Appier accelerates growth in third quarter with all-time highs in revenue and operating profit

Highlights and achievements of Q3 FY23

• Revenue increased by 39% YoY to reach an all-time quarterly high of JPY 7.1 billion
• Gross profit reached a historical high of JPY 3.7 billion with a 38% YoY growth rate, while gross margin improved to 52.6%
• Operating income expanded over 60 times YoY to JPY 314 million, with operating margin at a historical high of 4.4%
• Revenue from US and EMEA markets accelerated to 117% growth YoY, representing 20% of total revenues from 13% a year ago
• Upward revision of full-year forecast from JPY 25.5 billion to JPY 26.2 billion, with YoY revenue growth rate further accelerated to 35% from 31%
• Raised full-year operating income to JPY 0.7 billion, up 32% from JPY 0.54 billion, with operating margin to 2.7% from 2.1%

Appier Group Inc (TSE: 4180), henceforth referred to as Appier, today announced its earnings results for the third quarter of the fiscal year 2023. Building on a remarkable Q2 performance, the company reports a surge in key financial indicators, exceeding projections for both revenue growth and profits. Appier continued to outpace its full-year guidance, with quarterly revenue soaring to an all-time high of JPY 7.1 billion with a 39% YoY growth. Furthermore, Appier’s operating income expanded over 60 times compared to the same period last year.

The company's revenue and operating profit grew strongly at the same time, reporting gross margins of 52.6% and achieving a historically high operating margin of 4.4%. This was primarily driven by its continuous efforts in R&D and innovation in the past quarters and successful geographical expansion. This growth also underscores Appier's unwavering commitment to delivering sustainable and profitable results, as well as offering exceptional benefits for its valued customers with proprietary technology and solution synergies.

Strong customer traction and demand across Northeast Asia, the US and EMEA markets

Appier’s key regions demonstrated outstanding performance this quarter, with the US and EMEA regions taking the lead in robust growth to witness a remarkable 117% YoY surge in revenue. This also substantially elevated their contribution to 20%, in contrast with the previous year's 13%. In Northeast Asia (63%), Appier sustained robust growth across industries with approximately 40% YoY revenue expansion.

New guidance amid accelerated growth and positive profit outlook

In light of Appier’s profitable growth, strong performance, and accelerated business momentum achieved over the past three quarters, the company has announced a positive revision of its FY23 guidance. The revenue target for FY23 has been raised to JPY 26.2 billion, demonstrating a significant YoY growth rate increase from 31% to 35%. In parallel, operating income has been elevated to JPY 0.7 billion, marking an increase of 32% from JPY 0.54 billion, with the operating margin increased to 2.7% from 2.1%.

“Appier's notable expansion this quarter can be attributed to our robust and distinctive product offerings, which consistently deliver proven returns on investment to our customers. Our technology moat helps us to establish a unique market position, spanning various verticals and regions, empowering us to excel in the marketing domain and deliver unmatched value,” said Dr. Chih-Han Yu, CEO and Co-Founder, Appier.

Leveraging proprietary technologies to gain a competitive edge

Appier recently introduced a series of revolutionary product updates that harness the combined capabilities of generative AI and decision-making AI, reshaping the landscape of data-driven marketing. By embracing AI as the next-gen UI, brands can harness Appier's technology moat to achieve ROI-driven outcomes. This involves unlocking the productivity potential of generative AI and capturing valuable business insights through decision-making AI, resulting in a wide array of performance improvements, ranging from foundational to advanced, seamlessly adaptable to brands’ unique business requirements. Appier's unwavering commitment to the power of AI continues to set the stage, enhancing ROI, productivity, and personalization, underlining the philosophy that AI stands as the cornerstone of modern marketing.

A standout feature of both CrossX and AIQUA is the ability to auto-generate high ROI-driven content through its proprietary AI technology, resulting in dynamic creative backgrounds and compelling marketing messages. Furthermore, Appier’s intuitive AIQUA User Journey Co-Pilot empowers brands to effortlessly customize effective journey templates tailored to individual marketing requirements. CrossX elevates the user experience by providing personalized images at scale and expanding interests through the combined power of generative and decision-making AI. This reinforces Appier’s commitment to empowering brands in delivering tailored recommendations and experiences for every individual user.

These updates seamlessly integrate the autonomous content creation capabilities of generative AI with the performance evaluation precision of decision-making AI, providing businesses with a competitive edge in the marketing domain.

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