PR TIMES 3922
PR TIMES
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2022-05-12
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Summary
PR TIMES, Inc. operates an eponymous platform that distributes the press releases of corporate clients to reach the media and consumers. It distributes press releases to journalists and posts them on the PR TIMES website and the sites of various media partners. The company has a single segment, Press Release Distribution. It also offers Jooto, a task and project management tool, Tayori, a cloud information organizer, and media management services.
Internet & Direct Marketing Retail
Key dates
2022-02-28
Coverage initiation
Executive summary
Business overview
PR TIMES, Inc. operates an eponymous platform that distributes the press releases of corporate clients to reach the media and consumers. It distributes press releases to journalists and posts them on the PR TIMES website and the sites of various media partners. The company has a single segment, Press Release Distribution. It also offers Jooto, a task and project management tool, Tayori, a cloud information organizer, and media management services.
The company’s mission is to realize “an era when information originating from kodosha (actors, participants) moves people’s hearts and minds.” It does not consider profit an objective as such, but rather a means of accumulating the necessary capital to invest in the company to achieve sustainable growth.
In FY02/22, PR TIMES recorded revenue of JPY4.9bn (+28.9% YoY), operating profit of JPY1.8bn (+40.9% YoY), and OPM of 37.8%. Revenue grew at a CAGR of 29.1% over the past five years, while operating profit grew at a CAGR of 48.9%. One of the company’s most emphasized management indicators is the sum of the revenue growth rate and OPM. In FY02/22, this was 66.7%, up 22.7pp from five years earlier.
The main reason companies create press releases is to communicate information to the media in the hope that it is turned into an article or picked up as news. Before the advent of the internet, consumers mainly turned to TV, newspapers, and magazines for their news. This meant that when a company drafted a press release, it was reliant on a handful of the largest and most influential companies to deliver its content to the public. However, the spread of the internet and smartphones has laid the groundwork for services like PR TIMES, which have multiplied the ways in which companies can reach consumers with press releases, including through more direct means than were traditionally available. Specifically, companies can upload their press releases to the company’s website, publish them on PR TIMES media or partner media, and post them on PR TIMES’ Facebook and Twitter accounts.
As of end-February 2022, PR TIMES had 65,660 users, 50.4% of whom were listed companies in Japan, and 210 media partners. The PR TIMES website had 58.8mn monthly views in August 2021, about a quarter of the views of major newspaper sites such as Asahi Shimbun Digital and Yomiuri Shimbun Online.
There are two basic PR TIMES service plans: a pay-as-you-go plan and a flat-rate plan (monthly, half-yearly, or yearly). These come with optional add-ons. The pay-as-you-go plan is priced at JPY30,000 per order, while the flat-rate plan costs JPY80,000 per month. The company does not disclose the breakdown of orders by plan, nor has it taken measures to, for example, increase the ratio of flat-rate plans. The reason for this is based on management’s belief that clients should be able to choose the most appropriate plan for themselves, given that the number of press releases to be distributed, timing, and other circumstances vary from client to client. Because revenue consists of both pay-as-you-go and flat-rate plans, the concept of churn rate does not apply to the company’s business. In FY02/22, the company distributed 296,422 press releases (+36.8% YoY).
The company also offers PR TIMES peripheral services. These include PR TIMES STORY, a new type of public relations service that delivers a behind-the-scenes look into the projects a client is pursuing and the thoughts of its personnel (JPY30,000 per delivery); PR TIMES TV, a service for distributing press releases in video format (JPY50,000 per video when produced by the client and JPY400,000 per video when PR TIMES handles filming and editing); and PR TIMES LIVE, a service for live streaming events such as press conferences (JPY800,000 or more per delivery).
There are many competitors that distribute press releases, such as valuepress Co., Ltd. (unlisted) and Socialwire Co., Ltd. (TSE Growth: 3929). However, PR TIMES is the de facto industry leader, with 50.4% of listed companies in Japan using its services. Shared Research believes that the high traffic to the PR TIMES website (a Similarweb analysis found it was approximately 51 times that of valuepress and 21 times that of Socialwire) and extensive lineup of peripheral services such as PR TIMES STORY are what sets PR TIMES apart.
The company is focusing on two new businesses: Jooto, a task and project management tool, and Tayori, a cloud information organizer. Jooto allows members of a project to manage task progress and communicate concerning specific tasks. It also enables lateral management of an entire project. There are three different pricing plans, but the most popular, the Standard Plan, costs JPY500/month per license (up to four licenses are free). Meanwhile, Tayori allows users to easily set up inquiry forms, FAQs, questionnaires, and other features. Like Jooto, the service is available in three pricing plans. The most popular, the Starter Plan, costs JPY3,400/month. Both businesses were in the red in FY02/22 (figures not disclosed).
As a platform, the PR TIMES business has low variable costs with fixed costs accounting for the greater part of expenses. This results in high marginal profits. The cost ratio fell from 23.1% to 11.3% over the five years from FY02/17 to FY02/22. Cost of revenue consists of labor, outsourcing, and expenses. Although the absolute amount of each item increased, the ratio of each to revenue decreased. The main components of SG&A expenses are labor costs, advertising expenses, commissions, and depreciation. The SG&A expense ratio fell from 58.4% to 51.0% over the five-year period, and OPM rose from 18.5% to 37.8% as a result.
Dividing overall revenue by the number of press releases distributed yielded JPY18,923 per press release (FY02/22; Shared Research calculation for reference). Five years earlier, in FY02/17, this figure was JPY20,769. Shared Research understands that the decline in revenue per press release stems from an increase in the percentage of clients on fixed-rate plans and revenue growth in peripheral services and new businesses.
PR TIMES is a consolidated subsidiary of Vector, Inc. (TSE Prime: 6058), the industry’s largest provider of strategic public relations services for companies. The company is positioned as part of Vector’s Press Release Distribution segment. As of February 2022, PR TIMES did not compete with other Vector Group companies. That said, PR TMES and Vector Group companies are completely independent in terms of management and are free to develop their own businesses (including those that would compete with the businesses of the other) as they see fit.
Earnings trends
In FY02/22, PR TIMES recorded record-highs in both revenue and profits, with revenue of JPY4.9bn (+28.9% YoY), operating profit of JPY1.8bn (+40.9% YoY), recurring profit of JPY1.8bn (+41.1% YoY), and net income of JPY1.3bn (+22.8% YoY). The company distributed 296,000 press releases for the full year, representing a 36.8% YoY increase despite a slowdown of growth in the number distributed in the early stages of the COVID-19 pandemic. Users of the PR TIMES service numbered 65,660 (+29.7% YoY).
For FY02/23, the company forecasts revenue of JPY6.0bn (+22.6% YoY), operating profit of JPY1.6bn (-12.8% YoY), recurring profit of JPY1.6bn (-13.0% YoY), and net income of JPY1.1bn (-13.8% YoY). It expects higher revenue and lower profits as it considers FY02/23 to be a year of investment with a plan to spend large amount on advertising.
