WildBrain (WILD) Q4 2024 earnings summary

Executive summary

• Fiscal 2024 was transformational amid industry slowdown, with a focus on adapting to evolving consumer content engagement and platform shifts.

• Strategic emphasis was placed on key brands (Peanuts, Strawberry Shortcake, Teletubbies, Yo Gabba Gabba!) and premium projects for SVOD partners.

• Expanded partnerships and licensing deals, including with Supercell, Spin Master, and new FAST/AVOD initiatives, drove engagement and monetization.

• Licensing growth and digital engagement offset industry-wide production slowdowns from Hollywood strikes.

• Net loss for the year was CAD 106 million, including a significant non-cash impairment charge on the television business.

Financial highlights

• Fiscal 2024 consolidated revenue was CAD 462 million, down 13% year-over-year, mainly due to reduced studio output.

• Q4 revenue was CAD 130 million, up 4% year-over-year, led by YouTube, AVOD, FAST, and licensing growth.

• Adjusted EBITDA for fiscal 2024 was CAD 88 million, down 11%; Q4 adjusted EBITDA was CAD 24 million, up 25% year-over-year.

• Gross margins improved by over 250 basis points year-over-year to 48% for FY2024.

• SG&A expenses fell 8% year-over-year to CAD 102 million, reflecting cost streamlining.

Outlook and guidance

• Fiscal 2025 revenue growth expected at 10%-15%, with adjusted EBITDA growth of 5%-10%.

• Return to growth anticipated in content creation, with more pronounced profit acceleration in fiscal 2026 as new projects mature.

• Continued growth projected in FAST, AVOD, and licensing, especially for core brands.

• SG&A expected to rise in fiscal 2025 due to non-repeating 2024 benefits and targeted investments.

• Leverage expected to remain elevated through fiscal 2025 as content production recovers.