– Following an EBITDA profit in the second quarter of 2024, the company achieved an “operating profit” in the third quarter
– Revenue growth driven by business diversification; cost-efficiency strategies incorporating AI technology proving effective
– Consistent reduction in quarterly losses since last year; business structure improved to achieve profitability in the second half of 2024
The crowdfunding platform Wadizannounced on the 23rd that it had achieved an operating profit in the third quarter.
Following its return to monthly operating profit in November of last year and its return to positive EBITDA in the second quarter of 2024, Wadizachieved a quarterly operating profit in the third quarter. This is significant as it demonstrates that the company’s efforts to improve its financial health—which have steadily reduced losses by an average of 10% per quarter since 2023—have borne fruit.
In the third quarter of 2024, revenue increased by 15% year-over-year, costs were reduced by 22%, and the company returned to profitability.
Wadizlatest financial results were driven primarily by revenue growth achieved through business diversification and cost efficiencies resulting from the application of AI technology. In addition to increased commission revenue from its flagship funding service, revenue from new business areas—such as advertising and store sales—also rose.
The number of funding projects rose by 60% year-over-year through the third quarter of this year, and revenue from funding brokerage fees increased by 15% compared to the same period last year. The advertising business, which began to grow in earnest in 2023, grew by 36% year-over-year and contributed significantly to the improvement in performance.
The integration of AI technology to strengthen the service’s operational capabilities also served as a foundation for improved profitability. By automating the AI-driven review process, the company was able to promptly address growing funding demand, while also automating monitoring functions—thereby achieving both cost savings and growth. This is significant because it provided a technological foundation capable of supporting sustained growth.
Marking its third anniversary, the Wadiz Store now hosts over 5,000 brands—a 110% increase compared to the same period last year—and its average monthly transaction volume in the third quarter rose by 35% compared to January, contributing to improved profitability. In particular, in September of this year, the store expanded its eligibility for listing to include not only existing crowdfunding creators but also emerging brands, laying the groundwork for mutual growth with its partner brands.
Meanwhile, the positive impact of crowdfunding—which combines production and sales—is generating new demand across various sectors. Recently, funding projects by publishers that produce books tailored to readers’ preferences have been gaining traction, and “dining membership” funding—which applies the high-end membership model used for hotels and golf courses to fine dining restaurants—is also generating new excitement in the food service industry.
Wadiz CEO Shin Hye-sung said, “By focusing on strengthening our foundation while continuously enhancing our app services, we have improved our financial structure to achieve profitability and posted a quarterly operating profit.” He added, “We will develop unique products that fully leverage the positive aspects of crowdfunding to create a growth model that satisfies both businesses and consumers.”
