WBTN - Earnings call transcript Q4 2024 | WEBTOON Entertainment Inc. Common stock

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Operator

Thank you for standing by. My name is Dustin, and I will be your conference operator today. At this time, I would like to welcome everyone to the WEBTOON Entertainment Fourth Quarter and Full Year 2024 Earnings Call. (Operator Instructions) At this time, I would now like to turn the call over to Soohwan Kim, Vice President of Investor Relations. Mr. ahead. go please Kim,

Soohwan Kim

thank joining and you afternoon, us. for Good

next SEC. in in today forward-looking our this is plans, obligation materially included the our statements a forward-looking the for expected reminder, and the those filings from include factors any update remarks our the guidance concerning our future As Factors today's differ including statements. including of stated revise statements. SEC to may our to risks, results those call. represent will regarding of that Risk section with in could as no particular outlook These statements Actual these filings, or forward-looking Information quarter. We results performance, only undertake of uncertainties vary objectives, other our cause date

the earnings release. measures GAAP today we measures. directly to, of include measures. any and the substitute in considered GAAP set financial are not measures discuss forth comparable Reconciliations as addition for, both press most non-GAAP a measures Non-GAAP our to financial financial non-GAAP should be GAAP matters Additionally, will in

Strategy us With now on over Joining our Junkoo Lee, Chief CFO I call Kim, that, and Founder today COO; are CEO, turn Kim, Yongsoo the CEO; Junkoo Kim. and will and Founder the call and David to Officer.

Junkoo Kim

and and everyone, joining performance, provide brief David then us our outlook. our for you, on will results Thank detail today. few I'll a comments make more on

new currency We our our on public in shareholder and an Relations making creators thoughts was became and full website. please the Investor WEBTOON. an history, beginning letter year of all company, for and my $X.XX a For year profitability. to am constant continued of our to path the a basis. Revenue and for on exciting the share results with important the on that billion chapter and year grow our I forward, posted XX% refer influence XXXX on reported grew we XXXX the basis record IP revenue strong reported annual world. their a pleased to over X%

$XXX produced share to successful due that XXXX, adjusted EBITDA our strategy, No. in Blood, invested has Divine both that we LINE January, a by In the leveraging business to are progress of like second to of of cross-border demonstrate of in non-game reported a content a and hit able compared loss exporting XXXX the [indiscernible], than believe like net such local our few creator a and these I'd Korean million, with reported We market. and XXX% Japanese was webcomic Korea our position Japan, the differentiated our we noncash expenses, from which are local to Japan. now number flywheel we as successfully hit starting position become strategy of stories measured XXXX. half focused highlights hit as X, of in a results in end building titles our to on in market. we've for of working. Japan including to our global ecosystem the leading we mostly Japan. top powerful an revenue take in a more $XX.X breakout the out and in been By After increase million, first studio of Savior While record Manga's

in discover us animated into MPLX. into growing and the [indiscernible] [indiscernible] film boost largest platform company's Japan title Otokonoko investment was new Japan, anime content. has helping feature in With is Senpai through local was adapted a market. since discovered Our creators developed maintain XXXX. successful series and this by pipeline is its of continued a content in an our X new and in will Further, No. pipeline fresh fastest geography our our the popularity, been

strategy. Japan is in success incredible Our of of our evidence power the

stages in various in examples pipeline. and Three adaptations, markets, at actions build is Jeongnyeon: global was up had the Finishing in this Star other content first, we to studios show with similar successful in launches taking The number our investing and a global are a of key we QX, the creators IP Korea content off in U.S. and We Born, to Disney+ in in include great ranked XXXX. are category November. start sixth of TV

drive the in titles can we source to the dedicated global and our on Second, hit, formats. Tubi over and will green and #X stream out and QB finally, the XXXX users platform. weekend, to to our January, first and light on our reaching its also I IP develop sequel. audience our project our find was the Canada, and a of continue Me. global X hit the We seek for The for employees of new Tubi success our our to creators was in viewers stories driven any U.S. built X This and on community title Thanksgiving applications. mission. doing that a enjoy to viewers Heroes want a as our to launched in instant U.S. biggest for passionate Netflix non-English Sidelined: number the In commitment creator company of in continued users on share who has successes their by The thank category. streamers create, success called debuted XX weeks We ecosystem spanning top platform continue led drama variety And Encore these intentionally believe these already original to a material of across as conclusion, in days.

