Snail (NasdaqCM:SNAL) Conference Transcript

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].