CROOZ, Inc, a Japanese technology company, reported narrower losses in its fiscal first quarter despite a steep revenue decline following the disposal of underperforming business units.
The company posted a net loss of ¥159 million ($1.1 million) for the three months ended June, compared with a ¥285 million loss a year earlier. Revenue fell 21.7% to ¥2.77 billion ($18.5 million), primarily due to the divestiture of its SHOPLIST e-commerce platform and GameFi gaming operations.
Operating losses shrank to ¥90 million ($600,000) from ¥413 million in the previous year, reflecting the company’s strategy of shedding unprofitable ventures. Management cited the disposal of loss-making units as the key driver behind improved operational metrics.
The bright spot emerged in CROOZ’s IT outsourcing division, which generated ¥1.58 billion ($10.5 million) in revenue, marking a 62.7% surge from the prior year. The segment has maintained an average annual growth rate of 68% since its inception, though it still recorded a ¥14 million operating loss.
The company’s remaining e-commerce operations, now consisting solely of the Ada fashion platform after selling SHOPLIST in February, showed resilience with 71.6% standalone growth. However, the broader e-commerce segment revenue declined 47.9% to ¥947 million ($6.3 million) due to the disposal.
Ada operates as a curated fashion marketplace within ZOZOTOWN, offering original products alongside select third-party brands. Despite seasonal fluctuations, the platform has demonstrated consistent expansion since launch.
Japan’s IT outsourcing market is projected to reach $101.4 billion by 2030, growing at a 10% annual rate, according to industry forecasts. This expansion reflects increasing corporate demand for digital transformation services and cloud migration support.
