Money Forward shares fall 8.8%; 2Q net sales miss estimate

Money Forward shares fall 8.8%; 2Q net sales miss estimate

Money Forward reported its second-quarter earnings on Thursday, revealing a mixed performance. The company's shares fell by 8.8% following the announcement. The company's Q2 revenue increased by 11.7% year-on-year to ¥11.5 billion, falling short of the ¥12.1 billion consensus forecast. The revenue underperformance was primarily attributed to weakness in non-core business segments [1].

Despite the revenue miss, Money Forward's EBITDA reached ¥704 million, significantly exceeding the consensus expectation of ¥553 million. Even excluding the ¥145 million contribution from HIRAC, the company's investment fund, the underlying EBITDA of approximately ¥850 million still surpassed consensus by 54% [1]. The EBITDA margin showed improvement, expanding to 6.1% from 5.3% in the same period last year, demonstrating enhanced operational efficiency [1].

However, the company's operating loss widened to ¥1.01 billion, approximately ¥118 million worse than consensus expectations. The company cited higher depreciation-related expenses as the main factor behind the increased operating loss [1].

References:
[1] https://www.investing.com/news/earnings/money-forward-q2-shows-ebitda-strength-despite-revenue-miss-93CH-4135062