WEBTOON Entertainment (WBTN) J.P. Morgan 54th Annual Global Technology, Media and Communications Conference summary

Business overview and platform dynamics

• Connects 27 million creators to 145 million monthly active users, pioneering serialized, vertically scrolling web comics.

• Upgraded Canvas platform enables amateurs to create and share stories globally, with 120,000 new stories arriving daily.

• Flywheel model leverages technology for personalized recommendations, creator empowerment, and global franchise development.

• Achieved $1.4 billion in GAAP revenue last year and positive operating cash flow for three consecutive years.

• Majority of users are outside Korea, with significant traction among Gen Z in North America.

Geographic performance and growth opportunities

• Korea: Nearly 50% market penetration, 13.9% constant currency paid content growth in Q1, and a strong foundation for content export.

• Japan: Less than 20% penetration, $22.50 ARPU, now 48% of total revenue; infrastructure upgrades completed, setting up for renewed growth.

• Rest of world: 100 million MAU, under 5% penetration, English web comic MAU and MPU both growing 3%, significant upside potential.

• Global expansion supported by partnerships and content adaptations, including anime and collaborations with major studios.

Monetization, revenue mix, and financials

• Paid content is 80% of revenue, advertising and IP adaptation comprise the remaining 20%.

• Double-digit revenue growth targeted by end of 2026, driven by paid content, infrastructure investments, and global partnerships.

• Gross profit margin improved by 390 basis points YoY in Q1, aided by lower app store fees in Japan and favorable revenue mix.

• Operating cash flow positive for three years, with $600 million in cash and marketable securities.

• Adjusted EBITDA guidance for Q2 is $0–$5 million, reflecting reinvestment for long-term growth.