WEBTOON Entertainment (WBTN) Q4 2024 earnings summary

Executive summary

• Achieved record annual revenue of $1.35 billion in 2024, up 5.1% reported and 13% constant currency year-over-year, driven by Paid Content and Advertising, despite FX headwinds.

• Reported net loss of $152.9 million, mainly due to non-cash expenses, higher G&A from public company costs, and goodwill impairment.

• Adjusted EBITDA reached $67.9 million, up over 600% year-over-year, with margin improving to 5.0%.

• Became a public company in 2024, expanding global reach, platform innovation, and influence of creators and IPs.

• Ended 2024 with $572 million in cash and no debt, reflecting a strong balance sheet.

Financial highlights

• Q4 2024 revenue grew 5.6% to $352.8 million; constant currency revenue up 10.4%.

• Gross profit for Q4 was $82.3 million, up 7.7% year-over-year; gross margin expanded 45 basis points to 23.3%.

• Q4 adjusted EBITDA was a loss of $3.5 million, down from a $10.4 million profit in Q4 2023, impacted by $6 million actuarial losses and currency effects.

• Q4 net loss was $102.6 million, compared to $95.3 million loss in prior year, due to higher G&A, marketing, and goodwill impairment.

• Cash flow from operations was $17.9 million for 2024, up from $14.8 million in 2023.

Outlook and guidance

• Q1 2025 revenue expected to grow 1.7%-4.8% constant currency, to $318-$328 million.

• Q1 adjusted EBITDA expected between $0.5 million and $5.5 million, margin of 0.2%-1.7%.

• FX headwinds and IP adaptation delays in Korea expected to impact Q1; product improvements and investments sequenced for back half of 2025.

• Focus for 2025 includes platform innovation, new features, expanded monetization, and improved content discovery.

• No full-year guidance provided, but long-term strategy remains focused on profitable, constant currency revenue growth.