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Appier Reports Record Results

In a significant achievement that underscores the company's robust performance, Appier Group, Inc. (TSE 4180) has announced its financial results for the third quarter of FY26. The results reflect a remarkable growth trajectory, driven primarily by AI-driven efficiencies and a strategic outcome-based model. Appier recorded a record revenue of JPY 13.9 billion, marking an impressive year-over-year increase of 21.8%. Notably, organic growth surged to 27.1%, outperforming the company's previous guidance of above 25%.

Financial Highlights

Key financial highlights from the quarter include:

• - Gross Profit: Increased to JPY 8.5 billion, up 38.0% YoY, achieving a record gross margin of 61.3%—an increase of 7.2 percentage points from the previous year.
• - Operating Income: More than doubled to JPY 2.1 billion, reflecting a staggering 104.7% YoY growth and exceeding Q3 guidance.
• - Operating Margin: Expanded to 15.2%, up 6.2 percentage points YoY.

The growth was particularly pronounced in regions like the US and EMEA, where organic revenue rose by 49%, primarily fueled by enterprise wins in the E-Commerce and Online Travel sectors. Furthermore, Appier's investment into Research and Development (R&D) has seen continuous improvement, emphasizing operational efficiency rather than reduced investment.

Driving Factors Behind Growth

The sustained organic growth can be attributed to Appier's growing footprint in core verticals. The E-Commerce segment alone experienced over 40% growth YoY, alongside significant contributions from other internet services, which also saw upwards of 30% growth. Moreover, the adoption of Agentic AI technology has notably elevated gross profit per employee by 45% YoY, now standing at a record JPY 11.3 million.

With a growing customer base that increased by 12% YoY, the average revenue per customer rose to JPY 5.7 million—further evidence of the enhanced value creation that Appier is delivering to its consumers.

Ongoing Momentum and Future Outlook

As Appier navigates through FY26, the company remains committed to its positive trajectory. Following an impressive nine-month performance and a favorable outlook for the fourth quarter, Appier has raised its FY26 guidance for the second consecutive quarter, projecting:

• - Gross Profit: JPY 31.9 billion (58.6% margin)
• - Operating Income: JPY 5.9 billion (up 97% YoY)
• - Net Income: JPY 5.0 billion (up 95% YoY)

Additionally, the dividend forecast has been updated to JPY 2.50 per share, showcasing the company's commitment to delivering value to its shareholders. Fourth-quarter revenue is anticipated to range between JPY 15.2 billion and JPY 15.6 billion, backed by an anticipated organic revenue of approximately JPY 14.9 billion, projecting a further increase of about 25% YoY.

Dr. Chih-Han Yu, CEO and co-founder of Appier, has emphasized the importance of measuring AI by the returns it generates for both clients and the company's performance. He points out that growth achieved through AI not only enhances client businesses but also deepens partnership value, making it a self-funding cycle of growth.

Conclusion

In conclusion, Appier's record financial results serve as a testament to its strategic focus and innovation in AI technologies. As the company continues to leverage its core strengths and expand its market presence, it remains well-positioned for sustained growth and profitability in the ever-evolving landscape of AI solutions for enterprise marketing.