Executive Summary

Q4 2024 revenue was $26.21M, a slight year-over-year decline but a sequential increase; it beat a thin Wall Street consensus of $25.0M. EPS of $0.03 missed the $0.07 consensus, while non-GAAP EBITDA of $1.6M fell well below the $3.74M consensus. Bolded outcomes below reflect these beat/miss dynamics . Revenue Consensus $25.0M*, EPS Consensus $0.07*, EBITDA Consensus $3.74M*.
Bookings fell sharply year-over-year to $17.0M from $52.6M due to the prior-year ASA launch timing, though sequentially were roughly flat; full-year revenue rose 38.7% to $84.47M with net income of $1.83M vs a loss in 2023, driven by deferred revenue recognition from ARK DLCs .
ARK Ultimate Mobile Edition launched in December with 2M downloads in the launch month and contributed to engagement; Q4 net revenue included ~$8.0M recognition from Extinction and Bob’s Tall Tales DLC releases plus $15.5M in ARK sales and $1.0M from Bellwright .
Management emphasized continued AI investment to enhance creativity/productivity and outlined 2025 content cadence and platform expansion; Bellwright is targeted for Xbox in Q4 2025, pending Game Pass decisions, which could broaden reach .

What Went Well and What Went Wrong

What Went Well
- Q4 revenue beat consensus with ASA DLC releases and steady ARK sales; full-year revenue grew 38.7% and EBITDA swung positive year-over-year, reflecting strong franchise monetization via deferred revenue recognition . Revenue Consensus $25.0M*, Actual $26.21M.
- Mobile expansion: ARK Ultimate Mobile Edition achieved 2M downloads in December and helped drive a 62% DAU surge on Steam during Extinction’s launch weekend, supporting the franchise’s cross-platform reach .
- Strategic focus on AI: “We remain committed to being pioneers…including strategic investments in advanced AI technologies that enhance both creativity and productivity,” signaling internal efficiency and content pipeline support .
What Went Wrong
- EPS and EBITDA misses versus consensus amid higher R&D; Q4 net income fell to $1.12M vs $2.40M in Q4 2023 due to a $3.0M increase in R&D to support future releases, despite lower advertising and marketing expense . EPS Consensus $0.07*, Actual $0.03; EBITDA Consensus $3.74M*, Actual $1.6M.
- Bookings dropped to $17.0M from $52.6M year-over-year given ASA’s launch timing and lower ASPs of later DLCs, highlighting near-term unit/mix pressure despite engagement strength .
- Cash and cash equivalents decreased to $7.30M from $15.20M year-over-year, as financing repayments and working capital movements reduced liquidity, raising sensitivity to execution on upcoming releases .

Financial Results

Metric	Q4 2023	Q3 2024	Q4 2024
Revenue ($USD Millions)	$28.57	$22.53	$26.21
Gross Profit ($USD Millions)	$9.92	$8.71	$11.35
Gross Margin %	34.7%	38.7%	43.3%
Operating Income ($USD Millions)	$3.68	$0.41	$3.02
Net Income ($USD Millions)	$2.40	$0.23	$1.12
Diluted EPS ($USD)	$0.07	$0.01	$0.03
EBITDA ($USD Millions, non-GAAP)	$3.6	$0.5	$1.6
Bookings ($USD Millions)	$52.6	$16.1	$17.0

Revenue composition (company disclosures, partial):

Component (Q4 2024)	Amount ($USD Millions)
ASA DLC recognition (Extinction + Bob’s Tall Tales Part 3)	$8.0
ARK sales	$15.5
Bellwright sales	$1.0

KPIs

KPI	Q4 2023	Q4 2024
ASA cumulative units sold (since launch)	N/A	3.4M
ASA DAUs (avg)	N/A	94,000; Peak 308,000
ARK: Survival Evolved units sold (quarter)	745,000	621,000
ARK: Survival Evolved DAUs (avg)	N/A	136,000

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY/Q1 next	N/A	N/A	No formal guidance provided
Margins	FY/Q1 next	N/A	N/A	No formal guidance provided
OpEx	FY/Q1 next	N/A	N/A	No formal guidance provided
Other (tax rate, OI&E, segment)	FY/Q1 next	N/A	N/A	No formal guidance provided

Note: Management outlined pipeline releases (e.g., nine acquired games expected in 2025) but did not issue numeric financial guidance ranges .

