Q4 2024 Snail Inc Earnings Call
Operator: Thank you for standing by and welcome to Snail Inc's fourth quarter and full year 2024 earnings conference call-in.
Thank you for standing by and welcome to smell Inc's fourth quarter and full year 2024 earnings conference call and webcast I would now like to turn the call over to Brett envelope.
Brett Milotte: I would now like to turn the call over to Brett Milotte. Managing Director at ICR. Please go ahead. Thank you.
Managing director at ICR.
Speaker Change: Please go ahead.
Speaker Change: Thank you good afternoon, and welcome to snap Inc's fourth quarter and full year 2024 earnings conference call and webcast on today's call. We have Tony John Co CEO, Peter King Senior Vice President Director of business development operations, and Heidi child, Chief Financial Officer.
Unknown Executive: Good afternoon, and welcome to Snail Inc's fourth quarter and full year 2024 earnings conference call and webcast.
Unknown Executive: On today's call, we have Tony Tan, co-CEO, Peter Kang, Senior Vice President, Director of Business Development Operations, and Heidy Chow, Chief Financial Officer.
Unknown Executive: The company's fourth quarter and full year 2024 earnings press release was filed today with the SEC after the US stock market closed 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 and results may differ materially from our expectations, and forward-looking statements are subject to certain risks and uncertainties.
Speaker Change: The company's fourth quarter and full year 'twenty 'twenty four earnings press release was filed today with the SEC after the U S stock market close and is available on the Investor Relations section of scale Inc's website at Www dot scale dot com or the Sec's website at Www SEC Gov forward Slash Edgar.
Speaker Change: 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-K, two filed with the SEC and other SEC filings. The company makes these forward looking statements as of today and disclaims any duty or.
Unknown Executive: Please refer to the company's Form 10-K to be followed by the SEC and other SEC filings. The company makes these forward-looking statements as of today and disclaims any duty or obligation to update them or to release publicly any updates or additions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions, or circumstances on which any such statement is based.
Speaker Change: Asian to update them, what's 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 in which any such statement is based.
Unknown Executive: Additionally, on today's call, we refer to bookings and EBITDA, which are non-GAAP financial measures that provide useful information for the company's investors. You will find a historical reconciliation of bookings and EBITDA to the corresponding GAAP measures in the earnings press release and the company's SEC filings.
Speaker Change: Additionally, on today's call, we refer to bookings and EBITDA, which are non-GAAP financial measures provide useful information for the company's investors, you'll find a historical reconciliation of bookings and EBITDA to the corresponding GAAP measures in the earnings press release, and the company's SEC filings.
Tony Tan: And now, I will turn the call over to Tony Tam, Co-Chief Executive Officer of Snail. Tony? Good afternoon, everyone, and thank you for joining us today. I'm very excited to share with you our results for the quarter and four year, as well as provide you with some updates with our games portfolio and specifically our Arc franchise. With the release of Extinction DLC and Part 3 of Vox Tortoise DLC for ASA in the fourth quarter, we continue to capitalize on the increasing popularity of the franchise by engaging new players and continuing to excite our existing community through innovative ARK updates and launches within the ARK franchise.
Tony Town: Now I will turn the call over to Tony Town Co Chief Executive officers now Tony.
Tony Town: Good afternoon, everyone and thank you for joining us today I'm.
Tony Town: Right excited to share with you our results for the quarter and full year as well.
Tony Town: Hi, you with some updates with our game portfolio.
Tony Town: Specifically I'll ask franchise.
Tony Town: We released our extinction T S T and top three all boss Tal T O P. M C. A S. A in the fourth quarter.
Tony Town: She needed to capitalize on increasing popularity of the franchise by engaging new players and continuing to exercise our existing community through in retail.
Tony Town: Dave.
Dave: And lunch within the ox franchise, we remain committed to being pioneers in Nevada.
Tony Tan: We remain committed to being pioneers in the world of interactive entertainment. including strategic investment in advanced AI technologies that enhance both creativity and productivity.
Tony Town: Interactive entertainment.
Tony Town: Including strategic investments in our minds to AI technologies that enhance both creativity and productivity.
