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Financial results presentation4180Appier Group,Inc.Information and Communications, Services and Others

Financial Results Presentation for the Third Quarter of the Fiscal Year Ending December 2026

In the third quarter of the fiscal year ending December 2026, revenue and profit increased significantly due to growth in existing businesses and productivity gains from autonomous AI, with revenue, gross margin and operating profit reaching record highs. Following the upside in the third quarter, the company raised its full-year forecasts for operating profit and net profit, as well as its year-end dividend forecast.

Worth reading
82Important
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Improvement
Direction inferred from the company’s description.
Scale
8
¥100 million (amount of the upward revision to the full-year operating profit forecast)
Wording
Definitive
How definitive the wording is.

Contents of this document

Financial results presentationQ3 of the fiscal year ending December 202610 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥388 100 millions nine months ended the third quarter
Operating profit¥38 100 millions nine months ended the third quarter
Net income¥33 100 millions nine months ended the third quarter
Gross Profit Margin58.6 % nine months ended the third quarter
Operating profit margin9.7 % nine months ended the third quarter
Results for the three months of the current quarter
Revenue
¥139 100 million+21.8%
Gross profit
¥85 100 million+38.0%
margin_pct61.3
margin_yoy_change+7.2 percentage points
Operating profit
¥21 100 million+104.7%
margin_pct15.2
margin_yoy_change+6.2 percentage points
Net income
¥19 100 million+78.2%
margin_pct13.8
margin_yoy_change+4.4 percentage points
Full-year earnings forecast
Revenue
¥544 100 million
Gross profit
¥319 100 million
Operating profit
¥59 100 million
EBITDA
¥108 100 million
Net income
¥50 100 million
Year-end dividend
¥2.5 per share
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Significantly exceeded the third-quarter earnings forecast
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Increase in gross profit+¥2,336 million
  • Increase in S&M (excluding software amortisation)-¥593 million
  • Increase in software amortisation-¥275 million
  • Increase in R&D-¥378 million
  • Increase in G&A-¥98 million
  • Increase in other income+¥85 million
  • Foreign exchange impact+¥190 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • Fourth-quarter revenue¥15.2 billion–¥15.6 billion
  • Fourth-quarter revenue from existing businessesApproximately ¥14.9 billion, up approximately 25% year on year
  • Fourth-quarter AdCreative.ai revenueApproximately ¥300 million–¥600 million
  • Fourth-quarter operating profit¥2.1 billion–¥2.3 billion
New initiatives
  • Deploying autonomous AI not only in R&D but also across company-wide operations
  • R&D investment in marketing-focused AI
  • Expansion into new markets, including the United States, EMEA and Turkey
  • Capital allocation of core free cash flow, including growth investment and shareholder returns
Key KPIsA metric the company considers important as a management benchmark.
  • ARR¥530 100 million
    Year on year against the same period last year+23%
  • Recurring revenue ratio>95
  • Quarterly gross profit per employee¥1,134 10,000
    Year on year against the same period last year+45%
  • Core free cash flow¥19 100 million third quarter alone
    Year on year against the same period last year+501.3%
  • Core free cash flow¥12.5 100 millions nine months ended the third quarter
    Year on year against the same period last yearImprovement (a ¥1.32 billion loss in the same period of the previous year)
Unit price and quantity metricsThese figures show sales broken down by price and volume.
Customer Base
2,288 companies and corporate groups+12.0%
ARPC
¥572 10,000+10.0%
Segment results
  • Existing Businesses
    Revenue¥13.4 billion
    Year on year against the same period last year+27.1%
  • Northeast Asia (Japan and South Korea)
    Year on year against the same period last year+33% (existing businesses)
  • United States and EMEA
    Year on year against the same period last year+49% (existing businesses)
  • Greater China
  • E-Commerce
    Revenue mix65%
    Year on year against the same period last year>+40%
  • Other internet services
    Revenue mix57%
    Year on year against the same period last year>+30%
  • Digital Content
    Revenue mix8%
    Year on year against the same period last yearApproximately -16%
  • Consumer goods brands and financial services
    Revenue mix10%
    Year on year against the same period last yearApproximately +6%
Medium-term management plan targets
FY27 revenue¥70 billion or more
FY27 operating profit¥9.0 billion–¥11.0 billion or more
FY27 net income¥7.0 billion–¥9.0 billion or more
Annual Dividend
Breakdown
End of period2.5
Acquisition of treasury shares
Share buybacks are one option. They will be carried out flexibly on the premise of continued core free cash flow surpluses and a gap between market value and intrinsic value.
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredQ3 of the fiscal year ending December 2026
