AI marketing software firm Appier Group (TSE: 4180) delivered its strongest quarter yet, reporting record revenue, gross profit, and operating income in Q2 FY25. The results highlight not just robust topline growth but also the company’s ability to scale profitably while doubling down on Generative AI (GenAI) and agentic AI innovation.

Record-Setting Quarter

Appier’s revenue climbed to JPY 10.3 billion, a 27% YoY increase (35% on an FX-neutral basis), marking the highest year-over-year growth in eight quarters. Gross profit grew even faster, surging 38% YoY to JPY 5.8 billion, with gross margin hitting an all-time high of 56.1%.

Operating profit followed suit, soaring 130% YoY to JPY 806 million, lifting operating margin to 7.8% despite higher costs from the consolidation of AdCreative.ai, acquired last year. Core free cash flow also swung positive, reflecting stronger cash generation.

Global Strength, Local Wins

Appier’s momentum was broad-based:

• Northeast Asia (NEA): Up 35% YoY FX-neutral, powered by both client expansion and new acquisitions.

• US & EMEA: Even stronger at 48% YoY FX-neutral, boosted by vertical diversification and new product uptake.

Notably, 51% of incremental revenue came from existing clients, underscoring healthy retention, while new customers contributed 49%. Client base expanded 14% YoY, with Net Revenue Retention steady at 120% and ARPC up 12.6% YoY (FX-neutral).

AI at the Core

Appier attributes much of its margin expansion to GenAI integration across platforms, from creative generation to campaign execution. The company is also leaning into agentic AI—AI agents that operate autonomously and collaboratively across tasks.

“AI continues to be a powerful engine in driving efficiency, enabling us to achieve strong profitability goals,” said Chih-Han Yu, CEO and co-founder of Appier. “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 long-term growth.”

The Bigger Picture

Appier’s performance stands out against a backdrop where many AI and martech firms struggle to balance rapid growth with profitability. By combining product innovation, disciplined cost management, and global market expansion, the company is signaling that AI-driven efficiency can translate into real-world financial wins.

With record highs in nearly every key metric, Appier appears well-positioned to ride the global wave of AI adoption—particularly as enterprises seek solutions that blend creativity, automation, and ROI accountability.

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