Retty Inc. (7356) Stock Price

Retty operates a real-name gourmet platform that allows users to follow and view restaurant recommendations and information from people who have actually visited those establishments. The company accumulates preference data and behavioral logs from both posters and viewers to support reliable restaurant discovery.

The primary customers are restaurants and advertisers. Retty offers paid services to restaurants including listing management, customer management features, and online reservation services. Revenue is centered on monthly subscription contracts, combined with a hybrid model that includes pay-per-reservation fees, advertising placement fees, and fixed-rate data licensing to external companies, with emphasis on recurring subscription revenue.

The company's business is concentrated in a single segment: Retty platform operations. Services are divided into two main pillars: "Restaurant Support Services" and "Advertising Content." Restaurant Support drives customer acquisition through top placement, advertising, and reservation features with customer management capabilities. Advertising Content includes advertising solutions through the platform and a "Food Data Platform" that provides content solutions to other industries, leveraging accumulated data from approximately 800,000 restaurants and user reviews.

The company aims to achieve both growth and profitability centered on "Retty," a real-name gourmet platform, against the backdrop of significant domestic market opportunities. Japan's food service market reaches approximately 19.2476 trillion yen, with promotional spending estimated at roughly 3% or 580 billion yen, while the advertising content sector is projected at approximately 1.606 trillion yen. Net reservations recently recovered with year-over-year growth of approximately +22%, and the company achieved full-year profitability in the fiscal year ending September 2025. The company now aims to maintain and expand full-year profitability.

The company prioritizes "real-name reviews" and data accumulation as sources of differentiation, leveraging user preferences, behavioral logs, and approximately 800,000 store records to provide trustworthy store recommendations. On the revenue side, the company employs a hybrid model combining monthly subscription fees as the foundation with usage-based charges tied to reservations, advertising income, and fixed revenue from data provision. The company improves profitability through ARPU (monthly revenue per store) enhancement and gross margin expansion in advertising content. The company has also implemented thorough fixed cost reviews, compressing costs through office downsizing and outsourcing optimization, achieving approximately 68 million yen in fixed cost reductions year-over-year in the fiscal year ending September 2025.

The company plans to develop new markets through expanded advertising content and data provision business via its "Food Data Platform," broadening its business portfolio by offering data solutions to non-restaurant industries and launching adjacent services. Participating stores increased from 7,003 to 7,435 recently, and the company is strengthening direct sales and maintaining and reorganizing sales agencies to further expand this base. The company is improving operational efficiency through cost-of-acquisition reviews and product design improvements. The company positions net reservation growth as a key metric and aims to enhance repeat usage and customer referral effects through usability improvements.

The company is prioritizing technology strengthening, with developers currently comprising approximately 30% of staff. Going forward, the company will advance recruitment and development of talented engineers and invest in cutting-edge technologies including artificial intelligence. Specifically, the company is building big data analytics infrastructure to improve recommendation accuracy, optimize search functionality, and enhance reservation processes, targeting net reservation recovery and usage-based revenue expansion. Through these technology investments, the company aims to strengthen its competitive position as a platform that creates "optimal connections in food."