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]

加利福尼亚州卡尔弗城, May 31, 2025 (GLOBE NEWSWIRE) -- 全球领先的互动数字娱乐领域独立开发商与发行商 Snail, Inc. (Nasdaq: SNAL，以下简称 “Snail Games” 或 “公司”) 宣布，其独立游戏发行品牌 Wandering Wizard 已与阿根廷开发商 Seven Leaf Clover 达成发行合作协议，获得高强度第一人称单人射击游戏 (FPS) Rebel Engine 的发行权。 Rebel Engine 预计将于 2025 年登陆 PC 端，公司期望该游戏能够进一步扩大 Wandering Wizard 在全球游戏市场的影响力。 Rebel Engine 是一款快节奏 FPS 动作游戏，将激烈的近战格斗与高强度枪战和流畅的连击系统相结合。 游戏背景设定在一个风格化的反乌托邦机器人世界，玩家将扮演被奴役的机器人 Asimov，目标是逃离企业控制，掀起反抗科技巨头的革命风暴。 游戏可供玩家体验多种近战武器风格、自定义连击、激烈 BOSS 战，以及探讨身份、反抗和解放等主题的故事情节。 Snail, Inc. 联席首席执行官 Tony Tia ...

Group 1 - Snail, Inc. announced a publishing partnership with Argentina-based developer Seven Leaf Clover to acquire the publishing rights to the game Rebel Engine [1] - Rebel Engine is a high-impact, single-player, first-person shooter (FPS) game expected to release on PC in 2025 [1] - The game is designed to expand Wandering Wizard's presence in the global gaming market [1] Group 2 - The game is set in a stylized robot dystopia where players assume the role of Asimov, an enslaved machine leading a revolution against a megacorporation [2] - Rebel Engine features multiple melee weapon styles, custom combos, intense boss fights, and a narrative exploring themes of identity, resistance, and liberation [2]

Core Insights - Snail, Inc. has entered a publishing partnership with Argentina-based developer Seven Leaf Clover to acquire the publishing rights for the FPS game Rebel Engine, expected to release on PC in 2025, aiming to expand Wandering Wizard's presence in the global gaming market [1][3] Group 1: Game Overview - Rebel Engine is a fast-paced FPS that combines melee combat with gunplay, set in a robot dystopia where players control Asimov, an enslaved machine leading a revolution against a megacorporation [2] - The game features various melee weapon styles, custom combos, intense boss fights, and a narrative focused on themes of identity, resistance, and liberation [2] Group 2: Company Strategy - The addition of Rebel Engine to Wandering Wizard's portfolio aligns with Snail's mission to diversify its gaming lineup and enhance its global market reach [3] - The partnership with Seven Leaf Clover exemplifies Snail's strategy of fostering cross-regional collaboration and supporting diverse talent in the indie gaming sector [3][5] Group 3: Company Background - Snail, Inc. is a leading independent developer and publisher of interactive digital entertainment, offering a portfolio of premium games across various platforms, including consoles, PCs, and mobile devices [6]

Core Viewpoint - Snail, Inc. will be participating in the Noble Capital Markets Emerging Growth Conference on June 4-5, 2025, presenting its business and engaging in one-on-one meetings with investors [1][2]. Company Overview - Snail, Inc. is a leading global independent developer and publisher of interactive digital entertainment, offering a premier portfolio of premium games across various platforms, including consoles, PCs, and mobile devices [3]. Event Details - The management team of Snail, Inc. is scheduled to present on June 4, 2025, at 2:30 p.m. Eastern time in a fireside-style Q&A format [2]. - Registration for the presentation and requests for one-on-one meetings can be made through the Noble Capital Markets conference website [2]. - A video webcast of the presentation will be available on the Company's Investor Relations website and Channelchek after the event [2]. Investor Contact Information - Investor inquiries can be directed to John Yi and Steven Shinmachi at Gateway Group, Inc. via phone or email [4].

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 Viewpoint - Snail, Inc. reported a quarterly loss of $0.06 per share, which was better than the Zacks Consensus Estimate of a loss of $0.11, indicating a 45.45% earnings surprise [1] Financial Performance - The company posted revenues of $20.11 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 11.73% and showing an increase from $14.12 million year-over-year [2] - Over the last four quarters, Snail, Inc. has exceeded consensus revenue estimates two times [2] Stock Performance - Snail, Inc. shares have declined approximately 39.3% since the beginning of the year, contrasting with the S&P 500's gain of 0.1% [3] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating expectations of underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.02 on revenues of $26 million, with a breakeven point at $101 million in revenues for the current fiscal year [7] - The trend of estimate revisions for Snail, Inc. has been unfavorable leading up to the earnings release [6] Industry Context - The Gaming industry, to which Snail, Inc. belongs, is currently ranked in the bottom 42% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact investor sentiment [5]

