Snail, Inc. Reports Fourth Quarter & Full Year 2024 Financial Results
CULVER CITY, Calif., March 26, 2025 (GLOBE NEWSWIRE) -- Snail, Inc. $(SNAL)$ ("Snail" or "the Company"), a leading, global independent developer and publisher of interactive digital entertainment, today announced financial results for its fourth quarter and full year ended December 31, 2024.
Fourth Quarter & Full Year 2024 Highlights
-- ARK: Survival Ascended. On October 25, 2023, the Company launched its
flagship remake of the ARK franchise leveraging Unreal Engine 5's
stunning graphics and introduced a game-altering cross-platform modding
system, ushering in a new era of creativity.
-- ARK: Survival Ascended was ranked the top #1 selling game on Steam
on launch day.
-- Since its launch, ARK: Survival Ascended sold 3.4 million units
and has an average of 94,000 daily active users ("DAUs") with a
peak of 308,000 DAUs.
-- ARK: Survival Evolved. In the three months and year ended December 31,
2024, ARK: Survival Evolved averaged a total of 136,000 DAUs and 135,000
DAUs, respectively.
-- ARK: Survival Evolved units sold were approximately 621,000 for
the fourth quarter 2024 as compared to 745,000 units during the
same period in 2023.
-- Units sold for the year ended December 31, 2024 were approximately
2.3 million, as compared to 4.4 million units during the year
ended December 31, 2023.
-- Product and Business Updates:
-- Game portfolio expansion: In December 2024, we released the highly
anticipated next-gen ARK mobile game, ARK Ultimate Mobile Edition
on iOS and Android platforms. In the launch month, over 2 million
users downloaded the mobile game across the two mobile platforms.
In an effort to further broaden our game portfolio, we acquired
eleven games through our gaming network and partners in 2024. We
expect to release nine acquired games in 2025. A few notable
titles include Honeycomb: The World Beyond -- A sci-fi survival
adventure where players assume the role of a bioengineer
navigating the mysterious planet Sota7, Echoes of Elysium -- an
airship survival RPG set in a breathtaking procedural world of
mystery and discovery, and Robots at Midnight -- a
retro-futuristic action-RPG aiming to captivate players with its
dynamic gameplay and immersive storytelling.
-- New Product Segment: To bring more entertainment to our users, we
have soft launched a short film mobile application on iOS and
Android platforms. The short film mobile application, SaltyTV,
brings exclusive, original stories from heart-racing thrillers to
jaw-dropping romances to our viewers. We have released thirty-one
short film dramas to date and expect a consistent roll out of new
short film dramas throughout 2025 and beyond.
-- Growing Indie Portfolio: Snail Games showcased its expanding indie
catalog at Steam Scream Fest, featuring a variety of immersive and
genre-diverse titles that enhance player engagement and reinforce
the company's presence in the indie gaming space.
Net revenues for the three months ended December 31, 2024 was $26.2 million as compared to $28.6 million in the three months ended December 31, 2023. The decrease in revenues during the three months ended December 31, 2024 was due to a reduction in sales of ARK that was partially offset by the recognition of deferred revenues upon the release of ARK: Survival Ascended DLC's.
Net revenues for the year ended December 31, 2024 was $84.5 million, an increase of $23.6 million, or 38.7%, compared to $60.9 million for the year ended December 31, 2023. The increase in net revenues was due to an increase in recognition of deferred revenues of $32.2 million related to the ARK franchise, an increase in Bellwright sales of $5.9 million, partially offset by a decrease in total ARK sales of $13.0 million, a decrease in ARK Mobile sales of $1.0 million and a decrease in the Company's other titles of $0.7 million.
Net income for the three months ended December 31, 2024 was $1.1 million compared to a net income of $2.4 million for the three months ended December 31, 2023. The decrease in net income is a result of increased research and development costs of $3.0 million to support our future game releases partially offset by an increase in gross profit of $1.4 million, a decrease in advertising and marketing expenses of $0.9 million and an increase in expenses related to the revaluation of outstanding and exercised warrants of $1.5 million.
