Snail, Inc.

Welcome to Snail Inc.' 's first quarter 2025 earnings conference call and webcast. Joining us for today's call are Snail Inc.' 's co-CEO, Tony Tian, Senior Vice President, Director of Business Development and Operations, Peter Kang, and Chief Financial Officer, Heidi Chow. The company's first quarter 2025 earnings press release was filed earlier today and is available on the investor relations section of Snail Inc.' 's website at www.snail.com. or the SEC's website at www.sec.gov. During this call, management may make forward-looking statements regarding future events and the future financial performance of the company. Actual events or results may differ materially from our expectations, and forward-looking statements are subject to certain risks and uncertainties. Please refer to the company's form 10-Q that has been filed with SEC. the most recent Form 10-K, those filed with SEC on March 26, 2025, and other SEC filings. The company may make 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 refer to bookings and EBITDA, which are non-GAAP financial measures and provide useful information for the company's investors. We will find the 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 Kian, Co-Chief Executive Officer of Snail. Sir, please proceed.

Thank you and good afternoon, everyone. Thank you for joining us today to review our financial and operating results for the first quarter ended March 31st, 2025. The first quarter saw a strong growth across our top line, delivering revenues of 20.1 million, but 42.5% increase compared to Q1 2024. Our bookings also grew 13.6% to $22.2 million compared to the same period last year. And our total units increased 45% to $1.5 million, primarily driven through our flagship ARC franchise. Following the successful launch of the Extinction DLC and Part 3 of Bob's Tall Tales DLC last quarter, we were excited to introduce the Astros map for Ark Survival Ascendant. This new content brings a unique twist, dipped in Greek mythology, offering players a fresh and immersed experience. Player engagement across the Ark franchise continues to remain strong. As of March 31st, 2025, Arc has been played for 4.0 billion cumulative hours, with the average playing time per user reaching 162 hours. In late December of last year, we marked a significant milestone in expanding the Arc universe with the launch of Arc Ultimate Mobile Edition. The response has been exceptional. Since launch, the mobile title has surpassed 4.8 million downloads across iOS and Android platforms as of March 31st, 2025. In the three months ended March 31st, 2025, Arc Ultimate Mobile Edition had an average DAU of approximately 144,000. We recently expanded the mobile experience Further, with the release of two fine favorite maps, Ragnarok and Extinction, and we remain committed to delivering fresh content to this rapidly growing segment, mobile continues to be a key growth area for the ARK franchise, effectively lowering the hardware barrier to entry and expanding our reach to a broader audience. global audience. We also attended the 2025 Game Developer Conference, or GDC, this past March. Peter will dive deeper into what was reviewed during the event, but I'm excited to announce new upcoming content and DLCs for the ARK franchise, activities, and content celebrating ARK's 10-year anniversary. The review of two new internally developed projects, and showcasing several new titles that will expand our growing portfolio of games. Beyond traditional gaming, we also announced an encouraging announcement with our subsidiary, Interactive Films. The division has nailed that, focused on creating content in the vertical short film segment of the digital entertainment markets. And the Interactive Films Division is our very own short film mobile distribution platform, Salty TV, which holds 49 short film dramas as of this quarter end. Just last month, we signed an MOU with Magmatrix Inc., a publicly traded entity under the NYSE America, which operates a similar platform to ours called Flex TV. for short video streaming platform that produces and hosts short dramas. And at this MOU, both parties have committed to co-developing at least 10 short dramas. Both parties will leverage their respective strengths to establish a comprehensive collaboration framework for the joint development, production, and global distribution of short dramas. through our respective platforms to reach audiences across North America, Southeast Asia, and other global regions. This includes a collaborative effort on the creative direction and the script development of the short dramas, jointly overseeing production progress and budgeting, and providing an avenue for both organizations to broaden reach by tapping into each other's audience. This partnership is strategic and ideal for both parties as we both continue to expand our content portfolio and grow our presence in the global short drama industry. By combining MicroMagic's established production and distribution capabilities with our expertise in AI and immersed storytelling, we remain committed to Accelerating this portion of business and expanding our portfolio of short dramas on the Salty TV platform. Nail remains committed to delivering fresh content and experiences that engage our audience and players across multiple platforms and genres. With that, I will now hand it over to Peter who will provide updates to the ARC franchise Speak to the upcoming 10-year anniversary of Ark Survival Evolved, expanding game portfolio and additional new information that was reviewed at GDC. Peter?

