NASDAQ$TOON

Kartoon Studios Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

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.

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.

Headline financials

Total Revenue

$8.71M

Previous: $10.1M-13.5%
EPS (adj)

-$0.05

Previous: -$0.44+88.6%
Capital Expenditures

-$70K

Previous: -$68K-2.9%
Free Cash Flow

-$2.13M

Previous: -$15.5M+86.3%
Net Income

-$2.06M

Previous: -$15.5M+86.7%
Operating Income

-$2.55M

Previous: -$12.6M+79.8%
Gross Profit

$2.94M

Previous: -$3.4M+186.5%
Cash & Equivalents

$4.58M

Previous: $3.89M+17.9%
Total Assets

$87.3M

Previous: $136M-35.9%

Revenue & EPS history

Kartoon Studios · Revenue · Quarterly

$8.71M

Q3 2024-13.5%vs Q3 2023
Beat estimate in 0 of 4 quarters(0%)
ActualEstimate

Revenue by segment

Kartoon Studios · $7.24M total across 4 segments · Q1 2026

  • Production Services
    $4.09M
  • Content Distribution
    $2.27M
  • Media Advisory and Advertising Services
    $799K
  • Licensing and Royalties
    $73K

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.

Tailwinds

  • 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.

Headwinds

  • 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.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q3 2024

Historical avgQ3 2024

+0.2%

Avg return

Earnings day

-3.8%

Avg return

5 days after

-0.0%

Avg return

30 days after

43%

18 / 42 earnings

Positive

+35.4%

Q4 2015

Best reaction

-18.0%

Q2 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-4.4%-9.2%
Q4 2025-4.3%+3.5%+8.5%
Q3 2025-1.9%-13.7%+8.0%
Q2 2025-1.8%-0.9%+7.1%
Q1 2025-3.1%+2.1%-8.9%
Q4 2024+1.5%+0.0%-4.3%
Q3 2024-6.7%-7.2%-27.2%
Q2 2024-0.2%-3.1%-8.1%
Q1 2024+0.9%-1.9%-2.8%
Q4 2023+4.0%+10.1%-27.5%
Q3 2023+4.8%+13.5%+46.2%
Q2 2023-8.0%-28.9%-24.4%
Q1 2023+13.0%+2.8%+29.7%
Q4 2022+6.6%+0.4%-6.2%
Q3 2022-3.6%-7.6%-19.4%
Q2 2022-18.0%-27.1%-33.5%
Q1 2022+23.6%+15.6%+25.2%
Q4 2021-10.0%-17.7%-34.2%
Q3 2021+0.7%-4.4%-9.6%
Q2 2021-3.9%-7.8%-5.2%
Q1 2021+2.6%+4.6%+25.0%
Q4 2020-9.2%-15.0%-14.5%
Q3 2020-4.1%-1.6%+38.5%
Q2 2020-1.9%-12.0%-35.4%
Q1 2020-8.0%-7.3%+106.7%
Q4 2019-6.0%-22.3%-6.0%
Q3 2019-4.6%-14.5%-54.2%
Q2 2019+0.5%-22.3%+1.1%
Q1 2019-2.3%+0.7%+1.3%
Q4 2018+1.0%-2.0%-1.0%
Q3 2018+3.8%+14.4%+15.4%
Q2 2018-0.8%-2.7%-14.9%
Q1 2018-4.3%-3.9%+7.9%
Q4 2017+0.4%+1.8%-4.3%
Q3 2017+0.0%-3.1%-15.0%
Q2 2017+4.9%+9.8%+19.7%
Q1 2017+0.9%-5.0%+4.2%
Q4 2016+6.5%+9.1%+29.0%
Q3 2016+0.0%+1.7%-17.9%
Q2 2016-1.0%+0.0%-0.5%
Q1 2016+3.0%
Q4 2015+35.4%
Q2 2011
Q2 2010

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