Wadiz Achieves Operating Profit Turnaround in Q3 "Structural Improvement Complete"

Wadiz Achieves Operating Profit Turnaround in Q3 “Structural Improvement Complete”

- Following Q2 2024 EBITDA Profitability, Q3 Achieves Quarterly Operating Profit Turnaround
- Revenue Growth Through Business Diversification, AI-Driven Cost Efficiency Strategy Delivers Results
- Steady Reduction in Quarterly Losses Since Last Year, Structural Improvement to Profitability in H2 2024

Crowdfunding platform Wadiz announced on the 23rd that it achieved operating profit in Q3.

Following the achievement of monthly operating profit in November of last year, Wadiz achieved quarterly operating profit in Q3 after EBITDA profitability in Q2 2024. This is significant as the company's efforts at structural improvement have borne fruit through consistent quarterly loss reductions averaging 10% since 2023.

Q3 2024 revenue increased 15% year-over-year while costs declined 22%, resulting in a turnaround to operating profitability.

Wadiz's performance this quarter was driven by revenue expansion through business diversification and cost efficiency improvements through AI technology application. Beyond increased fee revenue from the flagship funding service, revenues from new business areas including advertising and store sales also grew in tandem.

Funding project volume surged 60% year-over-year through Q3 of this year, with fee revenue from funding brokerage increasing 15% compared to the prior year period. The advertising business, which began its robust growth in 2023, increased 36% year-over-year, contributing significantly to performance improvement.

Incorporating AI technology to strengthen service capacity also served as a foundation for profitability improvements. AI review automation addressed growing funding demand in a timely manner while automating monitoring functions, simultaneously achieving cost savings and growth. This is significant as it provided a technological foundation to support steady growth.

Wadiz Store, marking its 3rd anniversary, saw the number of brand merchants increase 110% year-over-year to approximately 5,000, with Q3 monthly average transaction volume increasing 35% compared to January, contributing to enhanced profitability. In particular, the store expanded its merchant eligibility in September to include not only existing funding makers but also emerging brands, establishing a foundation for growth together with merchant partners.

Meanwhile, the positive function of crowdfunding, which combines production and sales, is creating new demand across various sectors. Recently, publishing projects from publishers producing publications reflecting reader demand have become popular, and ‘dining membership’ crowdfunding, which applies high-value membership models such as hotels and golf clubs to fine dining restaurants, is generating new expectations in the food service industry.

Wadiz CEO Shin Hye-sung stated, “As a result of advancing app service sophistication while focusing on building a solid foundation, we have improved our structural profitability and achieved quarterly operating profit,” and added, “We will develop differentiated products to showcase the positive functions of crowdfunding, creating a growth model that satisfies both business operators and consumers."