Japanese metaverse technology provider monoAI Technology slashed its profit outlook for the fiscal year, forecasting a net loss of 559 million yen ($3.7 million) as higher outsourcing costs and delayed customer acquisitions weigh on its bottom line.
The Tokyo-based company now expects an operating loss of 256 million yen for the year ending December, compared with its previous forecast for a 40 million yen loss. While revenue is projected to rise 4.3% to 1.7 billion yen, exceeding earlier estimates, rising outsourcing expenses have eroded profitability.
monoAI’s metaverse platform business saw stronger-than-expected sales but faced margin pressure from increased reliance on external contractors. The company’s higher-margin XR event services struggled with both existing client retention and new customer development.
The deteriorating outlook comes despite a strategic partnership formed with Dai Nippon Printing Co. in May, which included a 1 billion yen investment. The company plans to record an impairment loss of about 110 million yen in the fourth quarter.
For the first nine months through September, monoAI posted a net loss of 399 million yen, widening from 124 million yen a year earlier. Operating loss expanded to 207 million yen from 97 million yen, even as revenue grew 37% to 1.2 billion yen.
