The year-over-year growth rates for FX-neutral revenue and gross profit reached the highest level in the past eight quarters, underscoring strong business momentum
TOKYO, Aug. 15, 2025 /PRNewswire/ -- Appier Group Inc. (TSE: 4180) announced its Q2 FY25 earnings, delivering a record-high revenue of JPY 10.3 billion, up 27% YoY (JPY 11.0 billion and 35% FX-neutral), driven by core business expansion and the contribution from AdCreative.ai in key regions.
Record-high gross margin and operating profit boosted profitability. FX-neutral revenue was up 35% and gross profit up 38%, both at an eight-quarter high. Appier's gross profit reached a historical high of JPY 5.8 billion, 38% YoY growth, surpassing revenue growth. Gross margin hit an all-time high of 56.1%, up 4.8 points YoY, supported by high-margin products, ongoing margin improvements, and adoption of GenAI technology.
Operating income surged to JPY 806 million, a remarkable 130% YoY increase. Operating margin nearly doubled with YoY growth up to 7.8%, despite OPEX from the full consolidation of AdCreative.ai, showing strong operating leverage from productivity gains, resilient business models, and disciplined execution despite FX headwinds. Core free cash flow turned positive, reflecting stronger cash generation.
Strong outperformance in key regions, NEA and US & EMEA
Revenue growth was balanced: 51% of incremental revenue from existing clients in NEA e-commerce and US & EMEA momentum, and 49% from new customers, supported by NEA diversification and US & EMEA traction from vertical and product expansion.
The client base expanded by 14% YoY; LTM Net Revenue Retention remained at 120%, with quarterly ARPC up 12.6% YoY (FX-neutral) from strategic customer expansion.
NEA growth accelerated to 35% YoY (FX-neutral), driven by existing client expansion and new acquisitions. US & EMEA growth reached 48% YoY (FX-neutral) from customer expansion and product diversification.
The deployment of GenAI technology across Appier's platforms is creating product synergies that enhance creative capability and go-to-market success. By leveraging GenAI-driven insights and scalable execution, these innovations are enhancing Appier's profitable growth and are poised to further strengthen its ROI and operational efficiency.
Sustained growth driven by disciplined OPEX and AI-powered value creation
Disciplined, cost-effective management and scalable revenue growth from differentiated products and AI-powered automation have improved the OPEX-to-revenue ratio. R&D investment continues to drive operating leverage and efficiency as the business scales.
"AI continues to be a powerful engine in driving efficiency, enabling us to achieve strong profitability goals. Following the combination of AI creative content and AI-empowered marketing software suites, we are confident in delivering differentiated products that drive business results and sustaining our growth momentum," said Chih-Han Yu, CEO and co-founder of Appier. "Appier has been pioneering Agentic AI for over a decade. Riding the global wave of agentic AI adoption, we are now embarking on our next transformation by integrating multi-AI agents across the full product suite and internal workflow, unlocking greater value for our long-term growth."
Strong foundation in agentic AI for the next phase of growth
Building on agentic AI, Appier will continue to introduce new agentic AI-powered solutions, including agent-delivered ROI, creativity, and operational efficiency, to fuel product innovation and performance.
About Appier
Appier (TSE: 4180) is an AI-native SaaS company that empowers business decision-making with AdTech and MarTech solutions. Founded in 2012 with the vision of "Making AI Easy by making software intelligent," Appier helps businesses turn AI into ROI with its Ad Cloud, Personalization Cloud, and Data Cloud. Appier has 17 offices across APAC, the US and EMEA, and is listed on the Tokyo Stock Exchange. Visit www.appier.com for more information.
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