Summary of Snail Inc. Conference Call Company Overview - **Company Name**: Snail Inc. - **Ticker Symbol**: SNAL - **Industry**: Video Game Development and Publishing - **Founded**: 2009 - **Public Listing**: NASDAQ since November 2022 - **Core Product**: Leader in sandbox survival genre, notably with the game ARK: Survival Evolved [2][3] Financial Performance - **2024 Net Revenue**: $85 million - **Units Sold**: 4.7 million [3] - **Historical Revenue**: Close to $1 billion in gross revenue from the ARK franchise [7] - **Daily Active Users**: Peak of 1.1 million in June 2022 [7] - **DLC Conversion Rate**: 54%, indicating strong engagement with downloadable content [9] Market Context - **Gaming Market Growth**: Expected to reach $200 billion by 2027 with approximately 4 billion players [6] - **User Engagement**: 42% of gamers are highly engaged, averaging 380 hours of playtime [8] Strategic Initiatives Growth Strategy 1. **Gaming Extension**: Focus on existing IPs, new DLCs, and licensing new IPs [11] 2. **Product Expansion**: Improve profitability through cost control and internal R&D [13] 3. **Stablecoin Initiative**: First gaming company to issue stablecoins, aiming to integrate with Snail's ecosystem [11][15] Upcoming Releases - **Major Releases**: One major DLC in late 2025 and two new IPs in 2026 [12] - **Licensing Agreements**: Anticipated nine releases in 2025, including Echoes of Elysium and Honeycomb: The World Beyond [12] Digital Assets and Stablecoin - **Stablecoin Market**: Current supply of approximately $170 billion, expected to reach $1.4 trillion by 2030 [15] - **Regulatory Environment**: The Genius Act provides clearer guidelines for stablecoin issuance [15][23] - **Strategic Goals**: Build a rewards ecosystem that ties gaming and cryptocurrency [15][24] User Engagement and Marketing - **Short-Form Video Content**: Entering the short video space to enhance user engagement and diversify revenue streams [20] - **Animated Series**: Launched on Paramount+ to attract new audiences beyond gamers [27] Operational Efficiency - **Development Costs**: Focus on lean operations with a mix of internal and outsourced development [17][18] - **R&D Focus**: Emphasis on internal R&D to drive revenue growth while managing costs effectively [13] Conclusion - Snail Inc. is positioned for growth in the gaming industry with a strong focus on user engagement, innovative product offerings, and strategic entry into the stablecoin market. The company aims to leverage its existing IPs while expanding its digital ecosystem to enhance profitability and market presence [11][15][20].

Core Insights - Snail, Inc. has achieved significant portfolio milestones across its publishing labels, emphasizing its strategy for broad market engagement and growth [1][7] - The company is actively expanding its presence in various gaming genres and platforms, showcasing its ability to deliver diverse content [7] Group 1: Product Launches and Updates - Snail Games, in collaboration with Studio Sirens, released the updated ARK DevKit on Epic Games Store, supporting user-generated content for ARK: Aquatica DLC, with ARK: Survival Evolved selling approximately 1.2 million units in Q2 2025 and reaching a peak DAU of over 258,000 [2] - The action-adventure RPG Robots at Midnight will debut on PlayStation, launching with a 30% promotional discount across multiple platforms to attract new players [3] - The company presented Honeycomb: The World Beyond at Gamescom 2025, confirming a release date of November 6, 2025, and utilizing NVIDIA technology to enhance gameplay [4] - Snail's indie branch Wandering Wizard will showcase Rebel Engine at PAX West, highlighting the collaboration with Latin American developers to emphasize the region's growing influence in gaming [5] - The Interactive Films label will launch The Fame Game: Welcome to Hollywood on September 4, 2025, tapping into the demand for narrative-driven interactive entertainment [6] Group 2: Strategic Initiatives - The milestones achieved reflect the strength of Snail's multi-label publishing strategy, demonstrating its capability to engage across multiple genres, platforms, and regions [7] - The company continues to broaden its market presence through global showcases, high-profile collaborations, and diverse publishing partnerships [7]

