Worth reading
71In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Mixed performance
Direction inferred from the company’s description.Scale
-11.5
Revenue year-on-year change (%)Wording
Conditional
How definitive the wording is.Contents of this document
Earnings presentation materialsFiscal year ending December 2026: third quarter11 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥1,102 million-11.5%
Operating profit¥33 million-78.6%
Ordinary income¥-1 million
Net income¥-3 million
Gross Profit Margin79.1%
Operating profit margin3.0%
Results for the three months of the current quarter
Net Sales
¥312 million+2.5%
Operating profit
¥-34 million
Gross Profit Margin
75.5%
Year-on-year change (points)5.9
Full-year earnings forecast
Net Sales
¥2,100 million
Gross profit
¥1,727 million
Operating profit
¥500 million
Ordinary income
¥472 million
Net income for the current fiscal year
¥305 million
Progress against full-year forecast 通期の予想に対して、いまどこまで進んだかの割合です。
Net Sales52.5%
Gross profit50.5%
Operating profit6.7%
Net sales excluding carried-over sales51.6%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Performance has remained in line with the initial plan, and the full-year earnings forecast is unchanged.Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Net SalesCarried-over revenue from prior fiscal years: -¥437 million; ZETA CX revenue: +¥293 million
Operating profitDecrease in revenue: -¥143 million; decrease in costs: +¥30 million; increase in expenses: -¥8 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Completion of fourth-quarter project acceptance as planned and the concentration of revenue recognition in the fourth quarterNew initiatives
- Patent allowance for technology that uses generative AI to recommend products and display related advertisements based on the content of a conversation
- Planned disclosure of a new medium-term management plan centered on an AI commerce media business
- ZETA SEARCH support for Salesforce Commerce Cloud
- Enhancement of the official Shopify app
- Expansion of the agentic search business through business alliances with Channel Talk, LIVEX AI, Neo Japan, and others
Key KPIsA metric the company considers important as a management benchmark.
- Cumulative orders received+5.4% year on year
- Number of sites using the ZETA CX series250 Sites
- Number of UGC items1,789 ten thousand itemsYear on year against the same period last year+20.6%
- Number of projects using ZETA AD97 contractsYear on year against the same period last year+593.0%
- Number of ZETA AD projects under sales activity34 contracts
- Number of projects using ZETA HASHTAG32 contracts
- Number of generated hashtags139,726 contracts
- Monthly clicks681 ten thousand items
Unit price and quantity metricsThese figures show sales broken down by price and volume.
Shift toward higher-value projects and an increase in the average size of new projectsMedium-term management plan targets
The Company plans to disclose a new medium-term management plan centered on an AI commerce media business. Specific target values and target fiscal years are Not disclosed.Financial targets
Equity ratio: 28.1% (target value: Not disclosed)Market Size / Share
Japan’s domestic retail media advertising market: approximately ¥1.3174 trillion in 2029; addressable market for the Company’s services: approximately ¥300 billion; potential revenue target: approximately ¥100 billion. ZETA CX is used by more than 30% of Japan’s TOP 100 e-commerce companies, with 250 sites implementing the service.Orders received and order backlog
Cumulative orders received increased 5.4% year on year. The amount was Not disclosed.Acquisition of treasury shares
Acquisition results were mentioned, but the amount, number of shares and period for the acquisition framework were not disclosed| Item | Details |
|---|---|
| Document type | Earnings presentation materials |
| Fiscal Period Covered | Fiscal year ending December 2026: third quarter |
| Net Sales | ¥1,102 million (YoY -11.5%) |
| Operating profit | ¥33 million (YoY -78.6%) |
| Ordinary income | ¥-1 million |
| Net income | ¥-3 million |
| Gross Profit Margin | 79.1% |
| Operating profit margin | 3.0% |
| Results for the three months of the current quarter | Net Sales ¥312 million (YoY +2.5%) / Operating profit ¥-34 million / Gross Profit Margin 75.5% |
| Full-year earnings forecast | Net Sales ¥2,100 million / Gross profit ¥1,727 million / Operating profit ¥500 million / Ordinary income ¥472 million / Net income for the current fiscal year ¥305 million |
| Progress against full-year forecast | Net Sales 52.5% / Gross profit 50.5% / Operating profit 6.7% / Net sales excluding carried-over sales 51.6% |
| Self-assessment against the plan | Performance has remained in line with the initial plan, and the full-year earnings forecast is unchanged. |
| Breakdown of Factors Affecting the Change | Net Sales Carried-over revenue from prior fiscal years: -¥437 million; ZETA CX revenue: +¥293 million / Operating profit Decrease in revenue: -¥143 million; decrease in costs: +¥30 million; increase in expenses: -¥8 million |
| Key KPIs | Indicator name Cumulative orders received / Value +5.4% year on year, Indicator name Number of sites using the ZETA CX series / Value 250 Sites, Indicator name Number of UGC items / Value 1,789 ten thousand items / Year on year against the same period last year 20.6 ten thousand items, Indicator name Number of projects using ZETA AD / Value 97 contracts / Year on year against the same period last year 593 contracts, Indicator name Number of ZETA AD projects under sales activity / Value 34 contracts, Indicator name Number of projects using ZETA HASHTAG / Value 32 contracts, Indicator name Number of generated hashtags / Value 139,726 contracts, Indicator name Monthly clicks / Value 681 ten thousand items |
| Unit price and quantity metrics | Shift toward higher-value projects and an increase in the average size of new projects |
| Assumptions Underlying the Business Outlook | Completion of fourth-quarter project acceptance as planned and the concentration of revenue recognition in the fourth quarter |
| Medium-term management plan targets | The Company plans to disclose a new medium-term management plan centered on an AI commerce media business. Specific target values and target fiscal years are Not disclosed. |
| Financial targets | Equity ratio: 28.1% (target value: Not disclosed) |
| Acquisition of treasury shares | Acquisition results were mentioned, but the amount, number of shares and period for the acquisition framework were not disclosed |
| Orders received and order backlog | Cumulative orders received increased 5.4% year on year. The amount was Not disclosed. |
| Market Size / Share | Japan’s domestic retail media advertising market: approximately ¥1.3174 trillion in 2029; addressable market for the Company’s services: approximately ¥300 billion; potential revenue target: approximately ¥100 billion. ZETA CX is used by more than 30% of Japan’s TOP 100 e-commerce companies, with 250 sites implementing the service. |
| New initiatives | Patent allowance for technology that uses generative AI to recommend products and display related advertisements based on the content of a conversation, Planned disclosure of a new medium-term management plan centered on an AI commerce media business, ZETA SEARCH support for Salesforce Commerce Cloud, Enhancement of the official Shopify app, Expansion of the agentic search business through business alliances with Channel Talk, LIVEX AI, Neo Japan, and others |
Items this document does not state (9)
Selling, general and administrative expensesSegment resultsNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookAnnual DividendPayout ratioCapital expendituresKey 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 primary reason for the revenue decline was that revenue recognized from carried-over sales from prior fiscal years decreased by ¥437 million from the same period of the previous year. Some projects scheduled for recognition in the third quarter slipped into the fourth quarter due to organizational changes following the departure of the head of the sales division and longer project timelines amid heightened interest in security. The impact of lower revenue on operating income was partially absorbed through cost reductions.
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.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.