YMIRLINK,Inc. Q2 FY2025 earnings call

• Business Overview

  • The company adopted consolidated accounting last year and is advancing group expansion, providing group-wide messaging solution services to support corporate marketing and communication activities, mainly offering cloud services under the Cuenote brand, including email services, SMS services, Web push notification service, questionnaire service and emergency confirmation service. As of the end of June 2025, the number of active contracts exceeds 2,600.
  • Consolidated total revenue for the first half (first two quarters) is 1.472 billion yen, up 12.6% year-over-year, reaching a record high; operating profit is 283 million yen, down 6.9% year-over-year, with the profit decline caused by increased expenses associated with consolidation that could not be offset by revenue growth.

• Mail Service Operational Highlights

  • Two new service plans for small and medium-sized enterprises were introduced in the first half of 2025: an email sending service integrated with Cybozu's kintone, and an entry plan for Cuenote SRS, a mail relay service for reliable transactional email delivery. Multiple enterprise adoption cases have been published, including cases from Science Co., Ltd., Retty Inc., and a major city bank.
  • Driven by the winter price adjustment, average customer usage increased 5.7% year-over-year to 105 thousand yen; the average monthly churn rate from January to June 2025 rose to 0.73% due to the price adjustment, which management analyzes as a temporary phenomenon.

• SMS・Auth Service Operational Highlights

  • Integration services with kintone and Salesforce released last year are well-received, and new customer acquisition remains steady; 3 adoption cases have been published.
  • Average customer usage decreased 20.6% year-over-year due to growth in small-volume distribution customers, while the average monthly churn rate remained stable at a low level of 0.5%.

• Operational and Financial Highlights

  • Cost of goods sold increased 15.4% year-over-year to 515 million yen, bringing total gross profit to 957 million yen, up 11.2% year-over-year. Selling, general and administrative expenses increased 21.1% year-over-year to 673 million yen, mainly due to increases in personnel costs, goodwill, audit fees and other expenses associated with consolidation.
  • As of the end of the second quarter, the consolidated number of employees reached 160, an increase of 8 from the end of the previous period.
  • Total assets at the end of June 2025 were 3.29 billion yen, down 144 million yen from the end of the previous period, mainly driven by a decrease in current assets from dividend payments. Total liabilities were 465 million yen, down 122 million yen from the end of the previous period, and net assets were 2.825 billion yen, down 21 million yen from the end of the previous period.

Mail: 1.175 billion yen in revenue, 5.9% year-over-year growth, contributing 79.8% of total revenue; End-of-quarter MRR is 198 million yen, 8.2% year-over-year growth; Quarterly stock revenue is 586 million yen, 8.7% year-over-year growth. SMS・Auth: 192 million yen in revenue, 15.1% year-over-year growth, contributing 13.0% of total revenue; End-of-quarter MRR is 34 million yen, 12.6% year-over-year growth; Quarterly stock revenue grew 20.9% year-over-year. Survey (Questionnaire service) and other: 32 million yen in revenue, 8.7% year-over-year growth, contributing 2.2% of total revenue. Consolidated subsidiary social sales grew by 33 million yen year-over-year in Q2 alone.

• Full-year 2025 December fiscal year consolidated guidance is maintained at 3.156 billion yen in total revenue, 700 million yen in operating profit, and 480 million yen in net profit. As of the end of the second quarter, progress rates are 46.7% for revenue, 40.5% for operating profit, and 39% for net profit.
• Service-specific full-year guidance maintains a 10% year-over-year increase in Mail service stock revenue to 2.4 billion yen, and maintains a 19.4% year-over-year increase in SMS service stock revenue to 418 million yen.
• The company maintains a 15% payout ratio target for shareholder returns, and maintains the planned full-year dividend of 19 yen per share.
• Long-term growth guidance: the company targets sustained high growth driven by Cuenote platform development and business and capital alliances, and expects to pursue economies of scale from 2027 onwards.

• A temporary increase in churn rate occurred for Mail service after the price adjustment, with the average monthly churn rate rising to 0.73% in the first half of 2025, though management assesses this as temporary.
• Higher-than-expected cost increases from group consolidation and expansion have offset revenue growth, leading to a year-over-year decline in operating profit.
• The company faces shifts in digital traffic patterns, with increasing website traffic coming via AI rather than traditional search engines, requiring new marketing adaptation.

No question and answer section was included in the provided earnings call transcript.