Ladies and gentlemen, thank you for standing by, and welcome to the Zynga First Quarter 2021 Results Conference Call. At this time, all participants are in a listen only mode. After the speaker presentation, there will be a question- and- answer session. To ask a question during the session, you'll need to press star one on your telephone. Please be advised that today's conference is being recorded. If you require any further assistance, please press star zero. I would now like to hand the conference over to your speaker today, Rebecca Lau, Vice President, Investor Relations and Corporate Finance. Please go ahead. Thank you, Josh. Welcome everyone to Zynga's first quarter 2021 earnings call. On the call with me today are Frank Gibeau, our Chief Executive Officer, and Gerard Griffin, our Chief Financial Officer. Shortly, we'll open up the call for live questions. Before we cover the safe harbor, please note that in an effort to keep our team members healthy, each member on today's call is dialed in remotely. We appreciate your understanding during the call. Hope that everyone is staying safe during this time. During the course of the call, we will make forward-looking statements related to our business plan and strategy, as well as expectations for our future performance. Actual results may differ materially from the results predicted. Please review the risk factors in our most recently filed Form 10-K, as well as elsewhere in our SEC filings for further clarification. In addition, we will also discuss non-GAAP financial measures. Our earnings letter, earnings slides, and when filed, our 10-Q will include reconciliations of our GAAP and non-GAAP financial measures. Please be sure to look at these reconciliations as the non-GAAP financial measures are not intended to be a substitute for or superior to our GAAP results. This conference call is being webcasted and will be available for audio replay on our investor relations website in a few hours. Now, I'll turn the call over to Frank for his opening remarks. Thank you, Rebecca. Good afternoon, everyone, and thank you for joining our Q1 earnings call. We are off to an excellent start in 2021, delivering record Q1 results and generating strong momentum across all aspects of our growth strategy. Today, we are also announcing our acquisition of Chartboost, a leading advertising and monetization platform with a proven track record of innovation in the ad tech industry. We could not be more excited to bring this talented team to Zynga, and we'll discuss the acquisition in more detail shortly. Execution across our multi-year growth strategy has driven our tremendous results to date, while providing strong momentum for additional growth ahead. In 2021 and beyond, we are focused on continuing to drive recurring growth from our live services foundation and launching new titles from our exciting new game pipeline. We are investing in incremental growth initiatives where we believe Zynga is uniquely positioned to capitalize on several mega trends in interactive entertainment. These new initiatives include hyper-casual games, cross-platform play, international expansion, and advertising technologies, all of which have the ability to meaningfully increase Zynga's total addressable market and capabilities to further grow our business. In Q1, we made significant progress against each of our growth initiatives. Strength across our live services drove record quarterly revenue of $680 million, up 68% year-over-year, and bookings of $720 million, up 69% year-over-year. While the majority of Zynga studios are continuing to operate in a work from home configuration, our teams are performing incredibly well and remain focused on delivering highly engaging experiences for our players. By delivering a steady cadence of bold beats, we are driving strong player engagement and monetization and are seeing these positive trends continue even as more countries begin to reopen. In Q1, we saw strong performances across our live services portfolio with user pay revenue and bookings up 62% and 63% year-over-year. Advertising revenue and bookings were also up 108% year-over-year. During the quarter, our social slots portfolio delivered its best revenue in bookings, led by a record performance from Hit It Rich! more than seven years after we launched the franchise in 2013. Our bold beat strategy is paying off in Toon Blast and Toy Blast with our recent feature introductions of Cooper's Rally and Hoop Shot, driving strong player engagement in both titles. Finally, Empires & Puzzles, Words With Friends, CSR2, and our Casual Cards portfolio all achieved record Q1 revenue and bookings. Second, our recent game launches are off to great starts, and we have more new releases planned for 2021. Starting with Harry Potter: Puzzles & Spells, this title continues to build momentum and is a meaningful driver of our year-over-year live services growth. To further scale the game in 2021 and beyond, we are continuing to invest in marketing and are introducing exciting new bold beats such as our Magical Mischief event, which encourages friendly competition between clubs with a new feature called Prank Boxes. In April, we launched Puzzle Combat worldwide, a new mobile match- 3 action RPG where players recruit heroes, build bases, and compete in PvP battles in a zombie-themed setting. Early player engagement is strong and gives us confidence in our ability to gradually scale the game over the coming quarters, the same strategy that we took with Empires & Puzzles. Our next release will be FarmVille 3 later this year. As the game progresses through its final stages of soft launch testing, we are pleased to see players engaging with its unique animal and farmhand features. At a time when people around the world are gravitating towards nostalgic experiences that build community, we are excited to bring back the iconic and beloved FarmVille brand to new and returning players. Later this year, we also plan to launch our recently announced Star Wars: Hunters game. This is an ambitious project that will deliver on a number of firsts for Zynga, including our first arena combat game, our first cross-platform play title, and our first game built in the Star Wars universe in collaboration with Lucasfilm Games. Third, hyper-casual is building strong momentum and proving to be an important driver of growth for Zynga. Rollic has seamlessly integrated into our Zynga family of studios, and in Q1, delivered its all-time best revenue and bookings quarter, while also leading the category as one of the fastest-growing hyper-casual game companies in the