CULVER CITY, Calif., June 12, 2023 (GLOBE NEWSWIRE) — Snail, Inc. (Nasdaq: SNAL) (“Snail”), a leading, global independent developer and publisher of interactive digital entertainment, today announced its participation at the recent 3XP Web3 Gaming Expo. The event was held at the Pasadena Convention Center in California from June 8-9th.
Jim Tsai, Chief Executive Officer of Snail, participated in a panel discussion titled “Blockchain & Traditional Gaming: Competitors or Collaborators?” as a guest speaker. In the discussion, Mr. Tsai shared insightful perspectives on the converging landscapes of blockchain technology and traditional gaming, adding a unique dimension to this critical industry dialogue.
The 3XP Web3 Gaming Expo is an annual event for gamers, developers, investors, and enthusiasts to come together and explore the newest technologies and gaming trends in the web3 gaming industry. It includes a variety of speakers, vendors, competitions, and activities designed to appeal to the modern gaming demographic, serving as a comprehensive platform for the exploration and celebration of innovations in the web3 gaming landscape.
Jim Tsai remarked, “We are excited about our participation at the 3XP Web3 Gaming Expo. Our engagement at the Expo underscores Snail’s commitment to remaining at the forefront of emerging trends and technological evolution in the gaming sector. The Expo offered us a unique platform to connect with fellow industry leaders, fostering an environment conducive to mutual learning and potential strategic partnerships. We are committed to leveraging these opportunities to further augment Snail’s market presence and diverse offerings.”
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.
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 game developers and publishers and both large and small, public and private Internet companies; its relationships with third-party platforms such as Xbox Live and Game Pass, PlayStation Network, Steam, Epic Games Store, the Apple App Store, the Google Play Store, My Nintendo Store and the Amazon Appstore; the potential for strategic partnerships; and assumptions underlying any of the foregoing.
CULVER CITY, Calif., May 31, 2023 (GLOBE NEWSWIRE) — Snail, Inc. (Nasdaq: SNAL) (“Snail” or “the Company”), a leading, global independent developer and publisher of interactive digital entertainment, today announced its successful application of Artificial Intelligence Generative Content (“AIGC”) in game development. As AI technology continues to make rapid strides, the gaming industry, characterized by its integration of words, graphics, animations, videos, and a variety of digital assets, has emerged as one of the early adopters of this game-changing technology. The high compatibility of AIGC with the gaming sector has introduced new opportunities and challenges, driving innovation and growth within the industry.
Snail has been actively exploring AIGC applications. AIGC has played a significant role in expediting production and assisting development in various aspects, including concept creation, art design, music, voice acting, intelligent NPCs, storylines, and world-building. The application of AIGC fosters innovation and rejuvenation in games.
Snail believes that the advanced technology of AIGC enables game designers to create more detailed, diverse game worlds, enhancing game quality and user experience while unlocking greater potential for gameplay and generating increased commercial value for the Company. For example, AI is expected to drive unlimited content generation in Snail’s Metaverse gaming project, combined with Snail’s independently developed 3D engine, Flexi. Transitioning from User Generated Content (“UGC”) to AIGC, AIGC technology can significantly enrich game content and provide a broader variety of gameplay options and attractiveness, increasing players’ engagement and stickiness.
Snail has already successfully applied AIGC technology in multiple game projects, achieving excellent results. Through the utilization of AIGC, Snail has accelerated production and iteration in game development, significantly improving game quality and user experience. Snail will continue to delve into the application of AI technology in game development and believes that AIGC will play a vital role in transforming static data production to dynamic data interaction and become an essential asset in game development.
Jim Tsai, Chief Executive Officer of Snail, commented, “We are thrilled with the progress we’ve made in integrating AIGC into our game development process. As we continue to push the boundaries of what’s possible with AI, we’re confident that our commitment to innovation will result in even more immersive and engaging gaming experiences for our players.”
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.
