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NAVER Upholds Double-digit Growth 
Across All Business Segments in Q1

-   NAVER posts operating revenue of KRW 1.845 trillion and operating profit of KRW 301.8 billion in the first quarter of 2022 

2022-04-21

NAVER Corporation (KRX: 035420) announced financial results today for the first quarter, which ended March 31, 2022. The company reported revenue of KRW 1.845 trillion, operating income of KRW 301.8 billion and adjusted EBITA of KRW 419.9 billion in the quarter.

 

NAVER’s quarterly consolidated operating revenue reached KRW 1.845 trillion (approx. USD 1.49 billion) as it rose 23.1% YoY, and fell 4.3% QoQ. Quarterly consolidated operating income recorded KRW 301.8 billion (approx. USD 244 million), increasing 4.5% YoY and decreasing 14.1% QoQ.
 
By business segment, NAVER’s operating revenue in Q1 from Search was KRW 843.2 billion (approx. USD 682 million); Commerce, KRW 416.1 billion (approx. USD 336 million); Fintech, KRW 274.8 billion (approx. USD 222 million); Content, KRW 217 billion (approx. USD 175 million); and Cloud, KRW 94.2 billion (approx. USD 76 million).
 
Search revenue grew 12% YoY to KRW 843.2 billion, driven by the improved search quality and reorganization of NAVER Smart Place, an integrated online marketing and business solution platform that supports the digital transformation of 2 million registered offline SMEs. Search revenue fell 4.9% QoQ, largely driven by seasonality.
 
Commerce revenue rose 28.3% YoY and 2.7% QoQ to KRW 416.1 billion as Gross Merchandise Value (GMV) of new commerce verticals showed robust growth, rising 78% YoY. These new revenue streams include NAVER Brandstore (online commerce platform for major brands with integrated marketing, commerce and business solutions), Shopping LIVE (livestreaming commerce platform), Groceries, Gifts, etc. KREAM (C2C platform) and AMUSE (Beauty Brand) also contributed to total GMV growth.

 

Fintech revenue rose 31.1% YoY to KRW 274.8 billion, and fell 6.9% QoQ due to the commission cut of NAVER Pay in January and changes in accounting method from the previous year. NAVER Pay’s total payment value (TPV) reached KRW 11.2 trillion (approx. USD 9.07 billion), up 33.9% YOY and 3% QoQ. 
 
Content revenue rose 65.9% YoY, and fell 7% QoQ to KRW 217 billion due to Webtoon accounting method changes, the exclusion of V LIVE from consolidation and revenue reclassification of KREAM and AMUSE. Webtoon’s revenue increased 79.5% YoY, and has continued to grow steadily with 180 million global monthly active users (MAU) and 15 million U.S. MAU.
 
NAVER’s cloud business revenue increased 15.3% YoY, and fell 12.1% QoQ to KRW 94.2 billion due to seasonality in the public sector.
 
“On top of Search, Shopping, Local, Pay, Webtoon, ZEPETO and Cloud, which are global-tier services and businesses, NAVER offers breadth of value across domestic and global, online and offline, users and businesses, entrepreneurs and creators, creating a potential unsurpassed by others,” said NAVER CEO Choi Soo-yeon. 

 

Ms. Choi added, “The new management team will play a pivotal role in strengthening business linkages across search, commerce, payment and fintech, and create synergies to bring sustainable growth and enhanced profitability for the domestic businesses. In the global market, we will quickly bring results through active partnerships and stand-alone growth from businesses such as Webtoon.”

 

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[Table] NAVER's 1^st Quarter Earnings Result

* EBITA+stock-based compensation
* KREAM(C2C platform) and AMUSE(Beauty Brand) were reclassified from Content segment starting this quarter