Snail, Inc.

Thank you for standing by, and welcome to Snell Incorporated's fourth quarter and full year 2023 earnings conference call and webcast. I would now like to turn the call over to Jake Bassano, Vice President at ICR. Please go ahead.

Thank you. Good afternoon, and welcome to Snell Inc.' 's fourth quarter and full year 2023 earnings conference call and webcast. On today's call are Jim Tsai, Snell's Chief Executive Officer, and Heidi Chow, Snell's Chief Financial Officer. By now, everyone should have access to the company's fourth quarter and full year 2023 earnings press release filed today after market close. This earnings press release is available on the investor relations section of Snail Inc.' 's website at www.snail.com. During this call, management may make forward-looking statements regarding future events and the future financial performance of the company. Actual events and results may differ materially from our expectations, and forward-looking statements are subject to the risks and uncertainties. Please refer to the company's most recent 10Q, 10K, and other SEC filings. The company makes these forward-looking statements as of today and disclaims any duty to update them. On today's call, we will refer to bookings and EBITDA, which are non-GAAP financial measures that provide useful information for the company's investors. you will find the historical reconciliation of bookings and EBITDA to the corresponding GAAP measures and the earnings press release in the company's SEC filing. And now I will turn the call over to Jen. Thank you, Jake, and hello, everyone.

It's a pleasure to speak with you about our fourth quarter and full year results. We had a great year and accomplished many things, including releasing Ops Survival Ascended, releasing an improved product roadmap, announcing exciting initiatives like intelligence to bolster our product offerings. In October, we released the highly anticipated Ox Survival Ascended game. Since then, we have sold more than 1.5 million copies and locked more than 97.5 million gameplay hours. Our community is still captivated by the ARK experience, and we continue to improve the game with exciting DLC updates. Since its launch, Survival Ascended has had an average DAU, or Daily Active Users, of 182,000, which is a healthy increase of four times the average DAU observed during the same period of the original ARK, Survival Evolved, launch. The increased DAU reflects our commitment to creating an enjoyable experience on our strategy to build communities, attract and retain new and existing players, and continue growing our ARK player base. We also plan new DLCs for the ARK franchise, which are coming to ARK Survival Ascension. in late March. Our animation will be released by a well-known streaming platform, Paranoid Plus, initially in the North American region and globally two weeks later. The notoriety of the IP will reach a new generation of players, and we are planning marketing campaigns to capitalize on this newfound reach. The fact that sandbox survival games are top-rated currently, with a plethora of new co-op games We still stand alone at the top on the multiplayer level, along with our technological advancements in our premium mod program that provides endless content based on user-generated content. As the user base of Sandbox Survival Games continues to grow, AWK will continue to be the standard by which other games are measured. All the while, we continue to innovate on gameplay and technology, keeping us on the frontier. with an improved product roadmap. capabilities. The results of this are that our development projects can dramatically reduce the time between ideation and implementation. As we look forward into the near future, we are now sampling emerging AI technology in the next step of the development pipeline, where 2D art is produced into 3D assets. In this step, we have already identified several technologies that have shown great promise, and we are confident that within the year, they will be ready for direct use in our production pipeline for prototype research on Meshi and Lumen AI, both progressing in AI media and pass it directly into the development process to be evaluated and implemented into the game project. These AI agents can work together as a team to generate a game project. The two main tools we are researching in this sector are ChatDev and Society of Brain by Google Brain. The industry is trying to hang onto the hand-crafted model and compare games made by AI tools to those made by factories. At Snail, we want to use AI while making high-quality games, reducing costs, and passing the savings onto our consumers. We look forward to the developments we make during the year and will continue sharing more information on our upcoming quarterly earnings calls. I will now hand it over to Heidi to review our financial highlights from the quarter.