Overview
WEBTOON Q2 revenue rises 8.5%, beating analyst expectations, per LSEG data
Adjusted EPS for Q2 beats consensus, despite net loss of $3.9 mln
Company announces strategic collaboration with Disney for iconic comics
Outlook
WEBTOON expects Q3 revenue growth of 9.4%-12.2% on constant currency basis
Company anticipates Q3 revenue between $380 mln and $390 mln, based on current FX rates
WEBTOON forecasts Q3 adjusted EBITDA of $2 mln-$7 mln
Company sees Q3 adjusted EBITDA margin of 0.5%-1.8%
Result Drivers
REVENUE GROWTH - Driven by increases in Paid Content, Advertising, and IP Adaptations
COST MANAGEMENT - Lower general & administrative expenses contributed to reduced net loss
APP UPDATES - Recent updates to the webcomic app aimed at increasing user engagement
Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$348.27 mln
$341.60 mln (7 Analysts)
Q2 Adjusted EPS
Beat
$0.07
-$0.15 (7 Analysts)
Q2 EPS
-$0.03
Q2 Net Income
-$3.88 mln
Q2 Operating Income
-$8.76 mln
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the online services peer group is "buy"
Wall Street's median 12-month price target for Webtoon Entertainment Inc is $11.00, about 16.9% above its August 11 closing price of $9.14
Press Release: ID:nGNX6y2VpF
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)