Snail Games' net revenue in 2023 will be US$60.9 million, a year-on-year decrease

DoNews April 2 news, Snail, Inc. (Nasdaq: SNAL) (hereinafter referred to as "Snail" or the "Company") today announced the fourth quarter and full year ended December 31, 2023 financial performance.

2023 Fourth quarter and full-year business highlights:

Ark: Survival Ascension. On October 25, 2023, the company launched a remastered version of the flagship Ark series using the excellent image quality of Unreal Engine 5, and introduced a cross-platform modification system that changed the game, opening a new era of creativity. On the day of release, Ark: Survival Ascension was the number one selling game on Steam. Ark: Survival Ascend has sold 1.6 million copies since the game's launch and has averaged 182,000 daily active users ("DAUs"), with a peak of 308,000. ARK: Survival Evolved. In the three months and full year ended December 31, 2023, Ark: Survival Evolved's average daily active users were 192,000 and 235,000, respectively. Ark: Survival Evolved sold approximately 700,000 copies in the fourth quarter of 2023. Sales for the full year ended December 31, 2023 were approximately 4.4 million copies.

Net income for the three months ended December 31, 2023 was $28.6 million, compared with $15.3 million for the three months ended December 31, 2022. The increase in net revenue was primarily due to the release of Ark: Survival Ascension.

Net income for the full year ended December 31, 2023 was $60.9 million, compared with $74.4 million for the same period last year. The decrease in net income was due to a decrease in Ark mobile game sales of US$2.9 million, a decrease in one-time deferred revenue from contracts recognized in 2022 of US$10.3 million, and a one-time payment of US$8.5 million related to free download promotions and DLC in 2022. did not occur in 2023, and an increase in deferred revenue related to Ark of $25.2 million; partially offset by an increase in Ark sales of $32.7 million.

Net profit for the three months ended December 31, 2023 was US$2.4 million, compared with a year-on-year net loss of US$2.3 million for the three months ended December 31, 2022. The increase in net income was due to a $2.5 million decrease in general and administrative expenses and a decrease in professional fees related to compliance with public company requirements due to the release of Ark: Survival Ascension; partially driven by an increase of $0.9 million in advertising and advertising related to the release of Ark: Survival Ascension. Marketing costs were offset by a $3.9 million decrease in income taxes for the period.

Net loss for the full year ended December 31, 2023 was $9.1 million, compared with net income of $1.0 million for the full year ended 2022. The decrease was due to a decrease in revenue of $13.5 million, an increase in research and development costs of $2.2 million, an increase in advertising and marketing costs of $0.9 million, an increase in interest expense of $0.6 million and a decrease in related party interest income of $0.6 million; partially accounted for by income costs This was offset by a $4.8 million decrease in general and administrative expenses of $2.9 million.

Bookings (Bookings) were US$52.6 million for the three months ended December 31, 2023, compared with US$11.9 million for the three months ended December 31, 2022. The increase in subscriptions is due to the strong launch of Ark: Survival Ascend on Steam, PlayStation and Xbox platforms.

Orders for the full year ended December 31, 2023 were $85.7 million, compared to $63.7 million for the full year ended December 31, 2022. The increase in bookings is due to the release of Ark: Survival Ascension in the fourth quarter of 2023. In addition to increased Ark: Survival Ascension sales, the company deferred approximately $22 million in revenue from unreleased DLC for Ark: Survival Ascension in the fourth quarter of 2023, as well as a one-time deferral of $10.3 million recognized in 2022 Contract revenue has not occurred in 2023.

Earnings before interest, taxes, depreciation and amortization ("EBITDA") for the three months ended December 31, 2023 increased by $8.8 million, or 169%, compared to the three months ended December 31, 2022. The increase in EBITDA was primarily due to an increase in net income of $4.7 million, partially offset by an increase in income tax provisions of $3.8 million.

EBITDA for the full year ended December 31, 2023 decreased by $9 million compared with the same period for the full year ended December 31, 2022. The decrease in EBITDA was primarily due to a decrease in net income of $10.1 million, partially offset by a decrease in interest income of $0.7 million and an increase in interest expense of $0.6 million.

Unrestricted cash was $15.2 million as of December 31, 2023, compared to $12.9 million as of December 31, 2022.

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