Net income was $1.8 million for the year ended December 31, 2024 as compared to a net loss of $9.1 million for the year ended December 31, 2023, representing an increase of $10.9 million. The increase was primarily due to an increase in net revenue of $23.6 million, decreased general and administrative expenses of $2.9 million, partially offset by increased research and development costs of $6.5 million, increased costs of revenues of $5.9 million, a decrease in income tax benefit of $3.0 million and an increase in expenses related to the revaluation of outstanding and exercised warrants of $1.2 million..
Bookings for the three months ended December 31, 2024 was $17.0 million as compared to $52.6 million for the three months ended December 31, 2023. The decrease was due to the strong release of ARK: Survival Ascended on the Steam, PlayStation and Xbox platforms in 2023.
Bookings for the year ended December 31, 2024 was $75.7 million as compared to $85.7 million in the year ended December 31, 2023. The decrease was due to increased sales at a higher average selling price ("ASP") driven by the release of ARK: Survival Ascended in the fourth quarter of 2023. The releases of Bobs Tall Tales and Bellwright along with the ARK: Survival Ascended DLCs, Scorched Earth in April 2024, Aberration in September 2024 and Extinction in December 2024 partially offset the decrease in unit sales in 2024 but each product release was at a lower ASP than the initial release of ARK: Survival Ascended.
Earnings before interest, taxes, depreciation and amortization ("EBITDA") for the three months ended December 31, 2024 decreased by $2.0 million, or 55.6%, as compared to the three months ended December 31, 2023. The decrease was primarily the result of a decrease in net income of $1.3 million, a decrease in interest expense and interest expense -- related parties of $0.4 million, and a decrease in provision for income taxes of $0.3 million.
EBITDA for the year ended December 31, 2024 was $3.2 million as compared to a loss of $9.7 million in the prior year period. EBITDA increased by $12.9 million, or 133.4%, compared to the year ended December 31, 2023, primarily because of an increase in net income of $10.9 million and a decrease in the benefit from income taxes of $3.0 million, partially offset by a decrease in interest expense and interest expense -- related parties of $0.8 million.
As of December 31, 2024, unrestricted cash was $7.3 million versus $15.2 million as of December 31, 2023.
Use of Non-GAAP Financial Measures
In addition to the financial results determined in accordance with U.S. generally accepted accounting principles, or GAAP, Snail believes Bookings and EBITDA, as non-GAAP measures, are useful in evaluating its operating performance. Bookings and EBITDA are non-GAAP financial measures that are presented as supplemental disclosures and should not be construed as alternatives to net income (loss) or revenue as indicators of operating performance, nor as alternatives to cash flow provided by operating activities as measures of liquidity, both as determined in accordance with GAAP. Snail supplementally presents Bookings and EBITDA because they are key operating measures used by management to assess financial performance. Bookings adjusts for the impact of deferrals and, Snail believes, provides a useful indicator of sales in a given period. EBITDA adjusts for items that Snail believes do not reflect the ongoing operating performance of its business, such as certain non-cash items, unusual or infrequent items or items that change from period to period without any material relevance to its operating performance. Management believes Bookings and EBITDA are useful to investors and analysts in highlighting trends in Snail's operating performance, while other measures can differ significantly depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which Snail operates and capital investments.
Bookings is defined as the net amount of products and services sold digitally or physically in the period. Bookings is equal to revenues, excluding the impact from deferrals. Below is a reconciliation of total net revenue to Bookings, the closest GAAP financial measure.
