Core Viewpoint - Webtoon Entertainment (WBTN) reported quarterly earnings of $0.07 per share, exceeding the Zacks Consensus Estimate of $0.02 per share, but down from $0.20 per share a year ago [1][2] Financial Performance - The earnings surprise for the quarter was +250.00%, with the company having surpassed consensus EPS estimates in all four quarters over the past year [2] - Webtoon generated revenues of $348.27 million for the quarter ended June 2025, which was 2.06% above the Zacks Consensus Estimate and an increase from $320.97 million year-over-year [3] Stock Performance - Webtoon shares have declined approximately 32.7% since the beginning of the year, contrasting with the S&P 500's gain of 8.4% [4] - The current Zacks Rank for Webtoon is 3 (Hold), indicating expected performance in line with the market in the near future [7] Future Outlook - The consensus EPS estimate for the upcoming quarter is $0.03 on revenues of $373.35 million, and for the current fiscal year, it is $0.17 on revenues of $1.43 billion [8] - The Internet - Software industry, to which Webtoon belongs, is currently ranked in the top 39% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [9]

Financial Data and Key Metrics Changes - Revenue grew by 5.5% on a constant currency basis and reported revenue was up 8.5% compared to the prior year [10] - Net loss decreased to $3.9 million from $76.6 million in the previous year, primarily due to lower general and administrative expenses [10][23] - Adjusted EBITDA was $9.7 million, down from $20.4 million in the same quarter of 2024 [11][22] - Adjusted earnings per share was $0.07 compared to $0.18 in the prior year [23] Business Line Data and Key Metrics Changes - Paid content revenue grew by 2% on a constant currency basis, driven by strength in Japan, while declines were noted in Korea and the rest of the world [14] - Advertising revenue increased by 10.2% on a constant currency basis, with growth in Korea and Japan, but a decline in the rest of the world [15] - IP Adaptations revenue surged by 42.6% year on year on a constant currency basis, with significant contributions from Korea [16] Market Data and Key Metrics Changes - In Korea, revenue grew by 9.2% year over year on a constant currency basis, with MAU decreasing by 11.1% [18] - Japan saw revenue growth of 5.7% year over year, with MAU increasing by 2.8% [19] - The rest of the world experienced a revenue decline of 4.4% year over year, driven by declines in paid content and advertising [20] Company Strategy and Development Direction - The company is focusing on enhancing user experience through significant product updates and expanding its library with popular titles [6][7] - A partnership with Disney was announced to bring iconic comics to the platform, which is expected to drive user growth and engagement [7][31] - The company aims to maintain investment in marketing to drive future growth while improving product offerings [24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing strong user engagement and the potential for monetization through new content and platform upgrades [9][24] - The company anticipates revenue growth in Q3 2025 in the range of 9.4% to 12.2% on a constant currency basis [24] - Management acknowledged challenges from external factors, such as government bans affecting user metrics, but remains focused on long-term growth strategies [12][68] Other Important Information - The company is experiencing a decline in overall MAU, primarily due to the impact of Wattpad, but is optimistic about future growth in this area [12][68] - Gross profit for the quarter increased by 5.1% to $87.3 million, with a gross margin of 25.1% [21] Q&A Session Summary Question: Impact of Disney partnership on user growth and monetization - Management highlighted the strategic significance of the Disney collaboration, emphasizing the potential for accelerated user growth and engagement without immediate financial impact [31][32] Question: Marketing arrangements related to the Disney partnership - Management noted the importance of reaching Gen Z consumers and attracting new users, but did not disclose specific marketing arrangements [34][35] Question: User trends and onboarding process impact - Management discussed the new onboarding process and product updates aimed at increasing