Financial Performance - Total revenue for Q1 2025 was $325.7 million, a decline of 0.3% year-over-year, with a constant currency growth of 5.3% to $343.8 million[6] - Net loss for Q1 2025 was $22.0 million, compared to a net income of $6.2 million in the prior year, attributed to higher general and administrative expenses and increased marketing costs[6] - Adjusted EBITDA for Q1 2025 was $4.1 million, down from $22.2 million in the prior year, resulting in an adjusted EBITDA margin of 1.3% compared to 6.8%[6] - The company reported a diluted loss per share of $0.17, compared to diluted earnings per share of $0.06 in the prior year[6] - Operating loss for the same period was $26,634 thousand, compared to an operating income of $14,188 thousand in the prior year[24] - Net loss attributable to WEBTOON Entertainment Inc. was $22,389 thousand for Q1 2025, compared to a net income of $6,192 thousand in Q1 2024[24] - Total comprehensive loss for Q1 2025 was $15,540 thousand, compared to a total comprehensive loss of $22,465 thousand in Q1 2024[24] - Net income for Q1 2025 was a loss of $21,969,000 compared to a profit of $6,233,000 in Q1 2024[34] - Net income margin decreased to (6.7)% in Q1 2025 from 1.9% in Q1 2024[34] - Adjusted EBITDA margin fell to 1.3% in Q1 2025 compared to 6.8% in Q1 2024[34] Cash and Debt Position - Cash and cash equivalents stood at approximately $550.1 million, with no debt reported[6] - Cash and cash equivalents at the end of Q1 2025 were $550,136 thousand, down from $572,402 thousand at the beginning of the year[29] Revenue Breakdown - Paid content revenue decreased by 2.5% to $260,226 thousand in Q1 2025 from $266,855 thousand in Q1 2024[33] - Advertising revenue increased by 7.8% to $39,898 thousand in Q1 2025, compared to $36,996 thousand in Q1 2024[33] Future Guidance - The company expects revenue growth on a constant currency basis in the range of 2.2%-5.2%, translating to revenue between $335 million and $345 million for Q2 2025[7] - Adjusted EBITDA guidance for Q2 2025 is projected to be between $0.5 million and $5.5 million, indicating an adjusted EBITDA margin of 0.1%-1.6%[7] User Engagement and Content Expansion - WEBTOON Entertainment has approximately 150 million monthly active users, indicating a strong user engagement within its ecosystem[10] - Major global franchises such as 'Godzilla' and 'Sonic the Hedgehog' have been added to the platform, expanding the content library[3] Marketing and Expenses - The company incurred marketing expenses of $31,543 thousand in Q1 2025, significantly higher than $19,478 thousand in Q1 2024[24] - Stock-based compensation expense increased significantly to $17,035,000 in Q1 2025 from $2,226,000 in Q1 2024[34] Other Financial Metrics - The average revenue per paying user (ARPPU) in Korea decreased by 5.3% to $7.5 in Q1 2025 from $7.9 in Q1 2024[33] - Interest income for Q1 2025 was $(5,113,000), compared to $(1,235,000) in Q1 2024, indicating a worsening in interest income[34] - Depreciation and amortization expenses were $8,437,000 in Q1 2025, slightly down from $9,035,000 in Q1 2024[34] - Weighted average shares outstanding increased to 129,598,942 in Q1 2025 from 109,505,160 in Q1 2024[34]
Webtoon Entertainment Inc.(WBTN) - 2025 Q1 - Quarterly Results