Tony Tan: Now I will provide some updates on the ARC franchise. During the fourth quarter, we released the highly anticipated next-gen ARC mobile game, ARC Ultimate Mobile Edition on iOS and Android platforms. In the December launch month, over two million users downloaded the mobile game across the two mobile platforms. Through December 31st, 2024, ARC has been played for 3.9 billion hours. with an average playing time per user of 162.1 hours. Additionally, as we highlighted previously, the top 21.3% of all players have spent over 100 hours immersed in the game, according to data from Steam. We are thrilled with the continued success of the Ark franchise and to see so many players entrenched themselves in the Ark universe.
Tony Town: Now I will provide some updates on the axon side.
During the first quarter, we released the highly anticipated next Jean <unk> mobile game.
Tony Town: Mark I automate mobile edition, iOS and Android platforms.
Tony Town: In the December lunch months over 2 million user down.
Tony Town: Hello date, the mobile game across the tool mobile platforms.
Tony Town: Through December 31st 2024.
Tony Town: It has been paid for 329 meeting been ours.
Tony Town: Please.
Tony Town: On average playing time taught us, they're all 162.1 hours a day.
Tony Town: Money.
Tony Town: We highlighted previously.
Tony Town: Top 21, 3% of all players.
Tony Town: I've spent over 100 hours immersed in the game.
Tony Town: <unk> data from steam.
Tony Town: We are thrilled with the continued success of the franchise and to see so many painters entrenched themselves in invoice.
Tony Tan: Before I hand the call off to Peter and Heidy to discuss our results in more detail, let's quickly go over the financials from the quarter. For the fourth quarter of 2024, Snail generated net revenue of $26.2 million, a decrease from the $28.6 million in the fourth quarter of 2023. In fourth quarter of 2024, net revenue includes the recognition of $8.0 million in revenue from the release of Extinction and part three of Box Totals. ARC sales of $15.5 million and Bell Rides sales of $1.0 million. Thank you all again for joining.
Peter King: Before I hand, the call off to Peter in Haiti to discount.
Tony Town: Results in more detail that's quickly go over the financials from the quarter.
Peter King: For the fourth quarter of 2024.
Peter King: <unk> generated net revenue of $26 $2 million, a decrease from the $28 6 million in the fourth quarter of 2023.
Peter King: In fourth quarter of 2024 net revenue includes the.
Peter King: Vaccination of $810 million in revenue from the release of extinction and past three box hotels.
Peter King: Sales of $15 $5 million and they'll right sales of $1.0 million.
Peter King: Thank you all again for joining.
Peter Kang: With that, I will now hand the call over to Peter Kang, our Senior Vice President, Director of Business Development and Operations, to review our product roadmap and share some key developments. Thank you, Tony. Hello, everyone. Thanks for joining us today. I'd like to provide some updates on each of our core franchises.
Peter Com: With that I will now hand, the call over to Peter Com, Our senior Vice President.
Peter Com: Our business development and operations through these deal or product roadmap and share some key developments Peter.
Peter Com: Thank you Tony Hello, everyone. Thanks for joining us today I'd like to provide some updates on each of our core franchises.
Peter Kang: First, an update on Bell Rite. As of the end of 2024, we have sold over 367,000 units to date, and the wish list count for the game remains over 1 million.
Peter Com: First an update on bill rate.
Peter Com: As of the end of 2024, we have sold over 367000 units to date and the wish this count for the game remains over $1 million.
Peter Kang: Regarding Honeycomb, The World Beyond is a survival sandbox game set on an exuberant planet, Soda 7. Explore its vast world and face challenges on your bioengineering journey. Crossbreed Plants or Animals, Gather Resources, Craft Items, and Conduct Experiments in Order to Develop New Species. Honeycomb continues to represent Snail Games' dedication to providing a unique gameplay experience within the survival genre. We're excited to release this game in 2025.
Peter Com: Regarding honeycomb the world beyond there's a survival sandbox games set top zubrin planet soda seven explore.
Peter Com: Explore its vast world and faced challenges on your bioengineering journey.
Peter Com: Ross breed plants or animals gather resources craft items and conduct experiments in order to develop new species.
Peter Com: Continues to represent the snow games dedication to providing a unique gameplay experience within their survival genre. We're excited to release this game in 2025.
