Nexon’s Q3 2024 Highlights: Strong Performance, But Stock Dives 14% Given Elevated Expectations

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Nexon’s third-quarter results for 2024 reveal strong growth and momentum driven by popular game franchises and a few standout new titles. Overall, revenues and profits increased, but the market expected more, which sent Nexon's stock price crashing 14%.

Key Financial and Regional Growth Highlights

Overall Growth: Nexon reported a 13% year-over-year revenue increase, reaching ¥135.6 billion. Mobile gaming contributed significantly, alongside notable growth in North America and Europe. These gains helped balance a slight decline in PC revenues.
Regional Standouts:
- China: Fueled by Dungeon&Fighter Mobile, China saw a revenue jump of 138% year-over-year.
- North America & Europe: Revenue nearly doubled here, thanks to the success of The First Descendant and steady engagement in MapleStory.

While Nexon has long received most of its revenues from PC, the gap is finally beginning to narrow between PC & Mobile with the launch of Dungeon Fighter Online Mobile in China.

Franchise Performances and Updates

Dungeon&Fighter Mobile: A top performer in China, Dungeon&Fighter Mobile has settled into a steady cadence after an explosive start. Nexon is focusing on frequent updates, with a major content expansion planned for early 2025.
MapleStory: While MapleStory faced year-over-year challenges in Korea, other regions saw positive momentum. Hyperlocalization—a strategy that tailors in-game content to local preferences—boosted MapleStory’s popularity in Japan, North America, and Europe, delivering a record Q3 revenue in these areas.

New Titles and Future Outlook

The First Descendant: Launched this year, The First Descendant has proven popular, especially among Western audiences. The game’s emphasis on high-quality updates and player underscores Nexon’s Western market strategy, aiming to keep engagement levels high.
Releases:
- Project OVERKILL: Set to debut at the G-Star expo in November, this 3D action title is expected to draw attention as Nexon steps further into immersive and action-driven gaming experiences.
- Dungeon&Fighter: Arad: Expanding the Dungeon&Fighter universe into a 3D open-world environment, Arad is designed to appeal to global audiences looking for an enriched franchise experience.

Nexon’s Q3 shows a company on a steady rise, with a balanced mix of established hits and new projects. While many of these new projects in the West launched with explosive popularity (think The First Descendant and The Finals, both games have seen the majority of their active players disappear).

Still, Nexon isn't afraid to push forward with new launches. Time will tell if these new games can have any sort of lasting power. Personally, I'm interested in seeing what Nexon does with MapleStory Worlds, which soft launched recently.