Q2 2023 Snail Inc Earnings Call
Speaker 1: Good day and welcome to the SNAIL, Inc. 2023 Earnings Conference Call.
Speaker 1: All participants would be in listen only mode.
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Speaker 1: Please note that this event is being recorded.
Speaker 1: At this time, I'd like to turn the conference over to Jim Tsai, Chief Executive Officer. Please go ahead.
Speaker 2: Thank you for standing by and welcome to snail in as second quarter 2023 earnings conference call and webcast. I now everyone should have access to the company's second quarter 2023 earnings press release file to the after market close. This is available on the investor relations section of snail in as website at W.
Speaker 2: These forward-looking statements are subject to the risks and uncertainties described in the company's press release and other filings with the SEC. On today's call, we will refer to bookings in EBITDA, which are non-COP financial measures that provide helpful information for our investors. You will find a historical reconciliation of bookings in EBITDA to the corresponding COP measures in the earnings press release and the company's SEC filings.
Speaker 2: I am excited to update you on our Survival Ascended title. The DLC has passed all QC tests and is in the final stages of development. As announced to the community last month, the game will be released in October 2023 for Xbox Series X, S, PlayStation 5, and PC. It remains on track for release in October . Aside from exciting features like next
Speaker 2: the center lost island, Dalgero and Crystal Isles. Our survival ascended will also feature full-cost platform modding between the consoles and PC, enabling user generated content to a level of functionality never before seen in console games.
Speaker 2: This will enable users to sell their content at premium prices. Over time, we plan to build this to become a reliable revenue stream for Snail, while giving ARK Survival Ascended the opportunity to develop evergreen content and sales lifecycle. The economics of this are still in flux and will be finalized before launch.
Speaker 2: We are seeing tremendous feedback and excitement from ARK fans ready for a fresh new title and experience. Let's take a moment to talk about ARK Survival Evolved. It continues to generate millions of dollars per month. Nintendo Switch continues to grow in sales as more DLCs are released on that platform. After the launch of ARK Survival Ascended in Q4 2023, Studio Wildcard plans to release the game.
Speaker 2: Finally, R2 continues development alongside OX survival assendants and is planned for a Q4 2020-24 release built upon OX survival assendants application framework. Consumer merchandise and other corporate partnerships is anticipated to grow significantly in later 2023 and through 2024 with the release of the
Speaker 2: incorporate well-known external pre-existing intellectual properties. During the three months ended June 30, 2023, we sold 0.9 million units compared to 1.6 million in the prior year period. Our video games continue to provide highly engaging, differentiated entertainment experiences that offers a combination of challenges
Speaker 2: through June 30th, 2023. Our ARK franchise game has been played for a total of 3.3 billion hours with an average playing time per user of more than 162 hours and with the top 21% of all players spending over 100 hours in the game. According to data related to the Steam platform. Now let's review our financial highlights from the quarter.
Speaker 2: for the three months ended June 30, 2022. The decrease in net revenues was due to a decrease in sales of art, partially attributed to a decrease in the number of days on sale in one of our primary platform partners, and partially due to the upcoming release of art, Survival Assented, sales and in-game purchases decreased by $5.3 million.
Speaker 2: In the company, smaller titles were partially offset by an increase of $0.1 million in revenue related to West Han. NetLoss was $4.1 million for the three months ended June 30, 2023 as compared to a net loss of $1 million for the three months ended June 30, 2022. The decrease was primarily due to a decrease in revenue of 5.0 million.
Speaker 2: dollars and an increase in internet, server and data center costs of 0.3 million dollars. Carcially offset by a decrease in royalties of 1.2 million dollars, a decrease in license cost and license right immodization of 1.6 million dollars, a decrease in merchant and engine fees of 0.5 million dollars, and a decrease in the company's tax provision of 0-
Speaker 2: Bookings adjusts for the impact of the furls and, we believe, provides a useful indicator of sales in a given period for the three months and the June 30th, 2023. Bookings were $9.3 million. Compared to $15.1 million in the same three-month period of the prior year, primarily as a result of a decline in op-related revenues.
Speaker 2: For the three months ended June 30th, 2023. Editor was a loss of $4.8 million versus a loss of $1.1 million in the same three month period of the prior year. This is mainly due to the decrease in revenues. As of June 30th, 2023, our unrestricted cash was $3 million versus $12.9 million as of December 31st, 2022. When we look at the EU relief board just for the feedback of the Scare noted through the
and webcast. Should you have any questions, please submit to investors at snail.com.
The conference has now concluded. Thank you for attending today's presentation. You may now disconnect your lines.
Thank you for watching.