PR TIMES has announced a five-year medium-term management plan covering FY02/22–FY02/26. KPIs the plan aims to achieve by FY02/26 include JPY3.5bn in operating profit (2.7x the FY02/21 level), 150,000 PR TIMES users in Japan (3.0x), 70% of listed companies in Japan as PR TIMES users (1.6x), and 100mn monthly page views (+2.1x). The company also targets operating profit of JPY350mn and JPY200mn for its new businesses, Jooto and Tayori, respectively.
Strengths and weaknesses
Shared Research sees the company’s strengths as: 1) the network effect created as high traffic at its website encourages increasing usage among companies, the media, and consumers; 2) its edge over peers in acquiring emerging companies as clients due to its support for startups and relationship-building through in-house media; and 3) its launch of peripheral services, such as PR TIMES STORY, ahead of competitors.
We see its weaknesses as: 1) it does not distribute press releases to overseas media; 2) high traffic at the PR TIMES website does not directly contribute to earnings; and 3) the press release distribution business has low barriers to entry due to the ease of developing the required platform.
Key financial data
Note: Figures may differ from company materials due to differences in rounding methods.
Trends and outlook
Quarterly trends and results
Note: Figures may differ from company materials due to differences in rounding methods.
Note: Figures may differ from company materials due to differences in rounding methods.
Full-year FY02/22 results (out April 13, 2022)
Summary
YoY comparisons are with the previous year’s non-consolidated results.
Progress versus forecasts
Progress versus the company’s full-year FY02/22 plan was 103.0% for revenue, 104.8% for operating profit, 104.9% for recurring profit, and 105.7% for net income attributable to owners of the parent.
Financial results
Both revenue and profits reached record highs.
Revenue was JPY4.9bn (+28.9% YoY). PR TIMES users totaled 65,660 (+29.7% YoY). The number of new users was 15,027 (+8.0% YoY). Japanese listed companies accounted for 50.4% of users (44.7% at end-FY02/21). The number of press releases was 296,422 (+36.8% YoY). Press releases are becoming increasingly rich in content, and included 1.5mn images (+40.5% YoY) and 25,141 videos (+28.7% YoY).
In FY02/22, monthly press release views of PR TIMES website reached a high of 58.8mn (+12.6% YoY). As of end-February 2022, PR TIMES distributed to 11,798 media outlets, 23,114 media users, and 210 media partners. PR TIMES has transformed from a press release distribution service into a public relations (PR) platform.
Paying users of task and project management tool Jooto reached 1,765 users (+22.1% YoY). Paying accounts for cloud information organizer Tayori reached 661 (+43.1% YoY).
Gross profit was JPY4.3bn (+33.6% YoY), and GPM was 88.7%, up 2.1pp YoY.
Operating profit was JPY1.8bn (+40.9% YoY), and OPM was 37.8%, up 3.3pp YoY. The SG&A expense ratio decreased 0.1pp YoY to 51.0%. Sales and marketing expenses accounted for 53.7%, research and development expenses 26.4%, and general and administrative expenses 19.6%. Advertising expenses were JPY341mn (-27.6% YoY). Jooto and Tayori were both in the red.
The sum of the revenue growth rate and OPM was 66.7%, up 1.9pp YoY, though still high. The revenue growth rate declined by 1.4pp, but was offset by a 3.2pp increase in OPM.
Net income attributable to owners of the parent was JPY1.3bn (+22.8% YoY). Net income grew more slowly than revenue and operating profit owing to the lack of extraordinary profit in Q3 FY02/22 versus Q3 FY02/21, when the company recorded JPY192mn in extraordinary profit.
FY02/23 company forecast
Note: Figures may differ from company materials due to differences in rounding methods.
For FY02/23, the company forecast revenue of JPY6.0bn (+22.6% YoY), operating profit of JPY1.6bn (-12.8% YoY), recurring profit of JPY1.6bn (-13.0% YoY), and net income attributable to owners of the parent of JPY1.1bn (-13.8% YoY).
PR TIMES defines FY02/23 as a year for making investments. It expects revenue to grow for the 16th consecutive year, but sees operating profit declining for the first time in nine years.
The company plans to maintain its R&D to revenue ratio while greatly increasing spending on advertising for PR TIMES service, Jooto, and Tayori. In FY02/23, it expects advertising expenses of JPY1.2bn (+246.2% YoY) for full-year FY02/13. It will announce its marketing approach when it is ready to disclose it.
PR TIMES plans to use JPY200mn for overseas expansion related costs for the PR TIMES service.
The company has revised some of the standards for the use of press releases. It decided that releases for the purpose of selling market forecast reports would no longer be permissible after April 1, 2022, since they do not constitute an announcement of new facts. Such releases represented 5.1% of the total in Q4 FY02/22.
Withdrawal from the Paper Clipping business (research of mentions in newspapers and magazines), which generated about JPY40mn of revenue in FY02/22, will have a downward impact on revenue. It will continue the Web Clipping business.
Historical performance versus initial company forecasts
The following is a summary of the differences between the company’s historical performance and its initial forecasts.
PR TIMES’ initial forecast for FY02/21 predicted that the growth in the number of press releases distributed would slow down due to the COVID-19 pandemic. Later, however, the emergency declaration was lifted and growth in the number of press releases distributed accelerated to its pre-pandemic level. This led the company to upwardly revise its full-year forecast at the time of the Q3 results announcement.
Note: Figures may differ from company materials due to differences in rounding methods.
Medium- and long-term outlook
Medium-term management policy
In April 2021, PR TIMES announced its Milestone 2025 medium-term management targets for the five-year period from FY02/22 to FY02/26. Milestone 2025 is not a medium-term management plan, but a set of medium-term management targets. The company does not set medium-term goals based on the current situation, current events, or future projections, but rather by calculating backward from the point necessary to realize the company’s “mission” (its purpose) and “dream” (its long-term management goals). Therefore, the company has set ambitious targets and as of April 2021 has not drawn up a plan that it necessarily expects to achieve.
The company develops specific measures and plans toward the achievement of Milestone 2025 each year and discloses them in its earnings forecast. PR TIMES aims to achieve revenue within +/-5% and profits at each level within +/-15% of its forecast. However, it takes a medium- to long-term perspective rather than focusing on short-term results.
The company’s mission is “toward an era when information originating from kodosha (actors, participants) moves people’s hearts and minds.” Specifically, the company defines its mission as helping to realize a society in which “everyone can communicate their actions publicly, reaching those who are important to them and giving courage to the next kodosha to stand up. Creating virtuous cycles will change who the main actors are in the news and create a society where everyone can be a hero.”
The company’s “dream” (long-term management goals) is as follows.
Make PR TIMES an entity worthy of being called “social information infrastructure”
Turn PR TIMES into one of the world’s leading internet services
Become an organization that develops human resources who create businesses that expand beyond the scope of PR TIMES
Financial goals
Milestone 2025 targets operating profit of JPY3.5bn in FY02/26. Operating profit in FY02/21 was JPY1.3bn. Achieving the FY02/26 target implies a five-year CAGR of 21.9%. The company does not consider maximizing profits an objective as such, but rather, a means of accumulating the necessary capital to invest in the company to achieve sustainable growth. The company plans to continue paying no dividend for the next five years to achieve its “mission” and to rise to the challenges of FY02/26 and beyond.
