Snail (SNAL) The Gateway Conference 2025 summary

Industry overview and company positioning

• Video game industry now surpasses music, movie, and TV combined in size, driven by internet and smartphones.

• Shift from entertainment IPs being adapted into games to games becoming major entertainment IPs.

• Free-to-play model revolutionized user acquisition and monetization, with low conversion rates but high reach.

• Company has over 20 years in gaming, with a U.S. entity listed on NASDAQ since 2022.

• Leading IP, ARK: Survival Evolved, has maintained top chart positions across platforms since 2015.

Financial performance and revenue drivers

• 2024 net revenue reached $85 million from 4.7 million units sold, with a gross margin over 36%.

• Digital distribution accounts for 90% of sales; mobile games contribute a small portion of revenue.

• ARK franchise represents about 85% of total revenue.

• Over $950 million in gross sales and 100 million installs for ARK base game and DLCs.

• Revenue spikes align with new game or DLC launches; consistent performance quarter over quarter.

Product and franchise expansion

• Regular release of expansion packs and DLCs sustains player engagement and revenue.

• 2025 sees launches of Echoes of Elysium and Honeycomb; 2026 will feature internally developed For the Stars and Nine Yin Sutra Immortal.

• Bellwright, developed by the Poland subsidiary, released in 2024.

• R2 sequel will feature new gameplay elements and celebrity involvement, aiming for broader appeal.

• Lean operations with a mix of internal teams and outsourced contractors to control costs.