Snail, Inc. reported a net revenue of $60.9 million for the fiscal year ended December 31, 2023, a decrease of 18.2% from $74.4 million in 2022. The company experienced a net loss of $9.1 million, compared to a net income of $1.0 million in the previous year. This decline in revenue and profitability was attributed to a significant decrease in sales from the ARK franchise, particularly ARK Mobile, and a reduction in one-time deferred revenue recognized in 2022. The ARK franchise, which has historically been a major revenue driver, accounted for 87.8% of total revenues in 2023, down from 90.8% in 2022.
In terms of operational metrics, Snail, Inc. reported an increase in daily active users (DAUs) for its ARK titles, averaging 416,479 DAUs in 2023, up from 305,376 in 2022. The company has also expanded its user base, selling 6.3 million units in 2023, an increase from 5.8 million in 2022. The company’s gaming portfolio includes a mix of platforms, with approximately 43.7% of revenue coming from consoles, 43.4% from PC, and 9.6% from mobile platforms. The total number of employees as of December 31, 2023, was 97, with a significant portion dedicated to technology and content development.
Strategically, Snail, Inc. has focused on enhancing its ARK franchise, launching ARK: Survival Ascended in late 2023, which contributed to increased sales and deferred revenues. The company has plans for additional downloadable content (DLC) and expansions across various platforms, including a significant upgrade for ARK Mobile. Furthermore, Snail, Inc. is investing in its micro-influencer platform, NOIZ, to broaden its marketing reach and enhance user engagement.
The company has also made notable changes in its financial structure, including a $6.0 million revolving loan due in December 2024 and a $1.5 million note payable, which was repaid in early 2024. Snail, Inc. has entered into an equity line purchase agreement allowing it to sell up to $5 million in Class A common stock, providing additional liquidity. However, the company faces challenges in meeting its debt covenants and is actively working with lenders to address these issues. Looking ahead, Snail, Inc. aims to leverage its established franchises and expand its market presence while navigating the complexities of the gaming industry and its financial obligations.
About Snail, Inc.
Snail, Inc. is a global independent developer and publisher of interactive digital entertainment, specializing in sandbox survival games. Its flagship franchise, ARK, has over 90 million installs and continues to drive revenue through DLCs and new titles. With a focus on innovation and technology, Snail is expanding its offerings across platforms and enhancing player engagement through its micro-influencer platform, NOIZ. The company aims to capitalize on the growing gaming market and enhance its IP portfolio.
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