WEBTOON Entertainment Inc. (WBTN) shares plummeted 12.21% during intraday trading on Tuesday, extending losses from earlier in the session.

The sharp decline follows the digital comics platform's release of a second-quarter revenue forecast that fell short of analyst expectations. The company expects Q2 revenue to be between $332 million and $342 million, representing growth of 1.7% to 4.6% on a constant currency basis. This guidance undershot the $348 million analysts had been projecting.

Investor sentiment was further weighed down by the company's first-quarter results, which showed a 1.5% year-over-year decline in revenue to $320.9 million. The company attributed the Q1 revenue decline primarily to a 23% drop in its IP adaptations business.