WEBTOON Entertainment (WBTN) 2026 Evercore Global TMT Conference summary

Key business highlights

• WEBTOON operates a global digital storytelling platform with 27 million creators and 145 million monthly active users, generating $1.4 billion in revenue, mainly from paid content.

• The company has strong market penetration in Korea (50% of population, 40% of revenue) and is the dominant player in Japan (48% of revenue, $22.50 ARPU), with North America and other regions showing rapid growth.

• Paid content is the primary revenue model, with micro-purchases per episode; advertising is mature in Korea but nascent elsewhere.

• The Disney partnership includes web comic adaptations, original stories, and a new direct-to-consumer platform, with a launch targeted by year-end and Disney holding a 2% equity stake.

• Off-platform adaptations (e.g., Amazon Prime, Netflix, Tubi) and brand collaborations (e.g., Duolingo, Discord) drive user acquisition and engagement.

Growth strategies and operational focus

• Japan's infrastructure overhaul is complete, with AI and video features being deployed to reignite double-digit growth seen in 2024.

• Increasing the paying ratio outside Korea is a major opportunity; excluding Wattpad, ROW paying ratios are approaching mid-single digits, with potential to rise as user habituation grows.

• Wattpad is being revamped for its 20th anniversary in Q4 2026, aiming to improve user experience and set up future monetization, especially in advertising.

• AI is leveraged for auto-translation, content personalization, anti-piracy, and creator empowerment, reducing costs and expanding global reach.

• Management changes include elevating Yongsoo Kim to President to globalize operations and focus on AI-driven growth, while the founder focuses on strategic initiatives.

Financial outlook and forward-looking statements

• The company targets double-digit constant currency revenue growth exiting 2026, driven by continued paid content growth in Korea and Japan, ROW paying ratio improvements, and new partnerships.

• Wattpad's turnaround is positioned as a long-term growth lever, especially for advertising revenue post-2027.

• Off-platform content adaptations and brand collaborations are expected to provide cost-effective user acquisition and engagement.

• Disney partnership is expected to have a more significant impact in the mid to long term, with new original content and a direct-to-consumer platform launching by year-end.

• Management expresses confidence in achieving growth targets, citing recent operational improvements and ongoing strategic initiatives.