Peter Kang: Echoes of Elysium is an airship RPG set in the procedural world of Elysium. Gather resources to design, build, and live on your customized airships. Alone or with friends, take to the skies and discover clockwork wonders that clash with ancient mysteries in an untamed paradise.
Peter Com: It goes of Elysium as an airship RPG setting the procedural world of Elysium.
Peter Com: Gather resources to design build and live on your customized airship.
Peter Com: Alone or with friends take to the skies and discovery clock work wonders they clash with ancient mysteries and tamed Paradise.
Peter Kang: Robots at Midnight, Bash Through Gangs of Hostile Robots and Corrupt Bosses in this Stylish and Punchy Action RPG. Robots at Midnight is a retro-futuristic souls-like that takes place on Yob. A World Now in Room. Built as a luxury destination, the planet is overrun with dangers, challenging for any human to endure. Be home before midnight.
Peter Com: Robots at midnight.
Peter Com: Cash through gains of hospital robots and corrupt buses in the stylish and punchy action RPG.
Speaker Change: Robots at midnight as a retro futuristic so like that takes place on job.
Peter Com: A world now and Rune built.
Peter Com: Built as a luxury destination planet is overrun with dangerous challenging for any human to endure be home before midnight.
Peter Kang: Moving on to our indie publishing label, Wandering Wizard. As mentioned previously, we have expanded our publishing catalog with several games signed earlier this year. The Cecil, The Journey Begins, Chasm of Fear, Castle of Secrets, and Stoneguard.
Peter Com: Moving onto our indie publishing label wondering Wizard as mentioned previously we have expanded our publishing catalog with several games signed earlier this year.
Peter Com: Let's see so the journey begins.
Peter Com: As more fear castle of Secrets and Stone guard.
Peter Kang: All of these indie titles will be gradually released in our pipeline. At the end of 2024, Wandering Wizard has many game titles at various stages of development and has maintained our commitment to identifying new opportunities that emphasize gameplay excellence and clear market fit.
All of these indie titles will be gradually released another.
Peter Com: In our pipeline.
Peter Com: At the end of 2024 wondering Wizard has many game titles at various stages of development and has maintained our commitment to identifying new opportunities that emphasize gameplay excellence and clear market fit.
Peter Kang: Let's turn now to the ARC franchise. For ARK Survival Ascended, we released the Extinction DLC and Part 3 of the Bob's Tall Tale DLC in the fourth quarter. On the mobile side, we released the highly anticipated revamp of the original ARK mobile game, ARK Ultimate Mobile Edition, in December of 2024. Through the year-end, ARC's Ultimate Mobile Edition has accumulated more than 2 million downloads. Looking ahead to 2025, we are proud to celebrate the launch of the Astrios map as an official partner DLC for Ark Survival Ascended, a significant evolution from its origins as a community created mob.
Peter Com: Let's turn now to the arc franchise.
Peter Com: For our survival attended we released the extinction DLC.
Peter Com: Part three of the Bob Pall tailed DLC and the fourth quarter on.
Peter Com: On the mobile side, we released the highly anticipated revamp of the original art mobile game arc Ultimate mobile edition in December of 2024.
Peter Com: Through the year and our ultimate mobile edition has accumulated more than 2 million downloads.
Peter Com: Looking ahead to 2025, we are proud to celebrate the launch of the AST trios map.
Peter Com: The official partner DLC for arc survival has said it.
Peter Com: There's significant evolution from its origins as a community created mob.
Peter Kang: by acclaimed map maker. LeCarte LeCarte Now fully supported as a paid DLC, the Astreos map enthuses the Ark universe with a rich Greek mythology twist, delivering immersive new environments and challenges that transform the overall gameplay experience.
Peter Com: By acclaimed map maker.
Nick Curtis: Nick Curtis.
Speaker Change: Now fully supported as a paid DLC the Austrian Smith infuses, the Ark universe, with a rich Greek mythology twist, delivering immersive new environments and challenges that transformed the overall gameplay experience.
Peter Kang: We are excited to announce the 10-year anniversary ARC Survival Evolved Aquatica DLC, a fully underwater gameplay experience. Waking up on Aquatica, a crash-landed ARC submerged with a vast underwater biome, survivors are thrust into exotic challenges never before encountered. Extreme environmental hazards, crushing pressures, rapid currents, and a host of extraordinary creatures await within the mysterious depths. On Aquatica, survivors will uncover the potential source of element and catch a glimpse of what the future holds for those bold enough to endure. Aquatica is the first official DLC to tell a non-canonical myth-tical story, expanding the ARK universe into new dimensions of survival.
