Core Viewpoint - Snail, Inc. will be participating in the Noble Capital Markets Emerging Growth Conference on June 4-5, 2025, presenting its business and engaging in one-on-one meetings with investors [1][2]. Company Overview - Snail, Inc. is a leading global independent developer and publisher of interactive digital entertainment, offering a premier portfolio of premium games across various platforms, including consoles, PCs, and mobile devices [3]. Event Details - The management team of Snail, Inc. is scheduled to present on June 4, 2025, at 2:30 p.m. Eastern time in a fireside-style Q&A format [2]. - Registration for the presentation and requests for one-on-one meetings can be made through the Noble Capital Markets conference website [2]. - A video webcast of the presentation will be available on the Company's Investor Relations website and Channelchek after the event [2]. Investor Contact Information - Investor inquiries can be directed to John Yi and Steven Shinmachi at Gateway Group, Inc. via phone or email [4].

Company Performance - Snail, Inc. (SNAL) reported first-quarter 2025 results with earnings and revenues exceeding the Zacks Consensus Estimate, although the bottom line declined compared to the prior-year quarter [1] - The company reported an adjusted loss per share of 6 cents, which was narrower than the consensus estimate of a loss of 11 cents, and compared to an adjusted loss of 5 cents in the prior-year quarter [4] - Quarterly revenues reached $20.1 million, surpassing the consensus mark of $18 million by 11.7%, and increased by 42.5% from $14.1 million in the year-ago quarter [5] User Engagement and Sales - Daily active users on Steam and Epic platforms increased by 16% year over year to 243,000, driven by new content releases for the ARK franchise [2] - Bookings totaled $22.2 million, up from $19.6 million in the prior-year quarter, attributed to the release of ARK: Survival Ascended DLC and previous launches [6] Financial Highlights - Gross profit for the quarter was $5.8 million, compared to $2.1 million in the prior-year quarter, while the net loss was $1.9 million, slightly higher than the $1.8 million loss reported in the prior-year quarter [7] - EBITDA for the quarter was a loss of $3.2 million, compared to a loss of $1.9 million in the prior-year period, influenced by various factors including an increase in income tax benefit [8] Strategic Initiatives - The company signed a memorandum of understanding with Mega Matrix to co-develop at least 10 short dramas, and soft-launched Salty TV to diversify content offerings beyond gaming [3] - Snail aims to expand its global footprint and deliver innovative cross-platform experiences across gaming and entertainment throughout 2025 [3] Balance Sheet - As of March 31, 2025, cash and cash equivalents amounted to $9.3 million, an increase from $7.3 million as of December 31, 2024 [9]

Core Viewpoint - Snail, Inc. reported a quarterly loss of $0.06 per share, which was better than the Zacks Consensus Estimate of a loss of $0.11, indicating a 45.45% earnings surprise [1] Financial Performance - The company posted revenues of $20.11 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 11.73% and showing an increase from $14.12 million year-over-year [2] - Over the last four quarters, Snail, Inc. has exceeded consensus revenue estimates two times [2] Stock Performance - Snail, Inc. shares have declined approximately 39.3% since the beginning of the year, contrasting with the S&P 500's gain of 0.1% [3] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating expectations of underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.02 on revenues of $26 million, with a breakeven point at $101 million in revenues for the current fiscal year [7] - The trend of estimate revisions for Snail, Inc. has been unfavorable leading up to the earnings release [6] Industry Context - The Gaming industry, to which Snail, Inc. belongs, is currently ranked in the bottom 42% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact investor sentiment [5]

