Kakaku.com, Inc.

First-quarter consolidated revenue was ¥17.713 billion, up 15.3% year over year, and operating profit was ¥6.977 billion, up 34.9% year over year. Management said the operating profit growth rate outpaced revenue growth, while the progress rate was “almost in line with the plan.” Segment results were Kakaku.com revenue up 8.4% and segment income up 11.4%; Tabelog revenue up 19.2% and segment income up 31.8%; Kyujin Box revenue up 36.3% and segment income up 15.3%; and Incubation revenue down 1.8% but segment income up 49.3%. No change was made to the full-year earnings forecast reported in May.

The CEO’s tone was constructive and confident, emphasizing that the quarter was progressing according to plan and that the company is continuing to improve both core businesses and new initiatives. He highlighted product upgrades on Kakaku.com, continued expansion in Tabelog, and the goal of creating discontinuous growth in Incubation through M&A and cross-business expansion. He also framed partnerships with Digital Garage and KDDI as strategic levers for data, fintech, and advanced technology.

The financial message was that profitability improved faster than revenue, with operating profit up 34.9% versus revenue up 15.3%, while the company kept guidance unchanged. Management said variable expenses such as advertising and commissions increased in line with revenue, but fixed costs like personnel and outsourcing stayed at the prior-year level, helping hold expense ratios steady. On segment economics, Kakaku.com improved on stronger services and narrowing declines, Tabelog benefited from revenue growth and lower pressure from prior-year hiring costs, and Kyujin Box saw margin pressure from agency commissions and upfront brand advertising investment, which management said was still on plan.

There was no live Q&A in the transcript provided, but management proactively addressed likely investor concerns. The biggest issue was Tabelog’s inbound reservation service: it launched officially on June 26, has over 35,000 restaurants available, but current reservations are only about 1,600 per day, below expectations. Management said demand exists and intends to build it into a new pillar by improving content and expanding overseas partnerships, while also noting Kyujin Box’s lower revenue per user from a slowdown in job postings should continue into the second quarter.