by grow of visual economy. With new driving innovation continue Looking and to go bold I to initiatives democratize creator confident will new call forms over turn I David. remain XXXX, bringing David, ahead. storytelling to as now to in and ability comics storytelling we the our to to that, please the ecosystem our business continue with

David Lee

year, joining unless going prior to JK, the otherwise fourth you, everyone, results focus for you, compared on thank my the I'm noted. Thank to and us. XXXX quarter commentary

across quarter, streams. on revenue fourth the currency with XX.X% growth revenue basis we During grew all constant a

X.X% strength up exposure offset was result a partially of revenue currencies. weaker our reported Paid as year-over-year & in foreign Content Advertising, Our to by

content greater our profit, distribution we points strategies, which our leverage cross-border on we As XX expanded basis gained also year-over-year. on gross executed

due was in quarter the the a noncash primarily to EBITDA a of $XX.X for losses points. Adjusted the If retiree $X benefits, XXX of moved from expense. $X.X mix XXXX. sales mix. to you translation in studio adjust a gross margin as a by cost quarter, certain gross negative On Korea basis expenses, marketing margin to to in expanded during result revenue as eBookJapan was Net of by fourth increases to positive expenses same marketing the public losses of million currency to EBITDA Actuarial a in sequential the which the ad marketing by performance-based revenue as share in loss compared million due nonoperating year expense lower impacted on higher of to the of company effects basis, loss and which quarter declined in businesses, had gross a third-party shift profit actuarial driven were costs evaluation, approximately adjusted and quarter. million the both in revenue higher quarter $XX.X to We due compared shift and have of million a well in administrative prior, impact million an ratios. general higher $XXX.X and a

As $X.XX in $X.XX was per earnings result, compared share the to for of year. adjusted adjusted a our quarter loss prior share the per

down MAU better in our health, and are to total monetization on our opportunities. Turning present company to users driving more who the operational call, last X.X% was efforts we On focus roughly quarter. app engaged shared

impact overall, like of by growth we MAU slightly While app increases Thailand. in well important saw X.X% led English-speaking users. decreased countries webnovel markets as MAU and This app webcomic X.X% remove increase key France we was other the by a as across when

quarter, see due continue in government of World pressure country. As ban we on last to mentioned Rest one to a Wattpad on MAU

the government ban Rest of working the World. ban, we're quarter months the in accounting of full lifted, decline X/X included closely a the with impact MAU While the of fourth that of get X for to

even to of generate are World, of important indication revenue global format's the acceptance returning strategy Although to to higher on an than webnovels are an our we still and which our and in platform webcomics webnovels, the Wattpad profitability of we and Rest growth platform. lower believe focused stories tend our the allows on to for more entry platform as profitability. remains creators their is leading IP webnovels, barrier piece showcase

currency Now with Starting basis to revenue on constant provide our paid year-over-year. content, update we posted level. I'd quarter like a an growth streams a on consolidated the XX.X% revenue in at

double-digit posted successful driven Korea our by the strength world. XX.X% to monetization This rest basis. in which continued and well year, in a was growth we the full revenue of the currency as constant on Japan, For ongoing as efforts show growth

in our currency we for constant XX.X% full and content a users engagement paying driving the on as to user and recommendation represents models Additionally, year propensity ARPU growth the they improve to quarter love. the of spend their on success increase in XX.X% basis continue

from seen our other have partners. been MAU ARPU revenue we've This due fourth in revenue strength and saw Korea basis solid partners sales web offering from strong currency LINE higher we growth just able strong Rest on Advertising In double-digit of and year-over-year was I growth. decreases performance quarter ad increased Japan's growth XX.X% year-over-year. to with coupled growth the in post and was declines draw by posted driven Wattpad eBookJapan. MAU the continuing in users, NAVER continues and Japan. Manga Korea, the to of we World in growth for interest constant by mentioned, Korea both While ban a to driven with as

video we introduced that improvements as rewarded to During to we on QX, platform. make ads eBookJapan continue

growth currency posted full the XX.X% we constant year, revenue basis. a on advertising For

constant partially X.X% Japan. Korea QX, Finally, of and by in revenue Rest declines saw offset in adaptation currency our business on year-over-year World, a decline basis driven growth by IP in

full basis. up adaptation on the X.X% constant a IP was revenue For year, currency

