checks seems to be the best way forward. Okay. Good. I'll take it this slide. So just a quick one on performance. So when we closed March, we close at just under 39, 34 million of royalties, which was up 10% from prior comparable period. We had a large contribution in March from dispatch. So that was great to see 4.1. And then for April month we are forecasted to land somewhere between 10, 10 and a half, which would be great. I would call out though that that does. Include a couple of one offs. So we've got 1.5 million for the Tropic 06, Bandai settlement, which we booked and we received the cash for. And about 1 million for a couple of new titles. So win rose and far, far west. So this is, I think, telling the story of the year so far, which is we're on track at roughly 11 million a month. But we're not seeing any like, like hero titles come out right now which are driving additional royalties. We're relying on the existing portfolio. Our accuracy of the accruals against that portfolio and a couple of one-off items bill. So that's where we are right now. If we do close April at 10, 10 and a half, we'll get to about 46 and a half, which brings you back to the target for the four months. Year. There are no significant open compliance. Cases I'm aware of that we are currently working on. Doesn't mean there aren't any, but like anything the size of tropico six is to my knowledge. And we did work with TIF and the China team to give some messaging back to the game science team where we've identified a compliance topic, but we're not actively pursuing it. And TIFF is picking up with the relationship there. And seeking to give them time to resolve it because it went withholding taxes. How is neverness to averness doing, TEF? But it's really the only big release. So I need a more, more update from them. But I think like their first data is about like 100 million in Chinese yuan globally, which is like last, I think last Thursday. So everything seems to be on track and they're training on like twitch. So we hope we can get a decent, but again, we only have like, you know, console roadies. So, but the percentage of road like roty revenue generated from console is pretty high. So I think we're we'll probably, we'll still get something from there. Okay. Good. Yeah. These other titles are all pretty much indie titles. Huh? Isn't so the com, the ones coming up are going to be decent. I guess. I would say it'd be one that I, I send it to marketing. I forgot to send it here. So world of tanks blitz has just confirmed they're moving to you, right? So they've been working on it for quite a while. There's actually quite a bit of risk at a certain point that they were going to stay on the old tech because they're having some issue that we helped them with. But they've announced a week ago that June 17, they are moving, they're launching to redesign their engine. Basically, where the tanks blitz reforged. And from that moment forward, we'll be getting royalties from them. Is it the 1% Yep. Is it a gross? I could be gross. It should be gross. Okay. And fun footnote dispatch 2 is now in development and we're working on a deal. To secure that one. Nice great game. Awesome. Cool. So I highlighted in green all the ones in Q2. Minus the 51 world one. Target. We actually got the signed order last night. So that was good. Snake is hopefully signing this week. We sent best and final to them last week. Boeing, which is a million dollar deal. We actually got the PO for, but we are working on getting the signed order form. Hopefully this week also. So that should be good. Tanzi, we are meeting with them on Friday. He wants to try and get this done by the end of May. So looking forward to getting, getting that one over the hop. And then the two, the big news on the 200 ones is on the HMI. We've a, we've agreed to the mg terms. Basically, there's going to be three, we kind of separated the mg into three separate years. And Qualcomm just sent the quote last night. So this one still looking good for this year. We would only revrec 3.1 million, but then we'd also have a 4.7 next year and a 4.7 year after. So we kind of just separated the mg out into three years. And then we've also agreed on the seat deal ended up instead of 9 million. We had to come under 5 million. So it's just slightly under 5 million. Uh, but this license is getting drawn up and sent over and then the SAS one is, in the works also. So here too shaping up to be pretty good. There are some, you know, additional ones out there that are still good. Bentley slipped to Q3. Uh, they decided not to ship in Q2, so that one shipped to Q3. Um, Tiff, I don't know if you, got an update on 51 world, but that's the one other one. Yeah, they're, they're like, what we propose like 250k for three years with them. They set their budget currently is 150k. So I told them like we will either go with the, you know, fixture, like kind of like licensing deal or we will go royalties. So they will go back and do the calculations. I think like it's a, maybe eventually like crack, you can jump on a call with me with their CEO and then we can just like negotiate the rationale on this. I did my full calculation based on, based on their earnings. So I'm very confident about like my offer should be the best they can get if with all like going on the road. Okay. Did you confirm that China is not on the exclusive region list for SaaS? I did not, I did flag that we had some existing OEMs. In there, but I will double check on that. We need to confirm today on that one. Okay. I'll confirm that. But overall, you know, Q2 shipping out to be best scanned it. I scanned it and didn't see it, but we got a triple check urgently. Yep. Okay. Sorry, you're saying this is the best quarter we've had. Yeah, this was, this is shipping up to be, you know, one of our better quarters outside of this. There's an additional somewhere around 20 million in small deals. So there's a bunch of 200, 300k deals that are still in the pipeline for this quarter. So, you know, add all of that up plus these bigger deals. And, you know, if you look at the pipeline, it says 51.9 million, which, you know, last year we only did 44 million total. So we're shaping up to be pretty good. There's also some upside on like Google one too. Okay quick question. Are we at the point now where do we have a new enterprise agreement that. Does not, that reflects the fact that we're not bundling reality scan and twin motion with the engine? Yep, we already have the drafts ready. I think, I think we're going to, I don't know if we're talking about that in this meeting, but, looking to go live May 27 for the decoupling. So everything's on track. We already have the order forms kind of ready as soon as we start. So these deals will all include it, or at least the target one does the bowling one does. And so we'll, we'll make sure that we'll cut over rate on the on the day of the decouple. Okay. I mean, we don't need to, we can cut over now. Right, for custom agreements. So there's a problem that we actually don't have an entitlement. In the system to actually just grant unreal. So then we'd be granting something with an entitlement that they haven't legally signed for. So that, that's kind of the issue right now, which is why we can't do it early. Unfortunately. But hopefully, I'm hoping that we can get that entitlement, you know, figure it out here in the next week or so. Okay. I was typing nasty asking about exclusivity in SAS. It's basically like they have the exclusive right to distribute the editor. With, for digital twin simulation. Use cases in select industries and select regions geographies. So manufacturing, government defense. Health sciences, like medical sciences and worker safety, I believe are the industries. Okay. And it's a pretty restrictive on regions. Bill, I actually, I actually know the answer to this. The way that we wrote this in the contract was any existing agreements are excluded from the exclusivity. So we can't sign any new deals in China. But any existing ones would, would hold up. Is the way that we wrote it in. Sorry. But they haven't responded to that yet. They have not responded to that. That, that just went out. So, Stacy, we did a scan. And there's only. Like two companies globally. I think perfect world is one. And then there's one at the pipeline. So generally everyone's building a lot of applications for that. Use case, but they're just using the editor runtime using the engine at runtime. They're not shipping and distributing software with a version of the editor. Which is what duality is doing. And SAS is buying duality. So it's really. So basically they have exclusive. Exclusive resell in specific regions for specific use cases. Yeah. Specifically for distribution of the editor. Yeah. Simulation. Distribution of the editor. Yep. License. So it's like, okay. Okay. So moving on. Sorry. So we're essentially, we're essentially outsourcing. Digital twin simulation. And we're outsourcing hml. Here. With key partners. Hmi being kanzi. Me: Well. Them: Bill. Me: We certainly have. Them: Yep, I'm sure. Okay. Thanks, Greg. Good job. All right. So looking at steady growth continuing in enterprise seats. So a rebuilt how this was captured so that we had a better historical model. So when you look at these KPI cards here, the top is month over month, the versus previous and the bottom is year over year. So we're tracking around 45% year over year growth right now in total active seats. And then you can see the breakdown for product, which I imagine this will collapse over time once those initiatives are done and then the bottom is purchase method. Me: Been. Told. Them: The same breakdown. I love these KPI cards. Thank you. Thank you. It's pretty, pretty snazzy. Pretty snazzy view here, I think. And then in the next slide, we'll also have a breakdown for region. And industry as well. Me: Oh what are you playing here for now? Them: So the big story here is just continuing large growth in our low touch offerings. Me: Starting. Them: Which. Is a trend that Laura will talk more on as well later in the kbos. Awesome. Me: Yeah. Them: So just, I'll pause here for just a second on our region. Yeah. Yeah. There's one year. I think the numbers are small. For India, China and Korea, but the growth is obviously there as well. One thing I will call out is I am using an algorithmic estimate for anything that was a company wide deal on unlimited seats. So I do want to be specific about that. If that doesn't align to any specific BD's view for their region. Okay. Anything jumping out here? Just the reds are, I guess, M&E. Down, but more, but barely. Me: 5. Them: Basically flat. Yeah. Yeah. All right. I'm not going to complain about these, but I, I would like the next level of understanding is new versus new versus renewal. Yeah. Yeah, we'll fold that in. And I have that breakdown fully in Tableau as well. So we'll surface that. And the last thing I do want to call out is that there's no industry tie in for anything that's self service right now. So all of that is grouped in other in the very bottom right. And yeah, if we could order these in terms of looks like they're alphabetical, but highest to lowest would be easy to look into. Yeah, for sure. Me: 2. Them: Cool. Me: I got. Like. Eight swinging forward. Them: Digging into really sticks out is the, sorry, when more is like Japan. Being so low. On active seats. Yet the volume of deals that I have to docu sign or used to have to doc sign is sky high. Okay. Can I ask a quick delayed question? I missed my moment, but I don't want, I don't want it to pass by completely on kanzi. And let's see, the other one, what is the, is there like a support understand with those? Are they just selling but nothing changes on the support side? Is there anything different on the support side? Craig can speak to kanzi. But for sass. We are just supporting them. Like we're supporting them. With sa resources to help with their, you know, strategy and technical implementation of that strategy. Yeah, we're going to need like tactical account. Management. Just to stay on top of it. But. That's it. I think it was pretty, we tried to keep it high level and just basically say, hey, we're going to. You guys are our partner. We're going to support your efforts. And we're not going to do any custom development or anything like that, but we're certainly show you the way. Okay. And they'll provide support when they sell, but we'll support them as they need it. Yeah. Okay. And then what about kanji first? The best way to think about it, it's their solution is duality. And we haven't really had to do anything at all to support duality. So the good news is like they're acquiring a team that has a mature product that's been in market with customers. And has a team of ue devs. Coming with. So that. Yeah. So we kind of already know what the support patterns are at a baseline. Me: Like right now. Them: And hopefully they scale the adoption pretty dramatically. Okay, cool. I just want to make sure I understood. Thank you. And kanji will be similar with jaw andreessen on the sa team kind of helping kanzi get, get up and running. Clonzi is also looking at hiring some of the ex people. So there could, there's an opportunity hopefully to get some support resources from x epic into kanzi. Me: Waiting for them to get. The argument. Them: Also. Which would be good for us. Wow. And digital twin and simulation also has passed mne. Yeah, based on the new industry breakdowns. Yeah. Yeah. However, ebony growth rate is higher over last year. Okay. That's because digital twin and sim had a big year two years ago. You remember, and they, they signed some big seat deals, you know, that they had three, three deals over a million dollars. Accounted for a significant portion of those seats. Yep. Okay. The digital twin and sim also is a combination of AEC. So all the AC seats, all the simulation seats and all the fashion retail CPG. And we group technology in there also, which is like Nvidia and some of those. Into that category also. Okay. Yeah. Calling out self service specifically here. I think the big story is that we're on track for our 3.3 million target for ecom purchases. Still continuously looking at churn for q2 specifically as this will be the second year of renewals. So seeing if we're at a good clip there, we can see that there was a little bit of an increase in in churn rate for ue and twinmotion. With that being the case this month. So we need to see if that's going to be a trend or is that a one off for just late April? Because we didn't even get a full month of april in the original launch. And renewals continue to exceed new seed deals as well. Looks like new. T. I guess the new seed deals declining. Yeah, that is. Because I think the renewal, like a little bit of saturation there with companies that are now in multi year renewals versus us acquiring new business through self service. For the next biz review, we'll also do a churn, a churn summary like we've been doing. We typically do them quarterly. So for the next bus review, we'll plan on digging into the churn a little bit more and we'll, we'll figure out what happened with the churn. Typically, even though the churn is ticking up, historically what we've seen is that's either because they either signed the deal with us so they didn't really churn. It's just kind of different types of terms. So we'll, we'll kind of cross that in the next biz review meeting. Yeah. And then the channel growth. April sales were a little down. But as you can see, the year over year growth is still strong. If you look at q1 last year, we were at 276k. This year q1 came in at 733 case, so up 165% So really, really good. Everything that we were doing was the right things, you know, on the, on the channel. We just have to kind of continue to do it and continue to find new ones. The number of seats also kind of grew. So, you know, still seeing, you know, we actually signed a big 50 seat deal last night with the channel also. So in India. So again seeing those deal sizes also grow, which is, which is good. We're, we're trying to feed the channel a little bit more to kind of pick them up a little bit. And that seems to be working. And you can see it in the revenue that we're growing the revenue of the channel. We're starting to interview some new distributors. So looking at future group, I have a call with them tomorrow. They're in europe and they're a good option. They have a bunch of resellers under them. We're also the Japan team is also looking at either a new reseller and distributor in their area. And so again focus, we're trying to focus at the distributors and resellers that have sales teams. I think that's one of the things that, you know, previously we're signing up criteria thinking someone has sell your shit. I think, I think that's one thing that we previously maybe didn't evaluate was that, you know, how many sales guys they actually have. And I think if you look at some of the people in the list, they're not really, they don't have a sales team. They're really just like service orgs or something like that. Really have a sales team. So try and focus. It's just like it's reactive. Like, hey, you need a transaction done in region. We'll facilitate for you, but you got to come to us. Yeah. Okay. Yeah. So I think the focus there is to try and find new ones. I say the good news is that we got the BD team kind of behind this and the beauty team is out there. Trying to also find resellers for us. And they know the markets. And so, you know, I think the reliance on making sure that we have the right distributors or resellers in the regions, they can actually go out and sell the product. And then we're also working on automating the order to delivery for 100% of the new deals and renewals. So right now there's still some manual steps that happen in between taking in order when they process the order on the website to actually sending them a DocuSign to sign up working on automating that thing from end to end with Laura's team. And, you know, I'm hopeful that, you know, we'll, we'll get something there going in the next month or two. But overall channel, you know, I'm still definitely, you know, spending a lot of time trying to get the channel up. I think, you know, the effort that we've put in this last year with, with Rob, I think it's paid off and we just need to kind of continue to grow it. I mean, our channel should be selling over a million dollars a month. To be an actual reputable channel. So we, we still have a long ways to go. But overall we're doing the starting points. Okay, great. Cool. So switching over to our kpis, slightly different format for these moving forward. So can I interrupt that? Are we going to look at the mau numbers? For ue? I do not believe that they're in this month's presentation. Can, can anyone. Give a tldr on that? If no one is on that can, I'll sync with nick after this and at least get you a follow up. Okay. Sorry, we should always include that going forward. Sounds good. So we have a slightly new format for the kpis structured by an overview slide first that we can maybe highlight this, this meeting, but not, not spend a ton of time on and let's have the meat at the time on the update and sort of taking our last 30 days next 30 days view at each of these. Also of note, we shifted out the initiative as just something that everyone should be focusing on and doing and added in protect m&e. And so I think Craig will give an overview of early days of that as we build that out in the future. Me: That's obviously new. Them: So kicking off with Grana with tiff. Sure, I'll keep it quick because there's all the details here. This slide is like something we design is more about more or less about like what's our new kind of like go and the logo looks like. I think this is like not supposed to be new. It should be something like delivered when we kind of complete planning. So I won't go into like a ton of details here. I think the next slide is some probably something that can spend more time with. I guess, yeah, I mean, you know what I'm, you probably know what I'm going to say on enterprise market penetration. It's like it's less of a less of a priority. Yeah. Probably what mainly focus on in these. So there might be some changes on the prioritization on the d levels. Yeah. So next slide. Right. So like, I think we, so the each kbi for each items will be focusing on like what we are trying to close by deal. So like try to achieve like the revenue side of things and also like the initiatives we're running. So I'm going to quickly mention like for the past month we close some of these deal that's supposed to be closing q1, which is like have element perfect word, the final spark lumitopia, which is about like a 7.1 million total. And then actually in comparison like this month we hope we can close the remaining a couple of deals. But with the biggest ones apparently like mihoyo there. I listed these deals by status. So like those are realized pretty much close to be signed. Those are on term sheet is like, you know, kind of like we just started. And then mihoyo is like we are pre term sheet. So but like the overall scope and alignment has been has been discussed. So it should be aligned. And then for another focus for our satellite because I guess everybody know about like uni-china policies. They actually have. Very terrible kind of like pricing kind of like strategy in china for not only games, but also hmi. So we got a lot of prospects. From like unity to try to do like a real conversions. So currently we're sorry to like a real no like PE. But what we're trying to proprietary entry. Sorry, we're