- 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 1.6 million units and has an average of 182,000 daily active users (“DAUs”) with a peak of 308,000 DAUs.
- ARK: Survival Evolved. In the three months and year ended
December 31, 2023 , ARK: Survival Evolved averaged a total of 192,000 DAUs and 235,000 DAUs, respectively.- ARK: Survival Evolved units sold increased for the fourth quarter 2023 compared to the same period in 2022; approximately 0.7 million vs. 1.6 million, respectively.
- Units sold decreased for the year ended
December 31, 2023 compared to the same period in 2022; approximately 4.4 million vs. 5.5 million, respectively.
Net revenues for the three months ended
Net revenues for the year ended
Net income for the three months ended
Net loss was
Bookings for the three months ended
Bookings for the year ended
Earnings before interest, taxes, depreciation and amortization (“EBITDA”) for the three months ended
EBITDA for the year ended
As of
Use of Non-GAAP Financial Measures
In addition to the financial results determined in accordance with
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 | Years ended | |||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||
(in millions) | (in millions) | |||||||||||||
Total net revenue | $ | 28.6 | $ | 15.3 | $ | 60.9 | $ | 74.4 | ||||||
Change in deferred net revenue | 24.0 | (3.4 | ) | 24.8 | (10.7 | ) | ||||||||
Bookings | $ | 52.6 | $ | 11.9 | $ | 85.7 | $ | 63.7 | ||||||
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:
Three Months ended | Years ended | |||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||
(in millions) | (in millions) | |||||||||||||
Net (loss) income | $ | 2.4 | $ | (2.3 | ) | $ | (9.1 | ) | $ | 1.0 | ||||
Interest income and interest income - related parties | - | (0.2 | ) | (0.1 | ) | (0.8 | ) | |||||||
Interest expense and interest expense - related parties | 0.5 | 0.3 | 1.5 | 0.9 | ||||||||||
(Benefit from) provision for income taxes | 0.6 | (3.2 | ) | (2.4 | ) | (2.4 | ) | |||||||
Depreciation and amortization expense, property and equipment | 0.1 | 0.2 | 0.4 | 0.6 | ||||||||||
EBITDA | $ | 3.6 | $ | (5.2 | ) | $ | (9.7 | ) | $ | (0.7 | ) | |||
Webcast Details
The Company will host a webcast at
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
Further information on risks, uncertainties and other factors that could affect Snail’s financial results are included in its filings with the
About
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
Consolidated Balance Sheets | |||||||||
ASSETS | |||||||||
Current Assets: | |||||||||
Cash and cash equivalents | $ | 15,198,123 | $ | 12,863,817 | |||||
Restricted escrow deposit | - | 1,003,804 | |||||||
Accounts receivable, net of allowances for credit losses of | 25,134,808 | 6,758,024 | |||||||
Accounts receivable - related party | - | 11,344,184 | |||||||
Loan and interest receivable - related party | 103,753 | 101,753 | |||||||
Prepaid expenses - related party | 6,044,404 | - | |||||||
Prepaid expenses and other current assets | 10,169,448 | 10,565,141 | |||||||
Total current assets | 56,650,536 | 42,636,723 | |||||||
Restricted cash and cash equivalents | 1,116,196 | 6,374,368 | |||||||
Accounts receivable - related party, net of current portion | 7,500,592 | - | |||||||
Prepaid expenses - related party | 7,784,062 | 5,582,500 | |||||||
Property, plant and equipment, net | 4,682,066 | 5,114,799 | |||||||
Intangible assets, net - license - related parties | - | 1,384,058 | |||||||
Intangible assets, net - other | 271,717 | 272,521 | |||||||
Deferred income taxes | 10,247,500 | 7,602,536 | |||||||
Other noncurrent assets | 164,170 | 198,668 | |||||||
Operating lease right-of-use assets, net | 2,440,690 | 3,606,398 | |||||||
Total assets | $ | 90,857,529 | $ | 72,772,571 | |||||
