... Our next presenting company is Snail Inc., which is traded on the NASDAQ under the ticker symbol S-N-A-L. Snail Inc. is a global independent developer and publisher of interactive digital entertainment. The company was one of the pioneers in the sandbox survival genre, and its flagship ARK franchise has been the leading title in this space for over a decade now, since its launch in 2015. But more recently, the company has also entered into the stablecoin space, exploring blockchain-enabled digital assets as part of their broader strategy to innovate and diversify revenue streams in the evolving digital entertainment ecosystem. So here to tell you more about the company is CFO Heidy Chow and Director Jim Tsai.
Good afternoon, everyone. My name is Heidy , and as Steven said, I'm the CFO of the company. With me today is also Jim Tsai. He's our board member and also our CEO previously. He was the CEO that actually took us public on IPO back in 2022. So before we go through the deck, page by page, and I'll give Jim a few minutes that can talk about our gaming side of the business, our company, our history of the company, and also our Ark survival game.
Thank you. First of all, thank you all taking the time to this meeting. Today we're going to talk very exciting story. First of all, I wanna get to a little bit know you. Anyone heard of the game called Grand Theft Auto? If you know... Okay, nod your head. Okay. So now let's talk about video game, which is my favorite topic. I can talk twenty-four hours and twenty-five minutes. I love this game industry. I've been in this industry for twenty-plus years, very early time. If we wind back to early time when we talk about video game, well, basically, you're thinking about working in a garage, maybe basement, a couple of student, and come out with a game. But fast-forward to today, we're talking about billions of players.
The economy is not just larger than the entertainment, like music and movie and TV, is larger than they combined, and thanks to the internet, thanks to the smartphone. Not everyone has a smartphone. Every smartphone has at least one or multiple games in there, which is broaden our gamer base. If you looking back, like, 10, 20 years ago, do you play game? Very intimidated, like, "Oh, I don't know how to controller. I don't know how to actually play game." But nowadays, everyone know how to swipe, and then that's video game, right? When you get into video game content, you're starting to start it with casual game and get into more narrative game. Like, you look at the TV series, The Witcher, The Last of Us, a lot of narratives and IP been converted.
Not the traditional way would be entertainment IP converted into video game, which is not very successful. But you look at the current situation, the era. A lot of video game IP converted to entertainment, and which is the best marketing tool. Without spending millions of dollars, you already have a broader base that's looking, like, "What is this IP?" It's a video game. So that's video game market, but talk about Snail Games. So Snail Games established the parent company in nineteen ninety-nine, starting the first game, free-to-play game. If you're in the video game, you have to understand what is the very generation revolution of free-to-play. Free-to-play, basically, as we say, you don't need to pay anything.
It's easier to acquire a new user because when a player looking at, "Oh, I like play video game, but I don't want to pay." So you get into a free-to-play, you don't need to pay for it for life. You don't need to pay anything. But the free-to-play game, basically, it's getting to a different financial model, right? You get a lot of free to play, but you only have 1%-2%, and maybe lucky to get 3% conversion rate. Now, we want to talk about Snail Games. Snail Games has been in the video game industry for more than 20 years, and we have a U.S. company that spun off from parent company, just went public, a NASDAQ-listed company in 2022 as SNAL. That's what we are here to talk about investment idea how to invest into the company.
The company—every video game company is like a movie industry. Every movie need to have the tremendous IP, like Marvel, like, Superman. We have this tremendous IP called ARK: Survival Evolved. This IP has been sitting in the market, always hitting the top chart, top chart, meaning like Steam platform, Apple platform, PlayStation, Xbox, when there's a new update coming out. Back in 2015, when we have the first game released, a surge of gamer come in, and because this is a new genre. When you're talking about new genre, it's almost unprecedented to have a new genre other than shooting, racing game. This is a new genre. We call it survival game. Player loves it.
Player loves it ten years ago, player still loves it ten year after, and they're looking for like, "Hey, what is your next sequel?" And the sequel can be come out this year or next year. But other than that, we are building this franchise from the base game and DLC, we call it DLC, downloadable content, as expansion. Every expansion that come out, the base game we saw around $40-$50 at the base game 10 years ago. Now we sell the expansion pack every year, like $15 or $20, it depends on the expansion pack. But every expansion pack always hitting the top chart: Steam, PlayStation, and Xbox, and we already have expansion pack like five or six.
Every time the new expansion pack come out, it just get a tremendous revenue jump, because the player been playing this base game. It's very much like the game. It's like a Zelda, and you get a Zelda 2, everyone get Zelda again. So this game has been a core player and continue to grow a new user on the base game and DLC. But I want to spend more time for Heidy to go through the number to back what I am talking about the story.
