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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.
Kartoon Studios
Kartoon Studios
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.
- Successful release of the Company’s Winnie-the-Pooh films and series.
- Successful production and release of the Company’s animated Christmas move set to premiere December 24, 2025.