Naver Corp. · KRX:035420
Naver — Naver Corp Ord — Q1 2024 Earnings Presentation
15 slides from Naver's earnings presentation, May 3, 2024
Slide 1: NAVER 1Q24 Earnings Results
NAVER 1Q24 Earnings Results 2024.5.3
Slide 2: Disclaimer
Disclaimer The financial information included in this document are earnings results based on K-IFRS. This document is provided for the convenience of investors, and the external review on our financial results are yet to be completed; therefore, certain part(s) of this document is subject to change
Slide 3: Earnings Summary
Earnings Summary • Revenue grew 10.8% YoY (-0.4% QoQ) with contribution across all major businesses • Adjusted EBITDA grew 19.0% YoY (+0.2% QoQ) on improved profitability in Contents and operating profit expansion at Poshmark • Decline in stock-based compensation resulting from negative stock price
Slide 4: Search Platform: Search, Display, Other Related Services
Search Platform Search, Display, Other Related Services Quarterly Revenue 1Q24 YoY 6.3%↑ / QoQ % -2.5% ↓ Search YoY 6.2% / QoQ 0.6% (bn KRW) Display YoY 5.3% / QoQ -11.9% 928.3 916.4 910.4 898.5 905.4 • Search grew 6.2% YoY, supported by efficiency 851.8 improvement of search ads and introduction of
Slide 5: Commerce: Ad, Commission & Sales, Membership
Commerce Ad, Commission & Sales, Membership Quarterly Revenue 1Q24 YoY 16.1%↑/ QoQ 6.5%↑1) Commerce Ad YoY 0.3% / QoQ -5.3% (bn KRW, tn KRW) Commission & Sales YoY 28.9% / QoQ 16.8%2) Membership YoY 24.0% / QoQ 3.9% 12.4 12.2 tn KRW 11.9 11.9 11.6 11.2 12.0 800.0 • Revenue increased 16.1% YoY, drive
Slide 6: Fintech: Payments, Digital Finance, etc.
Fintech Payments, Digital Finance, etc. Quarterly Revenue 1Q24 YoY 11.2%↑/ QoQ -0.6%↓ (bn KRW, tn KRW) 450.0 16.7 tn 18.0 KRW 천 16.3 15.3 • 1Q TPV grew 24.8% YoY (+2.2% QoQ) to 16.7tn KRW as 16.0 400.0 14.6 3rd party ecosystem continued to expand 13.2 13.4 350.0 14.0 356.0 353.9 339.7 340.8 300.0 31
Slide 7: Contents: Webtoon, SNOW, Others
Contents Webtoon, SNOW, Others Quarterly Revenue 1Q24 YoY 8.5%↑/ QoQ -4.3%↓1) 750.0 Webtoon YoY 11.7% / QoQ -1.5% 700.0 (bn KRW) SNOW YoY -20.7%* / QoQ -28.1%2) 479.6 500.0 Others YoY 21.3% / QoQ -0.7% 650.0 458.7 441.7 444.0 420.4 600.0 406.3 [Webtoon] 550.0 400.0 • Global Webtoon GMV grew 9.1% YoY
Slide 8: Cloud: B2B (NCP/Works), Others (CLOVA/LABS, etc.)
Cloud B2B(NCP/Works), Others(CLOVA/LABS, etc.) Quarterly Revenue 1Q24 YoY 25.5% ↑ / QoQ -7.0% ↓ B2B YoY 22.0% / QoQ -2.4% (bn KRW) Others YoY 187.5% / QoQ -51.6% 140.0 123.6 125.9 120.0 11.7 117.0 • Revenue from Neurocloud and generative AI model 111.1 13.1 5.7 104.5 (HCX) monetization as well as in
Slide 9: Operating Expenses/Profit
Operating Expenses/Profit • Adjusted EBITDA increased 19.0% YoY to KRW 581 billion. Enhanced productivity resulted in labor cost decline and overall Development & Operations expense remaining roughly flat YoY • Marketing expense growth decelerated, driven by marketing efficiency improvement in Conte
Slide 10: Operating Income, Adjusted EBITDA
Operating Income, Adjusted EBITDA Operating Income Adjusted EBITDA (bn KRW) (bn KRW) 600.0 580.0 581.0 550.6 500.0 515.1 486.6 488.1 439.3 405.5 400.0 372.7 380.2 336.5 330.5 300.0 200.0 100.0 0.0 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24
Slide 11: 1Q24 P&L by Segment
1Q24 P&L by Segment Reporting Segment Total (bn KRW, %) Adjustment* Search (Consolidated) Commerce Fintech Contents Cloud Platform 1Q Segment 935.1 701.4 390.3 502.5 137.8 (141.0) 2,526.1 Revenue (A) - External revenue 905.4 703.5 353.9 446.3 117.0 - 2,526.1 - Internal revenue 29.8 (2.1) 36.4 56.2 2
Slide 12: P&L by Segment
P&L by Segment (bn KRW, %) Search Platform & Commerce Fintech Excluding KREAM/Amuse/Poshmark/SODA 800.0 37.2% 36.2% 36.4% 36.4% 35.8% 8.8% 40.0% 34.1% 700.0 7.7% 7.2% 10.0% 1,600.0 6.5% 6.7% 35.0% 600.0 5.2% 1,500.0 30.0% 5.0% 32.2% 31.8% 31.6% 31.7% 32.2% 500.0 31.0% 25.0% 1,400.0 400.0 1,636.5 20.
Slide 13: Cash & Borrowings, Consolidated FCF, Direct and Indirect Investments
Cash & Borrowings, Consolidated FCF, Direct and Indirect Investments Cash & Borrowings Consolidated FCF, Direct and Indirect Investments (bn KRW) Dividend payment of 119.0 bn KRW completed on Apr. 17th (790 KRW per share, equivalent to 20% of 2-year average consolidated FCF) Cash and cash equivalent
Slide 14: Appendix. Net Profit
Appendix. Net Profit • 1Q net profit rose 1,173.2% YoY (+86.2% QoQ) further supported by gain on deconsolidation of certain subsidiaries • Equity method gain/loss: reflects YoY increase in equity method valuation losses • Other profit/loss: reflects gains on deconsolidation of Naver Z and disposal o
Slide 15: Thank You
NAVER Thank You