Andy Heyward, chief executive of Kartoon Studios Inc., is upbeat about the company’s future prospects.

Heyward said that 2023 was “a transformative year for the company as we laid the foundation for long-term growth and sustainable profitability.” Under the direction of Brian Parisi, the firm’s new chief financial officer, Kartoon has reduced its expenses by driving operational efficiencies, while having already identified an additional $3.5 million of annualized cost savings expected to be realized by the company beginning this year, Heyward said in a statement earlier this month. 

“Specifically, under Brian’s leadership, we have cut direct operating costs in Q4 2023 by over 70% compared to the same period last year, and sequentially by more than 54% versus the third quarter of (last year),” he added in the statement. 

In the 10-K filed with the Securities and Exchange Commission on April 9, Kartoon reported a net loss of -$77 million (-$2.29 a share) for last year, compared with a net loss of -$46 million (-$1.45) in the previous year. Revenue dropped by 29% from the prior year to $44.1 million. Kartoon Channel, the streaming service, achieved break-even income at the end of last year, Heyward continued. 

“We are proud of this accomplishment given the short time since we launched this business in 2020 and the fact that many of the leading streaming services are still operating with significant losses,” he added.