Main goals for the PR TIMES service
One of the company’s KPIs is the number of PR TIMES users. Its goal is to reach 150,000 users by end-FY02/26. User companies in FY02/21 numbered 50,633. This means a five-year CAGR of 24.3% is necessary to reach the FY02/26 target. Even assuming the number of companies in Japan decreases from 4.0mn in 2015 to 3.6mn in 2020 and to 3.2mn in 2025 as data prepared by the Cabinet Secretariat’s Headquarters for the Creation of Community, Human Resources and Jobs 2018 forecasts, PR TIMES usage will still be below 5% of all companies in Japan. The company targets an increase in the percentage of Japanese listed companies using PR TIMES from 44.7% in FY02/21 to 70.0% in FY02/26.
The company targets an increase in PR TIMES page views from 52mn per month in FY02/21 to 110mn per month in FY02/26. PR TIMES aims to expand to be used by all types of media, and thus targets an increase in the media utilization rate from 24.5% in FY02/21 to 70.0% in FY02/26. The company also aims to become a valuable source of information for consumers and businesspeople, and is targeting a 10.0% awareness of its services among businesspeople in FY02/26, up from 2.0% in FY02/21, and a 50.0% awareness of the company among businesspeople in FY02/26, up from 10.7% in FY02/21.
Contributing to local communities and economies through PR TIMES
The company has set the following goals, based on its belief that “each region in Japan has products and services that are not yet known to the world, and we want to deliver these products and services to as many people as possible, leading to the development of local economies and the revitalization of local communities.”
The company’s goal is to expand the number of prefectural governments partnering with PR TIMES from 25 in FY02/21 to all 47 by FY02/26. PR TIMES plans to partner with local financial institutions and local government bodies to provide opportunities to learn public relations and let them try PR TIMES services for free up to three times. PR TIMES expects to contribute to the development of local economies by providing support that helps local companies outside of major cities, which tend to lag behind in digitization and use of the internet, expand their sales channels. The company also aims to expand the number of local government bodies using PR TIMES from a cumulative total of 302 municipalities in FY02/21 to 700 municipalities per year in FY02/26.
Providing PR TIMES services to support disaster relief
The company aims to achieve 100% awareness of its Disaster Relief Program in FY02/26. The Disaster Relief Program provides PR TIMES services free of charge for up to two years to municipalities designated as under the Severe Disaster and Disaster Relief Act to assist in the recovery and reconstruction of communities affected by disasters. As of April 2021, there were 15 municipalities using the Disaster Relief Program.
Since the Great East Japan Earthquake of March 2011, PR TIMES has provided free press release distribution in the event of natural disasters such as earthquakes and typhoons for releases concerning disaster relief, recovery and reconstruction support, and damage awareness.
Overseas expansion of PR TIMES services
The company localized and rolled out its services for the Chinese market in 2013, but subsequently withdrew in 2014. The company says it was not able to build sufficiently strong relationships with the media in China. PR TIMES also sought M&A opportunities in East Asia in 2017, but failed to reach a basic agreement. It plans to forgo expansion into the region for the time being.
The company aims to launch the PR TIMES service in English-speaking countries, with a focus on the US, by end-FY02/23. The US press release market is oligopolized by the three major companies, Cision’s PR Newswire, Berkshire Hathaway’s Business Wire, and Intrado’s GlobeNewswire. However, PR TIMES believes that it has a good chance of success because none of these companies have built a platform to distribute press releases, post them on its own website and affiliated media, and communicate information directly to consumers. The company began building a list of M&A and alliance candidates in FY02/21 and is pursuing negotiations with them. Depending on the status and outcome of the negotiations, the company may consider establishing a subsidiary in the US.
Jooto business
PR TIMES aims to increase the number of Jooto’s paying users from 1,446 in FY02/21 to 10,000 in FY02/26. The company plans to select industries where organizations and teams are likely to make use of Jooto and to step up marketing and development targeting specific usage methods and scenarios within those industries. As a result, it aims to achieve revenue of JPY1.0bn and operating profit of JPY350mn in FY02/26, up from revenue of JPY47mn and operating loss (figure not disclosed) in FY02/21.
Tayori business
PR TIMES aims to increase the number of paying accounts for Tayori from 462 in FY02/21 to 6,000 in FY02/26. The company has revamped the concept of Tayori from a customer support tool to a cloud-based information organizer that can be used in a variety of jobs and departments. The company plans to step up marketing and sales activities to increase awareness of Tayori as a cloud-based information organizer and to update the product to make it even more user-friendly and convenient. As a result, it targets revenue of JPY506mn and operating profit of JPY200mn in FY02/26, up from revenue of JPY21mn and operating loss (figure not disclosed) in FY02/21.
BRIDGE business
The company’s consolidated subsidiary, THE BRIDGE, Inc., aims to increase the number of paying accounts for its startup-focused BRIDGE media to 10,000 and the number of registered companies to 500 by FY02/26. In FY02/22, the company plans to start a membership plan and to hold hybrid online–offline trade fairs. It also plans to start developing a platform for corporations and individuals to connect with startups based on its experience of concept verification testing.
Management personnel and management teams
PR TIMES aims to create new businesses that expand beyond the scope of the PR TIMES business. The company therefore believes that it needs to develop management personnel capable of taking charge of the entire business to create new value for society and achieve sustainable earnings growth. The company is also experimenting with a shift from management by individuals to management by teams. Its policy is to pursue its corporate philosophy over the long term, while continuing to innovate without becoming sclerotic.
Promoting gender equality and diversity
In addition to diversity in terms of gender, age, and nationality, the company respects different abilities, skills, and experiences, while pursuing common goals and values as an organization, and linking them to organizational capabilities that will drive growth. The company also aims to achieve a ratio of 25% or more women as directors and auditors.
Employee ownership
The company will create opportunities for employees, who are the leaders of the business, to become shareholders, and realize a compensation system that allows employees to benefit as shareholders if corporate value increases dramatically over the medium to long term.
As a stock option plan, the company plans to grant 96,000 shares of common stock to all regular employees. However, the number of shares granted is based on performance, with 100% of the 96,000 shares to be granted if operating profit exceeds JPY3.5bn in FY02/26, 75% to be granted if operating profit exceeds JPY3.2bn, and 50% to be granted if operating profit exceeds JPY2.8bn. The company plans to determine who will be eligible for the grants and the number of shares to be granted in June 2027.
PR TIMES also has an employee stock ownership incentive plan under which employees who purchase the company’s stock are eligible for a 50% incentive payment for monthly contributions up to JPY10,000, and a 10% incentive payment for monthly contributions in excess of JPY10,000.
Reference: Previous medium-term management plan
In July 2016, PR TIMES announced its medium-term management plan ending in FY02/21. The plan targeted JPY1.0bn in operating profit in FY02/21. The company exceeded this target, posting operating profit of JPY1.3bn in FY02/21.
