Soop (067160) Q4 2024 earnings summary

Executive summary

• Revamped domestic platform and launched a global beta, expanding beyond Korea and enhancing streamer and user engagement with new AI-driven features.

• Q4 2024 revenue reached 117.6 billion KRW, up 7% sequentially and 17% year-over-year, driven by strong platform and advertising performance.

• Annual revenue for FY 2024 was 429.1 billion KRW, a 23% increase from FY 2023.

• SOOP Global prioritized service reliability, content expansion, and business model development, securing exclusive esports rights in Southeast Asia.

• Operating profit in Q4 was 28.6 billion KRW, up 19.9% quarter-over-quarter and 8.4% year-over-year, with an operating margin of 24.3%.

Financial highlights

• Q4 2024 revenue: KRW 117.6B (+7% QoQ, +17% YoY); full-year revenue: KRW 429.1B (+23% YoY).

• Q4 ad revenue: KRW 33.9B (+29% QoQ, +13% YoY); annual ad revenue: KRW 98B (+18% YoY).

• Q4 operating profit: KRW 28.6B (+20% QoQ, +8% YoY, margin 24.3%); annual operating profit: KRW 114.3B (+27% YoY, margin 26.7%).

• Q4 net income: KRW 22.7B (-6% QoQ, +41% YoY); annual net income: KRW 99.1B (+33% YoY).

• Q4 platform service revenue was 82.4 billion KRW, stable sequentially and up 20.3% year-over-year, supported by core community expansion.

Outlook and guidance

• 2025 strategy focuses on expanding the SOOP ecosystem in Korea and accelerating global business, with priorities in content sharing, B2B partnerships, and AI technology.

• 2025 business strategy includes ecosystem expansion, global service improvement, simulcasting, local streamer acquisition, content sharing, community growth, advertisement reinforcement, branding, B2B partnerships, and Gen AI initiatives.

• Targeting sustained revenue growth and operating profit margin in the mid-20% range.

• CapEx for 2025 will rise above KRW 20B, mainly for AI and global investments, but P&L impact expected to be limited.