Earnings Call Themes & Trends

Topic	Q2 2024 (prior-2)	Q3 2024 (prior-1)	Q4 2024 (current)	Trend
AI/technology initiatives	Emphasis on leveraging advanced AI to enhance creativity/productivity in dev pipeline	Continued focus on AI to push boundaries of interactive entertainment	Reaffirmed strategic AI investments to enhance creativity/productivity	Consistent emphasis, enabling content velocity and efficiency
ASA DLC cadence and content	Cadence moved to ~3-month DLC schedule; Scorched Earth launched in April	Aberration Ascended full-size expansion + Bob’s Tall Tales Part 2 in Q3	Extinction Ascended and Bob’s Tall Tales Part 3 launched in Q4; Astraeos partner DLC announced for 2025	Stable cadence; expanding partner-driven content
Modding monetization ecosystem	Power Rangers premium mod highlighted, strong community acceptance	—	Cross-platform modding system highlighted in ASA positioning	Positive reception persists; ecosystem differentiator
Platform expansion (Mobile/Xbox)	ARK Mobile update slated; Bellwright content update planned	ARK Ultimate Mobile Edition planned for December launch	ARK Ultimate Mobile released; 2M downloads launch month; Bellwright targeted Xbox Q4 2025 (Game Pass TBD)	Mobile executed; console expansion queued
Revenue recognition/deferred revenue dynamics	CFO detailed deferred revenue mechanics affecting quarterly timing	Deferred revenue recognition for Aberration and Bob’s Tall Tales noted	~$8.0M recognized from Q4 DLCs; ongoing deferrals for not-yet-released content	Structural feature of model; continues to drive quarter-to-quarter swings

Management Commentary

Strategic message: “We remain committed to being pioneers…including strategic investments in advanced AI technologies that enhance both creativity and productivity.” — Co-CEO Tony Tian .
Product roadmap: Detailed 2025 content including Astraeos partner DLC, Aquatica 10-year anniversary DLC, and Lost Colony expansion; Bellwright pipeline with cross-platform plans .
Accounting clarity: CFO reiterated that deferred revenue and DLC/content timing drive quarterly recognition patterns and can cause significant deferrals/recognition across periods .

Q&A Highlights

Bellwright Xbox timing: Management anticipates Xbox availability in Q4 2025; Game Pass candidacy remains under discussion with Microsoft (no confirmation yet) .
Resource allocation: Marketing spend is analytically determined by target market size and expected presence; diversified portfolio approach with 11 publishing deals signed and multiple internal projects .
Prior quarter (context): Questions on margins and Steam sale impact indicated unit lift and gross profit improvement; Animated Series viewership analytics remain with distributor (Paramount+) .

Estimates Context

Q4 2024 Actual vs Wall Street Consensus (S&P Global)

Metric	Consensus	Actual	Outcome
Revenue ($USD Millions)	$25.0*	$26.21	Beat
Primary EPS ($USD)	$0.07*	$0.03	Miss
EBITDA ($USD Millions, non-GAAP)	$3.74*	$1.60	Miss

FY 2024 Actual vs Wall Street Consensus (S&P Global)

Metric	Consensus	Actual	Outcome
Revenue ($USD Millions)	$83.3*	$84.47	Beat
Primary EPS ($USD)	$0.09*	$0.05	Miss
EBITDA ($USD Millions, non-GAAP)	$5.46*	$3.20	Miss

Values marked with * retrieved from S&P Global.

Where estimates may adjust: The EPS/EBITDA shortfall vs consensus and management’s stated R&D ramp ($3.0M higher in Q4) suggest downward revisions to near-term profitability expectations, while modest revenue outperformance and mobile/console expansion may support top-line resilience .

Key Takeaways for Investors

Expect continued quarterly volatility from deferred revenue recognition tied to ASA DLC releases; use Bookings as a complementary indicator of underlying sales momentum .
Near-term margin pressure from elevated R&D investment is intentional to support future titles; this drove the Q4 EPS/EBITDA miss despite revenue beat .
Mobile launch traction (2M downloads) and planned console expansion (Bellwright to Xbox in Q4 2025) broaden addressable market and diversify revenue streams beyond PC/Steam .
The modding ecosystem and partner DLCs (e.g., Astraeos) deepen engagement and create incremental monetization channels across the ARK franchise .
Liquidity tightened (cash $7.30M vs $15.20M YoY); monitor working capital, financing activities, and execution on the 2025 release slate for capital needs .
Full-year revenue growth (+38.7%) and positive EBITDA vs 2023 highlight franchise strength; however, lower ASPs on later DLCs and bookings decline vs Q4 2023 underscore mix/pricing sensitivities .
Trading lens: Near-term updates (DLC drops, partner content, mobile live ops) are catalysts; but EPS/EBITDA consensus likely drifts lower given Q4 miss and continued R&D ramp—position sizing should reflect execution risk and liquidity profile .

Snail, Inc. (SNAL)·Q4 2024 Earnings Summary