Financial Data and Key Metrics Changes - The company reported revenues of $20.1 million for Q1 2025, a 42.5% increase compared to $14.1 million in Q1 2024 [5][20] - Bookings increased by 13.6% to $22.2 million compared to $19.6 million in the same period last year [22] - The net loss for Q1 2025 was $1.9 million, slightly higher than the loss of $1.8 million in Q1 2024 [21] - EBITDA for the quarter was a loss of $3.2 million, compared to a loss of $1.9 million in the prior year period [22] Business Line Data and Key Metrics Changes - Total units sold increased by 45% to 1.5 million, primarily driven by the flagship ARC franchise [5] - The ARC mobile edition surpassed 4.8 million downloads across iOS and Android platforms as of March 31, 2025 [7] - The mobile version had an average daily active user (DAU) of approximately 144,000 [7] Market Data and Key Metrics Changes - PC gaming accounted for approximately 48% of revenue in 2024, compared to 41% from consoles [25] - The company noted that the mobile game will help offset broader economic effects due to tariffs, as it lowers the barriers to entry for new players [25] Company Strategy and Development Direction - The company is focused on expanding its content portfolio and growing its presence in the global short drama industry through a partnership with Mega Matrix [10][11] - The upcoming ten-year anniversary of the ARC franchise will be celebrated with new releases and announcements [26] - The company aims to diversify its revenue streams by exploring new business opportunities and expanding into adjacent genres and emerging platforms [19][26] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the impact of tariffs, noting that while direct effects are limited, indirect effects may influence consumer spending [24][25] - The gaming industry has historically shown resilience in the face of economic uncertainty, and the company remains confident in its ability to adapt [25] - The focus remains on delivering innovative and engaging experiences across diverse platforms and game styles [26] Other Important Information - The company deferred $3.3 million less in sales during Q1 2025 compared to the same period last year, as most ARC Survival Ascended DLCs have been released [20] - The company is actively investing in scalable growth opportunities and aims to deliver high-margin microtransactions through its mobile offerings [39] Q&A Session Summary Question: Can you discuss your approach to revenue diversification? - The company is exploring and investing in new games and businesses, including a short drama initiative and several game releases expected to contribute to revenue diversification [28][30] Question: What are the revenue implications of the MOU with Mega Matrix? - It is too early to measure potential revenue contributions from the short drama business, but there are plans to co-develop at least 10 drama series over the next twelve months [31][34] Question: Can you elaborate on the increase in advertising and marketing costs? - Marketing expenditures are expected to increase due to a larger portfolio and participation in events like GDC, but the company does not anticipate such significant quarter-over-quarter increases moving forward [35][37] Question: How should investors view the approach to achieving positive net income? - The company focuses on cost control and diversified monetization strategies, including outsourcing development functions and expanding into new revenue streams [38][39]

Financial Data and Key Metrics Changes - The company reported revenues of $20.1 million for Q1 2025, a 42.5% increase compared to $14.1 million in Q1 2024 [5][20] - Bookings increased by 13.6% to $22.2 million compared to $19.6 million in the same period last year [22] - The net loss for Q1 2025 was $1.9 million, slightly higher than the loss of $1.8 million in Q1 2024 [21] - EBITDA for the quarter was a loss of $3.2 million, compared to a loss of $1.9 million in the prior year [22] Business Line Data and Key Metrics Changes - Total units sold increased by 45% to 1.5 million, primarily driven by the flagship ARC franchise [5] - The mobile segment saw significant growth, with ARC Ultimate Mobile Edition achieving 4.8 million downloads and an average daily active user count of approximately 144,000 [7][20] Market Data and Key Metrics Changes - PC gaming accounted for approximately 48% of revenue in 2024, compared to 41% from consoles [24] - The company noted that the mobile game segment helps offset broader economic impacts, as it lowers the barriers to entry for new players [24] Company Strategy and Development Direction - The company is focused on expanding its content portfolio and diversifying revenue streams, including a new short drama business [10][19] - Upcoming releases and announcements are planned to celebrate the ten-year anniversary of the ARC franchise, with a focus on engaging a broader audience [26] - The company aims to invest in scalable growth opportunities across adjacent genres and emerging platforms [26] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the impact of tariffs on the business, noting that while direct impacts are limited, indirect effects could influence consumer spending [23][25] - The gaming industry has historically shown resilience in the face of economic uncertainty, and the company remains confident in its ability to adapt [25] Other Important Information - The company has signed an MOU with MacMetrix Inc. to co-develop at least 10 short drama series over the next twelve months [10][34] - The company is actively exploring new business opportunities and expanding its indie publishing label, Wandering Wizard [19] Q&A Session Summary Question: Can you discuss your approach to revenue diversification? - The company is exploring and investing in new games and businesses, including a short drama initiative and several new game releases [28][30] Question: What are the revenue implications of the MOU with Mega Matrix? - It is too early to measure potential revenue contributions, but the MOU involves co-developing at least 10 drama series over the next year [31][34] Question: Can you elaborate on the increase in advertising and marketing costs? - Marketing expenditures have increased due to a larger portfolio and participation in events like GDC, but the company does not expect such increases to continue in the upcoming quarters [36][38] Question: How should investors view the approach to achieving positive net income? - The company focuses on cost control and diversified monetization strategies, including outsourcing development and expanding into new revenue streams [39][40]