Thank you, Jim. I'm not going to go page by page, and I'll go through the stack on a very high level. We do have the stack on our website that, you know, you're welcome to download and look and see from our website. Should you have any questions, you can reach out to Gateway, Steven and John Yee, if you wanted to have further discussion. Our history, Jim mentioned about our history is, you know, over fifteen years of game development. We first started free-to-play of Age of Wushu, and now we have Ark: Survival Evolved, Ark: Survival Ascended, Last Oasis, Bellwright. Bellwright was released in 2024. Our current executive team, other than Jim as being our board member, we also have our co-CEO, Mr. Hai Shi. Tony Tan is our co-CEO as well, and myself, Heidy Chow.
Key financial data is our net revenue for 2024 has a net revenue of $85 million in total of 4.7 million units that were sold, with over 36% gross margin. Across all the platform, both mobile and PC, and console. Basically it is PC as Steam, console for Xbox, PlayStation, Switch, and also mobile as well. You know, all of us, as Jim said, you know, all of us are holding on to our mobile phone. There is ARK: Survival Evolved mobile version and also ARK Ultimate Mobile Edition. That's a remake of ASE mobile game. We distributed our game digitally, almost 90% of our game distributed digitally. Mobile game has a small portion of our total revenue. We also have a distribution center that is assisting us for our retail.
We don't deal with the end user. We actually have distribution center and also the platforms that is assisting for dealing with the end users, so our key investment highlights are actually, you know, we are a leading gaming company in a highly growth industry, because all of us now is, you know, almost everyone sometimes will hold on to their phone and start to play some video game, whether it is a hardcore video game or, you know, just casual video games, and not only on the video game, we're actually getting into a blockchain forward and digital assets, which I will go over.
I'll spend a little bit more time to go over the stablecoins, because I'm sure that, you know, with the company that's been in the business for over 15 years, a lot of you guys will know how the gaming industry work, but not on the stablecoin side. So, on this page, it's actually just giving you an overview of the gaming market. Like, how can we actually grow in the gaming market? ARK: Survival Evolved is actually. This is an accumulated number. As of right now, we sold more than, on a gross basis , of $950 million in gross. And base game and the DLC installs are over 100 million installs, and we have more than 4.1 billion hours that players actually play on the Steam platform.
Don't forget, we other than Steam, we also have a console for Microsoft, for Xbox and also PlayStation. The 4.1 billion hours is not considering the other platforms. Our peak Steam daily active user, that means that on a daily basis, that actively playing was 1.1 million. This is just a player engagement, a summary of the previous slide. On here is a quarterly revenue, quarter over quarter from Q3 of 2023, giving you an overview of our performance from Q3 2023 through Q2 of 2025. As you can see that, you know, we are consistent. Our revenue been consistent quarter over quarter. Whenever there's a spike, that means that we have a new launch, whether it's a base game that we launch or a DLC that we launch. In Q2 of 2025, we actually launched our ASE DLC.
We did a pre-sale that's called Lost Colony, and we did a pre-sale in June of 2025. But along with the pre-sale, earlier when I was talking to some of the investor, that why would player be buying it if it's not available? But it is a bundle that we're selling along with a Fantastic Tames. So player could actually get a discounted price right now. When they wait until December, both the Fantastic Tames and the Lost Colony will be separate items that they will have to purchase. So what is our strategy to drive the growth? A gaming expansion, product expansion, and also stablecoin project. From a gaming expansion is we started to invest into more of a indie game publishing.
We worked with some of the smaller developers, we funded the project, and we published the game. In 2025, we have a handful of the games that we actually published during the first six months of 2025. Towards the second half of 2025, we still have two games that we are expecting to launch. One is Echoes of Elysium and Honeycomb. For any of you that if you heard our earnings release previously, probably hear we talk about Echoes of Elysium and Honeycomb a lot. In 2026, we actually have two internally developed games that we will be publishing in 2026. For the Stars, this is an internal developed game that we've been developing that game for over the past few years.
Nine Yin Sutra Immortal, that's actually a game that we're utilizing the Age of Wushu IP, and is a martial art fantasy game that is in a rich world of cultivation and spiritual. So a lot of things that will be happening from Q3 of 2025 all the way towards the in 2026. So how we're expanding the development capacity to support our pipeline is actually, as you know, we're running the operation in a very lean, efficient way. Our team hasn't grown significantly. We try to utilize, one is we have internal development team, but we also have outside outsourced consultant contractors that we're working with. We also have a subsidiary that is in Poland, that's better to control our cost and also utilize the technical support that they have.
Our Poland entity, actually, earlier I mentioned that we have a game that was released. It's called Bellwright. It was released in 2024. It was a game that was internally developed from the Poland entity. So lean and efficient operating structure is one of our cost management. We outsource some of our development functions to avoid overextending our internal R&D headcount. For the Stars, we're doing it both with outsourced contractor plus the internal development team. So diversifying our monetization with R2 sequel. So R2, we also have our external partner actively working on R2.