user engagement and ARPU, with promising early results [39][40] Question: Advertising outlook for Q3 and beyond - Management indicated strong growth in advertising revenue, particularly in Korea and Japan, while acknowledging the need for foundational work in North America [44][46] Question: Strategy for user-generated content alongside established IP - Management stated that the collaboration with established IP complements the creator ecosystem, enhancing user acquisition and engagement [49][51] Question: Drivers of Q3 revenue growth and sustainability - Management clarified that the Q3 guidance does not include short-term impacts from the Disney collaboration, focusing instead on strong fundamentals in paid content and advertising [55][56] Question: Exclusivity of new original web comic series from Disney - Management expressed excitement about both original and existing series, noting that the collaboration acknowledges Webtoon as a leader in the format [60][62] Question: Advertising business performance excluding Wattpad impact - Management acknowledged the challenges posed by Wattpad but remains optimistic about the long-term potential of the rest of the world advertising market [68]

[Financial and Operational Highlights](index=1&type=section&id=Financial%20and%20Operational%20Highlights) WEBTOON Entertainment reported strong Q2 2025 results, exceeding revenue and Adjusted EBITDA guidance. Revenue grew 8.5% to $348.3 million (5.5% on a constant currency basis), driven by growth in all segments. The company significantly narrowed its Net Loss to $3.9 million from $76.6 million a year ago, primarily due to lower G&A expenses. However, Adjusted EBITDA decreased to $9.7 million. The company maintains a strong balance sheet with $581.5 million in cash and no debt Q2 2025 Key Financial Metrics (vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $348.3M | $321.0M | +8.5% | | Revenue (Constant Currency) | $338.7M | $321.0M | +5.5% | | Net Loss | ($3.9M) | ($76.6M) | +94.9% | | Adjusted EBITDA | $9.7M | $20.4M | -52.5% | | Diluted Loss Per Share | ($0.03) | ($0.70) | +95.7% | | Adjusted EPS | $0.07 | $0.18 | -61.1% | - The company maintains a strong liquidity position with approximately **$581.5 million** in cash and cash equivalents and no debt on its balance sheet[1](index=1&type=chunk)[4](index=4&type=chunk) - A new strategic collaboration was announced with Disney to bring iconic comics from Marvel, Star Wars, Disney Studios, and 20th Century Studios to WEBTOON's vertical-scroll format[5](index=5&type=chunk) [Management Commentary and Outlook](index=1&type=section&id=Management%20Commentary%20and%20Outlook) Management expressed satisfaction with the strong Q2 results, which surpassed guidance. The CEO highlighted growth across all three revenue streams (Paid Content, Advertising, and IP Adaptations) and emphasized platform investments, such as updates to the English-language app, to drive user engagement. The company provided a positive outlook for Q3 2025, forecasting continued revenue growth and positive Adjusted EBITDA - CEO Junkoo Kim stated that both revenue and Adjusted EBITDA came in above the top end of the company's guidance range for the quarter[3](index=3&type=chunk) - Growth was driven by all three revenue streams: Paid Content, Advertising, and IP Adaptations[3](index=3&type=chunk)[4](index=4&type=chunk) - The company is investing in platform enhancements, such as updates to its English-language webcomic app, to improve content discovery and drive deeper user engagement[3](index=3&type=chunk)[5](index=5&type=chunk) Third Quarter 2025 Outlook | Metric | Guidance Range | | :--- | :--- | | Revenue Growth (Constant Currency) | 9.4% - 12.2% | | Revenue (at current FX rates) | $380M - $390M | | Adjusted EBITDA | $2.0M - $7.0M | | Adjusted EBITDA Margin | 0.5% - 1.8% | [Financial Statements](index=5&type=section&id=Financial%20Statements) The consolidated financial statements provide a detailed view of WEBTOON's financial position and performance. The balance sheet shows an increase in total assets to $2.01 billion, supported by strong cash reserves. The statement of operations reflects an 8.5% year-over-year revenue increase in Q2 and a significantly narrowed net loss. The cash flow statement indicates cash used in operations for the first six months