Risk of upfront investment and delayed monetization for new services
First written in FY2022. 4 of 7 entries say "Materialised", first in FY2024-Q1. Latest entry: 2026-05-14.
OpenWork moved to the "Worse" side of this theme in 2024, 4 years after the typical company in this theme (2020).
The whole theme swung hardest in 2017: 6 of 20 companies on the "Worse" side.
18 other companies' latest entry also says "Restated".
- FY2025RestatedAnnual report
「We make upfront investments, including advertising and personnel expenses, after considering their potential recovery. However, because building a stable business foundation and achieving monetization are expected to take some time, profit margins may temporarily decline during this period as a result of upfront investment.」
The company continues to disclose the risk of delayed monetization and lower profit margins associated with growth investment in new businesses and core services. - FY2024MaterialisedAnnual report
「We make upfront investments, including advertising and personnel expenses, after considering their potential recovery. However, because building a stable business foundation and achieving monetization are expected to take some time, profit margins may temporarily decline during this period as a result of upfront investment.」
Growth investment in new businesses and core services continued. Operating expenses increased 21.8% year on year, and although operating profit increased, the operating margin declined slightly, continuing to indicate the potential impact of upfront investment. - FY2024-H1MaterialisedAnnual report
「Investment in raising awareness and strengthening recruitment for further growth increased operating expenses to ¥1,219,617 thousand, up 29.8% year on year. Operating profit was ¥469,346 thousand, down 7.9%, ordinary profit was ¥470,095 thousand, down 7.4%, and interim net income was ¥321,166 thousand, down 7.8%.」
Investment in raising awareness and strengthening recruitment increased operating expenses by 29.8% year on year, while operating profit, ordinary profit and interim net income declined. - FY2024-Q1MaterialisedAnnual report
「Operating expenses increased to ¥708,868 thousand, up 73.0% year on year, due to higher advertising expenses resulting from active promotional investment to raise awareness for further growth. As a result, operating profit was ¥69,963 thousand, down 73.5%, ordinary profit was ¥70,146 thousand, down 73.3%, and quarterly net income was ¥45,078 thousand, down 75.0%.」
Promotional investment for growth increased advertising expenses, reducing operating profit, ordinary profit and quarterly net income year on year. The potential margin impact of upfront investment was reflected in the quarter’s results. - FY2022First statedAnnual report
「Because building a stable business foundation and achieving monetization are expected to take some time, profit margins may temporarily decline during this period as a result of upfront investment.」
The Company identifies prolonged development and monetization of new services, failure to achieve expected results and withdrawal costs as risks.