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NAVER Reports Record Revenue of KRW 2.6105 Trillion and Operating Profit of KRW 472.7 Billion for Q2 2024

- Growth Across Key Business Segments Including Search Platform, Commerce, and Fintech Lead to 8.4% YoY and 3.3% QoQ Increases

- Record Highs for Revenue and Operating Profit; Operating Profit Margin Improves for Fifth Consecutive Quarter to 18.1%​

August 9, 2024

NAVER Corporation (CEO Choi Soo-yeon, www.navercorp.com) announced its financial results for the second quarter of 2024, reporting a record-breaking revenue of KRW 2.6105 trillion, adjusted EBITDA of KRW 638.4 billion, and an operating profit of KRW 472.7 billion.

The consolidated revenue for Q2 2024 increased by 8.4% year-on-year (YoY) and 3.3% quarter-on-quarter (QoQ), driven by robust growth across key business segments such as Search Platform, Commerce, and Fintech, alongside rising Cloud revenue. Adjusted EBITDA surged by 23.9% YoY and 9.9% QoQ, reaching a historic high of KRW 638.4 billion. The consolidated operating profit rose by 26.8% YoY and 7.6% QoQ to KRW 472.7 billion, with an operating profit margin of 18.1%, marking its fifth consecutive quarterly improvement.

Revenue by business segment was as follows: ▲ Search Platform: KRW 978.4 billion, ▲ Commerce: KRW 719.0 billion, ▲ Fintech: KRW 368.5 billion, ▲ Content: KRW 420.0 billion, and ▲ Cloud: KRW 124.6 billion.

The Search Platform segment posted a revenue of KRW 978.4 billion, reflecting a 7.5% YoY and an 8.1% QoQ increase, driven by enhancements in products like Place ads and Search ads, as well as improved targeting. NAVER plans to further expand user engagement and explore new revenue streams through hyper-personalization technologies.

The Commerce segment achieved a revenue of KRW 719.0 billion, up 13.6% YoY and 2.2% QoQ, fueled by increased adoption of Guaranteed Arrival and Brand Solution services, and continued growth in KREAM. The total transaction volume for NAVER Commerce grew by 4.1% YoY to KRW 12.3 trillion. The NAVER Plus Membership program has also bolstered its value proposition, driving the expansion of a loyal customer base.

The Fintech segment recorded a revenue of KRW 368.5 billion, an 8.5% YoY and a 4.1% QoQ increase. The transaction volume for NAVER Pay in Q2 2024 grew by 20.1% YoY and 5.2% QoQ to KRW 17.5 trillion, driven by the expansion of its external ecosystem. Notably, external payments accounted for over 50% of the total transaction volume for the first time.

The Content segment posted a revenue of KRW 420.0 billion, a slight 0.1% YoY increase but a 5.9% QoQ decrease. On a constant currency basis, excluding the impact of exchange rate fluctuations, global revenue from Webtoons grew by 11.1% YoY, with Japan continuing to show strong growth and achieving a record high in Monthly Paying Users (MPU).

The Cloud segment generated KRW 124.6 billion in revenue, up 19.2% YoY and 6.5% QoQ, driven by AI-related sales and an increase in paid IDs for LINE WORKS. In July, NAVER commenced the construction of a Digital Twin platform in Saudi Arabia.

Choi Soo-yeon, NAVER CEO, commented, “By leveraging our core competencies in AI, data, and search, we have fortified our platform capabilities and delivered differentiated experiences to our partners within the NAVER ecosystem. We are seeing early successes in monetization.” She added, “In the second half of the year, we will continue to accelerate the enhancement of our core business offerings and platform capabilities through AI and data while proactively exploring new technology-driven business opportunities.”

[Table] NAVER Corporation Q2 2024 Financial Results

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