Snail, Inc.

Thank you for standing by, and welcome to Snail Inc.' 's fourth quarter and full year 2022 earnings conference call and webcast. I would now like to turn the call over to Jake Pisano, Vice President at ICR.

Thank you, and good afternoon, and welcome to Snail Inc.' 's fourth quarter and full year 2022 earnings conference call and webcast. On today's call are Jim Tsai, Snail's Chief Executive Officer, and Heidi Chow, Snail's Chief Financial Officer. By now, everyone should have access to the company's fourth quarter and full year 2022 earnings press release filed today after market close. This is also available on the investor relations section of Snail Inc.' 's website at www.snail.com. During this call, management may make forward-looking statements within the meaning of the federal securities laws. These forward-looking statements are subject to the risks and uncertainties as described in the company's press release and other filings with the SEC. On today's call, we will refer to bookings and EBITDA, which are non-GAAP financial measures that provide useful information for our investors. You will find a historical reconciliation of bookings and EBITDA to the corresponding GAAP measures in the earnings press release and the company's SEC filings. And now, I would like to turn the call over to Jim.

Thank you. And hello, everyone. It's a pleasure to speak with you on our 2022 fourth quarter and four-year earnings call. For those of you not familiar with now, we are a leading global independent developer and publisher of interactive digital entertainment for consumers. We have built a premium portfolio of premium video games designed for use on a variety of platforms including console, PC, and mobile devices. We have had many great accomplishments in 2022 that I would like to briefly highlight. First, in November, we officially began trading on NASDAQ. This marked a tremendous milestone for our company, and we are excited to leverage the resource from NASDAQ as we continue our journey into 2023. We are thrilled to announce that Ox Survival Evolved has achieved incredible success on the Nintendo Switch platform over the past five years. We owe it to all to our passionate community of players who have demonstrated unbelievable loyalty to our game and brand. Your support has helped us reach new heights, and we are excited to share some of our recent accomplishments with you. Since its launch on the Nintendo Switch in 2018, our survival evolved has continued to sell strong year after year. In 2018, we sold 150,406 units of the game on the platform, which was just the beginning of our journey. In 2019, we sold 57,404 units And despite the challenge faced in 2020, we managed to sell 92,169 units of the game on the Nintendo Switch platform. As the gaming industry continued to evolve, we kept pushing ourselves to deliver the best possible experience for our players. In 2021, we saw a whopping 135,150 units of Survival Evolved, which was a testament to our commitment to creating an immersive and engaging survival game. And even in 2022, we continue to achieve success with a total of 159,065 units of Survival Evolved, sold on the Nintendo Switch. I am pleased to announce that our retail package sale of Ox Survival Evolved games has remained sustainable and continues to thrive despite the game's age of over seven years. It is a testament to the game's popularity and our team's dedication to ensuring that the game remains relevant to its players. It is not easy for a game product that has been in the market for over seven years to occupy the retail shop shelf space and continue to sell at a steady pace. As we move forward, we are committed to ensuring the game remains relevant and exciting for our players. We will continue to invest in its development and introduce new features to keep the game fresh and engaging. In November 2022, we relaunched the Nintendo Switch version of the Ark Survival Evolved with a continuous success. Ark has been on Nintendo's digital bestsellers list, and it was ranked number nine bestselling game in Japan in the fourth week of February. In February, we launched the new Arc Render Rock map, which continues to grow players' engagement on the Switch platform. And the new expansion map is expected to release for Nintendo Switch in April. Beyond that, we have a total of eight more maps that we expect to release for the platform over this year of 2023. including a survival of the city battle royale mode. And we expect the game's player base on Switch will continue to grow with each of them. Later this year, we expect to relaunch a new mobile version of Survival Evolved for iOS and Android. This new version will feature all of the monetized content and maps, gameplay mechanics, and overhaul performance, and visual, which exists on the PC and console version of ARC. We saw strong user engagement during the year with ARC in playing more than 425 million hours. We saw 5.5 million units during the year compared to 6.6 million units in the prior year. This is directly related to the seasonality of our business since we did not release any new title or a DLC during 2022. With that being said, I'd like to touch on our initiatives for 2023. We are excited to announce our upcoming plan for ARCH, the beloved open-world survival game that has captivated millions of players worldwide. we have three major updates to share with you today. Firstly, we are thrilled to announce that a new title built exclusively for the Xbox Series S and S. and PlayStation 5 consoles in its development and expect it to be available later this year. This new art game will be powered by Unreal Engine version 5, which will take art's immersive and realistic gameplay to the next level. We can't wait to share more detail about this exciting new addition to the art franchise in the coming months. Secondly, We are excited to reveal that a new art expansion pack is also expected to come this year, available on all platforms. We are also striving to push the boundary of what's possible with art. The expansion will introduce new creatures, biomes, gameplay mechanics to challenge even the most seasoned survivors. We can't wait to see how the art community will adapt and thrive in this new environment. Finally, we have heard your feedback and are pleased to announce that we expect to reveal an updated art content roadmap in the next few months. This roadmap will detail our plans for the game over the next year, including new content release, balance changes, and quality of life improvements, we want to ensure that the art experience continues to evolve and improve, and we can't wait to share our plans with you. Later this year, we expect to release our flagship title of two. This completely revamped game developed on Unreal Engine 5 will offer players an immersive gaming experience with improved graphics and new features. including advanced technologies in enhanced animation and dynamic environments that would evolve based on players' actions. We can't wait for players to experience all that ARK 2 has to offer. With that, I would like to share the latest progress on ARK 2, a breakthrough in integrating core game mechanics into Unreal Engine 5. With this next-generation technology, we can take the immersive and realistic gameplay of R2 to new heights. We believe this will be a game changer for the franchise, and we cannot wait to share more detail with you in the coming months. We have reached significant milestones in our game vertical slide testing. Our game has worked tirelessly to ensure that every aspect of OP2 meets and exceeds our community's high expectations. We are excited to see how our players will respond to the new features and mechanics that we have tested. We have successfully built out a massive content production process for OP2, from new creatures and biomes and gameplay mechanics and storyline. We are committed to delivering the most immersive and engaging of experience yet. Our team has been working very hard to bring this version to light, and we can't wait to share more detail about the content we have installed for you. We are grateful for the continuous support of our dedicated community, and we want to assure you that we are working hard to make Arc 2 the best it can be. We are excited about the depth of games and design our current product roadmap entails. We plan to continuously evaluate and invest our content strategy to improve further and innovate our games. We seek opportunity to expand our gaming pipeline and develop media, and esports content related to our game. For example, we continue building out the West Hunt title published by Wandering Wizard. The social deduction game has performed exceptionally and yielded a higher return than the initial investment. We recently launched West Hunt One Data on March 23rd, and the Nintendo Switch port It's expected to be released shortly. Wondering Wizard promoted this title at PAX E's export a few days ago. In summary, we are excited to build on our existing platform mode games and titles. This includes acquiring new IP and providing multi-platform entertainment franchises to create new entertainment mediums for our consumers. By lifting on NASDAQ, we now have the resource to focus on the execution and design of our next-generation games and entertainment experiences. We are currently focused on the development of Orc 2, which will provide our customers with an even better gaming experience and take advantage of recent innovations in game development. I will now hand it over to Heidi to reveal our financial highlights from the quarter.