Three Months Ended Fiscal Year Ended
December 31, December 31,
------------------------ ---------------------
2024 2023 2024 2023
----------- ------- ----------- -------
(in millions)
Total net
revenue $ 26.2 $ 28.6 $ 84.5 $ 60.9
Change in
deferred
net
revenue (9.2) 24.0 (8.8) 24.8
------- ------ ------- ------
Bookings $ 17.0 $ 52.6 $ 75.7 $ 85.7
======= ====== ======= ======
We define EBITDA as net income (loss) before (i) interest expense, (ii) interest income, (iii) income tax provision (benefit from) and (iv) depreciation expense. The following table provides a reconciliation from net income (loss) to EBITDA:
Three Months Ended Fiscal Year Ended
December 31, December 31,
-------------------- -------------------
2024 2023 2024 2023
-------- ------ --------- -------
(in millions)
Net income
(loss) $ 1.1 $ 2.4 $ 1.8 $ (9.1)
Interest income
and interest
income --
related
parties (0.1) - (0.3) (0.1)
Interest expense
and interest
expense --
related
parties 0.1 0.5 0.7 1.5
Provision for
(benefit from)
income taxes 0.3 0.6 0.6 (2.4)
Depreciation
expense 0.2 0.1 0.4 0.4
---- ----- ----- ------
EBITDA $ 1.6 $ 3.6 $ 3.2 $ (9.7)
==== ===== ===== ======
Webcast Details
The Company will host a webcast at 4:30 PM ET today to discuss the fourth quarter and full year 2024 financial results. Participants may access the live webcast and replay on the Company's investor relations website at https://investor.snail.com/.
Forward-Looking Statements
This press release contains statements that constitute forward-looking statements. Many of the forward-looking statements contained in this press release can be identified by the use of forward-looking words such as "anticipate," "believe," "could," "expect," "should," "plan," "intend, " "may," "predict," "continue," "estimate" and "potential," or the negative of these terms or other similar expressions. Forward-looking statements appear in a number of places in this press release and include, but are not limited to, statements regarding Snail's intent, belief or current expectations. These forward-looking statements include information about possible or assumed future results of Snail's business, financial condition, results of operations, liquidity, plans and objectives. The statements Snail makes regarding the following matters are forward-looking by their nature: growth prospects and strategies; launching new games and additional functionality to games that are commercially successful; expectations regarding significant drivers of future growth; its ability to retain and increase its player base and develop new video games and enhance existing games; competition from companies in a number of industries, including other casual game developers and publishers and both large and small, public and private Internet companies; its ability to attract and retain a qualified management team and other team members while controlling its labor costs; its relationships with third-party platforms such as Xbox Live and Game Pass, PlayStation Network, Steam, Epic Games Store, My Nintendo Store, the Apple App Store, the Google Play Store and the Amazon Appstore; the size of addressable markets, market share and market trends; its ability to successfully enter new markets and manage international expansion; protecting and developing its brand and intellectual property portfolio; costs associated with defending intellectual property infringement and other claims; future business development, results of operations and financial condition; the ongoing conflicts involving Russia and Ukraine, and Israel and Hamas, on its business and the global economy generally; rulings by courts or other governmental authorities; the Company's current program to repurchase shares of its Class A common stock, including expectations regarding the timing and manner of repurchases made under this share repurchase program; its plans to pursue and successfully integrate strategic acquisitions; and assumptions underlying any of the foregoing.
Further information on risks, uncertainties and other factors that could affect Snail's financial results are included in its filings with the Securities and Exchange Commission (the "SEC") from time to time, including its annual reports on Form 10-K and quarterly reports on Form 10-Q filed, or to be filed, with the SEC. You should not rely on these forward-looking statements, as actual outcomes and results may differ materially from those expressed or implied in the forward-looking statements as a result of such risks and uncertainties. All forward-looking statements in this press release are based on management's beliefs and assumptions and on information currently available to Snail, and Snail does not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.
About Snail, Inc.
Snail is a leading, global independent developer and publisher of interactive digital entertainment for consumers around the world, with a premier portfolio of premium games designed for use on a variety of platforms, including consoles, PCs and mobile devices.
