Arena (AREN) - 2025 Q1 - Quarterly Report

Financial Performance - For the three months ended March 31, 2025, total revenue increased by $2,874, or 9.9%, to $31,815 compared to $28,941 in the same period of 2024[148]. - Net income for the three months ended March 31, 2025, was $4,020 million, compared to a net loss of $103,358 million for the same period in 2024[168]. - Net income from continuing operations improved by $16,717 to $3,997, compared to a net loss of $12,720 in the prior period[147]. - Adjusted EBITDA for the three months ended March 31, 2025, was $9,710 million, a significant improvement from a loss of $848 million in the same period of 2024[168]. - Income from continuing operations was $3,997 million for the three months ended March 31, 2025, compared to a loss of $12,720 million in the same period of 2024[168]. Revenue and Profitability - Digital revenue increased by 10.3% to $31,608, driven by a $4,118 increase in performance marketing revenue and a $1,001 increase in publisher revenue[151]. - Gross profit for the same period was $15,669, an increase of $6,736, representing a 75.4% increase from $8,933 in 2024, with a gross profit percentage of 49.3% compared to 30.9% in 2024[148][149]. - The segment revenue for Finance increased by $1,829, primarily driven by an increase in performance marketing revenues[156]. - The segment gross profit increased to $18,552, up $3,661 from $14,891 in 2024, with notable increases in all segments[158]. Expenses and Costs - Operating expenses decreased by $8,577, or 50.8%, to $8,307, primarily due to reductions in headcount and consulting spend[148]. - Selling and marketing expenses decreased by $2,430, or 53.2%, to $2,134, representing 7% of revenues compared to 16% in 2024[153]. - General and administrative expenses decreased by $4,852, or 47.9%, to $5,283, representing 17% of revenues compared to 35% in 2024[154]. - Interest expense decreased by $1,335, or 30.8%, to $3,004, primarily due to lower amortization of debt costs and lower interest charges[164]. - Depreciation and amortization expenses were $2,166 million for the three months ended March 31, 2025, compared to $2,536 million for the same period in 2024[168]. - Stock-based compensation costs were $182 million for the three months ended March 31, 2025, down from $913 million in the same period of 2024[168]. Cash Flow and Working Capital - Net cash provided by operating activities for the three months ended March 31, 2025, was $3,662, compared to a net cash used of $1,965 in the same period of 2024[144]. - Cash and cash equivalents at the end of the period for March 31, 2025, were $2,902, down from $4,003 at the end of March 31, 2024[144]. - As of March 31, 2025, the working capital deficit was $80,622, a slight improvement from $82,022 as of December 31, 2024[143]. Discontinued Operations and Impairments - Total liabilities from discontinued operations were $96,056 as of March 31, 2025, following the discontinuance of the Sports Illustrated media business[140]. - The company recorded a loss on impairment of assets of $1,198 million for the three months ended March 31, 2024, with no such loss reported for the same period in 2025[168]. Strategic Developments - The company entered into a Membership Purchase Agreement to acquire 100% of TravelHost LLC for $1.0 million on May 12, 2025[125]. - The company is closely monitoring macroeconomic conditions, including inflation and geopolitical factors, which may adversely affect its business[126]. Taxation - The provision for income taxes increased to $286 million for the three months ended March 31, 2025, compared to $41 million for the same period in 2024, reflecting an increase of $245 million due to improved operating results[166]. Digital Advertising - For the three months ended March 31, 2025, digital advertising revenue decreased by approximately 4% compared to the same period in fiscal 2024[127]. - RPM increased by 20% to $22.21 for the three months ended March 31, 2025, up from $18.56 in the same period of 2024, driven by higher video advertising sales[131]. - Monthly average pageviews rose by 15% to 327,510,084 for the three months ended March 31, 2025, compared to 286,009,299 in the same period of 2024[131].