Speaker Change: We are excited to announce the 10 year anniversary arc survival evolved aquatic had DLC a fully underwater gameplay experience waking up on the Quantico.
Speaker Change: <unk> branded Rx emerged with the Vas underworld water biome survivors, our thrust into the exotic challenges never before encountered extreme environmental hazards crushing pressures rapid currency and a host of extra ordinary creatures of weight within the mysterious deaths.
Speaker Change: On the Quantico survivors will uncover the potential source of element and catch a glimpse of what the future holds for those bold enough to endure.
Speaker Change: Because the first official DLC to tell a noncanonical myth.
Speaker Change: Oh, sorry.
Speaker Change: Spanning the Ark universe, and two new dimensions of survival.
Peter Kang: We are excited for the next chapter in the ARC universe with the release of ARC Lost Colony DLC for ARC Survival Ascended towards the end of the year. ARC Lost Colony is a full-size canonical expansion pack featuring a new map, creatures, items, structures, and a continuation of the story of ARC.
Speaker Change: We are excited for the next chapter and the arc universe with the release of Arc lost colony DLC for arc survival extended towards the end of the year.
Speaker Change: Park lost colony is a full sides canonical expansion pack featuring a new map creatures items structures and the continuation of the story of bark.
Heidy Chow: I will now pass the call out to Heidy to discuss our financial results in more detail. Heidy? Thank you, Peter. And hello, everyone. Thank you for joining us. As mentioned, net revenue for the three months ended December 31, 2024 was $26.2 million as compared to $28.6 million in the three months ended December 31, 2023. The decrease in revenues during the three months ended December 31, 2024, was due to a reduction in sales of AHRQ that was partially offset by the recognition of deferred revenue upon the release of AHRQ Survival Ascendant DLCs noted in our financial statement.
Speaker Change: Now I'll pass the call out to Heidi to discuss our financial results in more detail I D.
Heidi Child: Thank you Peter.
Speaker Change: And Hello, everyone. Thank you for joining us.
Speaker Change: As mentioned net revenue for the three months ended December 31st 2024 was 26 <unk>.
Speaker Change: Compared to 28 6 million in the three months ended December 31st 2023.
Speaker Change: The decrease in revenues during the three months ended December 31st 2024 was due to a reduction in sales of art that was partially offset by the recognition of deferred revenue upon the release of our survival Ascendant DLC noted in our financial statements.
Heidy Chow: Net revenue for the year ended December 31, 2024 was $84.5 million as compared to $60.9 million in the prior year period. The increase in net revenue was due to an increase in recognition of deferred revenue of $32.2 million related to the ARC franchise. An increase in sales fell right at 5.9 million. partially upset by a decrease in total ARC cells of 13 million. A decrease in Art Mobile sales of $1 million and a decrease in the company's other titles of $700,000. Net income in the fourth quarter of 2024 was $1.1 million versus $2.4 million in the fourth quarter of 2023.
Net revenue for the year ended December 31st 2024 was $84 five pneumonia as compared to 69.
Speaker Change: In the pie.
Speaker Change: Yeah.
The increase in net revenues was due to an increase in recognition of deferred revenue of 32.2 million related to the Shanghai.
Speaker Change: Increase in sales Bell right of slide nine millimeter, partially offset by a decrease in total ourselves.
Speaker Change: Melanie.
Speaker Change: A decrease in mobile sales of 1 million and a decrease in the company's other titles of several hundred thousand.
Net income in the fourth quarter of 2024 was $1 1 million versus two 4 million in the fourth quarter of 2023.
Heidy Chow: The decrease in net income is a result of increased research and development costs of $3 million to support our future game releases, partially offset by an increase in gross profit of $1.4 million and a decrease in advertising and marketing expenses of $900,000. Net income for the year ended December 31, 2024 increased significantly to $1.8 million versus a net loss of $9.1 million in the prior year period due to an increase in net revenue of $23.6 million. Decreased general and administrative expenses of $2.9 million, partially offset by increased research and development costs of $6.5 million, increased cost of revenue of $5.9 million, and a decrease in income tax benefits of $3 million.
