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Results presentation6579logly,Inc.Information and Communications, Services and Others

Financial Results Briefing Materials for the Second Quarter of the Fiscal Year Ending March 2027

In the interim period, consolidated revenue declined due to lower revenue from the existing advertising business, while the operating loss widened because of costs to remediate internal controls and higher goodwill amortization. Meanwhile, gross profit increased on higher revenue from new businesses, and the full-year earnings forecast was left unchanged.

Worth reading
49Recurring
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
-12
Year-on-year change in operating income (loss) (¥ millions)
Wording
Conditional
How definitive the wording is.

Contents of this document

Results presentationSecond quarter of the fiscal year ending March 20275 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥684 million-4.7%
Operating profit¥-43 million
Ordinary income¥-47 million
Net income¥-63 million
Gross Profit Margin25.9 %
Selling, general and administrative expenses¥215 million
Results for the three months of the current quarter
Net Sales
¥337 million-3.5%
Gross profit
¥87 million+2.8%
Selling, general and administrative expenses
¥110 million+16.0%
Operating profit
¥-22 million
Full-year earnings forecast
Net Sales
1,409〜1,500
Operating profit
-40〜15
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 Sales
Progress toward lower end of full-year forecast48.6
Progress toward upper end of full-year forecast45.6
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Increase in gross profit¥6 million
  • Increase in Goodwill Amortization¥-10 million
  • Higher other SG&A expenses¥-9 million
New initiatives
  • Making the proprietary LOGLY Ads targeting feature “Insight Match” standard and adopting a new delivery algorithm
  • Securing advertising inventory through header bidding connections
  • Revamping the ウルテク service website and supporting customers with a customer strategy database
  • Fully launching performance-based operational support for social media marketing
  • Opening a creative hub scheduled for December
  • Launching a B2C business covering fan clubs and merchandise
  • Adding Amazon Ads support to the AI advertising operations agent “mureo”
  • Partnering with digital media companies in the native advertising field
  • Launching the ウルテク Web Sales service
Key KPIsA metric the company considers important as a management benchmark.
  • Revenue contribution from new businesses38.9 %
  • Existing-business revenue mix61.1 %
  • Internet advertising market size¥40,459 100 million
    Year on year against the same period last year+10.8%
  • Internet advertising expenditure as a percentage of total advertising expenditure50.2 %
  • Number of intent keywords for ウルテク10 x versus the previous level
Segment results
New Businesses
Net Sales¥266 million
Composition ratio¥38.9 million
Existing Businesses
Net Sales¥417 million
Composition ratio¥61.1 million
Market Size / Share
Total advertising spend
¥80,623 100 million+5.1%
Internet advertising expenditure
¥40,459 100 million+10.8%
Video advertising
¥10,275 100 million+21.8%
Social Advertising
¥13,067 100 million+18.7%
Internet advertising spend mix
50.2 %
Contents of this document
ItemDetails
Document typeResults presentation
Fiscal Period CoveredSecond quarter of the fiscal year ending March 2027
Net Sales¥684 million (YoY -4.7%)
Operating profit¥-43 million
Ordinary income¥-47 million
Net income¥-63 million
Gross Profit Margin25.9 %
Selling, general and administrative expenses¥215 million
Results for the three months of the current quarterNet Sales ¥337 million (YoY -3.5%) / Gross profit ¥87 million (YoY +2.8%) / Selling, general and administrative expenses ¥110 million (YoY +16.0%) / Operating profit ¥-22 million
Full-year earnings forecastNet Sales 1,409〜1,500 / Operating profit -40〜15
Progress against full-year forecastNet Sales Progress toward lower end of full-year forecast 48.6 / Progress toward upper end of full-year forecast 45.6
Segment resultsNew Businesses Net Sales ¥266 million / Composition ratio ¥38.9 million / Existing Businesses Net Sales ¥417 million / Composition ratio ¥61.1 million
Breakdown of Factors Affecting the ChangeFactors Increase in gross profit / Amount ¥6 million, Factors Increase in Goodwill Amortization / Amount ¥-10 million, Factors Higher other SG&A expenses / Amount ¥-9 million
Key KPIsIndicator name Revenue contribution from new businesses / Value 38.9 % / Year on year against the same period last year Not disclosed, Indicator name Existing-business revenue mix / Value 61.1 % / Year on year against the same period last year Not disclosed, Indicator name Internet advertising market size / Value ¥40,459 100 million / Year on year against the same period last year ¥10.8 100 million, Indicator name Internet advertising expenditure as a percentage of total advertising expenditure / Value 50.2 % / Year on year against the same period last year Not disclosed, Indicator name Number of intent keywords for ウルテク / Value 10 x (versus the previous level) / Year on year against the same period last year Not disclosed
Market Size / ShareTotal advertising spend ¥80,623 100 million (YoY +5.1%) / Internet advertising expenditure ¥40,459 100 million (YoY +10.8%) / Video advertising ¥10,275 100 million (YoY +21.8%) / Social Advertising ¥13,067 100 million (YoY +18.7%) / Internet advertising spend mix 50.2 %
New initiativesMaking the proprietary LOGLY Ads targeting feature “Insight Match” standard and adopting a new delivery algorithm, Securing advertising inventory through header bidding connections, Revamping the ウルテク service website and supporting customers with a customer strategy database, Fully launching performance-based operational support for social media marketing, Opening a creative hub scheduled for December, Launching a B2C business covering fan clubs and merchandise, Adding Amazon Ads support to the AI advertising operations agent “mureo”, Partnering with digital media companies in the native advertising field, Launching the ウルテク Web Sales service
Items this document does not state (15)
Operating profit marginSelf-assessment against the planUnit price and quantity metricsNumber of stores and locationsNumber of employeesAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookMedium-term management plan targetsFinancial targetsAnnual DividendPayout ratioAcquisition of treasury sharesCapital expendituresOrders received and order backlogKey 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.

In the existing businesses, advertising revenue declined as traffic on the open web fell, while higher revenue from the social media marketing business offset the decline. The stated reasons for the wider operating loss were higher goodwill amortization related to earn-outs and increased selling, general and administrative expenses, including costs to remediate internal controls.

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Financial Results Briefing Materials for the Second Quarter of the Fiscal Year Ending March 2027 | logly,Inc. (6579) timely disclosure | Komori