LIABILITIES, NONCONTROLLING INTERESTS AND STOCKHOLDERS' EQUITY | |||||||||
Current Liabilities: | |||||||||
Accounts payable | $ | 12,102,929 | $ | 9,452,391 | |||||
Accounts payable - related parties | 23,094,436 | 19,918,259 | |||||||
Accrued expenses and other liabilities | 2,887,193 | 1,474,088 | |||||||
Interest payable - related parties | 527,770 | 527,770 | |||||||
Revolving loan | 6,000,000 | 9,000,000 | |||||||
Notes payable | 2,333,333 | 5,416,666 | |||||||
Convertible notes, net of discount | 797,361 | - | |||||||
Current portion of long-term promissory note | 2,811,923 | 86,524 | |||||||
Current portion of deferred revenue | 19,252,628 | 4,335,404 | |||||||
Current portion of operating lease liabilities | 1,505,034 | 1,371,227 | |||||||
Total current liabilities | 71,312,607 | 51,582,329 | |||||||
Accrued expenses | 254,731 | 457,024 | |||||||
Promissory note, net of current portion | - | 3,221,963 | |||||||
Deferred revenue, net of current portion | 15,064,078 | 5,216,042 | |||||||
Operating lease liabilities, net of current portion | 1,425,494 | 2,930,529 | |||||||
Total liabilities | 88,056,910 | 63,407,887 | |||||||
Commitments and contingencies | |||||||||
Stockholders' Equity: | |||||||||
Class A common stock, | 927 | 925 | |||||||
Class B common stock, | 2,875 | 2,875 | |||||||
Additional paid-in capital | 26,171,575 | 23,436,942 | |||||||
Accumulated other comprehensive loss | (254,383 | ) | (307,200 | ) | |||||
Accumulated deficit | (13,949,325 | ) | (4,863,250 | ) | |||||
11,971,669 | 18,270,292 | ||||||||
(3,671,806 | ) | (3,414,713 | ) | ||||||
8,299,863 | 14,855,579 | ||||||||
Noncontrolling interests | (5,499,244 | ) | (5,490,895 | ) | |||||
Total stockholders' equity | 2,800,619 | 9,364,684 | |||||||
Total liabilities, noncontrolling interests and stockholders' equity | $ | 90,857,529 | $ | 72,772,571 | |||||
Consolidated Statements of Operations and Comprehensive Income (Loss) | ||||||||||||||||
Three months ended | For the Years Ended | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
(Unaudited) | ||||||||||||||||
Revenues, net | $ | 28,570,222 | $ | 15,311,857 | $ | 60,902,098 | $ | 74,444,141 | ||||||||
Cost of revenues | 18,646,615 | 12,724,280 | 48,306,403 | 53,121,676 | ||||||||||||
Gross profit | 9,923,607 | 2,587,577 | 12,595,695 | 21,322,465 | ||||||||||||
Operating expenses: | ||||||||||||||||
General and administrative | 3,900,962 | 6,369,288 | 15,816,088 | 18,713,958 | ||||||||||||
Research and development | 1,165,381 | 1,295,631 | 5,057,421 | 2,955,592 | ||||||||||||
Advertising and marketing | 1,094,146 | 145,365 | 1,582,464 | 714,492 | ||||||||||||
Depreciation and amortization | 86,222 | 130,262 | 432,306 | 565,906 | ||||||||||||
Loss (gain) on disposal of fixed assets | 427 | (17,067 | ) | 427 | (17,067 | ) | ||||||||||
Total operating expenses | 6,247,138 | 7,923,479 | 22,888,706 | 22,932,881 | ||||||||||||
(Loss) income from operations | 3,676,469 | (5,335,902 | ) | (10,293,011 | ) | (1,610,416 | ) | |||||||||
Other income (expense): | ||||||||||||||||
Interest income | 31,443 | 155,124 | 129,854 | 200,913 | ||||||||||||
Interest income - related parties | 504 | 504 | 2,000 | 582,632 | ||||||||||||
Interest expense | (570,523 | ) | (308,955 | ) | (1,531,719 | ) | (922,293 | ) | ||||||||
Interest expense - related parties | - | - | - | (3,222 | ) | |||||||||||
Other income | (55,351 | ) | (17,068 | ) | 265,980 | 302,086 | ||||||||||
Foreign currency transaction (loss) gain | (42,574 | ) | (23,623 | ) | (68,180 | ) | (1,945 | ) | ||||||||
Total other income (expense), net | (636,501 | ) | (194,018 | ) | (1,202,065 | ) | 158,171 | |||||||||
Income (loss) before (benefit from) provision for income taxes | 3,039,968 | (5,529,920 | ) | (11,495,076 | ) | (1,452,245 | ) | |||||||||
