The year-over-year growth rates for FX-neutral revenue and gross profit reached the highest level in the past eight quarters, underscoring strong business momentum
Highlights and achievements of Q2 FY25
- Revenue reached a record high of JPY 10.3 billion, with a robust 27% YoY growth (JPY 11.0 billion with a 35% YoY growth on a FX neutral basis)
- The YoY growth rates for revenue (35% on an FX-neutral basis) and gross profit (38%) both reached their past 8 quarters’ high, marking a remarkable trajectory
- Gross profit grew 38% YoY to a record JPY 5.8 billion, with an all-time high gross margin of 56.1%. This significant margin improvement was driven by both high-margin products and ongoing margin expansion from the core business
- Profitability outperformed, as operating profit soared to a record high of JPY 806 million, elevating the operating margin to 7.8% with a remarkable 130% YoY growth
- Strong performance fueled by continuous robust growth in key markets, a 26% YoY increase in NEA (35% on an FX-neutral basis), and 37% YoY growth (48% on an FX-neutral basis) in the US & EMEA
Stellar growth momentum powered the close of Q2 FY25.
Appier Group Inc. (TSE: 4180) today announced its earnings results for the second quarter of fiscal year 2025. The company delivered a record-high revenue of JPY 10.3 billion, marking robust 27% YoY growth (JPY 11.0 billion and a 35% on an FX-neutral basis), driven by core business expansion and the strategic contribution from AdCreative.ai in key regions.
Record-high gross margin and operating profit propel the company’s profitability momentum. The YoY growth rate for FX-neutral revenue was up 35% and gross profit was up 38%, both reaching an eight-quarter high, revealing Appier’s successful strategy and devoting resources to high-margin products to accelerate market penetration.
Appier’s gross profit also reached a record high of JPY 5.8 billion, representing 38% YoY growth, surpassing revenue growth. Gross margin hit an all-time high of 56.1%, a jump of 4.8 percentage points YoY, demonstrating ongoing margin expansion from the contribution of high-margin products, continued organic margin improvements, and advanced adoption of GenAI technology.
Profitability significantly improved, with operating income surging to a new all-time high of JPY 806 million, reflecting a remarkable 130% YoY increase. Operating margin nearly doubled with YoY growth up to 7.8%, despite the newly recorded OPEX associated with the full consolidation of AdCreative.ai, underscoring Appier’s strong operating leverage from enhanced productivity, resilient business models, and disciplined execution despite foreign exchange headwinds. Core free cash flow also turned positive, reflecting stronger cash generation.
Strong outperformance in key regions, NEA and US & EMEA
Revenue growth remained balanced, with 51% of incremental revenue from existing clients across NEA e-commerce and positive momentum in the US and EMEA. The remaining 49% came from new customers in key regions, supported by NEA's vertical diversification and strong US and EMEA traction from vertical and product expansion. Appier's client base expanded by 14% YoY, LTM Net Revenue Retention (NRR) remained strong at 120%, with quarterly ARPC growing 12.6% YoY on an FX-neutral basis, propelled by strategic customer expansion.
Northeast Asia (NEA)'s growth accelerated to 35% YoY on an FX-neutral basis, with solid existing customer expansion and accelerated new customer acquisition; while the US & EMEA achieved an even stronger growth rate of 48% YoY on an FX-neutral basis, fueled by customer base expansion and product diversification.
The accelerated deployment of GenAI technology throughout Appier’s platforms is unlocking powerful product synergies that elevate the company’s creative capability and amplify go-to-market success. By harnessing differentiated GenAI-driven insights and scalable execution, these innovations are starting to enhance Appier’s profitable growth and are poised to further strengthen its ROI and operational efficiency going forward.
Sustained growth driven by disciplined OPEX and AI-powered value creation
The company's disciplined, cost-effective management and scalable revenue growth, driven by product differentiation from R&D investment and AI-powered automation, have led to an ongoing improvement in the OPEX-to-revenue ratio. Appier’s R&D spending has created a positive cycle, delivering greater operating leverage and efficiency as its business scales.
"AI continues to be a powerful engine in driving efficiency, enabling us to achieve strong profitability goals. Following the combination of AI creative content and AI-empowered marketing software suites, we are confident in delivering differentiated products that drive business results and sustaining our growth momentum," said Chih-Han Yu, CEO and co-founder of Appier. "Appier has been pioneering Agentic AI for over a decade. Riding the global wave of agentic AI adoption, we are now embarking on our next transformation by integrating multi-AI agents across the full product suite and internal workflow, unlocking greater value for our long-term growth."
Strong foundation in agentic AI for the next phase of growth
Building on a strong foundation in agentic AI, Appier is poised for its next phase of growth. The company will continue to introduce new agentic AI-powered solutions—including agent-delivered ROI, creativity, and overall operational efficiency—to fuel both product innovation and internal performance.
About Appier
Appier (TSE: 4180) is an AI-native SaaS company that empowers business decision-making with cutting-edge AdTech and MarTech solutions. Founded in 2012 with the vision of “Making AI Easy by making software intelligent,” Appier endeavors to help businesses turn AI into ROI with its Ad Cloud, Personalization Cloud, and Data Cloud solutions. Now Appier has 17 offices across APAC, the US and EMEA, and is listed on the Tokyo Stock Exchange. Visit www.appier.com for more company information, and visit ir.appier.com/en/ for more IR information.
