AGEHA Inc. Q1 FY2025 earnings call

• Corporate Overview and Recent Milestones • Founded in 2001, Aegisha provides branding support for client enterprises, with a mission to support more companies' branding and energize Japan's business scene. • In 1Q, the company supported branding projects for Nissan Tokyo Sales Holdings and Nippon Yusen, plus approximately 200 other clients total. • To celebrate the 1st anniversary of listing, the company will issue a special shareholder benefit: a 5,000 JPY QUO card for all shareholders recorded on March 31, 2025, with an additional 5,000 JPY QUO card for shareholders who hold shares continuously for one full year. • The company has applied for dual listing on the Nagoya Stock Exchange, alongside its current listing on the Tokyo Stock Exchange Growth Market, to boost brand recognition and increase corporate value. • The balance sheet saw no material large fluctuations in 1Q.

• Growth Strategy • First core priority: Strengthen sales to key existing clients. The company has an accumulated base of 920 mostly large enterprise clients, which provides strong opportunity for cross-selling. Management is driving cross-departmental expansion within client companies to grow revenue per client, with a common expansion path starting from recruiting website development, then expanding to corporate, internal, and sustainability branding across multiple departments. • Second core priority: Strengthen new order acquisition. The company's core target market (listed companies, unlisted large subsidiaries, mid-sized independent firms) has approximately 10,300 potential clients, leaving large room for market expansion. The marketing and inside sales teams are now leveraging new marketing technology to maximize new client acquisition, and will continue testing this initiative despite no standout results early in implementation.

• KPI Focus and Team Expansion • Starting in 2025 September fiscal year, the company tracks three core KPIs: total order value (primary leading indicator for revenue), number of clients with annual order value over 10 million yen, and number of new client orders. • 2024 September fiscal year order value was a strong 1.7 billion yen, which sets a solid foundation for 2025 fiscal year performance after low 2023 order value negatively impacted 2024 results. • Six veteran salespeople and creative directors from large/mid-sized agencies joined the company in the last six months, and management expects them to meaningfully contribute to full year results. • Growing the count of clients with annual order value over 10 million yen improves revenue per client, drives stronger performance, and stabilizes business operations. The company renewed focus on new client acquisition in this fiscal year, after deprioritizing the metric in prior years, and is testing marketing digital transformation initiatives to grow new client counts.

• Mid-Term Long-Term Direction • Management plans to maintain the recruiting support business while growing the corporate branding segment significantly over the medium to long term.

Overall 1Q total revenue is 354 million yen (0.354 billion yen), which represents a 13.9% increase year-over-year. The company operates two core business segments: 1) Corporate Support Segment: this includes corporate branding, internal branding, and sustainability branding services, with revenue exceeding prior period results and growing 24% year-over-year. 2) Recruiting Support Segment: revenue also exceeded prior period year-over-year results. No specific absolute revenue values or revenue contribution percentages for individual segments were provided in the transcript.

• Full year 2025 September fiscal year guidance is maintained unchanged from the November 14, 2024 announcement.
• The full year target remains 1.75 billion yen in total revenue and 50 million yen in operating profit, and the company is committed to achieving these targets.

No specific material risks, operational challenges, or operational failures were discussed in the available transcript.

No structured question and answer section was included in the available version of the transcript.