Investment, local adaptation and competition risks associated with overseas expansion

「For the current consolidated fiscal year, Mercari's GMV increased 11.2% year on year to US$810 million (¥125.3 billion, accumulated using the monthly average exchange rate).」

「As a result, during the interim consolidated accounting period, Mercari's GMV increased 6.0% year on year to US$390 million (¥58.9 billion, accumulated using the monthly average exchange rate), while revenue increased 6.2% to ¥19,751 million.」

「GMV growth has remained negative due to external factors including a longer-than-expected period of high inflation, although signs of improvement have begun to emerge in the growth rate as a result of product initiatives and other measures.」

「The significant impact of external factors, including a longer-than-expected period of high inflation, prevented a return to a growth trajectory. As a result, Mercari's full-year GMV for the current consolidated fiscal year declined 10% from the previous consolidated fiscal year to US$913 million.」

「The impact of external factors including inflation continued. U.S. GMV for the cumulative third quarter of the current consolidated fiscal year was US$705 million (¥103.6 billion, accumulated using the monthly average exchange rate), a decrease of US$81 million year on year, although signs of improvement began to emerge in the number of purchases and GMV growth.」

「As expected at the beginning of the fiscal year, the slowdown in purchasing continued due to external factors including inflation, while effective marketing initiatives focused on existing users and others progressed well. As a result, U.S. GMV was US$231 million (¥33.4 billion, accumulated using the monthly average exchange rate) in the first quarter, a decrease of US$27 million year on year, while MAUs remained flat at 4.93 million.」

「Meanwhile, the slowdown in purchasing continued due to external factors including inflation, as it had in the previous fiscal year, resulting in a full-year GMV growth rate decline of 11% year on year. As a result, Mercari's GMV for the current consolidated fiscal year was US$1,015 million (¥139.5 billion, accumulated using the monthly average exchange rate), a decrease of US$130 million year on year, while MAUs totaled 4.77 million.」

「The headwinds facing the online resale market have continued, as consumers prioritize spending on necessities due to high inflation and primary retailers offer aggressive discounts. As a result, GMV for the cumulative third quarter of the current consolidated fiscal year decreased by US$92 million year on year to US$787 million」

「Meanwhile, GMV continued to be affected by slower purchasing due to inflation and other factors, totaling US$528 million (¥73.9 billion, translated at the monthly average exchange rate) for the cumulative second quarter of the current consolidated fiscal year, a decrease of US$52 million year on year,」

「While continuous product improvements to simplify listing were effective and the number of listings increased, the business was affected by prolonged inflation. As a result, US GMV was US$258 million (¥35.7 billion, calculated using the average exchange rate during the period of ¥138.37 per US dollar) in the current first quarter, down US$12 million year on year, while MAU was 4.93 million.」

「Meanwhile, in addition to the high comparison base of the previous consolidated fiscal year, external factors including inflation caused short-term GMV growth to slow. As a result, Mercari's GMV for the current consolidated fiscal year was US$1,145 million (¥134.4 billion, translated at the period-average exchange rate of ¥117.40 to the U.S. dollar), a decrease of US$28 million year on year, while MAUs totaled 4.9 million.」

「Meanwhile, GMV growth slowed year on year due to the reversal of the impact of cash benefits provided by the government in the third quarter of the previous fiscal year, as well as greater-than-expected changes in the external environment, including inflation.」

「In connection with overseas expansion, the company may continue to make substantial investments in advertising, personnel and other areas. It also faces various potential risks, including language and geographic factors; regulations, including legal and tax systems; economic and political instability; differences in culture, user preferences and business practices; foreign-exchange fluctuations; difficulty securing personnel needed for business expansion; and competition from competitors with established competitive strength in the countries of expansion.」

「In connection with overseas expansion, the company may continue to make substantial investments in advertising, personnel and other areas. It also faces various potential risks, including language and geographic factors; regulations, including legal and tax systems; economic and political instability; differences in culture, user preferences and business practices; foreign-exchange fluctuations; difficulty securing personnel needed for business expansion; and competition from competitors with established competitive strength in the countries of expansion.」

「In connection with overseas expansion, the company may continue to make substantial investments in advertising, personnel and other areas. It also faces various potential risks, including language and geographic factors; regulations, including legal and tax systems; economic and political instability; differences in culture, user preferences and business practices; foreign-exchange fluctuations; difficulty securing personnel needed for business expansion; and competition from competitors with established competitive strength in the countries of expansion.」