Snail(SNAL) - 2025 Q1 - Quarterly Results

Financial Performance - Net revenues for Q1 2025 increased by 42.5% to $20.1 million compared to$14.1 million in Q1 2024, driven by a $2.7 million increase in total ARK sales and a$1.3 million increase in ARK Mobile sales[8] - Bookings for Q1 2025 rose by 13.6% to $22.2 million from$19.6 million in Q1 2024, attributed to the release of ARK: Survival Ascended DLC and other titles[10] - Revenues for Q1 2025 reached $20,110,872, a 42.5$14,115,729 in Q1 2024[25] - Gross profit for Q1 2025 was $5,847,527, compared to$2,074,031 in Q1 2024, reflecting a significant improvement[25] - The company reported a gross margin of 29.1% for Q1 2025, up from 14.7% in Q1 2024[25] User Engagement - Daily active users for the ARK franchise increased by approximately 16% to 243,000 on Steam and Epic platforms compared to the same period in 2024[7] - Average daily active users for ARK Mobile totaled 143,976 during the three months ended March 31, 2025[6] - ARK: Ultimate Mobile Edition surpassed 4.8 million downloads as of March 31, 2025, indicating strong momentum since its launch[6] Expenses and Losses - The net loss for Q1 2025 was $(1.9) million, slightly higher than$(1.8) million in Q1 2024, due to increased costs in revenues and operating expenses[9] - EBITDA for Q1 2025 was $(3.2) million, compared to$(1.9) million in Q1 2024, reflecting increased operating costs[11] - Total operating expenses increased to $9,948,365 in Q1 2025 from$4,281,930 in Q1 2024, primarily due to higher general and administrative and R&D costs[25] - The company reported a net loss of $1,946,963 for Q1 2025, compared to a net loss of$1,780,458 in Q1 2024, indicating an increase in losses of approximately 9.4% year-over-year[28] Cash Flow and Assets - As of March 31, 2025, unrestricted cash was $9.4 million, up from$7.3 million as of December 31, 2024[12] - Cash and cash equivalents increased to $9,359,116 as of March 31, 2025, up from$7,303,944 at the end of 2024[22] - Total assets grew to $64,497,227 as of March 31, 2025, compared to$62,193,364 at the end of 2024[22] - Cash and cash equivalents at the end of Q1 2025 were $10,294,116, down from$17,186,039 at the end of Q1 2024, reflecting a decrease of 40.2%[28] Financing and Investments - The company generated $3,137,454 in net cash from financing activities in Q1 2025, a turnaround from a net cash used of$5,886,281 in Q1 2024[28] - The company incurred net cash used in investing activities of $1,879,002, primarily due to software acquisitions totaling$1,702,000[28] - Deferred revenue increased by $2,138,026 in Q1 2025, compared to a decrease of$4,723,462 in Q1 2024, indicating a positive shift in revenue recognition[28] Strategic Initiatives - The company signed a Memorandum of Understanding with Mega Matrix Inc. for the joint development of at least 10 short dramas, enhancing its content portfolio[5] - The company plans to expand its global reach and invest in scalable growth while commemorating the 10-year anniversary of ARK: Survival Evolved[7] Other Financial Metrics - The weighted-average shares used to compute basic loss per share for Class A common stockholders increased to 8,442,025 in Q1 2025 from 7,957,031 in Q1 2024[26] - The company recorded a total comprehensive loss of $1,891,708 for Q1 2025, compared to$1,799,755 in Q1 2024[25] - Interest paid during the period was $97,260, down from$171,101 in the previous year, showing a reduction of approximately 43.1%[29] - The company converted liabilities of $323,113 to equity during the period, reflecting ongoing efforts to strengthen its balance sheet[29] - The fair value of notes recorded in accumulated other comprehensive income increased by$22,023, indicating potential gains in financial instruments[29]