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]