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Webtoon Entertainment Inc.(WBTN) - 2024 Q3 - Quarterly Report
2024-11-12 21:15
User Metrics - As of September 30, 2024, global Monthly Active Users (MAU) reached approximately 170 million, with contributions of 15.0% from Korea, 13.5% from Japan, and 71.5% from the Rest of World[135]. - Monthly Paying Users (MPU) reached 7.9 million with a paying ratio of 4.7%, showing slight declines compared to the previous year, but an upward trend in sequential quarters[139]. - The decline in Rest of World MAU to 119.3 million was primarily due to a decrease in web users, with a significant impact from a government ban on global content sites in one country[137]. - The company focuses on converting web users to app users, as app users are more engaged and monetization is more effective[135]. - The company tracks performance by geographic regions, categorizing users into Korea, Japan, and Rest of World, to better understand engagement trends[129]. Revenue Performance - Revenue for the three months ended September 30, 2024, was $347,915 thousand, representing a 9.5% increase from $317,764 thousand in 2023[161]. - Paid Content revenue increased by 8.9% to $285,228 thousand, while Advertising revenue grew by 20.8% to $43,384 thousand[161]. - Revenue for the nine months ended September 30, 2024, increased by $46.9 million, or 4.9%, to $995.6 million compared to $948.7 million in 2023, driven by strong growth in Paid Content and Advertising revenue[169]. - Paid Content revenue rose by $37.1 million, or 4.8%, primarily due to strong growth in Japan, while Advertising revenue increased by $12.4 million, or 11.5%[169]. - Revenue on a constant currency basis for the three months ended September 30, 2024, was $360,357,000, a 13.5% increase from $317,415,000 in 2023[194]. User Revenue Metrics - Average Revenue per Paying User (ARPPU) increased to $12.1, reflecting an 11.0% growth compared to the same quarter of 2023, driven by strategic shifts from web to app usage[143]. - In Korea, ARPPU increased to $7.9, a 3.9% rise year-over-year, attributed to the rollout of AI-driven personalized recommendations[144]. - In Japan, ARPPU reached $23.1, a 4.5% increase year-over-year, benefiting from seasonal comic consumption trends[144]. - In the Rest of World, ARPPU increased to $6.7, an 11.7% growth year-over-year, driven by increased reader habituation to paying for content[145]. Expenses and Costs - Cost of revenue rose by 4.4% to $256,534 thousand, with a total cost of revenue of $738,834 thousand for the nine months ended September 30, 2024[162]. - General and administrative expenses surged by 45.8% to $66,747 thousand, driven by increases in stock compensation and consulting fees[163]. - Marketing expenses decreased by $19.8 million, or 20.8%, to $75.6 million, reflecting increased efficiencies in marketing spend[172]. - General and administrative expenses surged by $98.5 million, or 63.3%, to $254.1 million, driven by stock compensation and a one-time bonus related to the IPO[173]. - Cost of revenue increased by $9.2 million, or 1.3%, to $738.8 million, attributed to higher commissions and fees paid to creators[171]. Income and Loss - Operating loss for the three months ended September 30, 2024, was $8,085 thousand, compared to a loss of $6,747 thousand in 2023, marking a 19.8% increase[160]. - Net income for the three months ended September 30, 2024, was $19,986 thousand, a significant recovery from a loss of $11,451 thousand in 2023[160]. - The company experienced a 128.3% increase in operating loss for the nine months ended September 30, 2024, totaling $72,993 thousand compared to $31,976 thousand in 2023[160]. - For the nine months ended September 30, 2024, the company reported a net loss of $50.3 million, adjusted for non-cash items of $76.9 million[201]. - The company reported a net income margin of 5.7% for the three months ended September 30, 2024, compared to a negative margin of -3.6% in 2023[187]. Other Financial Metrics - Interest income skyrocketed by 613.3% to $6,512 thousand, primarily due to earnings from IPO proceeds[164]. - Other