Appier Group KK

4180

Equity

ISIN JP3160960005 / Valor 110209036

Tokyo Stock Exchange (2024-09-13)

JPY 1,687.00-3.38%

Appier Group KK
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About company

Appier Group KK, established in 2012, operates as a software-as-a-service (SaaS) provider specializing in leveraging artificial intelligence (AI) to enhance business decision-making processes. The company's core mission revolves around making AI accessible to businesses, aiming to improve customer understanding, predict consumer behavior, and drive more informed decisions for better business results. Appier's suite of products is tailored to assist companies in achieving a comprehensive understanding of their customer base, facilitating a digital transformation in digital marketing. With a global footprint that extends across the Asia Pacific, the U.S., and Europe, Appier serves over 1,600 clients, showcasing its significant growth from its early days in a modest four-bedroom setup to a multinational presence. The company's focus on AI-driven solutions positions it as a key player in the digital marketing and business analytics sectors, helping companies navigate the complexities of customer data and engagement in the digital age.

Summarized from source with an LLMView SourceSector: Technology

Revenue Growth

Appier Group KK reported a significant revenue increase of 32% year-over-year (YoY) for FY2024 Q2, reaching an all-time high of JPY 8.2 billion. This growth was driven by strong performance in Northeast Asia (NEA) and the US/EMEA regions, with NEA showing a 35% YoY growth and the US/EMEA sustaining a robust 65% YoY growth.

Profitability Improvement

Appier Group KK's operating profit for FY2024 Q2 increased 4.4 times YoY to JPY 351 million, with an operating margin of 4.3%. On an FX-neutral basis, the operating profit increased 6.4 times, achieving a margin of 6.7%. This improvement was attributed to robust growth, strong sales and marketing (S&M) and general and administrative (G&A) leverage, and productivity enhancements per headcount.

Shareholder Returns

For the first time, Appier Group KK initiated a share buyback program in FY2024 Q2. This decision was based on a positive outlook for the second half of the year and the opportunity to enhance shareholder returns at a lower cost, given the current share price versus the consistent progress in profitable growth since the company's IPO.

Gross Profit and Margin

Appier Group KK achieved a record quarterly high gross profit of JPY 4.2 billion in FY2024 Q2, representing a 32% YoY growth. The gross margin improved by 1.4 percentage points YoY to 52.7% on an FX-neutral basis. Despite facing FX headwinds, the company managed to achieve steady gross margin improvement while investing in algorithm enhancements for future profit growth.

Operating Expense Management

Appier Group KK's operating expense-to-revenue ratio improved by 2.4 percentage points YoY to 48.6% in FY2024 Q2. The S&M expense-to-revenue ratio decreased by 4.9 percentage points YoY to 22.2%, driven by significant improvements in sales productivity. The G&A expense-to-revenue ratio reduced by 2.2 percentage points YoY to 5.0%, reflecting further operational efficiency. These improvements offset a 4.8 percentage point YoY increase in the R&D expense-to-revenue ratio.

Summarized from source with an LLMView Source

Key figures

-1.40%1Y

-7.61%3Y

%5Y

Performance

54.1%1Y

60.4%3Y

64.1%5Y

Volatility