In and latest driving and IP experienced prolonged platforms. globally, While Korea timing our excited in remains believe QX. to to projects our traffic XXXX market brand beyond, project awareness adaptation and delay to entertainment to projects our the in pipeline bring support in strong, are studio we continues a we strategy of

year-over-year and Now basis, growth In like to look primarily our context driven geographies. currency content Korea, our constant by X.X% quarter, fourth of I'd grew the a paid on core in revenue. revenue advertising in the at during results

of recommendation we and our the benefits see saw sales ad AI to other rollout partners. engine continue in NAVER also and QX, from balanced from from growth We

revenue posted For the full decline year, currency basis. constant on X.X% a we

$XX.X million million During of basis quarter of fourth our XX.X% XXX down and paying XXXX. fourth points of MPU was MAU the of $X.X compared the to decreased quarter, X.X%. X.X% ratio declined

constant a we Korea the political fourth weeks the basis during from up with short-term our impacts XX.X% few fourth That when we strong we said, ARPU in XXXX, results a on ago, the As turbulence engagement occurred quarter the users. to reported currency existing preannounced some compared relationship experienced we that was solid representing have of a quarter.

previously, mentioned out tab AI-driven rolled we which recommendations. June was fully home of personalized to recommendation model, improve our XXXX, As continues in

viewed During the of number user fourth quarter, saw X%. weekly per we the increase episodes

Japan. to Moving

Japan a streams. revenue quarter, in XX.X%. of basis the top This second XXXX. data by and growth market shows both the half our the in of in posted LINE as on Japan revenue of significant Manga by driven the we growth app is that fourth on Japan nongame revenue For topped currency was each quarter for market constant SensorTower the of firmly now

of up a Japan full XX% million growing steepened revenue MPU million grew and paying X% now users For $XX, paid posted QX we and fourth increased total with was basis, $X.X we ratio revenue. on MAU launched points. constant basis new the X.X%. our a growth Compared of XX with of Japan's original quarter currency during titles constant XX.X% half quarter. $XX.X as XX.X% basis year, the ARPU year-over-year represents of to Engagement of XXX nearly on XXXX, currency

about note Rest in As the JK earlier, Japan our adaptations pleased launches Japanese in up launches paid In efforts title World, the talked that majority we're revenue decline saw of currency in quarter. made driven and our to constant local IP localization in particularly by basis, in by advertising. on offset content growth the the declines year-over-year quarter, partially of X.X% a we the

currency constant full the a year, XX.X% on For we posted growth revenue basis.

$X.XX fourth ARPU consistent currency MPU X.X% quarter basis. X.X% and on stayed of constant year-over-year year-over-year MAU X% ratio X.X% paying and declined While year-over-year. a of grew respectively,

year, representing profitability, to quarter impact in an $XX.X which to X.X%. was This to amounting from gross expanded marketing Starting the profit margin $XX.X Turning basis compared million prior in cost of to prior of XX million $X.X marketing XX.X%, to was moved of in a expense compared points gross QX, the the of for year. growth revenue, of part eBookJapan's million. resulted

the would of businesses, to have sales approximately ratio. which gross to ads XX% due reclassification, performance-based million revenue. have increase both higher XX.X% mix declined or Gross an a year, studio this from of share sequentially been $XX.X margin profit Excluding shift and certain of prior revenue

quarter. $X.X million on $XX.X of had some we mix a profit were expense fourth that to of of to to gross increase based approximately nonoperating markets our in for shifts million in was the loss there temporary content EBITDA time as over retiree adjusted short prior $X term, noncash EBITDA on year. our outside million compared margin third-party losses benefits, increase the Korea. a expect a an we in the While profit impacted evaluation, gross Actuarial the quarter Adjusted in paid impact

related total as as side, quarter $X of to administrative impairment the year, other million cost million in the our the marketing, million of loss year year million the were expense period. Interest million quarter, million prior a $XX.X driven and $XXX.X to compared higher higher the was primarily company Net expenses was tax costs. prior businesses. of to to $XX.X on of webnovel amortization compared compared higher in the general in for the million costs, million the benefit goodwill, year. Income compared in $XX.X the fourth year. expenses public by quarter $X.X in which in and and result to in quarter Depreciation million income to compared a $X.X $X.X primarily were was million prior was $X.X primarily million due G&A loss losses prior $XX.X company $XX.X and public prior On to

