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Snail, Inc. SNAL reported mixed fourth-quarter 2024 results, with earnings missing the Zacks Consensus Estimate and revenues beating the same. The top and bottom lines declined on a year-over-year basis.
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Following the results, SNAL’s shares lost 3.8% in the after-hours trading session yesterday.
SNAL’s Q4 Earnings & Revenues
For the fourth quarter of 2024, SNAL reported adjusted earnings per share (EPS) of 3 cents, which missed the Zacks Consensus Estimate of 7 cents. The company reported an adjusted EPS of 7 cents in the prior-year quarter.
Quarterly revenues of $26.2 million beat the consensus mark of $25 million by 4.9%. The top line fell 8.4% from $28.6 million reported in the year-ago quarter. The decline was primarily due to lower sales of ARK.
Snail, Inc. Price, Consensus and EPS Surprise
Snail, Inc. price-consensus-eps-surprise-chart | Snail, Inc. Quote
During the quarter, bookings totaled $17 million compared with $52.6 million reported in the prior-year quarter. The drop was primarily attributed to the strong launch of ARK: Survival Ascended across Steam, PlayStation and Xbox platforms in 2023, which significantly boosted bookings in the prior year.
Snail’s Q4 Operating Highlights
During fourth-quarter 2024, gross profit came in at $11.3 million compared with $9.9 million reported in the prior-year quarter.
Net income in the fourth quarter totaled $1.1 million compared with $2.4 million reported in the prior-year quarter. The decline was primarily due to a $3.0 million increase in research and development expenses to support upcoming game releases. This was partially offset by a $1.4 million rise in gross profit, a $0.9 million reduction in advertising and marketing expenses, and a $1.5 million increase in expenses related to the revaluation of outstanding and exercised warrants.
EBITDA during the quarter totaled $1.6 million compared with $3.6 million reported in the prior-year quarter.
Balance Sheet
As of Dec. 31, 2024, cash and cash equivalents amounted to $7.3 million compared with $15.2 million as of Dec. 31, 2023. Operating lease liability, net of the current portion, was $0.6 million, down from $1.4 million in the prior year.
SNAL’s 2024 Highlights
Net revenues in 2024 came in at $84.5 million compared with $60.9 million in 2023.
EBITDA in 2024 totaled $3.2 million against a loss of $9.7 million in fiscal 2023.
In 2024, diluted EPS came in at 5 cents against a loss of 25 cents reported in the previous year.
SNAL’s Zacks Rank and Stocks to Consider
Snail currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Zacks Consumer Discretionary sector are RCI Hospitality Holdings, Inc. RICK, Mattel, Inc. MAT and Royal Caribbean Cruises Ltd. RCL.
RCI Hospitality currently sports a Zacks Rank #1 (Strong Buy). The company delivered a trailing four-quarter earnings surprise of negative 62.9%, on average. The stock has declined 21.2% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for RCI Hospitality’s 2025 sales and EPS indicates growth of 2.5% and 1,278.8%, respectively, from year-ago levels.
Mattel currently flaunts a Zacks Rank #1. The company delivered a trailing four-quarter earnings surprise of 37.6%, on average. The stock has declined 0.2% in the past year.
The Zacks Consensus Estimate for Mattel’s 2025 sales and EPS indicates growth of 1.4% and 4.9%, respectively, from year-ago levels.
Royal Caribbean currently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter earnings surprise of 15.7%, on average. The stock has rallied 58.3% in the past year.
The Zacks Consensus Estimate for Royal Caribbean’s 2025 sales and EPS indicates growth of 9% and 26.4%, respectively, from year-ago levels.