Speaker Change: The decrease in net income is a result of the increase in research and development cost of 3 million.
Speaker Change: To support our future game JV.
Speaker Change: Partially offset by an increase in gross profit of $1 4 million.
Speaker Change: The decrease in advertising and marketing expenses.
Speaker Change: The Hudson.
Speaker Change: Net income for the year ended December 31st 2000, Twenty's boy increased significantly to one 8 million versus a net loss of nine 1 million in the prior year period due to an increase in net revenue of $23 6 million.
Speaker Change: Decreased general and administrative expenses of $2 9 million, partially offset by increased research and development cost of $6 5 million.
Speaker Change: Increased cost of revenue of $5 9 million and a decrease in income tax benefit.
Speaker Change: Ladies and gentlemen.
Heidy Chow: Booking for the three months ended December 31, 2024 was $17 million as compared to $52.6 million for the three months ended December 31, 2023. The decrease in booking is due mainly to the release of ARC Survival Ascendant in the fourth quarter of 2023. Bookings for the year ended December 31st, 2024 was $75.7 million as compared to $85.7 million in the prior year period. Bookings decreased by 10 million or 11.7% compared to the year ended December 31st, 2023 because of increased sales at a higher AFP driven by the release of ARK Survival Ascended in the fourth quarter of 2023.
Speaker Change: Bookings for the three months ended December 31, 2020, as Paul was 17, <unk> as compared to $52 6 million for the three months ended December 30, <unk> 2023.
Speaker Change: The decrease in bookings is due mainly to the release of art survival a center in the fourth quarter of 2020.
Speaker Change: Bookings for the year ended December 31, 2024 was $75 7 million as compared to $85 7 million in the prior year period.
Speaker Change: Bookings decreased by 10 or 11, 7% compared to the year ended December 31st 2023, because of increased sales at a higher ESP driven by the release of our survival of some debt in the fourth quarter of 2023.
Heidy Chow: The releases of Box Tile Tilt and Bell Rite, along with the Ark Survival Ascendant DLC, Scorched Earth in April 2024, Aberration in September 2024, and Extinction in December 2024, partially offset the decrease in unit sales in 2024, but each product release was at a lower ASP than the initial release of Ark Survival Ascendant. Additionally, the company recognized $13.2 million from deferred revenue upon the release of Scorched Earth, Aberration, and the first two parts of Bob's Power Tale in 2024, and deferred $6.7 million in revenues during the year ended December 31, 2024 for the Ark Survival Ascended DLCs have not yet released, as compared to $22 million in revenue deferred during the year ended December 31, 2023 for the Ark Survival Ascended DLC and parts of Bob's Power Tales that have not yet launched.
Speaker Change: The release is a box hotels and Bel Ray along with the Orange survival ascended DLC scorched Earth in April 2024, aberration in September 2024 and <unk>.
Speaker Change: In December 2024, partially offset the decrease in unit sales in 2024, but each part of the release it was at a lower ASP than the initial release of survival are centered.
Speaker Change: Additionally, the company recognized $13 2 million from deferred revenue upon the release of scorched Earth aberration.
Speaker Change: The first two parts of Bob's hotel in 2024.
Speaker Change: The first $6 7 million in revenues during the year ended December 31, 2024 for the arm survival of spend the dlcs have not yet.
Speaker Change: As compared to 22 million in revenue deferred doing that yet and at December 31, 2023 for the Orange survival ascended DLC and plus.
Speaker Change: Bob hotels that have not yet launched.
Heidy Chow: Deep Dive for the quarter was $1.6 million versus $3.6 million in the prior year period. The $2 million or 55.6% decrease in EBITDA was due to a decrease in net income of $1.3 million. A Decrease in Interest Expenses and Interest Expenses Related Parties of $400,000 and a Decrease in Provision of Income Taxes of $300,000. It is that for the year was 3.2 million versus a loss of 9.7 million in the prior year period. The $12.9 million or 133.4% increase in EBITDA was primarily because of an increase in net income of $10.9 million and a decrease in the benefit from income taxes of $3 million.
Speaker Change: EBITDA for the quarter was one 6 million versus $3 6 million in the prior year period.
