CULVER CITY, Calif., May 15, 2024 (GLOBE NEWSWIRE) -- Snail, Inc. (NASDAQ:SNAL) ("Snail" or "the Company"), a leading, global independent developer and publisher of interactive digital entertainment, today announced financial results for its first quarter ended March 31, 2024. Tony Tian, Co-Chief Executive Officer commented, "I'm absolutely thrilled and humbled to take the helm as Co-CEO of Snail. This Company has an exceptionally talented team, ground-breaking technologies, and iconic franchises, like ARK, that have fostered passionate gamer communities worldwide. As someone who has been an avid ARK player, I have a deep, personal appreciation for the creativity and innovation of our Snail team. I am excited for Snail's bright future and the opportunity to work with this passionate, talented and dedicated team." First Quarter 2024 Highlights: ARK: Survival Ascended. On October 25, 2023, the Company launched its flagship remake of the ARK franchise leveraging Unreal Engine 5's stunning graphics and introduced a game-altering cross-platform modding system, ushering in a new era of creativity. Since its launch, ARK: Survival Ascended sold approximately 2.0 million units and has an average of 121,000 daily active users ("DAUs") with a peak of 308,000 DAUs. In the first quarter of 2024, the Company successfully launched premium mods on PC and will look to expand premium mods' availability to additional platforms in the coming months. ARK: Survival Evolved. In the three months ended March 31, 2024, ARK: Survival Evolved averaged a total of approximately 133,000 DAUs. ARK: Survival Evolved sold approximately 0.6 million units in the first quarter of 2024. Net revenues for the three months ended March 31, 2024 was $14.1 million compared to $13.5 million in the three months ended March 31, 2023. The increase in net revenues was due to an increase in total ARK sales of $5.1 million, an increase in revenue generated from a settlement that was previously deferred of $1.2 million, an increase in sales of the Company's other games of $0.7 million, partially offset by a decrease in Ark Mobile sales of $0.6 million and an increase in deferred revenues of $5.5 million related to the ARK franchise. Net loss for the three months ended March 31, 2024 was $1.8 million compared to a net loss of $3.0 million for the three months ended March 31, 2023. The decrease in net loss is due to an increase in net revenues of $0.6 million, decreased general and administrative expenses of $2.2 million, and an increase in other income of $0.2 million, partially offset by increased research and development expenses of $0.4 million, increased costs of revenues of $1.2 million and a decrease in benefit from income taxes of $0.3 million. Bookings for the three months ended March 31, 2024 was $19.6 million as compared to $13.3 million for the three months ended March 31, 2023, the increase was primarily due to the release of ARK: Survival Ascended in the fourth quarter of 2023. In addition to increased sales of ARK: Survival Ascended, the Company deferred approximately $5.5 million in revenues during the three months ended March 31, 2024 for the ARK: Survival Ascended DLC's, which have not yet been released. Earnings before interest, taxes, depreciation and amortization ("EBITDA") for the three months ended March 31, 2024 was a loss of $1.9 million compared to a loss of $3.4 million in the prior year period. The increase was due to the decrease in net loss of $1.2 million and a decrease in benefit from income taxes of $0.3 million. As of March 31, 2024, unrestricted cash was $16.1 million. Use of Non-GAAP Financial Measures In addition to the financial results determined in accordance with U.S. generally accepted accounting principles, or GAAP, Snail believes Bookings and EBITDA, as non-GAAP measures, are useful in evaluating its operating performance. Bookings and EBITDA are non-GAAP financial measures that are presented as supplemental disclosures and should not be construed as alternatives to net income (loss) or revenue as indicators of operating performance, nor as alternatives to cash flow provided by operating activities as measures of liquidity, both as determined in accordance with GAAP. Snail supplementally presents Bookings and EBITDA because they are key operating measures used by management to assess financial performance. Bookings adjusts for the impact of deferrals and, Snail believes, provides a useful indicator of sales in a given period. EBITDA adjusts for items that Snail believes do not reflect the ongoing operating performance of its business, such as certain non-cash items, unusual or infrequent items or items that change from period to period without any material relevance to its operating performance. Management believes Bookings and EBITDA are useful to investors and analysts in highlighting trends in Snail's operating performance, while other measures can differ significantly depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which Snail operates and capital investments. Bookings is defined as the net amount of products and services sold digitally or physically in the period. Bookings is equal to revenues, excluding the impact from deferrals. Below is a reconciliation of total net revenue to Bookings, the closest GAAP financial measure.   