Appier Surpasses Record Revenue and Profitability with Strong E-commerce Performance

Appier Surpasses Record Revenue and Profitability

In its latest earnings report for the third quarter of fiscal year 2025, Appier Group Inc. (TSE 4180) has achieved unprecedented financial success, boasting record revenue and profitability figures. The company's performance is primarily fueled by strong momentum in the e-commerce sector across multiple regions, enhancing its position in the competitive AI-native software market.

Remarkable Financial Growth

Appier has reported a record revenue of JPY 11.4 billion, reflecting a remarkable year-on-year growth of 26%. On an FX-neutral basis, the revenue increase is even more impressive, reaching JPY 11.6 billion, demonstrating a 28% growth. The company’s gross profit has also reached a record high of JPY 6.2 billion, marking a consistent year-on-year increase of 26% and maintaining a gross margin of 54.1%. This trend reflects Appier's focus on high-value segments and technological advancements, projecting a continuous upward trajectory in margins.

Notably, Appier's operating income has drastically improved, hitting a historic JPY 1.03 billion—a first for the company—marking a substantial rise of 31% compared to last year. The operating margin also reached a record-high of 9%. Additionally, on an FX-neutral basis, the operating margin increased to 10.8%, with a profitable outlook anticipated through year-end.

E-commerce Expansion Driving Business Momentum

The e-commerce sector has been a key growth driver for Appier, as evidenced by the strong performance in global markets. The Northeast Asia (NEA) region witnessed a revenue increase of 25% year-on-year (FX-neutral), and the US and Eastern Europe, Middle Eastern and African (EMEA) regions reported an outstanding 38% revenue growth. This improved performance can be attributed to Appier's strategic focus on deepening relationships with existing clients, alongside acquiring new significant partners in e-commerce, setting the stage for sustainable growth moving forward.

The company reported that 56% of its revenue growth came from existing customers, emphasizing a strong client base and seasonal highs, while 44% was driven by newly acquired customers. With a 13% year-on-year increase in its client base and a robust Net Revenue Retention rate of 119.6%, Appier solidifies its position in the market.

Harnessing AI for Enhanced Profitability

A significant factor behind Appier's recent success is the integration of its Agentic AI technology across various operational channels. This AI framework works collaboratively with diverse agents to ensure predictable return on investment (ROI) for clients, while also boosting internal efficiency in areas such as sales, research and development, and customer support. This remarkable operational scalability allows Appier to maximize growth potential.

Chih-Han Yu, CEO and co-founder of Appier, emphasized the importance of innovation over the past decade. He believes that the integration of agentic functionalities—combined with artificial intelligence—will redefine the software landscape by enhancing automation and intelligent decision-making.

Positive Customer Adoption Following Global AI Launch

The recent launch of Agentic AI has resonated positively with customers, resulting in high adoption rates and driving new revenues for the company. Appier’s cutting-edge technology enables customers to effectively leverage data, implement optimal marketing strategies, and maintain data security. The response to this AI solution highlights a strong market readiness for advanced technological applications in advertising and marketing sectors.

Through a blend of historical knowledge in AI and strategic operational enhancements, Appier is fortifying its position as a leader in providing innovative marketing tech solutions. As the company moves towards year-end, it remains confident about continuous profitable growth, led by strong e-commerce demand and disciplined cost management across the board. The future looks bright for Appier as it continues to make strides in harnessing the potential of artificial intelligence in the business landscape.

About Appier

Founded in 2012, Appier is an AI-native SaaS company focused on delivering next-generation solutions across advertising and marketing technologies. With its mission to simplify AI and its applications, Appier aims to empower businesses worldwide to convert AI technology into tangible returns on investment. The company currently operates 17 offices across Asia-Pacific, the US, and EMEA and is publicly listed on the Tokyo Stock Exchange. For more information, visit www.appier.com or ir.appier.com/en/.