Speaker Change: It's really only now 55, 6% decrease in EBITDA was due to a decrease in net income of 1.3 Nguyen.
Speaker Change: A decrease in interest expenses and interest expenses related party of 400000, and the decrease in provision of income taxes of 300000.
Speaker Change: EBITDA for the year was $3 2 million versus a loss of $9 seven unit in the prior year period.
Speaker Change: The $12 9 million 133, 4% increase in EBITDA was primarily because of an increase in net income of $10 9 million and a decrease in the benefit from income taxes of $3 million.
Heidy Chow: partially upset by decreasing interest expense and interest expense related party of 800,000. As of December 31st, 2024, unrestricted cash and cash equivalent was $7.3 million.
Speaker Change: Partially offset by a decrease in interest expense and interest expense related party of 800000.
Speaker Change: As of December 31, 2020 for unrestricted cash and cash equivalents was seven 3 million.
Heidy Chow: To review our detailed financial statements, please refer to the earliest press release, our most recent 10Q NL10K filing.
He'll review our detailed financial statements. Please refer to the earnings press release, our most recent 10-Q and now 10-K filing.
Speaker Change: Okay.
Unknown Executive: Thank you all for joining us today. We will now open the line for Q&A. Operator, Thank you.
Speaker Change: Thank you all for joining US today, we will now open the lines for Q&A.
Speaker Change: Operator.
Speaker Change: Thank you well now be conducting a question and answer session.
Operator: We will now be conducting a question and answer. If you would like to ask a question, please press star 1 on your telephone. Confirmation Tone 1DK, you're live.
Speaker Change: If you'd like to ask a question. Please press star one on your telephone keypad.
Speaker Change: A confirmation tone will indicate your line of my question queue. You May press star two to remove your question from the queue.
Operator: You may press star two to remove your Participants using speaker equipment, it may be necessary to pick up your handset before proceeding.
Speaker Change: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.
Michael Kupinski: Our first question is from Michael Kupinski with Noble Capital. Please proceed with your question. Thank you and congratulations on a solid quarter. I have a couple of questions. When do you anticipate Bell Rite would be available on Xbox? And then how many new games do you have access to Bell Rite? Or how many new gamers will have access to Bell Rite on Xbox? And could you just talk a little bit about whether or not it would be a good candidate for Game Pass?
Speaker Change: Our first question is from Michael Kaplinsky with Noble capital markets. Please proceed with your question.
Michael Kaplinsky: Thank you and congratulations on a solid quarter I have a couple of questions.
Michael Kaplinsky: When do you anticipate bell right would be available on Xbox and then how many new games do you have access to bell right. How many new gamers will have access to about right on Xbox and could you just talk a little bit about whether or not it would be a good candidate for game pass.
Peter Kang: Hi, this is Peter Kang. I'm going to try to give some answers to this question. We do anticipate Bell Rite to be available on the Xbox platform in Q4 of 2025. As far as how many new gamers, well, that's hard to say. There's lots of console gamers out there that enjoy the survival simulation crafting type of gameplay. We do believe it is a unique product in that catalog. There's not too many of those types of games on that platform. If I were to have to guess, it might be at least as much as we have on PC over time.
Michael Kaplinsky: Hi, This is Peter King I'm going to try to give some.
Michael Kaplinsky: Yes.
Michael Kaplinsky: The answer to this question, we do anticipate bell right to be available on the Xbox platform in Q4 of 2025.
Michael Kaplinsky: As far as how many new gamers as well.
Michael Kaplinsky: Hard to say, there's lots of console gamers out there then enjoy the survival stimulation crafting type of game play. We do believe it is a unique product in that catalog theres not too many of those types of games on that platform.
Michael Kaplinsky: If I would have to guess it might be.
Michael Kaplinsky: At least as much as we have on PC.
Michael Kaplinsky: Overtime.
Peter Kang: As far as if it would be a good candidate for the Game Pass program, you know, that's up to Microsoft to consider. We do have communications open with their team regarding that subject. So, you know, hopefully that question can get answered in the future. But as of right now, We don't have a definite confirmation. Thank you.
Michael Kaplinsky: As far as if it would be a good candidate for the game pass program.
Michael Kaplinsky: That's up to Microsoft to consider we do have communications open with their team regarding that subject.