trying to, we're trying to work with the education team to design a dedicated workshop format with education partners for these high potential prospects because each of them will bring like pretty significant revenue from kind of bringing their overall portfolio or kind of like their studio tag for real. So that's a big focus actually with whole plot. We can deliver at least like have a plan or confirm kind of like strategy within this month. We already discussed. We also are kind of like working not like in the best efficiencies kind of fashion, but we're trying to slowly finish the EGS transition because there are a lot of publisher who are not probably on a real titles, but they are like decent kind of like publisher would need to kind of get them on board and finish kind of like a content acquisition from them. So these are slow efforts we're doing for the part of it. The two initiatives we're doing from the marketing or event perspective is like we're going to have the CIGDI, which is a government led epic run kind of events. We hope kind of like we will get more government official support by having such a high impact event like that during the trying to join. And we also like and as team will run a special version of like DAV day doing china joy and we hope probably can host like 200 licensee and the prospects. Me: 90% of. Them. Them: By giving them a kind of like go through of 5a and or like the major kind of like feature go through tackled through all with them. So that was what we have been planned for last last month. Yeah this small fighting already mentioned that we will try to major thing is like we were trying to wrap up all this event where or like continue to deliver this preparation for these events, but also like really focusing on closing all these deals in the pipeline. We also want to just like this is new format I want to raise it but probably don't we don't have answer is like there are top global mobile OEMs have been signing like NDA deal with us. So xiaomi and vivo, they really want to have something we have we have done for Samsung. Or apple. So there could potentially could be, I would say like a license or I don't know like form of like tag. Tax solution deal with them where still like having a very early stage with them. But their goal is like they know all the big future upcoming flagship title will be unreal. They want to have a way to work with us to make sure these top games can be run more smoothly on their flagship titles flagship like models. So we are still like actually Stacy has a great idea but like we're trying to figure out like how we can kind of like get some of the deal done with them. But this is something probably would bring up like talk to like Bill and rock all more. So that's like some bubble EM motion here. Okay. Billion happy comments. I mean the only comment is talk to David. In legal. About what we can and can't do with those guys. These guys are fine like as long as they're not Huawei. Right xiaomi is fine. It's fine yeah both are top OEM distributor. They actually have much bigger like distribution. We just found out that Unity is charging the platforms. Nintendo Xbox everyone these big platform fees state thanks Stacy for that Intel. But so I think like to the extent that we can actually support. We can actually support them. With a platform engineering team being like aware. But not taxed too heavily. I think that's the other group to bring in here. Then like we should try and take some some royalty from them. Side tacker confirmed that there is like an agreement for 200 engineers at unity support Nintendo and they get royalties. They don't we don't notice the amount of realtors but basically off of the 200 is that true. That's that's what I don't think. They have 200 engineer 200 engineers would be like a large percentage of the core engineering there's not 200 engine pretty much dedicated their whole engine team to Nintendo. But there is a commitment from the engine side and there is a small royalty rate on unidentified amount on seem to be specifically for indie titles for independent developers. Probably not that big. Yeah let's see it let's see if we can get something from them I do feel like they want a global exposure and also like not just from china but we're like our global kind of like endorsement about like their top title can wear on their mobile well. So I think there's some there's a lot of room we can discuss with these two both NDA as Valerie Dawn so that's a great news because I don't wanna like it's never gonna have any for the next stage so we finish for like almost a quarter but it's now moving to like the deal negotiation stage. We have something similar requests for all like media tech and also I think AMD but like these are too early to have more motion there so we'll keep everybody posted. Me: Actually. Them: So for enterprise side I think like our focus is already I think Shah is like with what we want to focus on MNE so the animation summit which will happen next week it will be a kind of like big starting point we have invited about like 36 prospects mostly half of the prospects for how have the game licensees to this event and also like all the top. Platforms will be there so they are actually more or less like they're the one that will decide which IP will be sent will be produced by which like studios in this in the in the whole like industry change so all of them are showing up and then we'll we will kind of like get more strategy relationship with them and see how we can partner with them. Me: Yeah. Them: And then there are some government referrals on some of the HMI top clients so expand is one of them and then I told like the hourly will spend my calorie on like the big big ones and then this one including our service provider believe like could be a big one because they started working with uni was five dollar per car deal and now it's become 80 per car so like expand can no longer stand up with this race with the unity that's why they are really they will really want to talk to us I will probably plan something just like to be there but the service partner will be the one mainly deliver the work and finish the negotiation. Me: Yeah. Them: This will be a good one for for kanzi because kanzi is pretty pretty good in China and most of the most of the oems that went to unity are actually going back to kanzi but if we can insert ourselves there so this will be a good one. Sounds good. Yeah it's a they also like not only Qualcomm so they have amd chip as well. Media MTK MTK chip as well so for for the pipeline I do feel like the what I listed here the animation studio pipeline they are very promising they already kind of like align with us on they either will purchase seats with us and then like the good thing is like. You can see at least like six five of them or actually all of them are going to make a game so it's a great prospect like they started with working on animation shows or movies and eventually they will they will produce the game. So so it's a it's a great kind of transmedia trends here in china. For for you know the others like modify link shu and then file monies are small kind of like inter like other enterprise like deals that we're currently working on hopefully we can close it like within this quarter. I have a quick question for crag and bill what what's your thought on the enterprise deal for tensit because with the new mega deal two kicks in like regardless they need the enterprise side of business is separate from. The mega deal one which is a little bit vague on like if it's if it if it is including like the enterprise side of business or not but this one md two is definitely not including so I would just like throw it out there see if you guys want to have any thoughts on like how much we should charge them they will be on they will be joining the animation submit and expecting us to talk to them for like first conversation. I don't want to speak for bill but I mean on my side like I'm okay either way but it is it is there's a sticking point right now where they submitted some enterprise apps and we kind of said no to them and so we kind of need to make a decision here we're either going to charge them for seats or come up with an unlimited CTL that's part of the agreement or kind of need to figure out what what the plan is. Me: What is your. Them: What were the enterprise apps? One of them was like education one I think where they were giving it away for free and so they technically should be paying seats maybe for it because there's not generated revenue generating so like it's kind of one of those like weird ones where they also have a virtual production application that they have built that again. No not virtual production for 10 cents for 10 yeah they have VP they have VR they have XR and so they actually monetize everywhere right like they also doing internal studio like advertisement and also they're doing the use of VP studio for major kind of like you know car automotive like summit or automotive kind of like commercials so they're getting revenue with our technology they're not licensing the tech. They're not licensed in tap per se it's like they're monetized on our tech by providing I assume that if you're using the money the engine you're making money somehow but if if they're not like licensing it and using it run correct it's on a royalty I've already said this to you guys like come up with a site licensing deal that you know similar to what we did was was Sony but you know we need to somehow get some understanding of how many users they have across the organization, which I know is like they're just going to have to be honest with us. I just come up with a number. Okay we'll eventually probably studio not needs to talk to TM but like we will will talk to the studio that come over to the summit first and see how things are. Me: Answer. Them: I think like for okay the last the next three days will be quick like for marketing I think like jha has a really undertaking a lot of work and then all the project like we listed here above are something like kind of run by him so hopefully we can get him to contract like hired within this month so he can have more capability like doing more like a bigger picture planning so we also know like what we'll be working out for for each quarter what is our priorities by you know each industry so that's the current kind of like marketing status I think like that for the next one I'll do hope he can join so he can update his own bucket the partner ecosystem done something I think I'm waiting for like I talked to crack I think like that's something probably we will take we'll take time like we need to really figure out like what is the best strategy there I want to mention one thing where we really feel like it's very necessary is like there are still a lot of legacy service partner claim they are like licensed the service partner with you affect China we really need to kind of like turn this around so the thought thinking here is that probably something when you discuss with data as well as like we need to really establish this program from zero so we're going to tell everybody there is a new program coming out and then we're welcome every applicant who are willing to become our partners in one way one format and the other and then we will go through like these process and then finally say like now this is our first batch so we will make sure the clients will forget will forget all these like legacy partners we have signed especially like the real link it's like it's not doing great there I already shared this with bill and crack is like I think their employees are have a lot of have a have a lot of spreading a lot of negative comments on what we are doing for our our service which is not healthy at all so we we need to use this reestablishment of the program to turn things around. So that that will be the key goal here and then something like we'll work with the marketing team like Dana Stacy on this as well. Yeah, so there's a team I think all good like Claudia joined last month and then like I'm gradually kind of like move all these eastern China deal clients to her and have taking all the northern China deals we'll finish the transition within this month. Because that's it for China. What's the tech support team restructuring line? It's a it is wait which which part it's the last line. Yeah we we wanted to basically you make sure every TDR team have their own kind of like become a subject matter expert expert so that's something like Liu and I are having talking about because also one hour licensee to feel like we are not only generous like Liu could be the generous in the team but each of the I would say like TDR will have their own role as SME for the topic and also that will give us more clarity on what kind of like topics we're not good at honestly right now we're not good at like physics chaos so and that's that's the only one where like which is great so every time we're gonna have any speech or anything we know like who we should who we can throw in as sme so that was the thing where I discuss about okay makes sense I like it. Yep cool. Awesome thanks to good job. Thank you. Next. Lenny yeah I'll jump in on mobile here I am gonna take a minute to talk through the overview slide with with reorgs with clarity around 5 8 road to six with increasing capabilities around megabase there's like some rethinking reframing here so I feel like it's just worth revisiting the overview so overview establish UE is the as the engine of choice for mobile studios and the way we're doing that is driving adoption supporting conversion showcasing influential projects and then this last piece is somewhat new here like focus on AAA and live service and grow towards ue6 so like a way to think about this is kind of like a reverse funnel like our most important projects kind of growing down to like the mobile developer community sort of writ large and then also sort of shorter term to longer term so that's delivering against must succeed projects focusing on closing deals with mobile studios driving revenue engaging with more mobile studios and then longer term like that engagement is really focused on qualified studios and I'll say a little bit more about that as we walk through this but then longer term it's about kind of shifting unqualified to qualified whether that's hardware getting better I mean a big part of that's obviously on the product side so muskete projects were really like growing the muscle here around my succeed it goes beyond mobile obviously but the initial focus has really been around mobile must succeeds so BD hard at work at identifying those we do have a monthly must succeed refresh process where like I said we're still kind of growing that muscle but we're getting better at it I think we have 87 nominees right now some from every territory I think there's maybe 15 of them are mobile so we're adding them kind of regularly and then monthly world will be like approving them and adding them to the list or or taking them off the list when we think about must succeed there's also like the quality of the deals the the main thing to say there is like royalty deals they're strategic so there's like levers to pull you know special kind of mobile exceptions that we've made but protecting royalties there is critical for must succeeds the goal for tdr is engage with 100% of them we're meeting with Aaron right after this he actually has the list as of today that'll tell us how many were already engaged with and I'll get to the in the last 30 next 30 kind of the shorter term goals there but the the goal is to do a perf review with a hundred percent of the mobile must succeeds and then on must succeeds is steady cadence of like showcases for the for the ones that actually ship. So then the this kind of middle of the funnel engaging qualified mobile developers growing the number of qualified accounts right like we can't just set the mobile targets and then and then sit there turning that into money so Davin and I have been working on getting an actual mobile pipeline view it's a little bit harder than you might think like to see how much revenue is in the pipeline against mobile titles I've got that in the next 30 so we're trying to get there the initial stab Davin took which was great was like 60 something million I don't think that's right I think a lot of the trouble they're david I don't know if you want to say more but it's around teasing out. Mobile games from multi title deals exactly it's a manual it's it's manual but we'll but we'll get there and then as we grow the number of qualified accounts maintaining the 90% engaged rate I think so we've built some really cool functionality in megabase I don't know if you've seen it yet Bill I'm tempted to have can you click on that on the key link there the engagement tracking? So the data is not right yet oh that's not gonna work yeah that's not gonna flow okay I'll talk through it and then if you could stand it up and if someone or if someone wants to stand it up and we can jump back to it basically we've changed the way we're tracking engage status in megabase build do you know about this like the timeliness around it? No so the engagement previously was like binary it was like either we're engaged with an account or not and I think that's the way you wanted to see it when we originally stood up Mega base we've now built logic into it which basically times things out so it will show engage status by engaged in the last month and if the BD doesn't refresh it engaged in the last quarter. Engaged in the last year. Or engaged which is really almost not engaged if it's over the year and then of course we have a non engaged status we have not rolled that out to the beadies yet so the data isn't there yet but the dashboard is live and we actually have a mobile specific dashboard for for engagement with mobile studio so we can like track the regular cadence there and then longer term shifting that BD reports tab okay it's in here you know what I'll go to it and tell you it is in bde geo heads I don't know if you have that one bill. I can I can throw the I don't okay I'll throw the link into this chat again the data isn't refreshed yet because BD hasn't gone in and flipped those everything defaulted to I believe engaged within the last year anything that was engaged just engaged within the last year but you'll see how it can like will show the trend over time. I had to request access okay anyway it's really cool I promise and again I think like the timeliness of the engage it's like something rock when I talked a lot about like the best way to reflect it and I think it's really cool that we'll now see like within the last month within the last quarter. Because with a lot of accounts like within the last quarter is totally fine. But with some like we're going to want to know that it was within the last month or fresher than that and then again like longer term there's the effort around shifting the way I think about it shifting unqualified to qualify. So what that means is like. Right now we're basically counting the mass mobile market as not qualified because isn't really a product for them over time that will shift. There are things we can do now around marketing and, and kind of engaging with the community mobile dev days, hearing feedback from non UE devs. But that's that's sort of the longer term part of the effort. The other thing I want to say before I. Forget it is in terms of revenue and this kind of middle thing, engaged qualified developers versus unqualified to qualified Jason and Darsh did some interesting work around the mobile opportunity and actually like. A lot of the revenue, at least intuitively feels like it's not a longer term like we have to wait till UE 6 and we can target the mass mobile market. A lot of the revenue opportunity is AAA and live service. And so, you know, even though the raw numbers in terms of qualified mobile devs might be small like converting or signing royalty deals with just a few of those like between now and you know call it 2030 can have a really meaningful look at it says there's 350 mobile projects and 349 were not engaged on. Exactly. I told you the date it wasn't there yet. Okay. Okay. But the logic is now built in so we'll roll it out to BDs and then they will go in and update the engage time frame. And then so next time you see this it should be it should be accurate. Okay. This goes beyond mobile but it does there is there an easy place for us to to get a snapshot of the number of unity to unreal projects that we're tracking and how that's growing or shrinking over time. We have. Yeah probably we'd have to create a dashboard dashboard in megabase. We could take a note to do that. We've got, I think it's kind of a key. It's a real key. Data point like for us to understand what's happening in the market. Are we picking up momentum? Are people fleeing from unity? Like we really hard have historically had a hard time. Like having any real data to communicate that. To them. And like the mega base is the first stab at actually getting there. So I'm assuming that the data is going to be compelling just based anecdotally. But. Yeah just yeah I think we have a lot of the data. To do so maybe not industry wide, but certainly a snapshot now that we're tracking even non UE accounts and we're tracking conversions. So let us take a stab at that and again I think like. A lot of the I understand why that's an interesting point and especially longer term shorter term I think the raw numbers are maybe smaller. But there's a real revenue opportunity in just a few key conversions. And like Jason