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Investing.com -- Timee (TYO:215A) reported its second-quarter fiscal year 2025 results, showing mixed performance with sales at the lower end of guidance while operating profit reached the upper end of the projected range.
For the second quarter, Timee posted revenue of ¥7.8 billion, representing a 28.0% increase year-over-year, falling short of Jefferies’ estimate of ¥8.20 billion and consensus expectations of ¥8.15 billion. The company attributed sluggish sales to strict protocols on unauthorized accounts and weak performance in the restaurant subsegment toward the end of the quarter.
Operating profit came in at ¥1.85 billion, surging 60.8% compared to the same period last year and exceeding both Jefferies and consensus forecasts of ¥1.72 billion. The operating profit margin improved to 23.7% from 18.9% in the previous year.
Gross merchandise value (GMV) reached ¥26.66 billion, growing 29.9% year-over-year. The food and beverages segment was the weakest performer, declining 2.5% compared to the same period last year. The take rate was 29.1%, showing a 0.6 percentage point decrease from 29.7% in Q2 FY24/10 but an improvement from 28.8% in Q1. The logistics take rate, which had decreased in Q1, recovered by the end of the campaign.
The number of active accounts grew 35.3% year-over-year to 200,000, though this marked a decrease from 207,000 accounts in the first quarter. The company demonstrated cost discipline across client marketing, outsourcing costs, and human resources expenses.
Allowance for doubtful accounts stood at ¥65.9 million, down from ¥67.6 million in Q1. The cash flow statement confirmed a ¥4.9 million decrease in credit costs.
Looking ahead, Timee provided guidance for the third quarter, projecting revenue between ¥8.40 billion and ¥8.55 billion, representing a year-over-year increase of 27.8% to 30%. Operating profit is expected to range from ¥1.73 billion to ¥1.77 billion, up 61.1% to 64.8% compared to the same period last year.
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