Soop (067160) Q3 2024 earnings summary

Executive summary

• Q3 2024 marked strong business and financial growth, surpassing annual targets for both revenue and operating income, driven by platform and advertising momentum.

• Major rebranding to SOOP and new platform launch in October aimed at aligning with global standards and enhancing community engagement.

• Focus on expanding global services, enhancing content, and investing in new business areas such as live commerce, digital marketing, and AI.

• Maintains a robust financial position, with stable cash flows, low leverage, and consistent profitability.

• GlobalSOOP beta focused on stabilization, with official launch and global expansion strategies set for year-end and 2025.

Financial highlights

• Q3 2024 revenue reached KRW 110 billion, up 3% QoQ and 25% YoY; platform revenue was KRW 82.6 billion, advertising revenue KRW 26.2 billion.

• Operating income was KRW 23.39 billion (down 28% QoQ, up 9% YoY); adjusted for one-time bad debt, operating income was KRW 30.3 billion (down 9% QoQ, up 38% YoY).

• Net income was KRW 24 billion (down 13% QoQ, up 25% YoY); adjusted net income was KRW 29.1 billion (up 5% QoQ, up 51% YoY).

• Basic EPS for 2024 Q3: ₩7,120, up from ₩6,874 in 2023 Q3.

• Cash and cash equivalents at Q3-end: ₩159.1 billion.

Outlook and guidance

• Q4 expected to see revenue rebound after Chuseok holiday dip, with positive momentum from rebranding and new streamer inflow.

• Advertising revenue anticipated to grow in Q4, supported by seasonal contracts and high seasonality.

• Plans to strengthen global expansion, diversify content, and invest in AI and new digital services.

• GlobalSOOP official launch and full P2P grid application planned for November, with substantial marketing spend to support expansion.

• Focus remains on growth over shareholder return, with domestic market share and global expansion as top priorities.