world. Year-over-year, Rollic has more than tripled its quarterly installs and now stands as one of the top five hyper-casual game publishers in the U.S. and top 10 in the world based on downloads in Q1. This exciting growth was powered by Rollic's unique publishing engine that leverages an extensive network of first-party and third-party developers to successfully create and launch new hyper-casual hits. In Q1, High Heels and Blob Runner 3D reached the number one and number two top free downloaded game positions in the U.S. App Store. Launched in April, Rollic's new game, Hair Challenge, is off to a tremendous start, reaching the number one top free downloaded games position in the U.S. App Store. Rollic is also attracting new audiences to Zynga's network by creating universally fun games that are trending in pop culture and on leading social platforms, including TikTok. Building on this momentum, we are expanding Rollic's development talent and games portfolio via incremental acquisitions, such as the Uncosoft studio. Fourth, we are making significant progress on our cross-platform play growth initiative, initially anchored on the Star Wars brand. In Q1, we announced that our first cross-platform play title, Star Wars: Hunters, will be coming to mobile and Nintendo Switch players later in 2021. In addition to providing a fresh new look into the Star Wars universe, this fast-paced arena combat game is specially designed for players who thrive on cross-platform play and social competition. During the quarter, we also welcomed Echtra Games to Zynga. This talented team has already started working on a new action RPG game for Zynga, which leverages their decades of experience in this category, as well as their proven cross-platform development tools and technologies. Fifth, Asia is becoming a key contributor to our international growth. In Q1, we delivered our best international revenue and bookings of 67% and 59% year-over-year. Our recent acquisitions of Toon Blast, Toy Blast, and Rollic, as well as our launch of Harry Potter: Puzzles & Spells, have all been key drivers of our international growth. Specifically, audiences in China are responding to our hyper-casual games, with High Heels and Blob Runner 3D both reaching the number one top free downloaded games position in the China App Store. While our presence in Asia is still in its early stages, it's great to see our content connect with audiences across the region, and we are excited to build on this momentum in the future. Finally, the acquisition of Chartboost dramatically accelerates the development of our advertising and monetization platform and greatly enhances the value of our first-party data. Chartboost reached a massive global audience of more than 700 million monthly users and runs over 90 billion monthly advertising auctions. Chartboost's unified advertising platform includes demand-side, mediation, and supply-side capabilities that are powered by proprietary technologies that optimize user acquisition and advertising yields. Chartboost has been a trusted partner of Zynga's for many years in numerous campaigns that have contributed to the strength of our live services portfolio. Together, Zynga and Chartboost possess all the elements of a complete next-generation platform. By combining Zynga's high-quality games portfolio with first-party data and Chartboost's proven advertising and monetization platform, we will create a new level of audience scale, strengthen our ability to navigate upcoming privacy changes, and meaningfully enhance our competitive advantage in the mobile ecosystem. Following the anticipated close of this transaction in Q3 2021, Chartboost is expected to be immediately accretive to Zynga, while also unlocking growth opportunities and synergies for our company in 2022 and beyond. Today, we are raising our full year 2021 revenue and bookings guidance, and over the coming years, we are confident in our ability to increase our total addressable market while driving strong top-line growth and margin expansion as we continue to execute on our growth initiatives. With that, I would now like to turn the call over to Gerard to discuss our Q1 results in more detail, as well as our outlook for the coming year. Thank you, Frank. We delivered record Q1 results ahead of our guidance and are off to a great start in 2021. Our strong performance reflects momentum across all aspects of our growth strategy. On the talent front, I would like to echo Frank and welcome the recently acquired Echtra studio to Zynga. This talented team brings extensive cross-platform experience and will be developing a new, yet to be announced, cross-platform play action role-playing game. As Frank noted, today we are also pleased to announce our acquisition of Chartboost. Later in this call, I will outline some further details on this transformational acquisition. Building on our strong execution to date and our roadmap for the balance of the year, we are raising our full year 2021 revenue and bookings guidance. First, let's discuss Q1 results. Revenue was $680 million, comprised of bookings of $720 million, offset by a net increase in deferred revenue of $39 million. Revenue was $45 million ahead of our guidance, driven by a $40 million bookings beat and a $6 million lower than expected net increase in deferred revenue. Live services drove our record top-line results, with stronger than anticipated performances from Rollic's hyper-casual portfolio, Toon Blast, Harry Potter: Puzzles & Spells, Toy Blast, and broad-based strength across the remainder of our live services. Revenue was up $277 million or 68% year-over-year, driven by bookings growth of $295 million, up 69% year-over-year, partially offset by an $18 million higher net increase in deferred revenue. Our year-over-year bookings growth was driven by our mobile live services, including full quarter contributions from Toon Blast, Toy Blast, Rollic's hyper-casual portfolio, and Harry Potter: Puzzles & Spells. The net increase in deferred revenue of $39 million was primarily driven by bookings from Harry Potter: Puzzles & Spells, Toon Blast, and Toy Blast. We end the Q1 with a deferred revenue balance of $780 million versus $453 million a year ago. Turning to Q1 operating expenses. GAAP operating expenses were $425 million, up $76 million or 22% year-over-year, while non-GAAP operating expenses were $354 million, up $145 million or 70% year-over-year. The primary driver of the year-over-year increase in GAAP and non-GAAP operating expenses was the step-up driven by incremental expenses from our acquisitions in 2020 and in Q1 of 2021. In particular, the