Mercari, Inc. · TSE:4385
Mercari — Q2 2025 Earnings Presentation
39 slides from Mercari's earnings presentation, Feb 6, 2025
Slide 1: FY2025.6 Q2 Presentation Material
mercari Presentation Material FY2025.6 Q2
Slide 2: Group Mission
Group Mission Financial Results Presentation Material Circulate all forms of value to unleash the potential in all people 2
Slide 3: Table of Contents
Table of Contents Financial Results Presentation Material 1 FY2025.6 Q2 Financial Overview 2 Appendix 3
Slide 4: FY2025.6 Q2 Financial Overview
FY2025.6 Q2 Financial Overview 4
Slide 5: Consolidated Highlights
1 Consolidated Highlights Objectives Raised at Start of FY2025.6 Consolidated Results Forecast (Full Year) Group Policy/Major Initiatives ● Essentially aim for top-line growth that will lead to increased Revenue Core operating profit1 profits 200.0–210.0B JPY 22.0–25.0B JPY ● Expand businesses centere
Slide 6: Consolidated Results (Quarterly)—Achieved Record Profit
1 Consolidated Results (Quarterly)—Achieved Record Profit Revenue Core Operating Profit1 (Billion JPY) (Billion JPY) YoY YoY +79% +2% Financial Results Presentation Material 6 1. Core operating profit is defined as IFRS operating profit excluding other income/expenses, etc.
Slide 7: FY2025.6 Q2—KPI Summary
1 FY2025.6 Q2—KPI Summary Marketplace Fintech US GMV1 Credit Balance4 GMV1 Financial Results Presentation Material 296.0B JPY 213.3B JPY 175M USD (YoY +5% excluding (YoY +38%) (YoY -27%) Mercari Hallo) Adjusted2 Core Core Operating Core Operating Operating Margin3 Profit3 Profit3 39% 1.2B JPY -100M JP
Slide 8: Marketplace—Summary
1 Marketplace—Summary ● Aim for a GMV growth rate of around +10% YoY and an adjusted1 core operating margin2 of 37–42% through strong growth of crossborder FY2025.6 transactions and B2C, in addition to steady growth of the C2C business Business ● Mercari Hallo: Establish an environment enabling the
Slide 9: Marketplace—Results (Quarterly)
1 Marketplace—Results (Quarterly) GMV1/MAU2 Revenue GMV (Billion JPY) (Billion JPY) From FY2024.6 Q4, a portion of point-related MAU (Million users) expenses are deducted from revenue figures3 (Impact in Q2 was 300M JPY, YoY growth before deductions: +4%) YoY -3% Financial Results Presentation Materi
Slide 10: Marketplace—Results (Quarterly)
1 Marketplace—Results (Quarterly) Adjusted1 Core Operating Profit2/Margin Profit and Cost Composition (Billion JPY) Excluding Mercari Hallo: Adjusted core operating profit: 13.2B JPY Adjusted core operating profit Commission fees Adjusted core operating margin: 46% Other cost of sales Personnel expenses
Slide 11: Marketplace—Product Initiatives
1 Marketplace—Product Initiatives Updated Home Released New B2C—Acquired Major Screen Features Reuse Shops ■ The Mercari home screen has been ■ Reuse shop MANDARAKE3 now sells Hassle-Free Car Sales1 updated in an effort to increase on Mercari, the first instance of a access frequency and engagement ◼
Slide 12: Marketplace—Building a Safer and More Secure Usage Environment
Marketplace—Building an Even Safer and 1 More Secure Usage Environment ● In response to cases of fraudulent use, we have enhanced our involvement in disputes that occur in transactions and expanded the compensation offered to users, so those who use our services correctly are not disadvantaged ● Par
Slide 13: Marketplace—On-Demand Work
1 Marketplace—On-Demand Work ● Against a backdrop of solid growth, at the end of March 2025 we plan to end our no-fee promotion Strengthening of Marketing Product Updates ■ Ran television commercials and held ■ Started providing new Alumni Connect features Financial Results Presentation Material on-
Slide 14: Fintech—Summary
1 Fintech—Summary FY2025.6 Transition to a phase of continuously increasing profit through Business steady accumulation of credit balance; aim for core operating Objectives profit1 of 3.0B JPY or higher Financial Results Presentation Material Achieved a core operating profit of 1.2B JPY as a result of
Slide 15: Fintech—Results (Quarterly)