The company aimed for 50,000 PR TIMES users by end-FY02/21, and exceeded this target with 50,633 users. While the utilization rate among Japanese listed companies increased from 26.5% to 44.7%, the company was not able to increase the rate of increase of this metric. The company also aimed for 100% awareness and usage of its media, but only achieved a rate of 24.5%. The number of media users increased from 5,913 to 20,307, but this figure still fell short of the company’s target.
Among the company’s managed media, PR TIMES page views increased from 6mn per month to 52mn per month. Traffic for news media such as isuta and BRIDGE has been flat over the past five years, and measures to increase page views and monetize traffic remain an issue.
Note: The results of a survey conducted by PR TIMES in August 2020 (questionnaire survey of 412 journalists, editors, and producers).
Business
Business overview
The company operates PR TIMES website, an online platform that connects companies, the media, and consumers through press releases.
PR TIMES distributes its corporate clients’ press releases to journalists before posting them on its website and the sites of its media partners. Press Release Distribution is the company’s only segment. However, it also provides PR TIMES STORY, a service that allows users to publish stories giving behind-the-scenes insight into the development of services and other areas; PR TIMES TV and PR TIMES LIVE, press release video distribution services; Jooto, a task and project management tool; and Tayori, a cloud-based information organizer. The company does not disclose its revenue breakdown by business.
About the company’s mission
PR TIMES’ mission is “toward an era when information originating from kodosha (actors, participants) moves people’s hearts and minds.” Specifically, the company defines its mission as helping to realize a society in which “everyone can communicate their actions publicly, reaching those who are important to them and giving courage to the next kodosha. Creating virtuous cycles will change who the main kodosha are in the news and create a society where everyone can be a hero.”
The company’s primary goal is to realize this mission. Therefore, it does not consider maximizing profits an objective as such, but rather, a means necessary to invest in the company and achieve sustainable growth to realize its goal.
Relationship with the parent, Vector, Inc.
The company is a consolidated subsidiary of Vector, Inc., the industry’s largest provider of strategic public relations services, and is positioned as part of Vector’s Press Release Distribution segment. In FY02/21, PR TIMES accounted for 4.0% of Vector Group revenue. As of February 2022, PR TIMES did not compete with other Vector Group companies. That said, PR TMES and Vector Group companies are completely independent in terms of management and are free to develop their own businesses (including those that would compete with businesses of the other) as they see fit.
PR TIMES
PR TIMES is a platform that companies, government agencies, and organizations can use to distribute press releases to the media and consumers.
A press release is an offer, announcement, or presentation of information by a company, government agency, or organization to media such as news sites, newspapers, magazines, and TV stations. Press releases can be mailed, faxed, physically distributed, emailed, or published on the company’s, government’s, or organization’s website. In April 2007, the company launched a service to distribute press releases to the media on behalf of clients. In addition to press release distribution, the company spreads the word about new developments by publishing information on its website (PR TIMES) and affiliated media, and posting on the PR TIMES Facebook page and Twitter.
Press release distribution
The company distributes press releases to the media on behalf of its clients. Target media outlets include news sites, newspapers, magazines, TV and radio stations, and individual reporters and experts. As of February 2022, the company had a list of 11,798 media outlets. The client selects up to 300 media recipients for a press release they want to distribute. The company then distributes the press release to reporters and editors as material prepared for the press, with the aim of having them publish an article based on said release.
Publishing on the company’s website, PR TIMES
PR TIMES operates an eponymous website, where it publishes its clients’ press releases. At 58.8mn page views per month (August 2021), PR TIMES has about a quarter of the views of newspaper sites such as Asahi Shimbun Digital and Yomiuri Online. Reporters and editors use PR TIMES as journalistic source material. Consumers also access news directly from the site.
Formerly, companies distributed press releases to the media, who wrote articles based on them to convey the information to the general public (consumers). However, the spread of the internet and smartphones has provided a means of communicating information beyond the traditional media since companies like PR TIMES can publish press releases on their own websites. Consumers can now obtain reliable information straight from the source by reading press releases instead of articles written by reporters.
Note: Media publicity refers to coverage on news sites, TV programs, and in newspapers and magazines.
Note: Monthly page views is the number of pages viewed per month on the company’s website (monthly average for three months); The figure for PR TIMES is for the single month of August 2021.
Publication on partner media sites
Partner media are media entities with which PR TIMES has concluded a business alliance agreement. As of February 2022, the company had 210 media partners, including Sankei News, Yomiuri Online, Asahi Shimbun Digital, Mainichi Shimbun Digital, Jiji.com, iza, and Toyo Keizai Online. The company publishes each press release on more than 20 of these partner media sites.
Posting on social media
The company also spreads press releases via social media accounts that it manages. PR TIMES had 128,000 Facebook and 350,000 Twitter followers as of February 2022.
Pricing plans
The PR TIMES service has two basic plans: a pay-as-you-go plan and a flat-rate plan (monthly, half-yearly, or yearly). These come with optional add-ons. The company does not disclose the breakdown of orders by plan, nor has it taken measures to, for example, increase the ratio of flat-rate plans. The reason for this is based on management’s belief that clients should be able to choose the most appropriate plan for themselves, given that the number of press releases to be distributed, timing, and other circumstances vary from client to client.
As seen in the table below, the flat-rate plan is more advantageous than the pay-as-you-go plan for clients wishing to distribute three or more press releases per month.
Churn rate
Because revenue consists of both pay-as-you-go and flat-rate plans, the concept of churn rate does not apply to the company’s business.
Free services and temporary suspension of contracts for some clients
In response to the COVID-19 pandemic, PR TIMES offered free distribution of press releases related to the shortening of business hours to long-term clients forced to close temporarily or shorten their working hours in accordance with local government requests. The company provided such services in April 2020 and January 2021.
In the event of a natural disaster, PR TIMES provides press releases concerning disaster damage relief, recovery and reconstruction support, and damage awareness free of charge as part of its Disaster Relief Program. When the Great East Japan Earthquake struck in March 2011, the company offered free distribution of press releases related to damage relief, reconstruction assistance, and damage awareness indefinitely; it did the same when the Kumamoto Earthquake struck in April 2016 and Typhoon No. 19 hit in October 2019.
Customers
The number of companies using PR TIMES has been increasing year by year such that the company is the effective leader in the industry. As of February 2022, 65,660 companies were using the service, 50.4% of whom were listed companies in Japan. Customers range from large corporations to startups and local governments. In most cases, clients sign up for PR TIMES services after doing research online, but in some cases, they are introduced to the company’s services by public relations firms. Large companies generally have a public relations department and relationships with the media such that they can send press releases to the media themselves. However, using PR TIMES still has value for large companies in that it ensures that their press releases are distributed to the relevant media and allows them to deliver information more widely and directly to consumers.
