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• Netflix for digital comics
• Spotify for visual stories

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• WEBTOON Platform: A global digital platform providing a vast library of webcomics (webtoons) for users to read on their mobile devices and computers.
• Paid Content Sales: Users purchase virtual currency to unlock premium or early-access chapters of webtoons on the platform.
• Advertising Services: Offers advertising opportunities within its platform to various brands and businesses.
• Intellectual Property (IP) Licensing: Licenses its popular webtoon intellectual properties for adaptation into other media like TV shows, films, and games, or for merchandise.

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Customer Categories:

1. Casual Readers: These individuals primarily engage with the free-to-read content model on the platform, utilizing daily passes or waiting for episodes to unlock. They might make very infrequent or no in-app purchases, contributing to the platform's user base and ad impressions.

2. Engaged Paying Readers: These customers frequently purchase digital currency (such as "Webtoon Coins") to access new episodes early ("Fast Pass"), unlock premium content, or binge-read completed series. They represent a significant portion of the company's direct revenue and are often highly committed to specific series or creators.

3. Global Diverse Audience: This category emphasizes the broad demographic and geographic reach of Webtoon Entertainment's user base. It encompasses individuals from various countries, cultures, and age groups who consume a wide array of content across multiple genres and languages available on its platforms (e.g., WEBTOON, LINE Manga, etc.).

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• Amazon.com, Inc. (AMZN)
• Apple Inc. (AAPL)
• Alphabet Inc. (GOOGL)

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Junkoo Kim, Chief Executive Officer

Junkoo Kim is the Founder and Chief Executive Officer of WEBTOON Entertainment, serving as CEO since the company's incorporation in 2016 and also as Chairman of the Board. He founded the original platform, Naver Webtoon, in 2005 in Korea, pioneering the mobile vertical scroll format. Mr. Kim led WEBTOON Entertainment through its initial public offering (IPO) in 2024. He joined NAVER Corporation as a developer in 2004, accumulating over 19 years of experience in digital content and comics. His vision has been instrumental in transforming WEBTOON Entertainment into a global storytelling powerhouse.

David J. Lee, Chief Operating Officer & Chief Financial Officer

David J. Lee serves as Chief Operating Officer and Chief Financial Officer for WEBTOON Entertainment, overseeing global corporate, financial, and operations teams for WEBTOON, Wattpad, and Wattpad WEBTOON Studios. He is a seasoned consumer and technology industry executive with over two decades of experience in finance leadership. Prior to joining WEBTOON, Mr. Lee was the CEO of Inevitable Tech and served on public company boards for AppHarvest, Benson Hill, and Zevia. He previously held the role of COO & CFO at Impossible Foods, where he successfully led the launch of the Impossible Burger. Before that, Mr. Lee was the public company CFO of Zynga, where he led finance and corporate development teams and helped guide the company's transition to mobile. From 2004 to 2012, he held leadership roles at Del Monte Foods, including leading its take-private transaction. Mr. Lee also managed corporate finance, strategy, and development for Best Buy during its transformation from 2012 to 2014.

Yongsoo Kim, Chief Strategy Officer & Head of Global WEBTOON

Yongsoo Kim is the Chief Strategy Officer and Head of Global WEBTOON. He joined WEBTOON in 2022 as head of strategy and is responsible for global strategic investments, partnerships, and mergers and acquisitions. Previously, Mr. Kim was a Principal at KKR, where he led turnaround efforts for KKR's portfolio companies in Korea. He was also part of the founding team at Tesla Korea and an engagement manager at McKinsey.

Chankyu Park, Chief Technology Officer

Chankyu Park serves as the Chief Technology Officer for WEBTOON Entertainment.

Hyeeun Son, Chief Design Officer

Hyeeun Son is the Chief Design Officer at WEBTOON Entertainment.

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The key risks to Webtoon Entertainment (WBTN) are primarily related to its declining user engagement and profitability, ongoing legal challenges, and content-specific vulnerabilities.

1. Declining User Metrics and Profitability Challenges

   Webtoon Entertainment faces a significant risk from declining user metrics and ongoing profitability issues. The company experienced a notable drop in monthly active users (MAU) and monthly paying users (MPU) in the second quarter, with a more pronounced decline in Korea. This decline in user engagement is considered a central risk, as it could weaken future revenue and the value of its intellectual property (IP). Furthermore, the company reported operating and net losses in the second quarter, and revenue is forecasted to decline in Q4 2025. In 2023, Webtoon Entertainment was not profitable, incurring a loss of $145 million. The growth rate of the domestic webtoon market is also slowing, and overseas expansion efforts have faced withdrawals and lower-than-expected revenues, contributing to the financial challenges.

2. Securities Fraud Class-Action Lawsuit and Governance Scrutiny

   Webtoon Entertainment is subject to a significant risk stemming from a securities fraud class-action lawsuit. Several U.S. law firms are preparing a lawsuit alleging that the company failed to properly disclose crucial negative information during its initial public offering (IPO), including a decline in revenues from advertising and IP businesses. A U.S. District Court has refused to dismiss a securities fraud class action related to alleged misstatements regarding Monthly Active Users at the June 2024 IPO, leading to increased scrutiny of the company's governance and data transparency. This legal challenge introduces uncertainty and could complicate how investors interpret user figures and the company's path to profitability.

