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Mar 31, 2025
WEBTOON Entertainment Inc Q1 2025 Earnings Report
WEBTOON Entertainment Inc reported flat year-over-year revenue with margin compression and a net loss in Q1 2025.
Key Takeaways
WEBTOON delivered Q1 2025 revenue of $325.7M, slightly down year-over-year but up 5.3% on a constant currency basis. While Advertising and IP Adaptations grew, higher G&A and marketing expenses drove a net loss of $22.0M. Adjusted EBITDA came in at $4.1M.
Revenue reached $325.7M, down 0.3% YoY but up 5.3% on a constant currency basis.
Net loss was $22.0M compared to $6.2M income last year, impacted by higher G&A and marketing costs.
Adjusted EBITDA fell to $4.1M from $22.2M in Q1 2024.
Strong liquidity position with $550.1M in cash and no debt.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
WEBTOON projects Q2 2025 revenue between $335M and $345M with Adjusted EBITDA between $0.5M and $5.5M.
Positive Outlook
- Revenue guidance implies continued top-line growth.
- Advertising and IP Adaptations segments show strong momentum.
- Enhanced AI discovery features rolled out to English-language platform.
- New partnerships with global franchises like Godzilla and Sonic.
- Robust balance sheet with over $550M in cash and no debt.
Challenges Ahead
- Paid content revenue declined YoY.
- Adjusted EBITDA margin compressed from 6.8% to 1.3%.
- G&A and marketing expenses significantly increased.
- Net income turned negative after prior year profit.
- Limited geographic revenue diversification outside Japan.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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