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, plans and objectives. The statements Snail makes regarding the following matters are forward-looking by their nature: growth prospects and strategies; expectations regarding the application of AIGC and the implementation of new technology, 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; assumptions underlying any of the foregoing.
CULVER CITY, Calif., May 22, 2023 (GLOBE NEWSWIRE) — Snail, Inc. (Nasdaq: SNAL) (“Snail” or “the Company”), a leading, global independent developer and publisher of interactive digital entertainment, today announced the successful introduction of Project Hermes, an innovative Web 3 gaming venture, at Consensus 2023 held in April in Austin, Texas.
Project Hermes is a massive sandbox survival game that masterfully integrates blockchain technology into gaming to create a unique and immersive gameplay. Powered by Snail’s in-house “Flexi” engine, the game delivers stunning visuals and seamless gameplay, allowing players to explore, build, and compete as they traverse the galaxy.
The game features an open-world design with diverse planetary terrains and resources, offering unparalleled freedom to explore and conquer. Players can discover new planets, battle alien tribes, and gather resources to survive. Project Hermes allows players to create unique in-game identities and develop personalized gameplay strategies. The open-world design grants players the freedom to traverse and conquer various planets, each with distinctive terrain and resources. Furthermore, Project Hermes incorporates multiplayer elements, enabling players to form alliances, engage in battles, and conquer planets collaboratively.
Jim Tsai, Chief Executive Officer of Snail, commented, “Project Hermes represents a significant milestone for Snail as we merge cutting-edge blockchain technology with our rich gaming heritage. We are delighted with the positive reception of our innovative game at Consensus 2023. As we progress, we remain committed to being a game-changer in the gaming industry, offering players an immersive and engaging gaming experience that caters to both seasoned gamers and casual players alike.”
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.
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, 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; its ability to retain and increase its player base and develop new video games and enhance existing games; assumptions underlying any of the foregoing.
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.
Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.
Patrick McCann, CFA, Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Q1 results. The company reported quarterly results largely in line with our expectations. Q1 revenue was $13.5 million and adj. EBITDA was a loss of $3.4 million, compared with our estimates of $12.5 million and a loss of $2.6 million, respectively.
ARK Remastered. The release of a remastered version of its popular game ARK is expected later this year. The game, which will be remastered using Unreal Engine 5, will be called ARK: Survival Ascended, and will include the entirety of ARK: Survival Evolved, including previously issued DLCs. Core fans appear excited about the upcoming release, which we believe could offer a favorable revenue boost during the lead up to the ARK 2 release in 2024.
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*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
CULVER CITY, Calif., May 10, 2023 (GLOBE NEWSWIRE) — Snail, Inc. (Nasdaq: SNAL) (“Snail” or “the Company”), a leading, global independent developer and publisher of interactive digital entertainment, today announced financial results for the three months ended March 31, 2023.
Jim Tsai, Chief Executive Officer of Snail, commented: “We are thrilled by the ongoing engagement surrounding our ARK series. We have faced the challenging choice of postponing the release of ARK 2 until next year to ensure that we devote ample time to enhancing the game’s quality and providing an unparalleled gaming experience for our players.”
Tsai continued, “We have exciting plans to launch an expanded edition of the ARK series, which will undergo a remastering process using Unreal Engine 5. This remastered series will offer an extraordinary experience to both new and existing players, while also establishing a solid foundation for a successful launch of ARK 2.”
First Quarter 2023 and Subsequent Financial and Business Highlights
Revenue was $13.5 million for the three months ended March 31, 2023, compared to revenue of $28.1 million in the prior year period, representing a decrease of $14.6 million. The decrease in net revenues was due to a decrease in sales of ARK, attributable to a decrease in the average sales price per unit, and the recognition of additional revenue from deferred revenue and one-time payments related to contracts with certain platforms that did not repeat in the three months ended March 31, 2023. ARK sales decreased by $3.1 million, deferred revenue from contracts decreased by $2.5 million, and one-off contract payments decreased by $8.5 million. Sales of the Company’s smaller titles decreased by a collective $0.7 million. These decreases in the Company’s smaller titles were partially offset by $0.2 million in revenue related to West Hunt.
