Snail (SNAL) 2025 Conference Transcript

Summary of Snail Inc. (SNAL) 2025 Conference Call Company Overview - Company Name: Snail Inc. - Ticker Symbol: SNAL - Industry: Interactive Digital Entertainment - Founded: 1999 - IPO: 2022 - Flagship Product: Ark franchise, particularly Ark Survival Evolved, launched in 2015 - Recent Ventures: Entering the stablecoin and blockchain-enabled digital assets space to diversify revenue streams [1][3][10] Core Insights and Arguments - Market Position: Snail Inc. is a leading gaming company in a rapidly growing industry, with a significant player base and a strong portfolio of games [19][34] - Revenue Model: The company primarily utilizes a free-to-play model, with a conversion rate of 1-3% for monetization [9][10] - Game Performance: - Ark Survival Evolved has grossed over $950 million and has more than 100 million installs [19] - Peak daily active users on Steam reached 1.1 million [21] - Consistent revenue growth quarter over quarter, with spikes during new game or DLC launches [21][22] - Expansion Plans: - Plans to launch two internally developed games in 2026, utilizing existing IPs [24][37] - Investment in indie game publishing to diversify offerings [23] Financial Highlights - Revenue Dependency: Approximately 85% of revenue is derived from Ark-related products [36] - Cost Management: Majority of costs are related to royalties and licensing fees; launching internally developed games will reduce these costs [37][38] Blockchain and Stablecoin Initiatives - Stablecoin Strategy: - Aiming to be the first gaming company to issue a stablecoin, leveraging its existing player base [32] - The stablecoin will serve as a rewards program and a money transmittal platform [30][31] - Engaging legal and compliance experts to navigate regulatory requirements [41] - Market Potential: The stablecoin market is projected to grow from $170 billion to $1.4 trillion by 2030 [31] Additional Important Points - Engagement Metrics: Over 4.1 billion hours played on Steam alone, indicating high player engagement [19] - DLC Success: Expansion packs consistently perform well, contributing significantly to revenue [12][13] - Operational Efficiency: The company maintains a lean operational structure, utilizing both internal teams and outsourced contractors [25][27] Conclusion Snail Inc. is positioned as a strong player in the gaming industry with a robust revenue model, significant player engagement, and innovative plans for blockchain integration. The focus on stablecoins and internal game development is expected to enhance growth and profitability in the coming years [34][41].