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.
Source: ICv2
