From Barchart: 2025-05-13 16:17:00

WEBTOON (NASDAQ:WBTN) reported Q1 CY2025 revenue of $325.7 million, flat year on year and below analyst estimates. The company’s GAAP loss per share was $0.17, missing consensus by 7%. However, WEBTOON expects Q2 revenue of $340 million, in line with expectations. Founder and CEO Junkoo Kim highlighted revenue and Adjusted EBITDA above guidance, with all revenue streams contributing to growth. The company operates a global platform for serialized web-comics and web-novels. Despite a decline in operating margin and negative free cash flow in Q1, WEBTOON remains focused on growth and future projections look promising.

The company’s revenue growth over the last two years was solid, with analysts expecting a 13% increase over the next 12 months. However, this quarter saw a 0.3% decline in revenue, prompting a 6.6% stock drop post-earnings report. WEBTOON’s operating margin was negative 8.2% in Q1, and it burned through $19.19 million in cash, raising concerns about sustainability. Despite the weak quarterly results, long-term fundamentals and valuation should guide investment decisions. WEBTOON’s underperformance may present an opportunity for investors to consider the stock.



Read more at Barchart: WEBTOON (NASDAQ:WBTN) Reports Sales Below Analyst Estimates In Q1 Earnings, Stock Drops