Significant growth, profitability and international expansion to underscore Appier's focus in second half of 2022

Highlights and achievements for the second quarter of fiscal year 2022

• Revenue increased to 4.4 billion yen with the highest YoY growth rate of 56% over the last three years
• Gross profit grew 57% YoY
• Revenue from the US and EMEA markets increased over 9 times YoY and represented 12% of total revenue
• Achieved EBITDA margin of 5% with EBITDA profit of 213 million yen
• Operating margin improved by 7 percentage points YoY and EBITDA margin improved by 6 percentage points YoY
• Achieved 30% YoY growth in customer numbers with a record high last twelve months net revenue retention of 127.3% and lowest ever customer churn rate of 0.62%
• Upward revision of full year forecast from 17.8 billion yen to 18.5 billion yen, with YoY revenue growth rate further accelerated to 46% from 41%

Appier's second quarter performance summaryTAIPEI, TAIWAN - Media OutReach - 12 August 2022 - Appier Group Inc (TSE: 4180), henceforth referred to as Appier, today announced its financial results for the second quarter of fiscal year 2022. Appier's robust growth in the second quarter was attributed to three key factors. Firstly, AI-powered solutions continue to deliver measurable returns for clients, prompting them to continue or expand their partnerships with Appier; secondly, Appier has achieved continued success in the US and EMEA given their large digital economies; and finally, substantial growth and expansion into other verticals in AsiaPacific has further deepened Appier's market presence. Appier's continuing improved sales productivity and increasing usage from existing customers drove its revenue to 4.4 billion yen, with a historic high growth rate of 56% year-on-year (YoY), and gross profit grew by 57% YoY. Sustaining the momentum from its first quarter, Appier's revenue from US and EMEA increased over 9 times YoY and represented 12% of its total revenue, a reflection of the company's expectations for robust demand and profitable growth in light of international expansion. Appier's AI technologies and product differentiations are crucial in defining and setting the pace of business growth. As more enterprises seek measurable profit returns, turning marketing spending into predictable returns solidified Appier clients' digital deployment in the industry race to adapt smarter and more effective solutions. The company's earnings before interest, taxes, depreciation and amortization (EBITDA) saw a 6 percentage points YoY improvement, while operating margin improved by 7 percentage points YoY. Robust demand from customers across different regions The growth in the number of customers adopting more than two Appier solutions, along with considerable new customer wins, demonstrates Appier's strong business resilience. Appier's recurring revenue currently constitutes over 95% of its total revenue, which drove Appier's annual recurring revenue (ARR) to 16.6 billion yen with a YoY growth rate of 53%. Emerging growth drivers across different regions will continue to fuel this momentum with more predictable business opportunities. Appier's AI technology plays an increasingly important role in privacy-focused and ROI-oriented markets. Appier's last twelve months (LTM) net revenue retention (NRR) grew to a historic high of 127.3%, with its number of customers increasing to 1,228 with a 30% YoY growth. Customer churn rate also decreased to 0.62%, the lowest in Appier history. New customers were mainly from the e-commerce and entertainment industries (34% and 25% of total new customers, respectively), driven by post-COVID demand for digital transformation and changing consumption patterns. Customers in Northeast Asia continued to account for the largest share of global revenue at 62%, followed by Greater China (19%), US and EMEA (12%) and Southeast Asia (7%). Appier's ongoing successful international expansion played an instrumental role in its growth this quarter. This remarkable growth can be attributed to the US and EMEA's position as the world's largest digital economies, along with increased product offerings and a bigger total addressable market (TAM). Further expansion to top-tier customers in other verticals also deepened Appier's market presence. Profitable growth in the second half of 2022 Appier revised up its guidance for the fiscal year to reflect its outperformance in the second quarter, forecasting 18.5 billion yen total revenue for the year, with YoY revenue growth rate further accelerated to 46% from 41%. A profitable second half of the year is expected given stronger revenue growth and better operating leverage. Appier's recession-proof offerings, higher business resilience and larger TAM are key drivers for this guidance revision for 2022. Guidance in gross profit has outpaced top-line growth to 9.6 billion yen with 54% YoY growth rate. Operating loss has been...