Snail, Inc.

Thank you for standing by, and welcome to Nail, Inc.' 's second quarter 2024 earnings conference call and webcast. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on your telephone keypad. To withdraw your question, please press star, then two. Please note, this event is being recorded. I would now like to turn the call over to Brett Milot, Senior Vice President at ICR. Please go ahead.

Thank you. Good afternoon, and welcome to SNAIL's second quarter 2024 earnings conference call and webcast. On today's call are Tony Tan, SNAIL's Co-Chief Executive Officer, Peter Tang, Chief Operating Officer, and Haoyi Chao, Chief Financial Officer. The company's second quarter 2024 earnings press release was filed today with the SEC after the U.S. stock market's closed, and it's available on the investor relations section of Snail's website. 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 certain risks and uncertainties. Please refer to the company's most recent Form 10-Q that was filed today with the SEC. the most recent Form 10-K that was filed with the SEC on April 1, 2024, and other SEC filings. The company makes these forward-looking statements as of today and disclaims any duty or obligation to update them or to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions, or circumstances on which any statement is based. Additionally, 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 a historical reconciliation of bookings and EBITDA to the corresponding gap measures in the earnings press release and the company's SEC filings. And now, I will send the call over to Heidi. Heidi?

Good afternoon, everyone, and thank you for joining us today. I'm very excited to share with you our strong results this quarter. As we mentioned on our last quarter's conference call, we now have both an incredibly passionate and skilled team. equipped with state-of-the-art technology and premier franchises such as Art, which have nurtured, engaged, and committed gaming communities. We plan to continue to expand the horizon of what is achievable in the realm of interactive entertainment, delighting our players across the globe. As we look to the future, I'm particularly excited about our plans to further leverage artificial intelligence across our development pipeline. The advanced AI technology in which we have been investing holds immersed potential to enhance our creativity and productivity, all while maintaining the premium quality that our players have come to expect. Our objective is to empower our talented human teams by providing them with these powerful AI tools rather than attempting to replace them. Additionally, we're eager to capitalize on the widespread attention that our ARC animated series is receiving due to the upcoming second half of the series' first season. With the gaming world's eye focus on the Be Love franchise, we have a prime opportunity to engage new players and further energize our existing community of dedicated art fans. We have developed ambitious plans to expand the art universe in ways that will delight both our longstanding players and newcomers alike. With that, let's quickly review the quarters in numbers. Our R franchise continues to be an incredible success story. Through June 30th, 2024, R has been played for 3.7 billion hours with an average playing time per user of 161 hours. Additionally, as we highlighted last quarter, The top 21% of all players have spent over 100 hours immersed in the game, according to data from SEEN. For the second quarter of 2024, NAIL generated net revenue of $21.6 million, up significantly from $9.9 million in the second quarter of 2023. Net income in the second quarter of 2024 was $2.3 million versus at a net loss of $4.1 million in the second quarter of 2023. Primarily driven by the successful launch of new survival game, Bellwright, new DLC for ARK Survival Ascended. The Power Ranger Premium Mod and revenue recognition for the release of the Scorched Earth DLC on ARK Survival Ascended. I will now hand the call over to Peter Kim, our Chief Operating Officer, to review our product roadmap and share some key developments.