Three Months ended March 31,     2024       2023     (in millions) Total net revenue $ 14.1     $ 13.5   Change in deferred net revenue   5.5       (0.2 ) Bookings $ 19.6     $ 13.3   We define EBITDA as net income (loss) before (i) interest expense, (ii) interest income, (iii) income tax provision (benefit from) and (iv) depreciation and amortization expense. The following table provides a reconciliation from net loss to EBITDA:   Three Months ended March 31,     2024       2023     (in millions) Net loss $ (1.8 )   $ (3.0 ) Interest income and interest income – related parties   (0.1 )     -   Interest expense and interest expense – related parties   0.4       0.3   Benefit from income taxes   (0.5 )     (0.8 ) Depreciation and amortization expense, property and equipment   0.1       0.1   EBITDA $ (1.9 )   $ (3.4 ) Webcast Details The Company will host a webcast at 4:30 PM ET today to discuss the first quarter 2024 financial results. Participants may access the live webcast and replay on the Company's investor relations website at https://investor.snail.com/. Forward-Looking Statements This press release contains statements that constitute forward-looking statements. Many of the forward-looking statements contained in this press release can be identified by the use of forward-looking words such as "anticipate," "believe," "could," "expect," "should," "plan," "intend," "may," "predict," "continue," "estimate" and "potential," or the negative of these terms or other similar expressions. Forward-looking statements appear in a number of places in this press release and include, but are not limited to, statements regarding Snail's intent, belief or current expectations. These forward-looking statements include information about possible or assumed future results of Snail's business, financial condition, results of operations, liquidity, plans and objectives. The statements Snail makes regarding the following matters are forward-looking by their nature: growth prospects and strategies; launching new games and additional functionality to games that are commercially successful; expectations regarding significant drivers of future growth; its ability to retain and increase its player base and develop new video games and enhance existing games; competition from companies in a number of industries, including other casual game developers and publishers and both large and small, public and private Internet companies; its ability to attract and retain a qualified management team and other team members while controlling its labor costs; its relationships with third-party platforms such as Xbox Live and Game Pass, PlayStation Network, Steam, Epic Games Store, My Nintendo Store, the Apple App Store, the Google Play Store and the Amazon Appstore; the size of addressable markets, market share and market trends; its ability to successfully enter new markets and manage international expansion; protecting and developing its brand and intellectual property portfolio; costs associated with defending intellectual property infringement and other claims; future business development, results of operations and financial condition; the ongoing conflicts involving Russia and Ukraine, and Israel and Hamas, on its business and the global economy generally; rulings by courts or other governmental authorities; the Company's current program to repurchase shares of its Class A common stock, including expectations regarding the timing and manner of repurchases made under this share repurchase program; its plans to pursue and successfully integrate strategic acquisitions; and assumptions underlying any of the foregoing. Further information on risks, uncertainties and other factors that could affect Snail's financial results are included in its filings with the Securities and Exchange Commission (the "SEC") from time to time, including its annual reports on Form 10-K and quarterly reports on Form 10-Q filed, or to be filed, with the SEC. You should not rely on these forward-looking statements, as actual outcomes and results may differ materially from those expressed or implied in the forward-looking statements as a result of such risks and uncertainties. All forward-looking statements in this press release are based on management's beliefs and assumptions and on information currently available to Snail, and Snail does not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made. About Snail, Inc. Snail is a leading, global independent developer and publisher of interactive digital entertainment for consumers around the world, with a premier portfolio of premium games designed for use on a variety of platforms, including consoles, PCs and mobile devices. For additional information, please contact:         Snail, Inc. and SubsidiariesCondensed Consolidated Balance Sheets (Unaudited)           March 31, 2024   December 31, 2023         ASSETS               Current Assets:       Cash and cash equivalents $ 16,068,729     $ 15,198,123   Accounts receivable, net of allowances for credit losses of $523,500 as of March 31, 2024 and December 31, 2023   7,375,179       25,134,808   Accounts receivable - related party   2,585,213       -   Loan and interest receivable - related party   104,252       103,753   Prepaid expenses - related party   4,337,556       6,044,404   Prepaid expenses and other current assets   2,419,201       639,693   Prepaid taxes   9,459,348       9,529,755   Total current assets   42,349,478       56,650,536           Restricted cash and cash equivalents   1,117,310       1,116,196   Accounts receivable - related party, net of current portion   6,000,592       7,500,592   Prepaid expenses - related party   10,842,748       7,784,062   Property, plant and equipment, net   4,599,728       4,682,066   Intangible assets, net - other   271,517       271,717   Deferred income taxes   10,803,281       10,247,500   Other noncurrent assets   169,047       164,170   Operating lease right-of-use assets, net   2,138,285       2,440,690   Total assets $ 78,291,986     $ 90,857,529           LIABILITIES, NONCONTROLLING INTERESTS AND STOCKHOLDERS' EQUITY               Current Liabilities:       Accounts payable $ 9,901,360     $ 12,102,929   Accounts payable - related parties