Not surprisingly, their statement tries to spin everything in a very positive light, heavily leveraging the recent agreement with Disney and talking up a number of upcoming projects. Aside from the agreement, though -- which was announced back in August -- they don't really have anything to actually show. Just the repackaging of seven Disney/Star Wars/Marvel titles from the past several years, all of which, I believe, had already been converted to a digital format for Amazon. Most of what they're promoting in their reporting is about all the grand plans they have in place for later.
Despite all the positive vibes they try to give off, it doesn't seem like the market is buying into it. Their stock price dropped ~10% almost immediately, and has lost another 10-ish% in the days since. As of this writing, it currently sits at the lowest it's been since just before the announcement with Disney, meaning that they've completely wiped out all the gains they got from the agreement in the first place and they're once again sitting at about 40% of the IPO price from June 2024.
Back in September, I wrote...
I don't wish ill against Webtoons, and don't want to rain on their parade exactly, but I think it's worth keeping some perspective here too... I think what we're looking at here is a company trying very hard to make things work, and they've thrown a crudload of time and money at it. But given their current operations, I don't think there's anything to be particularly excited about. This Disney deal doesn't strike me as likely to bring in a ton of opertaing capital -- if the licensing costs themselves don't increase their quarterly losses -- and I would just urge any creators posting through Webtoon to make sure that that isn't their ONLY venue for posting/earning money from their webcomic. You should never rely on a single source to begin with, and this setup with Disney doesn't strike me as being able to change Webtoon's direction.In that 2024 annual report, they cite several potential risk factors. (Detailing risks in an annual report is pretty standard; don't read too much into the fact those are there.) They list three things that they'll need to nail down in order to grow their business and become profitable: attract high quality creators and their comics, attract more users, and "innovate and expand our advertising business." (The wording is a bit ambiguous there; I'm not sure if they talking about innovation broadly or specifically within the context of advertising.) That report is from March 2025 and I'm not sure I can say they've really done anything they mentioned about growing their business. I mean, you coudl argue they have high qualities creators by virtue of the already-created comics from Disney/Star Wars/Marvel, but that's a bit of a stretch, I think. Their "Monthly Paying Users" has remained pretty flat year-over-year, as has revenue. And I'm not aware of any innovations -- either within the context of advertising or without; indeed, my understanding is they've actually stripped away functionality.
I found a quote on GlassDoor from a former employee who was laid off in early 2024: "I thought the strategy, as it was communicated to me, was muddy and often changed radically with little or no notice... it's still unclear what direction the company is headed." I think that sums up my opinion as well. They really don't seem to have a sense of what to do with their platform to make money. Argueably, everyone who's tried making a "single source" platform for webcomics has failed, and the only reason Webtoon is still around is because they had several years being propped up financially by Naver. With them no longer in the picture, I have to wonder if they'll remain around long enough to discover that elusive formula for success.
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