Japan Specialist

Mark Chadwick

Equity Bottom-Up

<ul>
<li>Appier achieved 32% YoY sales growth in Q2, driven by strong US market performance and balanced revenue from both new and existing customers.</li>
<li>The company's EBITDA margin improved to 13%, reflecting strong operating leverage despite ongoing investments in growth initiatives.</li>
<li>Trading at a 2.9x EV/FY25 revenue multiple, Appier is undervalued relative to peers, with significant upside potential from sustained growth and strategic initiatives.</li>
</ul>


Appier achieved 32% YoY sales growth in Q2, driven by strong US market performance and balanced revenue from both new and existing customers.
The company's EBITDA margin improved to 13%, reflecting strong operating leverage despite ongoing investments in growth initiatives.
Trading at a 2.9x EV/FY25 revenue multiple, Appier is undervalued relative to peers, with significant upside potential from sustained growth and strategic initiatives.


Appier (4180) | The Hidden Gem in AI Marketing

<ul>
<li>Appier's Q3 demonstrated a 39% YoY revenue increase, reaching a record JPY7.1B. This was driven by substantial growth in the US/EMEA markets (117% YoY), customer expansion, and Digital Content growth.</li>
<li>Appier's gross margin expanded from 51.3% to 52.6% and the operating margin reached a historical high of 4.4%. Despite ongoing investments, EBITDA margins hit12.1%, showcasing strong operating leverage.</li>
<li>Appier's revised full-year outlook, with increased revenue target (JPY 26.2B), operating income (JPY0.70B), and EBITDA (JPY2.6B), exceeds consensus expectations by 1%, 11%, and 8%, respectively.</li>
</ul>


Appier's Q3 demonstrated a 39% YoY revenue increase, reaching a record JPY7.1B. This was driven by substantial growth in the US/EMEA markets (117% YoY), customer expansion, and Digital Content growth.
Appier's gross margin expanded from 51.3% to 52.6% and the operating margin reached a historical high of 4.4%. Despite ongoing investments, EBITDA margins hit12.1%, showcasing strong operating leverage.
Appier's revised full-year outlook, with increased revenue target (JPY 26.2B), operating income (JPY0.70B), and EBITDA (JPY2.6B), exceeds consensus expectations by 1%, 11%, and 8%, respectively.


Appier (4180) | Key Drivers Behind Strong Q3 Performance

<ul>
<li>Appier's stock initially surged 20% following strong Q2 results but later declined 25%, influenced by small-cap stock volatility, AI-induced valuations, and e-commerce sensitivity.</li>
<li>The AI company's competitive position remains strong compared to Braze; the differing stock price performance and valuation suggests significant upside.</li>
<li>Appier's thesis remains intact and we expect the company to benefit from key trends in consumer marketing, first-party data and AI solutions.</li>
</ul>


Appier's stock initially surged 20% following strong Q2 results but later declined 25%, influenced by small-cap stock volatility, AI-induced valuations, and e-commerce sensitivity.
The AI company's competitive position remains strong compared to Braze; the differing stock price performance and valuation suggests significant upside.
Appier's thesis remains intact and we expect the company to benefit from key trends in consumer marketing, first-party data and AI solutions.


<ul>
<li>Strong Q2 results with revenue +42% yoy versus +33% in Q1</li>
<li>Gross margin expansion to 51.3% on improving AI algorithm performance</li>
<li>Stock down around 20% over past couple of months, No change to bullish growth forecasts.</li>
</ul>


Strong Q2 results with revenue +42% yoy versus +33% in Q1
Gross margin expansion to 51.3% on improving AI algorithm performance
Stock down around 20% over past couple of months, No change to bullish growth forecasts.


<ul>
<li>Appier achieved 32% revenue growth and 50.1% gross margin in Q1 FY23, exceeding company expectations</li>
<li>We expect the pace of growth to accelerate, driven by stronger momentum in Digital Content in Q2 and Q3</li>
<li>We remain bullish following the recent pullback in the share price. Stock is attractive at 5x EV/Rev</li>
</ul>


Appier achieved 32% revenue growth and 50.1% gross margin in Q1 FY23, exceeding company expectations
We expect the pace of growth to accelerate, driven by stronger momentum in Digital Content in Q2 and Q3
We remain bullish following the recent pullback in the share price. Stock is attractive at 5x EV/Rev


Japan

Appier Group, Inc. provides artificial intelligence software as a service (AISaaS) services based on data-driven decisions. The Company offers data analysis for potential users predicting and acquiring, relationships building and maintaining, purchasing and action motivation, audience intelligence, and more. Appier Group serves clients across Asian.

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Appier Group (4180 JP)

Appier (4180) | The Hidden Gem in AI Marketing

Appier reports strong Q2 sales growth driven by US market performance, improved EBITDA margin, and undervalued stock with potential for growth.

Mark Chadwick

Appier (4180) | Key Drivers Behind Strong Q3 Performance

Appier's Q3 revenue increased by 39% YoY, driven by growth in the US/EMEA markets and customer expansion. Gross margin expanded and operating...

Mark Chadwick

Appier (4180) | The Ups and Downs

Appier's stock has declined due to small-cap stock volatility and AI-induced valuations, despite its strong competitive position and potential...

Mark Chadwick

Appier (4180) | Be Happier

Strong Q2 results with revenue +42% yoy versus +33% in Q1, Revenue accelerates on strong e-commerce, digital marketing. Stock has pulled back to...

Mark Chadwick

Appier (4180) | Another Positive Quarter

We remain bullish on Appier. The first quarter results re-affirm our view that the company will see continued growth in sales, driven by its core...

Mark Chadwick

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52-week Range

Market Cap (USDm)

P/E

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Appier (4180) | The Hidden Gem in AI Marketing

​Appier reports strong Q2 sales growth driven by US market performance, improved EBITDA margin, and undervalued stock with potential for growth.

Mark Chadwick

Appier (4180) | Key Drivers Behind Strong Q3 Performance

​Appier's Q3 revenue increased by 39% YoY, driven by growth in the US/EMEA markets and customer expansion. Gross margin expanded and operating...

Mark Chadwick

Appier (4180) | The Ups and Downs

​Appier's stock has declined due to small-cap stock volatility and AI-induced valuations, despite its strong competitive position and potential...

Mark Chadwick

Appier (4180) | Be Happier

Strong Q2 results with revenue +42% yoy versus +33% in Q1, Revenue accelerates on strong e-commerce, digital marketing. Stock has pulled back to...

Mark Chadwick

Appier (4180) | Another Positive Quarter

We remain bullish on Appier. The first quarter results re-affirm our view that the company will see continued growth in sales, driven by its core...

Mark Chadwick

Appier reports strong Q2 sales growth driven by US market performance, improved EBITDA margin, and undervalued stock with potential for growth.

Appier's Q3 revenue increased by 39% YoY, driven by growth in the US/EMEA markets and customer expansion. Gross margin expanded and operating...

Appier's stock has declined due to small-cap stock volatility and AI-induced valuations, despite its strong competitive position and potential...