of 2025, a reversal from the cash provided in the same period of 2024, alongside positive cash flow from investing activities [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, the company's balance sheet remains robust with total assets of $2.01 billion, up from $1.94 billion at the end of 2024. Cash and cash equivalents increased slightly to $581.5 million. Total liabilities grew to $411.8 million, while total equity increased to $1.56 billion Selected Balance Sheet Data (in thousands USD) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $581,546 | $572,402 | | Total current assets | $862,018 | $836,372 | | Total assets | $2,009,759 | $1,935,334 | | Total current liabilities | $339,848 | $313,224 | | Total liabilities | $411,802 | $378,873 | | Total equity | $1,560,280 | $1,519,881 | [Consolidated Statements of Operations](index=8&type=section&id=Consolidated%20Statements%20of%20Operations) For the second quarter ended June 30, 2025, revenue increased 8.5% YoY to $348.3 million. The company recorded a net loss of $3.9 million, a substantial improvement from a $76.6 million net loss in Q2 2024. This improvement was primarily driven by a significant reduction in general and administrative expenses, which fell from $138.7 million to $65.0 million YoY Q2 Statement of Operations Highlights (in thousands USD) | Account | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Revenue | $348,271 | $320,972 | | Cost of revenue | ($260,992) | ($237,915) | | General and administrative expenses | ($64,972) | ($138,705) | | Operating income (loss) | ($8,763) | ($79,096) | | Net income (loss) | ($3,883) | ($76,568) | | Diluted loss per share | ($0.03) | ($0.70) | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash used in operating activities was $13.0 million, a decrease from $22.4 million provided by operating activities in the prior-year period. Net cash provided by investing activities was $5.7 million, compared to $7.3 million used in the prior year. Financing activities were minimal, and the company's cash balance increased by $9.1 million during the period Six-Month Cash Flow Summary (in thousands USD) | Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | ($12,951) | $22,394 | | Net cash provided by (used in) investing activities | $5,711 | ($7,306) | | Net cash provided by (used in) financing activities | $229 | $336,053 | | Effect of exchange rate changes | $16,155 | ($10,581) | | **Net increase in cash** | **$9,144** | **$340,560** | [Non-GAAP Financial Measures and Reconciliations](index=3&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) This section defines the non-GAAP metrics used by management, such as Adjusted EBITDA and Revenue on a Constant Currency Basis, to assess performance. It provides detailed reconciliations of these measures to their nearest GAAP equivalents. For Q2 2025, constant currency revenue growth was 5.5%. Adjusted EBITDA was $9.7 million, reconciled from a net loss of $3.9 million by adding back items like stock-based compensation and restructuring costs [Definitions of Non-GAAP Measures](index=3&type=section&id=Definitions%20of%20Non-GAAP%20Measures) The company uses several non-GAAP measures to provide additional insight into its financial performance. Key metrics include Adjusted EBITDA, which excludes items like stock-based compensation; Adjusted EPS, which makes similar adjustments to earnings per share; and Revenue on a Constant Currency Basis, which removes the impact of foreign currency fluctuations - **Adjusted EBITDA:** Defined as net income (loss) adjusted for interest, taxes, depreciation, amortization, stock-based compensation, and other non-recurring costs[17](index=17&type=chunk) - **Adjusted EPS:** Calculated by adjusting Net Income (Loss) for the same items as Adjusted EBITDA and dividing by weighted average shares outstanding[19](index=19&type=chunk)[20](index=20&type=chunk) - **Revenue on a Constant Currency Basis:** Revenue adjusted to remove the impact of foreign currency rate fluctuations, calculated by applying prior year average exchange rates to current period local currency revenue[21](index=21&type=chunk) [Reconciliation of Revenue to Constant Currency Basis](index=11&type=section&id=Reconciliation%20of%20Revenue%20to%20Constant%20Currency%20Basis) In Q2 2025, reported total revenue was $348.3 