3. Content-Related Risks

   The business is also exposed to risks associated with its content. Webtoon Entertainment's heavy dependence on a few blockbuster titles makes it vulnerable to revenue volatility if these series lose momentum. Additionally, content moderation and regulatory scrutiny, particularly in markets like China and South Korea, could impact creative freedom and increase compliance costs. A major challenge for the broader webtoon industry, and by extension Webtoon Entertainment, is illegal distribution, which causes substantial financial damage, especially in the Korean market. The digital content market is also experiencing saturation, with a reliance on blockbuster IPs potentially threatening user growth and monetization.

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The addressable market for Webtoon Entertainment's main products and services, primarily webtoons and digital comics, is substantial and experiencing rapid global growth.

The global webtoons market was valued at approximately USD 9.17 billion in 2024 and is projected to reach USD 97.19 billion by 2033, demonstrating a compound annual growth rate (CAGR) of 28.50% from 2025 to 2033. Other estimates place the global market value at USD 7.02 billion in 2024, with a projection to reach USD 175.0 billion by 2035 at a CAGR of 33.96% from 2025 to 2035. In 2023, the global webtoons market size was estimated at USD 8.28 billion and is expected to reach USD 45.30 billion by 2030, growing at a CAGR of 27.3% from 2024 to 2030. Another report indicated the market was valued at USD 5.32 billion in 2023 and is poised to grow to USD 62.55 billion by 2032, with a CAGR of 31.5% during the forecast period (2025-2032).

Regionally, Asia-Pacific dominates the webtoons market, holding a significant market share of over 28.9% in 2024. Countries like South Korea, Malaysia, Vietnam, and Taiwan are noted as commonly saturated webtoons markets. While Asia-Pacific is dominant, North America and Europe are identified as emerging regions with rapid growth in the webtoons market. The U.S. webtoons market held the largest market share in the North America region.

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Here are 3-5 expected drivers of future revenue growth for Webtoon Entertainment (WBTN) over the next 2-3 years:

1. Strategic Content Partnerships and IP Expansion: Webtoon Entertainment is strategically expanding its content offerings through significant partnerships, such as the multi-year collaboration with Disney. This initiative will bring approximately 100 blockbuster comics from Disney, Marvel, Star Wars, and 20th Century Studios IPs to Webtoon's platform, aiming to accelerate new user acquisition and enhance content engagement, particularly among younger, mobile-native demographics. This is expected to drive strong top-line revenue growth and expand the monetizable user base.
2. Growth in Paid Content and Advertising Revenue: The company has consistently demonstrated growth in both paid content and advertising revenue streams across its operational regions. In Q4 2024, Webtoon reported strength in Paid Content and Advertising. Additionally, the first quarter of 2025 saw advertising revenue grow by 13.6% on a constant currency basis. Increased engagement from paying users and a rising Average Revenue Per User (ARPU) are anticipated to further contribute to revenue expansion.
3. Geographic Expansion and User Acquisition, particularly in North America: Webtoon is actively targeting growth in key geographic markets, with a particular focus on North America. The Disney partnership is specifically designed to address the awareness gap in this region, which is identified as Webtoon's largest untapped market. By introducing familiar and popular IPs, the company aims to significantly lower user acquisition friction and expand its readership. The English platform WebComic app has already shown promising growth, with its Monthly Active Users (MAU) increasing by 19% for the second consecutive quarter in Q2 2025.
4. Advancements in the IP Adaptation Business and Creator Ecosystem: The IP Adaptation business is a significant growth driver, having experienced 42.6% year-over-year growth in the most recent quarter. The company has ambitious plans, with 20 new anime projects slated for 2025, a substantial increase from six in 2024. Webtoon also intends to utilize proceeds from its IPO to expand its content library and foster local creators, further enriching its content pipeline and strengthening the creator ecosystem.
5. Leveraging AI for Enhanced Content Creation and User Experience: Webtoon plans to invest in developing more advanced AI tools to enhance creator productivity and reduce content creation timelines. Furthermore, the company is exploring the implementation of an AI recommendation engine to improve user experience and facilitate content discovery. These AI integrations are expected to contribute to increased user engagement and retention, indirectly driving revenue growth.

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Share Issuance

• In June 2024, Webtoon Entertainment completed its Initial Public Offering (IPO), offering 15,000,000 shares of common stock at $21.00 per share, generating approximately $315 million in gross proceeds.
• Concurrently with the IPO, the company issued an additional 2,380,952 shares of common stock to a subsidiary of NAVER Corporation at the IPO price of $21.00 per share, raising approximately $50 million.
• The number of shares outstanding for Webtoon Entertainment has increased by 17.93% in one year, with 130.61 million shares outstanding.

Inbound Investments

• As of March 31, 2024, prior to its IPO, Webtoon had received approximately $1.7 billion in fair market value investment from investors, including NAVER and LY Corporation.
• In September 2025, The Walt Disney Company agreed to take a 2% equity stake in Webtoon Entertainment as part of a collaboration to develop a new digital comics platform.

Outbound Investments

• Webtoon Entertainment acquired Wattpad in 2023, integrating it into its IP & Creator Ecosystem.

Capital Expenditures

• The net proceeds from the IPO are intended for general corporate purposes, including working capital, operating expenses, and capital expenditures.
• Capital expenditures for Webtoon Entertainment were reported at $1.8 million for the second quarter ended June 2025.
• The company's capital spending history indicates a relatively sparing approach to capital expenditures as a function of its operating cash flow.