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]

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].

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].

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]

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 ...

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].

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].

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 ...