4168.T

Business Overview & Core Mission

• Mission: "Make digital simple, enrich society"
• Product portfolio (all no-code × AI all-in-one SaaS products with strong customer success support):
  • Core flagship product: Yappli (no-code app development platform, accounts for the majority of revenue)
  • New product 1: Yappli WebX (no-code website building platform)
  • New product 2: Yappli MobileOrder (mobile ordering for restaurants, rebranded from acquired Chusemonster (now Yappli Food Connect))
• Focus solution verticals: Marketing (store/EC apps: Yappli for Marketing, TAM of 500.0 billion yen) and HR (internal employee communication apps: UNITE, TAM of 330.0 billion yen), plus additional solutions in B2B and other segments.

Four Core Growth Strategies

• Product Strategy:
  • Continue strengthening existing core Yappli product, with ongoing investments in design, UX, data utilization, integrations, and AI to improve product value
  • Expand product coverage across all customer touchpoints: serve existing loyal customers with core Yappli, target light customers with upcoming Yappli Mini App for LINE Mini Program and newly launched Yappli MobileOrder, target new potential customers with Yappli WebX, covering all customer segments via M&A and in-house development
  • Scale AI integration: already rolling out AI features across Yappli and Yappli WebX, with plans to expand AI use to professional services going forward
• Solution Strategy:
  • Marketing vertical: The market has reached a certain level of maturity, so the company will strengthen multi-product strategy to provide advanced professional services and solve cross-channel customer problems, pursuing further growth. Deploy ABM sales strategy for 800 large enterprise targets to drive existing app replacement, and optimize traditional marketing to gain share from 6,000 mid-market targets
  • HR vertical (UNITE): The market is still in an early stage, and UNITE contract growth has been extremely strong. The market is shifting from only measuring engagement scores to implementing actions to actually improve engagement, so Yappli aims to lead the market with new value propositions of "communicate", "connect", and "learn". Key initiatives: 1) Increase exhibition/seminar activities to 1.5x of last year's level, 2) Establish a dedicated UNITE organization to speed up development and sales, 3) Invest in platform expansion and enhanced dashboard analytics functionality
• Investment (M&A & Equity) Strategy:
  • Pursue three core investment tracks to drive non-linear growth, which has accelerated since two years ago:
  1. Scale within the same core segment: Completed GMO AppCapsule asset transfer (2019), capital alliance with Fuller (2024), and acquisition of Chusemonster (2025), will continue to build partnerships with competitors and strong niche players
  2. Expand into adjacent segments: Use M&A to acquire high-synergy products that enable cross-selling to existing customers. Completed smartLP asset transfer (rebranded to Yappli WebX) two years ago, and acquired Chusemonster (rebranded to Yappli MobileOrder) at the end of 2025
  3. Expand professional services: No M&A completed yet, plans to pursue partnerships/M&A with DX consulting firms, development agencies, and SIers going forward
  • Yappli is currently in a profitable phase, so it will pursue active M&A investment beyond existing core business
• Human Capital Investment: Invest in individual employee growth, strengthen organizational capabilities, and invest in preserving the company's unique culture and working environment to support sustained growth

2025 Operational & Financial Highlights

• Transitioned to consolidated accounting from Q4 2025 following the acquisition of Yappli Food Connect. Fuller is now accounted for via the equity method, and Yappli Food Connect's income statement will be consolidated starting in FY2026; the impact of transition on FY2025 results is limited
• Full year 2025 gross profit exceeded 4.0 billion yen, +10.5% YoY (double-digit growth), with gross margin maintained at 66.1% despite increased labor and app marketing costs, driven by server cost efficiency improvements
• Full year 2025 operating profit: 880 million yen, +60% YoY, with operating margin of ~15% (high profitability). Q4 2025 operating profit was 158 million yen, down from previous quarters in 2025 due to upfront investment in talent, advertising, and R&D for FY2026, but still +125% YoY
• Advertising and promotion expense: Full year 2025 total was ~700 million yen, with 690 million yen actually spent (10% below initial plan). The company cut mass marketing spending while maintaining lead acquisition spend at 658 million yen, shifted focus to events and content marketing, and improved lead acquisition, deal, and order conversion efficiency significantly
• Headcount: 294 consolidated full-time employees (including subsidiaries), +26 employees YoY following strengthened hiring. Full year 2025 personnel cost increased 10.9% YoY driven by headcount growth and salary increases
• LTV/CAC (LTM): Increased significantly to 5.5x, as lower customer acquisition cost from higher Q4 acquisition volume offset the impact of slightly higher churn on LTV
• New product launch: Successfully launched Yappli MobileOrder for restaurants after acquiring and rebranding Chusemonster, adding mobile ordering capabilities to the existing product portfolio. Notable customer wins include Sarutahiko Coffee (using both Yappli for Marketing and Yappli WebX) and ANA Holdings (deploying UNITE for all employee internal communication)

