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.(WBTN) - 2024 Q3 - Quarterly Results