million. After adjusting for a negative $9.5 million impact from foreign currency fluctuations, the revenue on a constant currency basis was $338.7 million, representing 5.5% YoY growth. IP Adaptations showed the strongest constant currency growth at 42.6%, followed by Advertising at 10.2% and Paid Content at 2.0% Q2 2025 Revenue to Constant Currency Reconciliation (in thousands USD) | Description | Amount | Growth vs. Q2 2024 | | :--- | :--- | :--- | | Total Revenue (GAAP) | $348,271 | 8.5% | | Effects of foreign currency rate fluctuations | ($9,543) | N/A | | **Revenue on a Constant Currency Basis** | **$338,728** | **5.5%** | [Reconciliation of Net Loss to Adjusted EBITDA](index=12&type=section&id=Reconciliation%20of%20Net%20Loss%20to%20Adjusted%20EBITDA) For Q2 2025, the company reconciled its Net Loss of $3.9 million to an Adjusted EBITDA of $9.7 million. Key adjustments included adding back $8.4 million in depreciation and amortization, $8.5 million in stock-based compensation, and $1.5 million in restructuring and IPO-related costs. This resulted in an Adjusted EBITDA Margin of 2.8%, down from 6.3% in the prior year Q2 2025 Net Loss to Adjusted EBITDA Reconciliation (in thousands USD) | Description | Amount | | :--- | :--- | | Net income (loss) | ($3,883) | | Depreciation and amortization | $8,407 | | Stock-based compensation expense | $8,463 | | Restructuring and IPO-related costs | $1,476 | | Other adjustments | ($3,391) | | **Adjusted EBITDA** | **$9,662** |

Core Insights - WEBTOON Entertainment reported strong second quarter results, with revenue and Adjusted EBITDA exceeding the top end of guidance ranges [1][3] - Total revenue for the second quarter was $348.3 million, reflecting an 8.5% increase year-over-year, while revenue growth on a constant currency basis was 5.5% [1][6] - The company experienced a net loss of $3.9 million, a significant improvement compared to a net loss of $76.6 million in the same quarter last year [1][6] Financial Performance - Adjusted EBITDA for the second quarter was $9.7 million, down from $20.4 million in the prior year, resulting in an Adjusted EBITDA margin of 2.8% compared to 6.3% [1][6] - The diluted loss per share was $0.03, compared to a diluted loss per share of $0.70 in the prior year [6] - Cash and cash equivalents stood at approximately $581.5 million, with no debt reported [1][6] Revenue Breakdown - Revenue growth was driven by all three revenue streams: Paid Content, Advertising, and IP Adaptations [3][6] - Paid Content revenue was $274.9 million, up 5.4% year-over-year, while Advertising revenue increased by 11.9% to $45.2 million [6][35] - IP Adaptations revenue saw a significant increase of 41.8%, reaching $28.1 million [6][35] Strategic Initiatives - The company announced a strategic collaboration with Disney to bring iconic comics from Marvel, Star Wars, and other franchises to its platform [4] - Recent updates to the English-language webcomic app aim to enhance user experience and engagement [3] Outlook - For the third quarter of 2025, the company expects revenue growth on a constant currency basis to be in the range of 9.4%-12.2%, translating to revenue between $380 million and $390 million [7]

Core Insights - WEBTOON Entertainment Inc. plans to report its second quarter 2025 financial results on August 12, 2025, after market close [1] - A conference call will be held at 4:30 p.m. ET to discuss the results [1] Company Overview - WEBTOON Entertainment is a leading global entertainment company known for its storytelling platforms and is a pioneer in the mobile webcomic format [3] - The company has transformed comics and visual storytelling for fans and creators [3] - WEBTOON Entertainment's CANVAS UGC platform allows anyone to become a creator, contributing to a diverse range of content [4] User Engagement and Partnerships - The company boasts approximately 150 million monthly active users across its platforms [5] - Its ecosystem includes WEBTOON, Wattpad, WEBTOON Productions, and other brands, enhancing its reach in the digital storytelling space [5] - WEBTOON Entertainment has partnerships with major platforms like Netflix, Prime Video, and Crunchyroll, as well as collaborations with brands such as Discord, HYBE, and DC Comics [4]