It is also worthy of note that a high percentage of emerging companies use PR TIMES’ services. According to the company, 68.8% of Japanese companies that went public in 2021 and 63.4% that went public in 2020 were PR TIMES users. Among companies newly listed on the Mothers Section of the Tokyo Stock Exchange, 75.3% used PR TIMES in 2021 and 71.9% in 2020. One of the reasons for the high use of PR TIMES among emerging companies is the company’s Startup Challenge program, which offers up to 10 free PR TIMES orders to startups that have been in business for two years or less. Further, the company’s consolidated subsidiary, THE BRIDGE, provides PR support to startups through the BRIDGE media service.
Registration screening
In FY02/21, there were 13,916 new companies using the service. However, 110 companies were rejected during the registration screening process. The company publishes conditions for registration on its website. The rejections mostly stemmed from the companies’ business activities being in violation of the Medical Advertising Guidelines, the Pharmaceutical and Medical Device Act, the Act against Unjustifiable Premiums and Misleading Representations, and other laws and regulations.
Images and videos used in press releases
The company discloses the number of images and videos used in its press releases. While the images and videos used in press releases do not generate revenue themselves, they are part of the company’s content library.
Unauthorized access to unreleased information and connection failures
Between November 2020 and July 2021, an instance of unauthorized external access resulted in the leaking of 871 unreleased press releases, 866 zipped image files, and 91 PDFs from 17 accounts at 16 companies. The breach was caused by a security hole in the company’s system, and PR TIMES modified the system after discovering the problem. The leaked data was not member information or material information under the Financial Instruments and Exchange Act. The impact on financial performance was minor, but the company took the situation very seriously and said it would make every effort to restore trust.
In December 2019, the PR TIMES website suffered a connection failure that prevented access to the site and suspended press release distribution. The cause was a large volume of unauthorized accesses from a single IP address via a route that was partially unblocked. The company did not charge for the 194 affected press releases of clients under the pay-as-you-go plan (totaling JPY5.0mn in lost revenue).
PR TIMES STORY
PR TIMES STORY is a service that delivers stories to provide the background surrounding events. This includes anecdotes related to the development of new products, the establishment or early days of an enterprise, and the twists and turns leading up to the launch of services. PR TIMES STORY releases this information in a press release format for the media and publishes it on PR TIMES to be read directly by consumers. The company launched the service in May 2020 and began charging fees for it in October 2020.
Fees
The distribution fee is JPY30,000 per order. The company also charges JPY100,000 for a story draft based on a one-hour interview, and an additional JPY50,000 for photography and filming where applicable.
PR TIMES TV and PR TIMES LIVE
PR TIMES TV is a video press release production and distribution platform. The service involves shooting and editing one-minute videos on new developments at the client company and delivering them to the media and consumers. Video is a more efficient medium for delivering information than text and images since a one-minute video contains content approximately equivalent to 1.8 million words, which is equivalent to 3,600 web pages.
PR TIMES LIVE is a service that delivers information to the media and consumers in real time through the live streaming of events such as press conferences. The company’s film crews broadcast events live on official social media and YouTube accounts. They also condense the key points of the event into a one-minute digest video. The company posts this digest video on the PR TIMES TV website, in addition to official social media and YouTube accounts.
Filming is done by the company’s employees or outsourced to an external company.
Fees
PR TIMES TV fees are JPY50,000 per video if the client creates the video and images themselves, and JPY400,000 if PR TIMES handles these tasks. PR TIMES LIVE is priced at JPY800,000 or more per video and is negotiable. As an optional service, the company can translate the video into English or Chinese and distribute it overseas for JPY150,000 per language. Clients can additionally choose to purchase social media ads to increase the number of views for JPY200,000 or more, and videos announcing upcoming releases for JPY50,000.
Web Clipping
Web Clipping is a service for searching and detecting articles from selected web media. Web Clipping is useful for measuring the effectiveness of PR activities, understanding the status of one’s own press coverage, and researching competitor and industry trends. As of February 2021, users numbered 12,368.
Fees
Web Clipping fees are as follows.
Jooto
Jooto is a task and project management tool based on the Kanban method (lean management system). A task or project management tool is a convenient means of sharing information on the progress of multiple tasks or projects whether undertaken by a single employee or a group of employees. Jooto is characterized by its intuitive layout and simple design.
The beta version of Jooto was released in January 2014 and the official version in June 2014 by Skipforward Pte., Ltd. (Singapore). In September 2017, PR TIMES acquired the Jooto business through a business transfer agreement with Skipforward.
The company aims to create businesses that expand beyond the scope of its PR TIMES business. In line with this goal, it is focusing on Jooto as a new business. It aims to increase the number of Jooto’s paying users to 10,000 in FY02/26 (from 1,765 at end-February 2022). It plans to select industries where organizations and teams are likely to make use of Jooto and to step up marketing and development targeting specific usage methods and scenarios within those industries. As a result, the company aims to achieve revenue of JPY1.0bn and operating profit of JPY350mn in FY02/26 (versus revenue of JPY100mn and operating loss in FY02/22).
In December 2021, PR TIMES signed a business tie-up agreement with Softbank Group’s SB C&S Corp. to sell Jooto through 12,000 partner companies nationwide, as well as through SB C&S’s “IT-EXchange” website.
Fees
Jooto fees are as follows.
Tayori
Tayori is a cloud information organizer. It includes form, inbox, chat, FAQ, and questionnaire functions. Forms, inboxes, and chats are used to collect and store information, FAQs are used to share information with various people, and questionnaires are used to collect and analyze information. Combining these functions allows companies to collect, store, share, analyze, and organize information within various departments and operations.
The company launched Tayori in July 2015. The company aims to create businesses that expand beyond the scope of its PR TIMES business. In line with this aim, it is focusing on Tayori as a new business. It aims to increase the number of paying accounts for Tayori to 6,000 in FY02/26 (from 661 at end-February 2022). The company intends to step up its marketing and sales efforts to increase awareness, while revamping the product to make it even more user-friendly and convenient. As a result, it targets revenue of JPY506mn and operating profit of JPY200mn in FY02/26 (versus revenue of JPY57mn and operating loss in FY02/22).
Fees
The fees for Tayori are as follows.
Media management
PR TIMES also operates media to deliver information “from actors to the world.” These media comprise BRIDGE, isuta, U-NOTE, Techable, STRAIGHT PRESS, IGNITE, PR EDGE, and PR TIMES MAGAZINE. Advertising revenue from articles and performance-based advertising is the main source of revenue.
BRIDGE
BRIDGE is a blog that seeks to “connect entrepreneurs and investors” through the distribution of technology news with a focus on startups in Japan and the rest of Asia. It is managed by consolidated subsidiary THE BRIDGE, Inc.
isuta
isuta is a blog covering fashion, cosmetics, interior design, and other topics based on the slogan “Never lie about what you like.”
U-NOTE
U-NOTE is a blog for young businesspersons covering everything from work etiquette and know-how to fashion based on the slogan “Enjoy your work, look good every day.”
Techable
Techable is a news site that covers the latest trends in technology, social media, and marketing, as well as domestic and international startups that are creating the future economy.