I don't know if you want to jump in on like Rocco and I were talking about it yesterday that sort of like that work you and Darsh did around the bulk of the mobile opportunity being really in like the few live service AAA games like we don't have to dive into it now. I know I'm putting you on the spot but if you want to jump in. Yeah, I mean. What I would chime in with is just. It's about increasing it's about increasing market share. That's the hard part right like and then like landing the royalties on that and like where we are targeting is really the top 100. And it's few of the key big ones we're not really targeting like anything in like the thousands rank in terms of revenue. So yeah. Okay. Next slide last 30 next 30 a lot of this we've touched on already but but worth calling out and some of the must succeed actually impacts the unqualified qualified because they're sort of halo type projects. The zinga deal signed. That's that's going to be a big mobile shooter with with the borderlands IP. We've been kind of restructuring with Anna's team, the mobile must succeed engagement plan and TDR has begun outreach for performance reviews with with all of the mobile must succeeds will get an update today on how many are left. To engage with. But the goal is 50% at least within within the next 30 days to everness. We already talked about it, but we did our own spotlight on it, the game release tanks blitz reforged announced. The ocean horn three last time I checked it was an up yet but that spotlight's going live today tank splits launches in the next 30 days. That's it for the must succeeds qualified mobile devs I talked about the dashboard for qualified engagement. We got to roll out that engagement tracking to BD globally. And then I mentioned already David and I are working on the actual like the revenue in the pipeline against mobile titles. Yeah, halo events for shifting unqualified to qualified. And then these bigger picture things five eight mobile summary. I know is coming five eight shipping the TFT showcase at Fest is going to be huge. For mobile. Project buzz which I don't know if anyone on I've been chasing more information on it does anyone on the call want to share about this? This is the sumo amd mobile game that we're going to talk about at fast. Sure I don't know if we're going to talk about it at fest, but we are planning to have them on the inside at real a couple days before. So project buzz is a mobile game. Bill. This is the one that you saw at fest with arm meeting it's the first mobile title to use mega lights. ARM is essentially acting as the publisher. They plan to release the game in Q3 for free for free no monetization. But essentially using this game as a tech showcase to launch the next arm GPU. What date is that? In terms of their release date? Yeah. Not sure they're just saying I think September yeah I've got announcing June 10th. We're going to do a live stream with them on 11th we'll have it playable at fast and the game launches in September. And again like Dana I don't I couldn't even find out the name of the game or anything when I was poking around. I don't know if you know they decided Buzz is the code name. And and I think there's still a chance that they won't have it playable at fest okay we're trying to lock that in for sure we're holding a space. But but we'll definitely have the live stream and be a part of their entire marketing campaign. Cool and I know the mobile sizzle is coming together for for Fest as well. That's right. Thanks, Sonny. Protect M and E craig. You want to take this one? I think I'm actually going to pass the Duncan but this is a new kbi and so I think you know we can start with Duncan and some of the work that he's doing and then yeah we can talk bill. I think we should talk about you know what what should our targets be? What are some of the goals? But yeah, I'll pass it off to Duncan first to kind of talk through this. Hey Bo. Kin I think we spoke about this before that you know I think what we're seeing is the M&E industry is obviously going through challenging time right now with work and layoffs of their own and industry you know downturn and so forth. So they're really looking for what is the next generation of tools and trying to find ways to to reduce costs. I mean we gave a presentation to James Cameron recently and I mean he he said it directly to his team you know the cost of doing these high concept fantasy science fiction films TV series is just so becoming so prohibitively expensive. You know it's sort of met met the air the level at which you can guarantee any return from box office right so we've got to do something as an industry to lower that cost and so I think seen as that that means to do so across, you know, the range of different areas in production. And so I see this as a huge sort of potential area for us like everyone everyone is is experimenting with diffusion models whether whether they admit to it or not. But trying to figure out how to gain you know the control mechanisms mechanisms they need to really drive creative intent that's the real struggle right now is you can't get you can't ask a filmmaker like James Cameron to sit behind a text prompt and come up with a film right it's just never going to happen. And so we're trying to like obviously focus on all the power of the tools that we have within the engine and how do we incorporate diffusion into that workflow to, you know, put the engine and the driving seat essentially. And I think we're seeing you know through research and testing we've been doing some pretty pretty great success. I mean you know a lot of it depends on the output of the model obviously and I think there's a lot of growth and work to be done there hopefully with our participation. But I think you know the thing I keep saying to everybody is this is the worst that's ever going to be. And so you know as we start to see this technology you know adapt and have more controllability to it. I honestly think it puts us in the engine in a very advantageous position. I even pitched to some industry friends recently. You know future VFX animation studios could be a mix of blender unreal and nuke and they all nodded and said yeah we'll drop we'll drop my tomorrow if we had that opportunity. So I honestly feel I know the titles protected many. I actually think you know I think psychologically I think maybe we should think about even growing it because I actually really firmly believe like things that we have been focusing on those small animation studios those YouTube type makers they're all heading to AI, right? Like ICB VR have been one of our biggest champions for years. They just launched their own toolings and they're using elements from the engine but they're not driving it from the engine. If I have a call with them tomorrow on Friday rather to go over what we're building to sit to try and basically bring them back and say look you can actually do this better directly from unreal. So I see this you know this real pivotal moment. I think we've got a moment in time to really land this and sort of foster that adoption and be seen have the engine seen a slightly different way. And I think you know when we've got the support of the community in gym and others behind us I think that's good. I think that I think it's going to be a very good strong wins for us. I just think we need to just seize the moment. So this is really the emphasis on trying to put that I presented to seven. Our team recently which is that we have that opportunity. If we do nothing others will open the door. I mean I've said to Seb and others you know early on if we don't release something this year the no one's dead in ue6 right we've got an opportunity to get ahead of this. And really position ourselves. But we can't wait for ue6 because that's just too far along. So that's kind of what we're focusing on. You know as I put this timeline together now we're we're actively building a functional prototype. We're going to showcase that to our tab attendees at first. We're actually going to do a live demonstration of it. I think we're going to be putting together we're just looking at all the is that all on luma? It's not I really want to talk to about luma because I think the critical piece of this it could be. I actually would love it to be I you know I think there's an opportunity to do some partnership work with them. And I think you know I said from the start that we need we need a partner like them not just them. I think Google and others need to come along for the ride as well. But them adding more controllability into the model is really essential for this success. So the closer we partner with those diffusion companies I think the better chance we have of getting ahead of everybody who's going to who's going to actually go do like custom model no one is these guys will but there needs to be indication that we're kind of be doing custom models. They're not going to customize their model for us. No but they might open their model up so that can actually collaborate. But they might open up apis that don't exist that the editor could interface with. That's what we've always discussed with them. Right. So if I you know I've said we want strict camera controls which doesn't exist. We want adherence controls across images and frames. None of that exists. So us getting some of that work done and especially timing it towards the outputs and controllability we want from the editor I think is on the table. They've been very open about that. It's just if we can figure out some way to partner, I think that makes it. They want to get, they want to get, they want to get into the games. They have a good shared kind of worldview in terms of where game engines. Set like as a state machine. That none of the AI models. Have or can really build. So I think what they don't want to do is go all in with us on M&E if just kind of. Like. A side project. Like we need we can talk about offline but we need like a path to like real partnership. But I just. I just worry that versus like a project part collaboration. Because their opportunity cost is high. I think yeah for gaming for sure. But they really want to they really really want to go deep. I just like our philosophy has always been we're not going deep with one partner. No and we're going to have to leave the engine open to work with every model at the end of the day. Like what we are doing is not going to prevent anybody to come and do the same with another model and the quality will be based on the quality of the model. But we cannot just restrict that feature to luma. No and I'm sure like companies like runway have put it they put right we can promote it. We can promote it. But the big question is can is there something different that we can do with them? That again like as, as like opens a model up opens up some APIs. Like gets information than anyone else is going to do just by plugging in their existing model into ours. I think one of the challenges we have as industry isn't just trying to solve a technical budget concern that they're also trying to solve an ethical legal thing as well. Right. And I think if to have an opinion on that even if you know as Seb said we have to keep the engine agnostic anyone can plug any model into it but we can have an opinion on which models we think are best for different industries or certainly for M&E. That's how I saw that partnership and introducing which we already are introducing them to some of our partner companies. Like we're trying to get a whole POC stood up with light storm right now. With them. So that's an introduction they wouldn't have had without us. So there is definitely already benefits. I know in that is very ambitious though. As he should be. Yeah. Yeah, as he should be. In any case. So you know we're going to show something at first to our closed door attendees just to get their reaction and start getting some feedback. I think after break we want to open that up to a partner branch or just just some select partners to start using it to give us feedback and we can start building some collateral stuff towards releases. I think what we really need, we don't want to just release it. We need to have some productions behind it saying this is freaking awesome. We've done this with, you know in partnership. So should we be. Well with experimental is that going to include monetization. I would that's what I'd love to talk about. I really feel it needs to be because ideally we release something that works better in our ecosystem in our monetization system than others. Um it doesn't mean we're not going to stop people from using scenario and local models and other things. Yeah, but if it's easier for someone to download the engine and just connect to fab and buy some tokens and connect to a bunch of models that is a massive win I think. There's a caveat here is that studios are going to be extremely sensible to the data they move around around their project and they might not want epic cloud in the middle. We've seen that before with IRM and other big guys where they prefer to run every single local and negotiate their own deal. So for M&E we just have to admit that they could just not use our solution whatsoever. Thank you but again I think that's part of the conversation when it comes to the legality and the ethical use of this stuff. So if we have a solution that solves that for them. There's not so much if you know if Disney say we endorse epic's approach in terms of security. That actually makes their lives a hell of a lot easier than it does today. So I think there's some let's be let's just be transparent here like for a November release we will most likely focus on making sure the end to end workflow work from the end user. Are we going to get like all the backend security data and stuff? No, I'm just saying that when it comes to monetization. And it's going to depend about what type of deal we end up with luma on somebody else. But we have to expect that like the largest movie studio might just embrace it by bringing their own keys. And so for us it's more like a seat deal. It's not really a revenue subscription deal at this point. But we'll see depends about how Looma sees it. But right now we've not been able really to even discuss about that with them. Yeah I still think, you know I think I said to you at the beginning of your bill I still see this as certain. Students have been targeting may be less interesting because you know they can lean heavily on AI, but then a whole bunch of studios that weren't really something we could target suddenly become interested. And also just what it means for ad agencies and other companies as well. There's going to be a lot of startup production companies trying to utilize AI tools just for advertising and many other use cases, right? Like they need they need tools. We could put ourselves firmly in the spotlight for a lot of that stuff. Which means seats if it mean if it doesn't mean tokens. So that's kind of what we're shooting for is get something out there make make us make a splash of short make it you know we're just saying yesterday it's going to have some blowback as well as positive things too everyone's getting blowback on this stuff right now. And I think that's the thing we're just discussing as a team yesterday. I think there are some messaging in there that we should all collectively try and lean into to soften that blow a little bit. But I think we're all expecting just to shut up social media for a few weeks. And then next year you know the goal is that we want to try and continue making updates probably you know via plugins or however we choose to deploy in November. As we continue to sort of expand things out for ue6. I think we just got to start assuming we're going to launch the monetization. We're just going to start planning. I guess the eugene can work with the team. Laura and Stephen and team to figure out how. The building building is going to blow through the system. Yeah, I think for our use case, I mean you probably sell nutrients got some good stats together probably be good to have this follow up conversation with him and all of us. But you know between all of the video image and tripo and you know at mesh generation that's a that's a lot of tokens people are going to use to generate content for M&E. So there's a lot there's like a Merlin business cost meeting today that neither he nor I were invited to. He was asking me if oh I could get him into the meeting. I'm like, I don't know what you're talking about. I was chatting to him and I asked him said are you chatting to Bill about this I got we got a wise cross sorry I said I just painted back and said no we just need a separate conversation about this which we should have a good to organize that and talk that through. But that's that's our goal is to get something out in customers hands by the end of the year. Okay. I think this is complimentary to our animation stuff although 58 is going to be one of our biggest launches for animation. So there's a lot there's a lot there just in the more traditional tools. If 59 comes to fruition I think we'll try and squeeze in other updates that we can but otherwise the team will start shifting to six. Cool. All right we just have to start tracking that as an initiative across the, you know, across cross functional team start planning for it. The next no, no just then can do you have additional slides on the no that was it I just would like to mention because it's not there but when it comes to M&E let's not forget about what we've been doing for the last couple of release and 5.8 is going to be I think the strongest release we ever have for a minute when it comes to capabilities like yeah our internal teams are animating in engine we have what we think are the best animation tool right now on the market superior to maya we have performance capture in engine I could go on and on and on but let's not forget that 580 is super strong when it comes to M&E finally agreed we should be out there going with that very strong message. We need to dial that up in the script that I went through yesterday for real going back and forth with the DNS or maybe we can take another part of it together. And then I think Merlin you know by the end of the year I think hopefully just compliments all of that as well because it just gives us an edge you know suddenly level sets a lot of things that we've we've traditionally struggled with in terms of rendering capability. So I'm hoping you know if we can really showcase the level of control and having all the power of the tools behind it, it's going to create an interesting opportunity for us. Okay cool. Thanks. Okay great. I'm going to be super quick mainly because my flight is now boarding and I need to get out of this phone booth into my flight. The on the strategic partners again you know just trying to establish the enterprise kind of go to market framework so this is like more on like who we're focusing on as our partners and making sure that they're the correct revenue generating partners you know unity is a new tech partner is definitely part of it new HMI partner kanzi and starting to look at you know partner enablement programs on the channel side again we kind of covered it earlier but still looking to fill the gaps you know mainly focusing on getting the BDs to work more with the resellers Greg, I'm going to get you off the hook on this because we talked about almost everything on the slide in your enterprise section rock on but on the service partners I do want to pass it to Dana because Dana has some things there. Thanks. Sure so the the tldr here on this slide is that we've sort of worked to understand the the processes that were previously in place document those and then start to figure out how we can streamline operations even more service partners back up and running resuming you know plowing through this backlog and we've onboarded three new partners in the last 30 days and we have a pipeline of at least five more in the near term probably more once we work through a few more cases and we started plugging the holes is in terms of the service partner directory but we've figured out that a lot of it's kind of broken because it's hosted through Salesforce so thankfully duly and the training partners team they've had they have some really great work in flight that we can draft off of to move our directory over to the CMS. And have something that's a lot easier to maintain and then at the same time we're also working on better partner enablement and building out a marketing pipeline of excellent stories that we can tell throughout the rest of the year. Awesome. When we are working with these partners for service partners specifically on campaigns. Spotlights or they actually contributing marketing money. There has not been any money trading hands. But one thing that we are trying to do is enable them to lead more on the marketing so that we're not giving them brand template creative templates. And yeah pre approved pre-approved assets that they can run with. That's right. I like that approach. Yeah, I mean for the bigger partners. Like a Qualcomm there should be. Co-funding for service partners. Yeah absolutely absolutely. With Qualcomm we've been chatting with them about how do we get more of our content into their ABM campaigns? Things like that. Okay. Cool. And then just full transparency that red on the status that's not real right it didn't sound like it from your update. Oh no sorry I missed the color change there should be it should be green yeah it sounded green so I just wanted to get it updated thank you. Cool last but not least Laura with growing