Announcing the Financial Results for the First Quarter of the Fiscal Year Ending November 2023
Hello, this is Miura, in charge of IR at note.
Today, we announced our financial results for the first quarter of the fiscal year ending November 2023, and I would like to provide an overview.
Overview of Financial Results for the First Quarter of the Fiscal Year Ending November 2023
In the first quarter, thanks to the steady growth of the note business and note pro business, net sales reached 654 million yen (+19.6% year-on-year), and gross profit reached 601 million yen (+23.2% year-on-year).
Regarding operating profit and below, the figures remain negative due to upfront investments such as increased personnel expenses from the previous period, the recording of listing-related expenses following our listing last December, and the recording of costs related to our head office relocation scheduled for this June.
Although the operating loss has expanded compared to the previous year, this is due to the recording of approximately 62 million yen in one-time expenses as SG&A expenses, the impact of upfront investments in personnel expenses made in the previous period, and an increase in payment processing fees and communication expenses accompanying the growth in sales.
The note business saw quarterly GMV reach 3,265 million yen (+27.0% year-on-year), primarily driven by an increase in the number of subscribers.
In addition, the number of registered members, published content, and creators continues to increase, further expanding the platform.
For the note pro business, the number of paid contracts reached 690, with an ARR of 411 million yen (+49.9% year-on-year).
Furthermore, to actively pursue future service improvements and feature development, we have reviewed the pricing for note pro and revised the monthly usage fee for new contracts from 50,000 yen (excluding tax) to 80,000 yen (excluding tax), effective February 1st.
Since prices remain unchanged for existing contracts, the effect of this price revision has not yet materialized, but we expect it to contribute to the expansion of ARR in the medium to long term.
Regarding the Full-Year Earnings Forecast for the Fiscal Year Ending November 2023
To achieve early profitability, we have been implementing various initiatives to strengthen cost management, including the relocation of our head office, since the beginning of the period.
We have now disclosed the cost impact as our assessment of the effect on business performance has progressed.
Based on these cost management initiatives, we have additionally disclosed the full-year earnings forecast figures for profit items from gross profit downwards.
Note that there are no changes to the forecast figures for net sales.
Business Initiatives Status
We are implementing various initiatives to further enhance the value of note and make it available to a wider range of creators.
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December 2022
Listed on the Tokyo Stock Exchange Growth Market and underwent rebranding
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February 2023
Revised the monthly fee for note pro from 50,000 yen (excluding tax) to 80,000 yen (excluding tax)
Began providing the creative support tool 'note AI Assistant (beta)' to early users
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March 2023
Signed an agreement with the Fukushima Prefectural Board of Education; 99 schools in the prefecture opened note accounts
Launched 'IR note Magazine,' a jointly operated magazine that distributes IR articles from listed companies
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April 2023
Began providing 'note AI Assistant (beta)' to all users
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June 2023 (scheduled)
Relocation of headquarters and event space
Regarding the introduction of the creative support tool 'note AI Assistant (beta)' in particular, we were quick to utilize ChatGPT-related technology to advance development this February, and it became available to all creators starting April 12.
Since we have divided the available usage frequency and features according to membership status, we believe this can lead to future transitions of free members to note premium and an increase in note pro users.
We have actively utilized AI in areas such as article categorization and recommendation features. Our policy is to utilize AI technology comprehensively, not limited to the features announced this time, but also including business operations.
Click here for various disclosure materials
We have disclosed the following materials today, so please check them for further details.
Notice Regarding Revision of Full-Year Earnings Forecast (Additional Disclosure)
Quarterly Report - 1st Quarter of the 12th Fiscal Year (2022/12/01 - 2023/02/28)
These are also available in the "IR Library" on our IR website.
Schedule for the next financial results announcement
The announcement of the financial results for the second quarter of the fiscal year ending November 2023 is scheduled for Friday, July 14.
As the time and other details for the financial results briefing have not yet been decided, we will announce them here on note as the date approaches.
Contact for IR inquiries
For any questions regarding financial results or opinions and feedback on our IR initiatives, please contact us via the inquiry form below!