Snail Inc (SNAL) Q1 2025 Earnings Call Highlights: Revenue Soars Amidst Rising Costs

In This Article:

  • Revenue: $20.1 million, a 42.5% increase compared to Q1 2024.

  • Net Loss: $1.9 million compared to a loss of $1.8 million in Q1 2024.

  • Bookings: Increased 13.6% to $22.2 million compared to the same period last year.

  • EBITDA: Loss of $3.2 million compared to a loss of $1.9 million in the prior year period.

  • Unrestricted Cash and Cash Equivalents: $9.4 million as of March 31, 2025.

  • Total Units Sold: Increased 45% to 1.5 million units.

  • ARK Mobile Downloads: Surpassed 4.8 million downloads as of March 31, 2025.

  • Average Daily Active Users (DAU) for ARK Mobile: Approximately 144,000.

Release Date: May 14, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Snail Inc (NASDAQ:SNAL) reported a 42.5% increase in revenue for Q1 2025, reaching $20.1 million compared to Q1 2024.

  • The company's flagship ARK franchise continues to drive growth, with total units sold increasing by 45% to 1.5 million.

  • The ARK Ultimate Mobile Edition has surpassed 4.8 million downloads, highlighting strong mobile engagement.

  • Snail Inc (NASDAQ:SNAL) is expanding its content portfolio with new DLCs and upcoming titles, including ARK Aquatica and ARK: Lost Colony.

  • The partnership with Mega Matrix aims to co-develop at least 10 short dramas, expanding Snail Inc (NASDAQ:SNAL)'s reach in the digital entertainment market.

Negative Points

  • Despite revenue growth, Snail Inc (NASDAQ:SNAL) reported a net loss of $1.9 million for Q1 2025, slightly higher than the $1.8 million loss in Q1 2024.

  • EBITDA for the quarter showed a loss of $3.2 million, an increase from the $1.9 million loss in the prior year period.

  • Increased costs in research and development, as well as marketing, have impacted the company's financial performance.

  • The potential rise in console prices due to tariffs could affect new player acquisition for console-based games.

  • The short drama business is still in early stages, making it difficult to predict its revenue contribution in the near term.

Q & A Highlights

Q: Can you discuss Snail Inc's approach to revenue diversification? A: Peter Kang, Chief Operating Officer, explained that Snail Inc is actively exploring new business opportunities to diversify revenue. This includes launching a short drama business and signing an MOU with Mega Matrix. Additionally, new games like Robots at Midnight and Echoes of Elysium are expected to contribute to revenue diversification.

Q: What are the revenue implications of the MOU with Mega Matrix? A: Tony Tian, Co-Chief Executive Officer, stated that it's too early to measure the potential revenue from the short drama business as the MOU was just announced. However, both parties plan to co-develop at least 10 short drama series over the next 12 months, which should contribute to revenue.