HEROZ Inc. reported a wider quarterly loss as the Japanese artificial intelligence company ramped up spending on new services despite growth in its chess gaming division.
The Tokyo-based firm posted a net loss of 118 million yen ($800,000) for the six months ended October, compared with a 30 million yen loss a year earlier, according to a statement Thursday. While revenue rose 21% to 2.83 billion yen, operating profit slumped 65% to 88 million yen as the company invested 152 million yen in developing new software-as-a-service products.
The company’s chess gaming apps, including Shogi Wars, continued to generate stable income amid rising popularity of the traditional Japanese board game. HEROZ’s business-to-business segment saw increased demand for AI and large language model solutions, bolstered by its newly acquired subsidiary VOIQ’s inside sales operations.
HEROZ maintained its full-year forecast, projecting revenue of 6 billion yen and operating profit of 500 million yen. The company expects to return to profitability with a net income of 30 million yen, following last year’s 1.13 billion yen loss.
In July, the company launched a new zero-trust security service targeting small and medium-sized enterprises.
