Snail, Inc. reported significant financial improvements for the quarter and nine months ended September 30, 2024, compared to the same periods in 2023. The company achieved net revenues of $22.5 million for Q3 2024, a remarkable increase of 150.9% from $9.0 million in Q3 2023. For the nine months, revenues reached $58.3 million, up 80.2% from $32.3 million in the prior year. This growth was primarily driven by increased sales from the ARK franchise, which contributed 88.7% of total revenue in Q3 2024.
Gross profit for Q3 2024 was $8.7 million, a turnaround from a gross loss of $0.5 million in Q3 2023. The company reported income from operations of $0.4 million for the quarter, compared to a loss of $5.6 million in the same period last year. Net income for Q3 2024 was $0.2 million, a significant recovery from a net loss of $4.4 million in Q3 2023. For the nine months, net income was $0.7 million, compared to a net loss of $11.5 million in the same period of 2023.
The company’s total current assets decreased to $36.5 million as of September 30, 2024, from $56.7 million at the end of 2023, while total liabilities also fell to $64.1 million from $88.1 million. The accumulated deficit improved to $(13.2 million) from $(13.9 million) at the end of 2023. Cash and cash equivalents were reported at $10.6 million, down from $15.2 million at the end of 2023.
Strategically, Snail, Inc. has focused on expanding its gaming pipeline and enhancing user engagement through investments in new game development and marketing strategies. The company has also entered into significant agreements, including a cooperation agreement with its IDC vendor for server hosting and a distribution agreement for the ARK franchise. Additionally, the company has been actively managing its debt, repaying convertible notes and maintaining compliance with debt covenants.
In terms of operational changes, the company appointed Hai Shi and Xuedong (Tony) Tian as Co-Chief Executive Officers following the resignation of Jim S. Tsai in April 2024. The company continues to face challenges, including reliance on third-party distribution platforms for 94% of its revenues and potential risks associated with licensing agreements.
Overall, Snail, Inc. has demonstrated a strong recovery in financial performance, driven by strategic initiatives and a focus on its core gaming franchises.
About Snail, Inc.
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