Fiscal Year 2023 Highlights and Achievements
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Exceeding upwardly revised forecasts for total revenues and profits
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Achieved record annual revenue of 26.4 billion yen with a year-on-year growth rate of 36%
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Profit reached an all-time high with a 16-fold increase in operating profit, while operating margin reached 3.0%, net profit margin at 3.8% and EBITDA margin reached 10.7%.
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Annual gross margin grew at a faster rate than revenue growth, at 37% year-over-year
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Strong geographic expansion boosted revenues, with revenues from the US and EMEA achieving 84% year-on-year growth, while NEA achieved 40% year-on-year growth on the back of strong customer expansion. its customers.
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18% increase in customers with a 15% increase in ARPC, maintaining a low monthly churn rate of 0.6%
Guidance for fiscal year 2024
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Year-on-year revenue growth forecast to increase 31% to 34.5 billion yen
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Gross profit growth is expected to outpace revenue growth at 35% year-over-year due to further improvement in gross margin.
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Operating profit increased by 161% to 2.1 billion yen and operating margin doubled to 6.1%
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Expect core free cash flow to be close to break-even as it has improved steadily over time.
Q4 FY23 Highlights and Achievements
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Revenue increased 32% year-on-year and reached an all-time high of 7.6 billion yen.
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The pace of growth in the fourth quarter exceeded the revised November 2023 forecast, as gross margin improved to an all-time high of 53%, alongside a record gross margin of 4 billion yen.
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Operating profit increased 220% year-on-year to a record high of 439 million yen while operating margin reached an all-time high of 5.8%.
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Achieved a historically high quarterly EBITDA margin of 13.7% with 96% year-over-year growth
TOKYO, JAPAN – Media OutReach Newswire – February 14, 2024 –
A record year with strategic expansion and profitable growth
Appier Group Inc (TSE: 4180), now named Appier, today announced its financial results for the year ended December 31, 2023. Appier closed the 2023 financial year with record revenue of 26.4 billion of yen and a growth rate of 36% over one year.
2023 was a pivotal year for Appier, characterized by sustained profitable growth and expansion. This was reflected in the jump in operating profit, which increased sixteenfold to 801 million yen. This substantial growth helped improve the operating margin from 0.3% to 3.0%, as well as a net margin of 3.8% and an EBITDA margin of 10.7%. Additionally, Appier recorded a 37% year-over-year increase in gross margin, outpacing its revenue growth, demonstrating continued gross margin improvement. Technological advancements have been the cornerstone of improving the overall gross margin of Appier products, supporting the company’s successful strategy to increase profitability margins.
Growth has been quantitative and strategic, with the company expanding regionally and vertically. In geographic terms, significant revenue comes from the United States and EMEA (16%), which recorded 84% year-on-year growth. The Northeast Asia region (65%) posted 40% year-on-year growth driven by vertical expansion and a strengthened customer base. Vertically, the company has expanded its focus from its traditional stronghold of e-commerce to make strategic forays into digital content, with an annual growth rate above the company average. This multi-faceted growth strategy underscores the company’s commitment to diversification and innovation, positioning it for sustained success in an evolving market landscape.
Appier’s overall performance reflects strategic balance, with 46% of incremental FY23 revenue coming from existing customers through successful ROI-driven solutions and upsells in e-commerce and digital content . Conversely, 54% was gained from new customers, propelled by aggressive expansion in the US and EMEA, as well as targeted efforts in the digital content sector and engagement with large enterprise customers .
Establish new benchmarks in revenue and profitability
Appier concluded the year on a high note, with the fourth quarter showing remarkable revenue growth of 32% year-on-year, culminating in an unprecedented quarterly revenue of 7.6 billion yen. This growth was complemented by a 34% year-over-year increase in gross profit to 4 billion yen and a significant improvement in gross margin of 53%, attributed to the company’s continued technological advancement. business throughout 2023. Operating profit also saw an impressive increase of 439 million yen. yen, marking an increase of 220% year-on-year. This strong performance last quarter provided a solid tailwind, cementing the year as one of profitable growth and record revenue for Appier.
“2023 was a year of significant growth for Appier, both in terms of revenue and profit, establishing a strong foundation for our future,” said Dr. Chih-Han Yu, CEO and co-founder of Appier. “Our performance over the past year has demonstrated a well-balanced expansion in our financial metrics, which we are committed to continuing in 2024. We aim to continue our profitable growth, capitalizing on our unique position within the industry of AI. Cutting-edge AI technologies and innovation position us to dramatically improve our clients’ business outcomes. Looking ahead, we are focused on building a long-lasting AI software business that helps our customers succeed and truly differentiate in the AI era.
Strong commercial momentum for future growth
Appier’s outlook for 2024 is promising, with the company forecasting an annual revenue increase of 31%, aiming to reach 34.5 billion yen. This growth is expected to be accompanied by a 35% increase in gross profit year-on-year and a notable 161% increase in operating profit to 2.1 billion yen. Additionally, Appier forecasts EBITDA of 4.9 billion yen, a growth of 73% from the previous year. The company’s continued improvements in core free cash flow are expected to bring core free cash flow margin close to breakeven in FY24.
The company is also targeting an operating margin of 6.1%, focusing on working with larger companies offering higher growth opportunities. This strategy will be supported by well-balanced expansion across various verticals and reinforced by effective upselling and cross-selling tactics, preparing Appier for another year of robust growth and profitability.
Annual integration of new growth drivers is crucial to accelerate expansion, and 2024 is no exception. Appier is poised for positive growth and will continue to leverage the potential of GenAI as a core driver of its offerings. Expansion in key regions such as the US, EMEA and NEA, as well as advancements in the digital content sector and penetration into the e-commerce sector, will be at the core of the company’s growth strategy. the company. These elements collectively form the foundation of its approach to exploiting emerging technologies and market opportunities, thereby driving Appier’s momentum this financial year.
https://www.appier.com/fr/
https://www.linkedin.com/company/appier/
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The issuer is solely responsible for the content of this announcement.
