TIMEE (215A) Q1 2025 earnings summary

Executive summary

• Q1 net sales reached ¥8,642.9 million, up 36.2% year-on-year, with operating profit at ¥1,413.4 million, a 148.7% increase year-on-year and operating margin of 16.4%.

• Net profit surged to ¥1,308.6 million from ¥300 million in the prior year, aided by recognition of deferred tax assets and disciplined cost management.

• Transaction volume rose to ¥29,905 million, up 39.6% year-on-year, with over 200,000 active client accounts.

• Growth was fueled by labor shortages in logistics and retail, while food sector growth remained modest and small client usage declined due to anti-fraud measures.

• The business saw strong growth in registered workers (over 10.4 million) and client accounts (over 343,000).

Financial highlights

• Net sales exceeded the upper limit of Q1 forecast by ¥70 million; operating profit surpassed forecast by ¥574 million.

• Average take rate was 28.8%, with fee rate at 84.6%.

• Transaction volume per active account increased to over ¥144,000.

• Gross profit margin was 95.0% (down 1.2pt YoY); operating profit margin improved to 16.4%.

• Cost reductions in HR, client marketing, and BPO contributed to higher profitability.

Outlook and guidance

• Q2 net sales forecasted at ¥7.9–8.1 billion, up 29.4–32.7% year-on-year; operating profit expected at ¥1.66–1.7 billion, with operating margin of 21%.

• Full-year net sales forecast is ¥34,394–35,700 million, with operating profit of ¥6,000–6,710 million and net profit of ¥4,382–4,932 million.

• Basic earnings per share for the year are projected at ¥45.12–50.78.

• Seasonality expected to impact Q2, with higher profitability anticipated in the second half of the fiscal year.

• The forecast remains unchanged from the previous announcement.