TAIPEI, TAIWAN – Media Outreach – August 14, 2023 –
Q2 FY23 Highlights and Achievements
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Revenue increased 42% year-on-year to historically high quarterly revenue of 6.2 billion yen
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Highest QoQ revenue growth rate (11.1%) for Q2 since IPO in 2021, driven by higher market expansion and deeper vertical penetration
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Gross margin hit an all-time high of JPY 3.2 billion with a year-on-year growth rate of 45%, while gross margin improved to 51.3%
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Operating profit and net profit exceed forecasts to turn positive with an operating margin of 1.3% and a net profit of 1.9%
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EBITDA grew 158% YoY with a margin of 8.9%
Exceeded forecasts in first-half revenue performance, charting course to achieve year-end targets
Appier Group Inc (TSE: 4180), hereafter referred to as Appier, today announced its results for the second quarter of fiscal 2023. This quarter, Appier achieved its strongest Q2 performance in terms of QoQ growth compared to at T1. This achievement positions the company firmly on a trajectory to meet its 2023 goals. The company’s progress in the e-commerce and digital content verticals, as well as its strong United States, the EMEA region and Northeast Asia, testify to its exceptional performance in the first half of 2023.
Appier reported accelerated revenue growth of 42% year-on-year to an all-time high of 6.2 billion yen. This figure was accompanied by a gross margin growth of 45% year-on-year, reaching an all-time high of 3.2 billion yen. Appier’s operating and net income exceeded expectations to turn positive from last quarter, reflecting a notable operating margin of 1.3% and net profit margin of 1.9%. The company’s financial health was underscored by the 158% year-on-year growth in EBITDA, reaching an all-time high of 550 million yen with a margin of 8.9%.
These achievements underscore Appier’s unwavering commitment to sustainable and profitable growth, underpinned by its core principles of transforming AI into predictable returns. Growing demand for ROI-driven solutions, coupled with growing acceptance of AI trends, has played a pivotal role in improving customer adoption and adoption of key differentiators, resulting in to accelerated results in the second quarter that exceeded the initial budget forecast.
Embrace Diverse Verticals and Strengthen Relationships for AI-Driven Customer Growth
Appier saw 22% year-over-year growth in its overall customer base, with the majority of new customers coming from the verticals of digital content (39%), e-commerce (22%) and consumer and BFSI brands (22% ). This expansion also spurred a 16.5% year-over-year increase in average revenue per customer (ARPC), driven by the expansion of existing customer relationships and increased activity within the digital content vertical, driven by factors seasonal. This aligns with the company’s continued strategic focus on acquiring large enterprise customers, driven by growing confidence in AI-powered solutions among major brands.
Appier also maintained a low overall customer churn rate of 0.619% this quarter, underscoring its success in nurturing lasting partnerships with its customers. The company’s financial strength and growth trajectory is further enhanced by the fact that its annual recurring revenue is growing at 35% annually.
Strong growth momentum fueled by expanding market reach
Vertical expansion and deeper engagement with existing customers, particularly in the e-commerce vertical, fueled impressive growth in Northeast Asia (66%). Meanwhile, the US and EMEA markets (15%) posted robust revenue growth of 78% year-over-year, with overall contribution up 15% from 12% a year ago.
“Our first-half revenue performance exceeded our projections, laying a solid foundation for our growth trajectory over the coming quarters. Our strength in cutting-edge AI capabilities helps us push business boundaries and setting new benchmarks in the field of digital marketing Our years of R&D in predictive AI and generative AI allow us to provide differentiated products to increase the return on investment for our customers,” said Dr. Chih-Han Yu , CEO and co-founder of Appier. “Our continued pursuit of vertical expansion, combined with increased vertical awareness and strategic market penetration, fuels our confidence in achieving our year-end targets and sustaining strong growth well into the future. »
Pioneering Generative AI Synergy to Transform Business-Customer Dynamics
Leveraging the very essence of Appier’s AI, combined with the increased capabilities of predictive AI and the synergy of generative AI, Appier is poised to revolutionize business-customer interactions and bring new ideas for advanced applications. This insight derived from predictive AI acts as a compass for generative AI, making it easier to create content that produces exceptional results. Simultaneously, the influx of data from generative AI allows predictive AI to continuously refine its model training, improving campaign performance. One speeds up output generation, while the other ensures increased efficiency. This initiative embodies Appier’s commitment to delivering personalized marketing experiences and positioning itself at the forefront of the era of generative AI.
Looking ahead, Appier remains poised for continued success in the second half of the fiscal year. The momentum generated by outstanding performance should propel even more substantial growth in the digital content and e-commerce verticals. With this outlook and continued alignment to its core values, Appier is well positioned to not only maintain its remarkable financial growth trajectory, but also to further increase its impact in the dynamic landscape of technology-based enterprise solutions. AI.
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