Kartoon Studios reported its financial results for the quarter ended September 30, 2024, on November 14, 2024, achieving $8.7 million in revenue. This marks the second consecutive quarter of sequential revenue growth, with a 4% increase from Q2 2024 and a 38% growth for Q2 2024 from Q1 2024.
The company demonstrated significant improvements in operational efficiency, with direct operating costs reduced by 57% year-over-year in Q3 2024 and 54% for the first nine months of 2024. Loss from operations decreased by 80% for the three-month period compared to 2023, after adjusting for one-time impairments.
General and administrative expenses also saw substantial reductions, falling 40% year-over-year in Q3 and 25% compared to Q2 2024. Total operating expenses were down 14% from Q2 2024, 50% from Q3 2023, and 53% year-to-date compared to 2023, indicating disciplined cost control.
Mainframe Studios, the largest revenue-driving unit, has 145 episodes in production with a contracted pipeline through 2025 and 2026. Kartoon Channel! has achieved profitability and expanded its international footprint by launching with Samsung Plus across India, UK, and Italy, reaching 1.5 billion potential viewers, and adding Indonesia's Link Net for access to nearly 300 million potential viewers.
The company also unveiled 'Stan Lee’s The Excelsiors' as a graphic novel with concurrent plans for TV and film adaptations and partnered with LiveOne for original music for its upcoming 'Winnie-the-Pooh' films and series. As of September 30, 2024, Kartoon Studios reported current assets of $37.2 million, working capital of $3.5 million, total stockholders’ equity of $42.8 million, and no long-term debt.
Management expressed optimism that current initiatives will guide Kartoon Studios toward company-wide profitability in 2025, supported by a strong financial foundation and continuing cost reduction trends.
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