Shift Inc (SFTTF) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Hello to everyone watching. I'm Tange, President and CEO of Shift. Thank you very much for taking time to join us for the live stream of our financial results briefing for the second quarter of the fiscal year ending August 2025. In today's comprehensive briefing, Director Kobayashi will first thoroughly explain the second quarter results in detail. After that, I, Tengi, will discuss our strategic initiatives aimed at achieving further high growth in the second quarter of FI 2025, as well as our efforts toward Shift 3000 in the upcoming discussion. Following that, we will move on to the Q&A session. If you have any questions at any time during our session, please enter your name and join in the chat to submit your question. Also, we kindly ask that you submit your questions before our presentation is finished. Now then, we will begin with the explanation. I'll explain the details of the financial results announcement. First, the summary. This year, we have made solid improvements in areas that saw declines last year, such as the drop in utilization rate and the decrease in sales efficiency. With a focus on continuing to improve operations like these, we have been working toward further growth. Regarding the first half of the fiscal year, as shown here, we achieved a high level of net profit, made efforts toward growth, and began to see improvements driven by AI. I would like to explain these points in more detail. First, let's look at the consolidated profit and loss statement. As you can see, in Q2 we achieved a very high gross profit margin of 35.5%. This is due, as will be explained later, to improvements in utilization rates and an increase in engineer unit prices. As a result, the operating profit margin also improved to 14.4%, which had a positive impact on the...