self service revenue. Yep this is a new kbi as of this month. So I have been pulling together a few different initiatives into what ultimately will be a coordinated suite of projects to kind of help improve UX payments compliance upgrades to help with revenue growth and remove some friction points across all of those areas and so breaking that down a little bit into three main pillars we have closing the ux gaps automating payment ## Transcript **system**: So this is a kind of a recap on year to day and then where Q2 is trending. On the left is the year to date. **system**: So all of Q1 actuals and then includes April pacing, which April is not fully closed yet. Close over the next week, but includes about 22 million of pacing. **system**: So from a kind of year over year trend perspective, game licensing is up, game royalties are up. **system**: Tools are up, enterprise is down slightly. So overall, year to day bookings pacing towards up 8% year over year versus $73 million last year. **system**: And then on Q2, I think that's where we should focus more of our my conversation on. So given I just talked about Jason, sorry. **system**: I only had two sips at my coffee yet. **system**: In the last meeting, we said we were down. We're behind, we, we, we had a Q1 mess. **system**: Yes. **system**: Yeah. **system**: But we're still ahead of last year. We're just missing. **system**: Yes, that's right. So like, you know, Q1, if you look at the bottom, right, we have the targets you guys had for the start of the year that built to the 370. So Q1 was 56. And then, you know, April is 22, there's some rounding and then it gets you to 79. **system**: Jason, just to be really clear on the left, it says Q1 26, but it's actually April here to date. **system**: Yes, I'm sorry. Didn't update it. Yes, that should be year to date. And that's my. **system**: Okay. **system**: So not, not too controversial. It's slightly higher. That threw me off. Got it. Yeah, that's my mistake. I know, I know. And then on the right, it's also, okay, there's some mislabeling on the x axis. **system**: So on the right, it's all queued too. It's a build towards Q2 on the right. So we just talked about 22 million in April. **system**: I'm pacing towards 108 million. So there's a lot of game adjusted game pipeline, you know, 46 million of adjusted game pipeline for the remainder of the quarter in Salesforce right now. Another forecast for, you know, for May and June of 21 million across royalties and game tools. **system**: And then moving on to enterprise, the 52 million line. That is what's representing the adjusted probability adjusted enterprise pipeline in Salesforce right now. **system**: I add all those things up and I hedge it back to where is finance kind of like the pacing is. **system**: To account for some risk. **system**: So there could be upside. **system**: If everything closes, but I'm going to get to one correct me if I'm wrong, we need to get to 116. **system**: In Q2 to be on track for first half. **system**: That's right. So, like, if you look at the bottom right, we missed Q1 by 11. So you need 11 above the 105. So 116. So I mean, you could get there, right? Like if my hedge was any less and like we executed and close on more of these adjusted pipeline deals, then we'll get ahead. I'm trying to be safe. But, you know, I'm trying to make the point that there is a large amount for two months, right? That's 100 million of games and enterprise deals. **system**: Okay. **system**: And, Dhame, maybe we could jump to the next page. **system**: Darsh and my team in help laid out, sorry, the previous page. **system**: The previous page. **system**: DP is not going well. **system**: Smooth sailing. **system**: Yeah. So I mean, this is the major Q2 deals to kind of talk through what we need to make that Q2 happen. **system**: There's a top deals. **system**: Like for games, it includes other enterprise. I'm literally just looking at two deals because they all drive the quarter. **system**: Happy to pass it to like the BD team here to add chime in on anything or build if you have any questions. **system**: Yeah. So what's missing in here, I would say, is the mihoyo deal, which is recently, I'm not sure if TIF is on the call, but like I can have handed over to her. But there's recent news on mihoyo, which, we might have been able to rope back into Q2 and that of $50 million rate. **system**: So the big deals here are really Warner Brothers that show should be at an incremental 10. **system**: And then you could talk about that more later. Plus like an additional deal on top of that. So there's amendments plus an additional deal and take two that could move to nine. So if you get Warner Brothers take two and the hoyo closed, we place ourselves ahead of the curve on Q2. **system**: What we're showing here is just from Salesforce, but yeah. **system**: Just to add to what Rocco said for WB bill, I think you know this 10 reflected, but we're shooting for more like 20 or 22 to get the new deal closed. And I think Rocco mentioned it. But there's a path on take two to getting it to more like. **system**: Nine. We're working on it. **system**: So there's some upside there. **system**: Okay. **system**: I see craigs on the call. **system**: But SAS, I've been talking to Matt Benson. **system**: We're, it's possible that like we recognize most of the 30, 33 million. **system**: Depends on the termination clause. **system**: Depends on termination. But as far as I know, I've seen like the unreal license is standalone and reality scans is not. **system**: Like other pieces not part of the same contract. **system**: Yes, but that was our legal doing that. They're going to come back and want to tie back. It's, it's, it's there. As of right now, there's a good chance that there's a termination. **system**: Clause. So, so I'll be back. Okay. **system**: Then that'll impact. It's day by day. **system**: They're trying to, they're trying to get to that point of not having a termination clause. I just, it's literally like every hour I get another round of questions. **system**: So, okay. **system**: You're right, Bill. Like we're trying to follow along with you, but not impede the progress you must be having on your side. But yeah, it will come down to how that overall deal is structured, whether it's on one piece or two piece or how those, if it's on two pieces, how they're connected. But yeah. **system**: Yep. **system**: Bill, did you float the Delphi deal to Andy Kleiman? **system**: Not yet. I'm still talking. Adam wanted to talk about the whole incentive structure, which I will talk to him about at 11. **system**: I tried three times yesterday. So cool working on it. **system**: Okay, maybe we can move on to the next page, Davin. Um, the short story, one, one thing I know, Craig, Craig's on the call. And I think you had a call with legal last night, but just on the mobus one, I think you and I will catch up on that tomorrow. **system**: But what I called out to you last week was like, you know, just making sure that if we're going along that mg track, we've got suitable paperwork and agreement between the parties that if it is an mg structure, it is essentially non-turnable, it's legally binding. And you're given the original Qualcomm. **system**: Deal didn't contemplate that. We just need to make sure that we have that because that is, I think, some risk that to call out, Bill, that I'm seeing at the moment. But doesn't mean it's not achievable, just I've called that out. **system**: Yeah, I talked to legal yesterday about it. And I think we came to an agreement, but we're still kind of going through it. **system**: Okay. **system**: Then I'll set, I'll send you the latest on the HMI ideal. What, what the Qualcomm quote, the Qualcomm sent the quote last night. **system**: Okay. **system**: So. **system**: This is the top deals page. It used to be just top five games and top five enterprise, but I've realized the game scope has increased dramatically over the last month and a lot of like larger deals have come through. **system**: Salesforce and inputted. So I'm trying to account for those here. **system**: What I would say is like, you know, my number, so going from left to right, we talked about this format a couple of times, but we have low medium max low end of things is just Salesforce with the probability adjustment. **system**: Medium is base sales force and high end is kind of like the discussions we possibly could get on the higher end. **system**: Pacing bookings is whatever I have in my model right now, you may or may not agree with. But what this is saying is, you know, if we. **system**: Close everything on Salesforce at, you know, the probability adjusted rates will be at 330. **system**: If we do the Salesforce rates and close everything. **system**: For these top deals, then we'll be closer to 400, 394. Right. And then the max is well over 400. Yeah. **system**: Okay. **system**: Okay. **system**: Four, we need four. **system**: Now I'm going to obsess over four. **system**: Great. **system**: I could talk about the left side slightly. Sorry, could you just go back to that last slide please where's. **system**: On 10. It's on five now. There it is. Yep. Okay. Yeah, we used to we were doing like 20 million before and now like it seems like it's just one title. **system**: Okay. **system**: Now we can talk about that in a moment. **system**: There's. **system**: Good slide at this point since we're talking for deals. **system**: Let's just talk about those deals. We could skip the left side. It's not by the way we should just use that last slide to talk about the deals instead of having another slide. **system**: Make a note for that for next month. **system**: We could come up with a new format. Okay. **system**: So Konami, the good news is that they provided a counter. We had gone to them with $50 million deal. They countered with 20 and they provided a series of options in terms of royalty rates that are definitely far away from our pricing. But I'd say it's a step forward in getting them onto the royalty conversation and the expectation is that like taka feels pretty good like moving for this conversation. We can get them to a point of agreement with us in Q3. So this one is starting to look feasible. **system**: And realistic around a $20 million mark. **system**: I'll hand it over to Lenny right now for riot. Yeah, I'll jump in on riot. So they're actually in friends and family. **system**: Closed beta on TFT. It's live and playable on UE, which is super cool. I think the good news there is it's, you know, full steam ahead for their launch on target, which means this 13 million in August is looking pretty firm. I think, you know, we try, we tried to find out if they were monetizing even just friends and family to pull the 13 into this quarter. We failed that. We failed at that attempt, but it was worth it. But we're, but we're on track for Q3. They're going to be on stage at fest. All good news here. **system**: Yeah, there's there isn't going to be an update till summer. Same as last time. **system**: So I'll, I'll hand over to Tiff. Tiff should be on the call, right? So we hoe you in crew. Yeah, I am. I'm here. Yeah. Sorry, I just client dinner. So I think like overall good news like the CEO for us. They already confirmed about the overall deal size, which is 50 million and also directionally like the deal structure design. So I think we're good, but like we did now kick off like a very lazy process. But their finance team is very on board with me on the timeline. They also would love to close it on Q2. So we're doing like weekly update to each other. **system**: They will come up, come back to us about the confirmed term sheet. Hopefully this week we could next and then we can kick off the legal process. **system**: So that's about mihoyo. **system**: Once you get that confirmed term sheet back, can you just flip the number in Salesforce from 10 to 50? So we're tracking it. **system**: Like at that point. That's what it is. And we're trying to close it. **system**: So. Which is awesome. **system**: Right. Work. **system**: All we just need to have the first like official kickoff meeting like next week. But they also mentioned about it. They just need some time to do some calculation internally. I probably have more update in the next updates. **system**: Yep. **system**: That's it for China. **system**: Hey, I'll jump back in on wb here. **system**: We're talking to them daily at this point in terms of the back and forth. We're still firm for them submitting 10 to 12 million in exhibits this quarter before their deal expires. **system**: And we are deep in conversations about the refresh getting done before the end of the quarter. We're aligned on that goal. **system**: 10 million is the on signing committed number. So that would bring this to 20 or 22. Um, they're modeling. **system**: Internally right now. Their numbers based on our last proposal. I got a little bit of a preview of their counter yesterday, which hasn't come in yet, but I think they're going to counter with a rate that declines one step further. **system**: Than what we've proposed. And part of that is because they're on this net basis and they want to see something that sub 1% **system**: And they're going to look for us to match on some of their Evo investments. **system**: And they're going to look to add tiers with lower fees for lower budget titles so they can get to, so they can make their per title p ls look better so they can get to low rates on small games. **system**: So we'll see when that comes in. **system**: The next Evo kind of design tech meeting is being scheduled now. We have a slack channel with them. **system**: We're talking about it. I actually have a question for you on this. Have we honed in on their what IP they think they want to focus on? No, we're going to talk about it in the next one. They've floated some things. I think they're gatekeeping a little bit here because they think we won't be as excited and they're going to lose a little bit of leverage. **system**: Um, that, you know, Jessica Martin said in slack yesterday that. **system**: From her perspective, it's like we should hold on wb for evo. She wants to wait till the paramount stuff closes. **system**: I just wanted to float that to you. **system**: That's not the tact that we're taking with them on this negotiation. **system**: Yeah, just keep pushing. Okay, great. **system**: 2k. **system**: So 2k, we're in an effort to try to raise the overall amount that comes in on q2. So they're going to submit two titles under the gearbox deal, which is an older deal that has buyouts, but it should bring in like close to 3 million when they submit those. And then we're looking to get it up to like five other titles on the multi title deal. We proposed 5 million for 1% on mafia. **system**: And then more like kind of guardrailsy 1 million 1.25 million for 2% on the other on the other titles there. They owe us a counter. They've got a VP who's out to memorial day. So we're going back and forth, but they understand we're going to have to close move quickly once he's back. **system**: Okay. **system**: A lot to like we deprecated from this list also because we hit the bot. **system**: The end of the slide. But, so Garina is there's currently we've been like having a tag team effort between Tony and Tiff to make sure that we communicate them and we portray that we're like one company and they can stop trying to play one with the other. Yeah. Play us one against the other. So maybe like Tony and Tiffy can jump in here. But my understanding from the recent communications with them is that on one side, Tony had a meeting in Singapore with them and proposed basically our current structure. We agreed upon which was too gain for at 1% for 20 million. **system**: Or I 1.5% for 10 million. 5 million each or 10 million dollars each. And they basically let us know that they only really have one game in development, which is a mo, which is the year which for which it wouldn't sign two deals. On the other side, TIF had met with JEX in China. Got the same information about. **system**: The amount of games they have in development. But but they there's the additional information that they might be interested in publishing more like internationally. So there's a potential for a line of credit deal there. So that's what we're trying to do. TIFF tone, is there anything else you want to add on this side? **system**: Not much. Not a lot. Not a lot. But like I do feel like they the title they're working on, which is a real title will be out this year. So they have a timeline. **system**: That they need to close this one. Yeah. Okay. So I think we're, that, that's the best news I think. And then they also are investing on some of the china prospect titles. **system**: So we will have relationship with them in one way or the other. **system**: And as I said in the slack channel, I'm talking tomorrow. I want to push for a deal for the mobile title. I have no idea what they're publishing model looks like. And I think if we do wait on that, we'll probably be waiting beyond this year. So let's give it a crack. **system**: So we'll go after 5 million now and then hopefully open a credit line deal like in tips conversation of checks seems to be the best way forward. **system**: Okay. **system**: Good. **system**: I'll take it this slide. So just a quick one on performance. So when we closed March, we close at just under 39, 34 million of royalties, which was up 10% from prior comparable period. **system**: We had a large contribution in March from dispatch. So that was great to see 4.1. **system**: And then for April month we are forecasted to land somewhere between 10, 10 and a half, which would be great. I would call out though that that does. **system**: Include a couple of one offs. So we've got 1.5 million for the Tropic 06, Bandai settlement, which we booked and we received the cash for. And about 1 million for a couple of new titles. So win rose and far, far west. So this is, I think, telling the story of the year so far, which is we're on track at roughly 11 million a month. **system**: But we're not seeing any like, like hero titles come out right now which are driving additional royalties. We're relying on the existing portfolio. Our accuracy of the accruals against that portfolio and a couple of one-off items bill. **system**: So that's where we are right now. If we do close April at 10, 10 and a half, we'll get to about 46 and a half, which brings you back to the target for the four months. **system**: Year. **system**: There are no significant open compliance. **system**: Cases I'm aware of that we are currently working on. Doesn't mean there aren't any, but like anything the size of tropico six is to my knowledge. **system**: And we did work with TIF and the China team to give some messaging back to the game science team where we've identified a compliance topic, but we're not actively pursuing it. And TIFF is picking up with the relationship there. **system**: And seeking to give them time to resolve it because it went withholding taxes. **system**: How is neverness to averness doing, TEF? **system**: But it's really the only big release. **system**: So I need a more, more update from them. But I think like their first data is about like 100 million in Chinese yuan globally, which is like last, I think last Thursday. **system**: So everything seems to be on track and they're training on like twitch. So we hope we can get a decent, but again, we only have like, you know, console roadies. **system**: So, but the percentage of road like roty revenue generated from console is pretty high. So I think we're we'll probably, we'll still get something from there. Okay. **system**: Good. **system**: Yeah. These other titles are all pretty much indie titles. **system**: Huh? Isn't so the com, the ones coming up are going to be decent. **system**: I guess. **system**: I would say it'd be one that I, I send it to marketing. I forgot to send it here. **system**: So world of tanks blitz has just confirmed they're moving to you, right? So they've been working on it for quite a while. There's actually quite a bit of risk at a certain point that they were going to stay on the old tech because they're having some issue that we helped them with. But they've announced a week ago that June 17, they are moving, they're launching to redesign their engine. Basically, where the tanks blitz reforged. And from that moment forward, we'll be getting royalties from them. Is it the 1% **system**: Yep. **system**: Is it a gross? I could be gross. It should be gross. **system**: Okay. **system**: And fun footnote dispatch 2 is now in development and we're working on a deal. **system**: To secure that one. **system**: Nice great game. **system**: Awesome. **system**: Cool. **system**: So I highlighted in green all the ones in Q2. **system**: Minus the 51 world one. Target. We actually got the signed order last night. So that was good. Snake is hopefully signing this week. We sent best and final to them last week. Boeing, which is a million dollar deal. We actually got the PO for, but we are working on getting the signed order form. Hopefully this week also. **system**: So that should be good. **system**: Tanzi, we are meeting with them on Friday. He wants to try and get this done by the end of May. So looking forward to getting, getting that one over the hop. **system**: And then the two, the big news on the 200 ones is on the HMI. We've a, we've agreed to the mg terms. Basically, there's going to be three, we kind of separated the mg into three