For additional information, please contact: investors@snail.com
Snail, Inc. and Subsidiaries
Consolidated Balance Sheets
December 31, 2024 December 31, 2023
------------------- -------------------
ASSETS
Current Assets:
Cash and cash
equivalents $ 7,303,944 $ 15,198,123
Accounts receivable,
net of allowances for
credit losses of
$523,500 as of
December 31, 2024 and
2023 9,814,822 25,134,808
Accounts receivable -
related party 2,336,274 -
Loan and interest
receivable - related
party 105,759 103,753
Prepaid expenses -
related party 2,521,291 6,044,404
Prepaid expenses and
other current assets 1,846,024 639,693
Prepaid taxes 7,318,424 9,529,755
--------------- ---------------
Total current assets 31,246,538 56,650,536
Restricted cash and cash
equivalents 935,000 1,116,196
Accounts receivable -
related party, net of
current portion 1,500,592 7,500,592
Prepaid expenses - related
party 9,378,594 7,784,062
Property, plant and
equipment, net 4,378,352 4,682,066
Intangible assets, net 973,914 271,717
Deferred income taxes 10,817,112 10,247,500
Other noncurrent assets 1,683,932 164,170
Operating lease
right-of-use assets, net 1,279,330 2,440,690
--------------- ---------------
Total assets $ 62,193,364 $ 90,857,529
=============== ===============
LIABILITIES,
NONCONTROLLING INTERESTS
AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 4,656,367 $ 12,102,929
Accounts payable -
related parties 15,383,171 23,094,436
Accrued expenses and
other liabilities 4,499,280 2,887,193
Interest payable -
related parties 527,770 527,770
Revolving loan 3,000,000 6,000,000
Notes payable - 2,333,333
Convertible notes, net
of discount - 797,361
Current portion of
long-term promissory
note 2,722,548 2,811,923
Current portion of
deferred revenue 3,947,559 19,252,628
Current portion of
operating lease
liabilities 1,444,385 1,505,034
--------------- ---------------
Total current liabilities 36,181,080 71,312,607
Accrued expenses 265,251 254,731
Deferred revenue, net of
current portion 21,519,888 15,064,078
Operating lease
liabilities, net of
current portion 57,983 1,425,494
--------------- ---------------
Total liabilities 58,024,202 88,056,910
--------------- ---------------
Commitments and
contingencies
Stockholders' Equity:
Class A common stock,
$0.0001 par value,
500,000,000 shares
authorized; 9,626,070
shares issued and
8,275,795 shares
outstanding as of
December 31, 2024, and
9,275,420 shares issued
and 7,925,145 shares
outstanding as of
December 31, 2023 962 927
Class B common stock,
$0.0001 par value,
100,000,000 shares
authorized; 28,748,580
shares issued and
outstanding as of
December 31, 2024 and
December 31, 2023. 2,875 2,875
Additional paid-in capital 25,738,082 26,171,575
Accumulated other
comprehensive loss (279,457) (254,383)
Accumulated deficit (12,117,385) (13,949,325)
Treasury stock at cost
(1,350,275 as of December
31, 2024 and 2023) (3,671,806) (3,671,806)
--------------- ---------------
Total Snail, Inc. equity 9,673,271 8,299,863
Noncontrolling interests (5,504,109) (5,499,244)
--------------- ---------------
Total stockholders' equity 4,169,162 2,800,619
--------------- ---------------
Total liabilities,
noncontrolling interests
and stockholders' equity $ 62,193,364 $ 90,857,529
=============== ===============
Snail, Inc. and Subsidiaries
Consolidated Statements of Operations and Comprehensive
Income (Loss)
Three months ended Years Ended
December 31, December 31,
------------------------- --------------------------
2024 2023 2024 2023
----------- ----------- ----------- ------------
Revenues, net $26,214,296 $28,570,222 $84,467,047 $ 60,902,098
