Medium-to-long term goal and growth strategy

Medium-to-long term management goal

GMO Pepabo, Inc. aims to invest in high-growth businesses such as "SUZURI," "minne," and "FREENANCE" by leveraging the stable and high profitability of stock-type businesses "Lollipop! Following the revision of its full-year forecasts for the fiscal year ending December 31, 2023, GMO Pepabo announced a revision of its medium- to long-term targets for the fiscal year ending December 31, 2026. Following the revision of its full-year forecasts for the fiscal year ending December 31, 2023, the company announced a review of its medium- and long-term targets for the fiscal year ending December 31, 2026.

We will aim for business growth in each service, identifying each as either a recurring business with services that mainly generate steady revenue, or a non-recurring business where revenue is mainly based on transaction size.

This chart visualizes the medium-to-long term growth image of flow-type business and stock-type business, respectively. We aim to achieve our consolidated operating income target of 1.57 billion yen for the fiscal year ending December 31, 2026, by growing flow-type businesses while maintaining stock-type businesses as the foundation. Please refer to the above text for the classification of each major business and service.

In recurring revenue businesses, to earn strong and stable revenue, we will aim to increase subscriptions by acquiring top-tier business from excellent customers and rolling out measures aimed at enterprise customers.

As stock-type business initiatives, Lollipop and Moodmain plan to acquire contracts through affiliated companies from 2023 and provide high-quality, business-oriented services and easy, versatile services from 2024. In addition, Color Me Shop plans to offer plans tailored to the expansion of existing stores from 2023, provide functions for stores with monthly sales of 2 million yen or more, and provide store support by EC advisors. Through these measures to expand existing services, ColorMe Shop aims to increase the spending per customer, while Lollipop and Mood Domain aim to increase the number of users of their high-level plans.

Business growth through expansion into new non-recurring business domains, gaining new authors and creators by strengthening categories, and expansion of GMV and amount of purchases of invoices

One of our flow-based business initiatives is to expand GMV growth of SUZURI and minne. From 2023, we plan to strengthen strong categories such as accessories and food, and from 2024, we plan to launch minne college, fully develop digital content, and promote cross-border EC. The second is to expand the amount of FREENANCE invoice purchases. From 2023, we plan to increase the number of repeat customers by expanding the types of industries we do business with and extending credit lines to our friends' companies, etc. From 2024, we plan to acquire more customers by strengthening our monthly and insurance plans.

Recent Business Developments

Latest Financial Results

For more information about the expansion of our business in the fiscal year ending December 31, 2022, 2023 please see the results presentation and update meeting materials.

Corporate value improvement and sustainability

ESG management and the SDGs (sustainability strategy)

GMO Pepabo has identified three material sustainability issues and contribute to ESG management and the SDGs through its business activities.

Consideration for the global environment and conservation of it through reduction of environmental impact
Support for people from all walks of life to increase human output
Strengthening governance for sound and transparent corporate management