Digital storytelling platform WEBTOON (NASDAQ: WBTN) will be reporting results tomorrow after market close. Here’s what to expect.
WEBTOON missed analysts’ revenue expectations by 1.3% last quarter, reporting revenues of $352.8 million, up 5.6% year on year. It was a slower quarter for the company, with a significant miss of analysts’ EPS estimates. It reported 163.3 million monthly active users (mau), down 3.7% year on year.
Is WEBTOON a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting WEBTOON’s revenue to be flat year on year at $328.8 million, slowing from the 5.3% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.13 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 Q1 results, giving us a hint as to what we can expect. Vimeo’s revenues decreased 1.8% year on year, beating analysts’ expectations by 1.6%, and Stride reported revenues up 17.8%, topping estimates by 3.6%. Vimeo traded down 10.1% following the results while Stride’s stock price was unchanged.
Read our full analysis of Vimeo’s results here and Stride’s results here.
There has been positive sentiment among investors in the digital media & content platforms segment, with share prices up 9.1% on average over the last month. WEBTOON is up 13.3% during the same time and is heading into earnings with an average analyst price target of $14.07 (compared to the current share price of $9.17).
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