Net Sales¥388 100 millions (nine months ended the third quarter)
Operating profit¥38 100 millions (nine months ended the third quarter)
Net income¥33 100 millions (nine months ended the third quarter)
Gross Profit Margin58.6 % (nine months ended the third quarter)
Operating profit margin9.7 % (nine months ended the third quarter)
Results for the three months of the current quarterRevenue ¥139 100 million (YoY +21.8%) / Gross profit ¥85 100 million (YoY +38.0%) / Operating profit ¥21 100 million (YoY +104.7%) / Net income ¥19 100 million (YoY +78.2%)
Full-year earnings forecastRevenue ¥544 100 million / Gross profit ¥319 100 million / Operating profit ¥59 100 million / EBITDA ¥108 100 million / Net income ¥50 100 million / Year-end dividend ¥2.5 per share
Self-assessment against the planSignificantly exceeded the third-quarter earnings forecast
Segment resultsCategory Existing Businesses / Revenue ¥13.4 billion / Year on year against the same period last year +27.1%, Category Northeast Asia (Japan and South Korea) / Revenue Not disclosed / Year on year against the same period last year +33% (existing businesses), Category United States and EMEA / Revenue Not disclosed / Year on year against the same period last year +49% (existing businesses), Category Greater China / Revenue Not disclosed / Year on year against the same period last year Not disclosed, Category E-Commerce / Revenue mix 65% / Year on year against the same period last year >+40%, Category Other internet services / Revenue mix 57% / Year on year against the same period last year >+30%, Category Digital Content / Revenue mix 8% / Year on year against the same period last year Approximately -16%, Category Consumer goods brands and financial services / Revenue mix 10% / Year on year against the same period last year Approximately +6%
Breakdown of Factors Affecting the ChangeFactors Increase in gross profit / Amount +¥2,336 million, Factors Increase in S&M (excluding software amortisation) / Amount -¥593 million, Factors Increase in software amortisation / Amount -¥275 million, Factors Increase in R&D / Amount -¥378 million, Factors Increase in G&A / Amount -¥98 million, Factors Increase in other income / Amount +¥85 million, Factors Foreign exchange impact / Amount +¥190 million
Key KPIsIndicator ARR / Value ¥530 100 million / Year on year against the same period last year +23%, Indicator Recurring revenue ratio / Value >95 / Year on year against the same period last year Not disclosed, Indicator Quarterly gross profit per employee / Value ¥1,134 10,000 / Year on year against the same period last year +45%, Indicator Core free cash flow / Value ¥19 100 million (third quarter alone) / Year on year against the same period last year +501.3%, Indicator Core free cash flow / Value ¥12.5 100 millions (nine months ended the third quarter) / Year on year against the same period last year Improvement (a ¥1.32 billion loss in the same period of the previous year)
Unit price and quantity metricsCustomer Base 2,288 companies and corporate groups (YoY +12.0%) / ARPC ¥572 10,000 (YoY +10.0%)
Assumptions Underlying the Business OutlookItem Fourth-quarter revenue / Value ¥15.2 billion–¥15.6 billion, Item Fourth-quarter revenue from existing businesses / Value Approximately ¥14.9 billion, up approximately 25% year on year, Item Fourth-quarter AdCreative.ai revenue / Value Approximately ¥300 million–¥600 million, Item Fourth-quarter operating profit / Value ¥2.1 billion–¥2.3 billion
Medium-term management plan targetsFY27 revenue ¥70 billion or more / FY27 operating profit ¥9.0 billion–¥11.0 billion or more / FY27 net income ¥7.0 billion–¥9.0 billion or more
Annual Dividend非開示
Acquisition of treasury sharesShare buybacks are one option. They will be carried out flexibly on the premise of continued core free cash flow surpluses and a gap between market value and intrinsic value.
New initiativesDeploying autonomous AI not only in R&D but also across company-wide operations, R&D investment in marketing-focused AI, Expansion into new markets, including the United States, EMEA and Turkey, Capital allocation of core free cash flow, including growth investment and shareholder returns
Items this document does not state (12)
Ordinary incomeSelling, general and administrative expensesProgress against full-year forecastNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookFinancial targetsPayout ratioCapital expendituresOrders received and order backlogMarket Size / ShareKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

The main reasons were continued above-forecast growth in revenue from existing businesses, an expanded gross margin, greater efficiency in research and development and company-wide operations through autonomous AI, and improved operating leverage due to a lower operating expense-to-revenue ratio. These factors absorbed the ¥190 million negative impact from foreign exchange.

How to read this page

This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
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Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
Financial Results Presentation for the Third Quarter of the Fiscal Year Ending December 2026 | Appier Group,Inc. (4180) timely disclosure | Komori