Q2 2024 Webtoon Entertainment Inc Earnings Call Transcript
Key Points
- Webtoon Entertainment Inc (WBTN) achieved double-digit revenue growth of 11.1% on a constant currency basis in the second quarter, demonstrating strong performance across all revenue streams.
- The company successfully completed its IPO, marking a significant milestone and providing access to additional capital for future growth initiatives.
- Webtoon Entertainment Inc (WBTN) boasts a vast content library with 124,000 new episodes published daily, supported by a global user base of approximately 170 million monthly active users.
- The company's IP adaptation business saw impressive growth, with revenue increasing by 24.9% on a constant currency basis, highlighting its potential as a future growth avenue.
- Webtoon Entertainment Inc (WBTN) is expanding its global footprint, with strong revenue growth in Japan and the rest of the world, driven by successful user conversion strategies and local content development.
- Webtoon Entertainment Inc (WBTN) reported a net loss of $76.6 million in the quarter, primarily due to IPO-related costs and stock-based compensation expenses.
- The company's revenue was negatively impacted by weaker foreign currencies, including the Korean won and Japanese yen, which reached historically low levels against the US dollar.
- In Korea, revenue declined by 10.8% on a constant currency basis, driven by decreases in advertising and paid content revenue.
- The delay in launching an AI-driven personalized recommendation model resulted in softer user dynamics in Korea, with a 6.6% year-over-year decrease in monthly active users.
- Webtoon Entertainment Inc (WBTN) anticipates a negative adjusted EBITDA in the third quarter, driven by increased marketing spend to support user acquisition.
Thank you for standing by. My name is John, and I will be your conference operator for today. At this time, I would like to welcome everyone to the WEBTOON Entertainment second-quarter 2024 earnings call. (Operator Instructions) I would now like to turn the call over to Lauren Hopkinson, Director of Investor Relations. Ms. Hopkinson, please go ahead.
Good afternoon, and thank you for joining us. As a reminder, our remarks today will include forward-looking statements, including those regarding our future plans, objectives, expected performance and, in particular, our guidance for the next quarter. Actual results may vary materially from today's statements. Information concerning risks, uncertainties, and other factors that could cause these results to differ is included in our SEC filings, including those stated in the Risk Factors section of our filings within the SEC. These forward-looking statements represent our outlook only as of the date of this call. We undertake no
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