NAVER Reports Q3 2024 Revenue of KRW 2.7156 Trillion, Operating Profit Surges to KRW 525.3 Billion

NAVER Reports Q3 2024 Revenue of KRW 2.7156 Trillion, Operating Profit Surges to KRW 525.3 Billion

- Solid growth in search and ad businesses leads to 11.1% YoY and 4.0% QoQ increase in Q3 revenue

- Operating profit hits an all-time high with 38.2% YoY growth, achieving a historic high with an operating margin of 19.3%, up by 3.8 percentage points YoY

November 8, 2024

NAVER Corporation (CEO Choi Soo-yeon, www.navercorp.com) announced its financial results for the third quarter of 2024, reporting revenue of KRW 2.7156 trillion; adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of KRW 699.1 billion; and operating profit of KRW 525.3 billion.

Consolidated revenue for Q3 reached KRW 2.7156 trillion, driven by strong performance in search and advertising businesses, reflecting an 11.1% year-over-year (YoY) growth and a 4.0% quarter-over-quarter (QoQ) increase. Adjusted EBITDA rose by 27.0% YoY and 9.5% QoQ to reach KRW 699.1 billion, marking its eighth consecutive quarter of growth. The consolidated operating profit continued to set new records, growing 38.2% YoY and 11.1% QoQ to KRW 525.3 billion, with the operating margin improving by 3.8 percentage points YoY to 19.3%.

Revenue breakdown by business segment: Search Platform: KRW 997.7 billion, Commerce: KRW 725.4 billion, Fintech: KRW 385.1 billion, Content: KRW 462.8 billion, and Cloud: KRW 144.6 billion

The Search Platform segment grew by 11.0% YoY and 2.0% QoQ to KRW 997.7 billion, driven by extended user engagement through short-form content and feed services, expanded new service inventory, and improved advertising products and targeting capabilities. The segment achieved double-digit growth for the first time in 10 quarters through continuous platform enhancement.

Commerce recorded KRW 725.4 billion, growing 12.0% YoY and 0.9% QoQ. Growth was attributed to increased transaction volume from strengthened brand collaborations, enhanced membership benefits, and improved delivery quality, along with higher adoption rates of the Brand Solution Package and delivery guarantee services. NAVER plans to continue strengthening its commerce competitiveness by providing users with hyper-personalized shopping experiences and customized benefits.

Fintech revenue reached KRW 385.1 billion, up 13.0% YoY and 4.5% QoQ. NAVER Pay's total payment volume achieved KRW 18.6 trillion, growing 22.1% YoY and 6.2% QoQ, as its external ecosystem continued to expand. Offline payment volumes also surged by 78% YoY, driven by robust growth in on-site payments, orders, and reservations.

The Content segment's revenue maintained steady growth, reaching KRW 462.8 billion, up 6.4% YoY and 10.2% QoQ. This growth was bolstered by Japan's LINE Manga, which achieved the highest monthly active users (MAUs) and an expanded paid user base, contributing to the increase in paid content revenue.

Cloud revenue grew to KRW 144.6 billion, up 17.0% YoY and 16.1% QoQ, with continued growth centered on Neurocloud and LINE WORKS.

"NAVER continues to enhance its platform by strengthening search capabilities through AI and data while expanding hyper-personalized services tailored to user interests," said CEO Choi Soo-yeon. "We will create new growth engines and business opportunities by applying generative AI to various online and offline experiences, including Places, Maps, Real Estate, and Digital Twin services."

[Table] NAVER Corporation Q3 2024 Financial Results

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