Adjusted GAAP result, to per the loss year $X.XX compared $X.XX $X.XX a prior period. was share was of period. in loss $X.XX quarter prior per loss adjusted year share per As per in the compared share share of the to in earnings a

quarter first represents constant of revenue QX This rather based of range to For the deliver a of rates million on X.X% the the XXXX, rates guidance This $XXX on to from than million. of growth basis. is in XXXX. current $XXX expect FX to the X.X% revenue FX in we currency range end

have as and in we we this of As rates were discussed quarter FX more favorable first face headwinds in first the of the previously, year the will XXXX. half first half

Korea slate. delays despite strong experience with to continue We IP adaptation in a

quarter ahead are $X.X adjusted product of of margin X.X% of the which the range investing EBITDA improvements, also of occur in XXXX. We $X.X our in infrastructure range in X.X%. million half will in to an million, back adjusted We anticipate to representing the first EBITDA

factors strategic drive In future to maintain referenced, we addition growth. to to revenue our marketing in just expect I investment

company. in also we have quarter We company public that this additional have ago quarter not a did the as private expenses year

and of the While believe health we are creators, our in underpinned flywheel not by content powerful fundamental to we our providing full users. continue of long-term strategy, year guidance,

is Over the we I'm a constant in generate revenue as our progress currency closing, to pleased company. the first long profitable year with term, growth. our In made public goal

session. signs see the back and key still operator that, there's in begin we're much regions to be While it to and encouraged positive work turn the we France, Q&A look to to done, markets we With to forward English-speaking in executing like like I'd XXXX. strategy our our by

Operator

first Our Mark Instructions) line Evercore. (Operator the question Mahaney comes of from from

Mark Mahaney

please. I'll ask X questions,

the you're the sustainability year. strength really has as year. second March in about to full and talk guidance do that the for First, with the seeing quarter full Japan, maybe question your just that embedded of the in And

the say issues The takes. growth that. Japan, MAU How takes. think in however outage, got and March directionally post are we just lot should There you a the got levels you've of to puts The the profitability of should Wattpad, stabilize. lot strength want the a the and You've that quarter? anniversarying puts of about and

David Lee

in some that clear you to Japan, I do have. and try It's think about and the provided few issues guidance a wanted I QX the I be fundamental reflected to thereafter. model QX. specific guidance want business really The confident JK items that to as you want Mark. discrete be on. answer. QX the that to first be rocket I Thanks, That we we extremely are said, created clear, in very on discrete to for ship only be we that flywheel for is of question that Remember, helpful to one bullish the are and continue your has did a have this are very specific think we great

Korea. Trauma great film of great Me. is a The key One a IP We The about about we ones called in Tubi slate we of & the Born. Star in even, gave QB Sidelined: And that U.S. talked the Jeongnyeon: talked examples Code, on is

opportunity really the the of post we While on in and is is guide, quarter. your QX we we that investment to strong, towards we marketing bullish because sequence within in of English-speaking health user particularly compare slate countries as see, the maintain fundamental positive QX IP going we're guide a the timing Similarly, are on in our to we the or while suggest a previous EBITDA still range. factor abroad, mentioned

year. what the which unlock in with these page, it's discussed, entire the are letter it Importantly, but a large series, been product and on as both as company innovation, we back in engage on highlights, the the he's the whether commentary founded the well year. development significant, technology very sequenced users they towards JK sequence to his this and landing ability portion in product today -- remainder the this we is specific the home improvement And the of of of of shareholder way that affect half