ARK: Survival Evolved. In the three months ended March 31, 2023, ARK: Survival Evolved averaged a total of 276,144 daily active users (“DAUs”) versus 257,168 DAUs in the prior year period.
ARK units sold increased for the first quarter 2023 compared to the same period last year; approximately 1.6 million vs. 1.2 million, respectively.
Through March 31, 2023, total playtime for the ARK franchise amounted to 3.2 billion hours.
The Company sold an additional 0.4 million units of its ARK franchise in the three-month period ended March 31, 2023, versus the prior year period, due to the increase in sales promotions offered by our platform partners during the period.
The Company expects to release ARK: Survival Ascended later this year. ARK: Survival Ascended is the entire base game of ARK: Survival Evolved, remastered with Unreal Engine 5 and expanded numerous times. It’ll feature The Island, Survival of the Fittest, and a collection of downloadable content (“DLC”) maps released over time.
Net loss was $3.0 million for the three months ended March 31, 2023 as compared to a net income of $5.8 million for the three months ended March 31, 2022, representing a decrease of $8.8 million. The decrease was primarily due to a decrease in revenue of $14.6 million, an increase in research and development expense of $1.2 million, a net decrease in interest income – related parties of $0.5 million, an increase in interest expense of $0.1 million, offset by a decrease in royalties of $3.2 million, a decrease in license cost and license right amortization of $1.3 million, a decrease in merchant and engine fees of $0.5 million, and a decrease in the Company’s tax provision of $2.3 million.
Bookings for the three months ended March 31, 2023 were $13.3 million, a decrease of $12.2 million, or 47.6%, compared to the three months ended March 31, 2022. The decrease was primarily the result of decreased ARK revenues in 2023 due to the factors mentioned above.
Earnings before interest, taxes, depreciation and amortization (“EBITDA”) for the first quarter of 2023 was a loss of $3.4 million compared to a gain of $7.2 million in the prior year period.
As of March 31, 2023, unrestricted cash was $4.1 million versus $12.9 million as of December 31, 2022.
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.
We define EBITDA as net income (loss) before (i) interest expense, (ii) interest income, (iii) income tax provision (benefit from) and (iv) depreciation and amortization expense. The following table provides a reconciliation from net income (loss) to EBITDA:
Webcast Details
The Company will host a webcast at 5:00 PM ET today to discuss the first quarter 2023 financial results. Participants may access the live webcast and replay on the Company’s investor relations website at https://investor.snail.com/. The earnings call may also be accessed by dialling 1 (877) 451-6152 from the United States, or by dialling 1 (201) 389-0879 internationally.
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.
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 conflict involving Russia and Ukraine on its business and the global economy generally; rulings by courts or other governmental authorities; the Share Repurchase Program, including expectations regarding the timing and manner of repurchases made under the program; its plans to pursue and successfully integrate strategic acquisitions; 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, annual reports on Forms 10-K and quarterly reports on 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.
CULVER CITY, Calif., May 09, 2023 (GLOBE NEWSWIRE) — Snail, Inc. (Nasdaq: SNAL), a leading, global independent developer and publisher of interactive digital entertainment, announced today that it will report financial results for the first quarter ended March 31, 2023 on Wednesday, May 10, 2023, after the U.S. stock market closes. Management will host a conference call and webcast on the same day at 5:00 p.m. ET to discuss the results.
Participants may access the live webcast and replay on the Company’s investor relations website at https://investor.snail.com/. The earnings call may also be accessed by dialing 1 (877) 451-6152 from the United States, or by dialing 1 (201) 389-0879 internationally.
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.
CULVER CITY, Calif., April 26, 2023 (GLOBE NEWSWIRE) — Snail, Inc. (Nasdaq: SNAL) (“Snail” or “the Company”), a leading, global independent developer and publisher of interactive digital entertainment, today announced that Jim Tsai, Chief Executive Officer, and Heidy Chow, Chief Financial Officer, will be participating in the Inaugural EF Hutton Global Conference on May 11, 2023, at the Plaza Hotel in New York City. Management will host one-on-one and group meetings.
