TAIPEI, TAIWAN –
Media OutReach – 9 May 2022 –
Highlights and achievements for the first quarter of 2022 - Revenue grew by 53% year-over-year (YoY) to a historical high of 4.2 billion yen, growth rate reaching a three-year high
- Gross profit significantly grew by 60% YoY with an improved gross margin of 50%
- Operating profit turned positive since it entered the scaling phase of the business
- EBITDA margin achieved 6.2% with a record high EBITDA profit of 262 million yen
- Operating margin improved by 20 percentage points YoY and EBITDA margin improved by 10 percentage points YoY
- Continuous substantial growth from the US market with YoY revenue increasing over 14X, QoQ revenue increasing over 180% and reaching to 9% of total revenue
- Achieved 32% YoY growth in customer numbers with the lowest churn rate in the company history of 0.67%
Stellar growth momentum closed out Q1 FY22
Appier Group Inc (TSE: 4180), henceforth referred to as Appier, today announced its earnings results for the first quarter of fiscal year 2022. This quarter, Appier’s continuously improved sales productivity, increased product synergy for a higher cross-sell rate and strong customer traction in the US helped its revenue grow by 53% YoY to a historical high of 4.2 billion yen. Operating profit turned positive, Appier’s first record of profitability since it entered the scaling phase of the business. Reflecting the acceleration of revenue growth, its Annual Recurring Revenue (ARR) climbed 49% YoY to a record high of 15.8 billion yen, and gross profit growth rate has outpaced top-line growth and reached 60% YoY with an improved gross margin of 50%.
Appier’s AI technology is a key factor in the strong business expansion as the market turns to AI solutions to address current data privacy concerns and trends. The company’s earnings before interest, taxes, depreciation and amortization (EBITDA) margin rose 6.2% to 262 million yen, a record high EBITDA profit with a 10 percentage points YoY improvement, while operating margin improved by 20 percentage points YoY.
Appier is growing alongside its customers. A historical high uplift of the Net Revenue Retention (NRR) at 126.5% places Appier in a strong position entering 2022. The number of customers grew by 281 to 1,158 with 32% YoY growth, a record level of organic incremental increase of customers with the lowest churn rate of 0.67%. New customers were mainly from the e-commerce and consumer brands & BFSI
[1] industries (31% and 23% of total new customers, respectively), driven by post-COVID demand for digital transformation.
Customers in Northeast Asia continued to account for the largest share of global revenue at 63%, followed by Greater China (23%), US and EMEA (10%) and Southeast Asia (4%). The US market growth further accelerated to over 180% QoQ in FY22 Q1, marking an over 14X YoY revenue increase and accounting for 9% of total revenue. The trend towards prioritizing first-party data and a strong understanding of Appier’s core competencies in AI technology for such marketing purposes have generated strong customer traction and higher Average Revenue per Customer (ARPC) in the US.
Appier’s strong product portfolios and cross-platform network effects led its top-line and bottom-line to surpass projections, demonstrating the company’s substantial growth and outperforming track record. The company’s full-year forecast has been revised to reflect our outperformance this quarter. Revenue has been revised to 17.8 billion yen with 41% YoY growth rate. Gross profit has outpaced top-line growth to 9.2 billion yen with 48% YoY growth rate. Operating loss has been revised to 288 million yen with significant improvement compared to our initial forecast and getting closer to breaking even, and full-year positive EBITDA profit has been revised to 0.8 billion yen with a 1,799% YoY growth rate. Appier’s expansion in the US market, higher sales productivity and better product synergy are key drivers for this guidance revision in 2022.
“We are extremely proud of our achievements starting from Q1 2022, especially with the operating profit turning positive for the first time since Appier invested for growth. Our strong growth momentum enabled us to continuously improve our profit margin and eventually lead to a profitable quarter, underscoring how AI-powered marketing technologies and first-party data-centric solutions continue to lead the digital transformation with the industry tailwind. In the meantime, our international expansion strategy has allowed us to turn our initial investment into fruitful results,” said Dr. Chih-Han Yu, Appier’s CEO and co-founder. “Looking ahead, we will preserve a high-performance culture to maintain efficient sales productivity. Our customer-oriented mindset and focus on products’ key differentiators that move the needle will also accelerate our pace on product innovations and support Appier to stand out in the market,” he further elaborated.
