Snail, Inc. Class A ((SNAL)) has held its Q3 earnings call. Read on for the main highlights of the call.
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During the recent earnings call of Snail, Inc. Class A, the sentiment was mixed, reflecting both optimism and concern. The company is making strides with its stablecoin project and experiencing robust engagement in its gaming portfolio. However, these positive developments are overshadowed by a decline in net revenue and significant losses. The anticipation of upcoming releases offers a glimmer of hope for potential positive outcomes in the near future.
Stablecoin Project Progress
Snail, Inc. is making notable advancements in its proprietary stablecoin project, positioning itself as a pioneering gaming company in this space. This initiative holds significant untapped potential within the gaming industry, suggesting a promising avenue for future growth.
Increase in Bookings
The company reported a 9.3% increase in bookings for the third quarter, reaching $17.6 million compared to the same period last year. This growth was fueled by successful sales promotions and the release of new content, indicating a positive reception from the market.
Strong Engagement and Growth in ARC Titles
Snail, Inc. experienced a 38.7% increase in total units sold over a nine-month period, with its ARC mobile title surpassing 9 million downloads. The average daily active users (DAU) for various ARC titles remained stable, demonstrating strong user engagement and growth.
Upcoming Content Releases
The company is set to launch the ARC Lost Colony DLC and Echoes of Elysium in December 2025. These releases are expected to drive strong fourth-quarter results, with presales already exceeding expectations, signaling strong market anticipation.
Decrease in Net Revenue
Net revenue for the third quarter fell to $13.8 million from $22.5 million the previous year, primarily due to an increase in deferred revenue. This decline highlights the financial challenges the company is currently facing.
Net Loss for the Quarter
Snail, Inc. reported a net loss of $7.9 million for the quarter, a stark contrast to the net income of $233,000 in the same period last year. This loss was driven by increased expenses and decreased net revenue, underscoring the financial hurdles ahead.
EBITDA Loss
The company recorded an EBITDA loss of $9.7 million for the third quarter, compared to a $500,000 profit in the previous year. This was mainly due to the increased net loss and decreased revenue, reflecting the company’s current financial struggles.
Forward-Looking Guidance
Despite the decline in net revenue, Snail, Inc. remains optimistic about the future. The company expects to recognize $26.5 million in deferred revenue over the next twelve months, including $5.8 million from the ARC Lost Colony presale. Engagement metrics are positive, with a 7.8% increase in units sold year-over-year. The company anticipates a stronger fourth quarter, driven by the upcoming launch of ARC Lost Colony and other new titles.
In summary, Snail, Inc.’s earnings call presented a mixed sentiment, with significant progress in its stablecoin project and strong engagement in its gaming portfolio. However, the decrease in net revenue and substantial losses pose challenges. The company’s forward-looking guidance suggests potential recovery, with expectations of stronger performance in the upcoming quarters.