NAVER Posts Revenue of KRW 2.5 Trillion and Operating Profit of KRW 439.3 Billion in Q1 2024
NAVER Posts Revenue of KRW 2.5 Trillion and Operating Profit of KRW 439.3 Billion in Q1 2024
NAVER Posts Revenue of KRW 2.5 Trillion and Operating Profit of KRW 439.3 Billion in Q1 2024
Steady growth in major business segments, such as the Search Platform and Commerce, lead to a 10.8% YoY increase in Q1 revenue
May 3, 2024
NAVER Corporation (CEO Choi Soo-yeon) announced that it recorded revenue of KRW 2.5261 trillion, adjusted EBITDA of KRW 581.0 billion, and operating profit of KRW 439.3 billion in the first quarter of 2024.
NAVER’s consolidated operating revenue for the first quarter was KRW 2.5261 trillion and rose 10.8% compared to the same period last year thanks to the steady growth of major business segments such as the Search Platform and Commerce. However, it edged down 0.4% from the previous quarter because of off-season effects. The quarterly adjusted EBITDA recorded stable growth, increasing 19.0% year-over-year (YoY) and 0.2% quarter-over-quarter (QoQ) to KRW 581.0 billion. This is attributable to the improved profitability of Content and the growing operating profit from Poshmark. The consolidated operating profit reached KRW 439.3 billion, with a profit margin of 17.4%, up from the previous quarter’s 16.0%, partly because of a temporary reduction in stock compensation expenses caused by stock price volatility.
By business segment, revenue was: Search Platform at KRW 905.4 billion, Commerce at KRW 703.4 billion, Fintech at KRW 353.9 billion, Content at KRW 446.3 billion, and Cloud at KRW 117.0 billion.
The Search Platform grew by 6.3% YoY, fueled by enhanced search advertising, strong performance-based advertising, and the acquisition of new advertisers.
The Commerce segment posted KRW 703.4 billion in revenue, up 16.1% YoY and 6.5% QoQ, following increased revenue from NAVER Arrival Guarantee and Brand Solution services, growth in KREAM, and the inclusion of SODA.
Fintech earned KRW 353.9 billion, growing 11.2% YoY but edging down 0.6% QoQ. NAVER Pay’s payment amount in the first quarter increased 24.8% YoY and 2.2% QoQ to KRW 167 trillion, driven by continued expansion in the external ecosystem. In particular, offline payment, boosted by the expansion of QR and MST payments, soared 174% YoY.
Content revenue went up 8.5% YoY but dipped 4.3% QoQ to KRW 446.3 billion, partly because of the exclusion of NAVER Z from the consolidated revenue. The total global transactions for WEBTOON expanded 9.1% YoY to KRW 458.7 billion, with Japan yen–based transaction volume in Japan increasing by 24% YoY. WEBTOON exhibited enhanced growth and profitability, achieving quarterly EBITDA expansion and positive operating profit.
The Cloud segment showed a 25.5% rise YoY to KRW 117.0 billion, propelled by revenue realization from generative AI solutions like HyperCLOVA X.
NAVER CEO Choi Soo-yeon stated, “Following a restructuring in early April, we are focused on swiftly responding to market trends and identifying new business opportunities based on a more segmented and specialized business organization. By leveraging NAVER’s core technologies such as AI, data, and search, we aim to provide unique experiences while fostering long-term technological growth to bolster NAVER’s inherent competitiveness.”
[Table] NAVER Corporation’s Q1 2024 Earnings
