Snail, Inc. Q4 FY2024 earnings call

• Tony Tian introduced the quarter, highlighting releases in the Arc franchise like Extinction DLC and ARC Ultimate Mobile Edition.
• Peter Kang provided updates on core franchises: BellRite with over 367k units sold and over 1M wish list, upcoming releases of Honeycomb, Echoes of Elysium, Robots at Midnight in 2025, and updates on the Wandering Wizard indie publishing label.
• Heidy Kingwan Chow discussed financials: Q4 2024 net revenue $26.2M, year-end net revenue $84.5M, net income changes, bookings, and cash position as of Dec 31, 2024.

For the fourth quarter of 2024, Snail, Inc. Class A Common Stock generated net revenue of $26.2 million, a decrease from $28.6 million in Q4 2023. Net revenue for the year ended December 31, 2024, was $84.5 million, up from $60.9 million in the prior year. BellRite sales in Q4 2024 were $1.0 million. As of end-2024, BellRite had sold over 367,000 units with a wish list count over 1 million. Honeycomb, a survival sandbox game, is set for release in 2025. Echoes of Elysium is an airship RPG, Robots at Midnight is a retro-futuristic action RPG. The Arc franchise saw release of Extinction DLC, part three of Boss Totals DLC, and ARC Ultimate Mobile Edition with over 2 million downloads by year-end.

• Upcoming releases in 2025 include Honeycomb (second half), Echoes of Elysium (second half), and Robots at Midnight (first half).
• Resource allocation for marketing is based on analytical approach considering the size of the market the game targets.

Q: When do you anticipate BellRite would be available on Xbox? And could you talk about whether it would be a good candidate for Game Pass?

A: We anticipate BellRite to be available on the Xbox cloud. It's hard to say how many new gamers, but it's a unique product in the console survival simulation crafting catalog. Communications with Microsoft regarding Game Pass are open but no definite confirmation yet.

Q: How do you allocate resources among marketing spend against some of the titles and how do you allocate those resources?

A: Resource allocation is based on an analytical approach looking at the size of the market the game will establish a presence in, then deducing the correct marketing budget based on that market size.