Shift Up 4Q24 & FY2024 Financial Results

Key insights

6 takeaways

01
Shift Up achieved 219.9 billion KRW in annual revenue for 2024, a 30.4% year-over-year increase, with an annual operating profit of 148.6 billion KRW, up 33.8%.See it on page 8
02
The company maintained a high 71% operating profit margin in Q4 2024, bolstered by disciplined cost management that saw labor costs drop 49% quarter-over-quarter.See it on page 8
03
Growth is primarily driven by the mobile title Goddess of Victory: NIKKE and the successful April 2024 launch of the AAA console title Stellar Blade.See it on page 7
04
Management plans to release a PC version of Stellar Blade, anticipating it will outperform the console version due to the larger addressable market.See it on page 13
05
Strategic expansion efforts include preparing for the market entry of Goddess of Victory: NIKKE into China.See it on page 7
06
Shift Up is scaling its workforce to reach 400–420 employees by the end of 2025 to support the development of its new project, Project Witches, which is targeted for release after 2027.See it on page 14

Summary

Shift Up’s financial results for the fourth quarter and full fiscal year 2024 demonstrate significant growth, driven by the sustained performance of its flagship intellectual properties. The company reported annual revenue of 219.9 billion KRW, representing a 30.4% increase year-over-year, and an annual operating profit of 148.6 billion KRW, a 33.8% increase. For the fourth quarter specifically, revenue reached 59.3 billion KRW with an operating profit of 42.1 billion KRW, maintaining a robust operating profit margin of 71%.

The primary revenue driver remains the mobile title Goddess of Victory: NIKKE, which successfully navigated a competitive subculture market through consistent content updates and collaborations, including a notable second-anniversary event. Simultaneously, the console title Stellar Blade established itself as a global AAA intellectual property following its April 2024 launch. The company attributes its strong bottom-line performance to these titles, alongside disciplined cost management, noting that fourth-quarter labor costs decreased by 49% quarter-over-quarter due to the absence of incentive payments.

Looking ahead, the company is focused on long-term growth through the expansion of its existing portfolio and the development of new projects. Strategic priorities include the upcoming market entry of Goddess of Victory: NIKKE into China and the development of a PC version of Stellar Blade, which management anticipates will outperform the console version due to the larger PC market share. Additionally, the company is actively scaling its workforce, with plans to reach 400 to 420 employees by the end of 2025 to support the development of its new title, Project Witches, which is currently slated for a post-2027 release.