STRAIGHT PRESS
STRAIGHT PRESS is a news site that covers the latest information on fashion, beauty, entertainment, lifestyle, and gourmet food and delivers it “straight” to trend-sensitive consumers.
IGNITE
IGNITE is a lifestyle information site for “adults who care about the real thing.” It covers trends in a wide range of areas, including fashion and gadgets, with a focus on automotive news.
PR EDGE
PR EDGE is a website that introduces examples of creative advertising and promotion from around the world. The site introduces examples of tasteful promotional campaigns in various industries for people involved in advertising.
PR TIMES MAGAZINE
PR TIMES MAGAZINE is a website that provides a variety of PR knowledge for all potential information providers, based on the concept of a “a textbook that becomes yours the more you use it.”
Earnings structure
Single segment
PR TIMES operates in a single segment: Press Release Distribution. However, the company also operates Jooto, Tayori, and a variety of media businesses, albeit on a smaller scale.
PR TIMES offers a pay-as-you-go plan, a flat-rate plan (monthly, half-yearly, or yearly), and an optional plan. The company does not disclose the number or ratio of subscriptions for each plan. PR TIMES also provides PR TIMES STORY, PR TIMES TV, and PR TIMES LIVE services, each of which has a different fee structure.
The company’s KPIs are the sum of the revenue growth rate and OPM (following the 40% rule*), the number of users, and the number of press releases distributed. The sum of the revenue growth rate and OPM was 64.8% in FY02/21, up 20.4pp from five years earlier.
Note: Figures may differ from company materials due to differences in rounding methods.
Seasonality
While PR TIMES has been growing on a quarterly basis, Q4 revenues tend to be lower than Q3 revenues due to seasonality. The reason for this is that the number of press releases distributed in Q4 (December–February) is lower than in Q3 due to the New Year’s holidays and fewer business days in February.
Cost of revenue
The company’s cost ratio declined from 31.6% in FY02/15 to 14.4% in FY02/21. The cost of revenue consists of labor, outsourcing, and expenses. While absolute amounts of each of these items has increased, the ratio to revenue has declined. Shared Research believes that fixed costs figure heavily into these items.
SG&A expenses
The company’s SG&A expense ratio has generally trended between 55%–60%. While FY02/20 and FY02/21 were an exception, Shared Research believes this was due to advertising expenses in FY02/20 and an extraordinary provision for doubtful accounts in FY02/21. The labor cost ratio rose from 14.7% in FY02/15 to 17.6% in FY02/16, and then declined to 8.2% in FY02/21.
Earnings structure
Considering the breakdown and trends in the company’s cost of revenue and SG&A expenses, Shared Research believes that the company has an earnings structure with low variable costs and a high marginal profit ratio. Although the company operates in a single segment (Press Release Distribution), the figures include new businesses such as Jooto and Tayori, which are in the red.
Group companies
PR TIMES has one consolidated subsidiary.
THE BRIDGE, Inc.
In March 2021, the company established THE BRIDGE, Inc. PR TIMES spun off the startup-focused BRIDGE media business that it had been developing, and THE BRIDGE took it over effective May 2021. PR TIMES holds 95% of THE BRIDGE shares and Takeshi Hirano holds 5%. Takeshi Hirano serves as representative director of THE BRIDGE. THE BRIDGE operates the BRIDGE media brand and a community revitalization business.
BRIDGE is a blog launched in June 2016 with the aim of “connecting entrepreneurs and investors.” It provides daily technology news with a focus on startups in Japan and the rest of Asia. It delivers information to more than 400,000 users every month, including entrepreneurs, startup supporters, investors, financial institutions, and business development staff at large corporations.
In 2016, THE BRIDGE held a large conference with 100 startups and 1,000 participants. Since 2017, it has been building a startup community in Japan by holding individual study programs on social issues. The BRIDGE provides community building and matching support to help the startup ecosystem* function.
Market and value chain
Market overview
Size of the public relations industry
There is no statistical data available that indicates the market size for the company’s press release distribution service.
The public relations market, which includes press release distribution services, amounted to JPY111.1bn in FY03/21. It was on a long-term expansionary trend through FY03/19, but shrank in FY03/20 and FY03/21.
Competitor comparison
Press release distribution
There are many competitors that provide press release distribution services for a fee or free of charge. Below is our summary of services that offer fee-based press release distribution. Pricing structures are generally in line with each other.
The company’s PR TIMES service is used by 50.4% of listed companies in Japan (February 2022). Shared Research believes that the company has the de facto largest market share among listed companies in Japan. Further, a high percentage of emerging companies use PR TIMES. According to the company, 68.8% of newly listed companies in Japan used PR TIMES at the time of their listing in 2021 and 63.4% in 2020. Looking only at companies newly listed on TSE Mothers, this figure was 75.3% in 2021 and 71.9% in 2020.
With 71,284 users, valuepress was the industry leader in terms of the number of users (April 2022). PR TIMES had 65,660 users (February 2022).
The PR TIMES website had 58.8 million page views in August 2021. Competitors do not disclose page views. However, a comparison using Similarweb (an SEO tool to compare competing sites) found that PR TIMES had approximately 51 times the number of visitors of valuepress and approximately 21 times the number of visitors of @Press (as of March 2022).
The company has had success in developing comprehensive, high-quality services that meet client needs evidenced by its provision of peripheral services such as PR TIMES STORY, PR TIMES TV, and PR TIMES LIVE in addition to press release distribution. Shared Research understands that no competitor offers such comprehensive services.
There are several services that claim to have the highest press release conversion rate (the rate at which they are picked up by the media as articles or news stories), but Shared Research cannot comment on this metric definitively without objective data.
Japanese services distributing the press releases of overseas clients to Japanese media include Japan PR Wire by Kartz Media Works Co., Ltd. (unlisted). However, there are major US press release distribution services, such as PR Newswire by Cision Ltd., which operates in 170 countries; Berkshire Hathaway Inc.’s Business Wire (162 countries); and Intrado’s GlobeNewswire (93 countries).
Unlike competitors such as Kyodo News PR Wire, @Press, and Dream News, PR TIMES does not distribute press releases to overseas media.
Socialwire Co., Ltd.
The following table shows Socialwire’s results and how they compare to those of PR TIMES.
Note: PR TIMES’s fiscal year ends in February, while Socialwire’s ends in March.
Task and project management tools
The company’s Jooto task and project management tool faces competition from many similar services. Shared Research was able to discover the following 45 (see table below). The relative position of Jooto in the industry is currently unclear.
Strengths and weaknesses
Strengths
PR TIMES benefits from a network effect as high traffic at its website encourages increasing usage among companies, the media, and consumers.
The company not only distributes press releases, but posts them on its PR TIMES website to be directly viewed by consumers. This site receives roughly a quarter of the page views of major newspaper sites and more visitors than the sites of competitors (an analysis using Similarweb found PR TIMES had about 51 times more traffic than valuepress and 21 times more than Socialwire). Shared Research believes that the company benefits from a network effect in which consumer traffic at the PR TIMES website attracts corporate clients seeking press release distribution, whose content in turn encourages further growth in traffic. This drives expansion in the number of companies, media, and consumers using PR TIMES. The five-year CAGR for the number of users (clients) was 31.8%, for the number of media partners was 17.2%, and for the highest monthly site views during the period was 51.4%.
