Eliminating Low-Gross-Margin Projects and Improving Gross Margin
First written in FY2020-Q1. 12 of 25 entries say "Advanced", first in FY2020. Latest entry: 2026-08-07.
iRidge moved to the "Worse" side of this theme in 2024, 1 year after the typical company in this theme (2023).
The whole theme swung hardest in 2020: 1 of 11 companies on the "Worse" side.
2 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「In terms of costs, gross margin declined as the proportion of low-margin projects, such as advertising projects, increased. In addition, selling, general and administrative expenses increased as the company continued to strengthen its organizational structure in anticipation of future business expansion.」
While the company has pursued gross-margin improvement, gross margin in the business production business declined as the proportion of low-margin projects increased, and selling, general and administrative expenses also increased as a result of strengthening the organization. - FY2026-H1WorsenedAnnual report
「In terms of expenses, costs increased as we strengthened our smartphone app development capabilities, while amortization and other expenses related to the EX-DX area also increased.」
While the company has continued efforts to improve gross margins, the consolidated gross margin for the current interim period declined from approximately 32.1% in the same period of the previous year to approximately 28.6%, due to higher costs resulting from the reinforcement of the development structure and increased software amortization expenses in the EX-DX area. - FY2025-H1AdvancedAnnual report
「In terms of costs, the increase in costs associated with delays in the progress of certain smartphone app development projects incurred in the same period of the previous year was eliminated. At the same time, the company recorded costs associated with upfront investment in APPBOX, its next-generation core app business platform. As a result, segment revenue was ¥2,013 million, up 18.8% year on year, and segment profit was ¥382 million, up 664.3% year on year.」
The increase in costs caused by development delays in the same period of the previous year was eliminated, while upfront investment costs for APPBOX were recorded. The app business generated higher revenue and substantially higher profit, and initiatives to improve gross margins are progressing. - FY2024WorsenedAnnual report
「Cost of sales 3,965,266 Gross profit 1,747,094」
Gross margin was approximately 30.6%, down from approximately 37.0% in the previous fiscal year. Costs increased due to delays in the progress of development projects, while upfront investments, including APPBOX launch costs and new hires, were incurred concurrently. - FY2024-Q3WorsenedAnnual report
「In terms of expenses, costs increased due to delays in the progress of certain development projects. In addition, costs increased following the launch of our new product, the app business platform APPBOX, and we made upfront investments, including new hiring, in anticipation of future business expansion.」
While pursuing initiatives to improve gross margins, the company incurred higher costs due to delays in the progress of certain development projects, as well as upfront investments including the APPBOX launch and new hires. As a result, gross margin for the cumulative third quarter was below the level in the same period of the previous year. - FY2024-Q3WorsenedAnnual report
「[Quarterly Consolidated Income Statement] [Cumulative Third Quarter] Cost of sales 2,390,456 2,824,277 Gross profit 1,299,150 1,025,248」
Gross margin for the cumulative third quarter was approximately 26.6%, down from approximately 35.2% in the same period of the previous year. Despite efforts to improve the gross margins of app development projects previously undertaken, costs increased due to development delays, while upfront investments, including APPBOX launch costs and new hires, were incurred concurrently. - FY2024-Q2WorsenedAnnual report
「Cost of sales 1,831,983 Gross profit 592,071」
Gross margin for the cumulative second quarter was approximately 24.4%, down from approximately 35.0% in the same period of the previous year. Costs increased due to delays in the progress of certain development projects, while upfront investments, including APPBOX launch costs and new hires, were incurred concurrently. - FY2023AdvancedAnnual report
「Cost of sales 3,495,958 3,414,991 Gross profit 1,927,904 2,003,898」
Gross profit increased from ¥1,927.904 million to ¥2,003.898 million, while the gross profit margin improved from approximately 35.5% to approximately 37.0%. Efforts to improve the cost ratio of app development projects are reflected in the full-year results. - FY2023-Q2RestatedAnnual report
「In terms of expenses, we continued efforts to improve the cost margin of app development projects and continued recruitment in anticipation of future business expansion, particularly in online marketing, resulting in higher personnel expenses.」
The company has reaffirmed its policy of continuing efforts to improve the cost ratio of app development projects, but this filing does not present new figures such as the improvement rate. - FY2023-Q1RestatedAnnual report
「In terms of expenses, we continued initiatives to improve the cost ratio of app development projects and continued hiring, particularly in online marketing, in anticipation of future business expansion, resulting in higher personnel expenses.」
The company has reaffirmed its policy of continuing efforts to improve the cost ratio of app development projects, but has not disclosed figures showing improvement in gross margin or other metrics for the quarter. - FY2022AdvancedAnnual report