• FY2026 (December 2026) Consolidated Financial Guidance:
  • Total revenue: 6.8 billion yen (double-digit growth from FY2025), almost all from core Yappli business, with a small contribution from newly consolidated Yappli Food Connect
  • Operating profit: 1.0 billion yen, reaching the 1 billion yen milestone. Operating margin is expected to remain at ~15% consistent with FY2025. The company could have guided for over 1.0 billion yen, but the guidance includes increased investment in office expansion and environment upgrades to support higher in-office rates for hybrid work, leading to incremental costs
  • Ordinary profit: 980 million yen; Net income: 930 million yen (including tax effect impacts); EBITDA: 1.03 billion yen; Adjusted EBITDA (including stock compensation): 1.1 billion yen, with adjusted EBITDA margin expected to exceed 16%
• Cost Guidance:
  • Personnel cost: ~2.4 billion yen, with headcount planned to reach ~320 employees, continuing 10% YoY personnel investment to support new product and multi-product strategy execution
  • Advertising and promotion expense: ~700 million yen, no mass marketing planned. The company will focus on lead generation-focused advertising, expand targeted marketing activities to improve deal conversion efficiency, with ~180 million yen invested evenly across each quarter
• Tax Effect Update: 2026 will be a transition year. Prior to 2025, net income was boosted by tax reduction benefits from past upfront investments. In 2026, the company will nearly eliminate remaining carry-forward losses, and starting from 2027, results will reflect core operating performance without special tax benefit impacts
• Shareholder Return Policy:
  • Yappli started shareholder returns in 2025, and will continue stable consistent returns. For 2026, planned interim and year-end dividends are 7 yen per share each, with a planned payout ratio of 19.2%.
  • Share repurchase is undecided for 2026; any repurchase will be disclosed promptly if approved. The company will grow business to support steady increases in per-share dividends
• Long-term Target: By 2030 (4 years from 2026), target total revenue exceeding 10.0 billion yen and adjusted EBITDA exceeding 2.0 billion yen

Yappli operates two revenue segments: Platform Revenue (stock-based model, core system usage fees) and Professional Service Revenue (flow-based one-time revenue for onboarding, development support, and growth support).

• Full year 2025 consolidated total revenue: 6.05 billion yen, +9.9% YoY. Platform revenue grew 10.2% YoY (double-digit growth), reaching over 6 billion yen (all-time high). Professional service revenue in Q4 2025 grew 22.8% YoY, driving Q4 total revenue of 1.6 billion yen (+12.2% YoY, all-time high quarterly revenue). By solution (contract count share):
• Yappli for Marketing (retail/store marketing): 585 contracts, +2 net increase from previous quarter, makes up the majority of total contracts
• UNITE (HR employee engagement): grew sharply, with net new additions reaching 20 contracts for the first time, and its share of total contracts is increasing steadily
• New products (Yappli WebX, Yappli MobileOrder): currently account for only 1% of total contracts Yappli standalone Annual Recurring Revenue (ARR): 5.185 billion yen, +9.4% YoY. Total contracted customers (including Yappli WebX): 939 total, +5.2% YoY (21 net new app-only contracts, reaching 929 app-only contracts). Average monthly usage fee: 460 thousand yen, +4.1% YoY.

• Slightly elevated churn rate: LTM churn rate is 0.92%, driven by increased churn in the Yappli for Marketing (store) segment. The company is strengthening business and development capabilities to address the issue. Churn is expected to stay at the current level through the first half of 2026, and improve starting in the second half of 2026
• FY2025 revenue came in slightly below guidance: The original full year revenue guidance was 6.2 billion yen, and actual revenue was 6.056 billion yen (97.7% of guidance, 2.3 percentage points below target). The miss was caused by large prospective deals that the company focused on winning in Q4 but did not close within the fiscal year

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