income increased significantly by 1736.3% to $11,798 thousand, attributed to gains from foreign currency transactions[168]. - Income tax benefit rose by 266.8% to $9,899 thousand, mainly due to changes in valuation allowance following the LDF-eBIJ Merger[168]. - Adjusted EBITDA for the three months ended September 30, 2024, was $28,903,000, up from $3,164,000 in the same period of 2023[187]. - The company experienced a foreign currency exchange impact of $12,442,000 for the three months ended September 30, 2024[194]. Cash Flow and Capital - As of September 30, 2024, the company had $585.5 million in cash and cash equivalents, primarily invested in short-term, highly liquid investments[198]. - For the nine months ended September 30, 2024, net cash provided by operating activities was $26.5 million, compared to $7.5 million for the same period in 2023[200][202]. - Net cash used in investing activities for the nine months ended September 30, 2024, was $11.2 million, significantly lower than $45.1 million in the same period of 2023[203][204]. - Net cash provided by financing activities for the nine months ended September 30, 2024, was $353.7 million, primarily from the IPO proceeds of $293.0 million[205]. Legal and Compliance - A class action lawsuit has been filed against the company related to its IPO, alleging that the registration statement was materially false and misleading[224]. - The company is focused on remediating material weaknesses in internal control over financial reporting, including enhancing financial reporting functions and IT controls[219][221]. - The company anticipates future capital requirements will depend on growth rate, sales and marketing activities, and other business factors[198]. - The company has not entered into derivative or hedging transactions but may consider them in the future if foreign currency exposure increases[212].
Webtoon Entertainment Inc.(WBTN) - 2024 Q3 - Quarterly Results
2024-11-07 21:21
Financial Performance - Total revenue for Q3 2024 was $347.9 million, representing a year-over-year growth of 9.5%[2] - Revenue on a constant currency basis was $360.4 million, reflecting a growth of 13.5% driven by Paid Content, Advertising, and IP Adaptations[2] - Net income for the quarter was $20 million, attributed to improved gross profit and an income tax benefit[2] - Adjusted EBITDA reached $28.9 million, with an Adjusted EBITDA Margin of 8.3%, both showing increases from the previous year[2] - Diluted EPS improved to $0.15 from a loss of $0.10 in the prior year, while Adjusted EPS rose to $0.22 from $0.03[2] - Total revenue for the three months ended September 30, 2024, was $347,915, an increase of 9.4% compared to $317,764 for the same period in 2023[21] - Net income for the three months ended September 30, 2024, was $19,986, compared to a net loss of $11,451 for the same period in 2023[21] - Net income for the nine months ended September 30, 2024, was a loss of $50,349 thousand, compared to a loss of $49,493 thousand for the same period in 2023[22] - Total revenue for the nine months ended September 30, 2024, was $995,631 thousand, reflecting a 4.9% increase from $948,684 thousand in 2023[25] - Revenue on a Constant Currency Basis increased by 13.9% to $1,066,123 thousand for the nine months ended September 30, 2024, compared to $936,261 thousand in 2023[25] Future Projections - The company anticipates Q4 2024 revenue growth on a constant currency basis between 10.3% and 13.3%, estimating revenue between $375 million and $385 million[4] - Adjusted EBITDA for Q4 2024 is expected to be in the range of $9 million to $14 million, with an Adjusted EBITDA Margin of 2.4% to 3.6%[4] Assets and Liabilities - Total assets as of September 30, 2024, were $2,125,741, an increase of 19.6% from $1,776,605 as of December 31, 2023[19] - Total current assets increased to $881,404 as of September 30, 2024, from $492,827 as of December 31, 2023, representing an increase of 78.7%[19] - Total liabilities decreased to $415,032 as of September 30, 2024, from $429,129 as of December 31, 2023, a reduction of 3.3%[19] - Total stockholders' equity attributable