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 Report