1 Fintech—Results (Quarterly) Revenue Breakdown of Revenue (Billion JPY) (Billion JPY) Revenue Other2 Adjusted revenue1 YoY Payment +19% Credit3 Financial Results Presentation Material YoY +32% YoY +41% 1. Revenue after deduction of internal transactions with Marketplace (outsourced payment processi
Slide 16: Fintech—Results (Quarterly)
1 Fintech—Results (Quarterly) Core Operating Profit1 Promotion Costs (Billion JPY) Core operating profit (Billion JPY) Adjusted core operating profit2 Financial Results Presentation Material 1. Core operating profit is defined as IFRS operating profit excluding other income/expenses, etc. 16 2. Profit afte
Slide 17: Fintech—Expansion of Credit Balance
1 Fintech—Expansion of Credit Balance Credit Balance1 and Collection Rates2 (Billion JPY) YoY +38% Financial Results Presentation Material Smart Money Lump-sum payment/installment payment (2 installments)3 Fixed-amount payment/installment payment (3 or more installments)3 11-month collection rates Y
Slide 18: US—Summary
1 US—Summary FY2025.6 Business Commit to breaking even and aim to get back on track for growth Objectives Financial Results Presentation Material After changing the service fee paid by buyers from a variable rate to a fixed rate of 10% in September, GMV growth rate slowed -27% YoY due to the increase
Slide 19: US—Results (IFRS/Quarterly)
1 US—Results (IFRS1/Quarterly) GMV2/MAU3 Revenue Core Operating Profit GMV (Million USD) (Billion JPY) (Billion JPY) MAU (Million users) Financial Results Presentation Material YoY -10% YoY YoY -17% -27% 1. Transitioned to IFRS notation starting FY2025.6 19 2. Aggregate transaction value after adjust
Slide 20: US—Future Policies
1 US—Future Policies ● We will re-examine Mercari’s value proposition and refine our core product Core Product Enhancements New Fee Model Financial Results Presentation Material ■ The fee model where the buyer pays fees had large ■ Focus on the listing and buying experience, which form negative effec
Slide 21: Our Views on Guidance
1 Our Views on Guidance Consolidated In Q2, we achieved our highest-ever core operating profit, making progress on achieving our targets. The bar set for revenue is high, but we will continue to work on achieving our Financial Results Presentation Material targets. By Business Segment Our goal of inc
Slide 22: Appendix
Appendix 22
Slide 23: Board of Directors Structure
2 Board of Directors Structure ● Appointing Outside Directors with a wealth of knowledge and experience in a variety of areas to realize a transparent and highly diverse organization 12 Directors Directors (4) Independent Outside Directors (8) Financial Results Presentation Material Shintaro Yamada
Slide 24: Governance Structure (Independent Outside Directors)
2 Governance Structure (Independent Outside Directors) Financial Results Presentation Material Makiko Shinoda Takuya Kitagawa Daiken Tsunoda Chair of the Chair of the Audit Compensation Committee Committee Background • The Long-Term Credit Bank of Japan, Limited (currently SBI • Managing Exective Of
Slide 25: Governance Structure (Independent Outside Directors)
2 Governance Structure (Independent Outside Directors) Financial Results Presentation Material Kazuhiko Toyama Shiho Konno Kumi Fujisawa Chair of the Nominating Committee Background • Boston Consulting Group • Audit and Supervisory Board Member of Yahoo Japan Corporation • Joined KOKUSAI Investments
Slide 26: Governance Structure (Independent Outside Directors)
2 Governance Structure (Independent Outside Directors) Financial Results Presentation Material Mayumi Umezawa Kikka Hanazawa Background • Joined the Tokyo office of Tohmatsu & Co. (currently Deloitte Touche • General Manager, Itochu Fashion System Co., Ltd. New York Tohmatsu LLC) office • Umezawa Acco
Slide 27: Financial Policies
2 Financial Policies ● Essentially strengthen our capital through top-line growth that will lead to increased profits ● Diversify debt financing methods, lengthen financing periods, and spread out repayment periods to strengthen our financial foundation Financial Results Presentation Material Consolidat
Slide 28: Major Itemization of Consolidated BS