separate years. And Qualcomm just sent the quote last night. So this one still looking good for this year. We would only revrec 3.1 million, but then we'd also have a 4.7 next year and a 4.7 year after. So we kind of just separated the mg out into three years. And then we've also agreed on the seat deal ended up instead of 9 million. We had to come under 5 million. So it's just slightly under 5 million. **system**: Uh, but this license is getting drawn up and sent over and then the SAS one is, in the works also. **system**: So here too shaping up to be pretty good. There are some, you know, additional ones out there that are still good. Bentley slipped to Q3. Uh, they decided not to ship in Q2, so that one shipped to Q3. **system**: Um, Tiff, I don't know if you, got an update on 51 world, but that's the one other one. **system**: Yeah, they're, they're like, what we propose like 250k for three years with them. They set their budget currently is 150k. So I told them like we will either go with the, you know, fixture, like kind of like licensing deal or we will go royalties. So they will go back and do the calculations. I think like it's a, maybe eventually like crack, you can jump on a call with me with their CEO and then we can just like negotiate the rationale on this. I did my full calculation based on, based on their earnings. So I'm very confident about like my offer should be the best they can get if with all like going on the road. **system**: Okay. **system**: Did you confirm that China is not on the exclusive region list for SaaS? **system**: I did not, I did flag that we had some existing OEMs. **system**: In there, but I will double check on that. **system**: We need to confirm today on that one. **system**: Okay. **system**: I'll confirm that. But overall, you know, Q2 shipping out to be best scanned it. **system**: I scanned it and didn't see it, but we got a triple check urgently. **system**: Yep. Okay. **system**: Sorry, you're saying this is the best quarter we've had. **system**: Yeah, this was, this is shipping up to be, you know, one of our better quarters outside of this. There's an additional somewhere around 20 million in small deals. So there's a bunch of 200, 300k deals that are still in the pipeline for this quarter. **system**: So, you know, add all of that up plus these bigger deals. And, you know, if you look at the pipeline, it says 51.9 million, which, you know, last year we only did 44 million total. So we're shaping up to be pretty good. **system**: There's also some upside on like Google one too. Okay quick question. Are we at the point now where do we have a new enterprise agreement that. **system**: Does not, that reflects the fact that we're not bundling reality scan and twin motion with the engine? **system**: Yep, we already have the drafts ready. I think, I think we're going to, I don't know if we're talking about that in this meeting, but, looking to go live May 27 for the decoupling. So everything's on track. We already have the order forms kind of ready as soon as we start. **system**: So these deals will all include it, or at least the target one does the bowling one does. **system**: And so we'll, we'll make sure that we'll cut over rate on the on the day of the decouple. **system**: Okay. **system**: I mean, we don't need to, we can cut over now. **system**: Right, for custom agreements. **system**: So there's a problem that we actually don't have an entitlement. **system**: In the system to actually just grant unreal. So then we'd be granting something with an entitlement that they haven't legally signed for. **system**: So that, that's kind of the issue right now, which is why we can't do it early. **system**: Unfortunately. **system**: But hopefully, I'm hoping that we can get that entitlement, you know, figure it out here in the next week or so. **system**: Okay. **system**: I was typing nasty asking about exclusivity in SAS. It's basically like they have the exclusive right to distribute the editor. **system**: With, for digital twin simulation. **system**: Use cases in select industries and select regions geographies. So manufacturing, government defense. **system**: Health sciences, like medical sciences and worker safety, I believe are the industries. **system**: Okay. **system**: And it's a pretty restrictive on regions. **system**: Bill, I actually, I actually know the answer to this. The way that we wrote this in the contract was any existing agreements are excluded from the exclusivity. **system**: So we can't sign any new deals in China. **system**: But any existing ones would, would hold up. **system**: Is the way that we wrote it in. **system**: Sorry. But they haven't responded to that yet. **system**: They have not responded to that. That, that just went out. **system**: So, Stacy, we did a scan. **system**: And there's only. **system**: Like two companies globally. **system**: I think perfect world is one. **system**: And then there's one at the pipeline. **system**: So generally everyone's building a lot of applications for that. **system**: Use case, but they're just using the editor runtime using the engine at runtime. **system**: They're not shipping and distributing software with a version of the editor. **system**: Which is what duality is doing. **system**: And SAS is buying duality. So it's really. So basically they have exclusive. **system**: Exclusive resell in specific regions for specific use cases. **system**: Yeah. Specifically for distribution of the editor. Yeah. Simulation. **system**: Distribution of the editor. **system**: Yep. License. So it's like, okay. **system**: Okay. **system**: So moving on. Sorry. **system**: So we're essentially, we're essentially outsourcing. **system**: Digital twin simulation. **system**: And we're outsourcing hml. **system**: Here. **system**: With key partners. **system**: Hmi being kanzi. **microphone**: Well. **system**: Bill. **microphone**: We certainly have. **system**: Yep, I'm sure. Okay. Thanks, Greg. Good job. **system**: All right. So looking at steady growth continuing in enterprise seats. So a rebuilt how this was captured so that we had a better historical model. So when you look at these KPI cards here, the top is month over month, the versus previous and the bottom is year over year. **system**: So we're tracking around 45% year over year growth right now in total active seats. And then you can see the breakdown for product, which I imagine this will collapse over time once those initiatives are done and then the bottom is purchase method. **microphone**: Been. **microphone**: Told. **system**: The same breakdown. **system**: I love these KPI cards. **system**: Thank you. Thank you. **system**: It's pretty, pretty snazzy. Pretty snazzy view here, I think. And then in the next slide, we'll also have a breakdown for region. **system**: And industry as well. **microphone**: Oh what are you playing here for now? **system**: So the big story here is just continuing large growth in our low touch offerings. **microphone**: Starting. **system**: Which. **system**: Is a trend that Laura will talk more on as well later in the kbos. Awesome. **microphone**: Yeah. **system**: So just, I'll pause here for just a second on our region. Yeah. Yeah. There's one year. **system**: I think the numbers are small. **system**: For India, China and Korea, but the growth is obviously there as well. One thing I will call out is I am using an algorithmic estimate for anything that was a company wide deal on unlimited seats. So I do want to be specific about that. If that doesn't align to any specific BD's view for their region. **system**: Okay. Anything jumping out here? Just the reds are, I guess, M&E. **system**: Down, but more, but barely. **microphone**: 5. **system**: Basically flat. Yeah. **system**: Yeah. **system**: All right. **system**: I'm not going to complain about these, but I, I would like the next level of understanding is new versus new versus renewal. **system**: Yeah. **system**: Yeah, we'll fold that in. And I have that breakdown fully in Tableau as well. So we'll surface that. And the last thing I do want to call out is that there's no industry tie in for anything that's self service right now. So all of that is grouped in other in the very bottom right. And yeah, if we could order these in terms of looks like they're alphabetical, but highest to lowest would be easy to look into. Yeah, for sure. **microphone**: 2. **system**: Cool. **microphone**: I got. **microphone**: Like. **microphone**: Eight swinging forward. **system**: Digging into really sticks out is the, sorry, when more is like Japan. **system**: Being so low. **system**: On active seats. **system**: Yet the volume of deals that I have to docu sign or used to have to doc sign is sky high. **system**: Okay. **system**: Can I ask a quick delayed question? I missed my moment, but I don't want, I don't want it to pass by completely on kanzi. **system**: And let's see, the other one, what is the, is there like a support understand with those? Are they just selling but nothing changes on the support side? Is there anything different on the support side? **system**: Craig can speak to kanzi. **system**: But for sass. **system**: We are just supporting them. Like we're supporting them. **system**: With sa resources to help with their, you know, strategy and technical implementation of that strategy. **system**: Yeah, we're going to need like tactical account. **system**: Management. **system**: Just to stay on top of it. But. **system**: That's it. I think it was pretty, we tried to keep it high level and just basically say, hey, we're going to. **system**: You guys are our partner. We're going to support your efforts. **system**: And we're not going to do any custom development or anything like that, but we're certainly show you the way. **system**: Okay. And they'll provide support when they sell, but we'll support them as they need it. **system**: Yeah. Okay. And then what about kanji first? The best way to think about it, it's their solution is duality. **system**: And we haven't really had to do anything at all to support duality. **system**: So the good news is like they're acquiring a team that has a mature product that's been in market with customers. **system**: And has a team of ue devs. **system**: Coming with. **system**: So that. **system**: Yeah. So we kind of already know what the support patterns are at a baseline. **microphone**: Like right now. **system**: And hopefully they scale the adoption pretty dramatically. **system**: Okay, cool. I just want to make sure I understood. Thank you. **system**: And kanji will be similar with jaw andreessen on the sa team kind of helping kanzi get, get up and running. Clonzi is also looking at hiring some of the ex people. So there could, there's an opportunity hopefully to get some support resources from x epic into kanzi. **microphone**: Waiting for them to get. **microphone**: The argument. **system**: Also. **system**: Which would be good for us. **system**: Wow. And digital twin and simulation also has passed mne. **system**: Yeah, based on the new industry breakdowns. **system**: Yeah. **system**: Yeah. However, ebony growth rate is higher over last year. **system**: Okay. That's because digital twin and sim had a big year two years ago. You remember, and they, they signed some big seat deals, you know, that they had three, three deals over a million dollars. **system**: Accounted for a significant portion of those seats. **system**: Yep. **system**: Okay. **system**: The digital twin and sim also is a combination of AEC. So all the AC seats, all the simulation seats and all the fashion retail CPG. And we group technology in there also, which is like Nvidia and some of those. **system**: Into that category also. Okay. **system**: Yeah. **system**: Calling out self service specifically here. I think the big story is that we're on track for our 3.3 million target for ecom purchases. **system**: Still continuously looking at churn for q2 specifically as this will be the second year of renewals. **system**: So seeing if we're at a good clip there, we can see that there was a little bit of an increase in in churn rate for ue and twinmotion. With that being the case this month. So we need to see if that's going to be a trend or is that a one off for just late April? Because we didn't even get a full month of april in the original launch. **system**: And renewals continue to exceed new seed deals as well. **system**: Looks like new. **system**: T. **system**: I guess the new seed deals declining. **system**: Yeah, that is. **system**: Because I think the renewal, like a little bit of saturation there with companies that are now in multi year renewals versus us acquiring new business through self service. **system**: For the next biz review, we'll also do a churn, a churn summary like we've been doing. We typically do them quarterly. So for the next bus review, we'll plan on digging into the churn a little bit more and we'll, we'll figure out what happened with the churn. Typically, even though the churn is ticking up, historically what we've seen is that's either because they either signed the deal with us so they didn't really churn. It's just kind of different types of terms. So we'll, we'll kind of cross that in the next biz review meeting. **system**: Yeah. **system**: And then the channel growth. **system**: April sales were a little down. But as you can see, the year over year growth is still strong. If you look at q1 last year, we were at 276k. This year q1 came in at 733 case, so up 165% **system**: So really, really good. Everything that we were doing was the right things, you know, on the, on the channel. We just have to kind of continue to do it and continue to find new ones. The number of seats also kind of grew. So, you know, still seeing, you know, we actually signed a big 50 seat deal last night with the channel also. So in India. So again seeing those deal sizes also grow, which is, which is good. We're, we're trying to feed the channel a little bit more to kind of pick them up a little bit. And that seems to be working. And you can see it in the revenue that we're growing the revenue of the channel. We're starting to interview some new distributors. So looking at future group, I have a call with them tomorrow. They're in europe and they're a good option. They have a bunch of resellers under them. We're also the Japan team is also looking at either a new reseller and distributor in their area. And so again focus, we're trying to focus at the distributors and resellers that have sales teams. I think that's one of the things that, you know, previously we're signing up criteria thinking someone has sell your shit. I think, I think that's one thing that we previously maybe didn't evaluate was that, you know, how many sales guys they actually have. And I think if you look at some of the people in the list, they're not really, they don't have a sales team. They're really just like service orgs or something like that. Really have a sales team. **system**: So try and focus. It's just like it's reactive. Like, hey, you need a transaction done in region. We'll facilitate for you, but you got to come to us. Yeah. Okay. Yeah. So I think the focus there is to try and find new ones. I say the good news is that we got the BD team kind of behind this and the beauty team is out there. **system**: Trying to also find resellers for us. And they know the markets. And so, you know, I think the reliance on making sure that we have the right distributors or resellers in the regions, they can actually go out and sell the product. And then we're also working on automating the order to delivery for 100% of the new deals and renewals. So right now there's still some manual steps that happen in between taking in order when they process the order on the website to actually sending them a DocuSign to sign up working on automating that thing from end to end with Laura's team. And, you know, I'm hopeful that, you know, we'll, we'll get something there going in the next month or two. **system**: But overall channel, you know, I'm still definitely, you know, spending a lot of time trying to get the channel up. I think, you know, the effort that we've put in this last year with, with Rob, I think it's paid off and we just need to kind of continue to grow it. I mean, our channel should be selling over a million dollars a month. **system**: To be an actual reputable channel. So we, we still have a long ways to go. **system**: But overall we're doing the starting points. **system**: Okay, great. **system**: Cool. So switching over to our kpis, slightly different format for these moving forward. So can I interrupt that? Are we going to look at the mau numbers? **system**: For ue? **system**: I do not believe that they're in this month's presentation. **system**: Can, can anyone. **system**: Give a tldr on that? **system**: If no one is on that can, I'll sync with nick after this and at least get you a follow up. **system**: Okay. **system**: Sorry, we should always include that going forward. **system**: Sounds good. **system**: So we have a slightly new format for the kpis structured by an overview slide first that we can maybe highlight this, this meeting, but not, not spend a ton of time on and let's have the meat at the time on the update and sort of taking our last 30 days next 30 days view at each of these. Also of note, we shifted out the initiative as just something that everyone should be focusing on and doing and added in protect m&e. And so I think Craig will give an overview of early days of that as we build that out in the future. **microphone**: That's obviously new. **system**: So kicking off with Grana with tiff. **system**: Sure, I'll keep it quick because there's all the details here. This slide is like something we design is more about more or less about like what's our new kind of like go and the logo looks like. I think this is like not supposed to be new. It should be something like delivered when we kind of complete planning. So I won't go into like a ton of details here. I think the next slide is some probably something that can spend more time with. **system**: I guess, yeah, I mean, you know what I'm, you probably know what I'm going to say on enterprise market penetration. It's like it's less of a less of a priority. **system**: Yeah. Probably what mainly focus on in these. So there might be some changes on the prioritization on the d levels. **system**: Yeah. **system**: So next slide. **system**: Right. So like, I think we, so the each kbi for each items will be focusing on like what we are trying to close by deal. So like try to achieve like the revenue side of things and also like the initiatives we're running. So I'm going to quickly mention like for the past month we close some of these deal that's supposed to be closing q1, which is like have element perfect word, the final spark lumitopia, which is about like a 7.1 million total. And then actually in comparison like this month we hope we can close the remaining a couple of deals. But with the biggest ones apparently like mihoyo there. I listed these deals by status. So like those are realized pretty much close to be signed. Those are on term sheet is like, you know, kind of like we just started. And then mihoyo is like we are pre term sheet. So but like the overall scope and alignment has been has been discussed. So it should be aligned. **system**: And then for another focus for our satellite because I guess everybody know about like uni-china policies. They actually have. **system**: Very terrible kind of like pricing kind of like strategy in china for not only games, but also hmi. So we got a lot of prospects. **system**: From like unity to try to do like a real conversions. So currently we're sorry to like a real no like PE. But what we're trying to proprietary entry. Sorry, we're trying to, we're trying to work with the education team to design a dedicated workshop format with education partners for these high potential prospects because each of them will bring like pretty significant revenue from kind of bringing their overall portfolio or kind of like their studio tag for real. So that's a big focus actually with whole plot. We can deliver at least like have a plan or confirm kind of like strategy within this month. We already discussed. We also are kind of like working not like in the best efficiencies kind of fashion, but we're trying to slowly finish the EGS transition because there are a lot of publisher who are not probably on a real titles, but they are like decent kind of like publisher would need to kind of get them on board and finish kind of like a content acquisition from them. So these are slow efforts we're doing for the part of it. The two initiatives we're doing from the marketing or event perspective is like we're going to have the CIGDI, which is a government led epic run kind of events. We hope kind of like we will get more government official support by having such a high impact event like that during the trying to join. And we also like and as team will run a special version of like DAV day doing china joy and we hope probably can host like 200 licensee and the prospects. **microphone**: 90% of. **microphone**: Them. **system**: By giving them a kind of like go through of 5a and or like the major kind of like feature go through tackled through all with them. **system**: So that was what we have been planned for last last month. **system**: Yeah this small fighting already mentioned that we will try to major thing is like we were trying to wrap up all this event where or like continue to deliver this preparation