GENOVA,Inc. Q4 FY2025 earnings call

• Mission and Business Portfolio

  • GENOVA operates under the mission of "Connecting people and healthcare to build a healthy society", with two core business segments focused on end-to-end solutions for clinics: the Medical Platform business centered on the Medical DOC medical information media drives patient acquisition for clinics, while the Smart Clinic business delivers clinic automation solutions to reduce administrative costs.
  • The company leverages 16,000 existing healthcare client touchpoints accumulated over 20 years to generate stable recurring revenue through resale and cross-selling to existing clients.

• Operational Updates

  • Medical DOC, the company's core medical media, reached 18.48 million monthly page views in 2025 March fiscal period, with steady year-over-year growth in total article count and page views. The platform offers original in-house medical content and paid clinic profile pages, and launched the new clinic tour report product line this fiscal year.
  • NOMOCa-AI call has delivered proven operational benefits for early adopting dental clinics: an average of 50% of monthly inbound calls are completed automatically, reducing monthly administrative work by over 9 hours. The company is currently working on standardized templates and streamlined onboarding to address client customization and adoption barriers.
  • R&D for the new appointment booking function for Medical DOC completed the initial phase this fiscal year, after most of the annual R&D budget was allocated to this project.

• Corporate Development and Governance

  • The company strengthened its management team by appointing new Executive Officer Shou Inoue, who brings deep experience across clinical, academic, educational and research领域 to support healthcare problem-solving.
  • GENOVA established a new subsidiary to acquire the core business of ADI.G, expanding its presence in the dental segment to advance the company's strategic vision of filling out its service coverage across healthcare领域.

• Shareholder Return

  • Following the 20th anniversary 30 yen per share dividend (10 yen regular + 20 yen special) last fiscal year, the company will convert the special dividend to a permanent increase, setting a regular dividend of 30 yen per share for the current fiscal year to avoid a dividend cut. The company will proactively consider additional shareholder return measures including share buybacks, taking into account stock price performance and investor feedback.

For the full year 2025 March fiscal period, GENOVA reported total consolidated sales of 10 billion yen, representing a 15.2% year-over-year increase. 1. Medical Platform Segment: Annual revenue was 6.26 billion yen, a 16% year-over-year increase, accounting for 62.6% of total consolidated revenue. In Q4 2025 March fiscal period, segment sales declined quarter-over-quarter, and total contracted orders decreased quarter-over-quarter due to slower-than-expected access growth for the Medical DOC media. The overall average contract price has trended downward as the share of lower-priced clinic tour reports has increased. 2. Smart Clinic Segment: Annual revenue was 3.17 billion yen, a 19% year-over-year increase, accounting for 31.7% of total consolidated revenue. This segment is split into hardware and software services: (1) Hardware service: Contract volumes have recovered to previous levels after internal reporting line consolidation, with average contract prices staying between 2.35 million yen and 240,000 yen, and sales of the Desk product line have recently increased. Cumulative installed units of smart self-checkout machines and reception devices exceed 2,430 units. In Q4 2025 March fiscal period, hardware sales recovered but high-margin software segment progress was weak, limiting overall profit contribution for the segment. (2) Software service: The new NOMOCa-AI call AI automated voice response service launched trials in Q3, secured 108 orders and delivered 38 units in Q4; material revenue contribution is not expected until the 2026 March fiscal year.

• For the 2026 March fiscal year, GENOVA forecasts 14% year-over-year total consolidated revenue growth, with an expected decline in operating profit compared to the 2025 March fiscal year.
• The Medical Platform segment is projected to grow 6% year-over-year, reflecting the slower growth trend seen in H2 of the 2025 March fiscal year.
• The Smart Clinic segment is projected to grow 36% year-over-year, driven by expected growth in both hardware and software revenue, which will increase the segment's share of total company revenue.
• The expected decline in operating profit stems from three factors: slower growth in the high-margin Medical Platform segment reducing overall profitability, continued upfront investment in talent hiring and skill development increasing costs, and rising manufacturing costs tied to projected hardware sales growth. Management frames the 2026 March fiscal year as a key investment year for long-term business growth.

• Full year 2025 March fiscal year revenue missed internal forecasts, and operating profit declined 12% year-over-year to 2.02 billion yen, while net income attributable to parent shareholders declined 18% year-over-year to 1.41 billion yen, driven by slower-than-expected Q4 sales and continued growth slowdown trends.
• Q4 2025 March fiscal period operating profit missed internal forecasts by a wide margin: the Smart Clinic segment achieved 93% year-over-year revenue growth, and the Medical Platform segment also saw sequential sales decline in the quarter.
• Cost increases that pressured profitability: higher listing advertising expenses and free content creation costs for the Medical Platform segment, higher rent and utility costs from the new office expansion starting in Q2 2025 March fiscal period, and continued higher sales promotion costs from the expanded inside sales team introduced in Q3.
• The newly launched appointment booking function for Medical DOC failed to gain expected traction with clinic clients, and did not deliver the projected increase in platform access.
• NOMOCa-AI call adoption has been slower than planned, with most clients requiring customizations and taking a cautious approach to implementation, pushing material revenue contribution out to the next fiscal year.

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