Snail, Inc.

Thank you for standing by and welcome to SNAIL Inc. Third Quarter 2024 Earnings Conference Call and Webcast. 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 Inc.' 's Third Quarter 2024 Earnings Conference Call and Webcast. On today's call, we have Tony Tan, Co-CEO, Heidi Chao, Chief Financial Officer, and Peter Kang, Senior Vice President, Director of Business Development and Operations. The company's third quarter 2024 earnings press release was filed today with the SEC after the U.S. stock market closed, and it's available on the Investor Relations section of Snail Inc.' 's website at www.snail.com or the SEC'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. Questions 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 such statement is based. Additionally, on today's call, we will refer to bookings and EBITDA, which are non-GAAP measures that provide useful information to the company's 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 will turn the call over to Tony Tan, Co-Chief Executive Officer of Snail. Tony?

Thank you, Brad. Good afternoon, everyone, and thank you for joining us today. I'm very excited to share with you our results for the quarter, as well as provide you with some updates on our games portfolio and specifically our ARK franchise. Firstly, I would like to give a brief overview of where Snow stands today. With the release of the first half of ARK Animated Series first season and the full-size expansion, ARK Aberrations, we are capitalizing on the increased popularity of the franchise by engaging new players and continuing to excite our existing community. Through innovative art updates and launch within the art franchise, as such, we remain committed to being pioneers in the world of interactive entertainment, including strategic investment in advanced AI technologies that enhance both creativity and productivity. During the third quarter, we released the highly anticipated full-size expansion of DLC, Arc Aberration Ascendant, and part two of Bob's Tortoise DLC for Arc Survival Ascendant. As the new DLC content continues to engage with our player base, we are continually optimizing our DLC pipeline to further enhance the ARK experience our players have come to know. Through September 30, 2024, ARK has been played for 3.8 billion hours with an average playing time per user of 162 hours. Additionally, as we highlighted previously, The top 21.2% of all players have spent over 100 hours immersed in the game, according to data from Steam. We are thrilled with the success of the ARK franchise and to see so many players enjoying our games as indicated by this data. Before I hand the call out to Peter and Heidi to discuss our results in more detail. Let's quickly go over the financials from this quarter. For the third quarter of 2024, SNAIL generated a net revenue of $22.5 million, a notable jump from $9.0 million in the third quarter of 2023. The increase in net revenue was due to the recommendation of $8.2 million in revenue from the release of Aberration and Part 2 of Bob's Tall Tales, an increase in total act sales of $5.9 million, and also an increase in bail rights sales of $1.0 million, partially offset by other items out of line in our financial statements. Net income in the third quarter of 2024 increased significantly to $0.2 million versus net loss of $4.2 million. $4 million in the third quarter of 2023 as a result of the aforementioned increase in net revenue. Thank you all again for joining. With that, I will now hand the call over to Peter Kang, our Senior VP, Director of Business Development and Operations, to review our product roadmap and share some key developments. Peter?