WEBTOON Entertainment Inc.'s stock plunged 20.16% in intraday trading on Friday, following the release of its disappointing preliminary fourth quarter and full year 2024 results.

While the digital comics platform provider achieved its second consecutive year of adjusted EBITDA profitability in 2024, with over $67 million, its Q4 results were weighed down by foreign exchange headwinds and higher costs.

For the fourth quarter, WEBTOON Entertainment reported:

• Revenue of around $351 million, up around 5% year-over-year, but impacted by a stronger U.S. dollar against the Korean won and Japanese yen, which represent nearly 90% of its revenue.
• Adjusted EBITDA between -$4.5 million to -$3.5 million, hit by actuarial losses on retiree benefits, currency effects, and lower gross profit in Korea due to a shift in revenue mix.
• Net loss between $107 million to $101 million, wider than the $95.3 million net loss in Q4 2023, impacted by one-time costs related to restructuring, IPO expenses, and impairment of goodwill.