increase was primarily attributable to marketing expenses from Toon Blast, Toy Blast, and Rollic's hyper-casual portfolio. Outside of this step-up for acquisitions, the other drivers were an increase in growth marketing, in particular on Harry Potter: Puzzles & Spells, and a slight ramp in R&D investment in our new game pipeline, including cross-platform play projects in development. GAAP operating expenses significantly decreased to 62% of revenue from 86%, principally driven by the lower contingent consideration expense year-over-year. Non-GAAP operating expenses represented 49% of bookings, in line with the prior year, with greater operating leverage in R&D and G&A, largely offset by higher marketing investments year-over-year. We reported a net loss of $23 million, $27 million better than our guidance and an improvement of $81 million versus our net loss of $104 million a year ago. The variance to guidance was primarily driven by our stronger operating performance, higher other income, and lower than expected net increase in deferred revenue, partially offset by higher than expected contingent consideration expense. The variance to prior year is heavily influenced by the lower contingent consideration expense and our stronger operating performance, partially offset by a higher amortization of acquired intangibles, net increase in deferred revenue and stock-based compensation. Our adjusted EBITDA was $123 million, $23 million better than our guidance and an increase of $55 million versus the prior year. The variance to guidance was primarily driven by our stronger operating performance and lower than expected net increase in deferred revenue. The variance to prior year was driven primarily by our improved operating performance and partially offset by a higher net increase in deferred revenue. We had an operating net cash outflow of $164 million versus a net operating cash outflow of $35 million in the prior year quarter. In the quarter, we executed the second of three annual installments to acquire the remaining 20% share interest in Small Giant Games, paying $240 million for an additional 6.7% interest. $250 million of this cash investment was classified as a use of operating cash flow and $25 million as a net cash used in financing activities. The final acquisition installment will be executed in Q1 of 2022. As of March 31st, we had approximately $1.36 billion of cash and investments, which we expect to use primarily to fund additional growth through acquisitions, including Chartboost and also payment of existing contingent consideration obligations. We also have $425 million available under our credit facility, which had no amounts outstanding as of March 31st. Now I would like to outline some additional points related to our transformational acquisition of Chartboost, a leading advertising and monetization platform. The purchase consideration is $250 million in cash, subject to customary closing adjustments. This purchase price represents a high single-digit net revenue multiple based on Chartboost's trailing 12-month performance and is compelling when compared to recent transaction multiples in the ad tech sector. While we expect to close this transaction in Q3 2021, subject to regulatory approvals, our Q2 and updated full year 2021 guidance, which I will outline shortly, does not assume any contributions or benefits from this acquisition. Once integrated, we expect the acquisition will be immediately accretive, contributing modestly to our top line and profitability for the second half of 2021. In 2022 and beyond, we expect our combined capabilities will unlock additional growth and margin expansion opportunities. As a starting point in 2022, this could deliver synergies and savings in the range of $20 million-$30 million. Now turning to guidance. We have developed our Q2 and full year 2021 guidance based on information available to us today, May 5th, 2021, and using a similar methodology to previous quarters. Given the higher level of volatility and uncertainty around the COVID-19 pandemic, there is the potential for a wider range of outcomes, both positive and negative, as it relates to the ultimate business results. That said, let's discuss our 2021 and Q2 guidance. Our updated 2021 guidance is as follows. Revenue of $2.7 billion, up $725 million, or 37% year-over-year, and an increase of $100 million versus our prior guidance. A net increase in deferred revenue of $200 million, down $95 million or 32% year-over-year and in line with our prior guidance. Bookings of $2.9 billion, up $630 million or 28% year-over-year, and an increase of $100 million versus our prior guidance. A net loss of $135 million versus a net loss of $429 million in the prior year, and an improvement of $15 million versus our prior guidance. Adjusted EBITDA of $450 million, up $184 million or 69% year-over-year and in line with our prior guidance. Given our strong Q1 delivery and the momentum in our live services, in particular in the hyper-casual category, we are raising our full year revenue and bookings by $100 million. We are maintaining our adjusted EBITDA in line with our prior guidance in order to invest further against growth initiatives. Specifically, we are investing additional marketing to scale new game launches as well as our hyper-casual games portfolio. We are also committing further resources to our new games pipeline, with specific focus on incremental investments in our expanded portfolio of cross-platform play projects. We continue to expect live services to drive most of our top line performance. Key drivers of the year-over-year growth will be full year contributions from Toon Blast, Toy Blast, Rollic's hyper-c asual portfolio, and Harry Potter: Puzzles & Spells, as well as modest growth across the remainder of our live service portfolio. This will be partially offset by declines in older mobile and web titles. Our guidance assumes modest initial top line contributions from our 2021 new game launches. We have also factored into our guidance that Apple's recent changes to IDFA will create some short-term pressure on advertising yields, primarily in Q2 and Q3. However, our teams have multiple strategies in place that should more than offset this potential headwind, including yield optimizations and opportunities to expand our advertising inventory. All in, we expect to meaningfully grow our advertising revenue bookings, driven primarily by a full year contribution from Rollic's hyper-casual portfolio, as well as some growth across the rest of the portfolio. We anticipate a modest increase in our gross margins due to a lower