Financial Performance - For the three months ended March 31, 2025, the company generated net revenue of $20.1 million, a 42.5% increase from $14.1 million in the same period of 2024[188]. - The company reported a net loss of $1.9 million for Q1 2025, slightly higher than the $1.8 million loss in Q1 2024[188]. - Net revenues for the three months ended March 31, 2025, increased by $6.0 million, or 42.5%, compared to the same period in 2024, driven by increased sales of ARK products and a reduction in deferred sales[210]. - Gross profit for the three months ended March 31, 2025, was $5.8 million, reflecting a significant increase of $3.8 million, or 181.9%, from $2.0 million in 2024[209]. - EBITDA for the three months ended March 31, 2025, decreased by $1.3 million, or 75.5%, primarily due to an increase in income tax benefits and a slight increase in net loss[234]. Revenue Sources - The ARK franchise accounted for 91.6% of total revenues in Q1 2025, up from 78.6% in Q1 2024[187]. - Daily active users for ARK: Survival Evolved and ARK: Survival Ascended averaged 243,000 in Q1 2025, compared to 209,000 in Q1 2024, representing a 16.2% increase[187]. - The company sold 1.5 million units of games in Q1 2025, an increase of 36.4% from 1.1 million units in Q1 2024[191]. - The ARK franchise has achieved 96.3 million installs on consoles and PCs as of March 31, 2025[187]. - Bookings for the three months ended March 31, 2025, increased by $2.6 million, or 13.6%, compared to the same period in 2024, due to new game releases[228]. Expenses - Cost of revenues for the three months ended March 31, 2025, rose by $2.2 million, or 18.4%, compared to the same period in 2024, primarily due to increased software license royalties related to higher ARK sales[211]. - General and administrative expenses increased by $2.6 million, or 117.5%, for the three months ended March 31, 2025, largely due to higher salaries and stock compensation expenses[213]. - Research and development expenses rose by $1.8 million, or 103.2%, for the three months ended March 31, 2025, as the company expanded its internal development team[214]. - Advertising and marketing expenses surged by $1.2 million, or 826.3%, for the three months ended March 31, 2025, attributed to increased presence at industry events and marketing campaigns[215]. Cash Flow and Financing - As of March 31, 2025, the company's unrestricted cash was $9.4 million, an increase from $7.3 million as of December 31, 2024[236]. - Net cash flows provided by operating activities decreased by $6.0 million, totaling $0.8 million for the three months ended March 31, 2025, compared to $6.8 million for the same period in 2024, representing an 88.5% decline[242]. - Net cash flows used in investing activities were $1.9 million for the three months ended March 31, 2025, compared to none in the same period of 2024[248]. - Financing activities generated $3.1 million in net cash flows for the three months ended March 31, 2025, a significant increase from the $5.9 million used in financing activities in the same period of 2024[249]. - The company issued convertible notes with a principal amount of $3.3 million in February 2025, maturing in February 2026[239]. Future Plans and Developments - The company plans to release a new DLC, ARK: Aquatica, in June 2025, as part of the 10-year celebration of ARK: Survival Evolved[200]. - The newly released DLC map ARK: Astraeos sold 253,000 units across platforms since its launch in February 2025[199]. - The company has released 49 short film dramas through its Salty TV mobile application and expects to continue rolling out new content throughout 2025[201]. - The company has established a new division under the Interactive Films brand to focus on creating content in the vertical short film segment[190]. Accounting and Compliance - The company is classified as an "emerging growth company" and is eligible for exemptions from various reporting requirements, including reduced disclosure obligations regarding executive compensation[270]. - The company will remain an emerging growth company until it meets certain criteria, including total annual gross revenue of at least $1.235 billion or a market value of common stock held by non-affiliates exceeding $700 million[273]. - The company is also classified as a "smaller reporting company," allowing it to take advantage of scaled disclosures as long as its voting and non-voting common stock held by non-affiliates is less than $250 million[274]. - The company recognizes deferred revenues based on estimates of release dates and technical support obligations, which may change and impact financial statements[266]. - Deferred income tax assets are based on estimates of future taxable income and the utilization of tax loss carryforwards, which require significant judgment and may materially impact financial statements[268]. Risks and Estimates - The company expects accounts receivable from SDE Inc. to be repaid within the next two fiscal years, with outstanding balances of $6.0 million as of March 31, 2025[246]. - The company is projected to fail its debt covenants within the next 12 months, leading to the classification of the long-term portion of its promissory note as current[239]. - Changes in estimates related to release schedules and technical support obligations could materially affect the classification of deferred revenues[266]. - The company reviews its estimates on an ongoing basis to ensure they reflect changes in business or new information[265]. - The company has elected to delay the adoption of certain accounting standards, which may result in its financial statements being less comparable to those of other public companies[272].

