Kakao Pay (377300) Q2 2024 earnings summary

Executive summary

• Q2 2024 TPV rose 20% year-over-year to KRW 41.1 trillion, with revenue TPV up 22% to KRW 12.1 trillion and revenue up 25% to KRW 185.5 billion; net profit reached KRW 0.6 billion, with EBITDA turning positive at KRW 1.8 billion, marking two consecutive quarters of profitability.

• MAU reached 24.65 million, with 101 transactions per user; core business transactions per user rose 11% year-over-year.

• Operates as a leading fintech platform, offering payment, financial, and insurance services with a strong user base and broad service coverage.

• Financial income contributed KRW 15.8 billion, supporting profitability improvements.

• Continues to expand service offerings, including new insurance products, enhanced investment services, and personalized financial solutions.

Financial highlights

• Q2 2024 revenue was KRW 185.5 billion, up 24.6% year-over-year and 5.2% sequentially; net income was KRW 0.6 billion, marking two consecutive quarters in the black, and EBITDA turned positive at KRW 1.8 billion.

• Digital payment TPV increased 23% year-over-year, and digital finance TPV rose 18%; stock trading TPV surged 74% year-over-year.

• Digital finance revenue exceeded KRW 50 billion for the first time, up 59.6% year-over-year, now 30% of total revenue.

• Operating expense increased 19.4% year-over-year to KRW 192.8 billion, but revenue growth outpaced expense growth; operating margin improved to -3.9% from -8.5% year-over-year.

• Standalone net profit was KRW 19.3 billion, reducing accumulated deficit to about KRW 5 billion.

Outlook and guidance

• Plans to improve mid- to long-term profit structure through cost efficiency and sustained top-line growth.

• Aims to increase non-payment business, including financial services, to over 50% of revenue long-term.

• Insurance business targets 10x growth in three years, with share of insurance in financial services potentially rising to 30%.

• Offline payment users expected to surpass 5 million in 2024, driven by Samsung Pay and Zero Pay integration.

• MyData subscribers projected to reach 20 million in 1H25, supporting hyper-personalized financial services.