WEBTOON Entertainment Inc. (WBTN) shares experienced a pre-market plunge of 9.39% on Tuesday.
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.
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