Summary of WEBTOON Entertainment (WBTN) FY Conference Call Company Overview - WEBTOON Entertainment operates as a global storytelling hub with a significant user base of 153 million active users, primarily outside Asia, despite its origins in South Korea [5][6][12] - The company has a diverse set of brands, including Line Manga, and has achieved significant market penetration in Japan, where it is the number one consumer app [10][11] Financial Performance - In 2024, WEBTOON reported GAAP revenue of $1.35 billion, with a 13% growth in constant currency [8][9] - The company achieved a 4.2% growth in total company MAU and a 19% growth in web comic app MAU in North America [9][10] - The average revenue per user (ARPU) is approximately $14 in South Korea, $23 in Japan, and around $6 to $8 in the rest of the world [34][40] User Engagement and Content Creation - Users spend an average of 30 to 60 minutes daily on the platform, exploring user-generated content from over 24 million creators [6][7] - The platform has successfully transformed amateur creators into professionals, with average earnings of nearly $50,000 per year, and top creators earning up to $1 million annually [7][8] - The company has a unique revenue-sharing model, having distributed $2.8 billion to creators, which fosters a strong creator ecosystem [15][27] Business Model and Monetization - WEBTOON's monetization strategy includes microtransactions for content access, with prices ranging from $0.15 to $0.70 per episode [17][41] - The company has a dual revenue model, with approximately 12% of revenue coming from advertising and 8% from crossover IP [43] - The ad model is still in its early stages outside Korea, with plans for significant growth in North America as the company builds its ad capabilities [46][47] Market Expansion and Growth Strategy - The company is focused on geographic expansion, particularly in North America and Japan, where it has seen rapid growth [16][36] - WEBTOON aims to leverage its unique content and creator ecosystem to capture a larger share of the global market, with a specific focus on the 18 to 25 demographic [32][38] - The addressable market is substantial, with plans to increase penetration in the rest of the world, which currently stands at less than 5% [35][28] Competitive Landscape - WEBTOON positions itself as a unique player in the market, claiming no direct competition due to its extensive creator ecosystem and global reach [66][72] - The company differentiates itself from competitors like Kakao and Pikuma by allowing creators to publish globally and providing a supportive revenue-sharing model [68][70] IPO and Future Outlook - The recent IPO was motivated by the desire to transition from a subsidiary of a South Korean tech company to a globally recognized entity, enhancing its operational capabilities and market presence [58][59] - The management expresses confidence in the company's long-term growth potential, emphasizing the importance of patience and strategic execution in building the business [60][65] Key Takeaways - WEBTOON is a rapidly growing global storytelling platform with a strong user base and creator ecosystem - The company has demonstrated solid financial performance and user engagement metrics - Future growth will be driven by geographic expansion, enhanced monetization strategies, and leveraging its unique content offerings

Core Insights - The focus is on companies in the oil and natural gas industry, emphasizing cash flow generation and growth potential [1][2] - The service offers a stock model account with over 50 stocks, detailed cash flow analyses of exploration and production (E&P) firms, and live discussions about the sector [2] Company and Industry Summary - The investment service is designed for those interested in the oil and gas sector, providing tools and community support for better investment decisions [1][2] - A two-week free trial is available for new subscribers, promoting engagement with the oil and gas market [3]

