■Summary

1. Expand service areas from digital marketing specialized in landing pages

The sellable internet advertising company ＜9235＞ focuses on direct marketing and is developing digital marketing support business for D2C (internet shopping), D2C (internet mail order) business, and global information and communication business. The main force is a digital marketing support business for D2C (online shopping), and it provides services such as “sellable D2C creation,” which provides services such as landing page (LP) production, etc., “the strongest sellable media platform,” operational advertising, cross-border EC support, and M&A matching for D2C operators. Also, in the D2C (online shopping) business, they sell cosmetics, etc., and in the global information and communication business, they provide rental services for smartphones, cloud Wi-Fi routers, etc.

2. Strengths in highly reproducible A/B testing, cross-selling through group companies, etc.

The company's business is a stock subscription model, and sales grow steadily in proportion to the accumulation of clients. For this reason, it seems that the impact during the spread of the novel coronavirus infection (hereinafter, COVID-19) was also small. Strengths include a commitment to “selling,” the uniqueness of landing pages, “the strongest sellable know-how (R)” (hereinafter, “the strongest sellable know-how”) equipped with highly reproducible A/B testing know-how, and provision of performance-based advertisements with reduced risk. In particular, A/B tests, which have been systematically executed over 2,600 times with a focus on “selling” since the company was founded, have high reproducibility, and are extremely competitive know-how. Also, since business is being expanded by focusing on “URERU TARGET 20” in the direct marketing area, relationships between group companies tend to deepen, and there is also an advantage that cross-selling and horizontal expansion of know-how proceed smoothly.

3. With a growth strategy that makes full use of M&A, we aim to achieve group sales of 10 billion yen within 4 years

The company formulated a growth strategy on the occasion of the first year of listing. In the domestic direct marketing business, it is planned to promote increases in the number of new clients, number of long-term continuous clients, and client unit prices, respectively. The cross-border EC business specializes in China and the United States, and the policy is to strengthen marketing strategies in the D2C (online shopping) business. The idea is to strengthen services for foreigners, such as inbound, in the global information and communication business. The growth engine is “growth of existing businesses,” “growth through M&A business,” and “growth through new businesses,” and in particular, we are planning to make about 10 companies into subsidiaries within 3 years (until the end of 2027/7) for M&A, and we are aiming for “Ureru 100,” which will achieve group sales of 10 billion yen within 4 years (2028/7 fiscal year). Also, in order to smoothly proceed with M&A, it is planned to make it into a holding company in January 2025.

4. Sales and profit declined in the 2024/7 fiscal year, but earnings improved in the fiscal year ending 2025/7, the first year of the growth strategy

Financial results for the fiscal year ended 2024/7 were sales of 756 million yen (down 21.1% from the previous fiscal year) and operating losses of 308 million yen (operating profit of 151 million yen for the same period last year). There was a decline in sales and profit, but it can be said that it was a necessary measure to steadily implement the growth strategy due to factors such as starting to step on the accelerator toward business expansion such as M&A due to listing and implementing countermeasures against “fraudulent orders,” which were issues before. Regarding the earnings forecast for the fiscal year ending 2025/7, the company anticipates sales of 1635 million yen (up 116.2% from the same period) and operating income of 3 million yen (same surplus conversion). In addition to profit improvements in existing businesses and rapid growth of the subsidiary Ollinks Pharmaceuticals, where countermeasures against “fraudulent orders” are in full swing, it is planned that multiple M&A and new businesses carried out in the 2024/7 fiscal year and JCNT, which was M&A in 2024/8, will make a full contribution to the full year, thereby greatly expanding sales and turning operating profit into a surplus.

■Key Points

・Expanding service areas from digital marketing

・Strengths in highly reproducible A/B tests, cross-selling, etc.

・Growth strategy centered on M&A, and sales to 10 billion yen in the medium term

・Profit will improve in the first year of the growth strategy for the fiscal year ending 2025/7

(Written by FISCO Visiting Analyst Miyata Hitomitsu)