Appier also announced its comprehensive collaboration with PXMart, the largest supermarket chain in Taiwan, with products including AIQUA, AIXON and BotBonnie. Leveraging its AI technologies to unify and enrich PX Mart’s data assets across multiple platforms, including PX Mart (company website), PX Pay (mobile payment), PXGo! (online store) and POS (offline data) to deliver personalized customer experience and optimize its operational efficiency.
Comprehensive capabilities for long-term growth Appier’s AI-empowered engine combines algorithm processing capabilities, fundamental Auto-Machine Learning models, first-party data solutions and cross-product synergies, allowing us to uncover new customers and boost existing customer revenue expansion. As AI algorithms can learn and become more precise, higher usage drives better adherence to the model and enables a more personalized experience and more accurate predictions. First-party data solutions across web and apps and increasing product synergies also guarantee Appier’s ability to move fast to seize market opportunities and make swift progress on product iteration.
[1] Banking, financial services and insurance (BFSI) is the industry’s umbrella term for companies that provide a range of such financial products or services.
About Appier
Appier (TSE: 4180) is a software-as-a-service (SaaS) company that uses artificial intelligence to power business decision-making. Founded in 2012 with a vision of democratizing AI, Appier now has 17 offices across APAC, Europe and US, and is listed on the Tokyo Stock Exchange. Visit
www.appier.com for more company information and visit
ir.appier.com/en/ for more IR information.
#Appier
The issuer is solely responsible for the content of this announcement.
Services
Stakeholder mapping, analysis, engagement and communication needs to be detailed to avoid business losses or even worse, a crisis. How can you do this effectively to prevent failure? ...
Data-driven business decisions have never been as crucial, especially in this era. MGBF leverages off, technology, experience and market presence to aid businesses in making accurate decisions. ...
MGBF provides comprehensive strategic advice and results-focused solutions to solve clients' problems in business-government relations so they can focus on their core business. ...
A critical business challenge is meeting the right decision-makers and potential buyers through the best channel and platform. How will you improve your business competency? ...
Upcoming Events
The threat matrix has evolved to include information warfare, cyberspace incursions, big data and behavioural communications. Business leaders need to be aware of these threats to survive. What are you doing as a key stakeholder?
Companies can now live or die based on their ability to generate and manage data. Effectively managing existential challenges is the opportunity that business leaders need to grasp for a sustainable future. Calling for speakers!
Corporations and their leadership often face weaponised information attacks in the media. Understanding these advanced business threats is crucial. Recently completed. View proceedings online.
Special session: Cyberwarfare Waged on the Corporate Sector - Lessons from the Russia-Ukraine Crisis. Corporations are in a digital arms race that many don't realise. How does this relate to your organisation?
