CYND Co.,Ltd. Q4 FY2025 earnings call

• Mission and Core Business

  • Sinded's mission is to deliver meaningful connections between businesses and customers through the internet, with a focus on digitizing reservation and customer management workflows for the beauty and salon industry.
  • Both core products streamline the fragmented manual workflow of managing reservations across multiple third-party booking platforms, reducing administrative burden and human error for salon operators.

• Sales and Distribution Model

  • BeautyMerit uses a hybrid model: a direct sales team focused on urban centers plus an agency network of beauty product wholesalers, who earn commission for referrals and benefit from expanded product sales through the platform's built-in e-commerce integration.
  • Kanzashi uses a partner-led model with almost no in-house direct sales force, relying on distribution through partner booking platforms and POS system providers.

• Operational KPIs and Updates

  • The slight decline in BeautyMerit ARPU is a result of successful acquisition of large salon chains, which receive volume discounts; this dynamic drove stronger than planned overall ARR growth from expanded contracted store count, offsetting the per-store ARPU impact.
  • Consistent low churn confirms that the business is not materially impacted by salon closure risks, with no unusual changes in churn composition (approximately 40% of churn comes from closures, in line with historical trends).
  • Headcount ended the year at 116 employees, nearly matching the planned target of 117, with the new office relocation supporting improved hiring outcomes.
  • The company released a beta version of its new BM Smart Mirror product, which adds value to customer waiting time at salons and explores retail media opportunities in the long-stay high-repeat beauty salon environment, with trial testing across partner stores planned before full commercial launch.

Sinded Group operates two core product segments under a subscription model for the beauty and salon industry: 1. BeautyMerit (operated by Sinded): This is a full-suite vertical SaaS solution offering branded custom mobile apps, centralized multi-channel reservation management, CRM, and POS integration. For FY2025 March, BeautyMerit had an average monthly ARPU of 15,447 yen, and drove the majority of group subscription revenue which grew 15.4% year-over-year. 2. Kanzashi (operated by subsidiary Pacific Porter Inc): This is a low-cost reservation consolidation product priced at 5,500 yen/month (tax-included), focused on unifying availability management across third-party booking sites. Kanzashi had an average monthly ARPU of 4,186 yen, and grew on track with plans, with lower-than-expected operating costs that led to full-year profits exceeding plan. Overall group full-year results: Total revenue was 2.241 billion yen (-0.1% vs full-year guidance, +14.8% YoY), EBITDA was 0.57 billion yen (+5.7% vs guidance, +18.9% YoY), ARR was 2.21 billion yen (+15.2% YoY), operating profit was 0.237 billion yen (+6.3% vs guidance), net income attributable to parent was 0.112 billion yen (+180.6% vs guidance driven by deferred tax asset recognition at Pacific Porter). Total contracted stores reached 20,699, +18.1% YoY, exceeding the initial target of 20,000 stores. Group-level customer churn was 0.71%, maintaining a very low stable rate.

• FY2026 March full-year guidance: Group total revenue is projected at 2.582 billion yen, representing 15.2% YoY growth, aligned with the company's long-term compound annual growth target of at least 15%.
  • The core priority remains growing contracted store count, with a target of exceeding 23,000 total contracted stores by the end of FY2026 March.
  • Pacific Porter has intentionally guided lower EBITDA and operating profit growth for FY2026, as it plans to reinforce existing profits into growth investments including new inside sales capabilities and expansion of its partner network.
  • Mid-term financial target for FY2027 March is total revenue of at least 3.0 billion yen, with a maintained EBITDA margin of 20% to 30% while growing revenue. The company will update guidance if additional growth from new business lines emerges.
  • Sinded (parent entity) expects to continue growing both revenue and profit, following last year's successful hiring round that allows it to focus on systematizing sales enablement to grow the overall capability of its direct sales team.

• No material operational or financial risks were explicitly discussed in the available transcript. The company noted that customer churn remains very low and stable, with no evidence of broad market stress increasing salon closure rates beyond historical norms.

Q: What revenue does BM Smart Mirror expect to generate in FY2026 March, and how will it impact Sinded's long-term business model? / A: The transcript cuts off before the full answer, but management framed the product as an early-stage strategic beta trial focused on exploring the retail media opportunity in beauty salons, not as a material revenue contributor for the current fiscal year. The offering addresses a common industry pain point of long customer waiting times, and will be tested across multiple partner locations to refine the product before full commercial rollout. / Q: What are Pacific Porter's plans for strengthening its sales distribution? / A: The Q&A text is incomplete in the transcript, but management confirmed earlier that Pacific Porter will invest existing profits into new growth channels including inside sales and expanded partner networks in FY2026, intentionally reducing near-term profitability to build long-term scale. It currently relies almost entirely on partner-led sales, and the investments are designed to diversify its customer acquisition channels. / Q: What is Sinded's full strategic plan for FY2026 March? / A: The company will target 15.2% YoY revenue growth, with contracted store count growth as the core top-line KPI. It plans a modest net hiring increase of 6 to 7 employees, with a focus on developing the sales capability of hires made in FY2025 rather than large-scale new hiring. The strategy is built around two core priorities: testing new customer acquisition channel diversification to support the mid-term 3.0 billion yen revenue target for 2027, while strengthening the core existing sales foundation to hit FY2026 targets and set up future growth.