Core Viewpoint - Snail, Inc. reported a transformative second quarter in 2025, marked by a strategic initiative to develop a proprietary stablecoin, alongside strong performance in its gaming portfolio, particularly the ARK franchise [7][8]. Financial Highlights - Net revenues for Q2 2025 increased to $22.2 million, up from $21.6 million in Q2 2024, driven by a $3.3 million increase in total ARK sales and $3.0 million from ARK: Survival Ascended included in a subscription program [9]. - The net loss for Q2 2025 was $(16.6) million, compared to a net income of $2.3 million in the same period last year, primarily due to increased costs and a $12.9 million valuation allowance against deferred tax assets [10]. - Bookings for Q2 2025 rose 18.5% to $27.1 million, compared to $22.9 million in Q2 2024, attributed to sales promotions and the presale of ARK: Lost Colony [11]. - EBITDA for Q2 2025 was $(2.4) million, down from $3.1 million in Q2 2024, reflecting the increased net loss and higher tax provisions [12]. Game Portfolio Updates - ARK: Survival Evolved sold approximately 1,196,583 units in Q2 2025, with an average daily active user (DAU) of 156,947 [6]. - ARK: Survival Ascended achieved approximately 807,065 units sold, with 8 million downloads via PlayStation Plus in May 2025 [6]. - ARK Mobile surpassed 6.9 million downloads, with an average DAU of 104,135 [6]. Business Updates - The company announced the establishment of Snail Coins LLC to manage its USD-backed stablecoin project and other digital asset initiatives [6]. - A Memorandum of Understanding was signed with Mega Matrix Inc. for the joint development and distribution of short dramas [6]. - The company launched its annual Steam Publisher Sale Event, which significantly boosted sales in June [8]. Management Commentary - The co-CEOs emphasized the importance of the stablecoin initiative as a strategic evolution in the business model, aligning with digital financial innovation trends [7]. - They highlighted the strong performance of the ARK franchise and the commitment to regular content updates and expansions [8].

Core Insights - The ARK franchise, particularly ARK: Survival Evolved, experienced a significant sales increase of over 3,800% in June 2025, driven by a recent Steam Publisher Sale [2] - Snail Games is leveraging partnerships in the entertainment sector to promote the upcoming ARK: Aquatica DLC, including advertising during high-profile events [3] - The company continues to expand the ARK universe with new content releases, enhancing player engagement and driving growth across multiple platforms [4] Sales Performance - ARK: Survival Evolved saw a 3,022% increase in average daily sales during the Steam Publisher Sale compared to previous months in 2025 [2] - Concurrent player numbers peaked at 65,885, indicating strong community engagement [2] Marketing Strategy - Snail Games is implementing a targeted marketing strategy for ARK: Aquatica, including a high-visibility advertisement during the How to Train Your Dragon live-action remake, which grossed approximately $83.7 million domestically [3] - The launch of a standalone music track, "On My Way," in collaboration with Luminati Suns, aims to broaden audience engagement [3] Content Expansion - The mobile version, ARK: Ultimate Mobile Edition, introduced the Genesis Part 1 expansion, resulting in a 27.4% increase in first-time downloads and a 17.8% increase in daily active users during its launch week [4] - ARK: Survival Ascended added the Ragnarok Ascended expansion, achieving its highest peak concurrent users and daily active users in 2025 [4] - The Lost Colony Expansion Pass became the number one pre-order on PlayStation, indicating strong interest in new content [4]

