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Sep 30, 2024
Kartoon Studios Q3 2024 Earnings Report
Achieved second consecutive quarter of sequential revenue growth and a 57% year-over-year reduction in direct operating costs, with an 80% year-over-year reduction in losses.
Key Takeaways
Kartoon Studios reported a 4% increase in revenue for Q3 2024 compared to Q2 2024 and a 57% reduction in direct operating costs year-over-year. The company's loss from operations decreased by 80% compared to the same period in 2023. Kartoon Studios is focusing on sustained growth and profitability in 2025.
Revenue for the nine months ending September 30, 2024, reached $23.2 million, reflecting a 4% increase in revenue for Q3 2024 from Q2 2024.
Direct operating costs reduced by 57% year-over-year in Q3 2024.
Loss from operations decreased by 80% for the three-month period compared to 2023.
Kartoon Channel! broadened its international footprint by launching first with Samsung Plus across India, UK, and Italy, with a footprint of 1.5 billion potential viewers.
Forward Guidance
Kartoon Studios is optimistic that current initiatives will guide the company toward profitability in 2025. They believe they are now operating at a sustainable expense level for the foreseeable future, and revenue will ramp up with Stan Lee Universe and A.A.Milne's Winnie-The-Pooh coming to market.
Positive Outlook
- Poised for continued revenue growth.
- Reaching sustained profitability in 2025 with rebound in animation production pipeline and continuing profit in children’s channel system.
- Mainframe is positioned for continuing growth with series orders for over 145 episodes and a contracted pipeline secured through 2025 and 2026.
- Balance sheet remains strong, with no long-term debt.
- Well-positioned to capitalize on future growth opportunities and deliver long-term value for shareholders.
Challenges Ahead
- Ability to sustain growth and profitability in 2025.
- Ability to expand its brand globally in 2025 and beyond.
- Ability of the Company to achieve profitability in 2025.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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