Mismatch Between Subscription Pricing Models and Server Costs
First written in FY2021. 3 of 4 entries say "Restated". Latest entry: FY2025.
2 other companies' latest entry also says "Restated".
- FY2025RestatedAnnual report
「If MAUs increase sharply during the annual service period, or if the Group enters into contracts with businesses whose customers are active users generating more actions than the Group has assumed, the fixed monthly service fees may become insufficient to cover server usage costs, which increase with the number of MAUs and other factors, potentially reducing the Group's gross profit margin.」
The Group continues to address the risk of a decline in the gross profit margin due to a mismatch between annual contracts and fixed monthly fees on the one hand and server usage costs on the other, as well as the review of pricing upon renewal. - FY2023RestatedAnnual report
「If MAUs increase sharply during the annual service period, or if the Group enters into contracts with businesses whose customers are active users generating more actions than the Group has assumed, the fixed monthly service fees may become insufficient to cover server usage costs, which increase with the number of MAUs and other factors, potentially reducing the Group's gross profit margin.」
The Group continues to explain the risk of a decline in the gross profit margin due to a mismatch between annual contracts and fixed monthly fees on the one hand and server usage costs on the other, as well as the review of pricing upon contract renewal. - FY2022RestatedAnnual report
「If MAUs increase sharply during the annual service period, or if the Group enters into contracts with businesses whose customers are active users generating more actions than the Group has assumed, the fixed monthly service fees may become insufficient to cover server usage costs, which increase with the number of MAUs and other factors, potentially reducing the Group's gross profit margin.」
The Group continues to explain the risk of a decline in the gross profit margin due to a mismatch between 12-month contracts and fixed monthly fees on the one hand and server costs on the other, as server costs rise with MAUs and the number of actions. - FY2021First statedAnnual report
「If MAUs increase sharply during the annual service period, or if the Group enters into contracts with businesses whose customers are active users generating more actions than the Group has assumed, the fixed monthly service fees may become insufficient to cover server usage costs, which increase with the number of MAUs and other factors, potentially reducing the Group's gross profit margin.」
The Group has identified for the first time the risk that, under its standard 12-month contract and fixed monthly fee model, server costs may increase in line with MAUs and the number of actions, reducing the gross profit margin.