Snail (SNAL) Q4 2024 earnings summary

Executive summary

• Q4 2024 net revenue was $26.2 million, down from $28.6 million in Q4 2023, mainly due to lower ARK sales, partially offset by deferred revenue recognition from new DLC releases.

• Full year 2024 net revenue rose to $84.5 million from $60.9 million in 2023, driven by deferred revenue recognition and Bellwright sales.

• Net income for Q4 2024 was $1.1 million, down from $2.4 million in Q4 2023, but full year net income improved to $1.8 million from a net loss of $9.1 million in 2023.

• EBITDA for Q4 2024 was $1.6 million, down from $3.6 million in Q4 2023; full year EBITDA was $3.2 million, up from a loss of $9.7 million in 2023.

• Launched ARK: Survival Ascended in October 2023, achieving #1 on Steam and selling 3.4 million units with strong daily active user metrics.

Financial highlights

• Q4 2024 bookings were $17 million, down from $52.6 million in Q4 2023, reflecting the prior year’s ARK: Survival Ascended release.

• Full year 2024 bookings were $75.7 million, down 11.7% year-over-year.

• Deferred revenue recognition from ARK DLCs contributed $32.2 million to net revenues in 2024.

• Gross profit for 2024 was $30.2 million, up from $12.6 million in 2023.

• Unrestricted cash and equivalents stood at $7.3 million as of December 31, 2024, down from $15.2 million at year-end 2023.

Outlook and guidance

• Bellwright is expected to launch on Xbox in Q4 2025, with potential for similar user numbers as PC.

• Honeycomb and Echoes of Elysium are scheduled for release in the second half of 2025; Robots at Midnight in the first half of 2025.

• ARK: Lost Colony DLC is planned for late 2025, and the Astraeus map and Aquatica DLC will expand the ARK universe.

• Plans to release nine acquired games in 2025, with continued rollout of new short film dramas on SaltyTV.

• Management expects ongoing portfolio expansion and new product launches to drive future growth.