2 Major Itemization of Consolidated BS ● We will continue to leverage various methods of financing and appropriately control our balance sheet to maintain a sound financial foundation Convertible bonds and long-term Mainly deposits CB + borrowings borrowings related to user funds (excluding funds finan
Slide 29: Approach to Financing for Credit Services
2 Approach to Financing for Credit Services ● We plan to expand and diversify financing in sync with the growth of our credit services centered on non-recourse1 receivable liquidation, in which financing is based on confidence in the actual credit receivable for Merpay Smart Payments Financial Results
Slide 30: Business Segments
2 Business Segments Japan Region Financial Results Presentation Material Marketplace Fintech US Others Adjustments C2C Payment C2C Kashima Company-wide (Mercari) (Merpay) (Mercari [US]) Antlers expenses Crossborder Credit India Center of Consolidated (Merpay) Excellence adjustments B2C Crypto (Merca
Slide 31: Mid-Term Objectives of Main Businesses
2 Mid-Term Objectives of Main Businesses (Excerpt from FY2024.6 Q4 Presentation Materials) Group-wide Mid-Term Objectives Focus Areas - Strengthen AI/LLM and data - Promote I&D ■ Work with external partners to realize an ecosystem ■ Promote global expansion by growing our US business and strengtheni
Slide 32: Aim to Achieve Double-Digit Revenue CAGR FY2024–FY2027
2 Aim to Achieve Double-Digit Revenue CAGR FY2024–FY2027 (Excerpt from FY2024.6 Q4 Presentation Materials) Market size of high growth areas High growth rate New business Disciplined investment ● The US online reuse market is projected to be US worth 180B USD in 2030, which is 2.4 times the size of t
Slide 33: Aiming for Core Operating Profit CAGR of 25% or Higher
2 Aiming for Core Operating Profit CAGR FY2024–FY2027 of 25% or Higher (Excerpt from FY2024.6 Q4 Presentation Materials) Aim essentially for top-line growth associated with increased profitability Consciously balance growth and profitability Double-digit growth of revenue CAGR Prioritize high top-line
Slide 34: Marketplace—Cost Composition (Quarterly)
2 Marketplace—Cost Composition (Quarterly) (Billion JPY) Financial Results Presentation Material 1 2 J GAAP IFRS 1. In accordance with accounting standards, starting in FY2024.6 Q4, a portion of point-related expenses (attributed to advertising costs) are deducted from revenue figures and advertising
Slide 35: Marketplace—Uniqueness of Mercari Hallo
Marketplace—Uniqueness of Mercari Hallo 2 (On-Demand Work Service) Alumni Connect Feature 1 Mercari Hallo’s Alumni Connect feature groups users who have worked for a business in the past (regardless of whether it was through Mercari Hallo or not) based on position, skills, or Financial Results Prese
Slide 36: Fintech—Services
2 Fintech—Services Asset Payment Credit Management Various convenient payment Various services that utilize unique credit based on Service that allows users to methods available behavior history such as usage history on Mercari buy and sell cryptoassets Financial Results Presentation Material from w
Slide 37: US—Changes to Fee Model
2 US—Changes to Fee Model ● While we aimed to activate transactions by changing to a fee model where the buyer pays fees, the new model showed limited results and had effects such as decreased transactions of high-price-range items, so we carried out further changes to the fee model in January 2025
Slide 38: ESG Initiatives
2 ESG Initiatives Collaboration with the Ministry of the Environment External Recognition External Recognition ■ Joined Decokatsu1 and the ■ Mercari Hallo received the ■ Mercari received the Positive Action Initiative2, “Best for Good” award in semi-grand prize in the D&I Financial Results Presentat
Slide 39: Disclaimer
Disclaimer This material has been prepared based on information gathered at the time of its preparation and is not in any way intended as a commitment to future implementation. Also note that information contained herein has not been audited or reviewed by an independent certified public accountant o