NAVER Reports Fourth Quarter 2023 Revenue of KRW 2.5 Trillion and Operating Profit of KRW 405.5 Billion
NAVER Reports Fourth Quarter 2023 Revenue of KRW 2.5 Trillion and Operating Profit of KRW 405.5 Billion
NAVER Reports Fourth Quarter 2023 Revenue of KRW 2.5 Trillion and Operating Profit of KRW 405.5 Billion
- The adjusted EBITDA sets a new record at KRW 580 billion, which is attributed to substantial profit growth in the content and commerce sectors
- For the entire year, the company recorded an annual revenue of KRW 9.6 trillion and an operating profit of KRW 1.4 trillion, indicating a notable 14.1% increase from the previous year
February 2, 2024
NAVER Corporation (CEO Choi Soo-yeon) announced financial results for the fourth quarter of 2023, reporting KRW 2.537 trillion in revenue, KRW 405.5 billion in operating profit, and a record-high adjusted EBITDA of KRW 580 billion.
The consolidated operating revenue for the fourth quarter marked a 11.7% increase from the same period last year, 3.8% increase from previous quarter, reaching KRW 2.537 trillion. This growth was fueled by advancements in major business sectors. The adjusted EBITDA for the quarter set a new record at KRW 580 billion, reflecting a noteworthy 19.2% year-over-year (YoY) increase and a 5.3% quarter-over-quarter (QoQ) rise. The notable contributions to this achievement were the positive performance of WEBTOON and increased profits from Poshmark. The consolidated operating profit exhibited a 20.5% YoY and 6.7% QoQ growth, reaching KRW 405.5 billion. The operating profit margin also expanded by 16% compared to the previous quarter.
In 2023, NAVER Corporation reported a total revenue of KRW 9.6706 trillion, signifying a notable 17.6% increase from the previous year. The annual operating profit also saw a significant uptick, rising by 14.1% to KRW 1.4888 trillion, while the annual adjusted EBITDA experienced robust growth, increasing by 18.4% to KRW 2.1338 trillion.
Breaking down the revenue by business sector for the fourth quarter, the figures are as follows: Search Platform at KRW 928.3 billion, Commerce at KRW 660.5 billion, Fintech at KRW 356 billion, Content at KRW 466.3 billion, and Cloud at KRW 125.9 billion.
The Search Platform demonstrated robust growth in search advertsements, generating KRW 928.3 billion in revenue, reflecting a 1.3% YoY growth and a 3.3% QoQ increase. Following the integration of the generative AI search service, Cue:, into the desktop integrated search at the end of November, NAVER plans to extend testing to mobile platforms in the coming year.
Commerce exhibited significant growth, recording KRW 660.5 billion in revenue, a substantial 35.7% YoY increase and a 2.0% QoQ rise. This growth can be attributed to the acquisition of Poshmark, higher commission rates at KREAM, increased transactions GMV in Smart Stores, and the initiation of revenue from brand solution packages and the Arrival Guarantee service. Total transactions for the fourth quarter reached KRW 12.4 trillion, marking an 11.0% YoY and 3.7% QoQ increase, driven by the expanded Brand Store and service transactions.
Fintech reported KRW 356 billion in revenue, marking an 11.3% YoY increase and a 4.5% QoQ rise. In the fourth quarter, the payment amount reached KRW 16.3 trillion, representing a significant 23.9% YoY and 7.0% QoQ increase.
Content revenue reached KRW 466.3 billion, showing a 6.6% YoY increase and a 7.2% QoQ rise. This growth was propelled by the expansion of WEBTOON content and IP sales, along with increased sales of SNOW AI products. The total global transactions for WEBTOON increased by 9.3% YoY, reaching KRW 444 billion. Notably, both the fourth quarter and the annual EBITDA turned profitable, reflecting the success of various efforts to enhance profitability.
Cloud revenue reached KRW 125.9 billion, experiencing a 13.3% YoY increase and a 1.8% QoQ rise.
NAVER CEO Choi Soo-yeon commented, “Despite challenges in Korea and abroad in 2023, we achieved substantial growth in sales and improved profitability through meticulous cost management. In the coming year, NAVER will persist in leveraging its strengths, particularly in AI and data, to enhance the competitive edge of our key business areas like search and commerce.”
[Table] NAVER’s Q4 and Annual Earnings for 2023]