to WEBTOON Entertainment Inc. increased to $1,614,714 as of September 30, 2024, from $1,249,141 as of December 31, 2023, an increase of 29.2%[19] Cash Flow - Net cash provided by operating activities was $26,539 thousand for the nine months ended September 30, 2024, significantly up from $7,519 thousand in 2023[22] - Net cash used in investing activities decreased to $11,230 thousand for the nine months ended September 30, 2024, from $45,071 thousand in 2023[22] - Net cash provided by financing activities was $353,668 thousand for the nine months ended September 30, 2024, compared to a net cash used of $6,399 thousand in 2023[22] - Cash and cash equivalents at the end of the year increased to $585,516 thousand, up from $224,244 thousand in 2023[22] - Cash and cash equivalents increased to $585,516 as of September 30, 2024, from $231,745 as of December 31, 2023, a significant increase of 152.5%[19] Expenses - Marketing expenses for the three months ended September 30, 2024, were $32,719, slightly down from $33,066 in the same period of 2023[21] - Stock-based compensation increased significantly to $72,114 thousand for the nine months ended September 30, 2024, compared to $4,331 thousand in 2023[22] - Stock-based compensation expense increased to $12,262,000 for the three months ended September 30, 2024, from $1,232,000 in the same period of 2023[28] - The company incurred IPO-related, legal, restructuring, and advisory costs of $2,925,000 for the three months ended September 30, 2024[28] User Engagement and Market Strategy - WEBTOON has approximately 170 million monthly active users, indicating a strong user engagement[8] - The company is focused on expanding its creator community and enhancing product offerings to drive future growth[3] - WEBTOON's adaptations are available on major platforms like Netflix and Prime Video, showcasing its market expansion strategy[7]
WEBTOON Entertainment Inc. Reports Third Quarter 2024 Financial Results
GlobeNewswire News Room· 2024-11-07 21:15
Core Insights - WEBTOON Entertainment Inc. reported a total revenue of $347.9 million for Q3 2024, reflecting a year-over-year growth of 9.5%, with a constant currency growth of 13.5% to $360.4 million [2][3] - The company achieved a net income of $20 million and an adjusted EBITDA of $28.9 million, indicating significant year-over-year increases [2][3] - The CEO expressed confidence in future growth opportunities, supported by a strong creator community and a robust pipeline of entertainment projects [3] Financial Performance - Total revenue for Q3 2024 was $347.9 million, up 9.5% from $317.8 million in Q3 2023, driven by growth in Paid Content and Advertising [2][3] - Revenue on a constant currency basis was $360.4 million, representing a 13.5% increase, with contributions from all revenue streams and regions [2][3] - Net income was $20 million, attributed to improved gross profit, increased interest income, and an income tax benefit [2][3] - Adjusted EBITDA reached $28.9 million, with an adjusted EBITDA margin of 8.3%, both showing increases from the previous year [2][3] Earnings Per Share - Diluted EPS for Q3 2024 was $0.15, a recovery from a loss of $0.10 per share in the prior year [2] - Adjusted EPS increased to $0.22 from $0.03 in the previous year, reflecting improved profitability [2] Fourth Quarter Outlook - For Q4 2024, the company anticipates revenue growth on a constant currency basis between 10.3% and 13.3%, translating to revenue expectations of $375 million to $385 million [4] - Adjusted EBITDA is projected to be in the range of $9 million to $14 million, with an adjusted EBITDA margin of 2.4% to 3.6% [4] Company Overview - WEBTOON is recognized as a leading global entertainment company, specializing in mobile webcomics and storytelling platforms [6][7] - The company boasts approximately 170 million monthly active users and has partnerships with major content platforms like Netflix and Prime Video [8]
WBTN INVESTOR ALERT: Bronstein, Gewirtz & Grossman LLC Announces that WEBTOON Entertainment, Inc. Investors with Substantial Losses Have Opportunity to Lead Class Action Lawsuit!
