HEROZ reported a significant 25.5% increase in revenue for the first quarter of FY 2025, driven by growth in its AI and digital transformation (DX) business and contributions from its newly acquired subsidiary, Tijuana.com. Sales reached ¥1.43 billion (US$9.7 million), while operating profit rose slightly by 1.4% to ¥74 million, as the company continued to invest in new SaaS offerings.
Despite the revenue surge, profits remained relatively flat, with a 7.4% decrease in ordinary profit and a net loss of ¥45 million, attributed to ongoing investments in SaaS development and digital marketing initiatives. HEROZ’s AI-driven products, including its “Shogi Wars” and “Kishin Analytics,” benefited from heightened attention to the shogi world and successful collaborations.
The company’s AI security business also contributed to stable growth, particularly in managed services with low customer churn and increased license sales. HEROZ maintained its full-year forecast, expecting a 23.9% increase in sales to ¥6 billion and a return to profitability, with a projected net profit of ¥30 million after last year’s loss.
HEROZ remains focused on expanding its AI capabilities and security solutions, setting the stage for long-term growth in these sectors.
