Overview

* WEBTOON Q3 revenue grows 8.7% yr/yr but misses analyst expectations

* Adjusted EPS for Q3 beats analyst expectations

* Company announced partnership with Warner Bros. Animation for co-production of projects

Outlook

* Company expects Q4 revenue decline of 5.1%-2.3% on constant currency basis

* WEBTOON projects Q4 revenue between $330 mln and $340 mln

* Company anticipates Q4 adjusted EBITDA loss of $6.5 mln to $1.5 mln

Result Drivers

* PAID CONTENT AND IP ADAPTATIONS - Revenue growth driven by increases in Paid Content and IP Adaptations, despite a decline in Advertising

* PRODUCT INNOVATION - New storytelling formats and successful IP adaptations contributed to growth

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Miss $378.04 $385.08

Revenue mln mln (6

Analysts

)

Q3 Beat $0.04 -$0.12

Adjusted (6

EPS Analysts

)

Q3 EPS -$0.09

Q3 Net -$11.05

Income mln

Q3 -$14.88

Operatin mln

g Income

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 ( WBTN ) is $23.00, about 28.3% above its November 11 closing price of $16.48

Press Release:

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(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.)