Mercari (4385) Q4 2024 earnings summary

Executive summary

• Achieved record high consolidated revenue and core operating profit for FY 2024, with revenue up 9% year-on-year to JPY 187.4 billion and core operating profit up 13% to JPY 18.8 billion, driven by strong marketplace and Fintech segments, and reduced U.S. losses.

• Launched new services such as MerCard and Mercari Hallo, with over 3.4 million MerCards issued and Mercari Hallo reaching 5 million users in three months.

• Marketplace GMV grew 9% year-on-year, though slightly below the 10%+ target; U.S. GMV declined 10% year-on-year.

• Fintech revenue surged 40% year-on-year, with positive core operating profit for the second consecutive year.

• U.S. business reduced core operating loss by JPY 4.2 billion year-on-year through cost restructuring and organizational changes, targeting break-even in FY 2025.

Financial highlights

• Consolidated revenue: JPY 187.4 billion (+9% YoY); core operating profit: JPY 18.8 billion (+13% YoY).

• Marketplace revenue: JPY 107.2 billion (+5% YoY); adjusted core operating margin: 40%.

• Fintech revenue: JPY 43.7 billion (+40% YoY); core operating profit: JPY 700 million (+57% YoY).

• U.S. revenue: USD 293 million (-9% YoY); U.S. GMV: USD 1,015 million (-10% YoY); U.S. adjusted operating loss: USD -87 million (improved from -104 million YoY).

• Cross-border transaction GMV grew 3.5x year-on-year; B2C GMV grew 2.7x year-on-year.

Outlook and guidance

• FY 2025 revenue forecast: JPY 200–210 billion (+7–12% YoY); core operating profit forecast: JPY 22–25 billion (+17–33% YoY).

• Marketplace GMV growth targeted at around 10% YoY; adjusted core operating profit margin guidance of 37–42%.

• Fintech aims for core operating profit over JPY 3 billion; U.S. business targets break-even and renewed growth via cross-border transactions.

• Focus on top-line growth, group synergy, and expansion of cross-border and B2C businesses.