So you know hopefully.
Michael Kaplinsky: Hopefully that question can't get answered in the future, but as of right now.
Michael Kaplinsky: We don't have a definite confirmation.
Michael Kaplinsky: Thank you and then another question.
Unknown Executive: And another question. I know that the several gaming companies in the past have gotten into a little bit of trouble as they tried to develop more games and, and, and then just kind of ran out of resources. I know that you have a different process for that.
Michael Kaplinsky: I know that the.
Speaker Change: Several gaming companies in the past have gotten a little bit of trouble as they tried to develop more games and and and then just kind of ran out of resources I know that you have a different process for that and I was wondering if you can kind of describe that a little bit and then also discuss some of your newer titles.
Peter Kang: And I was wondering if you can kind of describe that a little bit, and then also discuss some of your newer titles, potential release timelines, and also the benefits of doing some revenue diversification. Sure, sure. That's a very complicated question, but I'll do my best to break it down. So, we definitely have increased our licensing pipeline. Last year, we went out and signed 11 new publishing deals to publish content manufactured and developed by third parties. We also kicked off or continued development of three internal projects. These projects are bigger in scale, using some with new IPs, like the Project for the Stars, and some with flagship IPs that we have retained for many years, named 9Yen Sutra, I believe.
Michael Kaplinsky: Potential release timelines and also the benefits out doing some revenue diversification.
Michael Kaplinsky: Sure sure that's a very complicated question, but I'll do my best to break it down so we definitely have increased our <unk>.
Michael Kaplinsky: Licensing pipeline, where last year we.
Speaker Change: Oh and signed 11, new publishing deals to.
Speaker Change: To publish content manufactured and developed by third parties.
Speaker Change: We also kicked off or continued development of three internal projects.
Speaker Change: These projects are bigger in scale.
Speaker Change: Using some somewhat new IP like like the project for the stars and some with the flagship IP that we have retained for many years.
Speaker Change: Named nine yen Sudra I believe right.
Peter Kang: Right. And then, you know, as we move on, we're constantly looking for new projects to publish. So we're very active in the sector, looking for different projects to publish. The projects that we have signed, Honeycomb, for example, that is coming out on the second half of 2025. Echelon of Elysium, another sandbox survival game that will also be arriving second half of 2025. Robots at Midnight, is going to be the first half of 2025. So coming up here in a few months.
Speaker Change: <unk>.
Speaker Change: And then as we move on we're constantly looking for new projects Globish. So we're very active in.
Speaker Change: The sector looking for different projects and publish.
Speaker Change: The projects that we have signed.
Speaker Change: <unk> for example that is coming out on the second half of 2025.
Speaker Change: Because of Louisiana, another Sandbug survival game that will also be arriving second half of 2025.
Speaker Change: Robots at midnight.
Speaker Change: Going to be the first half of 2025, so coming up here in a few months.
Peter Kang: And then how do you allocate your resources among, you know, the marketing spend against, you know, some of the titles and how do you allocate those resources? Sure, you know, resource allocation is mainly based on an analytical approach where we look at the size of the market that the game will be actively trying to establish a presence in. And based on the size of that market, we do some math and we deduce the correct amount of marketing budget that, you know, we can afford to spend on the project. Great.
Speaker Change: And then how do you allocate your resources among.
Speaker Change: The marketing spend against.
Speaker Change: Some of the titles.
Speaker Change: How do you allocate those resources.
Speaker Change: Sure.
Speaker Change: Resource allocation is namely based on.
Speaker Change: Political approach, where we look at the size of the market that the game will be active.
Speaker Change: Actively trying to establish a presence in.
Speaker Change: Based on the size of that market, we do some math.
Speaker Change: We did use the correct amount of marketing budget that we can afford to spend on the project.
Unknown Executive: That's all I have. Thank you. There are no further questions at this time.
Speaker Change: Great. That's all I had thank you.
Speaker Change: Thank you there are no further questions at this time I'd like to hand, the floor back over to management for any closing remarks.
Unknown Executive: I'd like to hand the floor back over to management for any closing This concludes today's conference.
Speaker Change: This concludes today's conference you may disconnect your lines at this.
Operator: You may disconnect your line at this time. Thank you for your participation.
Speaker Change: Thank you for your participation.