Summary of WEBTOON Entertainment (WBTN) FY Conference Call Company Overview - **Company**: WEBTOON Entertainment (WBTN) - **Industry**: Digital storytelling and web comics - **Key Metrics**: Approximately 24 million creators and 170 million monthly active users across over 150 countries [1][2] Core Business Model - **Unique Offering**: WEBTOON provides a platform for creators to publish serialized web comics and novels, allowing for global storytelling [2][8] - **Revenue Sharing**: The company has shared $2.8 billion in revenue with creators, which is a significant draw for new talent [13] - **User Engagement**: Users spend an average of 30 to 60 minutes daily on the platform, indicating high engagement levels [8][17] Market Positioning - **Target Demographic**: Primarily Gen Z consumers aged 18 to 25, with a growing audience among older demographics [25][26] - **Geographic Reach**: Major markets include Korea (24 million MAUs), Japan (22 million MAUs), and the rest of the world (over 100 million MAUs) [29][30] Content Strategy - **Original Content**: Emphasis on unique stories that cannot be found elsewhere, which attracts both creators and consumers [18][20] - **IP Adaptations**: Approximately 7% of revenue comes from adaptations of webtoons into films and series on platforms like Netflix and Amazon [52][56] - **Diverse Genres**: The platform hosts a variety of genres, appealing to a wide range of consumer interests [50] Financial Performance - **Revenue Composition**: Paid content accounts for about 80% of total revenue, with an average payment of $0.15 to $0.70 per episode [36][38] - **Advertising Revenue**: Currently makes up 12% to 13% of total revenue, with significant growth potential in North America [46][49] - **ARPU Growth**: Average revenue per user is increasing, particularly in markets like Japan where it is $22 compared to the company average of $12 [42][43] Growth Drivers - **User Acquisition**: Focus on increasing web comic app MAUs, particularly in North America where growth was 19% year-on-year [34][63] - **Market Penetration**: The company aims to increase penetration in less mature markets like Japan and North America [40][44] - **Advertising and Content Monetization**: Plans to enhance advertising strategies and explore new monetization models [39][46] Future Outlook - **Macro Environment Resilience**: The company is well-positioned to thrive in a potentially weaker macroeconomic environment due to its low-cost content offerings [60][62] - **Long-term Margin Potential**: Expected growth in gross profit margins as the company expands its advertising and paid content segments [66][68] Technology and Innovation - **AI Utilization**: WEBTOON employs AI to enhance creator tools, fight piracy, and improve user experience by helping consumers find stories [72][73] Conclusion - WEBTOON Entertainment is positioned as a leader in the digital storytelling space, with a strong focus on creator empowerment, user engagement, and innovative content strategies. The company is set to capitalize on growth opportunities in various markets while maintaining a robust revenue model through paid content and advertising.

User Metrics - As of March 31, 2025, the global Monthly Active Users (MAU) decreased by approximately 10.5% year-over-year to around 153 million, primarily due to declines in Korea and the Rest of World[117]. - In Korea, MAU was approximately 24.2 million, down from 27.0 million in the same quarter of 2024, while Japan's MAU increased to 21.9 million from 21.1 million[118][119]. - The Rest of World MAU declined to 107.3 million from 123.2 million, attributed to a government ban on Wattpad and a temporary dip in search traffic due to a security upgrade[120]. Paying Users - The global Monthly Paying Users (MPU) reached 7.4 million with a paying ratio of 4.8%, an increase of 0.3% compared to the previous year[122]. - In Korea, MPU decreased to around 3.4 million with a constant paying ratio of 14.2%, while Japan's MPU increased to 2.2 million with a paying ratio of 10.3%[123]. Revenue Metrics - Revenue is derived from three streams: Paid Content, Advertising, and IP Adaptations, with Paid Content being the primary source[129][130]. - Revenue for the three months ended March 31, 2025, was $325,707 thousand, a slight decrease of 0.3% compared to $326,744 thousand in the same period of 2024[141]. - Paid content revenue decreased by 2.5% to $260,226 thousand from $266,855 thousand year-over-year[142]. - Advertising revenue increased by 7.8% to $39.90 million, and IP Adaptations revenue rose by 11.8% to $25.58 million[166]. - Total revenue for the same period was $325.71 million, a slight decrease of 0.3% from $326.74 million in 