Mercari, Inc. ( (MCARY) ) has released its Q1 earnings. Here is a breakdown of the information Mercari, Inc. presented to its investors.
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Mercari, Inc. is a technology company operating in the e-commerce sector, known for its popular consumer-to-consumer (C2C) marketplace app in Japan and the United States, as well as its fintech services.
Mercari, Inc. recently released its earnings report for the third quarter of 2024, showing a slight increase in revenue and profit attributable to owners. The company achieved a revenue of ¥44,924 million, marking a 1.5% increase from the same period last year, while operating profit saw a slight decrease of 2.9% to ¥4,347 million.
Key financial highlights include a stable growth in Mercari’s Marketplace domain, with a 5% year-on-year increase in Gross Merchandise Value (GMV) due to strategic initiatives in high-growth areas, despite some challenges in the US market. The company’s fintech domain also showed positive performance, with core operating profit reaching ¥414 million, supported by a robust credit balance and a high collection rate of 99.22%.
Despite the challenges faced in the US market, where GMV decreased by 16% year-on-year, Mercari is set to strengthen its strategy under the leadership of Shintaro Yamada, who will also take on the role of CEO in the US starting January 2025. The company aims to return to a growth trajectory and break even in the current fiscal year.
Looking forward, Mercari management is optimistic about achieving its financial targets for the fiscal year ending June 30, 2025, forecasting consolidated revenue between ¥200,000 million and ¥210,000 million, and core operating profit between ¥22,000 million and ¥25,000 million, showing an increased focus on top-line growth and profitability.