R2 is definitely going to be different than R1, ARK Survival Evolved, or R 1.5, ARK Survival Ascended, because R2 is going to be a combination of it is a survival game, but it will have Vin Diesel, and then with open world survival, and, and, and with a deep narrative focus. And then we're also involved with, you know, we're putting in some of the different type of gameplay involved. Stablecoins. So I spent a couple minutes on stablecoins, and I know that a lot of you guys will think that, you know, "Why stablecoin? Why not treasury management?" A lot of public companies that they're doing treasury management, that, you know, for a company that really don't have to do much, and you could do a treasury management, and your stock might be going up I don't know how many times.
But you know, for Snail, as we're actually looking to build a company to retain the value as well. We are a company that we've been dealing with the digital world for over the past 15-20 years. So as you see earlier, you know, we have a giant player base. One thing that we could utilize our stablecoin is to build our stablecoin utilizing our current gamer that has either bought our game, play our game, or still playing our game. That could be, you know, they have been a loyal fans of our game over the past ten years, and that we could build that as one of our rewards program, put that into our ecosystem.
A single second way of the stablecoin is we could also attract investor as a, you know, just a regular stablecoin business, as a money transmittal platform. We're currently working on getting all the licenses with the various state. We are managing our costs. We're getting licensed on some of the state in the United States, and we are also trying to work on some of the foreign countries as well. For those of you that might going to ask is: Why you want to do stablecoin? We actually did a little bit of data analysis, that as of today, there's a supply of $170 billion of stablecoin, and this figure is actually expected to reach $1.4 trillion by 2030.
With Snail, that, you know, with our gaming industry, our gamer, our players, that, you know, we want to build this as part of our ecosystem. Snail will be the first gaming company with stablecoin currently on the market. There isn't any other gaming company or developer or publisher that actually is a stablecoin issuer. So what we have done so far is we already retained a crypto expert, George Chao, and Dr. Chao has a PhD degree, and we also engage with OMM. That is our lead counsel that is assisting us with all the legal and compliance documents, and getting through all the regulations and stuff. So Snail Games plus stablecoin, meaning that is heightened the engagement. ARK franchise gamers, we have 90.5 million. 54% of them is actually through a paid DLC conversion.
So with all this, more gamers will increase the engagement, and as we're building the stablecoin into the gaming system, it could also indirectly impact our gaming revenue as well. So on this slide is I just wanted to give an overview of our key investment highlight, as what I've gone through earlier. Is a leading gaming company in an attractive growth industry, sustainable revenue, and highly engaged gamers, franchise expansion, opportunity beyond gaming. And more importantly, is actually the last one, is the blockchain forward and digital asset progressions. So that concludes our presentation. We have a few minutes of Q&A.
Open up the floor to Q&A.
What portion of your revenues are dependent on Ark?
ARK, for between digital and mobile, if we are including all the ARK-related revenue, I'll say about 85% of the revenue coming from ARK.
What do you expect to be second coming in the next few years?
What we are expecting secondly, it will be, you know, currently we have the two games that we're launching in 2026, the For the Stars, and also the Age of Wushu game that we're expecting that to be performing as well.
Okay, and then finally, what do you think your cost-cutting measures will do to improve net income? Like, where do you see that going?
You know, right now, our cost, majority of all our cost is actually paying for the royalty and also paying for the license fee. In twenty twenty-six, when we're actually launching two additional big games that is internally developed, cost that we have already bear, that, you know, internal developed game. We don't have a license fee that we have to pay. We don't have a royalty that we have to pay as we're moving forward with those two games that we're launching.
Mm-hmm.
There's no other questions? I have one question for Heidy . Obviously, the most somewhat recent regulatory passing was the Genius Act. I think that brings a lot of headway to... or tailwinds to, you know, your initiative with the stablecoin. So how is, you know, how is Snail approaching the whole compliance, risk management, and also development of the underlying infrastructure needed to, you know, pursue this type of stablecoin project?
Thank you, Steven. So, you know, stablecoin is definitely a highly regulated business, and with Genius Act that was passed, I think it was mid-July, something of this year. So we know that, you know, because it's highly regulated and with compliance, so we getting the company in compliance and fulfilling all the regulation is our top priority. So we engage one of the top firm, O'Melveny, actually assisting us, getting all the proper license, getting all the, having all the vendors involved with the KYC, with the anti-money laundering policy in place. That's what we are actually doing behind the scenes at this moment right now, because by issuing the coin on a blockchain is easy. However, compliance and following all the rules and regulations is something that we're actually building that at this moment and making sure we are in compliance for all the laws and regulations.
Awesome. Well, I think that concludes it for the presentation for Snail Inc., so thank you all for joining today.