Thanks, Tony, and good afternoon, everyone. As many of you know, June 2025 will mark the 10-year anniversary of our flagship title, Ark Survival Evolved. What began as an ambitious sandbox survival game with dinosaurs, robust taming mechanics, and deep crafting systems has evolved into a global franchise with a passionate player base and a thriving creative content ecosystem. Looking back, Ark Survival Evolved was more than just a game launch. It was a bold step into an up-and-coming genre that demanded innovation, risk-taking, and a close relationship with our community. From the early days of Early Access to the full release and the many expansions that followed, ARK has continuously pushed boundaries and adapted to new platforms, new technologies, and new player expectations. In the past 10 years, we've expanded the ARK universe across PC, console, and mobile, brought cinematic storytelling and voice talent to the forefront, and connected millions of players worldwide. At the heels of the 10-year anniversary, we unveiled several exciting updates for the Ark franchise at this year's Game Developers Conference. The first was the reveal of a teaser trailer for Ark Aquatica, giving attendees an early look at the upcoming expansion map. The new map introduces a significant change in gameplay, with roughly 95% of the environment taking place underwater. The expansion reflects our continued efforts to diversify gameplay and evolve the Ark experience as the franchise approaches its 10-year milestone. The new DLC map is expected to launch in the coming months. We also unveiled the official trailer for Ark Lost Colony, the next major DLC for Ark Survival Ascended. This new expansion is being produced by Studio Wildcard. Expected to launch at the end of the year, we're proud to collaborate with such a respected and talented studio and are committed to delivering high-quality content for players of ASA. As Tony mentioned earlier, we recently launched two new maps for ARK Ultimate Mobile Edition, expanding the game's content and enhancing the mobile experience for our players. Looking ahead, we plan to release additional expansion maps. including Genesis Part 1 and Part 2 later this year as part of our ongoing efforts to support and grow the mobile platform. The mobile launch last year marked a transformational milestone for the ARK franchise, enabling us to reach a broader audience that was previously limited by hardware requirements. Mobile has become a vital sector in the gaming industry, and ARK Ultimate Mobile Edition now allows us to engage a completely new segment of players and continue to drive franchise growth across multiple platforms. Beyond these major content updates, we're also preparing a series of additional releases and announcements as part of our broader plans to commemorate the franchise's 10-year anniversary. Onto Bellrite, last month, We celebrated the one-year early access anniversary of the game. The feedback from launch has been exceptional. As of Q1's end, we sold over 417,000 units, and the Steam wishlist count remains over 1 million. To celebrate this milestone, we introduced a major update into the game with new content and player-requested features that reflect our commitment to the long-term support for the game. We're especially excited to bring Bellwright to the Xbox platform in Q4 of 2025, opening the experience to an even broader audience and continuing our efforts to make the game accessible across multiple channels. The upcoming console launch represents a significant achievement in our roadmap and reflects our ongoing commitment to cross-platform expansion and reaching a wider player base. Outside of Ark and Bellwright, we made several other announcements to upcoming games. We debuted teaser trailers for Nanyin Sutra, Wushu, and Nanyin Sutra, Immortal, which are two in-house developed projects. We also showcased new trailers for upcoming games such as For the Stars, Honeycomb, The World Beyond, Robots at Midnight, and Echoes of Elysium. Our indie publishing label, Wandering Wizard, launched two new titles this quarter and recently acquired the publishing rights to Whispers of Westgrove, an upcoming psychological horror game developed by NVNT Studios, and Rebel Engine, a hack-and-slash with the speed and gunplay of a 90s first-person shooter developed by Seven Leaf Clover out of Buenos Aires, Argentina. The continued growth of Wandering Wizard reflects our larger goal of diversifying our creative output, expanding into new genres, and partnering with a wider range of independent developers strengthens our position in the indie publishing space and supports our long-term vision of building a more diversified and resilient entertainment portfolio. With a strong lineup of upcoming titles and new content for the ARC franchise, Along with additional content tied to the 10-year anniversary, we remain committed to delivering fresh, engaging experiences for our players and, in turn, driving returns for our shareholders. With that, I will now turn the call over to Heidi to discuss our financial results. Heidi?