which we not about encourage with business, talked growth. That confidence. a how to we're point, in very our to profitable are think we I term think strong quarter guiding we've for FX said, what And based but so day want out, unprecedented transparent, we Korean based mid the be. trouble just tracking last what rate demonstrated yuan like we to But previously that versus And current clear the the have confidence the and FX USD, business the other investors I QX. of on, long make to One though seen about given guidance of some we sure Mark, we basis period the had our on only in when our our target, on be while previous might an quarter. is you we've important, about previous to guided a change on the fundamental

model. for a just guide be for that also historic wanted I at currency the position sure could the So USD. to local a to But that argue clear in rate, a relative your current is current rate that to QX, in one clear was make weakness

Your titles were that we've was the as at rated games, Manga just revenue a specific look you or second built is say XXX we we're and new excited to feel whether LINE Japan. to question that outside in very that mobile would locally created, about strongly it. want most fact we're in launched, of Japan, of which the #X rocket ship I short, original

Operator

Sheridan line question comes next Goldman Your Eric Sachs. from of the from

Eric Sheridan

new be in engagement second engagement? might traffic? of rate just about quantification mean of little either on come creators. about user engagements. in thinking a be to you you giving be new formats from make terms drive of Can in to and of the I bit of a that users maybe and again, might lift mean of How can it of users seeing conversion we it of would talked terms continue to investments should letter back in change little some to experiences need you respect highlighted go in might investments engagement? what onboarding increase things or how elements you in in what bit usability the And a what an deeper And exploring you increases want to or part of shareholder with to

David Lee

Thanks, Eric.

question. great Another

reiterate to in going as JK's First, adjusted for in in periods making both promised in relative performance, post, post, on our in already And I want commentary as in well EBITDA and are overall or positive the the investments product we levels strategic letter, the clear, of that guide to investment EBITDA. innovation. QX reported guidance, and marketing to we're in to we

to on series we're will this talking then not health. business before period. some period, testing These for as to why style how in which long-term the value entire always I unlocking expense in some And said in key. the our read we even of all wanted profitability. our been to That about So the talk what fundamental QX a post these QX insignificant. he product JK off, our promotional I comments time, has would was in then we not to With with that I long-term be investment our part well, creators, highlight mentioned always at innovation for on Because Highlights. want of we of said, invest regarding specifically marketing. flywheel we content and video can title. is that the said, creation focused of business you not product, showing the read. seen users, that a color in very about how we them about this while show provided new guidance And cases our talked the have specific. that. the commentary actually resources personalization options, We are continues AI-based to have are in ones the JK X% We We experience we're believe, very And have some marketing, reason confident talked testing onboarding about completed throughout titles is will which Korea pay you for model in new January revamped preference. regard called We launched include for trailer sequential remain additional different may June, increase engine

significantly engage being content. greater will in English-reading out. It them not see of the investments more up back X experience for of more expect more as a engagement or the as increasing investments. think the year. show I half in think product where up already payoff, marketing about of investments in in sequence of do everyday we I up but of those we longer-term show be in with That's customers the our is quarter nor second World, ARPU shows in likely English-speaking desire and Our marketing, the to would The marketing half, real. consumers, how which Rest

Operator

Our next line from from question comes the Black Bank. Deutsche of Benjamin

Benjamin Black

is, Just the sort a so how recommendation recommendations in you to I learnings mentioned on engine it mentioned about per here. think Korea. it in of How of And near drove follow-up far a how become? a engagement MAU and increase trends And AI-driven user, political AI of so you know in this progressed should your X% the great to the hear question growth talk about generally Can sort disruption Korea. user in the midterm? just payer that big sort speaking, then would second we year? lift about of more have you be could really