GlobeNewswire News Room· 2024-11-05 21:00
Core Viewpoint - A class action lawsuit has been filed against WEBTOON Entertainment, Inc. for alleged violations of federal securities laws related to its IPO on June 27, 2024 [1][2]. Group 1: Lawsuit Details - The lawsuit seeks to recover damages for investors who purchased Webtoon securities during the IPO [2]. - The Complaint alleges that the Registration Statement contained materially false and misleading statements and failed to disclose adverse facts about the Company's business and operations [3]. - Specific allegations include a deceleration in advertising revenue growth, deceleration in IP adaptations revenue, and exposure to weaker foreign currencies that offset revenue growth [3]. Group 2: Next Steps for Investors - Investors who suffered losses in Webtoon have until November 5, 2024, to request to be appointed as lead plaintiff in the case [4]. - The law firm representing the investors operates on a contingency fee basis, meaning they will only collect fees if the case is successful [5]. Group 3: Law Firm Background - Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm specializing in securities fraud class actions and has recovered hundreds of millions of dollars for investors [6].
Levi & Korsinsky Reminds Shareholders of a Lead Plaintiff Deadline of November 4, 2024 in WEBTOON Entertainment Inc. Lawsuit – WBTN
GlobeNewswire News Room· 2024-11-04 18:56
Core Viewpoint - WEBTOON Entertainment Inc. is facing a class action securities lawsuit due to alleged securities fraud that has adversely affected its investors [1][2]. Group 1: Lawsuit Details - The lawsuit aims to recover losses for investors who purchased WEBTOON common stock during its June 2024 initial public offering [2]. - The complaint alleges that the company made false statements and concealed critical information regarding its financial performance, including a deceleration in advertising revenue growth and IP adaptations revenue [3]. - The lawsuit also claims that the company faced exposure to weaker foreign currencies, which negatively impacted revenue growth, leading to misleading positive statements about its business prospects [3]. Group 2: Next Steps for Investors - Investors who suffered losses in WEBTOON Entertainment Inc. have until November 4, 2024, to request to be appointed as lead plaintiff in the lawsuit [4]. - Participation in the lawsuit does not require any out-of-pocket costs or fees for class members [4]. Group 3: Legal Representation - Levi & Korsinsky, LLP has a strong track record in securities litigation, having secured hundreds of millions of dollars for shareholders over the past 20 years [5]. - The firm is recognized as one of the top securities litigation firms in the United States, ranking in ISS Securities Class Action Services' Top 50 Report for seven consecutive years [5].
WBTN DEADLINE TODAY: ROSEN, TOP RANKED GLOBAL COUNSEL, Encourages WEBTOON Entertainment Inc. Investors to Secure Counsel Before Important November 4 Deadline in Securities Class Action – WBTN
GlobeNewswire News Room· 2024-11-04 17:32
Core Viewpoint - Rosen Law Firm is reminding purchasers of WEBTOON Entertainment Inc. common stock about the lead plaintiff deadline for a class action lawsuit related to the company's IPO in June 2024 [1] Group 1: Class Action Details - Investors who purchased WEBTOON common stock may be entitled to compensation without any out-of-pocket fees through a contingency fee arrangement [2] - A class action lawsuit has already been filed, and interested parties must move the Court to serve as lead plaintiff by November 4, 2024 [3] - The lawsuit claims that WEBTOON's Registration Statement contained materially false and misleading statements regarding its business operations and prospects [5] Group 2: Allegations Against WEBTOON - The lawsuit alleges that WEBTOON experienced a deceleration in advertising revenue growth and intellectual property adaptations revenue [5] - It is claimed that WEBTOON faced exposure to weaker foreign currencies, which offset revenue growth [5] - The positive statements made by the defendants about WEBTOON's business were deemed materially misleading and lacked a reasonable basis [5] Group 3: Rosen Law Firm's Credentials - Rosen Law Firm has a strong track record in securities class actions, having achieved the largest securities class action settlement against a Chinese company at the time [4] - The firm was ranked No. 1 by ISS Securities Class Action Services for the number of securities class action settlements in 2017 and has consistently ranked in the top 4 since 2013 [4] - In 2019, the firm secured over $438 million for investors, showcasing its capability in recovering significant amounts for clients [4]
WBTN Investors Have Opportunity to Lead WEBTOON Entertainment Inc. Securities Fraud Lawsuit with the Schall Law Firm
Prnewswire· 2024-11-04 14:27
LOS ANGELES, Nov. 4, 2024 /PRNewswire/ -- The Schall Law Firm, a national shareholder rights litigation firm, announces the filing of a class action lawsuit against WEBTOON Entertainment Inc. ("Webtoon" or "the Company") (NASDAQ: WBTN) for violations of the federal securities laws.Investors who purchased the Company's securities pursuant and/or traceable to the Company's Offering Documents in connection with its initial public offering ("IPO") conducted on or about June 27, 2024, are encouraged to contact t ...