net increase in deferred revenue, as well as a higher mix of advertising versus user pay, partially offset by higher amortization expense from acquired intangible assets. While we expect to deliver strong absolute year-over-year growth and profitability and expansion in GAAP operating margins, we anticipate some compression in non-GAAP operating margins as we continue to invest in our growth strategies. In particular, marketing for our new game pipeline launches, hyper-casual momentum, as well as investment in our new game pipeline, in particular, cross-platform play game development. That said, we continue to expect improvements in operating leverage in R&D and G&A, which will be more than offset by higher marketing expenses. Turning to Q2, our guidance is as follows. Revenue of $675 million, up $223 million or 49% year-over-year. A net increase in deferred revenue of $35 million. Bookings of $710 million, up $192 million or 37% year-over-year. Our net loss is $30 million versus $150 million in the prior year quarter. Adjusted EBITDA of $115 million versus $70 million in the prior year quarter. Some factors to consider in assessing our Q2 guidance include, our top-line performance will be driven by our live services, including year-over-year additions of Toon Blast, Toy Blast, and Harry Potter: Puzzles & Spells, as well as existing and new hyper-casual games from Rollic. Our top-line guidance assumes modest initial contributions from Puzzle Combat and does not assume the launch of any additional new titles in Q2. Overall, we expect these year-over-year growth drivers to be partially offset by the anticipated short-term impact on advertising yields due to Apple's recent changes in IDFA and declines in older mobile and web titles. Please also note that in the prior year quarter, we experienced heightened levels of engagement and monetization as we all sheltered in place due to the COVID-19 pandemic. We expect gross margins to be modestly up year-over-year, primarily due to a lower net increase in deferred revenue and stronger advertising mix, partially offset by higher amortization expense from acquired intangible assets. Like Q1, we expect the primary drivers of the year-over-year increase in GAAP and non-GAAP operating expenses to be the step-up for incremental expenses from our acquisitions in 2020 and Q1 2021. Outside of this acquisition step-up, other drivers will be the increase in live service marketing, in particular on Harry Potter: Puzzles & Spells, as well as initial launch marketing on Puzzle Combat. We expect our GAAP operating expenses as a percentage of revenue to significantly improve year-over-year, primarily due to a lower contingent consideration expense, partially offset by higher stock-based compensation. Outside of these factors, we expect to see improvements in our year-over-year operating leverage in R&D and G&A, which should be more than offset by higher marketing expenses. In summary, we are pleased with our performance to date and the outlook for the balance of the year. We also believe that the positive momentum across all aspects of our growth strategy positions Zynga for multiple years of strong top-line growth and further margin expansion. With that, we would like to open the call for your live questions. Thank you. As a reminder, to ask a question, you will need to press star one on your telephone. To withdraw your question, press the pound key. Please limit yourself to one question and one follow-up. Our first question comes from Mike Ng with Goldman Sachs. You may proceed with your question. Hey, thank you very much for the question and the time. I really appreciate it. I was just wondering if you could talk a little bit about the acquisition of Chartboost and perhaps compare it to some of the other ad network peers that it competes with. Also, will you be changing your user acquisition strategy to direct more dollars towards Chartboost? Is that where you're getting a lot of the synergies? I just would love a little bit more detail there. Thank you. Hi, Mike. It's Frank. The first question about Chartboost is a really good one about our competitive positioning as we start to embrace and enter into the ad tech business in a much more aggressive way. Chartboost is a full stack, end-to-end complete platform. It has demand-side capabilities, mediation, as well as supply side. On a capability standpoint, it checks all the boxes from that perspective. In terms of the scale, 700 million monthly users, 90 billion auctions managed. That puts it in the middle of the pack. It's got some growth. There's some networks that are larger, but when you start to think about bringing Zynga into combination with Chartboost, the second part of your question is exactly right. As we move more of our advertising business into Chartboost's platform, that'll change the overall metrics and relative positioning competitively. In addition, one of the things that is really exciting for us is not only just moving the dollars into their networks and starting to save on the fees that we pay other networks to actually run those businesses. That's where a lot of the synergies will come from. A lot of the strategic benefit is going to come from the fact that our first-party data, when combined with their capabilities, will create a much more effective and leveraged platform. We'll be able to hopefully increase yields, drive better monetization and fill rates, and frankly, make the technology much more predictive about what will happen because we can see the full set of data now with what happens when people enter into the Zynga services. It's a very exciting acquisition. We expect to take the rest of 2021 working with Rich Izzo, who's the CEO of Chartboost, in integrating their platform, the SDK, the DSPs, all of the different components into our business, starting to flow more business their way, and then also look to ways to continue to grow the third-party business that Chartboost has. I think that we can increase the value of what they provide to partners and advertisers because of all the additional data and resources that we'll be providing to their team. It is a transformation of the company in many ways in terms of moving from a traditional developer and publisher of games only to a developer and publisher of mobile games, but now with a platform and an ad platform that puts us into a market that is growing very rapidly and is an extremely important part of the monetization and engagement that we run inside of Zynga's game. Very exciting time for us. Great. Thanks, Frank. I appreciate all the thoughts. Thank you. Our next question