Upfront Investment Burden and Operating Loss in the Automotive Industry DX Business
First written in FY2023. 9 of 11 entries say "Mitigated", first in FY2024-Q1. Latest entry: 2026-08-24.
The whole theme swung hardest in 2023: 6 of 12 companies on the "Worse" side.
10 other companies' latest entry also says "Mitigated".
- 2026-08-24MitigatedEarnings presentation
「Further optimization of advertising expenses has improved business efficiency. Monthly revenue is also steadily accumulating, and business profitability is expected to continue improving.」
The company reconfirmed the mitigation of upfront investment and loss risk in the automotive industry DX business through advertising-cost optimization and the accumulation of monthly revenue. - FY2026-H1MitigatedAnnual report
「During the interim consolidated accounting period, in addition to steady accumulation of monthly revenue from existing customers, we worked to acquire more customers who do not pass credit screening and improve customer acquisition efficiency, achieving higher revenue than in the previous interim consolidated accounting period. Meanwhile, overseas demand for used-vehicle exports temporarily declined against the backdrop of the situation in the Middle East, affecting some dealer-to-dealer sales. Nevertheless, the revenue increase and cost efficiencies substantially narrowed the segment loss from the previous interim consolidated accounting period. Revenue was ¥2,494,742 thousand, up 20.0% year on year, and segment loss was ¥116,727 thousand, compared with ¥189,858 thousand previously.」
Segment loss in the Automotive Industry DX Business narrowed from ¥189,858 thousand to ¥116,727 thousand. Higher revenue, acquisition of customers who do not pass credit screening, improved acquisition efficiency and cost efficiencies further eased the upfront investment burden. - FY2025MitigatedAnnual report
「The Group’s Automotive Industry DX Business requires upfront investment in advertising activities. Advertising expenses for the business were ¥414,137 thousand in fiscal 2025, and the business has consequently recorded an operating loss continuously since its launch.」
Upfront investment and operating losses continued, but advertising expenses declined from ¥708,675 thousand to ¥414,137 thousand and segment loss narrowed from ¥740,928 thousand to ¥230,527 thousand. Segment profitability in the fourth quarter was also reported. - 2026-02-24MitigatedEarnings presentation
「The automotive industry DX business also achieved quarterly profitability in the fourth quarter. We are convinced that we have entered a new stage in which we can achieve both revenue growth and profit generation.」
The automotive industry DX business had continued to bear upfront investment and operating losses, but achieved segment profitability in the fourth quarter, reducing some of the risk. This does not establish full-year profitability and does not imply that the issue has ended. - FY2025-H1MitigatedAnnual report
「During the interim consolidated accounting period, the acquisition of Patio as a subsidiary in August 2024 and the accumulation of monthly revenue from existing customers produced substantial revenue growth. Cost management, including advertising expenses, substantially narrowed the loss, and profitability continued to improve. As a result, the business recorded revenue of ¥2,079,807 thousand and a segment loss of ¥189,858 thousand.」
The Automotive Industry DX Business continued to post an operating loss, but Patio’s revenue contribution, accumulated monthly revenue from existing customers and cost management narrowed the loss and improved profitability. - FY2024MitigatedAnnual report
「The Group’s Automotive Industry DX Business requires upfront investment in advertising activities. Advertising expenses for the business were ¥708,675 thousand in fiscal 2024, and the business has consequently recorded an operating loss continuously since its launch.」
Upfront investment and operating losses continued, but advertising expenses declined from ¥1,026,690 thousand to ¥708,675 thousand, indicating a substantial improvement in profitability. - FY2024-H1RestatedAnnual report
「During the interim accounting period, monthly revenue from existing customers accumulated steadily. We continued efforts to improve the return on advertising investment for contract acquisition, and achieved higher revenue and a narrower loss while advertising expenses declined gradually. As a result, the business recorded revenue of ¥1,312,110 thousand and a segment loss of ¥453,831 thousand.」
The Automotive Industry DX Business continued to record a loss while advertising expenses declined, monthly revenue from existing customers accumulated and the loss narrowed. - FY2024-Q1MitigatedAnnual report
「During the cumulative first quarter, monthly revenue from existing customers accumulated steadily. We continued efforts to improve the return on advertising investment for contract acquisition, and achieved higher revenue and a narrower loss while advertising expenses declined gradually. As a result, the business recorded revenue of ¥626,459 thousand and a segment loss of ¥241,687 thousand.」
The Automotive Industry DX Business continues to post an operating loss, but advertising expenses and the loss declined, indicating some improvement in the upfront investment burden. Segment loss was ¥241,687 thousand. - FY2023MaterialisedAnnual report
「The Company’s Automotive Industry DX Business requires upfront investment, including hiring development and sales personnel and conducting advertising activities. Advertising expenses for the business were ¥1,026,690 thousand in fiscal 2023, and the business has consequently recorded an operating loss continuously since its launch.」
Upfront investment has resulted in actual operating losses, with advertising expenses also disclosed.