Efforts to improve operating focus and cost structure have resulted in two consecutive quarters of strong cash flow and profitability with Q1 2011 the most successful in Linden Lab’s history.



Regarding Customer Support, we made some changes late last year that unfortunately impacted Residents with longer resolution times. Over the last few months, we have worked through the backlog and have returned to 24- to 48-hour resolution times for nearly all types of issues. We continue to add resources and adjust processes to further improve resolution times and customer satisfaction, especially for more complex issues.



After launching the new SL Viewer with Basic and Advanced modes in late Q1 2011, and improving the new user registration experience in early Q2 2011, we have seen over 33% improvement in new daily completed registrations when compared to recent months. This is an early indicator that usability improvements are having an initial positive impact with more significant ones still to be delivered over the coming weeks and months.



In Q1 2011, measures of the size and strength of the Second Life Linden Dollar economy improved slightly while users, usage and world size were consistent with the last few quarters.



For a definition of the metrics in this charts below, please see this wiki page. Click on each image below to see a larger version.

DAILY COMPLETED REGISTRATIONS

There has been a positive trend since the new registration experience was introduced on April 11.

AVERAGE MONTHLY REPEAT LOGINS

Average monthly repeat logins have been virtually unchanged over the previous 3 quarters.

USER HOURS

Similarly, user hours have remained consistent over the last 3 quarters.

AVERAGE EXCHANGE RATE

The value of the Linden dollar has continued to improve from Q4 2010 and is at its highest level in the last 6 quarters.

*Note that the exchange rate is expressed in L$/USD, meaning larger numbers represent a lower L$ value and smaller numbers represent a higher L$ value. The average rate is calculated by dividing the total L$ exchanged through the LindeX by the total US$ exchanged through the LindeX in the quarter.

L$ SUPPLY

The US dollar value of Linden dollars held by Residents of Second Life has increased for the third consecutive quarter.

LINDEX VOLUME

In Q1 2011, the LindeX Volume was at its highest level in the last 6 quarters.