Webtoon, which raised $365 million with a $2.9 billion valuation in a recent public offering earlier this year (see "Webtoon Worth $2.9B"), showed a bigger loss on higher sales in its first quarter as a public company. The company lost $76.6 million in Q2 2024, up from a $19.8 million loss in the year ago quarter. The company attributed the loss to one-time IPO-related costs and stock-based compensation expenses.
Sales were up fractionally at $361 million for the quarter (the company's results in Korea and Japan, its largest markets, were in weak currencies against the dollar), but up 11.1% in constant currency. All three of the company’s revenue streams were up in constant currency, with Paid Content up 1.0%, but up 11.5% on a constant currency basis; Advertising down 3.6%, but up 2.3% on a constant currency basis; and IP Adaptations revenue down 3.7%, but up 24.9% on a constant currency basis.
By the next quarter, the one-time expenses should be out of the financials, and it will be possible to get a better look at Webtoon's operating profitability as a public company. Foreign currency fluctuations are going to be a continuing part of the story on Webtoon, as it reports its financial results in dollars, but makes much of its revenue and profits in Asia.
In First Quarter as Public Company
Posted by Milton Griepp on August 14, 2024 @ 2:00 am CT