Cost of revenues 14,866,526 18,646,615 54,236,342 48,306,403
---------- ---------- ---------- -----------
Gross profit 11,347,770 9,923,607 30,230,705 12,595,695
---------- ---------- ---------- -----------
Operating
expenses:
General and
administrative 3,943,985 3,900,961 12,867,210 15,816,088
Research and
development 4,123,964 1,165,382 11,647,293 5,057,421
Advertising and
marketing 192,235 1,094,146 1,523,398 1,582,464
Depreciation 68,420 86,222 303,714 432,306
Loss on disposal
of fixed
assets 427 427
---------- ---------- ---------- -----------
Total operating
expenses 8,328,604 6,247,138 26,341,615 22,888,706
---------- ---------- ---------- -----------
Income (loss) from
operations 3,019,166 3,676,469 3,889,090 (10,293,011)
---------- ---------- ---------- -----------
Other income
(expense):
Interest income 35,451 31,443 260,679 129,854
Interest income
- related
parties 504 504 2,005 2,000
Interest expense (88,776) (570,523) (723,038) (1,531,719)
Other income
(expense) (1,527,706) (55,351) (981,223) 265,980
Foreign currency
transaction
loss 43,741 (42,574) 11,686 (68,180)
---------- ---------- ---------- -----------
Total other income
(expense), net (1,536,786) (636,501) (1,429,891) (1,202,065)
---------- ---------- ---------- -----------
Income (loss)
before benefit
from income taxes 1,482,380 3,039,968 2,459,199 (11,495,076)
Provision for
(benefit from)
income taxes 362,623 643,728 632,124 (2,400,652)
---------- ---------- ---------- -----------
Net income (loss) 1,119,757 2,396,240 1,827,075 (9,094,424)
Net loss
attributable to
non-controlling
interests (215) (1,128) (4,865) (8,349)
---------- ---------- ---------- -----------
Net income (loss)
attributable to
Snail, Inc. $ 1,119,972 $ 2,397,368 $ 1,831,940 $ (9,086,075)
========== ========== ========== ===========
Comprehensive
income (loss)
statement:
Net income (loss) $ 1,119,757 $ 2,396,240 $ 1,827,075 $ (9,094,424)
Other comprehensive
income (loss)
related to
currency
translation
adjustments, net
of tax (48,600) 33,302 (25,074) 52,817
---------- ---------- ---------- -----------
Total comprehensive
income (loss) $ 1,071,157 $ 2,429,542 $ 1,802,001 $ (9,041,607)
========== ========== ========== ===========
Net income (loss)
attributable to
Class A common
stockholders:
Basic $ 248,176 $ 516,955 $ 400,576 $ (1,960,813)
========== ========== ========== ===========
Diluted $ 248,176 $ 516,955 $ 400,576 $ (1,960,813)
========== ========== ========== ===========
Net income (loss)
attributable to
Class B common
stockholders:
Basic $ 871,796 $ 1,880,413 $ 1,431,364 $ (7,125,262)
========== ========== ========== ===========
Diluted $ 871,796 $ 1,880,413 $ 1,431,364 $ (7,125,262)
========== ========== ========== ===========
Net income (loss)
per share
attributable to
Class A and B
common
stockholders:
Basic $ 0.03 $ 0.07 $ 0.05 $ (0.25)
========== ========== ========== ===========
Diluted $ 0.03 $ 0.07 $ 0.05 $ (0.25)
========== ========== ========== ===========
Weighted-average
shares used to
compute income
(loss) per share
attributable to
Class A common
stockholders:
Basic 8,183,918 7,914,564 8,045,469 7,909,715
========== ========== ========== ===========
Diluted 8,183,918 7,914,564 8,045,469 7,909,715
========== ========== ========== ===========
Weighted-average
shares used to
compute income
(loss) per share
attributable to
Class B common
stockholders:
Basic 28,748,580 28,748,580 28,748,580 28,748,580
========== ========== ========== ===========
Diluted 28,748,580 28,748,580 28,748,580 28,748,580
========== ========== ========== ===========