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]

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]

Financial Performance - For the three months ended March 31, 2025, the company generated net revenue of $20.1 million, a 42.5% increase from $14.1 million in the same period of 2024[188]. - The company reported a net loss of $1.9 million for Q1 2025, slightly higher than the $1.8 million loss in Q1 2024[188]. - Net revenues for the three months ended March 31, 2025, increased by $6.0 million, or 42.5%, compared to the same period in 2024, driven by increased sales of ARK products and a reduction in deferred sales[210]. - Gross profit for the three months ended March 31, 2025, was $5.8 million, reflecting a significant increase of $3.8 million, or 181.9%, from $2.0 million in 2024[209]. - EBITDA for the three months ended March 31, 2025, decreased by $1.3 million, or 75.5%, primarily due to an increase in income tax benefits and a slight increase in net loss[234]. Revenue Sources - The ARK franchise accounted for 91.6% of total revenues in Q1 2025, up from 78.6% in Q1 2024[187]. - Daily active users for ARK: Survival Evolved and ARK: Survival Ascended averaged 243,000 in Q1 2025, compared to 209,000 in Q1 2024, representing a 16.2% increase[187]. - The company sold 1.5 million units of games in Q1 2025, an increase of 36.4% from 1.1 million units in Q1 2024[191]. - The ARK franchise has achieved 96.3 million installs on consoles and PCs as of March 31, 2025[187]. - Bookings for the three months ended March 31, 2025, increased by $2.6 million, or 13.6%, compared to the same period in 2024, due to new game releases[228]. Expenses - Cost of revenues for the three months ended March 31, 2025, rose by $2.2 million, or 18.4%, compared to the same period in 2024, primarily due to increased software license royalties related to higher ARK sales[211]. - General and administrative expenses increased by $2.6 million, or 117.5%, for the three months ended March 31, 2025, largely due to higher salaries and stock compensation expenses[213]. - Research and development expenses rose by $1.8 million, or 103.2%, for the three months ended March 31, 2025, as the company expanded its internal development team[214]. - Advertising and marketing expenses surged by $1.2 million, or 826.3%, for the three months ended March 31, 2025, attributed to increased presence at industry events and marketing campaigns[215]. Cash Flow and Financing - As of March 31, 2025, the company's unrestricted cash was $9.4 million, an increase from $7.3 million as of December 31, 2024[236]. - Net cash flows provided by operating activities decreased by $6.0 million, totaling $0.8 million for the three months ended March 31, 2025, compared to $6.8 million for the same period in 2024, representing an 88.5% decline[242]. - Net cash flows used in investing activities were $1.9 million for the three months ended March 31, 2025, compared to none in the same period of 2024[248]. - Financing activities generated $3.1 million in net cash flows for the three months ended March 31, 2025, a significant increase from the $5.9 million used in financing activities in the same period of 2024[249]. - The company issued convertible notes with a principal amount of $3.3 million in February 2025, maturing in February 2026[239]. Future Plans and Developments - The company plans to release a new DLC, ARK: Aquatica, in June 2025, as part of the 10-year celebration of ARK: Survival Evolved[200]. - The newly released DLC map ARK: Astraeos sold 253,000 units across platforms since its launch in February 2025[199]. - The company has released 49 short film dramas through its Salty TV mobile application and expects to continue rolling out new content throughout 2025[201]. - The company has established a new division under the Interactive Films brand to focus on creating content in the vertical short film segment[190]. Accounting and Compliance - The company is classified as an "emerging growth company" and is eligible for exemptions from various reporting requirements, including reduced disclosure obligations regarding executive compensation[270]. - The company will remain an emerging growth company until it meets certain criteria, including total annual gross revenue of at least $1.235 billion or a market value of common stock held by non-affiliates exceeding $700 million[273]. - The company is also classified as a "smaller reporting company," allowing it to take advantage of scaled disclosures as long as its voting and non-voting common stock held by non-affiliates is less than $250 million[274]. - The company recognizes deferred revenues based on estimates of release dates and technical support obligations, which may change and impact financial statements[266]. - Deferred income tax assets are based on estimates of future taxable income and the utilization of tax loss carryforwards, which require significant judgment and may materially impact financial statements[268]. Risks and Estimates - The company expects accounts receivable from SDE Inc. to be repaid within the next two fiscal years, with outstanding balances of $6.0 million as of March 31, 2025[246]. - The company is projected to fail its debt covenants within the next 12 months, leading to the classification of the long-term portion of its promissory note as current[239]. - Changes in estimates related to release schedules and technical support obligations could materially affect the classification of deferred revenues[266]. - The company reviews its estimates on an ongoing basis to ensure they reflect changes in business or new information[265]. - The company has elected to delay the adoption of certain accounting standards, which may result in its financial statements being less comparable to those of other public companies[272].