TIMEE (215A) Q3 2024 earnings summary

Executive summary

• Net sales for FY24/10 3Q YTD reached ¥19.02B, up 72.6% YoY, driven by a surge in active client accounts and strong platform growth.

• Operating profit for 3Q YTD was ¥2.79B (+60.6% YoY), with a 14.7% margin, reflecting lower worker marketing costs and increased client marketing investment.

• Registered workers surpassed 8.6 million and client accounts exceeded 286,000, driving transaction volume up 72.4% YoY to ¥64.14B.

• The company was listed on the Growth Market of the Tokyo Stock Exchange on July 26, 2024.

• Active client accounts grew 98.8% YoY to 170.1K, while transaction volume hit ¥22.18B (+65.2% YoY).

Financial highlights

• 3Q YTD net sales: ¥19.02B (+72.6% YoY); operating profit: ¥2.79B (+60.6% YoY); net profit: ¥1.47B.

• Gross profit: ¥18.14B (gross margin 95.3%).

• Basic EPS: ¥15.42; diluted EPS: ¥13.70 after a 3,000-for-1 stock split on March 31, 2024.

• No dividends paid or forecasted for FY24/10.

• EBITDA for 3Q YTD: ¥2.64B (margin 13.9%).

Outlook and guidance

• FY24/10 forecast: net sales ¥27.56B (+70.7% YoY), operating profit ¥4.09B (margin 14.8%), profit ¥2.25B (margin 8.2%), basic EPS ¥23.69.

• Continued aggressive investment in client marketing expected to support further growth.

• The company expects continued demand growth due to labor shortages and rising minimum wages in Japan.