NAVER (035420) Q2 2024 earnings summary

Executive summary

• Q2 revenue reached KRW 2.61 trillion, up 18.4% year-over-year and 3.3% quarter-over-quarter, driven by growth in search, commerce, and fintech segments.

• Adjusted EBITDA grew 23.9% YOY to KRW 638.4 billion, with margin improvement to 24.5%.

• Net profit was KRW 332.1 billion, up 15.8% YOY but down 40.3% QOQ due to prior quarter's one-time gains.

• Strategic focus on AI, data, and search integration led to enhanced user engagement and monetization.

• Operating profit reached KRW 472.7 billion, up 26.8% YOY and 7.6% QOQ, with an operating margin of 18.1%.

Financial highlights

• 2Q24 revenue: KRW 2,610.5 billion; Adjusted EBITDA: KRW 638.4 billion; Net profit: KRW 332.1 billion.

• Search platform revenue rose 7.5% YOY to KRW 988.4 billion; display ad revenue up 8.1% YOY and 16.1% QOQ.

• Commerce revenue increased 13.6% YOY to KRW 719 billion; commission and sales revenue up 26.2% YOY.

• Fintech revenue reached KRW 368.5 billion, up 8.5% YOY; TPV grew 20.1% YOY to KRW 17.5 trillion.

• Cloud revenue grew 19.2% YOY to KRW 124.6 billion, driven by AI-related projects.

Outlook and guidance

• Confident in sustaining double-digit revenue growth over the next 3–5 years, led by AI-driven product enhancements and expansion in ads, commerce, and content.

• Expect acceleration in ad revenue growth in the second half, with continued investment in AI and new ad products.

• Plans to expand personalized and feed-based shopping experiences and further integrate AI across platforms.