Naver posted its highest-ever quarterly revenue in the second quarter (April–June), driven by the expansion of artificial intelligence (AI) services and the growth of its global consumer-to-consumer (C2C) business centered on used-goods platforms in North America and Europe. However, operating profit declined 0.2% year-on-year as increased investment in AI infrastructure to secure future growth drivers pushed up costs.

Naver announced on the 7th that its consolidated revenue for the second quarter of this year came to KRW 3,388.8 billion, with operating profit of KRW 520.3 billion. Revenue rose 16.2% from the same period last year, marking a record high on a quarterly basis. The integration of AI into its core businesses such as advertising and shopping appears to have driven revenue growth. Revenue from Naver’s platform segment—which includes search and advertising—was KRW 1,902.2 billion, up 12.3% year-on-year. Targeting advertisements, which analyze users’ interests using AI and expose ads in a customized manner, supported this growth trend.

The “AI Briefing Ads,” officially launched at the end of last month, are also delivering results. According to Naver, the click-through rate of AI Briefing Ads is more than 30% higher than that of existing search ads, and the purchase conversion rate is more than three times higher. Observers say it has shown potential to grow into a new revenue model that combines AI search services with advertising.

The global consumer-to-consumer (C2C) business, led by overseas used-goods platforms, also grew rapidly. As transaction volumes expanded on platforms acquired by Naver, such as Poshmark, the largest used-goods marketplace in North America, and Wallapop, a European used resale platform, related revenue surged 74.9% year-on-year. Revenue from the global C2C business reached KRW 1,015.9 billion.

The financial platform segment, led by the Naver Pay easy payment service, also continued its growth momentum thanks to an increase in external payment channels. Revenue in this segment rose 16.0% to KRW 470.7 billion.

While revenue increased, operating profit fell by 0.2%. This was due to higher costs associated with expanding servers and equipment to stably operate advanced AI services. Naver plans to continue investing to secure AI competitiveness, even at the expense of short-term profitability.

Naver CEO Choi Soo-yeon said, “By pursuing the ‘AI Factory’ business through a strategic partnership with global semiconductor company NVIDIA, we have laid the groundwork to quickly scale the business while reducing initial capital burdens,” adding, “We will secure customers in advance to generate meaningful revenue and profit at an early stage and secure new growth drivers in the global AI computing market.”

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