Contact The Gross Law Firm by November 4, 2024 Deadline to Join Class Action Against WEBTOON Entertainment Inc.(WBTN)
Prnewswire· 2024-11-04 10:45
Core Viewpoint - The Gross Law Firm has issued a notice to shareholders of WEBTOON Entertainment Inc. regarding a class action lawsuit related to misleading statements made by the company during its initial public offering in June 2024 [1][2]. Group 1: Allegations - The lawsuit alleges that WEBTOON Entertainment Inc. made materially false and misleading statements, failing to disclose a deceleration in advertising revenue growth [2]. - The company also allegedly did not disclose a deceleration in revenue from IP adaptations and exposure to weaker foreign currencies, which negatively impacted revenue growth [2]. - As a result of these issues, the positive statements made by the defendants about the company's business and prospects were deemed materially misleading [2]. Group 2: Class Action Details - The class period for the lawsuit is tied to the shares purchased during the registration statement and prospectus issued in connection with the June 2024 IPO [1]. - Shareholders are encouraged to register for the class action by the deadline of November 4, 2024, to potentially be appointed as lead plaintiffs [3]. - Once registered, shareholders will receive updates through a portfolio monitoring software regarding the status of the case [3]. Group 3: Law Firm Background - The Gross Law Firm is a nationally recognized class action law firm dedicated to protecting the rights of investors who have suffered losses due to deceit and illegal business practices [4]. - The firm aims to ensure that companies adhere to responsible business practices and seeks recovery for investors affected by misleading statements that inflated stock prices [4].
Webtoon Entertainment Inc.(WBTN) - 2024 Q2 - Quarterly Report
2024-08-12 20:30
User Metrics - As of June 30, 2024, global Monthly Active Users (MAU) reached approximately 170 million, with contributions of 14.0% from Korea, 13.2% from Japan, and 72.8% from the Rest of World[134]. - Global Monthly Paying Users (MPU) reached 7.8 million with a paying ratio of 4.7%, showing a slight increase compared to the previous year[138]. - In Korea, MPU decreased to around 3.7 million with a paying ratio of 16.1%, compared to 4.0 million and 16.2% in the same quarter of 2023[139]. - In Japan, MPU increased to 2.2 million with a paying ratio of 10.2%, up from 1.9 million and 8.9% in the same quarter of 2023[139]. - In the Rest of World, MPU remained at 1.8 million with a paying ratio of 1.5%, consistent with the previous year[140]. Revenue Metrics - Revenue for the three months ended June 30, 2024, was $320,972 thousand, a slight increase of 0.1% compared to $320,663 thousand in 2023[159]. - Revenue for the six months ended June 30, 2024, increased by $16,796 thousand, or 2.7%, totaling $647,716 thousand compared to $630,920 thousand in 2023[167]. - Paid Content revenue increased by 1.0% to $260,709 thousand for the three months ended June 30, 2024, driven by strong growth in Japan[160]. - Advertising revenue increased by $5.0 million, or 6.9%, for the six months ended June 30, 2024, compared to the same period in 2023, driven by growth in Japan and ROW, offset by declines in Korea[168]. - Advertising revenue decreased by 3.6% to $40,419,000 for the three months ended June 30, 2024, compared to $41,938,000 in the same period of 2023[187]. User Engagement and Monetization - The company experienced higher user