Webtoon Entertainment Inc. forecast second-quarter revenue between $332 million and $342 million, representing growth of 1.7% to 4.6% on a constant currency basis compared to the same period last year.

The digital comics platform's shares declined in after-hours trading following the announcement of the revenue guidance, which suggested slower growth than some investors had anticipated.

The company's revenue projection indicates continued expansion in its digital comics business, though at a more measured pace than in previous quarters. Webtoon operates a popular platform for digital comics and graphic novels, serving readers globally.

Despite the modest near-term outlook, the company has indicated it is targeting a return to double-digit growth rates by the end of the current fiscal year. This suggests management expects business conditions to improve in the latter half of 2024.

Webtoon's performance reflects broader trends in the digital entertainment sector, where companies are navigating changing user engagement patterns and economic headwinds that have affected advertising and subscription revenues across the industry.