7356.T

• Profitability Milestone & Core Strategy

  • After facing large quarterly operating deficits of around 2 billion yen through 2023, successful cost-cutting and LTV optimization efforts delivered consecutive profitable quarters, marking the first solid progress toward sustained long-term profitability post-COVID-19. Management emphasizes profitability is not the end goal, and plans to pursue profitable growth going forward.
  • The core priority is growing the stock-type FRM segment, as sustained FRM revenue expansion is the key driver of continued long-term profitability.

• Growth Strategic Priorities

  1. Grow Online Bookings: Management identifies online booking referral volume as the most critical metric. Growth in online bookings increases ARPU and customer lifetime value (LTV), and expanding the number of bookable stores creates a positive cycle that improves user experience and grows loyal users. A new iOS feature was launched to boost user motivation for posting reviews, enriching platform content that drives better store discovery and future bookings.
  2. Strengthen Direct Sales: Sales hiring is being accelerated to expand the direct sales organization, with current hiring progress at 100% of target. Investment will be disciplined to only expand where 12-month unit economics are clearly positive, aligned with profitability goals.
  3. Expand National Client Advertising Content: Continue to leverage Retty's user base and restaurant content for collaborative promotions with large corporate clients, with active ongoing partnerships with firms including JT and Nomura Real Estate Commercial, to deliver customized solutions aligned with client needs.

• Market Context

  • The overall eating-out market has recovered steadily post-COVID, with the reservation-focused segment Retty serves recovering to ~80% of pre-COVID levels, and restaurant promotional spending has rebounded significantly. Most restaurants use multiple discovery/reservation platforms concurrently, so conversion is much higher when pitching Retty to restaurants already using other services, which is the core sales focus going forward.

• IR Enhancement

  • Management plans to increase IR activity, particularly expanding engagement opportunities with individual investors, including more open earnings briefings, strengthened social media content, and improved archiving of IR materials.

• Full-year 2025 September fiscal year guidance is maintained from prior estimates, with total projected revenue of 1.698 billion yen and operating profit of 29 million yen.
• The full fiscal year is still positioned as a period to achieve re-established full-year profitability, matching the company's longstanding target.
• Management plans to execute targeted growth investment in the second half of the fiscal year, to support stronger growth in future periods, while still staying on track to meet the current full-year profitability and revenue targets. All growth investment will be limited to the range that does not reduce full-year operating profit below the guided target.

Retty operates two business segments:

1. Food and Restaurant Support Service (FRM): This is the core monthly subscription-based segment. For the first half cumulative period, revenue grew 108% year-over-year. Total paid restaurant members increased by 140 from the prior quarter. Current average revenue per user (ARPU) for fixed plans is approximately 20 thousand yen; the slight quarter-over-quarter ARPU decline is attributed to growth in lower-priced corporate plans, a temporary factor.
2. Advertising Content: This segment serves large national clients. For the first half cumulative period, revenue grew 103% year-over-year. While revenue has grown steadily, it shows higher quarter-to-quarter volatility compared to the FRM segment.

Overall cumulative first half revenue reached 107.2% of the prior year's level, hitting 49.9% of the full-year revenue target. Q2 standalone operating profit was 20 million yen, with cumulative first half operating profit at 19 million yen, both in positive territory.

• Current FRM revenue growth is still modest in absolute terms, and sustained growth is required to confirm the durability of profitability.
• The ARPU decline in the most recent quarter is a temporary factor related to the mix shift to lower-priced corporate plans, but failure to reverse this trend and grow ARPU going forward could pressure margins.
• Advertising revenue has high quarter-to-quarter volatility, which could create uneven top-line performance relative to expectations.

No Q&A section is included in the partial provided transcript.