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/Mis Actual Consensu

s s

Estimate

Q2 Beat $348.27 $341.60

Revenue mln mln (7

Analysts

)

Q2 Beat $0.07 -$0.15

Adjusted (7

EPS Analysts

)

Q2 EPS -$0.03

Q2 Net -$3.88

Income mln

Q2 -$8.76

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 $11.00, about 16.9% above its August 11 closing price of $9.14

Press Release:

(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.)