engagement and monetization in the third quarter due to global vacation and holiday schedules[145]. - Average Revenue per Paying User (ARPPU) for the quarter ended June 30, 2024, increased to $11.2, reflecting a 1.4% growth year-over-year[142]. - ARPPU in Korea decreased to $7.5, a 9.9% decline year-over-year, while in Japan it decreased to $21.2, a 5.7% decline[143]. - ARPPU in the Rest of World increased to $6.5, marking a 30.2% growth compared to the same quarter of 2023[144]. Expenses and Income - Marketing expenses decreased by $9,694 thousand, or 29.2%, for the three months ended June 30, 2024, due to improved marketing efficiency[163]. - General and administrative expenses surged by $85,236 thousand, or 159.4%, primarily due to stock compensation expenses and a one-time bonus related to the IPO[163]. - Interest income rose by $1,025 thousand, or 100.7%, for the three months ended June 30, 2024, totaling $2,043 thousand[164]. - Net income (loss) for the three months ended June 30, 2024, was $(76,568) thousand, a significant increase in loss of 287.7% compared to $(19,750) thousand in 2023[159]. - Other income (loss), net, improved by $8,373 thousand, or 137.5%, for the three months ended June 30, 2024, totaling $2,283 thousand[165]. Cash Flow and Financial Position - Net cash provided by operating activities for the six months ended June 30, 2024, was $22,394,000, a significant improvement from a net cash used of $40,663,000 in 2023[195]. - Net cash provided by financing activities for the six months ended June 30, 2024, was $336,053,000, primarily due to proceeds from the IPO and a private placement[200]. - As of June 30, 2024, the company had $572.3 million in cash and cash equivalents, sufficient to support working capital requirements for at least the next 12 months[191]. - The company reported a net loss of $70.3 million for the six months ended June 30, 2024, adjusted for non-cash items of $68.8 million[196]. Future Outlook - The company anticipates future capital requirements will depend on growth rate, sales and marketing activities, and other business factors[192]. - The company may seek additional financing for future acquisitions or investments in complementary businesses and technologies[194]. - The company provides revenue and growth rates on a constant currency basis to exclude the impact of foreign currency fluctuations and deconsolidated operations[182]. Investment Portfolio - The company's investment portfolio is primarily composed of cash on hand and short-term, highly liquid investments with original maturities of three months or less[209]. - The company does not expect an immediate 10% increase or decrease in interest rates to materially affect the fair value of its investment portfolio[209]. - The company has not entered into derivative or hedging transactions but may consider doing so if exposure to foreign currency exchange rate fluctuations increases[208].
Webtoon Entertainment Inc.(WBTN) - 2024 Q2 - Quarterly Results
2024-08-08 20:28
EXHIBIT 99.1 WEBTOON Entertainment Inc. Reports Strong Second Quarter 2024 Financial Results Revenue was Flat; Robust Year-over-Year Revenue Growth Rate on a Constant Currency Basis of 11.1% Outpaced Expectations Net Loss of $76.6 Million Driven by One-Time IPO Costs and Stock-Based Compensation Expense; Healthy Adjusted EBITDA of $22.4 Million Marked Second Straight Quarter of Profitability LINE MANGA Achieved #1 Consumer App Status Across iOS and Google Play in Japan in June According to SensorTower, Driv ...