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Dec 31, 2024
WEBTOON Entertainment Inc Q4 2024 Earnings Report
WEBTOON Entertainment Inc. reported a slight increase in revenue, but a larger net loss in Q4 2024, primarily due to higher general & administrative expenses and impairment losses.
Key Takeaways
WEBTOON Entertainment Inc. reported a 5.6% increase in total revenue to $352.8 million for Q4 2024, driven by growth in Paid Content and Advertising. However, the company experienced a net loss of $102.6 million, a significant increase from the prior year's $95.3 million loss, mainly due to higher general & administrative expenses, marketing expenses, and goodwill impairment losses. Adjusted EBITDA was a loss of $3.5 million, compared to a gain of $10.4 million in the prior year.
Total revenue increased by 5.6% to $352.8 million in Q4 2024, primarily driven by growth in Paid Content and Advertising.
Net Loss widened to $102.6 million in Q4 2024, compared to $95.3 million in Q4 2023, due to increased operating expenses and impairment losses.
Adjusted EBITDA was a loss of $3.5 million in Q4 2024, a decrease from a gain of $10.4 million in the prior year, impacted by actuarial losses on retiree benefits and currency translation.
Diluted loss per share was $0.72 in Q4 2024, compared to $0.62 in Q4 2023.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
For the first quarter of 2025, WEBTOON Entertainment Inc. expects revenue growth on a constant currency basis in the range of 1.7% to 4.8%, translating to $318 million to $328 million in revenue. Adjusted EBITDA is projected to be between $0.5 million and $5.5 million, with an Adjusted EBITDA Margin of 0.2% to 1.7%.
Positive Outlook
- Expected revenue growth on a constant currency basis (1.7% - 4.8%) for Q1 2025.
- Anticipated positive Adjusted EBITDA for Q1 2025 ($0.5-$5.5 million).
- Commitment to driving further innovation on the platform.
- Plans to introduce new features to enhance usability.
- Expansion of monetization opportunities for creators and improved content discovery.
Challenges Ahead
- Revenue growth on a constant currency basis is lower than previous periods (Q4 2024 constant currency growth was 10.4%).
- Adjusted EBITDA margin is expected to remain low (0.2% - 1.7%).
- The company continues to face exposure to weaker foreign currencies.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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