HEROZ Inc. reported a 19.7% increase in nine-month sales while operating profit tumbled 60.7% as the Japanese AI developer invested heavily in new software-as-a-service products.
Revenue rose to 4.35 billion yen ($28.9 million) in the May-January period, buoyed by growth in both consumer and business segments, the Tokyo-based company said Wednesday. Operating profit fell to 158 million yen ($1.05 million) while the company narrowed its net loss to 180 million yen from 921 million yen a year earlier.
HEROZ cited ongoing investments in new SaaS offerings including “HEROZ ASK” and “JOINT” for the profit decline. The company’s March 2024 acquisition of Tiffana.com contributed to top-line growth.
The firm’s AI/DX business saw expanding revenues from its “Shogi Wars” chess game following feature updates and increased interest in traditional Japanese chess. Its B2B segment recovered from early delays, with project numbers and sales significantly outpacing the previous year.
In its security segment, HEROZ launched “Vario Ultimate Zero,” a zero-trust security service for mid-sized companies, in July 2024.
The company maintained its full-year forecast, projecting sales of 6 billion yen, operating profit of 500 million yen, and net income of 30 million yen for the fiscal year ending April 2025.
