Agreement to acquire AdCreative.ai set to improve gross margins, enhance product synergies, and expand total addressable market
Highlights and achievements for fiscal year 2024
- Growth momentum persists in our key focus regions in FY24 led to an all-time revenue high of JPY 34.1 billion, reflecting a 29% YoY growth
- Operating profit grew 2.5 times YoY to JPY 2.0 billion, with FX-neutral operating income tripling to JPY 2.4 billion
- Gross profit expanded 30% YoY to JPY 17.8 billion, outpacing revenue growth, supported by improved product mix and AI-powered efficiency
- Since the IPO, revenue has nearly tripled from JPY 12.7 billion in 2021 to JPY 34.1 billion in 2024, with Q4 as an inflection point for over 30% YoY growth in FY25
Guidance for fiscal year 2025
- Forecasting a 34% YoY growth in revenue to JPY 45.5 billion with an organic growth rate of 27% YoY, driven by revenue reacceleration
- Gross profit expected to grow 41% YoY to JPY 25.2 billion (55.3% margin), reflecting a 3 percentage point improvement in gross margin
- Operating income is expected to grow 2 times YoY to JPY 4.1 billion (8.9% margin), with organic operating income at JPY 4.8 billion (11% margin) and organic EBITDA at JPY 8.4 billion (20% margin)
- Cash dividend projected at JPY 2.25 per share, an increase from FY24, reflecting improved core free cash flow and strong financial performance
- Driven by multiple growth drivers, targeting revenue to double to over JPY 70 billion by FY27, with a projected 27-31% CAGR, and operating profit expected to scale to JPY 9-11 billion
Driving sustainable growth with strong profitability and market expansion
TOKYO, Feb. 14, 2025 /PRNewswire/ -- Appier Group Inc (TSE: 4180), henceforth referred to as Appier, today announced its financial earnings results for the fiscal year ended 31 December 2024 and guidance for FY25. The company achieved a record revenue of JPY 34.1 billion, a 29% YoY increase fueled by deeper and more diversified penetration among key accounts, global expansion, and AI-powered innovation. Profitability also surged, with operating profit rising 2.5 times YoY to JPY 2 billion and operating income tripled to JPY 2.4 billion on an FX-neutral basis. Gross profit outpaced revenue growth, increasing 30% YoY to JPY 17.8 billion, supported by AI-driven efficiencies.
Appier continued its strong global and vertical expansion, with the US & EMEA growing 45% YoY and Northeast Asia, its largest market, increasing 34% YoY. Digital Content and E-Commerce remained key growth drivers, contributing to a balanced customer mix in which 54% of incremental revenue came from existing clients and 46% from new customers.
Since its IPO, Appier has nearly tripled its revenue, growing from JPY 12.7 billion in 2021 to JPY 34.1 billion in 2024, reinforcing its sustained growth trajectory.
Strengthening AI-powered growth with strategic acquisition
As part of its ongoing commitment to innovation and AI-powered marketing leadership, Appier has entered into an agreement to acquire AdCreative.ai, a Paris-based innovator in Generative AI-driven creative optimization, for USD 38.7 million, including a USD 27.3 million base. This marks Appier's fifth major acquisition since 2018, further reinforcing its expansion strategy in AdTech and MarTech.
"The acquisition of AdCreative.ai drives Appier's long-term growth and profitability through margin expansion, GenAI acceleration, a stronger data moat, and TAM expansion," said Chih-Han Yu, CEO and Co-founder of Appier. "Integrating AdCreative.ai's GenAI-powered creative automation strengthens Appier's product innovation and market leadership, while access to its creative database enables continuous AI learning and smarter automation to provide better solutions for our customers. Additionally, combining Appier's APAC and US Digital Content presence with AdCreative.ai's EU e-commerce reach expands Appier's total addressable market and accelerates Generative AI-related business growth."
Positioned for profitable growth in FY 25
Appier expects a reacceleration of growth in FY25 with an optimistic outlook. The company is forecasting a 34% YoY revenue increase to JPY 45.5 billion, and gross profit is expected to reach a 41% YoY gain to JPY 25.2 billion, driven by sustained margin improvements. Q4 marked an inflection point for strong momentum in revenue growth, profitability expansion, and efficiency gains, setting the stage for accelerated performance in FY25.
Operating income is projected to grow over 2 times to JPY 4.1 billion with JPY 4.8 billion organic growth, with the operating margin rising to 8.9%, reinforcing Appier's trajectory toward long-term profitability. Organic EBITDA is expected to reach JPY 8.4 billion, supported by disciplined investment and operational efficiencies. A higher year-end forecasted dividend of JPY 2.25 per share reflects strong core cash flow and commitment to shareholders.
Strong 2025-2027 Mid-term outlook with multiple growth drivers
In terms of revenue, Appier is driving growth through deeper and more diversified penetration among key accounts, regional and vertical expansion, and cross-product synergies that boost higher-margin offerings. The company is also well-positioned to capitalize on the accelerating adoption of AI.
On profitability, Appier is enhancing margins by improving S&M and G&A efficiency, optimizing its product mix, and leveraging synergies. Its AI R&D investments are becoming more cost-efficient, while AI-driven automation boosts productivity, strengthening operating leverage for sustained profitability.
Based on this strategy, Appier is positioned to exceed its FY27 revenue target of JPY 70 billion, achieving a 27-31% CAGR from FY24 to FY27. The company aims to reach JPY 9-11 billion in operating profit, fueled by gross margin expansion, AI automation, product differentiation, and deeper enterprise adoption. With leading AI innovation, strategic focus, and disciplined execution, Appier is well-placed for strong, sustainable growth ahead.
About Appier
Appier (TSE: 4180) is a global AI-native SaaS company that uses artificial intelligence to power business decision-making. Founded in 2012 with a vision of democratizing AI, Appier's mission is turning AI into ROI by making software intelligent. Appier 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.
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