Snail, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
For the years ended December 31, 2024 2023
------------------------------------ ----------- ------------
Cash flows from operating
activities:
Net income (loss) $ 1,827,075 $ (9,094,424)
Adjustments to reconcile net loss to
net cash provided by (used in)
operating activities:
Amortization - intangible assets,
net 7,804 1,384,862
Amortization - loan origination
fees and debt discounts 62,855 124,595
Accretion - convertible notes 222,628 306,664
Loss on change in fair value of
warrant liabilities 1,332,815 32,883
Depreciation - property and
equipment 303,714 432,306
Stock-based compensation expense (890,208) 848,035
Loss (gain) on disposal of fixed
assets - 427
Credit losses - 581,498
Deferred taxes, net (569,601) (2,644,964)
Changes in assets and liabilities:
Accounts receivable 15,319,987 (18,939,465)
Accounts receivable - related
party 3,663,726 3,824,775
Prepaid expenses - related party 1,928,581 (8,245,966)
Prepaid expenses and other current
assets (1,206,331) 501,104
Prepaid taxes 2,211,331 -
Other noncurrent assets (1,523,065) -
Accounts payable (7,183,648) 2,992,856
Accounts payable - related parties (8,001,265) 3,176,177
Accrued expenses and other
liabilities 46,542 626,764
Interest receivable - related
party (2,005) (2,000)
Lease liabilities (266,800) (205,520)
Deferred revenue (8,849,259) 24,765,261
---------- -----------
Net cash provided by (used in)
operating activities (1,565,124) 465,868
---------- -----------
Cash flows from financing
activities:
Repayments on promissory note (89,374) (79,897)
Repayments on notes payable (2,333,333) (6,500,000)
Repayments on convertible notes (1,020,000) -
Repayments on revolving loan (3,000,000) (3,000,000)
Borrowings on notes payable - 3,000,000
Cash proceeds from exercise of
warrants 220,000 -
Proceeds from issuance of
convertible notes - 847,500
Refund of dividend withholding tax
overpayment - 1,886,600
Purchase of treasury stock - (257,093)
Payments of offering costs in
accounts payable (262,914) (342,318)
Release of restricted escrow
deposit - 1,003,804
---------- -----------
Net cash used in financing activities (6,485,621) (3,441,404)
---------- -----------
Effect of currency translation on
cash and cash equivalents (24,630) 51,670
---------- -----------
Net increase (decrease) in cash and
cash equivalents, and restricted
cash and cash equivalents (8,075,375) (2,923,866)
Cash and cash equivalents, and
restricted cash and cash equivalents
- beginning of period 16,314,319 19,238,185
---------- -----------
Cash and cash equivalents, and
restricted cash and cash equivalents
-- end of period $ 8,238,944 $ 16,314,319
========== ===========
Supplemental disclosures of cash
flow information
Cash paid during the period for:
Interest $ 467,188 $ 934,523
========== ===========
Income taxes $(1,100,302) $ 248,388
========== ===========
Noncash finance and investing
activity during the period for:
Debt converted to equity $ (60,000) $ -
========== ===========
Right-of-use assets obtained in
exchange for a lease liability $ (85,588)
========== ===========
Liabilities converted to equity
upon exercise of warrants $ 176,750
========== ===========
Acquisition of software in
accounts payable - related
parties $ 290,000 $ -
========== ===========
Acquisition of license rights in
accrued expenses and other
liabilities $ 420,000 $ -
========== ===========
Issuance of warrants in
connection with equity line of
credit $ - $ (105,411)
========== ===========
(END) Dow Jones Newswires
March 26, 2025 16:01 ET (20:01 GMT)
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