for these events, but also like really focusing on closing all these deals in the pipeline. We also want to just like this is new format I want to raise it but probably don't we don't have answer is like there are top global mobile OEMs have been signing like NDA deal with us. So xiaomi and vivo, they really want to have something we have we have done for Samsung. **system**: Or apple. **system**: So there could potentially could be, I would say like a license or I don't know like form of like tag. **system**: Tax solution deal with them where still like having a very early stage with them. But their goal is like they know all the big future upcoming flagship title will be unreal. **system**: They want to have a way to work with us to make sure these top games can be run more smoothly on their flagship titles flagship like models. So we are still like actually Stacy has a great idea but like we're trying to figure out like how we can kind of like get some of the deal done with them. But this is something probably would bring up like talk to like Bill and rock all more. **system**: So that's like some bubble EM motion here. **system**: Okay. Billion happy comments. I mean the only comment is talk to David. **system**: In legal. **system**: About what we can and can't do with those guys. **system**: These guys are fine like as long as they're not Huawei. **system**: Right xiaomi is fine. **system**: It's fine yeah both are top OEM distributor. They actually have much bigger like distribution. We just found out that Unity is charging the platforms. **system**: Nintendo Xbox everyone these big platform fees state thanks Stacy for that Intel. **system**: But so I think like to the extent that we can actually support. **system**: We can actually support them. **system**: With a platform engineering team being like aware. **system**: But not taxed too heavily. I think that's the other group to bring in here. **system**: Then like we should try and take some some royalty from them. **system**: Side tacker confirmed that there is like an agreement for 200 engineers at unity support Nintendo and they get royalties. They don't we don't notice the amount of realtors but basically off of the 200 is that true. **system**: That's that's what I don't think. **system**: They have 200 engineer 200 engineers would be like a large percentage of the core engineering there's not 200 engine pretty much dedicated their whole engine team to Nintendo. **system**: But there is a commitment from the engine side and there is a small royalty rate on unidentified amount on seem to be specifically for indie titles for independent developers. **system**: Probably not that big. **system**: Yeah let's see it let's see if we can get something from them I do feel like they want a global exposure and also like not just from china but we're like our global kind of like endorsement about like their top title can wear on their mobile well. So I think there's some there's a lot of room we can discuss with these two both NDA as Valerie Dawn so that's a great news because I don't wanna like it's never gonna have any for the next stage so we finish for like almost a quarter but it's now moving to like the deal negotiation stage. We have something similar requests for all like media tech and also I think AMD but like these are too early to have more motion there so we'll keep everybody posted. **microphone**: Actually. **system**: So for enterprise side I think like our focus is already I think Shah is like with what we want to focus on MNE so the animation summit which will happen next week it will be a kind of like big starting point we have invited about like 36 prospects mostly half of the prospects for how have the game licensees to this event and also like all the top. **system**: Platforms will be there so they are actually more or less like they're the one that will decide which IP will be sent will be produced by which like studios in this in the in the whole like industry change so all of them are showing up and then we'll we will kind of like get more strategy relationship with them and see how we can partner with them. **microphone**: Yeah. **system**: And then there are some government referrals on some of the HMI top clients so expand is one of them and then I told like the hourly will spend my calorie on like the big big ones and then this one including our service provider believe like could be a big one because they started working with uni was five dollar per car deal and now it's become 80 per car so like expand can no longer stand up with this race with the unity that's why they are really they will really want to talk to us I will probably plan something just like to be there but the service partner will be the one mainly deliver the work and finish the negotiation. **microphone**: Yeah. **system**: This will be a good one for for kanzi because kanzi is pretty pretty good in China and most of the most of the oems that went to unity are actually going back to kanzi but if we can insert ourselves there so this will be a good one. **system**: Sounds good. **system**: Yeah it's a they also like not only Qualcomm so they have amd chip as well. **system**: Media MTK MTK chip as well so for for the pipeline I do feel like the what I listed here the animation studio pipeline they are very promising they already kind of like align with us on they either will purchase seats with us and then like the good thing is like. **system**: You can see at least like six five of them or actually all of them are going to make a game so it's a great prospect like they started with working on animation shows or movies and eventually they will they will produce the game. **system**: So so it's a it's a great kind of transmedia trends here in china. **system**: For for you know the others like modify link shu and then file monies are small kind of like inter like other enterprise like deals that we're currently working on hopefully we can close it like within this quarter. **system**: I have a quick question for crag and bill what what's your thought on the enterprise deal for tensit because with the new mega deal two kicks in like regardless they need the enterprise side of business is separate from. **system**: The mega deal one which is a little bit vague on like if it's if it if it is including like the enterprise side of business or not but this one md two is definitely not including so I would just like throw it out there see if you guys want to have any thoughts on like how much we should charge them they will be on they will be joining the animation submit and expecting us to talk to them for like first conversation. **system**: I don't want to speak for bill but I mean on my side like I'm okay either way but it is it is there's a sticking point right now where they submitted some enterprise apps and we kind of said no to them and so we kind of need to make a decision here we're either going to charge them for seats or come up with an unlimited CTL that's part of the agreement or kind of need to figure out what what the plan is. **microphone**: What is your. **system**: What were the enterprise apps? **system**: One of them was like education one I think where they were giving it away for free and so they technically should be paying seats maybe for it because there's not generated revenue generating so like it's kind of one of those like weird ones where they also have a virtual production application that they have built that again. **system**: No not virtual production for 10 cents for 10 yeah they have VP they have VR they have XR and so they actually monetize everywhere right like they also doing internal studio like advertisement and also they're doing the use of VP studio for major kind of like you know car automotive like summit or automotive kind of like commercials so they're getting revenue with our technology they're not licensing the tech. **system**: They're not licensed in tap per se it's like they're monetized on our tech by providing I assume that if you're using the money the engine you're making money somehow but if if they're not like licensing it and using it run correct it's on a royalty I've already said this to you guys like come up with a site licensing deal that you know similar to what we did was was Sony but you know we need to somehow get some understanding of how many users they have across the organization, which I know is like they're just going to have to be honest with us. **system**: I just come up with a number. **system**: Okay we'll eventually probably studio not needs to talk to TM but like we will will talk to the studio that come over to the summit first and see how things are. **microphone**: Answer. **system**: I think like for okay the last the next three days will be quick like for marketing I think like jha has a really undertaking a lot of work and then all the project like we listed here above are something like kind of run by him so hopefully we can get him to contract like hired within this month so he can have more capability like doing more like a bigger picture planning so we also know like what we'll be working out for for each quarter what is our priorities by you know each industry so that's the current kind of like marketing status I think like that for the next one I'll do hope he can join so he can update his own bucket the partner ecosystem done something I think I'm waiting for like I talked to crack I think like that's something probably we will take we'll take time like we need to really figure out like what is the best strategy there I want to mention one thing where we really feel like it's very necessary is like there are still a lot of legacy service partner claim they are like licensed the service partner with you affect China we really need to kind of like turn this around so the thought thinking here is that probably something when you discuss with data as well as like we need to really establish this program from zero so we're going to tell everybody there is a new program coming out and then we're welcome every applicant who are willing to become our partners in one way one format and the other and then we will go through like these process and then finally say like now this is our first batch so we will make sure the clients will forget will forget all these like legacy partners we have signed especially like the real link it's like it's not doing great there I already shared this with bill and crack is like I think their employees are have a lot of have a have a lot of spreading a lot of negative comments on what we are doing for our our service which is not healthy at all so we we need to use this reestablishment of the program to turn things around. **system**: So that that will be the key goal here and then something like we'll work with the marketing team like Dana Stacy on this as well. **system**: Yeah, so there's a team I think all good like Claudia joined last month and then like I'm gradually kind of like move all these eastern China deal clients to her and have taking all the northern China deals we'll finish the transition within this month. **system**: Because that's it for China. **system**: What's the tech support team restructuring line? **system**: It's a it is wait which which part it's the last line. **system**: Yeah we we wanted to basically you make sure every TDR team have their own kind of like become a subject matter expert expert so that's something like Liu and I are having talking about because also one hour licensee to feel like we are not only generous like Liu could be the generous in the team but each of the I would say like TDR will have their own role as SME for the topic and also that will give us more clarity on what kind of like topics we're not good at honestly right now we're not good at like physics chaos so and that's that's the only one where like which is great so every time we're gonna have any speech or anything we know like who we should who we can throw in as sme so that was the thing where I discuss about okay makes sense I like it. **system**: Yep cool. **system**: Awesome thanks to good job. **system**: Thank you. **system**: Next. **system**: Lenny yeah I'll jump in on mobile here I am gonna take a minute to talk through the overview slide with with reorgs with clarity around 5 8 road to six with increasing capabilities around megabase there's like some rethinking reframing here so I feel like it's just worth revisiting the overview so overview establish UE is the as the engine of choice for mobile studios and the way we're doing that is driving adoption supporting conversion showcasing influential projects and then this last piece is somewhat new here like focus on AAA and live service and grow towards ue6 so like a way to think about this is kind of like a reverse funnel like our most important projects kind of growing down to like the mobile developer community sort of writ large and then also sort of shorter term to longer term so that's delivering against must succeed projects focusing on closing deals with mobile studios driving revenue engaging with more mobile studios and then longer term like that engagement is really focused on qualified studios and I'll say a little bit more about that as we walk through this but then longer term it's about kind of shifting unqualified to qualified whether that's hardware getting better I mean a big part of that's obviously on the product side so muskete projects were really like growing the muscle here around my succeed it goes beyond mobile obviously but the initial focus has really been around mobile must succeeds so BD hard at work at identifying those we do have a monthly must succeed refresh process where like I said we're still kind of growing that muscle but we're getting better at it I think we have 87 nominees right now some from every territory I think there's maybe 15 of them are mobile so we're adding them kind of regularly and then monthly world will be like approving them and adding them to the list or or taking them off the list when we think about must succeed there's also like the quality of the deals the the main thing to say there is like royalty deals they're strategic so there's like levers to pull you know special kind of mobile exceptions that we've made but protecting royalties there is critical for must succeeds the goal for tdr is engage with 100% of them we're meeting with Aaron right after this he actually has the list as of today that'll tell us how many were already engaged with and I'll get to the in the last 30 next 30 kind of the shorter term goals there but the the goal is to do a perf review with a hundred percent of the mobile must succeeds and then on must succeeds is steady cadence of like showcases for the for the ones that actually ship. **system**: So then the this kind of middle of the funnel engaging qualified mobile developers growing the number of qualified accounts right like we can't just set the mobile targets and then and then sit there turning that into money so Davin and I have been working on getting an actual mobile pipeline view it's a little bit harder than you might think like to see how much revenue is in the pipeline against mobile titles I've got that in the next 30 so we're trying to get there the initial stab Davin took which was great was like 60 something million I don't think that's right I think a lot of the trouble they're david I don't know if you want to say more but it's around teasing out. **system**: Mobile games from multi title deals exactly it's a manual it's it's manual but we'll but we'll get there and then as we grow the number of qualified accounts maintaining the 90% engaged rate I think so we've built some really cool functionality in megabase I don't know if you've seen it yet Bill I'm tempted to have can you click on that on the key link there the engagement tracking? **system**: So the data is not right yet oh that's not gonna work yeah that's not gonna flow okay I'll talk through it and then if you could stand it up and if someone or if someone wants to stand it up and we can jump back to it basically we've changed the way we're tracking engage status in megabase build do you know about this like the timeliness around it? **system**: No so the engagement previously was like binary it was like either we're engaged with an account or not and I think that's the way you wanted to see it when we originally stood up Mega base we've now built logic into it which basically times things out so it will show engage status by engaged in the last month and if the BD doesn't refresh it engaged in the last quarter. **system**: Engaged in the last year. **system**: Or engaged which is really almost not engaged if it's over the year and then of course we have a non engaged status we have not rolled that out to the beadies yet so the data isn't there yet but the dashboard is live and we actually have a mobile specific dashboard for for engagement with mobile studio so we can like track the regular cadence there and then longer term shifting that BD reports tab okay it's in here you know what I'll go to it and tell you it is in bde geo heads I don't know if you have that one bill. **system**: I can I can throw the I don't okay I'll throw the link into this chat again the data isn't refreshed yet because BD hasn't gone in and flipped those everything defaulted to I believe engaged within the last year anything that was engaged just engaged within the last year but you'll see how it can like will show the trend over time. **system**: I had to request access okay anyway it's really cool I promise and again I think like the timeliness of the engage it's like something rock when I talked a lot about like the best way to reflect it and I think it's really cool that we'll now see like within the last month within the last quarter. **system**: Because with a lot of accounts like within the last quarter is totally fine. **system**: But with some like we're going to want to know that it was within the last month or fresher than that and then again like longer term there's the effort around shifting the way I think about it shifting unqualified to qualify. So what that means is like. **system**: Right now we're basically counting the mass mobile market as not qualified because isn't really a product for them over time that will shift. There are things we can do now around marketing and, and kind of engaging with the community mobile dev days, hearing feedback from non UE devs. **system**: But that's that's sort of the longer term part of the effort. The other thing I want to say before I. **system**: Forget it is in terms of revenue and this kind of middle thing, engaged qualified developers versus unqualified to qualified Jason and Darsh did some interesting work around the mobile opportunity and actually like. **system**: A lot of the revenue, at least intuitively feels like it's not a longer term like we have to wait till UE 6 and we can target the mass mobile market. A lot of the revenue opportunity is AAA and live service. And so, you know, even though the raw numbers in terms of qualified mobile devs might be small like converting or signing royalty deals with just a few of those like between now and you know call it 2030 can have a really meaningful look at it says there's 350 mobile projects and 349 were not engaged on. **system**: Exactly. I told you the date it wasn't there yet. Okay. Okay. But the logic is now built in so we'll roll it out to BDs and then they will go in and update the engage time frame. And then so next time you see this it should be it should be accurate. **system**: Okay. **system**: This goes beyond mobile but it does there is there an easy place for us to to get a snapshot of the number of unity to unreal projects that we're tracking and how that's growing or shrinking over time. **system**: We have. **system**: Yeah probably we'd have to create a dashboard dashboard in megabase. **system**: We could take a note to do that. We've got, I think it's kind of a key. **system**: It's a real key. **system**: Data point like for us to understand what's happening in the market. Are we picking up momentum? Are people fleeing from unity? **system**: Like we really hard have historically had a hard time. **system**: Like having any real data to communicate that. **system**: To them. **system**: And like the mega base is the first stab at actually getting there. **system**: So I'm assuming that the data is going to be compelling just based anecdotally. **system**: But. **system**: Yeah just yeah I think we have a lot of the data. **system**: To do so maybe not industry wide, but certainly a snapshot now that we're tracking even non UE accounts and we're tracking conversions. **system**: So let us take a stab at that and again I think like. **system**: A lot of the I understand why that's an interesting point and especially longer term shorter term I think the raw numbers are maybe smaller. But there's a real revenue opportunity in just a few key conversions. **system**: And like Jason I don't know if you want to jump in on like Rocco and I were talking about it yesterday that sort of like that work you and Darsh did around the bulk of the mobile opportunity being really in like the few live service AAA games like we don't have to dive into it now. I know I'm putting you on the spot but if you want to jump in. **system**: Yeah, I mean. **system**: What I would chime in with is just. **system**: It's about increasing it's about increasing market share. That's the hard part right like and then like landing the royalties on that and like where we are targeting is really the top 100. **system**: And it's few of the key big