WEBTOON Entertainment Inc. Common stock Q4 FY2025 earnings call

Jun-Woo Kim mentioned revenue growth of 3.9% constant current basis and adjusted EBITDA over 19 million. MPU growth positive in Q4 driven by Korea and rest of world. Progressed personalization tools with AI for unique content recommendations. Completed strategy agreement with Disney, targeting 2026 launch of new digital comics platform. Launched 12 reformat titles with Disney. Advancing flywheel with IP adaptations, e.g., Amazon MGM Studio greenlighted Rural Olympus, reached 20 anime projects in Japan, Netflix adapting Viral Heat. David Lee discussed Q4 revenue $330.7M, full year $1.4B. Gross margin expanded to 24.3% in Q4. Net loss $336.5M in Q4. Focused on driving users and converting to paying users. MAU and webcomic app MAU had declines but MPU grew. Update on revenue streams: paid content, advertising, IP adaptation by region

For the fourth quarter, revenue was $330.7 million. Full year 2025 revenue was $1.4 billion. Paid content had 0.4% constant currency revenue growth in Q4 and 1.5% full year. Advertising declined 10.3% in Q4 and had 0.4% full year growth. IP adaptation revenue declined 29.7% in Q4 but was up 35.5% full year. Korea: Q4 revenue down 9.1% CC, full year up 5.9% CC. Japan: Q4 revenue down 1.0% CC, full year up 3.9% CC. Rest of world: Q4 revenue up 0.8% CC, full year down 2.1% CC

First quarter 2026 revenue expected in range of negative 1.5% to positive 1.5% constant currency, range $317 - 327 million. Adjusted EBITDA expected in range of 0 - 5 million, margin 0 - 1.5%. Believes in fundamental health of long-term strategy, expecting return to double-digit year-over-year growth by end of 2026

Actual results may vary materially from forward-looking statements. Information on risks, uncertainty, and other factors in SEC filings. Impact of automated web traffic on rest of world MAU had reduced impact in Q1 2026, but noted no material impact. Dependence on key advertisers and e-commerce providers in some regions may affect revenue

Q: Any more details on Disney's 2026 launch platform, marketing and product plans?

A: Disney closed investment on Jan 8, 2026, launched 12 reformatted titles with collaboration, committed to launching new consumer platform by end of 2026.

Q: On return to double-digit growth, factors?

A: Driven by paid content, advertising recovery, and crossover IP.

Q: Progress of recommendation algorithm in Korea and application to other markets?

A: AI-driven personalization engine successful in Korea, intent to roll out in other markets like Japan.

Q: Economics of Disney joint platform vs core app?

A: Webtoon will recognize revenue and cost, content and brand licensing fee structure consistent with existing mode.

Q: Engagement with Disney reformat titles?

A: Early stage, too early to give specific metrics, focused on long-term success.

Q: Advertising investment roadmap with shift to performance-oriented?

A: Korea has products anticipating performance trends, rest of world in early stages, building ad ecosystem for North American market