LY Corporation (YOJ0) AI Stock Analysis

Company Guidance

LY Corporation raised its full-year revenue forecast by 14.8% year-on-year from JPY 2.24 trillion to JPY 2.33 trillion, adjusted EBITDA forecast by 28.9% year-on-year from JPY 585 billion to JPY 640 billion, adjusted EPS from JPY 30 to JPY 35, and annual dividend from JPY 11 to JPY 12 per share, with overall return of 3.4%; Commerce revenue forecast is JPY 1.06 trillion, with adjusted EBITDA of 33.6% year-on-year, and strategic business adjusted EBITDA forecast is JPY 160 billion, 69.1% up year-on-year. The guidance revisions included media revenue of minus JPY 20 billion and positive JPY 5 billion for EBITDA, Commerce revenue of positive JPY 130 billion and positive JPY 16 billion for profit, and strategic EBITDA of positive JPY 31.5 billion; search ads are expected to be minus 6%, display ads are now expected to be down 5%, and for the second half search is expected to be a similar level as Q1. Longer term, high single digit was described as conservative, while for the next fiscal year at least double digit or higher than 10% or 10% or higher growth can be realized in a sustainable manner, and reuse transaction value is expected to continue with double-digit growth.