Wadiz Turns Operating Profit Positive in Q3, "Structural Improvement"

Funding platform Wadiz announced on the 23rd that it achieved operating profit in the third quarter of this year. Wadiz had previously achieved monthly operating profit in November last year and EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) profit in the second quarter of this year. This third-quarter operating profit is the result of continuous efforts to improve its structure by reducing losses by an average of 10% per quarter since last year, Wadiz explained.

Wadiz stated that third-quarter sales increased by 15% year-on-year, while expenses decreased by 22%. This performance was largely driven by revenue expansion through business diversification and cost efficiency through the application of artificial intelligence (AI) technology. Not only did the commission revenue from its flagship funding service increase, but sales in new business areas such as advertising revenue and store sales also rose simultaneously.

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The number of funding projects rose by 60% year-on-year through the third quarter, with revenue from funding brokerage commissions increasing by 15% compared to the same period last year. The advertising business, which began growing significantly in 2023, increased by 36% year-on-year, greatly contributing to improved performance.

Integrating AI technology to strengthen service capabilities also laid the foundation for profitability improvement. By automating AI-based screening, Wadiz timely addressed the increasing funding demand and automated monitoring functions, achieving both cost reduction and growth simultaneously.

The number of brands registered in the Wadiz Store increased by 110% year-on-year to about 5,000, and the average monthly transaction amount in the third quarter rose by 35% compared to January, playing a role in strengthening profitability.

Shin Hye-sung, CEO of Wadiz, said, “As a result of focusing on enhancing the app service while solidifying our fundamentals, we improved our structure to a profitable one and achieved quarterly operating profit.” He added, “We will develop differentiated products to ensure the positive functions of crowdfunding are well manifested and create a growth model that satisfies both businesses and consumers.”

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