Financial Performance - Net revenues for Q1 2025 increased by 42.5% to $20.1 million compared to $14.1 million in Q1 2024, driven by a $2.7 million increase in total ARK sales and a $1.3 million increase in ARK Mobile sales[8] - Bookings for Q1 2025 rose by 13.6% to $22.2 million from $19.6 million in Q1 2024, attributed to the release of ARK: Survival Ascended DLC and other titles[10] - Revenues for Q1 2025 reached $20,110,872, a 42.5% increase from $14,115,729 in Q1 2024[25] - Gross profit for Q1 2025 was $5,847,527, compared to $2,074,031 in Q1 2024, reflecting a significant improvement[25] - The company reported a gross margin of 29.1% for Q1 2025, up from 14.7% in Q1 2024[25] User Engagement - Daily active users for the ARK franchise increased by approximately 16% to 243,000 on Steam and Epic platforms compared to the same period in 2024[7] - Average daily active users for ARK Mobile totaled 143,976 during the three months ended March 31, 2025[6] - ARK: Ultimate Mobile Edition surpassed 4.8 million downloads as of March 31, 2025, indicating strong momentum since its launch[6] Expenses and Losses - The net loss for Q1 2025 was $(1.9) million, slightly higher than $(1.8) million in Q1 2024, due to increased costs in revenues and operating expenses[9] - EBITDA for Q1 2025 was $(3.2) million, compared to $(1.9) million in Q1 2024, reflecting increased operating costs[11] - Total operating expenses increased to $9,948,365 in Q1 2025 from $4,281,930 in Q1 2024, primarily due to higher general and administrative and R&D costs[25] - The company reported a net loss of $1,946,963 for Q1 2025, compared to a net loss of $1,780,458 in Q1 2024, indicating an increase in losses of approximately 9.4% year-over-year[28] Cash Flow and Assets - As of March 31, 2025, unrestricted cash was $9.4 million, up from $7.3 million as of December 31, 2024[12] - Cash and cash equivalents increased to $9,359,116 as of March 31, 2025, up from $7,303,944 at the end of 2024[22] - Total assets grew to $64,497,227 as of March 31, 2025, compared to $62,193,364 at the end of 2024[22] - Cash and cash equivalents at the end of Q1 2025 were $10,294,116, down from $17,186,039 at the end of Q1 2024, reflecting a decrease of 40.2%[28] Financing and Investments - The company generated $3,137,454 in net cash from financing activities in Q1 2025, a turnaround from a net cash used of $5,886,281 in Q1 2024[28] - The company incurred net cash used in investing activities of $1,879,002, primarily due to software acquisitions totaling $1,702,000[28] - Deferred revenue increased by $2,138,026 in Q1 2025, compared to a decrease of $4,723,462 in Q1 2024, indicating a positive shift in revenue recognition[28] Strategic Initiatives - The company signed a Memorandum of Understanding with Mega Matrix Inc. for the joint development of at least 10 short dramas, enhancing its content portfolio[5] - The company plans to expand its global reach and invest in scalable growth while commemorating the 10-year anniversary of ARK: Survival Evolved[7] Other Financial Metrics - The weighted-average shares used to compute basic loss per share for Class A common stockholders increased to 8,442,025 in Q1 2025 from 7,957,031 in Q1 2024[26] - The company recorded a total comprehensive loss of $1,891,708 for Q1 2025, compared to $1,799,755 in Q1 2024[25] - Interest paid during the period was $97,260, down from $171,101 in the previous year, showing a reduction of approximately 43.1%[29] - The company converted liabilities of $323,113 to equity during the period, reflecting ongoing efforts to strengthen its balance sheet[29] - The fair value of notes recorded in accumulated other comprehensive income increased by $22,023, indicating potential gains in financial instruments[29]

