TIMEE (215A) Q4 2024 earnings summary

Executive summary

• Net sales for FY24/10 reached 26.88bn JPY, up 66.5% year-over-year, driven by growth in active client accounts (AAs), especially in retail and logistics industries.

• Operating profit rose 117.0% year-over-year to 4.25bn JPY, with operating profit margin (OPM) improving to 15.8% due to disciplined investment and reduced worker marketing costs.

• Transaction volume increased 54.0% year-over-year to 90.7bn JPY, with a high fill rate of 86.1% and stable average take rate of 29.6%.

• Profit for the period was 2.80bn JPY, up 55.2% year-over-year, despite a slight decrease in profit margin due to normalization of tax and listing costs.

Financial highlights

• Net sales: 26.88bn JPY (+66.5% YoY); Operating profit: 4.25bn JPY (+117.0% YoY); Profit: 2.80bn JPY (+55.2% YoY).

• Gross profit margin remained high at 95.3%; OPM improved by 3.7pt YoY to 15.8%.

• Transaction volume per AA decreased 13.0% YoY due to a higher proportion of small-sized clients, but the rate of decrease is narrowing.

• Active client accounts (AAs) reached 649k, up 77.1% YoY; transaction volume per AA was 139k JPY.

Outlook and guidance

• FY25/10 net sales forecast: 34.4–35.7bn JPY (+28.0% to +32.8% YoY); operating profit forecast: 6.0–6.71bn JPY (+41.3% to +58.0% YoY), with OPM expected to improve to 17.4–18.8%.

• Guidance reflects potential risks from increased competition and stricter measures to prevent unauthorized use, especially impacting small-sized clients.

• Continued focus on disciplined marketing investment, efficient acquisition of large/mid clients, and maintaining high fill and take rates.