NASDAQ$WBTN
WEBTOON Entertainment Inc · Q4 2024 earnings
Q4 2024 earnings · · After market close · Investor relations
Briefing
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.
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.
Headline financials
Revenue & EPS history
WEBTOON Entertainment Inc · Revenue · Quarterly
$353M
Revenue by segment
WEBTOON Entertainment Inc · $327M total across 3 segments · Q1 2024
- Paid Content$267M—81.7%
- Advertising$37M—11.3%
- IP Adaptations$22.9M—7.0%
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%.
Tailwinds
- 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.
Headwinds
- 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.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 7 quarterly earnings reports · overlaid with Q4 2024
-12.5%
Avg return
Earnings day
-13.8%
Avg return
5 days after
-13.6%
Avg return
30 days after
22%
2 / 9 earnings
Positive
+3.5%
Q2 2023
Best reaction
-36.9%
Q2 2024
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | +0.2% | -8.7% | — | |
| Q4 2025 | -9.3% | -16.1% | -15.4% | |
| Q3 2025 | -25.1% | -25.9% | -25.8% | |
| Q1 2025 | -18.3% | -11.2% | -17.1% | |
| Q4 2024 | -10.5% | -11.3% | -19.8% | |
| Q3 2023 | -10.3% | -8.3% | +13.1% | |
| Q3 2024 | -5.4% | -3.3% | +13.3% | |
| Q2 2023 | +3.5% | -4.5% | -17.1% | |
| Q2 2024 | -36.9% | -34.7% | -39.8% | |
| Q1 2024 | — | — | — | |
| Q4 2023 | — | — | — | |
| Q1 2023 | — | — | — | |
| Q4 2022 | — | — | — | |
| Q3 2022 | — | — | — | |
| Q2 2022 | — | — | — | |
| Q1 2022 | — | — | — |
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