2024, while revenue on a constant currency basis increased by 5.3% to $343.84 million[166]. Expenses - Marketing expenses include user acquisition costs and loyalty campaigns, which are essential for brand promotion[132]. - General and administrative expenses encompass all operating costs excluding cost of revenue and marketing, including platform maintenance and stock-based compensation[133]. - Marketing expenses increased significantly by $12,065 thousand, or 61.9%, reaching $31,543 thousand for the three months ended March 31, 2025[145]. - General and administrative expenses rose by $18,009 thousand, or 37.0%, totaling $66,702 thousand, driven by increased stock compensation and headcount costs[146]. Profitability - Net loss attributable to WEBTOON Entertainment Inc. was $22,389 thousand for the three months ended March 31, 2025, compared to a net income of $6,192 thousand in the same period of 2024, representing a decline of 461.6%[141]. - For the three months ended March 31, 2025, the company reported a net loss of $21.97 million compared to a net income of $6.23 million in the same period of 2024[158]. - Adjusted EBITDA for Q1 2025 was $4.08 million, down from $22.16 million in Q1 2024, resulting in an adjusted EBITDA margin of 1.3% compared to 6.8% in the prior year[158]. Cash and Financing - As of March 31, 2025, the company had cash and cash equivalents of $550.1 million, which are primarily invested in short-term, highly liquid investments[170]. - The company completed its IPO on June 28, 2024, raising approximately $281.7 million in net proceeds from the sale of 15 million shares at $21.00 per share[167]. - Net cash used in operating activities for Q1 2025 was $18.65 million, compared to net cash provided of $23.86 million in Q1 2024[173]. - The company plans to use its capital for debt repayment, working capital, capital expenditures, and geographic expansion[171]. - The company may seek additional financing for future acquisitions or investments, which could be affected by current market conditions[172]. Other Financial Metrics - Interest income surged by $3,878 thousand, or 314.0%, to $5,113 thousand, primarily due to interest earned on IPO proceeds[147]. - Interest expense was minimal at $2 thousand for the three months ended March 31, 2025, a decrease of 93.9% from $33 thousand in the same period of 2024[148]. - Loss on equity method investments decreased by $483 thousand, or 45.9%, to $569 thousand compared to $1,052 thousand in the prior year[149]. - Other income increased by $4,107 thousand, or 285.8%, to $2,670 thousand, attributed to gains from foreign currency transactions[151]. - Income tax expense decreased by $4,121 thousand, or 61.8%, to $2,547 thousand, reflecting a shift from income to loss before income tax[152]. - The company reported a significant increase in foreign currency effects, contributing $18.13 million to revenue adjustments in Q1 2025[166].

Core Insights - Webtoon Entertainment (WBTN) reported quarterly earnings of $0.03 per share, exceeding the Zacks Consensus Estimate of $0.02 per share, but down from $1.73 per share a year ago [1] - The earnings surprise was 50%, and the company has surpassed consensus EPS estimates in all four of the last quarters [2] - Revenues for the quarter were $325.71 million, slightly above the Zacks Consensus Estimate by 0.53%, but down from $326.74 million year-over-year [3] Financial Performance - The company has consistently outperformed consensus revenue estimates three times in the last four quarters [3] - The current consensus EPS estimate for the upcoming quarter is $0.06, with expected revenues of $337.87 million, and for the current fiscal year, the EPS estimate is $0.31 on revenues of $1.43 billion [8] Market Position - Webtoon shares have declined approximately 29.7% since the beginning of the year, contrasting with the S&P 500's decline of 0.6% [4] - The Zacks Industry Rank places the Internet - Software sector in the top 36% of over 250 Zacks industries, indicating a favorable position compared to the bottom 50% [9] Future Outlook - The estimate revisions trend for Webtoon is currently mixed, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market [7] - The upcoming earnings call will be crucial for understanding management's commentary and future earnings expectations [4]