Thank you for standing by, and welcome to Snail, Inc.'s First Quarter 2025 Earnings Conference Call and Webcast. I would now like to turn the call over to Steven Shinmachi with Investor Relations..
Thank you, and good afternoon, everyone. Welcome to Snail Inc.'s first quarter 2025 earnings conference call and webcast. Joining us for today's call are Snail, Inc.'s Co-CEO, Tony Tian; Senior Vice President, Director of Business Development and Operations, Peter Kang; and Chief Financial Officer, Heidy Chow.
The company's first quarter 2025 earnings press release was filed earlier today and is available on the Investor Relations section of Snail Inc.'s website at www.snail.com or the SEC's website at sec.gov/edger. 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. Please refer to the company's Form 10-Q that has been filed with the SEC, the most recent Form 10-K that was filed with SEC on March 26, 2025, and other SEC filings.
The company may make these forward-looking statements as of today and disclaims any duty or obligation to update them or to 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, on which any such statement is based.
Additionally, on today's call, we refer to bookings and EBITDA, which are non-GAAP financial measures and 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.
And now, I will turn the call over to Tony Tian, Co-Chief Executive Officer of Snail. Sir, please proceed..
Survival Evolved, our expanding game portfolio and additional new information that was reviewed at GDC.
Peter?.
The World Beyond, Robots at Midnight, and Echoes of Elysium.
Our indie publishing label, Wandering Wizards launched two new titles this quarter and recently acquired the publishing rights to Whispers of West Grove, an upcoming psychological horror game developed by NVNT Studios and Rebel Engine, a Hack n' Slash with the speed and gunplay of a 1990s first person shooter developed by Seven Leaf Clover out of Buenos Aires, Argentina.
The continued growth of Wandering Wizards reflects our larger goal of diversifying our creative output, expanding into new genres and partnering with a wider range of independent developers strengthens our position in the indie publishing space and supports our long-term vision of building a more diversified and resilient entertainment portfolio.
With a strong lineup of upcoming titles and new content for the ARK franchise along with additional content tied to the 10-year anniversary, we remain committed to delivering fresh, engaging experiences for our players and in turn driving returns for our shareholders. With that, I will now turn the call over to Heidy to discuss our financial results.
Heidy?.
Survival Evolved franchise with a series of upcoming releases and announcements in the works to commemorate the game's long lasting legacy and dedicated player community. We remain focused on expanding the global reach of our games, bringing our content to new audience around the world.
The ARK mobile game will continue to play a key role in this effort, as mobile broadens the franchise's accessibility and impact across a wider player base. Beyond ARK, we are actively investing in scalable growth opportunities across adjacent genres and emerging platforms.
Our goal remains to deliver innovative, engaging experiences that resonate with players across diverse platforms and game styles. Thank you all for joining us today. We will now open the line for Q&A.
Operator?.
Thank you. We will now be conducting a question-and-answer session. [Operator Instructions]. Our first question comes from Michael Kupinski with Noble Capital Markets. Please proceed with your question..
Thank you, and congratulations on your strong quarter. A couple of questions. I was wondering if you can just talk a little bit about your approach to revenue diversification. I know that you had a number of initiatives here. I just kind of wanted like to hear your strategy for that..
The World Beyond, and Echoes of Elysium, all releasing this year. We expect the new revenue streams will have a meaningful contribution for our revenue diversification efforts..
And Peter, you mentioned MOU. I was just wondering if you could talk a little bit about the revenue implications of MOU with Mega Matrix..
Thank you. I'll just -- I'll let Tony address this one.
Tony?.
Sure, sure. Hi Michael, I think at this moment, it's probably a little early to measure the potential revenue contribution from the short drama business as we just announced the MOU. But what I can tell is that we have an in-house team and we have been evaluating developing the land of business for quite a while.
And over the past several weeks the MPO team and also our in-house team has been working together. At this moment, we are in the early stage to working on a couple of short drama series. So there will be some revenue contribution from that line of business.
But at this moment, we don't have a specific number of how many short drama series we will be developing, producing this year. Based on the MOU, we're and the two parties has -- are willing to co-develop at least 10 drama series over the next 12 months..
Got you. And then I was wondering if you could talk about obviously you had some cost increase significantly some of the research and development costs certainly for some of these products and so forth, but also from advertising and marketing, which was up about $1 million or so.
I was just wondering if you can just talk a little bit about advertising and marketing costs and how we should think about those line items as you kind of look to the upcoming quarters..
The World Beyond and Echoes of Elysium. We're truly excited about these releases. Moving forward, we do not expect to see such quarter-over-quarter increases as we refine our game unveiled strategies and explore our participation in other game shows..
Got you, Peter. And my final question is, obviously this is, you have a lot of expenses, a lot of product launches and so forth. And I would assume that you're going to monetize that in coming quarters.
But how do we -- how should investors look at the bottom line and your approach to turning net income positive?.
Ultimate Mobile Edition and that in itself can drive high margin micro transactions. We continuously seek our investments in profitable and scalable content to add to our content pipeline..
Terrific. That's all I have. Congratulations. Keep up the good work..
Thank you..
At this time, this concludes Snail, Inc.'s first quarter 2025 conference call. If your question was not taken, please contact Snail, Inc.'s IR team at snal@gateway-grp.com. Thank you for your participation and you may now disconnect..