David Lee

Benjamin. Thanks,

Korea. robust in about to XX% crossover powerful is, personalization as with strong in more talk regard well to our that's know, there's First, engine, When so and is it habituation with AI the why is you extremely reason we you an Korea the in relation engagement as place have Korea a release household ARPU market. in and IP content, we experience why

and have of think we can As amount the content more and show to potentially webcomics, app revenue. they of users the we And the impact metric innovation it's have transparency see content, about for depth is in what we habituation, about abroad, will spirit read, on you we given presenting one the promise want you become growth, X.X% benefit release any our just to talked I growth. we particularly that specific growth. increase. providing while this more. you new highlighted a focused it, any guidance or where MAU around releases, highlighted strength in a not to up app but webtunes specifically of about will something the content more long-term how of of new talked will and for for paid we We We're all talk product MAU we are webcomic Because we product on critical

our Korea business, business. Japan which is product innovations. is crossover today, of of the critical really Where our IP, see and for we paid strength, content Our advertising is the heart scale webnovel and in for around more those really

to metric I I specific provide but this inform wanted more called and beginning why to MAU. you disclose can't webcomic of app So more we're more strategically today, metrics

As I for would mentioned trust these for do January, that turbulence. that given to we faced regard guide commentary this include -- the in QX, political we've with we you QX, which starting issues

have fact months. those We QX the that said our that today reflected estimate the while guide reflects the believe performance also we on our in issues resolved, X guide best our first

Operator

Morgan. Our the from JP line next Anmuth of question comes from Doug

Douglas Anmuth

This is for Dave on Doug.

XQ a follow-up Just on your guide.

the that -- in the EBITDA also some of You issues happened XQ, talked breakeven like When the about some to commitment unrest been I to regions? is but other across of you what for political flowing of the is the discrete affecting the and those items, issues do you traffic like the Korea at that is of being out are some magnitude acquisition assuming guess the have Korea XQ. IP in slate might IP slate the bigger that impact look driver? think your also and And organic pushed into in you and

David Lee

actually quarter. of is longer standpoint specific a overall relatively I paid Well, small content, way percent you period note versus that can a at to numbers. I revenue. of it's And IP an send than revenue look a one total penetration from you point you the can you'll to When answer our that

can IP as of I and being think great that much an mid wouldn't how of It lift we annual organic disclose it read it to long-term provide. primarily issue. can slate the at company a delay or I a level. because quarter, total persistent is a affect

that My crossed globally phenomenon like we had started that periods, business think over quarter. a then hit about impact and webnovel, usership If as and a actually in was webcomic, lifted across QX of a Marry you global about in previous globally Husband, have XXXX, in that what which as talked engagement and some then Prime hit to our had Amazon revenue a

an can have strength something a do think I overall. as I of given the just example outside in guide the It's strength important slate a I Just it is an our -- source as IP discuss significantly of quarter, impact. period. of may not of

to we thing by paid not a engine. X X, like quarterly I though, other X more question. And includes are emphasize issues, hit whale-dependent if our a point see is not answers clear, we hope IP of the or you of term some to business. shifts than the regard that guide. our that do slate would short-term want can impact short-term single to source I month I then or the But other on the with increasing a only projects a guide. slate is we We again, affect move be strength. The that a it content Long would feel

have as Korea, our think do guided that it to a performance something in well guide. said persist for we want beyond our we period, example reason as that include We QX turmoil these the is political for QX don't issues, as the but

Douglas Anmuth

they with kind other, out? And projects state you a delay, Do Meaning kind your what's adaptation current that pipeline to of together the quick quarters? fall explain they when moving strategy back all as of do get And into IP each compete follow-up the could move back? just future what's like delay? pushed does on the causing against or have

David Lee

Yes.

core our we lift them the That's come and IP of rejoice that they a paid in to users, crossover. reach schedule. market short-term drive -- way on We engine managing like content our we with we not organic organically timing but we're not well. depend why we never very know to would given when they much best have because a short-term rather First, are market the engagement to

result, studio manage short-term seek amounts remember, the a deploy not to the lowest we schedule. As dollars. to having advantage don't to of have the success the slate maximum We at of cost. Because of seek the massive ensure we

where disclosure scale impact seek out. business paid to a pretty issue, compete feature us. Rather, and our rather but mind come fairly of we them they're film also remember, we me These share they timing short-term with IP timing We paid of diverse about they They a of have source not platform of on out. these content. and need future for hits the And for that where have be hits, cannibalization this worry them, one cross at is crossover benefit content then than results don't to I We're or primary that of forms benefits to length is the an want over they crossover manage not core platform. think come yet when the another. The other for this IR significant, our to clear when timing business. this affecting on