ones we're not really targeting like anything in like the thousands rank in terms of revenue. So yeah. **system**: Okay. **system**: Next slide last 30 next 30 a lot of this we've touched on already but but worth calling out and some of the must succeed actually impacts the unqualified qualified because they're sort of halo type projects. The zinga deal signed. That's that's going to be a big mobile shooter with with the borderlands IP. We've been kind of restructuring with Anna's team, the mobile must succeed engagement plan and TDR has begun outreach for performance reviews with with all of the mobile must succeeds will get an update today on how many are left. **system**: To engage with. But the goal is 50% at least within within the next 30 days to everness. We already talked about it, but we did our own spotlight on it, the game release tanks blitz reforged announced. **system**: The ocean horn three last time I checked it was an up yet but that spotlight's going live today tank splits launches in the next 30 days. **system**: That's it for the must succeeds qualified mobile devs I talked about the dashboard for qualified engagement. We got to roll out that engagement tracking to BD globally. And then I mentioned already David and I are working on the actual like the revenue in the pipeline against mobile titles. Yeah, halo events for shifting unqualified to qualified. And then these bigger picture things five eight mobile summary. I know is coming five eight shipping the TFT showcase at Fest is going to be huge. **system**: For mobile. **system**: Project buzz which I don't know if anyone on I've been chasing more information on it does anyone on the call want to share about this? This is the sumo amd mobile game that we're going to talk about at fast. **system**: Sure I don't know if we're going to talk about it at fest, but we are planning to have them on the inside at real a couple days before. So project buzz is a mobile game. **system**: Bill. This is the one that you saw at fest with arm meeting it's the first mobile title to use mega lights. **system**: ARM is essentially acting as the publisher. They plan to release the game in Q3 for free for free no monetization. But essentially using this game as a tech showcase to launch the next arm GPU. **system**: What date is that? **system**: In terms of their release date? Yeah. **system**: Not sure they're just saying I think September yeah I've got announcing June 10th. We're going to do a live stream with them on 11th we'll have it playable at fast and the game launches in September. And again like Dana I don't I couldn't even find out the name of the game or anything when I was poking around. I don't know if you know they decided Buzz is the code name. **system**: And and I think there's still a chance that they won't have it playable at fest okay we're trying to lock that in for sure we're holding a space. **system**: But but we'll definitely have the live stream and be a part of their entire marketing campaign. **system**: Cool and I know the mobile sizzle is coming together for for Fest as well. **system**: That's right. **system**: Thanks, Sonny. **system**: Protect M and E craig. You want to take this one? **system**: I think I'm actually going to pass the Duncan but this is a new kbi and so I think you know we can start with Duncan and some of the work that he's doing and then yeah we can talk bill. I think we should talk about you know what what should our targets be? What are some of the goals? But yeah, I'll pass it off to Duncan first to kind of talk through this. **system**: Hey Bo. **system**: Kin I think we spoke about this before that you know I think what we're seeing is the M&E industry is obviously going through challenging time right now with work and layoffs of their own and industry you know downturn and so forth. **system**: So they're really looking for what is the next generation of tools and trying to find ways to to reduce costs. I mean we gave a presentation to James Cameron recently and I mean he he said it directly to his team you know the cost of doing these high concept fantasy science fiction films TV series is just so becoming so prohibitively expensive. You know it's sort of met met the air the level at which you can guarantee any return from box office right so we've got to do something as an industry to lower that cost and so I think seen as that that means to do so across, you know, the range of different areas in production. **system**: And so I see this as a huge sort of potential area for us like everyone everyone is is experimenting with diffusion models whether whether they admit to it or not. **system**: But trying to figure out how to gain you know the control mechanisms mechanisms they need to really drive creative intent that's the real struggle right now is you can't get you can't ask a filmmaker like James Cameron to sit behind a text prompt and come up with a film right it's just never going to happen. **system**: And so we're trying to like obviously focus on all the power of the tools that we have within the engine and how do we incorporate diffusion into that workflow to, you know, put the engine and the driving seat essentially. **system**: And I think we're seeing you know through research and testing we've been doing some pretty pretty great success. I mean you know a lot of it depends on the output of the model obviously and I think there's a lot of growth and work to be done there hopefully with our participation. **system**: But I think you know the thing I keep saying to everybody is this is the worst that's ever going to be. **system**: And so you know as we start to see this technology you know adapt and have more controllability to it. **system**: I honestly think it puts us in the engine in a very advantageous position. I even pitched to some industry friends recently. **system**: You know future VFX animation studios could be a mix of blender unreal and nuke and they all nodded and said yeah we'll drop we'll drop my tomorrow if we had that opportunity. So I honestly feel I know the titles protected many. I actually think you know I think psychologically I think maybe we should think about even growing it because I actually really firmly believe like things that we have been focusing on those small animation studios those YouTube type makers they're all heading to AI, right? Like ICB VR have been one of our biggest champions for years. They just launched their own toolings and they're using elements from the engine but they're not driving it from the engine. If I have a call with them tomorrow on Friday rather to go over what we're building to sit to try and basically bring them back and say look you can actually do this better directly from unreal. **system**: So I see this you know this real pivotal moment. I think we've got a moment in time to really land this and sort of foster that adoption and be seen have the engine seen a slightly different way. And I think you know when we've got the support of the community in gym and others behind us I think that's good. I think that I think it's going to be a very good strong wins for us. I just think we need to just seize the moment. So this is really the emphasis on trying to put that I presented to seven. Our team recently which is that we have that opportunity. If we do nothing others will open the door. I mean I've said to Seb and others you know early on if we don't release something this year the no one's dead in ue6 right we've got an opportunity to get ahead of this. **system**: And really position ourselves. **system**: But we can't wait for ue6 because that's just too far along. **system**: So that's kind of what we're focusing on. You know as I put this timeline together now we're we're actively building a functional prototype. We're going to showcase that to our tab attendees at first. We're actually going to do a live demonstration of it. **system**: I think we're going to be putting together we're just looking at all the is that all on luma? **system**: It's not I really want to talk to about luma because I think the critical piece of this it could be. **system**: I actually would love it to be I you know I think there's an opportunity to do some partnership work with them. And I think you know I said from the start that we need we need a partner like them not just them. I think Google and others need to come along for the ride as well. **system**: But them adding more controllability into the model is really essential for this success. So the closer we partner with those diffusion companies I think the better chance we have of getting ahead of everybody who's going to who's going to actually go do like custom model no one is these guys will but there needs to be indication that we're kind of be doing custom models. **system**: They're not going to customize their model for us. **system**: No but they might open their model up so that can actually collaborate. **system**: But they might open up apis that don't exist that the editor could interface with. That's what we've always discussed with them. Right. So if I you know I've said we want strict camera controls which doesn't exist. We want adherence controls across images and frames. None of that exists. **system**: So us getting some of that work done and especially timing it towards the outputs and controllability we want from the editor I think is on the table. They've been very open about that. It's just if we can figure out some way to partner, I think that makes it. They want to get, they want to get, they want to get into the games. **system**: They have a good shared kind of worldview in terms of where game engines. **system**: Set like as a state machine. **system**: That none of the AI models. **system**: Have or can really build. So I think what they don't want to do is go all in with us on M&E if just kind of. **system**: Like. **system**: A side project. **system**: Like we need we can talk about offline but we need like a path to like real partnership. But I just. **system**: I just worry that versus like a project part collaboration. **system**: Because their opportunity cost is high. I think yeah for gaming for sure. But they really want to they really really want to go deep. I just like our philosophy has always been we're not going deep with one partner. **system**: No and we're going to have to leave the engine open to work with every model at the end of the day. Like what we are doing is not going to prevent anybody to come and do the same with another model and the quality will be based on the quality of the model. But we cannot just restrict that feature to luma. **system**: No and I'm sure like companies like runway have put it they put right we can promote it. We can promote it. But the big question is can is there something different that we can do with them? **system**: That again like as, as like opens a model up opens up some APIs. **system**: Like gets information than anyone else is going to do just by plugging in their existing model into ours. I think one of the challenges we have as industry isn't just trying to solve a technical budget concern that they're also trying to solve an ethical legal thing as well. Right. And I think if to have an opinion on that even if you know as Seb said we have to keep the engine agnostic anyone can plug any model into it but we can have an opinion on which models we think are best for different industries or certainly for M&E. That's how I saw that partnership and introducing which we already are introducing them to some of our partner companies. **system**: Like we're trying to get a whole POC stood up with light storm right now. **system**: With them. So that's an introduction they wouldn't have had without us. So there is definitely already benefits. **system**: I know in that is very ambitious though. **system**: As he should be. Yeah. Yeah, as he should be. In any case. **system**: So you know we're going to show something at first to our closed door attendees just to get their reaction and start getting some feedback. I think after break we want to open that up to a partner branch or just just some select partners to start using it to give us feedback and we can start building some collateral stuff towards releases. I think what we really need, we don't want to just release it. We need to have some productions behind it saying this is freaking awesome. We've done this with, you know in partnership. **system**: So should we be. **system**: Well with experimental is that going to include monetization. **system**: I would that's what I'd love to talk about. **system**: I really feel it needs to be because ideally we release something that works better in our ecosystem in our monetization system than others. Um it doesn't mean we're not going to stop people from using scenario and local models and other things. Yeah, but if it's easier for someone to download the engine and just connect to fab and buy some tokens and connect to a bunch of models that is a massive win I think. **system**: There's a caveat here is that studios are going to be extremely sensible to the data they move around around their project and they might not want epic cloud in the middle. We've seen that before with IRM and other big guys where they prefer to run every single local and negotiate their own deal. **system**: So for M&E we just have to admit that they could just not use our solution whatsoever. Thank you but again I think that's part of the conversation when it comes to the legality and the ethical use of this stuff. So if we have a solution that solves that for them. **system**: There's not so much if you know if Disney say we endorse epic's approach in terms of security. **system**: That actually makes their lives a hell of a lot easier than it does today. So I think there's some let's be let's just be transparent here like for a November release we will most likely focus on making sure the end to end workflow work from the end user. Are we going to get like all the backend security data and stuff? **system**: No, I'm just saying that when it comes to monetization. **system**: And it's going to depend about what type of deal we end up with luma on somebody else. **system**: But we have to expect that like the largest movie studio might just embrace it by bringing their own keys. And so for us it's more like a seat deal. It's not really a revenue subscription deal at this point. But we'll see depends about how Looma sees it. But right now we've not been able really to even discuss about that with them. **system**: Yeah I still think, you know I think I said to you at the beginning of your bill I still see this as certain. **system**: Students have been targeting may be less interesting because you know they can lean heavily on AI, but then a whole bunch of studios that weren't really something we could target suddenly become interested. And also just what it means for ad agencies and other companies as well. There's going to be a lot of startup production companies trying to utilize AI tools just for advertising and many other use cases, right? Like they need they need tools. We could put ourselves firmly in the spotlight for a lot of that stuff. Which means seats if it mean if it doesn't mean tokens. **system**: So that's kind of what we're shooting for is get something out there make make us make a splash of short make it you know we're just saying yesterday it's going to have some blowback as well as positive things too everyone's getting blowback on this stuff right now. And I think that's the thing we're just discussing as a team yesterday. I think there are some messaging in there that we should all collectively try and lean into to soften that blow a little bit. But I think we're all expecting just to shut up social media for a few weeks. **system**: And then next year you know the goal is that we want to try and continue making updates probably you know via plugins or however we choose to deploy in November. **system**: As we continue to sort of expand things out for ue6. **system**: I think we just got to start assuming we're going to launch the monetization. We're just going to start planning. I guess the eugene can work with the team. **system**: Laura and Stephen and team to figure out how. **system**: The building building is going to blow through the system. **system**: Yeah, I think for our use case, I mean you probably sell nutrients got some good stats together probably be good to have this follow up conversation with him and all of us. **system**: But you know between all of the video image and tripo and you know at mesh generation that's a that's a lot of tokens people are going to use to generate content for M&E. So there's a lot there's like a Merlin business cost meeting today that neither he nor I were invited to. **system**: He was asking me if oh I could get him into the meeting. I'm like, I don't know what you're talking about. I was chatting to him and I asked him said are you chatting to Bill about this I got we got a wise cross sorry I said I just painted back and said no we just need a separate conversation about this which we should have a good to organize that and talk that through. **system**: But that's that's our goal is to get something out in customers hands by the end of the year. **system**: Okay. **system**: I think this is complimentary to our animation stuff although 58 is going to be one of our biggest launches for animation. So there's a lot there's a lot there just in the more traditional tools. If 59 comes to fruition I think we'll try and squeeze in other updates that we can but otherwise the team will start shifting to six. **system**: Cool. **system**: All right we just have to start tracking that as an initiative across the, you know, across cross functional team start planning for it. **system**: The next no, no just then can do you have additional slides on the no that was it I just would like to mention because it's not there but when it comes to M&E let's not forget about what we've been doing for the last couple of release and 5.8 is going to be I think the strongest release we ever have for a minute when it comes to capabilities like yeah our internal teams are animating in engine we have what we think are the best animation tool right now on the market superior to maya we have performance capture in engine I could go on and on and on but let's not forget that 580 is super strong when it comes to M&E finally agreed we should be out there going with that very strong message. **system**: We need to dial that up in the script that I went through yesterday for real going back and forth with the DNS or maybe we can take another part of it together. **system**: And then I think Merlin you know by the end of the year I think hopefully just compliments all of that as well because it just gives us an edge you know suddenly level sets a lot of things that we've we've traditionally struggled with in terms of rendering capability. **system**: So I'm hoping you know if we can really showcase the level of control and having all the power of the tools behind it, it's going to create an interesting opportunity for us. **system**: Okay cool. **system**: Thanks. **system**: Okay great. **system**: I'm going to be super quick mainly because my flight is now boarding and I need to get out of this phone booth into my flight. **system**: The on the strategic partners again you know just trying to establish the enterprise kind of go to market framework so this is like more on like who we're focusing on as our partners and making sure that they're the correct revenue generating partners you know unity is a new tech partner is definitely part of it new HMI partner kanzi and starting to look at you know partner enablement programs on the channel side again we kind of covered it earlier but still looking to fill the gaps you know mainly focusing on getting the BDs to work more with the resellers Greg, I'm going to get you off the hook on this because we talked about almost everything on the slide in your enterprise section rock on but on the service partners I do want to pass it to Dana because Dana has some things there. **system**: Thanks. **system**: Sure so the the tldr here on this slide is that we've sort of worked to understand the the processes that were previously in place document those and then start to figure out how we can streamline operations even more service partners back up and running resuming you know plowing through this backlog and we've onboarded three new partners in the last 30 days and we have a pipeline of at least five more in the near term probably more once we work through a few more cases and we started plugging the holes is in terms of the service partner directory but we've figured out that a lot of it's kind of broken because it's hosted through Salesforce so thankfully duly and the training partners team they've had they have some really great work in flight that we can draft off of to move our directory over to the CMS. **system**: And have something that's a lot easier to maintain and then at the same time we're also working on better partner enablement and building out a marketing pipeline of excellent stories that we can tell throughout the rest of the year. **system**: Awesome. **system**: When we are working with these partners for service partners specifically on campaigns. **system**: Spotlights or they actually contributing marketing money. **system**: There has not been any money trading hands. **system**: But one thing that we are trying to do is enable them to lead more on the marketing so that we're not giving them brand template creative templates. **system**: And