Mercari, Inc. Sees Mixed Earnings Performance

Mercari ( (MRCIF) ) has released its Q1 earnings. Here is a breakdown of the information Mercari presented to its investors.

Mercari, Inc. is a Japanese technology company known for its popular peer-to-peer marketplace app, operating primarily in the e-commerce sector with a growing fintech arm. It is listed on the Tokyo Stock Exchange under the code 4385.

In its latest earnings report for the three months ending September 30, 2024, Mercari reported a modest increase in revenue, reflecting both the challenges and opportunities facing the company. The marketplace segment saw growth in Japan, while its fintech division continued to expand. However, the US segment faced setbacks due to external economic conditions.

Mercari’s consolidated revenue for the period was ¥44,924 million, up 1.5% year-on-year. The core operating profit saw a decline of 13.1%, while the operating profit slightly decreased by 2.9%. Despite these mixed results, profit attributable to owners of the parent increased by 4.4% to ¥2,933 million. The Japanese market showed resilience with a 7.2% rise in revenue, although the US segment experienced a 16% decline in GMV, attributed to inflationary pressures and unfulfilled strategic expectations.

Looking ahead, Mercari’s management remains focused on achieving top-line growth and improving profitability. The company aims for consolidated revenue between ¥200,000 million and ¥210,000 million for the fiscal year ending June 30, 2025, while enhancing its strategic initiatives to overcome challenges in the US and leverage fintech growth.