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 net profit at ¥1,308.6 million, aided by deferred tax assets.

• Transaction volume was ¥29,905 million, up 39.6% year-on-year, with over 200,000 active client accounts and transaction volume per account exceeding ¥144,000.

• Growth was driven by labor shortages in logistics and retail, while food sector growth was modest due to cost pressures and anti-fraud measures impacted small client usage.

• Operating margin improved to 16.4%, supported by disciplined investment and cost control, especially in HR and marketing.

• The company operates a single business segment focused on the on-demand job platform.

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 fill rate at 84.6%.

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

• Logistics and retail sectors showed strong momentum, while food sector growth was modest due to ongoing cost pressures.

• No dividends were paid or forecasted for the fiscal year.

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 projected at 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 cause a temporary dip in February, with recovery anticipated in March and April.

• The forecast remains unchanged from the previous announcement.