Core Insights - WEBTOON Entertainment reported first quarter results for 2025, with total revenue of $325.7 million, a slight decline of 0.3% year-over-year, but a growth of 5.3% on a constant currency basis [1][6][3] - The company experienced a net loss of $22.0 million, compared to a net income of $6.2 million in the previous year, attributed to increased general and administrative expenses and higher marketing costs [1][6][3] - Adjusted EBITDA was $4.1 million, down from $22.2 million in the prior year, with an adjusted EBITDA margin of 1.3% compared to 6.8% in the previous year [1][6][3] Financial Performance - Total revenue of $325.7 million showed a decline of 0.3%, driven by a decrease in Paid Content revenue, partially offset by growth in Advertising and IP Adaptations [6][3] - Revenue on a constant currency basis was $343.8 million, reflecting a growth of 5.3%, supported by all three revenue streams: Paid Content, Advertising, and IP Adaptations [6][3] - 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][3] Operational Highlights - The CEO highlighted the implementation of product enhancements on the English-language platform, including AI-powered discovery features, aimed at improving user experience [3] - Major global franchises such as 'Godzilla' and 'Sonic the Hedgehog' were introduced to the platform, indicating a strategy to expand the content library [3] - The company maintains a strong balance sheet with cash and cash equivalents of approximately $550.1 million and no debt [1][6] Future Outlook - For the second quarter of 2025, 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 [7] - Adjusted EBITDA is projected to be in the range of $0.5 million to $5.5 million, representing an adjusted EBITDA margin of 0.1%-1.6% [7]
WEBTOON Entertainment Inc. Reports First Quarter 2025 Financial Results