GeoCode Reports Strong Fiscal Year Results with Growth in Web Advertising and Sales Tech

GeoCode's Impressive 2025 Fiscal Year Results

On April 14, GeoCode Inc. announced its fiscal results for the period ending in February 2025. The company has made significant strides in its web marketing and cloud sales tech services, reflecting strong performance in both web advertising and its sales support tool, Next SFA.

Revenue Growth

For the fiscal year, GeoCode reported a total revenue of 1,582 million yen, marking a year-on-year increase of 4.0%. This growth can primarily be attributed to the surging demand for web advertising, which saw an impressive increase of 31.3%, reaching 537 million yen.

In addition, the cloud sales tech segment, led by Next SFA, witnessed a remarkable growth rate of 33.8%, contributing to an overall revenue increase of 19.1% in the cloud sales tech area, resulting in 217 million yen. These advancements are indicative of GeoCode's commitment to integrating innovative features such as marketing functions and the development of new functionalities utilizing generative AI.

Profitability Challenges

Despite the increase in revenue, GeoCode faced challenges in operational profit margins due to heightened investment in sales and recruitment. Total operating profit positioned at a loss of 25 million yen due to the inability to fully cover planned revenue figures, even as total selling and general administrative expenses were contained to a 2.2% increase year-on-year.

Market Dynamics

The digitalization trend in society has bolstered the internet advertising market, which remains on an upward trajectory. This broader market trend has significantly aided GeoCode's revenue from web advertising.

On the other hand, organic marketing services experienced a slight setback, with revenues declining by 10.9% to 827 million yen as new orders for existing services lagged. However, the company is actively enhancing its service offerings, such as performance-based services leveraging its media channel and the introduction of new security service options.

Future Strategies

GeoCode continues to focus on solidifying its position in the web marketing and sales tech landscape by providing comprehensive services ranging from customer acquisition to order fulfillment. With a focus on digital transformation (DX), the company aims to support its clients in both defensive and offensive market strategies.

For detailed insights into the company’s financial performance, future forecasts, and strategic plans, please review the financial report and supplementary documents linked below:

About GeoCode Inc.

Founded on February 14, 2005, GeoCode Inc. is headquartered in Shinjuku, Tokyo. The company specializes in web marketing services that combine SEO strategies and web development. Furthermore, their cloud sales tech business, which includes the Next SFA system, aims to support Digital Transformation for its clients, bolstering both their customer relationships and sales growth.

GeoCode is publicly traded on the Tokyo Stock Exchange under the code 7357, with a capital of 361.82 million yen as of February 2025.