Financial Data and Key Metrics Changes - Net revenue for Q3 2025 was $13.8 million, down from $22.5 million in the same period last year, primarily due to an increase in deferred revenue of $10.9 million [16][18] - Net loss for Q3 2025 was $7.9 million compared to a net income of $233,000 in the same period last year, driven by decreased net revenue and increased expenses [18] - Bookings for Q3 increased by 9.3% to $17.6 million compared to $16.1 million from the same period last year [19] Business Line Data and Key Metrics Changes - Total ARK sales increased by $2.2 million compared to the same period last year, while Salty TV sales increased by $300,000 [16] - Units sold for the gaming business increased by 7.8% year over year, with total units sold for the nine-month period rising 38.7% to 4.8 million [10] - Average daily active users (DAU) for ARK: Survival Evolved and ARK: Survival Ascended reached approximately 122,658 and 92,876, respectively [10] Market Data and Key Metrics Changes - Deferred revenue balance as of September 30, 2025, was $36.4 million, with $35.3 million due to non-refundable payments [17] - The company expects to recognize approximately $26.5 million of deferred revenue within the next 12 months, with $5.8 million expected to be recognized in Q4 2025 [17][18] Company Strategy and Development Direction - The company is pursuing a stablecoin project to position itself as a pioneer in digital payments within the gaming industry, viewing stablecoins as the future of digital transactions [5][6] - Upcoming growth drivers include the launch of ARK: Lost Colony and the anticipated release of Echoes of Elysium on December 4, 2025 [14][15] Management's Comments on Operating Environment and Future Outlook - Management noted that the decline in net revenue was primarily due to timing of revenue recognition rather than a reduction in sales or demand [7] - The company remains optimistic about a stronger Q4, driven by the upcoming launch of new content and continued engagement across its gaming portfolio [9][22] Other Important Information - The company participated in several industry events to drive awareness of its titles, including Gamescom and TwitchCon [11] - The interactive film segment has seen growth, with 67 short-film dramas released through the Salty TV app [12] Q&A Session Summary Question: Can you discuss the gross margins in the quarter? - The decrease in gross margin was attributed to fixed license fees and deferred revenue from Lost Colony sales [23][24] Question: Can you elaborate on the timing of deferred revenue recognition? - Most deferred revenue is expected to be recognized within the next 12 months, with $5.9 million related to Lost Colony expected in Q4 2025 [25][26] Question: What does the remaining deferred revenue consist of? - The majority of deferred revenue is related to gaming performance obligations and some deposits for future games [27][28]

Core Insights - Snail, Inc. continues to show steady growth across its entertainment portfolio through new content launches and industry recognition [1] - The company is strengthening its core franchise and enhancing community engagement within its ARK ecosystem [2] - Snail's indie publishing branch, Wandering Wizard, is expanding its global portfolio with unique projects and has received industry accolades [3] - The Interactive Films division is gaining recognition for its short-form storytelling platform, Salty TV, with multiple awards for its titles [4] - Overall, these achievements reflect Snail's strategic momentum across various entertainment sectors, diversifying revenue streams and enhancing brand visibility [5] Gaming and Publishing - The 'ARK x Teenage Mutant Ninja Turtles' Cosmetic Pack collaboration emphasizes the importance of mod content for sustaining engagement with ARK: Survival Ascended [2] - The upcoming airship building RPG, Echoes of Elysium, is set to release on December 4, 2025, marking a significant addition to Snail's gaming portfolio [2] - Wandering Wizard's collaboration with Argentina-based studio Seven Leaf Clover for the launch of Rebel Engine on Steam showcases the branch's commitment to diverse gaming projects [3] Interactive Films - Salty TV's titles, including My Ex's Bestfriend, Hollywood Heartthrob, and Faux Fiance, received recognition from the International Short Drama Association, highlighting the division's potential [4] - The awards for Salty TV's titles include Best Revenge-Driven Narrative and Most Charismatic Screen Presence, indicating strong audience engagement potential [4] Strategic Momentum - The combination of efforts in gaming, publishing, and digital storytelling illustrates Snail's strategy to diversify revenue streams and strengthen brand visibility [5]