Competitors build their own websites and post press releases in a similar manner to the company. However, building a similar platform does not necessarily mean that they will receive the same level of traffic and follow the same growth trajectory. For example, Infoseek, Excite, and Livedoor* all run similar platforms to Yahoo, and yet receive much less traffic. We see a similarly stark contrast between the traffic of PR TIMES and that of its competitors.
* Infoseek, Excite, and Livedoor are included among the major portal websites in Japan.
PR TIMES has an edge over peers in acquiring emerging companies as clients due to its support for startups and relationship-building through in-house media.
A high percentage of emerging companies use PR TIMES. According to the company, 68.8% of newly listed companies in Japan in 2021 were PR TIMES users when they went public. This figure was 63.4% in 2020. Looking only at the Mothers Section of the Tokyo Stock Exchange, 75.3% were users of PR TIMES at the time of their listing in 2021. This figure was 71.9% in 2020.
The company’s Startup Challenge, a support program that offers up to 10 free PR TIMES services to startups that have been in business for less than two years, is one of the reasons behind high PR TIMES usage among emerging companies. As of February 2021, a total of 8,160 companies had made use of the program. PR TIMES has also formed business alliances with venture capital firms and incubators to provide public relations support to their investees. Moreover, the company’s consolidated subsidiary, THE BRIDGE, provides public relations support to startups through the operation of the BRIDGE media brand, which focuses on content for startups. Shared Research believes that the company’s support for startups and its ability to build relationships with them through media has resulted in a high percentage of them being PR TIMES users at the time of their listing.
The company’s launch of peripheral services, such as PR TIMES STORY, ahead of its competitors
The company is unique in providing peripheral services in addition to press release distribution such as PR TIMES STORY, PR TIMES TV, and PR TIMES LIVE. While it would be relatively easy for a competitor to launch similar services, Shared Research believes that being the first to provide such services helps to set the company apart from its competitors. Although these peripheral services do not necessarily directly increase the number of PR TIMES users, Shared Research understands that there are no competitors offering similar services and that the existence of these options make PR TIMES more attractive to prospective clients.
Weaknesses
PR TIMES does not distribute press releases to overseas media.
The company’s PR TIMES service is unable to meet the needs of Japanese companies wishing to distribute press releases to overseas media. Shared Research believes that this results in PR TIMES missing out on the demand as potential clients take their business to competitors. Services that offer overseas press release distribution include Kyodo News PR Wire, @Press, and Dream News.
One of the company’s medium-term management goals is to launch the PR TIMES service in English-speaking countries, particularly in the US, by the end of FY02/23. According to the company, the rationale for this move is not so much to distribute the press releases of Japanese companies to overseas media, but rather to distribute the press releases of US companies to the US market.
High traffic at the PR TIMES website does not directly contribute to earnings.
The company’s website, PR TIMES, generates a high amount of traffic, and Shared Research recognizes that its use by companies, media, and consumers is expanding due to a network effect. However, the company’s business structure is such that this traffic does not directly contribute to revenue through advertising or other means. Fees for using the service are either based on a pay as-you-go plan or a flat-rate plan, and higher views on a given press release do not directly translate to higher fees for the user (and thus do not result in higher earnings for PR TIMES). Meanwhile, the company incurs costs to develop and maintain the website.
The press release distribution business has low barriers to entry due to the ease of developing the required platform
The press release distribution business has low barriers to entry because the systems required for press release distribution can be developed relatively easily by companies with planning and development capabilities. Launching press release distribution services does not require patents or technical superiority. In fact, there are already many companies that offer services similar to PR TIMES. Shared Research believes that the low barriers to entry make it difficult for PR TIMES to differentiate its service offerings, and that its business structure is prone to price competition.
Historical performance
Q3 FY02/22 results (out January 13, 2022)
Summary
YoY comparisons are with the previous year’s non-consolidated results.
Progress versus forecasts
Progress versus the company’s full-year FY02/22 plan was 76.5% for revenue (73.5% of eventual full-year results in Q3 FY02/21), 86.9% for operating profit (84.8%), 86.9% for recurring profit (85.0%), and 86.1% for net income attributable to owners of the parent (88.8%).
Financial results
Revenue was JPY3.6bn (+30.3% YoY). PR TIMES users totaled 62,415 (+31.9% YoY). The number of new users (in Q3) was 3,979 (+4.5% YoY). Japanese listed companies accounted for 49.3% of users. The number of press releases (in Q3) was 82,826 (+33.7% YoY). Press releases are becoming increasingly rich in content, and included 424,000 images (+34.9% YoY) and 6,687 videos (+24.9% YoY) in Q3.
In cumulative Q3 FY02/22, monthly press release views reached a high of 58.8mn in August 2021. As of end-November 2021, PR TIMES distributed to 11,814 media outlets, 22,559 media users, and 206 media partners. PR TIMES has transformed from a press release distribution service into a PR platform.
Paying users of task and project management tool Jooto reached 1,727 users. Paying accounts for cloud information organizer Tayori reached 624.
Gross profit was JPY3.2bn (+35.4% YoY), and GPM was 88.7%, up 3.3pp YoY.
Operating profit was JPY1.5bn (+37.7% YoY), and OPM was 42.1%, up 2.2pp YoY. The SG&A expense ratio increased 1.1pp YoY to 46.6%. Sales and marketing expenses accounted for 52.3%, research and development expenses 27.5%, and general and administrative expenses 20.0%. Advertising expenses were JPY223mn (-5.9% YoY).
The sum of the revenue growth rate and OPM was 75.1%, down 0.8pp YoY, though still high. The revenue growth rate declined by 2.4pp, but was offset by a 1.6pp increase in OPM.
Net income attributable to owners of the parent was JPY1.0bn (+12.7% YoY). Net income grew more slowly than revenue and operating profit owing to the lack of extraordinary profit in Q3 FY02/22 versus Q3 FY02/21, when the company recorded JPY192mn in extraordinary profit.
1H FY02/22 results (out October 14, 2021)
Summary
YoY comparisons are with 1H FY02/21 non-consolidated results.
Progress versus forecasts
Progress versus the company’s full-year FY02/22 forecast was 48.7% for revenue (46.2% of eventual full-year results in 1H FY02/21), 51.3% for operating profit (48.6% YoY), 51.3% for recurring profit (48.6% YoY), and 51.0% for net income attributable to owners of the parent (57.7% YoY).
Financial results
Revenue was JPY2.3bn (+31.9% YoY). PR TIMES users totaled 58,436 (+34.3% YoY), 4,010 of which were new companies (signed up within Q2; +12.1% YoY). Japanese listed companies accounted for 47.7% of users. Press releases in Q2 totaled 71,702 (+34.1% YoY). Press releases are becoming increasingly rich in content, with 363,000 images (+37.0% YoY) and 6,144 videos (+26.9% YoY) posted during the quarter.