comes from Matthew Thornton with Truist Securities. You may proceed with your question. Hey, good afternoon, Frank and Gerard. Thanks for taking the question. Maybe two quick ones if I could. I guess just first, obviously with things starting to open up here, vaccines rolling out, just curious what you're seeing in the data and the trends through April into May, if there's anything you can compare and contrast markets that are maybe more open versus some that are still sheltered, just any learnings you might have on that front. Then just secondly, maybe Frank, just around Rollic, I'm curious now with two full quarters under the belt, I'm curious what you're seeing around, again, upsell in the funnel to higher LTV core Zynga games, and maybe if you can speak to just whether what you're seeing is contributing to the strong 1Q and raised outlook for the year. Just curious if that's already contributing or not. Any color there would be great as well. Thanks, guys. Sure. I think what's interesting about what's going on in this transition period between pandemic and post-pandemic for a lot of different countries and states is, we're continuing to see engagement rise for our games. When we look at our core products, each quarter, the last several quarters, we've seen a rise in core player engagement, which is what drives our business. That's for markets that are opening up, where people are going back to school, going back to work, returning to their normal lives. It appears they're taking mobile games with them. That experience that they had with them during shelter in place really opened up a lot of new markets, a lot of new players, and a lot of players that have been with us for a while. The value of the social connections, the entertainment, the flexibility of free-to-play mobile, being able to, frankly, take it with you, play it anytime you want. In economically dislocated times, it's a very efficient way to play games because you spend when you want to spend or you engage with advertising. I think the resiliency of what we build and offer as services is in a position where as things are kind of going back to normal in large parts of the world, we're not seeing step function drops in engagement. We're actually seeing increases in engagement. That might not be true forever, but certainly up through Q1, that has been the case. Your second part of your question about Rollic. What's really great about Rollic is they have an approach to the business that is very fast, very nimble. They look at what's happening in pop culture. They've innovated some really new, interesting techniques about how to partner with TikTok and bring to life their games there and build audiences both organically and also through paid acquisition. We're starting to see contributions from Rollic to our other games. It's a little too early to set rules of thumb here yet, but we are building good cohorts in Harry Potter from the Rollic hyper-casual games. We've seen a lot of new players coming into our network that have never played a Zynga game before. What's interesting is we're seeing that people play both hyper-casual and the more traditional mainline mobile games. They'll play both, and they're playing more games. That's an exciting part of what we're seeing inside of our audience in terms of MAUs is up 139% year-over-year. There's a lot of Rollic contribution there. Advertising was up 108% year-over-year. There's a lot of contribution there as well. I think just two quarters in, we're seeing very positive contributions from the team and they are continuing to really embrace building out their development community to the point where we're starting to acquire some of these developers and bring them in from a third-party relationship into internal studios, and that should continue to maintain growth for us. On both fronts, I feel like Q1 was a good quarter for the company on an engagement level for sure. Thank you. Our next question comes from David Karnovsky with JPMorgan. You may proceed with your question. Hi, thanks for the question. Frank, I was hoping you could maybe just discuss how Apple's changes to its privacy framework informed your decision to acquire Chartboost. Then maybe can you discuss how any insights you'll gain from ownership of an ad network might play towards your M&A or new game strategy? Yeah, it was a factor in the process of going out and thinking about how we build our platform. It wasn't a determinate variable, but it was certainly a factor. I think one of the things that we thought about was the value of having first-party data extend higher in the funnel through a lot of the things that ad tech companies do. We have this great first-party data around what our games and services do. Again, some of these games have been around for 12, 15 years, so we have really great, rich behavioral data of what people like, what they don't like. But it was a little opaque to us as we were doing third-party handoffs into our first party. Post-IDFA, a lot of that data handoff goes away. When you start to step into an opportunity like Zynga plus Chartboost, that data continues to flow all the way through because it's a first-party solution from demand all the way through in-game. From my perspective, it was a very clear opportunity for us to vertically integrate into ad tech. It would allow us to have a lot more information so that we can make better product decisions, better service decisions, better UA investment decisions. It would also tell us at the top of the funnel what's hot and what's not out there in terms of core trends in the marketplace long before it would start to appear in the charts. From our perspective, we look at the point of view of how do we maximize this combination of these two teams and what possibilities does it open it up for traditional game development, better investment decision-making? I think IDFA is a component of that. As we've moved through these last year and a half or so, the unfolding of GDPR and the California rules for privacy, we've embraced those. Our players care about privacy, and from our standpoint, that's a value of our company is that we also embrace that. As it changes the rules and how you operate, we're making those adjustments so that we can do both. That's really, it was a key part of the acquisition, but it wasn't the reason we did it. We had aspirations to increase the leverage and growth of our core advertising business, which was before this deal, largely an optimization ad stack for engagement combined with inventory in our games. Now by vertically integrating into this, we get a full view on it. I