NAVER (035420) Q1 2025 earnings summary

Executive summary

• Achieved solid Q1 2025 results with revenue up 10.3% year-over-year to KRW 2.7868 trillion, led by double-digit growth in core businesses and continued platform innovation, especially in AI and personalization.

• Operating profit increased 15% year-over-year to KRW 505.3 billion, with an 18.1% margin, and adjusted EBITDA margin reached 25.2%.

• Net income declined 23.8% year-over-year to KRW 423.7 billion, reflecting a high base from prior-year subsidiary disposals.

• Strengthened platform competitiveness in search, commerce, and fintech, leveraging exclusive content, data, and advanced AI features.

• Launched new services and apps, including AI Briefing and NAVER+ Store, to adapt to changing user patterns and drive engagement.

Financial highlights

• Q1 revenue reached KRW 2.7868 trillion, up 10.3% year-over-year but down 3.4% sequentially.

• Operating profit was KRW 505.3 billion, up 15% year-over-year, with an 18.1% margin.

• Adjusted EBITDA rose 20.7% year-over-year to KRW 701 billion, with a 25.2% margin.

• Net income was KRW 423.7 billion, down 23.8% year-over-year due to a base effect from subsidiary disposals.

• Operating expenses rose 9.3% year-over-year, with marketing up 17.1% year-over-year.

Outlook and guidance

• Plans to expand AI Briefing coverage to double-digit percentage of queries by year-end.

• Focus on enhancing AI-powered service platforms and business capabilities to outperform market growth despite weak advertising and commerce markets.

• Committed to double-digit GMV growth in commerce through app enhancements and partnerships.

• New three-year shareholder return policy to be announced, considering investment plans and liquidity.