Monthly press release page views reached a record high of 58.8mn in August 2021. As of end-August 2021, the company had 11,962 media outlets, 21,947 media users, and 203 media partners. PR TIMES has transformed itself from a traditional press release distribution service to a fully-fledged PR platform.
Paying users of Jooto, a task and project management tool, grew to 1,647 companies. Meanwhile, paying accounts for Tayori, a cloud information organizer, grew to 578.
Gross profit was JPY2.0bn (+37.1% YoY), and GPM was 88.3%, up 3.4pp YoY.
Operating profit was JPY897mn (+42.0% YoY), and OPM improved by 2.8pp YoY to 39.1%. The SG&A expense ratio rose 0.6pp YoY to 49.2%. The company began disclosing breakdowns of SG&A expenses in FY02/22: 53.9% of SG&A expenses were for sales and marketing, 27.5% were for research and development, and 18.3% were for general and administrative expenses. Advertising expenses were JPY169mn (-2.3% YoY).
The combined revenue growth rate and OPM was 70.0%, still high despite falling 0.1pp YoY. A 4.9pp decline in the revenue growth rate was offset by a 4.8pp rise in OPM.
Net income attributable to owners of the parent was JPY618mn (+2.6% YoY). The absence of JPY192mn in extraordinary profit recorded in 1H FY02/21 was behind the slower growth in net income versus revenue and operating profit.
Q1 FY02/22 (out July 14, 2021)
Summary
YoY comparisons are with Q1 FY02/21 non-consolidated results.
Progress versus forecasts
Progress versus the company’s full-year FY02/22 forecast, was 23.9% for revenue (21.8% of eventual full-year results in Q1 FY02/21), 22.4% for operating profit (21.3%), 22.4% in recurring profit (21.4%), and 22.5% in net income attributable to owners of the parent (36.6%).
Financial results
Revenue was JPY1.1bn (+37.6% YoY). PR TIMES users totaled 54,426 (+36.3% YoY), and new users (signed up in Q1) amounted to 3,793 (+17.7% YoY). Japanese listed companies accounted for 46.3% of users. The company distributed 68,527 (+59.6% YoY) press releases (Q1). Press releases are becoming richer in content; they included 348,000 images (+76.1% YoY) and 6,121 videos (+58.7% YoY) over the quarter.
Monthly press release page views reached a record high of 53.5 million in March 2021. As of end-May 2021, the company had 11,980 media outlets, 21,303 media users, and 200 media partners. PR TIMES has transformed itself from a traditional press release distribution service to a fully-fledged PR platform. Paying corporate users of task and project management tool Jooto grew to 1,547. Meanwhile, paying accounts for cloud-based information organizer Tayori grew to 516.
Gross profit was JPY992mn (+41.7% YoY), and GPM was 88.0%, a 2.6pp improvement YoY.
Operating profit was JPY392mn (+41.2% YoY), and OPM was 34.7%, an improvement of 0.8pp YoY. The SG&A expense ratio was 53.2%, up 1.6pp YoY. The breakdown of SG&A expenses, which the company began disclosing in FY02/22, was 54.1% for sales and marketing, 26.5% for research and development, and 19.4% for general and administrative expenses. Advertising expenses were JPY120mn (+25.0% YoY).
The combined revenue growth rate and OPM was 72.3%, up 17.0pp from 55.3% in Q1 FY02/21. The revenue growth rate and OPM increased by 16.2pp and 0.8pp, respectively.
Net income attributable to owners of the parent was JPY273mn (-28.5% YoY). The decline in net income was due to the absence of the JPY192mn in extraordinary profit recorded in Q1 FY02/21.
Full-year FY02/21 results (out April 13, 2021)
Summary
YoY comparisons are with full-year FY02/20 consolidated results.
Progress versus forecasts
Progress versus the forecast for full-year FY02/21 (revised on January 12, 2021) was 99.9% for revenue, 94.6% for operating profit, 94.5% for recurring profit, and 96.2% for net income.
Financial results
Revenue was JPY3.8bn (+30.3% YoY). PR TIMES users totaled 50,633 (+37.9% YoY), and new users amounted to 13,916 (+64.6% YoY). Japanese listed companies accounted for 44.7% of users. Press releases numbered 216,655 (+35.3% YoY). Press releases are becoming increasingly rich in content, and included 1,069,000 images (+33.7% YoY) and 19,540 videos (+55.3% YoY).
Monthly press release page views reached a record high of 52.2 million in May 2020. As of end-February, the company had 12,071 media outlets, 20,307 media users, and 200 media partners. Accounts for task and project management tool Jooto grew to 262,694, and accounts for cloud-based information organizer Tayori grew to 42,251. That said, the paid user rate was extremely low for these services as the company was still in the investment phase.
Gross profit was JPY3.2bn (+32.5% YoY), and GPM was 85.6%, an improvement of 1.4pp YoY.
Operating profit was JPY1.3bn (+132.2% YoY), and OPM was 34.6%, a 15.2pp improvement YoY. The SG&A expense ratio was 51.1%, down 13.7pp YoY. The main factor was advertising expenses of JPY472mn (-18.5% YoY).
The combined revenue growth rate and OPM was 64.8%, up 18.9pp YoY. The revenue growth rate and OPM increased by 3.8pp and 15.2pp, respectively.
Net income for the period was JPY1.0bn (+196.8% YoY). The company recorded JPY192mn in extraordinary profit due to a gain on extinguishment of tie-in shares resulting from the merger of consolidated subsidiary Mash Media Inc.
Income statement
Note: Figures may differ from company materials due to differences in rounding methods.
Revenue has increased every year for the 14 terms of the company’s history, and it has always operated in the black. Operating profit has increased every year over the past seven terms.
Average annual growth rate between FY02/15 and FY02/21 was 28.3% for revenue and 55.4% for operating profit. OPM increased from 10.9% to 34.6% over the period.
Shared Research understands the company has high marginal profitability. From FY02/15 to FY02/21, the cost ratio declined from 31.6% to 14.4%. Cost of revenue consists of labor, outsourcing, and general expenses. Although the respective amounts increased, they were offset by proportionally higher revenue. The SG&A expense ratio trended between 55–60%. The main components of SG&A expenses were labor, advertising, commissions, and depreciation. Although the company currently operates in a single segment, Press Release Distribution, these figures include new businesses such as Jooto and Tayori, which are in the red.
The extraordinary loss of FY02/20 was an impairment loss of JPY98mn due to continued underperformance in the Jooto business, as the book value of an asset group related to the business was reduced to the recoverable value. In FY02/21, the company posted an extraordinary gain for the extinguishment of tie-in shares resulting from the absorption-type merger of consolidated subsidiary Mash Media Inc. It also posted an extraordinary loss in FY02/21, however, as the performance of the U-NOTE business continued to fall short of the plan, and the book value of the asset group related to the business was reduced to the recoverable amount, resulting in a JPY33mn impairment loss.
Balance sheet