Snail (SNAL) Q2 2024 earnings summary

Executive summary

• Net revenue for Q2 2024 was $21.6 million, up from $9.9 million in Q2 2023, driven by strong ARK franchise sales, new game launches, and content updates.

• Net income reached $2.3 million, reversing a net loss of $4.1 million in Q2 2023.

• EBITDA for Q2 2024 was $3.1 million, a $7.9 million improvement year-over-year.

• The ARK franchise accounted for 77.2% of Q2 revenue, with 1.3 million units sold in the quarter and 3.7 billion hours played.

• Bookings for Q2 2024 were $22.9 million, compared to $9.3 million in Q2 2023.

Financial highlights

• Gross profit for Q2 2024 was $8.1 million, up from $0.6 million in Q2 2023.

• Operating income improved to $2.7 million from a loss of $4.9 million year-over-year.

• Unrestricted cash and cash equivalents stood at $15.5 million as of June 30, 2024.

• Deferred revenue increased to $40.3 million as of June 30, 2024.

• Net income per share for Class A and B stockholders was $0.06, compared to a loss of $0.11 per share in Q2 2023.

Outlook and guidance

• Management expects continued revenue growth from new ARK DLCs and titles, with $16.9 million in deferred revenue to be recognized in the next 12 months.

• Ongoing content updates for ARK: Survival Ascended, with a new DLC every three months.

• Large content update for Bellwright expected in Q4 2024.

• Additional game releases and new IPs planned through 2025.

• The company is monitoring compliance with Nasdaq listing requirements and may consider a reverse stock split if necessary.