IR & Research Intelligence, Sessa Investment Research

Sessa Investment Research

IR & Research Intelligence

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<ul><li>H1 Results Overview: On April 14, 2025, Paycloud Holdings Inc. (hereafter, the Company) announced its H1 FY2025/8 results.</li><li>The Company reported net sales of JPY 4,838 mn (+143% YoY), adjusted EBITDA of JPY 679 mn (+200% YoY), and operating profit of JPY 404 mn (+370% YoY).</li><li>While it was substantially attributable to having consolidated Cloudpoint, a digital signage business integrated in March 2024, it was also contributed by its upward momentum of business fundamentals reflecting the fact that the Company’s ongoing cashless service and IT solutions businesses posted nearly 30% operating profit growth with improved margins.</li></ul>

H1 Results Overview: On April 14, 2025, Paycloud Holdings Inc. (hereafter, the Company) announced its H1 FY2025/8 results.The Company reported net sales of JPY 4,838 mn (+143% YoY), adjusted EBITDA of JPY 679 mn (+200% YoY), and operating profit of JPY 404 mn (+370% YoY).While it was substantially attributable to having consolidated Cloudpoint, a digital signage business integrated in March 2024, it was also contributed by its upward momentum of business fundamentals reflecting the fact that the Company’s ongoing cashless service and IT solutions businesses posted nearly 30% operating profit growth with improved margins.

Paycloud Holdings (4015 JP): Q2 Follow-Up - May 12, 2025

<ul><li>Paycloud Holdings Inc. (hereafter, “the Company”) primarily serves major retail and restaurant chains, as well as consumer-related businesses, through its three main businesses: 1) cashless service, 2) digital signage-related, and 3) IT solutions.</li><li>By integrating DX solutions across these three businesses, the Company pursues a retail marketing platform strategy focused on supporting to strengthen consumer touchpoints both inside and outside of retail stores.</li><li>It is establishing itself as a leading domestic player with its Dokuji Pay (branded currency payment + marketing) service, where clients act as issuers, and delivering end-to-end digital signage-related solutions.</li></ul>

Paycloud Holdings Inc. (hereafter, “the Company”) primarily serves major retail and restaurant chains, as well as consumer-related businesses, through its three main businesses: 1) cashless service, 2) digital signage-related, and 3) IT solutions.By integrating DX solutions across these three businesses, the Company pursues a retail marketing platform strategy focused on supporting to strengthen consumer touchpoints both inside and outside of retail stores.It is establishing itself as a leading domestic player with its Dokuji Pay (branded currency payment + marketing) service, where clients act as issuers, and delivering end-to-end digital signage-related solutions.

Paycloud Holdings (4015 JP) - A High-Growth Retail Marketing Platform Operator

<ul><li>1H Results: On April 12, 2024, Paycloud Holdings Inc. announced its 2Q FY2024/8 earnings, its first earnings announcement since becoming a holding company and changing its name on March 1, 2024.</li><li>In 1H FY2024/8, the company reported net sales of ¥1,990 mn, adjusted EBITDA of ¥226 mn, and operating profit of ¥86 mn. It had an irregular 5-month accounting period in 1Q FY2023/8 that included the July-August 2022 earnings following a change in the accounting period of the former Valuedesign Inc., which was merged with the company.</li><li>As a result, the company's earnings summary for 1H FY2024/8 show sales being down 12% YoY, adjusted EBITDA up 2% YoY, and operating profit up 237% YoY.</li></ul>

1H Results: On April 12, 2024, Paycloud Holdings Inc. announced its 2Q FY2024/8 earnings, its first earnings announcement since becoming a holding company and changing its name on March 1, 2024.In 1H FY2024/8, the company reported net sales of ¥1,990 mn, adjusted EBITDA of ¥226 mn, and operating profit of ¥86 mn. It had an irregular 5-month accounting period in 1Q FY2023/8 that included the July-August 2022 earnings following a change in the accounting period of the former Valuedesign Inc., which was merged with the company.As a result, the company's earnings summary for 1H FY2024/8 show sales being down 12% YoY, adjusted EBITDA up 2% YoY, and operating profit up 237% YoY.

<ul><li>Overview: arara primarily serves retailers such as supermarkets and restaurant chains, offering Dokuji Pay (branded currency payment + marketing) and high-speed e-mail delivery software as a service.</li><li>With its Dokuji Pay service, where clients are the issuers, the company has a certain level of distinction from its competitors in this niche field, and is solidifying its market position.</li><li>Starting in March 2024, the company plans to integrate its digital signage- related business as well, aiming to quickly accelerate its retail marketing platform strategy to help retail stores strengthen their connection with consumers both inside and outside their stores. </li></ul>

Overview: arara primarily serves retailers such as supermarkets and restaurant chains, offering Dokuji Pay (branded currency payment + marketing) and high-speed e-mail delivery software as a service.With its Dokuji Pay service, where clients are the issuers, the company has a certain level of distinction from its competitors in this niche field, and is solidifying its market position.Starting in March 2024, the company plans to integrate its digital signage- related business as well, aiming to quickly accelerate its retail marketing platform strategy to help retail stores strengthen their connection with consumers both inside and outside their stores. 

Japan

Paycloud Holdings Inc. offers technology services. The Company provides customer relationship management services, high speed email delivery solutions management, data security solutions development, arappli services, quick response code development, and other services. Paycloud Holdings provides its services throughout Japan.

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Paycloud Holdings (4015 JP)