Digital storytelling platform WEBTOON (NASDAQ: WBTN) will be announcing earnings results this Wednesday after market hours. Here’s what to expect.
WEBTOON beat analysts’ revenue expectations by 2.2% last quarter, reporting revenues of $348.3 million, up 8.5% year on year. It was a stunning quarter for the company, with a beat of analysts’ EPS estimates and revenue guidance for next quarter exceeding analysts’ expectations. It reported 156.1 million monthly active users, down 6.1% year on year.
Is WEBTOON a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting WEBTOON’s revenue to grow 9.9% year on year to $382.2 million, in line with the 9.5% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.03 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. WEBTOON has missed Wall Street’s revenue estimates twice since going public.
Looking at WEBTOON’s peers in the digital media & content platforms segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Getty Images posted flat year-on-year revenue, meeting analysts’ expectations, and Ziff Davis reported revenues up 2.9%, falling short of estimates by 0.5%. Ziff Davis’s stock price was unchanged following the results.
Read our full analysis of Getty Images’s results here and Ziff Davis’s results here.
Investors in the digital media & content platforms segment have had fairly steady hands going into earnings, with share prices down 1.3% on average over the last month. WEBTOON is down 3.8% during the same time and is heading into earnings with an average analyst price target of $20.19 (compared to the current share price of $16.79).
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