Q4 2024 Webtoon Entertainment Inc Earnings Call Transcript
Key Points
- Webtoon Entertainment Inc (WBTN) reported record annual revenue of $1.35 billion for 2024, marking a 5% growth on a reported basis and 13% on a constant currency basis.
- The company achieved a record adjusted EBITDA of $67.9 million, representing an increase of over 600% compared to 2023.
- WBTN successfully expanded its market presence in Japan, becoming the top non-game app by revenue in the country for the second half of 2024.
- The company invested in a Japanese studio, Number 9, to enhance its content pipeline in Japan, the fastest-growing market.
- WBTN's IP adaptations saw successful launches, with titles like 'Heroes Onco' debuting as a global streaming hit on Netflix, indicating strong cross-platform appeal.
- WBTN reported a net loss of $153 million for 2024, primarily due to non-cash expenses.
- The company experienced a net loss of $102.6 million in Q4, driven by higher general and administrative expenses and marketing costs.
- Total company Monthly Active Users (MAU) declined by approximately 3.7% in Q4, with significant impact from a government ban in one country.
- Gross margin declined sequentially due to a sales mix shift to higher revenue share ratio businesses.
- The IP adaptation business saw a revenue decline of 6.9% year over year in Q4, affected by delays in project timing.
Thank you for standing by. My name is Dustin, and I will be your conference operator today.
At this time, I would like to welcome everyone to the Webtoon Entertainment fourth quarter and full year 2024 earnings call.
(Operator Instructions)
This time I would now like to turn the call over to Suwon Kim, Vice President of Investor Relations. Mr. Kim, please go ahead.
Good afternoon.
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, in particular our guidance for the next quarter. Actual results may vary materially from statements. Information concerning risks, uncertainties, and other factors that could cause these results differs, including our SEC filings, including those stated in the risk factors session of our filings with the SEC.
These forward-looking statements represent our outlook only as of the date of
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