After the close of trading on August 9th, Smasupport <9342> announced the third quarter settlement of the 2024 September financial results. The cumulative sales for 3Q increased by 35.5% year-on-year to 2,037 million yen, and the operating profit was 106 million yen (compared to a loss of 74 million yen in the same period of the previous year).

At the same time, it has announced an upward revision of the full-year performance forecast. The revenue is expected to increase from 2,513 million yen to 2,600 million yen, and the operating profit is expected to be higher at 100 million yen from 58 million yen. The 'Smasupport Thank You Call' and the resident app 'totono' have high demand, and although the revised figures are high, it is expected to be a high achievement rate, but the 4Q is expected to be a slow period, and it is a time for investment for the next period.

The company's main services are 'Smasupport Thank You Call' and 'totono' for property management companies. 'Smasupport Thank You Call' is a service that provides living support to residents ahead of property management companies. It sells essential ancillary products necessary for residents to start a new life. Specifically, it is a business model that guides residents to internet connections and water servers, and earns customer introduction fees from companies that provide the products. In addition to property management companies, the target materials are the residents of the property management companies, so the main KPI is the number of contacts with the residents. As of the end of 3Q in September 2024, the cumulative number of contracted property management companies was 783 (an increase of +56 companies from the previous period), and the cumulative number of contacts with residents was 0.23 million 9,188 (progress rate against the target for the current period 68%). Although the progress is somewhat slow, the number of contacts is continuing to grow at 117% year-on-year. 'Smasupport Thank You Call' is currently the company's main source of income and is positioned for stable income.

Also, 'totono' is a platform that facilitates communication between residents and property management companies, delivering comfortable services during their stay. It digitizes the analog communication mainly through phone calls between property management companies and residents. Property management companies can reduce operating costs, and residents can access the necessary information within the app. The service is provided to property management companies on a monthly subscription model, and also strengthens upselling as a BPO, such as inquiry delegation through chat. The number of app downloads at the end of the first half of September 2024 was 0.2 million 8,714, but it exceeded 0.25 million downloads with the announcement on August 2nd. With a significant renewal of UIUX design, introduction to J-S-B Co., Ltd., which is listed on the Tokyo Stock Exchange Prime Market and has over 80,000 units under management, the download count is steadily increasing. As of the end of 3Q in September 2024, the number of contracted property management companies was 121 (an increase of +17 companies from the previous period), and the number of app downloads was 0.24 million 2,746 (progress rate against the target for the current period 97%). So far, the cancellation rate is almost zero, with only one company cancelling. However, this one company also underwent changes in its structure and had no choice but to cancel. The prospects for revitalizing communication between property management companies and residents and improving business burdens by digitizing communication are becoming clearer.

The top line continues to show high growth, and double-digit annual growth is expected in the coming years, with similar expectations for operating profit growth. In the short term, the expansion of 'Smasupport Thank You Call' is expected to strengthen stable income, and the growth of the resident app 'totono' contributing to the DX of property management companies is beginning to emerge, making it easier to envision medium-term growth.