Does This IPO Stock Have Any Value in Future-WBTN

Acrobull UK Advisory Services Ltd.

October 09

2024

Name	Ticker	Sector/Industry	Market Cap	Risk Factor
WEBTOON Entertainment Inc.	NASDAQ-WBTN	Technology	$1.379 Billion	Medium

WEBTOON Entertainment Inc. operates a storytelling platform worldwide. The company's platform allows a community of creators and users to discover, create, and share new content. Its platform offers stories primarily in two ways, including web-comics, a graphical comic-like medium; and web-novels, which are text-based stories.

Recent Highlights

CEO Statement-WEBTOON went public in June, alerting the investment community to our breakthrough mobile storytelling formats as well as our global IP and artist ecosystem. After nearly two decades of innovation as webcomic pioneers, we're excited to start the next chapter of our story as we grow our business and assist our creators earn money and establish global fandoms for their work.

Kim stated, "In the second quarter, we delivered strong performance across geographies and revenue streams, demonstrating the strength of our value proposition." Looking ahead, I see substantial possibilities to accelerate growth by leveraging our powerful global flywheel to increase our presence in underserved regions, capitalize on our massive and untapped advertising opportunity, and inspire even more people.

Second Quarter 2024 Financial Highlights

Total revenue of $321.0 million increased by 0.1% as growth in the business was offset by the Company's large exposure to weaker foreign currencies such as the Korean won and Japanese yen, the latter of which hit historically low levels versus the US dollar.

Revenue on a constant currency basis was $350.3 million, up 11.1% year on year, driven by growth in all revenue streams. Paid Content, Advertising, and IP Adaptation

Adjusted EBITDA of $22.4 million represented a significant increase from a slight loss in the prior year, marking strong profit improvement for the second consecutive quarter.

Paid Content revenue grew 1.0%, or 11.5% on a constant currency basis, driven by successful execution of our user conversion strategies globally with robust, double digit revenue growth on a constant currency basis in Rest of World and Japan, which is the Company’s largest market.

Stock Observation- Post the IPO launch the stock has gone through the volatility however second quarter financial results show company basic roots are in intact. The RSI level for the stock is at 41 which shows oversold conditions.

Risk Involved- Financial performance of the company may have an impact on the company stock performance.

Considering all the factors and financials of the company Acrobull UK maintains Buy Rating for the stock.

Disclaimer- Though our research is fundamentally and technically based on Acrobull UK only provides general advice on the stocks and it is imperative for the investors to do the risk assessment for themselves before investing as Acrobull UK would not be liable for any loss or profit arising out through the investment made by the investors on our recommendations.

It is also advisable for the investors to consult with Financial Advisor, Broker or to seek any legal assistance as the research conducted by Acrobull UK is factually based and recommendations are given in accordance with that, but it is imperative to understand that Acrobull UK does not guarantee returns.

Acrobull UK Recommendation Based on Evaluation

Current Market Price	$10.75 USD
Acrobull Recommendation	Buy
Target Price	$12.36 USD
RSI Level	14 Day RSI 41
Total Shares Outstanding	128.27 Million
Shares held by Insiders Risk Factor	87.77% Medium