「This was mainly because, although the cost of sales increased as revenue rose, continued efforts to improve gross margins on app development projects improved gross profit to 35.5%, up 0.2 percentage points from the previous consolidated fiscal year.」
Efforts to improve gross margins on app development projects progressed over the full year, lifting the gross profit margin to 35.5%, up 0.2 percentage points from the previous consolidated fiscal year. - FY2022-Q3AdvancedAnnual report
「This was mainly because, although the cost of sales increased as revenue rose, continued efforts to improve gross margins on app development projects improved gross profit to 34.7%, up 1.1 percentage points year on year.」
Continued efforts to improve gross margins on app development projects lifted the gross profit margin to 34.7%, up 1.1 percentage points year on year. - FY2022-Q2AdvancedAnnual report
「This was mainly because, although the cost of sales increased as revenue rose, continued efforts to improve gross margins on app development projects improved the gross profit margin to 34.9%, up 2.8 percentage points year on year.」
Continued efforts to improve gross margins on app development projects lifted the gross profit margin to 34.9%, up 2.8 percentage points year on year. - FY2022-Q1AdvancedAnnual report
「This was mainly because, although the cost of sales increased as revenue rose, continued efforts to improve gross margins on app development projects improved the gross profit margin to 32.9%, up 1.7 percentage points year on year.」
Continued efforts to improve gross margins on app development projects lifted the gross profit margin to 32.9%, up 1.7 percentage points year on year. - FY2021AdvancedAnnual report
「This was mainly due to the decline in revenue and the steady progress of initiatives to maintain improved gross margins on app development projects, identified as a priority activity area at the beginning of the fiscal year, which improved the cost-of-sales ratio by 7.6 percentage points.」
Initiatives to maintain improved gross margins progressed, improving the cost-of-sales ratio by 7.6 percentage points and lifting gross profit to ¥1,538.669 million, up 4.4% year on year. - FY2021-Q3AdvancedAnnual report
「Meanwhile, initiatives to maintain improved gross margins on development projects, identified as a priority activity area at the beginning of the fiscal year, are progressing steadily. Gross profit was ¥1,046.072 million, up 6.2% year on year, and the gross profit margin was 33.6%, up 7.9 percentage points year on year.」
Progress in maintaining improved gross margins on development projects lifted the gross profit margin to 33.6%, up 7.9 percentage points year on year. - FY2021-Q2AdvancedAnnual report
「Meanwhile, initiatives to maintain improved gross margins on development projects, identified as a priority activity area at the beginning of the fiscal year, are progressing steadily. Gross profit was ¥668.971 million, up 6.8% year on year, and the gross profit margin was 32.1%, up 6.3 percentage points year on year.」
Progress in maintaining improved gross margins on development projects lifted the gross profit margin to 32.1%, up 6.3 percentage points year on year. - FY2021-Q1RestatedAnnual report
「Although the cumulative consolidated operating result for the first quarter was a deficit, initiatives in the priority activity areas identified at the beginning of the fiscal year, namely maintaining improved gross margins on development projects and responding to changes in the business environment, are progressing steadily. Specifically, we are working to continuously strengthen our workforce, particularly project managers and engineers, and reduce costs by strengthening PMO and quality control across the company.」
The company continues to identify maintaining improved gross margins on development projects as a priority activity area from the beginning of the fiscal year and is pursuing cost reductions through workforce expansion and company-wide PMO and quality control. - FY2020AdvancedAnnual report
「Through measures including strengthening the development structure in ①, actively allocating resources to high-value-added projects and strengthening the management of large projects, the gross margin improved from 25.0% in the first quarter to 32.5% in the fourth quarter.」
Quarterly gross margin improved from 25.0% to 32.5%, but because the full-year target was not reached, the company plans to continue maintaining the improvement in the fiscal year ending March 2021. - FY2020-Q2SoftenedAnnual report
「Although the gross margin fluctuates depending on the release timing of individual projects, it is expected to continue improving.」
While maintaining its outlook for gross-margin improvement, the company qualifies this by stating that the margin will fluctuate depending on the release timing of individual projects. - FY2020-Q1First statedAnnual report
「At present, we expect to eliminate low-gross-margin projects carried over from the previous fiscal year in the first and second quarters. In addition, the release of large projects from the second quarter onward is expected to improve the gross margin.」
For the first time, the company has presented as an independent theme its approach of eliminating low-gross-margin projects carried over from the previous fiscal year in the first and second quarters and improving gross margin through the release of large projects from the second quarter onward.