Provision for (benefit from) income taxes | 643,728 | (3,249,728 | ) | (2,400,652 | ) | (2,446,423 | ) | |||||||||
Net income (loss) | 2,396,240 | (2,280,192 | ) | (9,094,424 | ) | 994,178 | ||||||||||
Net (loss) income attributable to non-controlling interests | (1,128 | ) | (9,977 | ) | (8,349 | ) | 46,371 | |||||||||
Net income (loss) attributable to | $ | 2,397,368 | $ | (2,270,215 | ) | $ | (9,086,075 | ) | $ | 947,807 | ||||||
Comprehensive income statement: | ||||||||||||||||
Net (loss) income | $ | 2,396,240 | $ | (2,280,192 | ) | $ | (9,094,424 | ) | $ | 994,178 | ||||||
Other comprehensive income (loss) related to currency translation adjustments, net of tax | 33,302 | 36,077 | 52,817 | (40,643 | ) | |||||||||||
Total comprehensive income (loss) | $ | 2,429,542 | $ | (2,244,115 | ) | $ | (9,041,607 | ) | $ | 953,535 | ||||||
Net income (loss) attributable to Class A common stockholders: | ||||||||||||||||
Basic | $ | 516,955 | $ | (530,686 | ) | $ | (1,960,813 | ) | $ | 228,482 | ||||||
Diluted | $ | 516,955 | $ | (530,686 | ) | $ | (1,960,813 | ) | $ | 228,482 | ||||||
Net income (loss) attributable to Class B common stockholders: | ||||||||||||||||
Basic | $ | 1,880,413 | $ | (1,739,529 | ) | $ | (7,125,262 | ) | $ | 719,325 | ||||||
Diluted | $ | 1,880,413 | $ | (1,739,529 | ) | $ | (7,125,262 | ) | $ | 719,325 | ||||||
Income (loss) per share attributable to Class A common stockholders: | ||||||||||||||||
Basic | $ | 0.07 | $ | (0.06 | ) | $ | (0.25 | ) | $ | 0.03 | ||||||
Diluted | $ | 0.07 | $ | (0.06 | ) | $ | (0.25 | ) | $ | 0.03 | ||||||
Income (loss) per share attributable to Class B common stockholders: | ||||||||||||||||
Basic | $ | 0.07 | $ | (0.06 | ) | $ | (0.25 | ) | $ | 0.03 | ||||||
Diluted | $ | 0.07 | $ | (0.06 | ) | $ | (0.25 | ) | $ | 0.03 | ||||||
Weighted-average shares used to compute income per share attributable to Class A common stockholders(1): | ||||||||||||||||
Basic | 7,914,564 | 8,770,468 | 7,911,369 | 9,131,512 | ||||||||||||
Diluted | 7,914,564 | 8,770,468 | 7,911,369 | 9,131,512 | ||||||||||||
Weighted-average shares used to compute income 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 | ||||||||||||
Consolidated Statements of Cash Flows | |||||||||
For the years ended | 2023 | 2022 | |||||||
Cash flows from operating activities: | |||||||||
Net (loss) income | $ | (9,094,424 | ) | $ | 994,178 | ||||
Adjustments to reconcile net (loss) income to net cash used in operating activities: | |||||||||
Amortization - intangible assets - license | - | 250,000 | |||||||
Amortization - intangible assets - license, related parties | 1,384,058 | 7,403,918 | |||||||
Amortization - intangible assets - other | 804 | 3,751 | |||||||
Amortization - loan origination fees and debt discounts | 124,595 | 26,514 | |||||||
Accretion - convertible notes | 306,664 | - | |||||||
Depreciation and amortization - property and equipment | 432,306 | 565,906 | |||||||
Stock-based compensation expense | 848,035 | 223,250 | |||||||
Gain on lease termination | - | (122,533 | ) | ||||||
Gain on paycheck protection program and economic injury disaster loan forgiveness | - | (174,436 | ) | ||||||
Loss (gain) on disposal of fixed assets | 427 | (17,067 | ) | ||||||
Interest income from shareholder loan | - | (580,878 | ) | ||||||
Interest income from restricted escrow deposit | - | (3,804 | ) | ||||||
Credit losses | 581,498 | - | |||||||
Deferred taxes, net | (2,644,964 | ) | 588,478 | ||||||
Changes in assets and liabilities: | |||||||||
Accounts receivable | (18,939,465 | ) | 5,486,716 | ||||||
Accounts receivable - related party | 3,824,775 | (2,908,361 | ) | ||||||
Prepaid expenses - related party | (8,245,966 | ) | (2,437,500 | ) | |||||
Prepaid expenses and other current assets | 501,104 | (1,875,919 | ) | ||||||
