Kakao Pay (377300) Q3 2024 earnings summary

Executive summary

• Q3 2024 TPV rose 17% year-over-year to KRW 42.2 trillion, with revenue up 17% to KRW 186.2 billion and a net loss of KRW 27.5 billion due to a KRW 31.2 billion bad debt expense from TMON and WeMakePrice defaults.

• MAU reached 23.96 million, with a 10% year-over-year increase in transactions per user for core services, and a 15% increase in merchant base to 1.1 million.

• Operates as a leading fintech platform, offering payment, financial, and insurance services with a strong focus on digital innovation and user experience.

• Expands service portfolio through continuous product launches, strategic partnerships, and technology investments.

• Maintains a dominant position in Korea's mobile financial market.

Financial highlights

• Q3 2024 consolidated revenue: ₩548.1B, down from ₩615.4B in Q3 2023; standalone revenue was KRW 156.1 billion, up 9.9% year-over-year.

• Q3 2024 consolidated net loss: ₩26.7B, compared to ₩22.9B net loss in Q3 2023; standalone net loss was KRW 9.5 billion.

• EBITDA was KRW 1.7 billion, marking two consecutive quarters of positive EBITDA.

• Operating expense rose 15% year-over-year to KRW 193.7 billion, with marketing expense up 18.4% and labor cost up 10.3%.

• Total assets at Q3 2024: ₩4.19T; total equity: ₩1.91T.

Outlook and guidance

• Q4 expected to see quarter-over-quarter growth, driven by seasonal consumer sentiment and new product launches in insurance.

• Double-digit growth in payment business projected for 2025, though online payment growth rate may slow slightly.

• Focuses on expanding insurance and investment services, leveraging data-driven personalized offerings.

• Plans to enhance user engagement and cross-service utilization, targeting further growth in financial product adoption.

• Continues to invest in technology, security, and platform scalability to support future service expansion.