Operator

Our Morgan next line the of from question Stanley. comes Matthew from Cost

Matthew Cost

in shown is tracking on 'XX advertising. I half year side? where couple as call And nice how year, a then maybe that months saw about versus almost acceleration to you X really the we're I I moving a is where first hoped the have now guess believe And ask into Where would you be? to maybe really follow-up. year. want inflect you one early as ad It's are of the I opportunity what as show needle quarters. out of the scaling? past even advertising initiatives you to advertising an kind business that

David Lee

constant And Thanks, by look QX period On in Matt. versus basis, disclose in XX.X% while I we've be constant continues direct internally to back Not Japan versus a the the region, for growth it Japan, a of didn't where opportunity we how amount fair of a Advertising in run. ad peel Korea having like of at increase. sales World, seeing we about Rest and World when markets just all nascent strength. is a force currency room I'm currency like to America. a example and Rest feel and markets. we North yet, English-speaking robust have markets Remember, talked underlining advertising in

days, continued I really basis. and on think it's see we're we with pleased growth the early constant quarter-to-quarter currency a

Matthew Cost

webnovel I If just the bit on users? that think impact then correctly, X%. How there that up accurate? back app that you've number. specific app about is MAU that we app something webnovel Is X, a MAU it is, year-on-year. understand users, almost MAUs of will I on were a should then headwind? is declined continue total here? some of users, the But And part that result -- from number following you if And one Great. guess webcomic out up part webnovel experience to changes that is made a is as the the

David Lee

Well, that first, period our of that be would your Wattpad of at example yes, on interpretation, when we An the accuracy X.X% MAU in business. webcomic growth excludes QX the webnovels. look

as source is we're a business is models. it's business an but us, why not crossover driven explain me that important is it other by a Wattpad this. scale. let content given disclosing its paid it IP for by And as is business of First,

are about QB examples talk many trying X.X%, Me come when platform, Wattpad past to from metric we great this the films, the we've where will Because talk driven users webnovel about in why engine on content that That's example basis, actually content we is so monetize that when of fact, feature for pointing business it. the content generated show we that and business. number. In and more by by that the content But other we and grew you we're our is a from we product value the mentioned & global towards the so link Sidelined: on more precisely engine where paid reason paid than paid you improvement, webcomic webnovel our go.

transparent number about to we've be pointing from reason that I Wattpad. what in is we're other MAU want The total disclosed you towards

World country in that one declined QX, pointed Rest MAU of Wattpad, total total we MAU banned decline. which and actually Our drove to of specifically the X/X

product the when the these the is why saw in we're to that worry not investors full we Part that show to numbers, quarter is shared primary We're this big at it that's metric tied just but release. beginning innovation we this why where on going this, a to. providing of the disclosure more reason it's the we MAU transparent QX. in total we of and non-GAAP embargo be basis we're country's on reason what helpful one sometimes impact on Just more trying

Operator

comes line James. the Our from next Marok from of Andrew Raymond question

Andrew Marok

if here, about level content or the terms cohort And any evaluation of comfort as our talk commentary on we kind of the the we're content the into supply kind can your your you behavior the Maybe than geo in level could of to models things paid one more your side and But as of just of about come use as relates of kind looking adaptations. new of of rather both 'XX? of equation how well that's of maybe IP -- the it your quantity of or online, as that's for mix versus that those breadth expectations. monetizing kind

David Lee

the question, Andrew. for Thanks

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very the good. we For term, mid to long feel

from establish that I But which are of long is be think mid practice information is creators. transparent to much this on we to as ensuring trying very we're the the bright, source of a about, content for know just what QX particularly to term we guide quarter. a providing as

Operator

Seeing closing I team like the as to to session. the over there back are WEBTOON question-and-answer would for concludes call the no our remarks. now more in Entertainment turn queue, that questions

Soohwan Kim

much, at very the Bye-bye. results over you QX. and current then the period providing and we end you meeting of to new Thank look forward

Operator

all has meeting Thank The now concluded. joining. for you

now You may disconnect.

WEBTOON Entertainment Inc. Common stock (WBTN) 25 Feb 252024 Q4 Earnings call transcript