yeah pre approved pre-approved assets that they can run with. That's right. I like that approach. **system**: Yeah, I mean for the bigger partners. **system**: Like a Qualcomm there should be. **system**: Co-funding for service partners. **system**: Yeah absolutely absolutely. **system**: With Qualcomm we've been chatting with them about how do we get more of our content into their ABM campaigns? **system**: Things like that. **system**: Okay. **system**: Cool. **system**: And then just full transparency that red on the status that's not real right it didn't sound like it from your update. Oh no sorry I missed the color change there should be it should be green yeah it sounded green so I just wanted to get it updated thank you. **system**: Cool last but not least Laura with growing self service revenue. **system**: Yep this is a new kbi as of this month. **system**: So I have been pulling together a few different initiatives into what ultimately will be a coordinated suite of projects to kind of help improve UX payments compliance upgrades to help with revenue growth and remove some friction points across all of those areas and so breaking that down a little bit into three main pillars we have closing the ux gaps automating payment motions and improving compliance and then nestled further in there we have some more detailed projects broken down which we can go through. But these have kind of pulled together many working groups if you will so closing the ux gaps is kind of a sweet cross marketing with Samuel leading and Stephen Ellis kind of helping with the dev portal ux mika from design and bb from marketing I believe and so Samya can speak to the specifics on that in just a second. **system**: And then coming down to automate payment motions again another working group here which Craig kind of segued to earlier is across sales ops and the BD team dildes legal ops and lucas for ecom to look at standing up pay by invoice improving sales orders in general. There's a lot of clunkiness in Salesforce today so we want to improve some quality of life there for the BDs and getting those pushed through a little bit more quickly and easily automating some stuff for channel orders and deals under certain threshold and then also looking with Mitch and the rad tools getting them automated and kind of into the fold and in less of a kind of one person handling that whole scenario and then improving compliance is a joint effort across sales ops as well mat with finance and the geo heads where we're kind of looking at oh and Davin I should probably loop you into this from a data perspective along with Jesse Slater. But this is looking at. **system**: I think the team has had some really good processes in the past around going around royalty compliance and collection or not. And so what does that look like globally if we were to standardize across everybody? How do we enable the BD team to maybe go after or have some conversations around this if needed? **system**: And then we've started some conversations with data bricks about some data visibility improvements to kind of help with that whole lot. **system**: So pretty big breakdown of quite a few different coordinated initiatives coming together for this collectively. **system**: But when you discuss out what overall success metrics might look like we have some individual ones but we need to figure out what those ladder up to ultimately. **system**: So coming into the next slide for some specific updates. **system**: I'll hand it over to Samia to update on closing the gaps. **system**: Sure. **system**: So in the UX gaps department we did a couple of different audits to just sort of understand how the flow was performing. So all these different deliverables that you're seeing here are outputs of those audits. There's like Laura said line item, KPIs for each of them, but ultimately they are driving towards the goal of increasing clarity and reducing friction on the path to conversion. So whether it's buying a seat or reporting royalties trying to just make that easier for customers to do that. **system**: Regardless of sort of where they enter. So on the navigation front we are updating the site with a more prominent licensing CTA. We're trying to infuse more links to the dev portal as far as where that's at. Design is in final review right now. So hopefully that should be good to go pretty shortly. We're working on the redesigned licensing page. So right now trying to make that just a bit more scannable making the tiers easier to digest at a glance easier to find contact us and really like setting those royalty expectations in the upfront where that's at is an initial design concepting right now. **system**: Hoping that we can have something in the next couple weeks probably to have a stakeholder review and then legal review to see how that's coming together. The seat purchasing flow. So for this one we're taking the existing flow that right now lives between the UE site and then hops over to dev portal making that a lot tighter and clearer. So now all of the process of purchasing will exist on the Unreal Engine site. The data will continue to live in dev portal, but we are trying to make basically less jumps for the customer to purchase a seat. Mika's team is leading the charge on that effort. Design is already complete development is in progress for that right now. **system**: And then on the dev portal a bunch of different improvements in flight to support making the notification release form more visible, make royalty reporting more clear design right now is in progress. That audit just wrapped a couple weeks back and we're going to take a first look at that on Monday just to see where things are standing. **system**: And then github back over to you Lars. **system**: Yeah this one kind of snuck up for me personally but after talking with Nick Kreitman about maybe some possible launch or license flows, he suggested that we look at GitHub because it seems that more serious developers are likely to just pull from GitHub and work on their serious projects from there. So we've started a conversation with the team who maintains what we have in GitHub and we've pulled down what they have at the Epic Games level, what they have at the Unreal Engine repo level. And then on the specific readmes around licensing and all that good stuff to see if there's opportunity just to improve the language there. **system**: TBD, but we have some time if we do want to make adjustments at the GitHub level because it will coincide with the 58 release. So I will pull together some ideas for a group to look at and weigh in on if we want to make any changes to github and if so we'll roll it out with with 5. **system**: 8. **system**: The automate. **system**: I mean there's a bigger effort. I think SEP jumped, but there's a pretty. **system**: Big ask from from from a Tim review recently to like we had like an open source website. He just wants it all on one our GitHub. **system**: So there's a big push to redo the whole GitHub presence. **system**: And this would be a part of that. **system**: I'll follow up with Seb. I think Ryan Hummer is who we've been talking to so far just about. **system**: The repo level, but yeah. **system**: We could keep talking about him but the GitHub GitHub initiative that Tim. **system**: Pushed everyone to go pursue related to the open open source. **system**: Yeah, we are looking at three architecturing the way the repo heard so that we can separate what is gated behind the Euler versus the open source and have. **system**: The homepage of epic games on git as a kind of the entry point to our open source space. However while we are finding ways to make it happen, it means that we might have to switch to the github enterprise license and that's the one we have today and looks like we are talking about like seven digit prices for us to move to an enterprise license with git. So that's going to be a follow up on that one unless we have very good contact over there that can help us make a deal. **system**: But the price is pretty beefy to do what we want to do on kit. **system**: So garan is leading that effort right now if you if you want to talk to him directly. Laura is the right person to engage with. **system**: Payment motions. **system**: Channel and rad we've just started discussions on that with that cross functional group already talked about. So more to come on what what scope we actually pursue there and time frame. **system**: So we'll follow up on that. I think the more bulkier update here is for pay by invoice and we've got Lucas on if we have specific questions there but the short as of now is the dev team can start in July to implement stripe which will help with the full invoicing process that can launch in November. **system**: I think there are some open questions and approvals needed around the max purchase threshold per account. I think it was recommended to cap at 60k to start with after we release we can assess if we want to raise that. **system**: Another open question is around payment terms if we do a pay now via invoice or a pay later via invoice with either of those paths wait to grant customer entitlements until after payment that introduces some potential friction. And then option two is the net 30 term where we do the entitlement upfront. **system**: And invoice and wait for the payment. And if there is no payment on time there is a clawback process. **system**: In addition to that there's questions on the cost center for the budget as it's handled at a transaction level and what how do we want to allocate that. **system**: But that's where we're sitting for pay by invoice. I'll pause if there are questions and or if Lucas would like to add anything that I missed. **system**: Since. **system**: July will be starting July is just because we have another commitment with fortnite to enable like Disney plus and crew bundle. **system**: So right after we would start like the development, but the team is already working on a proof of concept just to make sure that everything is working with swipe and we have like all the documentation sandboxes and everything. **system**: So we should be done on time. **system**: Cool. **system**: And then our last section here is around improving compliance. And so this is something that we've been chatting with Matt Benson and Jason recently a little bit. JC Slater and a couple of the geo heads to look at. **system**: What processes do we have and what do we need to facilitate and get consistency on for BDs to kind of outreach some of these high grossing titles if they are reporting or not or ghosting what do we do about that and just getting a general baseline to work from. **system**: In addition to that bill I know you're aware we started talking with Databricks and so they followed up after our on site to talk about a proof of value. And so we are pulling together kind of a rough scope for what would be valuable for them to build for us. And I don't know if Matt, I still want to know how drop a little early but he kind of dubbed this is a licensee hub where we were going to see if they can kind of help pull together a unified licensee profile across active products, contract types, the lifetime lifetime revenue into royalties info. So a nice dashboard on the amounts outstanding payment history. **system**: Platform level splits region split. So we have a pretty lengthy wish list that we're pulling together and working with Jesse on to make sure we're compliant from a, you know, data object perspective. But the idea is to get them a scope to look at maybe end of this week with them to start pulling things together and to have a checkpoint before summer break to make sure it's meeting the mark of something that would be valuable for us. And then we would kind of figure out do we want to proceed or not beyond that. **system**: And it's the non billable POV so they're kind of just to prove some value right now. **system**: Thanks, Lars add one thing. So Databricks is it's seeming to be like the central hub for all epic data. So we're going to pipe workday data into it too as far as like I know, which means like, you know, Salesforce workday. **system**: Financials will all be one place. Like it's not there yet, but I think yeah, that's going to be great. **system**: Yeah. **system**: I mean, and just to add, I mean, I'm here, so I've got a few minutes, but I think this could be a really interesting opportunity to bring everything together, but also build like identify those. **system**: Areas where like we just have missing data, right? Like geo, for instance, like we want geo on royalty, it's like exceptionally on attribution basis platform. And that goes down to like, where do we want to be on a really strict reading of our compliance? Because we do ask licensees to report that at the moment, but they don't and we don't enforce it. So there's, there's some behaviors, some learnings. And I think having this all in one place in the hands of the business should help. **system**: Surface some of that. Been doing it a lot in the background. You've asked questions before other finance early, just ask questions as well. **system**: And it's always a bit of a an estimation or, you know, back of the back of the envelope kind of calculation. **system**: Well, women open question from Randy asking about revenue by jail right now. **system**: So yeah, yeah. And I think, Laura, if we haven't discussed this already, like in this bucket or this sub initiative, we should definitely have on the roadmap. **system**: The dev portal for custom licensees to report. **system**: Because we have it for EULA and there was literally an email to the council inbox. **system**: Where a custom licensee had reported the dev portal and we told them not to and they need to report via an Excel. You know, it just, it just crystallizes like, why do I need a separate process and why do I need a manual versus a system orientated process in this day and age? So we should definitely have that in. **system**: There. Yeah. **system**: All right. I think that takes us to the end for me at least. Yeah, that wraps KBI. So one additional thing that we did add, we have a few minutes or topic parking lot for. **system**: This cross functional team. **system**: So I didn't get names of who added these. So whoever wants to kick us off here with the item that they added. **system**: I didn't add it, but I'd like to upvote the messaging question. **system**: Messaging roadmap. It's been a very hot topic actually in slack. So yeah, why don't we tackle that third bullet point first? **system**: Which is messaging on our roadmap changes for post pipeline. **system**: Date. **system**: Yeah. **system**: I feel like. **system**: The cat's out of the bag. We're already getting people. **system**: I'm already hearing that people are inbound. **system**: Yeah. Seb, I think you're, you're hearing that. **system**: As well. At least people from your, your group have mentioned it. **system**: I think we still haven't collectively reviewed the, the list of licensees who we have made like five nine. **system**: Who have five nine dependencies. **system**: So look, we need to actually run through that. **system**: With. Yeah. I mean, I think that's important. But I also think we just need like. So that is in progress. We're like, we're working on that, I don't think that should be a dependency for like having messaging probably from marketing that's like, what are we saying about. **system**: Five eight being our last release? What are we saying happens after that? I mean, honestly, I think we're going to have to talk. We're going to have to address it at real fast. **system**: I think we need to address it before that though like Doug Payne was saying, I said we were hoping to have something by mid May and he was like, we can't wait that long. Like I'm getting questions constantly. Questions about is five eight. The last release because we are talking about doing a five nine and we don't know at this point what will go to the five nine really is. It could be that some of the mobile improvement we are doing in between and other stuff fits into that. I mean like on paper we are heavily shifting all the resources towards UE6, UEFN. And that's true. **system**: But saying that 5.8 is final final no more. **system**: I will not go that far. Well all we need to say is whatever is true. We need to have a message. Here's what here's what here's what's what's true like five eight. **system**: Well the five nine news is new is newish new sub two and it's seemingly like a little wishy washy. But I believe we're going to cut a five nine in my heart. **system**: But you know, I we might want to suggest that like five eight is a big big update. **system**: We're like one most big one we'll probably have another update. **system**: Before the end of the year. **system**: Beyond that the teams are. **system**: We could even suggest at like 2020 the teams are shifting to ue six. **system**: And all there'd be a lot of great updates, but they're going to happen in fortnite main and your teams are going to be able to. **system**: Like cherry pick and kind of so they just on that rollback a bit in the past. **system**: With issue 425 that was the last big release for ue4 and we announced ue5. We still have done for 26, 427 that were pretty light really this focusing on platform update SDKs key bugs and making sure m and e doesn't die. So going through that phase where for 18 months to 24 months we had no major release of a version towards a new one. We've just done that a couple of years ago and it was not the end of the world. **system**: Yes I agree we had a big demo supporting ue5s. There was a lot of hope and it was very visually appealing which we don't have right now. So that's to me one of the problem. **system**: That we can have to to navigate. I think we're still going to continue to maintain the SDK as a platform update. There's still going to be those type of work happening in five no matter what. I think that's going to be a five nine even if we try to resist to it because we don't want to shift priorities. **system**: We cannot just be out of M&E for so long. We have merlin coming. We have no release vehicle outside of five. So that's going to happen. And we could sneak some additional stuff. And as Bill mentioned we're going to put on github a UE6 branch main next to ue5 and people will start to see stuff happening and they could start to cherry pick some announcement that we are doing for ue6 for the ue5. I mean we had in especially in china and asia we had people taking from ue5 to ue4 for three or four years so I mean at the end of the day I don't think we have to I mean I understand there is like concerns and tension but we've kind of done that already before. **system**: The main thing. **system**: That I didn't add to the list but I agree that it's just like when are we going to we should have some messaging that we can align around so that everyone whose customer facing whether it's a BD or someone in support or whatever like that we all have that same crispness of this is what we're answering. **system**: I think Stacy we have to work on that. **system**: We're going to work on it. Lucia has it on her top of her list and we definitely need it before May 24th which is when we'll tease this ue6 thing with rlcs. **system**: So it's top of the list for us. **system**: Personally I'm in a I'm going to I'm in agreement with seb here. I would like to avoid us going out and saying 5.8 is the last like and I've been telling people who have been asking if they should. **system**: Tell clients now like telling them no don't do it like one we don't have the messaging too. We don't know exactly what's going to happen. And so I think that maintaining it as much as possible the expectation that we are still into five into ue5 and that if we don't do a 5.9 I'd rather communicate that later rather than communicate it sooner and kind of create the incident rather than manage an incident later on. **system**: But by the way side notes corgi 100% UE5 evil 100% I mean everything we are developing right now towards end of year is 100% UE5. So we're not abandoning the platform. **system**: Yeah, but isn't the difference with the cherry picking from six. **system**: That there isn't really or we don't know yet if there's necessarily an upgrade path like there was from four to five like aren't we aren't we telling people basically like you know four to five you could go like all right I'm not that far into development. I'm going to move to five. **system**: But we're really going to tell people this time like that's going to be an blueprint and the actor system as of now of course everything changed from a when we talk on the engineering plan. But as of today you're going to have to be able to take a UEFI project and migrate it to UE6 and it works. **system**: Okay. **system**: So actor system for now is part of the UE6 still supporting blueprints is part of it. **system**: Detailed to be defined with discussing that with a senior director with markers. **system**: But it's hard to say that we're doing the UE3 to ue4 tricks again. **system**: That's that's what I understood too so I'm happy I'm happy here saying this because there's a lot of people going out saying like it's completely the opposite. I've been telling people to hold their horses is not and not make our partners freak out. **system**: The first two release of UE5 were sheets. **system**: I got I got to go sorry a lack of information right now is to get figured out by May 24th something from from marketing or even a lot of them sounds good.