Snail, Inc. Q1 FY2025 earnings call

• ARK franchise saw strong growth: revenues, bookings, and units sold increased. Launched Astraeos Map for ARK Survival Ascended and ARK Ultimate Mobile Edition with impressive download and DAU numbers.
• Upcoming content: ARK Aquatica DLC, ARK: Lost Colony DLC, and Bellwright coming to Xbox in Q4 2025.
• New projects: Teasers for Nine Yin Sutra: Wushu and Immortal, and other new titles; Wandering Wizards launched two new titles and acquired additional ones.
• Interactive Films: Salty TV hosts 49 short film dramas, and an MOU with Mega Matrix for co-developing short drama series.

In the first quarter ended March 31, 2025, Snail Inc. reported revenues of $20.1 million, a 42.5% increase compared to Q1 2024. Bookings grew 13.6% to $22.2 million, and total units sold increased 45% to 1.5 million, primarily driven by the ARK franchise. ARK has累计 played for 4.0 billion cumulative hours with an average playing time per user of 162 hours. ARK Ultimate Mobile Edition had over 4.8 million downloads and an average DAU of approximately 144,000 as of March 31, 2025. Interactive Films' Salty TV hosts 49 short film dramas. Revenue contribution: ARK franchise is a significant driver, mobile is a growing segment, and the short drama segment is emerging.

• Looking ahead to the 10-year anniversary of the ARK franchise with new content and releases.
• ARK mobile to continue driving growth.
• Upcoming console launch of Bellwright in Q4 2025.
• New revenue streams from the short drama business and new games expected to contribute to revenue.

• Potential impact of tariffs on console prices, which could defer new players.
• Broader economic uncertainty may affect consumer spending on premium games.

Q: Talk about revenue diversification strategy.

A: We're actively exploring and investing in new games, launched a short drama business, signed an MOU with Mega Matrix, and have new games like Robots at Midnight, Honeycomb: The World Beyond, and Echoes of Elysium releasing this year, expecting new revenue streams to diversify revenue.

Q: Revenue implications of MOU with Mega Matrix.

A: It's early stage, but we're co-developing at least 10 short drama series over the next 12 months, with some revenue contribution expected from this line of business.

Q: Advertising and marketing costs.

A: Increase due to GDC participation and game releases, but we expect to refine our game unveiling strategies moving forward.

Q: Approach to turning net income positive.

A: Our approach centers on cost control via outsourcing and aligning R&D/marketing with projects, and diversified monetization via the short drama business, ARK mobile microtransactions, and investing in profitable content.