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Naver's Q1 2024 Results: Robust Growth Fueled by AI Adoption

Source: Naver Corp

Seoul, South Korea - Naver Corp (035420. KS) reported strong first-quarter results, with revenue increasing 10.8% yearly to KRW 2.53 trillion (US$1.85 billion), driven by growth in all major business segments.

Adjusted EBITDA increased 19.0% to KRW 581 billion (US$425.5 million), benefiting from improved profitability in the company's content business and expanded operating profit at its Poshmark subsidiary.

Operating income increased 32.9% to KRW 439.3 billion (US$321.7 million), with the operating margin reaching 17.4%, up from 16.0% in the previous quarter.

Strong profitability was partly due to a decrease in stock-based compensation expenses caused by fluctuations in the company's stock price.

Naver's Search Platform segment recorded a revenue increase of 6.3% year-on-year to KRW 905.4 billion (US$ 662.9 million), driven by improvements in search advertising and strong performance of performance-based advertising.

The Commerce segment recorded a revenue increase of 16.1% to KRW 703.4 billion (US$515.2 million), supported by new revenue streams such as guaranteed delivery and brand solutions and the consolidation of SODA, a fashion platform.

The Fintech segment recorded an 11.2 percent increase in revenue to KRW 353.9 billion (US$259.2 million), with total payment volume on Naver Pay increasing by 24.8 percent to KRW 16.7 trillion (US$12.2 billion).

The content business grew 8.5 percent year-on-year to KRW 446.3 billion (US$ 326.9 million) despite a sequential decline due to the deconsolidation of Naver Z, a subsidiary focused on the metaverse.

Naver's cloud business was a strong performer, with revenue up 25.5 percent to KRW 117 billion (US$ 85.7 million), driven by the monetization of AI solutions. 

One is HyperCLOVA X, an AI language model adopted by major Korean companies such as the Bank of Korea and HD Hyundai.

Naver CEO Choi Soo-yeon said the company is focused on responding to market trends and discovering new business opportunities through its recently restructured organization. 

It is also leveraging its core technologies to provide differentiated experiences and strengthen its long-term competitiveness.