Rebase: Transcript of the Briefing on Financial Results for the First Quarter of the Fiscal Year Ending March 2027 (1)

In the first quarter of the fiscal year ending March 2027, revenue was ¥568 million, up 14.9% year on year. The company posted an operating loss of ¥47 million, but excluding the impact of ¥58 million in one-time expenses, operating profit would have been ¥11 million. Usage reached 453 thousand transactions, the average unit price was ¥4.3 thousand, and gross transaction value increased 15% year on year to ¥1,954 million. The number of listed spaces also grew steadily to 47.9 thousand.

For the full fiscal year ending March 2027, the company forecasts revenue of ¥2,400 million, up 10.0% from the previous fiscal year, and operating profit of ¥72 million, down 25.8%. Excluding the ¥58 million in one-time relocation expenses, operating profit is expected to increase 34% from the previous fiscal year to ¥130 million, although proactive medium- to long-term investment is expected to continue.

Although a decline in profit is forecast for the current fiscal year, growth in the existing business has not stopped. Business expansion through the development of IT platforms for skill sharing, freelancing and other services, as well as expansion into peripheral real estate businesses through collaboration with office-related solution providers and companies involved in the use of vacant homes, is expected. The decline in profit is described as a figure arising in the process of balancing existing and new businesses, and an improvement in that balance and a return to a growth trajectory are viewed as possible.

The company is targeting revenue of ¥3,000 million and underlying operating profit of ¥700–800 million, excluding investment, for the fiscal year ending March 2029. It also presented an estimate indicating a market capitalization of approximately ¥7 billion based on a PER of 15 times, while noting that profit could fluctuate depending on future investment levels.