think just as importantly, we get a great engineering team from Chartboost of ad tech engineers and ad tech leaders that will add a lot of new DNA to Zynga and give us a lot of new points of view about how to grow in the mobile ecosystem over time. That's exciting for us as well. Great. Thank you. Thank you. Our next question comes from Eric Handler with MKM Partners. You may proceed with your question. Yes. Thank you very much for the question. Frank, I believe I heard you say you're looking at other games that have cross-platform capabilities. As you think about your business over the next two years, how many of your games that you launch or maybe currently have will add cross-platform play or include cross-platform play at launch? As a second part to that, how much incremental development costs go into that if you add cross-platform play? Yeah, I think the way to think about it is probably a handful. As we said, we're going to start by anchoring this on the Star Wars brand. We've looked at our NaturalMotion studio in combination with Echtra as the collection of developers that want to go after this. They're very experienced in the category and in the design. What works really in our favor from a cost and effectiveness standpoint is there's a lot of tools now that allow us to develop these, where the marginal cost to complete other platforms is quite low because Unreal and Unity do a lot of the heavy lifting for you. When that's combined with something like AWS or Azure and the emerging 5G networks, you can get the very high-performance games that will be able to be completed and playable across platforms simultaneously in a very efficient way. Now, we have started to investment spend in R&D against this idea. I think that we're not going to go for a huge platform shift of every game from Zynga is cross-play. It's really focused on the games that make the most sense, the brands that make the most sense, and that's where we're starting. As this unfolds over 2021, 2022, 2023, 2024, if this is really working, then it's possible to do more. We feel very good about increasing our total addressable market by going after this. I think that in addition to the tools and technologies which make this a reality for a company like ourselves, we have a real advantage in free-to-play and running live services. Which if you look at the largest, the multi-billion dollar franchises out there that are cross-play, they're free to play, they run live services, they're really good at live ops, and I think that that part of the equation for us is really important, and we're very excited to go in there with production values that are console quality and then start to bring together these audiences across all of these different platforms. I think there's a lot of really beneficial things that we can do there. Thank you very much. Thank you. Our next question comes from Doug Creutz with Cowen. You may proceed with your question. Hey, thanks. With the ad revenue being so strong in Q1, I'm noticing it was up sequentially from Q4, which is pretty rare. Can you give a sense of how much of that was driven by Rollic's success with some of their launches in Q1 versus just overall market conditions and anything else you may have been doing to help your ad pricing? Thanks. Hey, Doug, this is Gerard. Yeah. It was obviously a full quarter contribution from Rollic, but we also saw significant uplift in their performance given the titles they launched in the quarter. Versus the market, I think Rollic was really strong. When you think about Q1 advertising, and actually as we look at the rest of the year, we believe that the momentum we have in our hyper-casual business is going to be a very strong driver of our advertising growth. Okay, thanks. Thank you. Our next question comes from Drew Crum with Stifel. You may proceed with your question. Okay. Thanks, guys. Good afternoon. Frank, you gave us a lot of detail on the various new growth initiatives you've embarked upon. As you think about hyper-casual cross-platform ad tech and international, can you rank order the importance of these at 2021 and how you see that evolving over the next couple of years? Separately for Ger, you mentioned that the cash on the balance sheet that you're marked for acquisitions, including outstanding and contingent consideration. Can you remind us what that number is and the timing of those payments? Thanks. Yeah, Drew, the way to think about how the growth initiatives unfold is most of the growth this year is going to be delivered from live, our new game pipeline, and in addition, hyper-casual is obviously contributing, and will continue to contribute as we move through the rest of the year. Cross-platform really starts to happen towards the end of this year and starts to ramp over 2022 and 2023. That's where you'll start to see more of the games released, more of the platforms take hold in terms of more distribution there. International is kind of happening now. That's a contributing factor right now. We're running about 60%-40% international on the business right now, and we're seeing good growth in hyper-casual already. With regards to the final piece on ad tech, we're going to take the next six months or so of the year to start to integrate our businesses together with Chartboost. I think the synergies case starts to really take on an interesting level in 2022 and beyond. In 2021, we're going to start to test how we will operate together, to what degree can our resources leverage each other and start to look at the data plans and that sort of thing. When that deal closes, we'll be in a much better chance to integrate. Think about the ad tech platform really starting to take hold more in 2022 and beyond. Hi, this is Gerard. In terms of the contingent consideration, that liability is obviously for three parts. It's Gram, Small Giant, and Rollic, and it's just over $330 million as of the end of the quarter. Got it. Okay. Thanks, guys. Thank you. Our next question comes from Matthew Cost with Morgan Stanley. You may proceed with your question. Hi, guys. Thanks for taking the questions. I guess on Chartboost, over the long- term, when you get through this initial phase that you just mentioned about integrating the two businesses and shifting some of what you do externally or with what are currently third parties into Chartboost. Over the longer- term, how do you see the opportunity to basically serve yourselves as a publisher versus serving third parties and maybe growing an ad tech software revenue line within Zynga for serving publisher developers and then publishers that you don't own? Just