Nexon FY2024 Q3 Earnings Conference Call: Q&A Summary

Key insights

6 takeaways

01
Nexon maintains its 2027 growth targets despite recent revenue fluctuations in Dungeon&Fighter Mobile and The First Descendant, which management characterizes as natural lifecycle stabilization.See it on page 1
02
MapleStory recorded 23% year-over-year revenue growth in Q3 2024, with international markets now contributing 40% of the franchise's total revenue.See it on page 2
03
The company is implementing fundamental overhauls to progression systems and business models for the PC version of Dungeon&Fighter in China and MapleStory in Korea to address 2024 performance challenges.See it on page 2
04
Nexon plans to prioritize a multi-platform development strategy and the expansion of the Dungeon&Fighter intellectual property into Western markets throughout 2025.See it on page 4
05
Human resource costs are expected to moderate in Q4 2024 following the conclusion of performance-based bonuses tied to recent title launches.See it on page 3
06
The FC franchise continues to hold a dominant market position in Korea, serving as a core pillar alongside the company's other primary franchises.See it on page 2

Summary

Nexon’s fiscal year 2024 third-quarter earnings discussion focuses on the stabilization of key mobile titles, the long-term growth strategy for major franchises, and the operational outlook for 2025. The company maintains its 2027 growth targets, emphasizing that recent fluctuations in revenue for titles like Dungeon&Fighter Mobile and The First Descendant represent natural lifecycle stabilization rather than structural decline. Management remains committed to an evergreen service model, utilizing major content updates and seasonal events to reinvigorate player engagement and return titles to growth trajectories.

Performance across the company’s three primary franchises shows a mixed but strategic landscape. While the FC franchise maintains a dominant market position in Korea, both the PC version of Dungeon&Fighter in China and MapleStory in Korea faced challenges throughout 2024. To address these, the company is implementing fundamental changes, including progression system overhauls and business model adjustments. Notably, MapleStory has achieved significant success outside of Korea, recording 23% year-over-year growth in the third quarter, with international markets now accounting for 40% of the franchise’s revenue.

Financial and operational planning remains focused on long-term scalability. Human resource costs are expected to moderate in the fourth quarter following the initial performance-based bonuses associated with new title launches, though the company intends to continue investing in talent to support its 2027 objectives. Looking ahead to 2025, the company prioritizes a multi-platform development strategy and the expansion of the Dungeon&Fighter intellectual property into Western markets. Success will be measured by the sustained performance of existing live services, the rebound of recent releases, and the effective execution of the development pipeline established during the company’s recent capital markets briefing.