Financial Data and Key Metrics Changes - Revenue for fiscal year 2025 grew 32% year over year to $98.4 million, driven by seven new game launches generating approximately $32.3 million [4][5] - Operating loss recorded at $1.1 million compared to operating income of $6.7 million in the previous year, attributed to strategic investments in AI and marketing [5][6] - Adjusted EBITDA decreased to $8 million from $12 million in fiscal year 2024, reflecting higher personnel and marketing investments [6][7] - Cash and cash equivalents stood at $12.2 million as of July 31, 2025, with no debt on the balance sheet [7] Business Line Data and Key Metrics Changes - Segment profit increased by $4.3 million year over year to $31.3 million, indicating improved operational efficiency [6] - The two top-performing titles were "Soul Ama: Spider's Soul World - Ruler of Labyrinth" contributing approximately $14.2 million and "A Rift of Rita: Rebellion's Soul" contributing about $9.3 million [4] Market Data and Key Metrics Changes - Growth was strong across all major regions, with significant international expansion efforts noted [5] - The company is focusing on enhancing advertisement spending in markets outside Japan, which remains the largest market [15] Company Strategy and Development Direction - The company plans to translate recent investments into growth and operating leverage, with a focus on AI systems and creative infrastructure [8] - Expansion into the U.S. market is a priority, with plans to open a new office in New York City to build local capabilities [9] - The company aims to maintain financial discipline while supporting global expansion and technology investments [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued top-line growth driven by an expanding global presence and upcoming releases [8] - The company anticipates increased operating expenses due to investments in talent and infrastructure, but remains committed to long-term value creation [8] Other Important Information - The company completed its initial public offering on Nasdaq, raising $12 million in gross proceeds [7] - The focus on AI-driven marketing systems has improved return on advertising spend from 99% in fiscal year 2024 to 116% in fiscal year 2025 [6] Q&A Session Summary Question: What is driving accelerated revenue growth in the second half? - The growth is attributed to the addition of new titles and increased advertisement spending in international markets [14][15] Question: What is the expected timeline for launching games in pre-registration and backlog? - Most games in pre-registration are expected to launch in the current fiscal year, with efforts to expedite the process [19][20] Question: What are the expectations for the North American market? - The company has high expectations for North America, anticipating it could lead the Japanese market in certain titles in the long run [23][24] Question: What sets CTW apart from its competitors? - CTW has strong relationships with IP holders, a frictionless HTML5 platform, and an AI-backed marketing tool that enhances monetization [26][27] Question: What initiatives are in place for growing the U.S. market? - The company is looking at both organic growth and potential M&A opportunities to enhance its presence in the U.S. [34] Question: Do you expect U.S. users to become higher spenders than those in Japan? - There is potential for North American users to become significant spenders, with expectations of more whale customers emerging in the region [35][36] Question: What capabilities are being developed in AI-driven user acquisition? - Investments are being made in optimizing advertisement management systems and enhancing AI tools for game development [38][39]
CTW Cayman-A(CTW) - 2025 Q4 - Earnings Call Transcript