YMIRLINK,Inc. Q4 FY2024 earnings call

• Overall Business Overview
  • ユミルリンク provides cloud-based messaging solutions for corporate marketing communications under the Cuenote brand, including 2 email services, 2 SMS services, newly launched web push, survey, and emergency confirmation services
  • 95% of revenue comes from recurring subscription service fees, with a highly stable stock-type SaaS revenue model; the company maintained a very low average monthly churn of 0.41% for full-year 2024, with net revenue retention (NRR) above 100% for both Mail and SMS services
  • As of end-December 2024, the company has over 2,500 active customer contracts, and achieved 10 consecutive years of revenue growth driven by increasing stock revenue, with all service segments growing year-over-year
  • Completed the acquisition of ROC Inc., a SNS marketing support firm, in September 2024; the company shifted to consolidated financial reporting starting Q4 2024, with only asset/liability consolidation in 2024, and revenue/income consolidation beginning in 2025
  • 2024 Full-Year Overall Financial Results
  • Total revenue of 2.669 billion yen, up 15.3% YoY (all-time high); operating profit of 637 million yen, up 7.6% YoY (all-time high, 6th consecutive year of profit growth); net income of 469 million yen, up 14.7% YoY, with the higher growth rate driven by tax reductions from the wage increase promotion tax scheme
  • Cost Structure
  • Labor costs account for over half of operating expenses, followed by server/data center/input costs, rent/utilities, and depreciation; most costs are relatively predictable
  • Cost of goods sold (COGS) rate has remained broadly flat despite variable costs for SMS service, and SG&A ratio has trended downward year-over-year due to strong revenue growth effects
  • 2024 Operational Milestones & New Developments
  • For Mail service, saw strong adoption of enterprise plans from banks, credit card companies, transportation groups, and ticketing services; experienced temporary special demand from the June 2024 Gmail policy change, with demand for specialized email service providers like ユミルリンク expected to remain elevated long-term as technical expertise requirements increase
  • Launched Cuenote Push, a new browser-based web push notification service that enables high-immediacy site redirects to consumers who opt-in to notifications
  • Released new integrations for SMS service with Salesforce Service Cloud/Sales Cloud and Cybozu kintone to improve platform usability and expand the partner ecosystem
  • Changed dividend policy to a formal 15% payout ratio, and implemented a special commemorative dividend for 2024 to mark the company's 25th anniversary and first year with a consolidated subsidiary
  • Long-Term Growth Strategy
  • Strategic goal is to achieve sustainable growth via expanding messaging channels and building a unified messaging platform to meet growing demand for integrated corporate communication management as customer touchpoints diversify
  • Over the next two years, the company will focus on expanding share in the core Mail and SMS markets while accelerating growth via investments in talent, software development, marketing, and capital/business alliances
  • The core combined Mail and SMS market is ~49.1 billion yen, with ユミルリンク holding only ~5% share, leaving large room for expansion; platform expansion opens access to the larger 370+ billion yen customer experience/customer touchpoint market

Mail: 2.257 billion yen in revenue (84.6% of total revenue), 11.3% YoY growth in ending MRR to 189 million yen, full-year stock revenue of 2.182 billion yen (12.8% YoY growth), average customer usage up 6.2% YoY, average monthly churn 0.41%. SMS・Auth: 350 million yen in revenue (13.1% of total revenue), 22.2% YoY growth in ending MRR to 30 million yen, full-year stock revenue of 350 million yen (32.6% YoY growth), average customer usage down 12.8% YoY due to high volume of new small customers, average monthly churn 0.31%. Survey and other services: 61 million yen in revenue (2.3% of total revenue), 5.3% YoY growth.

• For full-year 2025 (December fiscal year), ユミルリンク guides 18.2% YoY revenue growth to 3.156 billion yen, 9.8% YoY operating profit growth to 700 million yen, and 2.3% YoY net income growth to 480 million yen
• For segment targets, 2025 full-year stock revenue is guided at 2.4 billion yen for Mail (10% YoY growth) and 418 million yen for SMS (19.4% YoY growth)
• Following the dividend policy change, the company guides a 19 yen per share ordinary closing dividend for 2025, aligned with the 15% payout ratio target

The provided transcript does not include a formal discussion of specific business or operational risks. Documented cost increases for 2024 are noted: higher labor costs from headcount growth, salary improvements, and overtime from first-half special demand; higher data center costs from SMS revenue growth; and one-time M&A-related expenses, which partially offset profit growth from top-line expansion.

The provided transcript does not include a question and answer section.