Core Insights - Snail, Inc. is showcasing its upcoming titles at TwitchCon through a collaboration with Noiz, aiming to enhance game promotion and community engagement [1][2][3] Group 1: Upcoming Titles - Featured titles include: - **ARK: Lost Colony** - An expansion for ARK: Survival Ascended, launching December 2025 [4] - **Echoes of Elysium** - An airship survival RPG set to launch later this year [4] - **Honeycomb: The World Beyond** - A cozy survival adventure focused on bio-engineering to save Earth [4] - **Rebel Engine** - A fast-paced boomer-shooter combining '90s shooter speed with melee combat [5] Group 2: Strategic Initiatives - The collaboration with Noiz aims to connect streamers with Snail Games' portfolio, facilitating paid marketing campaigns that incentivize content creation [2][3] - Snail Games is focusing on community-building and influencer engagement to establish early franchise potential [5] Group 3: Event Details - Snail Games will be present at TwitchCon San Diego from October 17 to October 19, 2025, at booth 2115 SW [5]

Core Insights - Snail, Inc. is hosting its annual publisher promotion on the Steam platform, which is a significant revenue opportunity for the company this year [1] - The promotion will feature substantial discounts across its game lineup and will include early access trials for several anticipated new titles during Steam Next Fest [1] - Last year's promotion saw daily average sales reach 1.6 times that of non-promotion periods, and the company aims to surpass this performance [1] Promotional Discounts - The company is offering an 80% discount on Bellwright, the largest discount since its early access release, to attract more players ahead of new content [2] - The ARK Franchise Bundle, including ARK: Survival Evolved and others, is available at a 20% discount to drive user acquisition [3] - PixARK is offered at a 43% discount, while West Hunt is available at a 50% discount, maintaining stable player engagement since its launch in 2023 [3] - The psychological horror game The Cecil: A Journey Beyond is discounted by 15% alongside new content updates [3] - Chasmal Fear, a sci-fi horror FPS, is also discounted by 15% with significant content updates to enhance user experience [3] - Survivor Mercs is available at a 62% discount and has launched a demo to boost user growth during early access [4] Upcoming Titles - Robots at Midnight, an action RPG, is set to release on June 19, 2025, and is currently available for wishlist collection on Steam and pre-order on Xbox [5] - Echoes of Elysium, a steampunk survival RPG, is showcased in the "Add to Wishlist" section and will have a public demo before Steam Next Fest [5] - Zombie Rollerz: The Last Ship is participating in Steam Next Fest with a live demo to enhance pre-release visibility [5] Company Overview - Snail, Inc. (Nasdaq: SNAL) is a leading independent game developer and publisher, providing digital interactive entertainment products across various platforms [6]

Core Insights - Snail, Inc. is hosting its annual Publisher Sale on Steam, which is a significant revenue-driving event for the company, featuring deep discounts and anticipated titles [1][2] - The sale is expected to drive daily unit sales to 1.6 times the average of non-promotional periods from the previous year, with the company aiming to exceed this figure [2] - The event serves as both a short-term revenue growth opportunity and a long-term player engagement strategy through the promotion of back catalog titles and new releases [2][11] Discounts and Promotions - The game Bellwright is seeing its highest discount of 20% since its early access launch during the Publisher Sale [3] - The ARK Franchise Bundle, which includes titles like ARK: Survival Evolved, is offered at a 20% discount, while PixARK is available at 57% off [4] - Other titles such as West Hunt and The Cecil: A Journey Beyond are also featured with significant discounts of 50% and 15% respectively [5] Upcoming Titles and Engagement Strategies - Upcoming titles like Robots at Midnight and Echoes of Elysium are highlighted for pre-order and wishlist growth, with demos available to build early audience momentum [7] - Zombie Rollerz: The Last Ship is participating in Steam Next Fest with a live demo to enhance visibility ahead of its release [8] - Survivor Mercs is offered at 38% off with a playable demo to encourage early access growth and feedback-driven development [6] Company Overview - Snail, Inc. is a leading global independent developer and publisher of interactive digital entertainment, with a diverse portfolio of premium games across various platforms [9]

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]