separate from that, obviously international has been a huge success story for you guys. You just mentioned 40% of revenue coming from that angle. It seems like China is something that is gaining steam now. I think we've talked a lot in the past about Korea and Japan and other markets in Asia that have done well. Has your view on the China opportunity changed at all following some of the success you're seeing with the hyper-casual games there? Thanks. Yeah, I think on the first question, we are looking at how we integrate the first party and the third-party opportunities in a way that because Chartboost has a very vibrant and great third-party business right now. In fact, by bringing in our first-party data as well as other capabilities, it should improve their standing and competitiveness as a network for other parties inside the mobile ecosystem. Long- term, our view is that Chartboost plus Zynga creates a great platform for advertising and monetization that serves not only Zynga's needs, but also the broader mobile ecosystem. Companies that are in gaming or outside of gaming brand advertisers especially, will come to this network because we have a very unique set of audiences with predominantly women, busy adults, a very diverse product portfolio of games, combined with these capabilities that will improve over time as we bring the data together. That, from our perspective, is really important. How it's actually recorded, that we'll figure it out for another day. In terms of our goals, it is definitely about driving the advertising business, and a component of that will be advertising from assisting third parties in growing their businesses. I think as you look at the capabilities of what the platform has at Chartboost and what we can do with it going forward, that will only increase in value and importance. In terms of international success, China has always been an important market for us. It's just been one of those markets that we take a very patient approach to. We're not necessarily rushing into China. We're releasing games. Our hyper-casual games are doing very well there. As we develop the market opportunity in Asia, the prioritization of Japan and Korea a little bit higher than China, that could shift over time. It's just really making sure that we're not over-investing too quickly and getting over our skis here. It is exciting to see the audiences really start to build up, which is the first thing that we want to make sure is that our intellectual property really appeals to that audience and that we have the right type of live services model so that we can continue to sustain those. There's going to be more about China as we grow our company. It's an important market for us long- term. I think as you start to see more of the PvP experiences that we're building that are cross-platform, the PC market is very important in the Asian region. Having PC plus mobile experiences that work together is going to be another advantage for us as we start to build out that marketplace. Great. Thank you. Thank you. Our next question comes from David Beckel with Berenberg Capital Markets. You may proceed with your question. Great. Thanks so much. Just touching back on Chartboost, I was hoping we could dig in a little bit to the expected revenue synergy. I believe it was in 2022 of $20 million-$30 million. Can you describe for us the mechanics of that? Is that primarily serving ads through Chartboost instead of a third-party system and thereby eliminating the 15%-30% sort of fee that you've talked about in the past? What percentage of your inventory filled through that channel does that assume? Just as a second question, it's about Rollic. You talk a lot about the third-party partners. Can you explain a little bit how the third-party relationship works from a revenue monetization perspective, and what third-party acquisition means from a financial perspective in terms of outlay. Are these expensive acquisitions? Hi, this is Gerard. In terms of the benefits we outlined as it relates to post-integration and, more importantly, what you're referring to, 2022, the largest element of that is actually related to the user acquisition side of the equation, the demand side, where we will look to flow a larger percentage of our user acquisition spend through our own first-party platform, and obviously eliminate the fees we paid to our other partners. We don't intend to eliminate our other partners. They will continue to be trusted partners as we look to acquire users. We do anticipate putting obviously more of our own spend through our own DSP and generate profitability there. There is an element of ad monetization in the mix as well, because obviously we'll get the benefit from the third-party monetization. Initially, we're focused more on the user acquisition side, and ultimately, we'll look for synergies through both sides. We haven't indicated what the exact percentage is, you can assume it's going to be initially in the low double-digit range. I'm sorry, in terms of the acquisitions, can you repeat that part of the question? You're referring to Rollic? Yeah, sorry, just referring to Rollic. You mentioned a couple of studios that were recently acquired. What is the relationship with these third-party partners? Are you currently monetizing them, or do you have to acquire them to gain the benefit of those relationships? The studios and the games that have actually gone from third party to first party, they were partnerships we already had. In terms of the economics, the normal economics in a third-party relationship is there's a profit share, i.e., we, as in Rollic, our platform, we publish the game, we drive the monetization through advertising. We execute the marketing against these games. The net of bookings and marketing ultimately gets shared with the actual developer of the actual game. Those percentages can vary. In a situation where we bring the studio in-house or the game in-house, the quid pro quo is you buy the game or you acquire the studio and you eliminate that profit share, there's a stronger flow-through for Rollic and for Zynga obviously developing and publishing its own games. That's the core economics. The other obvious benefit is you're enhancing the talent base of our own hyper-casual studios as we think about new games going forward. Perfect. Very helpful. Thank you. Thank you. Our next question comes from Mario Lu, Barclays. You may proceed with your question. Great. Thanks. I have a couple questions. The first one, I wanted to expand on a question earlier. You guys mentioned most of the outperformance this quarter was from