The Inaugural EF Hutton Global Conference is a two-day, invitation-only event featuring key executives from approximately 150 public and private companies to convey their unique stories to a diverse audience that includes institutional investors, high-net worth individuals, corporate clients and members of the press.
To schedule a meeting with management, please contact your EF Hutton representative.
About EF Hutton EF Hutton, division of Benchmark Investments, LLC, is a global, full-service investment bank headquartered in New York, New York. EF Hutton is a division of Benchmark Investments, LLC, a subsidiary of Kingswood US, LLC, an indirect subsidiary of Kingswood Holdings Limited (AIM: KWG). The synergies and direct access to Kingswood Holdings Limited provide EF Hutton with a unique global presence and broad platform outreach to ensure success for its clients.
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.
CULVER CITY, Calif., April 24, 2023 (GLOBE NEWSWIRE) — Snail, Inc. (Nasdaq: SNAL) (“Snail” or “the Company”), a leading, global independent developer and publisher of interactive digital entertainment, today announced ARK: Survival Ascended (“ASA”), the next-generation remaster of the beloved ARK: Survival Evolved, harnessing the power of Unreal Engine 5 (“UE5”), is expected to release on Xbox Series S/X, PC (Windows/Steam), and PlayStation 5 in August 2023.
ASA is expected to be available as a standalone package on all platforms at $59.99. This comprehensive package will contain the remastered and next-generation optimized content, including The Island, a revamped Survival of the Fittest, and other DLCs and maps (including Scorched Earth, Aberration, Extinction, Genesis Part 1 & Part 2, Fjordur, Ragnarok, The Center, Lost Island, Valguero, and Crystal Isles).
Upon launch, ASA players will gain access to The Island, Survival of the Fittest and Scorched Earth. The other DLCs will be added over time. The game will showcase significant improvements and enhancements and ongoing planned updates with new features, content drops, creatures, items, structures, and DLC. Survival of the Fittest will be integrated into ASA as a new fully-supported game mode, backed by a dedicated development team concentrating on gameplay changes and adjustments. Moreover, a new canonical-story expansion pack for ASA is expected to be available in Q4 2023, introducing four new creatures and more details to be revealed later this year.
Snail is committed to delivering the finest gaming experience and will continue to support the next generation of ARK with continuous updates and enhancements.
Jim Tsai, Chief Executive Officer of Snail, commented, “We are excited to bring ASA to our loyal players and new audiences alike. Leveraging the power of UE5, we aim to elevate the iconic ARK gaming experience to new heights, providing enhanced visuals, gameplay, and features that will engage the community for years to come.”
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.
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 plans and objectives related to the release of ASA, including but not limited to, the timing of the release, the pricing of ASA, the content and features of ASA, the release of the expansion pack for ASA. 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; expansion of upcoming games; its ability to develop new video games and enhance existing games; its relationships with third-party platforms such as Xbox Live and Game Pass, PlayStation Network, Steam, Epic Games Store, Google Stadia, the Apple App Store, the Google Play Store and the Amazon Appstore; assumptions underlying any of the foregoing.
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.
Michael Kupinski, Director of Research – Digital, Media & Technology Analyst, Noble Capital Markets, Inc.
Patrick McCann, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Initiating coverage with an Outperform rating and $9 target. Snail is a game developer and publisher, which boasts a portfolio of games that have demonstrated sustained popularity among gaming enthusiasts. Moreover, the company has a broad range of opportunities to grow revenue through additional games, expansion packs, and alternative ways to use its IP.
Expanding market opportunity. The total global video game market in terms of revenue was $193 billion in 2021 and is expected to grow at 4% CAGR, from 2021-2025. We believe that Snail should grow faster than the industry over the next few years as it launches new products.
Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
