Naver, a leading South Korean internet company, has announced robust financial results for the fourth quarter of 2024. The company reported revenues of KRW 2.88 trillion (approximately USD 2.23 billion), operating income of KRW 542 billion (approximately USD 419.9 million), and an adjusted EBITDA of KRW 745.9 billion (approximately USD 577.8 million).

The revenue for the fourth quarter marked a 13.7% increase year-over-year and a 6.3% rise from the previous quarter, driven primarily by growth in search platform and commerce operations. Adjusted EBITDA continued its upward trend for the ninth consecutive quarter, showing a 28.6% year-over-year increase and a 6.7% quarter-over-quarter rise. Similarly, operating income grew for the eighth consecutive quarter, up 33.7% year-over-year and 3.2% quarter-over-quarter, with operating margins improving by 2.8 percentage points to 18.8%.

For the full year of 2024, Naver’s revenue grew by 11.0% over the previous year, totaling KRW 10.737 trillion (approximately USD 8.31 billion). Annual operating income increased by 32.9% to KRW 1.9793 trillion (approximately USD 1.53 billion), and adjusted EBITDA rose by 24.9% to KRW 2.6644 trillion (approximately USD 2.06 billion).

Breakdown of fourth quarter revenues by business segment includes: KRW 1.647 trillion (approximately USD 1.27 billion) from the search platform, KRW 775.1 billion (approximately USD 600 million) from commerce, KRW 400.9 billion (approximately USD 310.4 million) from fintech, KRW 467.3 billion (approximately USD 361.9 million) from content, and KRW 177.6 billion (approximately USD 137.5 million) from cloud services.

The search platform sector saw a 14.7% growth year-over-year and 6.7% quarter-over-quarter, fueled by ongoing enhancements in platform competitiveness and advertising efficiency. Commerce grew by 17.4% year-over-year and 6.9% quarter-over-quarter, boosted by the October launch of the Naver Plus Store and enhanced membership benefits.

Fintech revenues rose 12.6% year-over-year and 4.1% quarter-over-quarter, driven by the sustained growth of Smart Store and an increase in external payment volumes. The content sector saw modest growth of 0.2% year-over-year and 1.0% quarter-over-quarter, supported by paid subscriptions linked to webtoon AI content and camera apps. Cloud services reported a significant increase of 41.1% year-over-year and 22.8% quarter-over-quarter, fueled by expansions in NeuCloud and Line Works, as well as steady revenues from a digital twin project in Saudi Arabia.

Choi Soo-Yeon, CEO of Naver, remarked, “This year is pivotal as we fully implement our On-service AI strategy across all Naver services. By leveraging AI technology to elevate our platform, we aim to create new value and business opportunities, further enhancing Naver’s distinct competitive edge. In commerce, the forthcoming launch of the new Naver Plus Store app in the first half of the year will transform our search-focused shopping experience into a more personalized, discovery-driven model, providing a more intuitive and powerful shopping experience.”

For more information, please click here.