- Turnaround completed with positive operating cash flow in 2024
- EBITDA up 96% in 2024... Profitability on track to improve
- AI adoption transforms productivity... New revenue streams, including ad revenue and branded business, grow
Wadiz has significantly improved its operating cash flow for 2024, raising expectations of achieving full-year profitability this year.
Wadiz today announced that it has returned to profitability-driven growth, achieving operating profitability in Q4 2024 and a 96% improvement in EBITDA.
Wadiz's 2024 revenue increased by 9% year-over-year to KRW 43.2 billion, and its operating loss decreased by 58% year-over-year to KRW 7.2 billion.
In particular, cash flow from operating activities improved significantly. Cash flow from operating activities, which excludes non-cash expenses such as amortization and impairment losses, improved significantly, with a net inflow of KRW 2 billion last year, up KRW 13.9 billion year-on-year.
The improved performance of Wadiz in 2024 can be attributed to the optimization of its business portfolio, cost reductions, and the transformation of productivity achieved through the adoption of generative AI for task automation.
Based on the fee revenue from its flagship service, funding, the company's revenue grew evenly in new business areas such as advertising business and direct sales revenue. In particular, the advertising business grew 40% year-on-year, contributing to the expansion of revenue. This was due to the steady increase in the use of advertising services that support efficient marketing, such as Wadiz Ad Center and Biz Center, which helped boost sales growth among makers.
Store direct sales revenue also grew 17% year-over-year, establishing a new revenue stream. This year, the share of direct sales revenue is expected to increase further as the sales performance of the Wadiz Edition, which develops products based on customer feedback, becomes more visible.
Wadiz is now preparing to take a leap beyond being a leading domestic company to a global platform. It plans to launch a K-funded export service targeting the Americas in May with the goal of launching a global service.
The company aims to become the leading crowdfunding platform in Asia by discovering promising brands in East Asia, especially Japan and China, and building a lineup of innovative Asian products.
"In 2024, we succeeded in improving our balance sheet to a profitable structure through cost reduction and business innovation, and we are ready to accelerate our growth," said Shin Hye-sung, CEO of Wadiz. "We will make 2025 a leap year to enter overseas markets with domestic small and medium-sized enterprises and start-up brands to showcase the competitiveness of K-funding."
Meanwhile, to accelerate its growth momentum, Wadiz is in the process of a rights issue, which is expected to be finalized in the first half of 2025. After achieving annualized profitability in 2025, the company plans to go public in 2026.