MGBF In The News
We live in the age of crisis. At the heart of any crisis is the threat of rapid change. Change too deep or too wide that the current coping mechanisms for an individual, corporation or government are unable to remain resilient. An unwelcome paradigm shift, like the proverbial spider, that […]
The Malaysia Global Business Forum (MGBF) has released a report following the roundtable on ‘Digital Resilience in the Corporate Sector’, which was recently held in Kuala Lumpur. In attendance as guest of honour was Deputy Minister of Communications and Multimedia, Datuk Zahidi Zainul Abidin. The report recommended several critical development […]
Trade and investment delegations will trickle back over the next few months, but the second half of the year should see considerable return of business travellers. It was learnt that over 50 per cent of international business chambers and industry associations surveyed will consider sending exploratory teams to Malaysia during […]
KUALA LUMPUR, 30 March 2022 – The Malaysia Global Business Forum (MGBF)’s exclusive roundtable on ‘Digital Resilience in the Corporate Sector’ was held in a hybrid setting yesterday at the Element by Westin Kuala Lumpur. The discussion focused on what business leaders need to understand, to ensure business resilience and […]
The Malaysia Global Business Forum (MGBF)’s exclusive roundtable on ‘Addressing Weaponised Information in the Media’ was held in a hybrid setting today at the Hilton Kuala Lumpur. The discussion focused on addressing one of the most relevant threats to businesses in the digital economy – cyber threats causing physical and […]
The current floods that have impacted various parts of the country have given rise to an extensive commentary on the response cycles of various stakeholders. It has in turn led to continued crisis communications and statements in the media by agencies and ministries alike. This binary approach to the discussion […]
The formation of a special Cabinet committee to develop strategic measures to safeguard the economy amid the Covid-19 outbreak shows the Malaysian government is serious about creating a balance between the continued safety of the general population and the survival of the economy. In the global context, as many countries […]
Innovation, coupled with a radical departure from contemporary thinking, is required with a possible reality of a prolonged crisis becoming the new reality that people and companies must function through. Malaysia Global Business Forum founding chairman Nordin Abdullah said innovation and resilience from all stakeholders will be required to shape […]
The recent announcement that a committee jointly chaired by senior ministers in charge of security and economy clusters respectively demonstrates that the Malaysian government is serious about creating a balance between continued safety of the general population and the survival of the economy. In the global context, as many countries […]
Innovation, coupled with a radical departure from contemporary thinking, is required with a possible reality of a prolonged crisis becoming the new reality that people and companies must function through. Malaysia Global Business Forum founding chairman Nordin Abdullah said innovation and resilience from all stakeholders will be required to […]
Innovation, coupled with a radical departure from contemporary thinking, is required with a possible reality of a prolonged crisis becoming the new reality that people and companies must function through. Malaysia Global Business Forum founding chairman Nordin Abdullah said innovation and resilience from all stakeholders will be required to […]
The announcement that a committee jointly chaired by senior ministers in charge of security and economy clusters demonstrates that the government is serious about creating a balance between the safety of the population and the survival of the economy. In the global context, as many countries struggle to deal […]
THE Covid-19 outbreak has exposed the citizens of most countries to a dangerous virus. But perhaps more importantly, it has exposed the weaknesses in supply chains of nations.The government should be commended for setting up a task force to maintain critical supply chains as it’s an excellent step to ensure […]
In the last few days, the Movement Control Order (MCO) has awoken many to the fact that supply chains that we assume work without question have now become highly critical.The establishment of a special task force to maintain critical supply chains by the current government is an excellent step to […]
by Gunaprasath Bupalan (YouTube – Emjay Communications, The Malaysia Global Business Forum, News Hub Asia, Property360Digest) The CEO Series 2019 by REHDA Institute is more than a developer’s driven event; it is about the strategy made real, where property and its ancillary businesses will provide balance in social, economic and […]
I am the Managing Director of Lynas Malaysia and I’m writing to you on behalf of our employees and contractors and their families. In recent weeks you may have seen a campaign of false information by anti-Lynas activists. We have always welcomed informed debate, however, the spreading of false allegations […]
I am the Managing Director of Lynas Malaysia and I’m writing to you on behalf of our employees and contractors and their families. In recent weeks you may have seen a campaign of false information by anti-Lynas activists. We have always welcomed informed debate, however, the spreading of false allegations […]
I am the Managing Director of Lynas Malaysia and I’m writing to you on behalf of our employees and contractors and their families. In recent weeks you may have seen a campaign of false information by anti-Lynas activists. We have always welcomed informed debate, however, the spreading of false allegations […]
SALAM sejahtera, I am the managing director of Lynas Malaysia and I’m writing to you on behalf of our employees, contractors and their families. In recent weeks, you may have seen a campaign of false information by anti-Lynas activists. We have always welcomed informed debates; however, the spreading of false allegations and […]
KUALA LUMPUR • Malaysia could attract investments of up to RM100 billion (S$33 billion) in the rare earth sector over the next 10 years, once the government makes clear how it intends to regulate the industry. Speaking at the Malaysia Global Business Forum yesterday, Entrepreneurial Development Minister Mohd Redzuan Md […]