Core Insights - Snail, Inc. reported a strong financial performance for Q1 2025, with net revenues increasing by 42.5% to $20.1 million compared to $14.1 million in Q1 2024, driven by growth in the ARK franchise and mobile game sales [7][8][9]. Game Portfolio Updates - The ARK franchise saw a 16% increase in daily active users, reaching 243,000 on Steam and Epic platforms [5]. - Units sold for ARK: Survival Evolved were approximately 690,775, while ARK: Survival Ascended sold around 751,960 units in Q1 2025 [6]. - ARK: Ultimate Mobile Edition surpassed 4.8 million downloads, indicating strong momentum since its launch [6]. Business Updates - The company signed a Memorandum of Understanding with Mega Matrix Inc. for the joint development and distribution of short dramas, marking a strategic expansion beyond gaming [4][5]. - The soft launch of Salty TV, a mobile short film platform, currently hosts 49 short dramas, supporting the company's diversification efforts [5]. Financial Highlights - Net loss for Q1 2025 was $(1.9) million, slightly higher than $(1.8) million in Q1 2024, attributed to increased costs in revenues and operating expenses [8]. - Bookings increased by 13.6% to $22.2 million, driven by new DLC releases and other game launches [9]. - EBITDA for Q1 2025 was $(3.2) million, compared to $(1.9) million in the same period last year, reflecting higher operating costs [10]. Cash Position - As of March 31, 2025, the company had unrestricted cash of $9.4 million, up from $7.3 million at the end of 2024 [11].

Core Viewpoint - Snail, Inc. will hold a conference call and webcast on May 14, 2025, to discuss its financial results for Q1 2025 [1]. Company Overview - Snail, Inc. is a leading global independent developer and publisher of interactive digital entertainment, offering a portfolio of premium games across various platforms including consoles, PCs, and mobile devices [3]. - The company is publicly traded on Nasdaq under the ticker SNAL [3]. Event Details - The conference call and webcast will take place at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) [1]. - The event will include a question-and-answer period following the management's presentation [2]. - Participants can access the live webcast and replay through the company's investor relations website [2].

Core Insights - Snail Games has reported strong performance in April 2025, highlighting the expansion of the ARK series, significant updates for Bellwright, and the release of multiple IPs under its independent game publishing brand, Wandering Wizard [1][2][5]. Group 1: ARK Series Updates - The company is enhancing its flagship sandbox survival IP, ARK: Survival Evolved, with two major content updates and is preparing for its tenth anniversary celebration, including the anticipated new expansion map DLC, ARK: Aquatica [2][9]. - The quarterly event, Eggcellent Adventure, has returned, emphasizing the importance of seasonal activities in maintaining player engagement [7]. Group 2: Bellwright Milestone - April 2025 marks the one-year anniversary of the Bellwright demo, with a major update introducing new content and features requested by players, reflecting the company's commitment to long-term support and scalable IP growth [3][4]. Group 3: Wandering Wizard Developments - Wandering Wizard has released two new horror games, The Cecil: The Journey Begins and Chasmal Fear, showcasing the creativity of independent developers and expanding its product line [5]. - The acquisition of the publishing rights for Whispers of West Grove aligns with the company's strategy to discover independent IPs with natural growth potential [6]. Group 4: Game Experience Enhancements - The introduction of a comprehensive fishing system and new exploration locations has enhanced the immersive experience of the games, while over 25 new quests have been added to improve player retention [8].