WEBTOON Sees Q4 Revenue Down 1.8% After $378M Q3 Miss
WEBTOON’s Q3 revenues rose to $378 million, up 8.7% year-on-year but missed forecasts, and it projects Q4 revenue to decline 1.8% year-on-year versus a 5.6% gain last year. Shares have fallen 4.4%, with analysts maintaining estimates and an average target of $16.29 versus the $11.23 share price.
1. Q3 Revenue Miss and Q4 Outlook
WEBTOON reported Q3 revenues of $378 million, up 8.7% year-on-year, but fell short of analyst expectations. Management now forecasts a 1.8% revenue decline in Q4 compared with the same period last year, reversing a 5.6% increase recorded in Q4 of 2024.
2. Analyst Forecasts and Price Targets
Analysts covering WEBTOON have reconfirmed their revenue estimates in the past 30 days, indicating steady expectations for the upcoming report. The consensus price target stands at $16.29 per share, compared with the current price of $11.23, reflecting potential upside if guidance surprises.
3. Peer Performance Insights
In the digital media and content platforms segment, Stride reported 7.5% year-on-year Q4 revenue growth and saw its stock rise 14.2%, while IAC delivered a 10.5% revenue decline but topped estimates, trading down 3%. These mixed results offer a reference point for WEBTOON’s upcoming performance.
4. Market Sentiment and Stock Movement
Shares of digital media platforms have underperformed, with the group down 4.8% on average over the past month and WEBTOON off 4.4% in the same period. This broad sector weakness adds pressure as WEBTOON heads into its earnings announcement.