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Jun 30, 2024

Kartoon Studios Q2 2024 Earnings Report

Kartoon Studios' Q2 2024 performance was marked by revenue growth and significant cost reductions.

Key Takeaways

Kartoon Studios reported a 38% increase in revenue compared to Q1 2024, driven by its 'Three Pillars' business strategy. The company also achieved a 39% reduction in direct operating costs compared to Q2 2023, and net losses were slashed by 61%.

Kartoon Channel! streaming service experienced substantial growth, becoming a premier kids' entertainment hub.

The company expanded its distribution network to 16 platforms and operates in 69 countries.

Significant cost reductions across all operating units resulted in a 39% decrease in direct operating costs compared to Q2 2023.

Net losses were reduced by 61% in Q2 2024.

Total Revenue
$8.38M
Previous year: $11M
-24.0%
EPS
-$0.15
Previous year: -$0.47
-68.1%
Gross Profit
$1.63M
Previous year: $11M
-85.2%
Cash and Equivalents
$9.2M
Previous year: $4.84M
+90.0%
Free Cash Flow
-$6.53M
Previous year: -$5.44M
+19.9%
Total Assets
$38.8M
Previous year: $178M
-78.2%

Kartoon Studios

Kartoon Studios

Forward Guidance

Kartoon Studios is confident that recent actions and current trends will lead to profitability by 2025.

Positive Outlook

  • Reductions in direct operating costs.
  • Lowering general and administrative expenses.
  • Focus on operational efficiency and strict cost control.
  • Reduced total operating expenses.
  • Strong balance sheet with no long-term debt.

Challenges Ahead

  • Our ability to generate revenue or achieve profitability.
  • Our ability to obtain additional financing on acceptable terms, if at all.
  • The potential issuance of a significant number of shares, which will dilute our equity holders.
  • Fluctuations in the results of our operations from period to period.
  • General economic and financial conditions.