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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.
WEBTOON Entertainment Inc
WEBTOON Entertainment Inc
WEBTOON Entertainment Inc Revenue by Segment
WEBTOON Entertainment Inc Revenue by Geographic Location
Revenue by Segment
Paid Content Revenue
CapyFin.comAdvertising Revenue
CapyFin.comIP Adaptations Revenue
CapyFin.comRevenue by Geographic Location
Korea Revenue
CapyFin.comJapan Revenue
CapyFin.comRest of World Revenue
CapyFin.com 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.
- Potential for continued higher general & administrative expenses as a public company.
- Uncertainty regarding the impact of actuarial losses on retiree benefits.