freee KK

4478

Equity

ISIN JP3826520003 / Valor 51008426

Tokyo Stock Exchange (2024-11-20)

JPY 2,628.00-2.95%

freee KK
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About company

Freee KK is a prominent provider of cloud-native, integrated ERP software solutions tailored for small and medium-sized businesses (SMBs). The company focuses on streamlining and automating various business processes, including accounting, human resources, and payroll management, through its comprehensive software platform. Founded by Dice, who has a diverse background in marketing, product management, and finance, freee aims to enhance operational efficiency and support the growth of SMBs by offering user-friendly and scalable solutions. The company's expertise in cloud technology and its commitment to innovation have positioned it as a leader in the Japanese market for business management software.

Summarized from source with an LLMView SourceSector: Technology

Annual Recurring Revenue (ARR)

In the third quarter of the fiscal year ending June 2024, freee KK reported an ARR of 25.7 billion yen, marking a 29.0% increase compared to the same period last year. This growth was driven by a 33.8% increase in the Corporate segment and an 18.1% increase in the Self-employed segment.

Number of Paying Customers and ARPU

Freee KK's number of paying customers in the Corporate segment grew by 17.1% year-over-year to 543,370. The Average Revenue Per User (ARPU) saw an overall growth rate of 10.2%, with the Corporate segment growing by 8.3% and the Self-employed segment by 3.6% compared to the same period last year.

Revenue and Gross Profit

For the third quarter of the fiscal year ending June 2024, freee KK reported revenue of 6,651 million yen, a 30.5% increase compared to the same period last year. The gross profit margin remained steady at 82.1%, within the projected range of 80 to 85 percent.

Adjusted Operating Profit

Freee KK's adjusted operating profit for the third quarter was -1,969 million yen, with an adjusted operating profit margin of -29.6%. Both figures showed improvement from the previous quarter, attributed to the normalization of advertising investments related to the Invoice System.

Financial Outlook

Looking ahead, freee KK expects adjusted operating profit to improve quarter by quarter, aiming to achieve breakeven on an adjusted operating profit base by the fiscal year ending June 2025. The company is focusing on top-line growth and productivity improvements to meet this target.

Summarized from source with an LLMView Source

Key figures

-21.7%1Y

-64.7%3Y

%5Y

Performance

57.3%1Y

63.4%3Y

63.4%5Y

Volatility