recent acquisitions and Harry Potter. I was wondering if you could share what the organic growth was for core Zynga titles, or just generally how those are trending. I think overall our business grew. It was up modestly in terms of if you were to take out the "Harry Potter," which we obviously believe is an organic title in our live service portfolio. Collectively, the portfolio grew, but the major drivers in the quarter were the year-over-year acquisitions. "Empires & Puzzles," "Words With Friends," "CSR2," "Casual Cards," they all had record Q1 revenue and bookings. There is strength across the portfolio, but I know I'm stating the obvious, it's an Irish thing. The full quarter contributions from Peak and Rollic, plus the very strong performance from "Harry Potter," helped improve the overall performance of live services. Got it. That makes sense. Lastly on the synergies from your recent acquisitions. You mentioned Rollic, you're already able to kind of cross-promote those titles with your other ones. In terms of Peak, with now iOS 14.5 and IDFA out live, is there an updated timeline on when and if we should expect advertising to be layered into both Toy Blast and Toon Blast? We're not going to disclose timing on that. It's something that the studio teams and the advertising teams are obviously working at. In the end of the day, the aim there is we do see an opportunity to deliver advertising from these games, but we're obviously working very patiently with the studio and the advertising teams to make sure we do it in a very strong player-first way. Got it. Thank you. Thank you. Our next question comes from Mike Hickey with The Benchmark Company. You may proceed with your question. Hey, Frank, Gerard, Rebecca, congrats on the quarter, guys. Thanks for taking my questions, appreciate it. I guess double-clicking on cross-platform game opportunities. You've had sort of a few more months, I think, on development. Just sort of curious if you're more or less encouraged that you can be successful or not in this effort. Maybe, I guess the second part would be the challenges of listing a new mobile game to cross-play versus an existing mobile game or with a player base that's already retained and monetized. I guess the comp would be you see a lot of successful mobile games off proven game IP that sort of seems to be an established relationship. It just seems like extra headwind with a new game versus an existing game trying to go on the console PC. Thanks, guys. Hey, Mike. Thanks for the question. The early testing on Hunters is very strong, very positive in our testing with consumers in play testing and in concept testing. We're very encouraged by the reception. The game was built with very high-quality assets from the outset. In terms of resolution of the models and the textures and everything, the fact that it's using Unreal allows it to kind of move across these platforms at a very high level of performance in terms of how it looks and feels, the frame rate, et cetera. What I think is really interesting for us is because we're building it on mobile simultaneously, a lot of the decisions around how live service is going to work and the free-to-play model is already built in, and we're not trying to basically downsize code to work from a high-end console to work on mobile. We're actually going the other direction where we're taking great production values, resing them up, increasing the performance on other devices. We actually think by building in that manner, we're going to see some real benefits for how the games perform, how they get adopted, and the fact that there's a lag between when something happens on one platform or another, we're going to get rid of that. It's really exciting to see the early reaction. I'm encouraged by the momentum that the teams have and where we've spent a lot of time on this project, and a lot of us have experience on consoles and PCs. I think that's why you see us reaching out and partnering with a company like Echtra and having them join Zynga is, they've just released games on multi-platform. They've done it in engine. They've run the service. They've kind of done it before, and that really helps raise the level of the entire effort inside of Zynga because their experience is so real and has happened just recently. From my perspective, that's the real positive, and I think for us, we're going to see how this goes, and we think that we have a lot of brands that will appeal across these platforms, and it does open up new opportunities for us in Asia by having PC versions of these games. Nice. Thanks, guys. Good luck. Thank you. Our last question comes from Brandon Ross with Lightshed Partners. You may proceed with your question. Hi. Thanks for taking the questions. Just one. As you guys are entering the ad tech world, is Chartboost the beginning of a multi-part build by, or should we just expect acquisitions from here on out to be back to the tried and true studio acquisitions that you've done in the past? Yeah, I think where we're at right now is we're very excited about Chartboost and integrating that team, letting the market unfold a bit here over the summer and see how things go with IDFA and the other aspects of returning from COVID. In terms of the shelter in place. Our business has a tremendous amount of organic growth opportunities, and we've got excellent capabilities now with Chartboost to help optimize and grow the business. We're not in any hurry or need to grow through additional M&A. Having said that, we're an acquisitive company. We are constantly looking at build versus buy options, and I think giving us a little bit of time to integrate Chartboost, work with their leadership team to understand what's possible in terms of what's next is certainly something that we don't rule out. At this point, we have nothing that we're thinking about. As it relates to the overall M&A environment, it's a global talent base. There's great games out there and great teams. Obviously, there's a lot of attention on acquisitions and ad tech and games right now. That increased competition is certainly clear and present. At the same time, we like our positioning. We like our track record. We like our appeal as a destination for developers. The proposition that companies can join us and grow faster together is proven through multiple examples now over these last few years. Dynamic time, exciting time. We're in a great position to make sure that we can grow the way we want to grow without getting forced into an acquisition because we think we have to do that. I don't believe that we're in that position. Thank you.