Core Insights - Snail Games celebrates the 10th anniversary of its flagship product ARK: Survival Evolved, which has become a globally recognized game series with a large player base and strong commercial performance since its early access launch in 2015 [1][2] - The original ARK: Survival Evolved has over 92.1 million global installations and more than 3.7 billion hours of gameplay, making it one of the most enduring and beloved games in the sandbox survival genre [1] - The next-generation remaster ARK: Survival Ascended has achieved 4.2 million installations and over 275 million hours of gameplay since its launch in 2023, indicating its popularity and potential for future growth [2] Game Releases and Updates - The mobile version ARK: Ultimate Mobile Edition launched globally in December 2024, achieving over 6.1 million downloads on iOS and Android, effectively lowering hardware barriers and expanding the game's reach [2] - A series of exciting content and community events are planned to celebrate the 10th anniversary, including in-game items and limited-time skins from June 2 to June 12, 2025 [3] - Upcoming updates include the Astraeos update for ASA, introducing a new island and new creatures, and the pre-order for ARK: Lost Colony set to begin on June 18, 2025 [3] Events and Promotions - Snail Games will participate in the IGN Live event from June 6 to June 8, 2025, showcasing the ARK series and hosting a competition with a prize pool of $10,000 [3] - The ARK: Aquatica DLC is set to be released, enhancing the underwater experience within the game [3]

Core Insights - Snail, Inc. celebrates the 10-year anniversary of its flagship title ARK: Survival Evolved, highlighting its significant impact on the sandbox survival genre and its ongoing success [1][2] Player Engagement and Performance - ARK: Survival Evolved has an install base of over 92.1 million and has logged more than 3.7 billion hours of total playtime on Steam, with a peak daily active user count of 1.1 million [2] - The next-generation remake, ARK: Survival Ascended, has achieved an install base of 4.2 million since its launch in 2023, with over 275 million hours played and a peak daily active user count of 308,000 [3] Mobile Expansion - The launch of ARK: Ultimate Mobile Edition in December 2024 has resulted in over 6.1 million downloads across iOS and Android, expanding the franchise's reach to a mobile-first audience [4] Upcoming Events and Content - Snail Games will participate in IGN Live from June 6th to June 8th, showcasing ARK: Aquatica and hosting a contest with a $10,000 prize pool [5] - A series of content releases to celebrate the 10-year milestone includes an anniversary event for ARK: Survival Ascended, new updates, and expansions for both mobile and PC platforms [7]

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 Insights - Snail, Inc. has achieved significant milestones in April 2025, focusing on expansions within the ARK franchise, a content milestone for Bellwright, and multiple IP launches under its indie publishing label, Wandering Wizard [1] Group 1: ARK Franchise Developments - The ARK franchise has seen two major content updates, including the return of the seasonal event "Eggcellent Adventure," which aims to enhance player retention and engagement [2] - The launch of the Extinction map in ARK: Ultimate Mobile Edition signifies a strategic move into high-growth mobile markets, aligning with the company's vision of providing premium survival experiences across various platforms [3] - Preparations are underway for the 10-year anniversary of ARK: Survival Evolved, with the upcoming release of the new expansion map DLC, ARK: Aquatica [4] Group 2: Bellwright Update - April 2025 marked the one-year anniversary of Bellwright in Early Access, featuring a major update that introduced significant new content and player-requested features, reflecting the company's commitment to long-term support and scalable IP growth [5] - Notable features in the update include new animal husbandry and advanced resource systems, allowing players to raise livestock and produce essential resources, enhancing the game's economy [6] - Additional enhancements include a full-featured fishing system, exploration improvements, quality-of-life upgrades, and narrative expansions, all aimed at increasing player engagement and retention [7] Group 3: Wandering Wizard Initiatives - Wandering Wizard has expanded its portfolio with the launch of two horror titles, "The Cecil: The Journey Begins" and "Chasmal Fear," showcasing the creativity of independent developers [9] - The acquisition of publishing rights for "Whispers of West Grove" adds another indie horror experience to Wandering Wizard's catalog, aligning with the company's strategy to identify high-potential indie IPs [10] Group 4: Overall Company Strategy - The achievements in April 2025 reflect Snail Games' ongoing execution across its core franchises, emerging IPs, and strategic publishing initiatives, as the company focuses on expanding its global reach and investing in scalable growth opportunities [11]