ANYCOLOR (5032) Q1 2025 earnings summary

Executive summary

• Q1 FY2025.4 revenue declined 16.9% year-over-year to ¥7,436 million, with operating profit down 32.8% to ¥2,719 million and net profit down 32.8% to ¥1,879 million, mainly due to deferred commerce revenue and event cancellations or postponements.

• Livestreaming remained stable, but commerce underperformed due to shipment delays and lost event-related sales.

• The company operates primarily in the VTuber business, with 165 VTubers and 1.35 million ANYCOLOR IDs, both up from the prior year.

• Despite Q1 shortfall, full-year and first-half forecasts remain unchanged, expecting recovery from deferred revenue and additional measures.

Financial highlights

• Q1 gross margin was 47.1%, with operating margin at 36.6% and net margin at 25.3%.

• Gross profit for the quarter was ¥3,936 million, with a gross margin of 53% (down from 54% a year ago).

• Direct variable costs were 44.6% of revenue, while SG&A rose to 10.5% of revenue due to increased hiring and one-time promotion expenses.

• Cash and cash equivalents at Q1-end were ¥9,098 million, with total assets at ¥17,507 million and net assets at ¥14,237 million.

• Basic EPS for Q1 FY2025 was ¥30.05, compared to ¥45.06 in Q1 FY2024 (adjusted for stock split).

Outlook and guidance

• Q2 FY2025.4 revenue is forecast at ¥10,570 million (+54.0% YoY), with operating profit at ¥4,100 million (+68.1% YoY) and net profit at ¥2,870 million (+68.6% YoY), driven by quarterly rebalancing and new initiatives.

• Full-year FY2025.4 revenue guidance is ¥39,000 million (+21.9% YoY), with operating profit of ¥14,800 million (+19.7% YoY) and net profit of ¥10,360 million (+18.7% YoY).

• Full-year FY2025 guidance maintained: net sales ¥39,000 million (+21.9% YoY), operating profit ¥7,100 million (+9.7% YoY), net profit ¥5,000 million (+11.1% YoY), EPS ¥165.88.

• Interim and year-end dividends of ¥32.50 per share each are planned, totaling ¥65.00 for the year.

• Policy shift to stable, ongoing dividends from surplus, with continued flexible treasury stock purchases.