ConnectWave Reports 460.3 Billion KRW in Operating Revenue for 2023... "Growth Trend Continues"

Connectwave, a specialized e-commerce company, continued its growth trend in 2023 despite the slowdown in the e-commerce market and unfavorable external environment following the reopening.

Connectwave announced on the 14th that it recorded a consolidated total transaction amount (GMV) of KRW 12.6 trillion, operating revenue of KRW 460.3 billion, and adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of KRW 59 billion in 2023. Compared to the same period last year, GMV increased by 1.2%, operating revenue by 1.7%, and adjusted EBITDA by 10.5%. The adjusted EBITDA margin also improved from 11.8% to 12.8% in 2023.

Looking at the 2023 performance by business segment, the ‘Data Commerce (Danawa, Enuri, BuiltOn, SweetTracker)’ segment recorded a GMV of KRW 2.5 trillion, growing 6.4% compared to 2022 by expanding categories beyond computers and home appliances to fashion, beauty, and food and beverage.

The monthly active users (MAU) decreased by 3.3% from an average of about 18.8 million in 2022 to about 18.2 million in 2023, affected by the slowdown in the e-commerce market growth and reduced price comparison traffic due to decreased demand for computers and home appliances. However, operating revenue grew 23.7% from KRW 158.1 billion in 2022 to KRW 195.5 billion in 2023, minimizing the impact of decreased demand for computers and home appliances through the inclusion of Danawa and efforts to expand categories.

The ‘E-commerce Solutions (MakeShop, PlayAuto, LinkPrice)’ segment saw growth driven by an increase in customers (sellers) of PlayAuto (multi-market integrated solution) and MySoho (mobile shopping mall building solution), recording 45,894 sellers, a 5.9% increase compared to 2022. Despite the overall slowdown in the e-commerce market and sluggish online advertising market, GMV grew slightly by 0.2% to KRW 9.8 trillion in 2023. Operating revenue decreased somewhat to KRW 97.9 billion in 2023 from KRW 119.2 billion in 2022 due to the discontinuation of low-profit product sales and a decline in advertising revenue caused by the downturn in the online advertising market. However, excluding the discontinued business, the operating revenue decline rate is 5.4%.

The Cross-border Commerce (Malltail, ShipGet) segment recorded 2.29 million shipments in 2023, a 3.1% increase compared to 2022, despite unfavorable external conditions such as high exchange rates and soaring logistics costs, driven by increased overseas direct purchases of fashion and health functional foods from the U.S. and growth in cross-border commerce between countries. Although the number of shipments increased, GMV decreased by 8.2% compared to 2022 to KRW 220 billion due to a decline in overseas direct purchases of large home appliances and high-priced alcoholic beverages. Operating revenue was KRW 156.1 billion, down 5.2% from the previous year, as purchase agency and delivery agency fees per transaction were maintained.

Lee Geonsu, CEO of Connectwave, said, "We will continuously enhance services for customers and sellers by strengthening the fundamentals of data commerce, e-commerce solutions, and cross-border commerce businesses centered on ‘PLAi (Play)’, the e-commerce industry’s first specialized generative AI to be established this year, and by expanding synergy among platforms.”