Other noncurrent assets | - | (26,052 | ) | ||||||
Accounts payable | 2,992,856 | 4,976,192 | |||||||
Accounts payable - related parties | 3,176,177 | (3,815,313 | ) | ||||||
Accrued expenses and other liabilities | 659,647 | (1,039,927 | ) | ||||||
Interest receivable - related party | (2,000 | ) | - | ||||||
Interest payable - related parties | - | 986 | |||||||
Lease liabilities | (205,520 | ) | (145,949 | ) | |||||
Deferred revenue | 24,765,261 | (10,729,488 | ) | ||||||
Net cash provided by (used in) operating activities | 465,868 | (3,357,338 | ) | ||||||
Cash flows from investing activities: | |||||||||
Repayment on loan provided by related party | - | (300,000 | ) | ||||||
Purchases of property and equipment | - | (5,256 | ) | ||||||
Proceeds from sale of property and equipment | - | 19,500 | |||||||
Repayment on Pound Sand note | - | 1,496,063 | |||||||
Net cash provided by investing activities | - | 1,210,307 | |||||||
Cash flows from financing activities: | |||||||||
Repayments on promissory note | (79,897 | ) | (70,961 | ) | |||||
Repayments on notes payable | (6,500,000 | ) | (4,166,667 | ) | |||||
Repayments on revolving loan | (3,000,000 | ) | - | ||||||
Borrowings on notes payable | 3,000,000 | - | |||||||
Borrowings on short-term note | - | 10,000,000 | |||||||
Proceeds from issuance of convertible notes | 847,500 | - | |||||||
Refund of dividend withholding tax overpayment | 1,886,600 | - | |||||||
Payments on paycheck protection program and economic injury disaster loan | - | (90,198 | ) | ||||||
Refund of payments on paycheck protection program and economic injury disaster loan | - | 48,305 | |||||||
Cash dividend declared and paid | - | (8,200,000 | ) | ||||||
Purchase of treasury stock | (257,093 | ) | (3,414,713 | ) | |||||
Proceeds from initial public offering, net of offering costs | - | 11,791,705 | |||||||
Warrants issued to underwriters | - | 193,927 | |||||||
Payments of capitalized offering costs | - | (1,247,567 | ) | ||||||
Payments of offering costs in accounts payable | (342,318 | ) | - | ||||||
Release of restricted escrow deposit | 1,003,804 | - | |||||||
Net cash (used in) provided by financing activities | (3,441,404 | ) | 4,843,831 | ||||||
Effect of currency translation on cash and cash equivalents | 51,670 | (12,730 | ) | ||||||
Net (decrease) increase in cash and cash equivalents, and restricted cash and cash equivalents | (2,923,866 | ) | 2,684,070 | ||||||
Cash and cash equivalents, and restricted cash and cash equivalents - beginning of period | 19,238,185 | 16,554,115 | |||||||
Cash and cash equivalents, and restricted cash and cash equivalents - end of period | $ | 16,314,319 | $ | 19,238,185 | |||||
Supplemental disclosures of cash flow information | |||||||||
Cash paid during the period for: | |||||||||
Interest | $ | 934,523 | $ | 788,063 | |||||
Income taxes | $ | 248,388 | $ | 888,303 | |||||
Noncash transactions during the period for: | |||||||||
Loan and interest payable - related parties | $ | - | $ | 103,890 | |||||
Loan and interest receivable - related parties | $ | - | $ | (103,890 | ) | ||||
Loan and interest from shareholder | $ | - | $ | 94,934,400 | |||||
Dividend distribution | $ | - | $ | (94,934,400 | ) | ||||
Noncash finance activity during the period for: | |||||||||
Issuance of warrants in connection with equity line of credit | $ | (105,411 | ) | $ | - | ||||
Gain on paycheck protection program and economic injury disaster loan forgiveness | $ | - | $ | (174,436 | ) | ||||
Snail Games | $ | - | $ | (5,000 | ) | ||||
$ | - | $ | 5,000 | ||||||
Offering costs included in accounts payable | $ | - | $ | 605,295 | |||||
Funding of the escrow deposit | $ | - | $ | (1,000,000 | ) | ||||
Source:
2024 GlobeNewswire, Inc., source